CoolBrands International Inc. reports financial results for the third quarter of fiscal 2008



    TORONTO, June 26 /CNW/ - CoolBrands International Inc. (TSX: COB)
("CoolBrands" or the "Company") today announced its financial results for the
third quarter of fiscal 2008 ended May 31, 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

    CoolBrands reported earnings in the third quarter of fiscal 2008 of
$170,000, or $0.00 per share, compared to a loss of $(3,219,000), or $(0.06)
per share in the third quarter of fiscal 2007. Earnings in the third quarter
of fiscal 2008 were comprised of income from continuing operations of
$657,000, or $0.01 per share, and a loss from discontinued operations of
$(487,000), or $(0.01) per share. This compared to a loss from continuing
operations of $(5,867,000), or $(0.10) per share and a gain from discontinued
operations of $2,648,000, or $0.05 per share in the third quarter of fiscal
2007.
    For the current year to date, the Company earned $1,684,000, or $0.03 per
share, compared to a loss of $(20,171,000), or $(0.36) per share in the prior
year. Earnings in the current year include a gain of $6,778,000 recognized in
the second quarter resulting from the elimination of certain liabilities of
the Americana Foods Limited Partnership following a settlement with the
bankruptcy trustee of Americana Foods. Offsetting this gain was a loss on
foreign exchange of $(3,038,000) 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 $57,835,000 at May 31, 2008,
compared to $61,219,000 at February 29, 2008. The decrease in cash and
short-term investments of $3,384,000 in the third quarter of fiscal 2008 was
primarily the result of a payment of $3,119,000 by the Company pursuant to a
guarantee of the debt of a related company and payments of other liabilities.
Working capital was $53,827,000 compared to $52,828,000 at February 29, 2008.
The increase in working capital resulted from the receipt of funds from an
escrow account set up from a business unit sale in the prior year and income
earned during the third quarter.

    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:

For further information: Carla Aedo, Telephone: (905) 479-9249

Organization Profile

COOLBRANDS INTERNATIONAL INC.

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