Financial Results for the Third Quarter of Fiscal 2008, Ended December 31, 2007
Financial Results for the Third Quarter of Fiscal 2008, Ended December 31, 2007
02/06/2008 0:00 UTC
Net earnings at $82.0 million, up 28.0% for the quarter
Net earnings at $213.0 million, up 21.3% since the beginning of the fiscal year
(Montréal, February 6, 2008) – Saputo Inc. released today its financial results for the third quarter of fiscal 2008, which ended December 31, 2007.
- Net earnings for the quarter totalled $82.0 million ($0.40 basic per share), an increase of $17.9 million compared to $64.1 million ($0.31 basic per share) for the same quarter last fiscal year. Included in the results of the current quarter is a one-time tax reduction to adjust future tax balances of approximately $6.5 million due to a reduction in Canadian federal tax rates. Excluding this adjustment, net earnings would have been $75.5 million, an increase of $11.4 million or 17.8% in comparison to the same quarter last fiscal year.
- Consolidated revenues for the quarter ended December 31, 2007 amounted to $1.277 billion, an increase of $260.0 million or 25.6% over the $1.017 billion for the corresponding quarter last fiscal year. This increase is due mainly to our US Dairy Products Sector, whose revenues increased by approximately $219 million. The acquisition of the activities of Land O’Lakes West Coast industrial cheese business in the United States (Land O’Lakes West Coast Acquisition) and a higher average block market1 per pound of cheese explain the revenue increase. Revenues from our Canadian and Other Dairy Products Sector increased by approximately $43 million. Higher selling prices in accordance with the increase in the cost of milk as raw material, increased sales volume from our Canadian fluid milk activities and the inclusion of our United Kingdom (UK) operations, acquired on March 23, 2007, are the main factors explaining the revenue increase. Revenues from our Grocery Products Sector decreased by approximately $1 million in comparison to the same quarter last fiscal year. During the third quarter of fiscal 2008, the appreciation of the Canadian dollar eroded approximately $56 million in the Company’s revenues compared to the same quarter last fiscal year.
- Consolidated EBITDA2 totalled $137.0 million, an increase of $22.0 million or 19.1% in comparison to $115.0 million for the same quarter last fiscal year. This increase is due to higher EBITDA in the US Dairy Products Sector of approximately $13 million and an increase in EBITDA of approximately $11 million in the Canadian and Other Dairy Products Sector. The EBITDA of our Grocery Products Sector decreased by approximately $2 million in comparison to the same quarter last fiscal year.
- EBITDA for the Canadian and Other Dairy Products Sector amounted to $95.6 million, an increase of 13.1% in comparison to the same quarter last fiscal year. This increase is due to benefits derived from rationalization activities undertaken in our Canadian operations, sales volume increase in our Canadian fluid milk activities and benefits derived from capital investments made in the previous years in our Argentinean operations.
- EBITDA for the US Dairy Products Sector totalled $37.2 million, an increase of 55.2% compared to the same period last fiscal year. This increase is due to the contribution of the Land O’Lakes West Coast Acquisition, a more favourable relationship between the average block market per pound of cheese and the cost of milk as raw material.
- EBITDA for the Grocery Products Sector amounted to $4.2 million, a $2.4 million decrease compared to the corresponding quarter last fiscal year. The decrease is attributed to higher raw material and other costs, and lower sales volume.
- Cash generated by operating activities amounted to $109.6 million, compared to $85.6 million for the same period last fiscal year.
- In the third quarter, the Company issued shares for a cash consideration of $2.2 million, as part of the Stock Option Plan, repaid $73.9 million of bank loans and paid $24.7 million in dividends.
For more information on the results of the third quarter of fiscal 2008, please read the attached interim report for the quarter ended December 31, 2007, which forms an integral part of this press release.
Dividends
The Board of Directors declared on February 6, 2008, a quarterly dividend of $0.12 per share payable on March 21, 2008 to common shareholders of record on March 10, 2008, as per its fiscal 2008 dividend policy.
Conference Call
A conference call to discuss the third quarter results of fiscal 2008 will be held on Wednesday, February 6, 2008, at 10:30 AM, Eastern time. To participate in the conference call, dial 1.888.241.0326, ID number 31122555. 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/020608/index.php in your web browser.
For those unable to participate, an instant replay will be available until midnight, Tuesday, February 13, 2008. To access the replay, dial 1.800.695.2814, ID number 31122555. A replay of the conference call will also be available on the Company’s web site at www.saputo.com.
(1)“Average block market” is the average daily price of a 40 pound block of Cheddar traded on the Chicago Mercantile Exchange (CME), used as the base price for the cheese.
(2) 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.
About Saputo
Saputo, a whole world to discover. With its distinctive array of products and its commitment to growth, Saputo continues to explore and seize new opportunities while maintaining the best of tradition. Through product innovations, global expansion and unwavering employee dedication, Saputo produces, markets and distributes products of the highest quality. Saputo is one of the top twenty dairy processors in the world, the largest dairy processor in Canada, among the top five cheese producers in the United States, the third largest dairy processor in Argentina and the largest snack-cake manufacturer in Canada. Success stems from the passion and expertise of the 8,900 men and women who work in its numerous locations worldwide. Well-known brands such as Saputo, Alexis de Portneuf, Armstrong, Baxter, Dairyland, Danscorella, De Lucia, Dragone, DuVillage de Warwick, Frigo, Kingsey, La Paulina, Nutrilait, Princesse, Ricrem, Sir Laurier d’Arthabaska, Stella, Treasure Cave, HOP&GO!, Rondeau and Vachon have earned the trust of consumers in over thirty countries. Saputo Inc. is a public company whose shares are traded on the Toronto Stock Exchange under the symbol SAP.
- 30 -
Information
Karine Vachon
Advisor, Communications
514.328.3377
REPORT
Net earnings at $213.0 million, up 21.3% since the beginning of the fiscal year
(Montréal, February 6, 2008) – Saputo Inc. released today its financial results for the third quarter of fiscal 2008, which ended December 31, 2007.
- Net earnings for the quarter totalled $82.0 million ($0.40 basic per share), an increase of $17.9 million compared to $64.1 million ($0.31 basic per share) for the same quarter last fiscal year. Included in the results of the current quarter is a one-time tax reduction to adjust future tax balances of approximately $6.5 million due to a reduction in Canadian federal tax rates. Excluding this adjustment, net earnings would have been $75.5 million, an increase of $11.4 million or 17.8% in comparison to the same quarter last fiscal year.
- Consolidated revenues for the quarter ended December 31, 2007 amounted to $1.277 billion, an increase of $260.0 million or 25.6% over the $1.017 billion for the corresponding quarter last fiscal year. This increase is due mainly to our US Dairy Products Sector, whose revenues increased by approximately $219 million. The acquisition of the activities of Land O’Lakes West Coast industrial cheese business in the United States (Land O’Lakes West Coast Acquisition) and a higher average block market1 per pound of cheese explain the revenue increase. Revenues from our Canadian and Other Dairy Products Sector increased by approximately $43 million. Higher selling prices in accordance with the increase in the cost of milk as raw material, increased sales volume from our Canadian fluid milk activities and the inclusion of our United Kingdom (UK) operations, acquired on March 23, 2007, are the main factors explaining the revenue increase. Revenues from our Grocery Products Sector decreased by approximately $1 million in comparison to the same quarter last fiscal year. During the third quarter of fiscal 2008, the appreciation of the Canadian dollar eroded approximately $56 million in the Company’s revenues compared to the same quarter last fiscal year.
- Consolidated EBITDA2 totalled $137.0 million, an increase of $22.0 million or 19.1% in comparison to $115.0 million for the same quarter last fiscal year. This increase is due to higher EBITDA in the US Dairy Products Sector of approximately $13 million and an increase in EBITDA of approximately $11 million in the Canadian and Other Dairy Products Sector. The EBITDA of our Grocery Products Sector decreased by approximately $2 million in comparison to the same quarter last fiscal year.
- EBITDA for the Canadian and Other Dairy Products Sector amounted to $95.6 million, an increase of 13.1% in comparison to the same quarter last fiscal year. This increase is due to benefits derived from rationalization activities undertaken in our Canadian operations, sales volume increase in our Canadian fluid milk activities and benefits derived from capital investments made in the previous years in our Argentinean operations.
- EBITDA for the US Dairy Products Sector totalled $37.2 million, an increase of 55.2% compared to the same period last fiscal year. This increase is due to the contribution of the Land O’Lakes West Coast Acquisition, a more favourable relationship between the average block market per pound of cheese and the cost of milk as raw material.
- EBITDA for the Grocery Products Sector amounted to $4.2 million, a $2.4 million decrease compared to the corresponding quarter last fiscal year. The decrease is attributed to higher raw material and other costs, and lower sales volume.
- Cash generated by operating activities amounted to $109.6 million, compared to $85.6 million for the same period last fiscal year.
- In the third quarter, the Company issued shares for a cash consideration of $2.2 million, as part of the Stock Option Plan, repaid $73.9 million of bank loans and paid $24.7 million in dividends.
For more information on the results of the third quarter of fiscal 2008, please read the attached interim report for the quarter ended December 31, 2007, which forms an integral part of this press release.
Dividends
The Board of Directors declared on February 6, 2008, a quarterly dividend of $0.12 per share payable on March 21, 2008 to common shareholders of record on March 10, 2008, as per its fiscal 2008 dividend policy.
Conference Call
A conference call to discuss the third quarter results of fiscal 2008 will be held on Wednesday, February 6, 2008, at 10:30 AM, Eastern time. To participate in the conference call, dial 1.888.241.0326, ID number 31122555. 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/020608/index.php in your web browser.
For those unable to participate, an instant replay will be available until midnight, Tuesday, February 13, 2008. To access the replay, dial 1.800.695.2814, ID number 31122555. A replay of the conference call will also be available on the Company’s web site at www.saputo.com.
(1)“Average block market” is the average daily price of a 40 pound block of Cheddar traded on the Chicago Mercantile Exchange (CME), used as the base price for the cheese.
(2) 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.
About Saputo
Saputo, a whole world to discover. With its distinctive array of products and its commitment to growth, Saputo continues to explore and seize new opportunities while maintaining the best of tradition. Through product innovations, global expansion and unwavering employee dedication, Saputo produces, markets and distributes products of the highest quality. Saputo is one of the top twenty dairy processors in the world, the largest dairy processor in Canada, among the top five cheese producers in the United States, the third largest dairy processor in Argentina and the largest snack-cake manufacturer in Canada. Success stems from the passion and expertise of the 8,900 men and women who work in its numerous locations worldwide. Well-known brands such as Saputo, Alexis de Portneuf, Armstrong, Baxter, Dairyland, Danscorella, De Lucia, Dragone, DuVillage de Warwick, Frigo, Kingsey, La Paulina, Nutrilait, Princesse, Ricrem, Sir Laurier d’Arthabaska, Stella, Treasure Cave, HOP&GO!, Rondeau and Vachon have earned the trust of consumers in over thirty countries. Saputo Inc. is a public company whose shares are traded on the Toronto Stock Exchange under the symbol SAP.
- 30 -
Information
Karine Vachon
Advisor, Communications
514.328.3377
REPORT
Saputo Group Inc.
Camillo Lisio, Executive Vice-President
(514) 328-3314
