TORONTO, April 3 /CNW/ - CoolBrands International Inc. (TSX: COB)
("CoolBrands" or the "Company") today announced its financial results for the
second quarter of fiscal 2008 ended February 29, 2008. The Company's
consolidated financial statements and management's discussion and analysis of
financial results can be found on the Sedar website at www.sedar.com.
Operating results (amounts expressed in Canadian dollars)
CoolBrands reported earnings in the second quarter of fiscal 2008 of
$4,832,000, or $0.09 per share, compared to a loss of $(11,529,000), or
$(0.21) per share in the second quarter of fiscal 2007. Earnings in the second
quarter of fiscal 2008 were comprised of a loss from continuing operations of
$(307,000), or $0.00 per share, and income from discontinued operations of
$5,139,000, or $0.09 per share. This compared to a loss from continuing
operations of $(410,000), or $(0.01) per share and a loss from discontinued
operations of $(11,119,000), or $(0.20) per share in the second quarter of
fiscal 2007.
As announced by the Company on March 6, 2008, a resolution between the
bankruptcy trustee of the Americana Foods Limited Partnership, a joint venture
of which CoolBrands indirectly owned 50.1%, and the secured creditor of
Americana Foods was approved by court order. The order confirmed the amount to
be paid by the trustee to the secured creditor. As a result, the Company was
able to determine the amount it is required to pay to the secured creditor
pursuant to its loan guarantee. The Company was able to eliminate certain
obligations relating to Americana Foods that were included in its financial
statements, resulting in a gain of $6,778,000 being recognized in the second
quarter of fiscal 2008.
For the current year to date, the Company earned $1,514,000, or $0.03 per
share, compared to a loss of $(16,952,000), or $(0.30) per share in the prior
year. Earnings in the current year include a loss on foreign exchange of
$(3,402,000) resulting from the Company holding a majority of its cash and
short-term investments in U.S. dollars during a period where the Canadian
dollar has appreciated against the U.S. dollar.
Cash and working capital
Cash and short-term investments were $61,219,000 at February 29, 2008,
compared to $61,508,000 at November 30, 2007. The decrease in cash and
short-term investments of $289,000 in the second quarter of fiscal 2008
resulted from a net foreign exchange loss of $407,000, offset by an excess of
interest income over operating expenses. Working capital was $52,828,000
compared to $47,914,000 at November 30, 2007. The increase in working capital
resulted from the elimination of the net liabilities associated with the
Company's investment in Americana.
Forward Looking Statements
The information in this document contains certain forward-looking
statements with respect to CoolBrands International Inc., its subsidiaries and
affiliates. These statements are often, but not always made through the use of
words or phrases such as "expect", "should continue", "continue", "believe",
"anticipate", "estimate", "contemplate", "target", "plan", "budget", "may",
"will", "schedule" and "intend" or similar formulations. By their nature,
these forward-looking statements are necessarily based upon a number of
estimates and assumptions that, while considered reasonable by management, are
inherently subject to significant, known and unknown, business, economic,
competitive and other risks, uncertainties and other factors affecting
CoolBrands specifically or its industry generally that could cause actual
performance, achievements and financial results to differ materially from
those contemplated by the forward-looking statements. These risks and
uncertainties include the Company's ability to recover its assets relating to
the sale of its businesses; its ability to sell the remaining assets or
rebuild the business; the ability of CoolBrands to effectively manage the
risks inherent with mergers and acquisitions; the ability of the Company to
minimize the negative impact of any litigation; the effect on foreign
operations of political, economic and regulatory risks; currency risk
exposure; the ability to recruit and retain qualified employees; and other
risks described from time to time in publicly filed disclosure documents of
CoolBrands and its subsidiaries and affiliates. In view of these uncertainties
we caution readers not to place undue reliance on these forward-looking
statements. CoolBrands disclaims any intention or obligation to update or
revise any statements made herein, whether as a result of new information,
future events or otherwise.
%SEDAR: 00003887E
For further information: Carla Aedo, Telephone: (905) 479-9249
