CALGARY, Nov. 2 /CNW/ - Canyon Creek Food Company LTD ("Canyon Creek") a
food processing company listed in the TSX Venture Exchange under the trading
symbol "CYF" announces Q1 of Fiscal 2008 results. Listed below are some of the
highlights of the quarter.
Canyon Creek sales declined by 14.9% in Q1 of fiscal 2008 vs. in Q1 of
fiscal 2007. This drop in sales can be primarily traced to the discontinuation
of lower margin foodservice customers which accounts for approximately
$630,000 in reduction of sales for this quarter or a 92% decline in the
foodservice business. Conversely, the retail business that Canyon Creek is
focusing on grew $456,000 or 78%.
The gross profit margins declined from 14.7% to 10.3%. This decline is
mainly attributed to a product quality issue during the quarter which cost the
company $35,000 or 3.3% in gross profit margin. The company also had lower
sales available to cover the fixed cost components of the cost of goods sold.
The net loss for Q1 in fiscal 2008 increased by approximately $125,000
compared to Q1 in fiscal 2007. The increase in losses can mainly be attributed
to a decline in sales and gross profit, an increase in interest paid as a
result in increases in shareholder demand loans and equipment loans, an
increase in investment in the quality assurance, and a timing difference on
yearly professional auditing fees.
Canyon Creek will continue to primarily focus on building its presence in
the retail sector. It is the company's belief that this sector will offer the
greatest return on capital invested. Canyon Creek's business strategy is to
increase sales by expanding distribution of both private label and branded
product in new and existing markets with innovative food concepts, organic
capability and stronger brand positioning.
This news release contains forward-looking statements which involve known
and unknown risks, delays and uncertainties not under Canyon Creek's control
which may cause actual results, performance or achievements of Canyon Creek to
be materially different from the results, performance or expectations implied
by these forward-looking statements.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy securities in any jurisdiction. The securities
offered have not and will not be registered under the United States Securities
Act of 1933, as amended, or any state securities laws and may not be offered
or sold in the United States absent registration or an applicable exemption
from the registration requirement.
The TSX Venture Exchange has neither approved nor disapproved of the
contents of the press release.
For further information:
For further information: Mr. Terry Alty, President and Director,
Telephone: 1-888-217-1246, Ext. 222