Financial results for the third quarter of fiscal 2004
Financial results for the third quarter of fiscal 2004
02/05/2004 0:00 UTC
Net earnings up 17.6%
(Montreal, February 5, 2004) – Saputo Inc. released today its financial results for the third quarter of fiscal 2004, which ended December 31, 2003.
- Net earnings of $50.0 million or $0.48 (basic) per share, up 17.6% from the same period last year. These results take into account a rationalization expense in our Canadian Dairy Products Sector and the appreciation of the Canadian dollar over last year. These two factors created a shortfall in net earnings of approximately $2.9 million.
- Consolidated revenues of $892.0 million, up 4.3% over the same period last year. Roughly 78% of the increase stems from our Canadian Dairy Products Sector. Increased prices and volumes, along with the introduction of new products, were the driving factors behind the increase. Also, the Canadian Dairy Products Sector revenues’ increase includes our newly acquired division, Molfino, with revenues of $9.9 million from the date of the acquisition, November 28, 2003, to the end of the quarter.
- EBITDA of $95.1 million, up 8.0% over the $88.0 million reported last year. This increase resulted primarily from the performance of our Cheese Division (USA), due to an increase in sales volumes and the average selling price per pound of cheese, which is US$0.33 higher this year.
- EBITDA for the Canadian Dairy Products Sector reached $53.5 million, an increase of 5.3% over the corresponding period of the previous year. This amount takes into account rationalization costs of $1.4 million.
- EBITDA for the US Dairy Products Sector closed at $34.1 million, an increase of 14.8% compared to the $29.7 million last year. Had it not been for the strong Canadian dollar, EBITDA would have been $6.3 million higher.
- EBITDA for the Bakery Division attained $7.4 million, compared to $7.5 million for last year.
- Cash generated before changes in non-cash operating working capital items amounted to $71.9 million, up $14.6 million over the $57.3 million reported for the same period last year.
- 100% of Molfino Hermanos S.A. (Molfino), operating in Argentina, was acquired on November 28, 2003 for $59.8 million. During this quarter, bank loans increased by $57.9 million, long-term debt repayments of $27.6 million were made and $12.4 million was paid in dividends.
- Interest-bearing debt-to-equity ratio of 0.45 as at December 31, 2003, in comparison with 0.53 as at March 31, 2003.
- Dividend of $0.12 per share, payable on March 5, 2004 to shareholders of record on February 20, 2004.
- The evaluation process we began last August to ensure that our Bakery Division had the necessary tools and focus to adequately develop and achieve new goals has been completed. We have come to the conclusion that the best way to maximize opportunities for our employees and our shareholders was to retain this division and to invest in its development and the redeployment of its brands.
For more information, we invite you to read the attached interim report for the quarter ended December 31, 2003, which forms an integral part of this press release.
Conference call
A conference call to discuss the third quarter of fiscal 2004 results will be held on Thursday, February 5, 2004 at 4:15 PM, Eastern time. To participate in the conference, dial (416) 682-1063 or 1 866 207-8482. To ensure your participation, please dial-in approximately five minutes before the call.
To listen to this call on the Web, please enter http://web1.to.fastvibe.com/CWS/sap/040205sap/staging.htm in your Web browser.
For those unable to participate, an instant replay will be available until midnight, Thursday February 12, 2004. To access the replay, dial 1 800 365-8354, passcode 145145. The conference call will also be archived on the Saputo Web site at www.saputo.com.
About Saputo
Every day, in the Company’s 46 plants and its distribution centres, Saputo’s 7,850 employees proudly manufacture, market and distribute a wide range of products that find their way daily on store shelves, in restaurants and in prepared meals. Active in the dairy and grocery product sectors, the Company markets its products under such brand names as Saputo, Stella, Frigo, Dragone, Armstrong, Caron, Cayer, Treasure Cave, Dairyland, Baxter, Nutrilait, La Paulina, Molfino and Vachon. A dynamic world-class company, Saputo Inc. is the largest dairy processor in Canada and one of the leading cheese manufacturers in North America and Argentina. Saputo Inc. is a public company and its shares are listed on the Toronto Stock Exchange under the symbol SAP. Visit www.saputo.com for further information.
- 30 -
1 Measurement of results not in accordance with generally accepted accounting principles
The Company assesses its financial performance based on its EBITDA, this being earnings before interest, income taxes, depreciation and amortization. EBITDA is not a measurement of performance as defined by generally accepted accounting principles in Canada, and consequently may not be comparable to similar measurements presented by other companies.
Information
Claude Pinard
Vice President, Communications
(514) 328-3381
Interim report for the third quarter of fiscal 2004
(Montreal, February 5, 2004) – Saputo Inc. released today its financial results for the third quarter of fiscal 2004, which ended December 31, 2003.
- Net earnings of $50.0 million or $0.48 (basic) per share, up 17.6% from the same period last year. These results take into account a rationalization expense in our Canadian Dairy Products Sector and the appreciation of the Canadian dollar over last year. These two factors created a shortfall in net earnings of approximately $2.9 million.
- Consolidated revenues of $892.0 million, up 4.3% over the same period last year. Roughly 78% of the increase stems from our Canadian Dairy Products Sector. Increased prices and volumes, along with the introduction of new products, were the driving factors behind the increase. Also, the Canadian Dairy Products Sector revenues’ increase includes our newly acquired division, Molfino, with revenues of $9.9 million from the date of the acquisition, November 28, 2003, to the end of the quarter.
- EBITDA of $95.1 million, up 8.0% over the $88.0 million reported last year. This increase resulted primarily from the performance of our Cheese Division (USA), due to an increase in sales volumes and the average selling price per pound of cheese, which is US$0.33 higher this year.
- EBITDA for the Canadian Dairy Products Sector reached $53.5 million, an increase of 5.3% over the corresponding period of the previous year. This amount takes into account rationalization costs of $1.4 million.
- EBITDA for the US Dairy Products Sector closed at $34.1 million, an increase of 14.8% compared to the $29.7 million last year. Had it not been for the strong Canadian dollar, EBITDA would have been $6.3 million higher.
- EBITDA for the Bakery Division attained $7.4 million, compared to $7.5 million for last year.
- Cash generated before changes in non-cash operating working capital items amounted to $71.9 million, up $14.6 million over the $57.3 million reported for the same period last year.
- 100% of Molfino Hermanos S.A. (Molfino), operating in Argentina, was acquired on November 28, 2003 for $59.8 million. During this quarter, bank loans increased by $57.9 million, long-term debt repayments of $27.6 million were made and $12.4 million was paid in dividends.
- Interest-bearing debt-to-equity ratio of 0.45 as at December 31, 2003, in comparison with 0.53 as at March 31, 2003.
- Dividend of $0.12 per share, payable on March 5, 2004 to shareholders of record on February 20, 2004.
- The evaluation process we began last August to ensure that our Bakery Division had the necessary tools and focus to adequately develop and achieve new goals has been completed. We have come to the conclusion that the best way to maximize opportunities for our employees and our shareholders was to retain this division and to invest in its development and the redeployment of its brands.
For more information, we invite you to read the attached interim report for the quarter ended December 31, 2003, which forms an integral part of this press release.
Conference call
A conference call to discuss the third quarter of fiscal 2004 results will be held on Thursday, February 5, 2004 at 4:15 PM, Eastern time. To participate in the conference, dial (416) 682-1063 or 1 866 207-8482. To ensure your participation, please dial-in approximately five minutes before the call.
To listen to this call on the Web, please enter http://web1.to.fastvibe.com/CWS/sap/040205sap/staging.htm in your Web browser.
For those unable to participate, an instant replay will be available until midnight, Thursday February 12, 2004. To access the replay, dial 1 800 365-8354, passcode 145145. The conference call will also be archived on the Saputo Web site at www.saputo.com.
About Saputo
Every day, in the Company’s 46 plants and its distribution centres, Saputo’s 7,850 employees proudly manufacture, market and distribute a wide range of products that find their way daily on store shelves, in restaurants and in prepared meals. Active in the dairy and grocery product sectors, the Company markets its products under such brand names as Saputo, Stella, Frigo, Dragone, Armstrong, Caron, Cayer, Treasure Cave, Dairyland, Baxter, Nutrilait, La Paulina, Molfino and Vachon. A dynamic world-class company, Saputo Inc. is the largest dairy processor in Canada and one of the leading cheese manufacturers in North America and Argentina. Saputo Inc. is a public company and its shares are listed on the Toronto Stock Exchange under the symbol SAP. Visit www.saputo.com for further information.
- 30 -
1 Measurement of results not in accordance with generally accepted accounting principles
The Company assesses its financial performance based on its EBITDA, this being earnings before interest, income taxes, depreciation and amortization. EBITDA is not a measurement of performance as defined by generally accepted accounting principles in Canada, and consequently may not be comparable to similar measurements presented by other companies.
Information
Claude Pinard
Vice President, Communications
(514) 328-3381
Interim report for the third quarter of fiscal 2004
Saputo Group Inc.
Camillo Lisio, Executive Vice-President
(514) 328-3314