Financial Results for the Third Quarter of Fiscal 2005
Financial Results for the Third Quarter of Fiscal 2005
02/03/2005 0:00 UTC
Net Earnings Up 16.6% for the Quarter
Net Earnings Up 11.7% Since the Beginning of the Fiscal Year
(Montréal, February 3, 2005) – Saputo Inc. released today its financial results for the third quarter of fiscal 2005, which ended December 31, 2004.
- Net earnings totalled $58.3 million, up 16.6% compared to the same period last year. This increase is mainly due to our Canadian operations which showed positive volume growth. During the quarter, the Company benefited from a one-time tax reduction to adjust future tax balances, due to a reduction in US tax rates, thus increasing net earnings by $3.5 million. Notwithstanding the tax adjustment, net earnings increased by 9.6% over last year.
- Consolidated revenues increased by 5.6% to $942.2 million compared to $892.0 million posted one year earlier. Increased sales volumes in our Canadian and Other Dairy Products Sector were the driving factors behind the increase.
- Consolidated EBITDA(1) increased by 1.5% or $1.4 million to $96.5 million, compared to the same period one year earlier. The increase is attributed mostly to our Canadian and Other Dairy Products Sector, as a result of increased volumes from our Canadian operations and the positive contribution from our activities in Argentina.
- EBITDA for the Canadian and Other Dairy Products Sector closed at $62.4 million, an increase of $8.9 million or 16.6% over the $53.5 million for the corresponding period last year.
- EBITDA for the US Dairy Products Sector totalled $27.9 million, resulting in a $6.2 million or 18.2% decrease compared to $34.1 million for the same period last year. This quarter was affected by a less favourable relationship between the average selling price per pound of cheese and the cost of milk as raw material, as well as by the appreciation of the Canadian dollar.
- EBITDA for the Grocery Products Sector stood at $6.1 million, a decrease of $1.3 million compared to the same quarter last year.
- Cash generated before changes in non-cash operating working capital items amounted to $73.6 million compared to $71.9 million for the same period last year.
- Over the course of the quarter, we reimbursed $19.4 million in bank loans, issued shares for a cash consideration of $1.7 million as part of the Stock Option Plan, and paid out $15.7 million in dividends.
For more information on the results of the third quarter of fiscal 2005, we invite you to read the attached interim report for the quarter ended December 31, 2004, which forms an integral part of this press release.
(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.
Dividends
The Board of Directors declared a dividend of $0.15 per share, payable on March 4, 2005 to shareholders of record on February 18, 2005. This dividend relates to the quarter ended December 31, 2004.
Conference Call
A conference call to discuss the third quarter of fiscal 2005 financial results will be held on Thursday, February 3, 2005 at 2:15 PM, Eastern time. To participate in the conference dial 1 800 525-6384. To ensure your participation, please dial in approximately five minutes before the call.
To listen to this call on the web, please enter http://events.onlinebroadcasting.com/saputo/020305/index.php in your web browser.
For those unable to participate, an instant replay will be available until midnight, Thursday, February 10, 2005. To access the replay dial 1 800 395-0363, passcode 3389595. The conference call will also be archived on the Saputo web site at www.saputo.com.
About Saputo
Since 1954, Saputo has maintained its family flavour and the vitality of a team whose passion is equalled only by its know-how… and its taste for good food! Saputo employs 7,500 individuals in its 42 plants and its distribution centres. Well established in the dairy and grocery products sectors, its products are offered under the brand names of Saputo, Stella, Frigo, Dragone, Armstrong, Caron, Cayer, Treasure Cave, Dairyland, Baxter, Nutrilait, La Paulina, Ricrem and Vachon. Saputo is the largest dairy processor in Canada, one of the largest cheese producers in North America and the third largest dairy processor in Argentina. Saputo Inc. is a public company whose shares are listed on the Toronto Stock Exchange under the symbol SAP. Visit our website at www.saputo.com.
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Information
Claude Pinard
Vice President, Communications
(514) 328-3381
Interim Report
Net Earnings Up 11.7% Since the Beginning of the Fiscal Year
(Montréal, February 3, 2005) – Saputo Inc. released today its financial results for the third quarter of fiscal 2005, which ended December 31, 2004.
- Net earnings totalled $58.3 million, up 16.6% compared to the same period last year. This increase is mainly due to our Canadian operations which showed positive volume growth. During the quarter, the Company benefited from a one-time tax reduction to adjust future tax balances, due to a reduction in US tax rates, thus increasing net earnings by $3.5 million. Notwithstanding the tax adjustment, net earnings increased by 9.6% over last year.
- Consolidated revenues increased by 5.6% to $942.2 million compared to $892.0 million posted one year earlier. Increased sales volumes in our Canadian and Other Dairy Products Sector were the driving factors behind the increase.
- Consolidated EBITDA(1) increased by 1.5% or $1.4 million to $96.5 million, compared to the same period one year earlier. The increase is attributed mostly to our Canadian and Other Dairy Products Sector, as a result of increased volumes from our Canadian operations and the positive contribution from our activities in Argentina.
- EBITDA for the Canadian and Other Dairy Products Sector closed at $62.4 million, an increase of $8.9 million or 16.6% over the $53.5 million for the corresponding period last year.
- EBITDA for the US Dairy Products Sector totalled $27.9 million, resulting in a $6.2 million or 18.2% decrease compared to $34.1 million for the same period last year. This quarter was affected by a less favourable relationship between the average selling price per pound of cheese and the cost of milk as raw material, as well as by the appreciation of the Canadian dollar.
- EBITDA for the Grocery Products Sector stood at $6.1 million, a decrease of $1.3 million compared to the same quarter last year.
- Cash generated before changes in non-cash operating working capital items amounted to $73.6 million compared to $71.9 million for the same period last year.
- Over the course of the quarter, we reimbursed $19.4 million in bank loans, issued shares for a cash consideration of $1.7 million as part of the Stock Option Plan, and paid out $15.7 million in dividends.
For more information on the results of the third quarter of fiscal 2005, we invite you to read the attached interim report for the quarter ended December 31, 2004, which forms an integral part of this press release.
(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.
Dividends
The Board of Directors declared a dividend of $0.15 per share, payable on March 4, 2005 to shareholders of record on February 18, 2005. This dividend relates to the quarter ended December 31, 2004.
Conference Call
A conference call to discuss the third quarter of fiscal 2005 financial results will be held on Thursday, February 3, 2005 at 2:15 PM, Eastern time. To participate in the conference dial 1 800 525-6384. To ensure your participation, please dial in approximately five minutes before the call.
To listen to this call on the web, please enter http://events.onlinebroadcasting.com/saputo/020305/index.php in your web browser.
For those unable to participate, an instant replay will be available until midnight, Thursday, February 10, 2005. To access the replay dial 1 800 395-0363, passcode 3389595. The conference call will also be archived on the Saputo web site at www.saputo.com.
About Saputo
Since 1954, Saputo has maintained its family flavour and the vitality of a team whose passion is equalled only by its know-how… and its taste for good food! Saputo employs 7,500 individuals in its 42 plants and its distribution centres. Well established in the dairy and grocery products sectors, its products are offered under the brand names of Saputo, Stella, Frigo, Dragone, Armstrong, Caron, Cayer, Treasure Cave, Dairyland, Baxter, Nutrilait, La Paulina, Ricrem and Vachon. Saputo is the largest dairy processor in Canada, one of the largest cheese producers in North America and the third largest dairy processor in Argentina. Saputo Inc. is a public company whose shares are listed on the Toronto Stock Exchange under the symbol SAP. Visit our website at www.saputo.com.
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Information
Claude Pinard
Vice President, Communications
(514) 328-3381
Interim Report
Pour plus d'information:
Camillo Lisio
vice-président exécutif
(514) 328-3314
