TORONTO, June 24 /CNW/ - CoolBrands International Inc. (TSX: COB)
("CoolBrands" or the "Company") today announced its financial results for the
third quarter of fiscal 2009 ended May 31, 2009. 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.
CoolBrands reported a loss in the third quarter of fiscal 2009 of
$(965,000), or $(0.02) per fully diluted share, compared to net income of
$170,000, or $0.00 in the third quarter of 2008. The loss in the third quarter
of fiscal 2009 was comprised of a loss from continuing operations of
$(1,128,000), or $(0.02) per fully diluted share, and income from discontinued
operations of $163,000, or $0.00 per fully diluted share. This compared to
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 in the third
quarter of fiscal 2008. The decline in earnings of $1,135,000 compared to the
prior year quarter was due to a difference in a foreign exchange loss of
$1,343,000, as a result of the appreciation of the Canadian dollar against the
U.S. dollar during the third quarter of fiscal 2009.
For the nine months ended May 31, 2009, net income was $1,973,000
compared to $1,684,000 in the comparable year period.
Cash and working capital
Cash and short-term investments were $62,296,000 at May 31, 2009,
compared to $61,172,000 at August 31, 2008. During the third quarter of fiscal
2009, cash decreased by $1,505,000 primarily from a loss on foreign exchange
on the Company's remaining U.S. dollar investments and payments to vendors
exceeding the amount of cash generated from the Company's investments. Working
capital was $59,008,000 at May 31, 2009, compared to a working capital balance
of $61,050,000 at August 31, 2008. The reduction in working capital was the
result of a reclassification of a U.S. $3 million promissory note receivable
from a current asset to a long-term asset as the expected date of collection
is being renegotiated.
During the quarter, management reviewed several investment opportunities.
Management continues to solicit investment opportunities that will provide
long-term benefit to the Company's shareholders. Management and the board of
directors believe the current economic environment provides a unique
opportunity to invest the Company's cash assets.
Forward Looking Statements
The information in this document may contain certain forward-looking
statements with respect to CoolBrands International Inc., and its
subsidiaries. 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, risks that could cause actual performance, achievements and
financial results to differ materially from those contemplated by the
forward-looking statements. These risks and uncertainties are described in
publicly filed disclosure documents of CoolBrands. 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.
For further information:
For further information: Ken MacKenzie, Telephone: (905) 479-9249