TORONTO, Dec. 18 /CNW/ - CoolBrands International Inc. (TSX: COB)
("CoolBrands" or the "Company") today announced its financial results for the
first quarter of fiscal 2009 ended November 30, 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.
Financial results
CoolBrands reported net income in the first quarter of fiscal 2009 of
$2,468,000, or $0.04 per fully diluted share, compared to a loss of
$(3,318,000), or $(0.06) in the first quarter of 2008. Income in the first
quarter of fiscal 2009 was comprised of income from continuing operations of
$2,716,000, or $0.05 per fully diluted share, and a loss from discontinued
operations of $(248,000), or $(0.00) per fully diluted share. This compared to
a loss from continuing operations of $(2,759,000), or $(0.05) per share and a
loss from discontinued operations of $(559,000), or $(0.01) per share in the
first quarter of fiscal 2008. Contributing to the income earned in the first
quarter of 2009 was a foreign exchange gain of $2,562,000 as a result of the
Company converting certain of its cash funds from U.S. dollars into Canadian
dollars and an increase in the value of its remaining U.S. funds, reflecting
the strengthening of the U.S. dollar during the first quarter period.
Cash and working capital
Cash and short-term investments were $63,258,000 at November 30, 2008,
compared to $61,172,000 at August 31, 2008. The increase in cash in the first
quarter of fiscal 2009 resulted primarily from a foreign exchange gain on the
Company's U.S. funds. Working capital was $63,619,000 at November 30, 2008
compared to a working capital balance of $61,050,000 at August 31, 2008.
Outlook
CoolBrands' management continue to receive and evaluate proposals to
invest the Company's cash assets in merger and acquisition opportunities.
Until a decision is made to pursue one or more investment alternatives, the
Company believes that the investment returns on its cash investments will
exceed the level of general and administrative costs expected to be incurred
during the year.
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 the remaining balances
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: Ken MacKenzie, Telephone: (905) 479-8762
