Lassonde Industries Inc. announces its Q2 2010 results

ROUGEMONT, QC, Aug. 6 /CNW Telbec/ - Lassonde Industries Inc. (TSX symbol: LAS.A) today announced that its 2010 net earnings reached $7.3 million, up 1.4% from the second quarter of 2009. The Company's net sales experienced a slight 2.8% decline in the second quarter of 2010 compared to the same quarter of 2009. "Despite a more challenging competitive environment, we are satisfied with the second quarter results" said Pierre-Paul Lassonde, Chairman of the Board and Chief Executive Officer of Lassonde Industries Inc.

    
    -------------------------------------------------------------------------
    Financial highlights                              Second quarters ended
    (in thousands of dollars except basic
     and diluted earnings per share)
    -------------------------------------------------------------------------
                                                 July 3, 2010  June 27, 2009
                                                   (unaudited)    (unaudited)
    -------------------------------------------------------------------------
    Net sales                                        $133,251       $137,145
    -------------------------------------------------------------------------
    Operating income                                   11,339         11,223
    -------------------------------------------------------------------------
    Earnings before income taxes                       10,426         10,188
    -------------------------------------------------------------------------
    Net earnings                                        7,349          7,248
    -------------------------------------------------------------------------
    Basic and diluted earnings per share                $1.12          $1.09
    -------------------------------------------------------------------------

    Note: These are financial highlights only. Management's Discussion and
    Analysis, the unaudited consolidated financial statements of Lassonde
    Industries Inc. and the notes thereto for the quarter ended July 3, 2010
    will be available on the SEDAR website at www.sedar.com and on the
    website of Lassonde Industries Inc.


    Financial results
    -----------------
    

The Company's net sales stood at $133.3 million in the second quarter of 2010, down $3.8 million from net sales of $137.1 million reported in the second quarter of 2009. This decrease in net sales was mainly attributable to higher trade spending and to unfavourable exchange rates that affected sales denominated in U.S. dollars. The total amount of net sales in the first six months of fiscal 2010 was $259.0 million, up 0.7% from net sales of $257.2 million for the first six months of fiscal 2009.

Operating income grew from $11.2 million for the second quarter of 2009 to $11.3 million for the second quarter of 2010, up $0.1 million. The increase in operating income was mostly attributable to lower selling and marketing expenses partly offset by the unfavourable impact of the lower net sales. Operating income for the first six months of 2010 was $20.9 million, up 2.3% from $20.4 million posted at the end of the first six months of 2009.

The Company's financial expenses went from $1.0 million in the second quarter of 2009 to $0.9 million in 2010, down $0.1 million. The reduction in financial expenses is explained by a favourable movement of $0.4 million in exchange gains and losses partly offset by an additional interest expense of $0.3 million resulting from higher long-term debt. Financial expenses for the first six months of 2010 grew to $2.4 million, as compared to $1.8 million for the first six months of fiscal 2009.

Earnings before income taxes for the second quarter of 2010 were $10.4 million, up 2.3% from earnings before income taxes of $10.2 million in the second quarter of 2009. Earnings before income taxes for the first six months of 2010 stood at $18.5 million, down 0.7% from the $18.6 million reported for the first six months of 2009.

Income taxes for the second quarter of 2010 were $3.1 million, up $0.2 million from income taxes of $2.9 million reported for the same quarter of 2009. Income taxes for the first six months of 2010 stood at $5.5 million, down $0.1 million from an amount of $5.6 million posted for the first six months of 2009.

Net earnings for the second quarter of 2010 were $7.3 million, up $0.1 million from net earnings of $7.2 million recorded at the end of the second quarter of 2009. Net earnings for the first six months of 2010 were $13.1 million, unchanged from the $13.1 million reported for the first six months of fiscal 2009.

Basic and diluted earnings per share stood at $1.12 for the second quarter of 2010 and at $1.98 for the first six months of 2010, compared to $1.09 and $1.97, respectively, for the same periods of 2009.

Cash flows from operating activities generated $27.2 million in the second quarter of 2010 compared to $16.8 million in the same quarter of 2009. Financing and investing activities used, respectively, $2.3 million and $3.3 million in the second quarter of 2010, while these activities had used $7.7 million and $6.5 million, respectively, during the same quarter of the previous year. Cash and cash equivalents stood at $55.2 million at the end of the second quarter of 2010 compared to a bank overdraft of $1.9 million at the end of the second quarter of 2009.

    
    Outlook
    -------
    

The Company has noted strong competitive pressures in all of its Canadian markets mostly reflected in higher trade spending. Lassonde Industries Inc. relies on its innovative products to fuel its growth and stand out from its competitors.

As for sourcing, prices of certain concentrates are at levels higher than those in 2009. The Company is adjusting its selling prices based on these changes, but the impact of such adjustments on the Company's sales volumes is difficult to determine.

Despite a more challenging competitive environment, Lassonde Industries Inc. plans to maintain its business model and management style over the final six months of 2010. Barring any major external factors or events, the Company remains confident in its ability to maintain 2010 net sales at a level slightly higher than that experienced in fiscal 2009.

    
    About Lassonde Industries Inc.
    ------------------------------
    

Lassonde Industries Inc. develops, manufactures and markets an innovative and distinctive line of fruit and vegetable juices and drinks as well as certain specialty food products such as fondue broths and fondue sauces, beans in sauce, soups, sauces and gravies, canned corn-on-the-cob, bruschetta toppings, tapenades, pestos and pasta sauces. Lassonde Industries Inc. imports selected wines from several countries of origin for packaging and marketing purposes. It also imports and markets olive oil. These products are marketed in various packagings and under several trademarks. Approximately 1,300 employees are currently employed by Lassonde Industries Inc. and contribute to its growth.

SEDAR registration number: 00002099

This press release contains forward-looking statements that are based on certain assumptions. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Additional factors are discussed in materials filed from time to time with the securities regulatory authorities in Canada. Lassonde Industries Inc. disclaims any intention or obligation to update or revise any forward-looking statements.

%SEDAR: 00002099EF

SOURCE Lassonde Industries Inc.

For further information: For further information: Guy Blanchette, Vice-President and Chief Financial Officer, Lassonde Industries Inc., 450-469-4926, extension 782


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