CoolBrands International Inc. reports financial results for the fourth quarter and year ended August 31, 2008

    TORONTO, Oct. 29 /CNW/ - CoolBrands International Inc. (TSX: COB)
("CoolBrands" or the "Company") today announced its financial results for the
fiscal year ended August 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

    Financial results

    CoolBrands reported net income in the fourth quarter of fiscal 2008 of
$3,712,000, or $0.06 per fully diluted share, compared to a loss of
$(1,142,000), or $(0.02) in the fourth quarter of 2007. Income in the fourth
quarter of fiscal 2008 was comprised of income from continuing operations of
$3,402,000, or $0.06 per fully diluted share, and income from discontinued
operations of $310,000, or $0.00 per fully diluted share. This compared to
income from continuing operations of $1,511,000, or $0.03 per share and a loss
from discontinued operations of $(2,671,000), or $(0.05) per share in the
fourth quarter of fiscal 2007. Contributing to the income earned in the fourth
quarter of 2008 was a foreign exchange gain of $3,105,000 on the Company's
assets held in U.S. dollars.
    For fiscal 2008, CoolBrands reported net income of $5,396,000, or
$0.09 per fully diluted share, compared to a loss of $(21,313,000), or $(0.38)
per share in the prior year. The improvement in operating results was due to
the elimination of a majority of the losses from business operations sold in
fiscal 2007 and a reduction in foreign exchange losses.

    Cash and working capital

    Cash and short-term investments were $61,172,000 at August 31, 2008,
compared to $68,351,000 at August 31, 2007 and $57,835,000 at May 31, 2008.
The increase in cash in the fourth quarter of fiscal 2008 from the third
quarter balance resulted primarily from an increase in the value of the
Company's U.S. dollar based investments as a result of the strengthening of
the U.S. dollar compared to the Canadian dollar and interest earned on the
Company's cash investments. Working capital was $61,050,000 at August 31, 2008
compared to a working capital of $50,000,000 at August 31, 2007. Contributing
to the increase in working capital during the year was the elimination of
liabilities relating to the Company's investment in the Americana Foods
Limited Partnership resulting from the settlement with the trustee of
Americana Foods and the release of all claims against CoolBrands and its
affiliates. Also contributing to the increase was the classification of a
$3 million promissory note as a current asset as a result of its pending
maturity in the coming fiscal year.
    Subsequent to August 31, 2008, CoolBrands converted the majority of its
U.S. dollar investments into Canadian dollars. These transactions will
minimize the Company's exposure to foreign exchange gains and losses in future
fiscal periods.


    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 administrative costs expected to be incurred in the
upcoming 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:

For further information: Carla Aedo, (905) 479-8762

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