ROUGEMONT, QC, Nov. 12, 2013 /CNW Telbec/ - Lassonde Industries Inc. (TSX: LAS.A) ("Lassonde") posted sales of $257.6 million in the third quarter of 2013, a 1.0% increase year over year. Profit attributable to the Company's shareholders for this period totalled $11.2 million, up $0.8 million from the third quarter of 2012.
| Financial highlights
(in thousands of dollars)
|Third quarters ended|
| September 28,
| September 29,
|Sales||$ 257,569||$ 255,084|
|Profit before income taxes||15,732||14,476|
|Profit attributable to the Company's shareholders||11,151||10,377|
|Basic and diluted earnings per share (in $)||$ 1.60||$ 1.49|
|(1)||Figures restated following the adoption, on January 1, 2013, of the amended version of IAS 19. For more information about the restatement, see Note 15 to the unaudited interim condensed consolidated financial statements for the quarter ended September 28, 2013.|
|Note: These are financial highlights only. Management's Discussion and Analysis, the unaudited interim condensed consolidated financial statements and notes thereto for the quarter ended September 28, 2013 will be available on the SEDAR website at www.sedar.com and on the website of Lassonde Industries Inc.|
"We have been able to achieve a slight increase in sales despite difficult market conditions. I am also pleased to report that the indebtedness of Clement Pappas was reduced to US$190.0 million as at September 28, 2013 from US$254.6 million as at August 13, 2011," said Pierre-Paul Lassonde, Chairman of the Board and Chief Executive Officer of Lassonde Industries Inc.
The Company's sales totalled $257.6 million in the third quarter of 2013, up $2.5 million or 1.0% from $255.1 million in the same period of 2012. This increase was primarily driven by a favourable foreign exchange impact partly offset by an unfavourable sales mix and lower private label sales attributable to the displacement of cranberry sauce sales to the fourth quarter of 2013. For the first nine months of 2013, sales totalled $756.7 million, up 1.6% from $744.9 million in the first nine months of 2012.
The Company's operating profit for the third quarter of 2013 stood at $22.1 million, down $0.6 million or 2.2% from operating profit of $22.7 million in the same quarter last year. This decrease was partly due to charges resulting from production shutdowns while new equipment was installed and to a slight increase in selling and administrative expenses. Operating profit for the first nine months of 2013 stood at $55.5 million, down $1.2 million from $56.7 million at the end of the first nine months of 2012.
The Company's financial expenses went from $7.0 million in the third quarter of 2012 to $5.8 million this quarter. This decrease was mostly attributable to a $1.1 million decrease of interest expense arising from a change in the interest rates applicable to CPC's term loan and a reduction in indebtedness. For the first nine months, financial expenses went from $17.4 million in 2012 to $16.7 million this fiscal year.
"Other (gains) losses" went from a $1.2 million loss in the third quarter of 2012 to a $0.6 million loss in the third quarter of 2013, mainly due to a $0.5 million lower loss related to the change in fair value of interest rate swaps. For the first nine months, "Other (gains) losses" was a $0.4 million gain in 2013 compared to a $3.0 million loss in 2012.
Profit before income taxes stood at $15.7 million for the third quarter of 2013, up $1.2 million from $14.5 million in the same quarter last year. For the first nine months of 2013, profit before income taxes stood at $39.1 million, up 7.8% from $36.3 million in the first nine months of 2012.
An income tax expense at an effective rate of 26.8% (26.5% in 2012) brought the 2013 third-quarter profit to $11.5 million, up $0.9 million from $10.6 million in the same quarter of 2012. Profit attributable to the Company's shareholders was $11.2 million, resulting in basic and diluted earnings per share of $1.60 for the third quarter of 2013. In the third quarter of 2012, profit attributable to the Company's shareholders had totalled $10.4 million, resulting in basic and diluted earnings per share of $1.49. For the first nine months of 2013, profit attributable to the Company's shareholders totalled $28.4 million, resulting in basic and diluted earnings per share of $4.06 while, in the same nine-month period of 2012, profit had totalled $26.6 million, resulting in basic and diluted earnings per share of $3.81.
Cash flows from operating activities generated $38.2 million in cash during the third quarter of 2013, while they had generated $16.7 million during the same period last year. Financing and investing activities used $18.5 million and $5.0 million, respectively, in cash in the third quarter of 2013, whereas they had used $5.4 million and $5.1 million in the same period last year. At the end of the third quarter of 2013, the Company reported a cash and cash equivalents balance of $12.0 million and a bank overdraft of $0.6 million compared to a cash and cash equivalents balance of $7.1 million at the end of the third quarter of 2012.
Market data indicates that there is downward pressure on the sales volumes of North American fruit juice and fruit drink producers. This has led to increased competition among North American producers in recent quarters, resulting in continued high trade spending levels. The Company is responding to the changing competitive landscape and improving the strategic market positioning of its national brands through innovation.
Lassonde Industries Inc. plans on maintaining its business model and management approach for the coming year. Barring any major external shocks, the Company remains optimistic about its ability to slightly increase its consolidated sales in 2013 compared to 2012.
About Lassonde Industries Inc.
Lassonde Industries Inc. is a North American leader in the development, manufacture and sale of a wide range of fruit and vegetable juices and drinks marketed under brands such as Everfresh, Fairlee, Flavür, Fruité, Graves, Oasis and Rougemont.
Lassonde is also the second largest producer of store brand ready-to-drink fruit juices and drinks in the United States and a major producer of cranberry juices, drinks and sauces.
Lassonde also develops, manufactures and markets specialty food products under brands such as Antico and Canton. The Company imports and markets selected wines from various countries and manufactures apple ciders and wine-based beverages.
The Company produces superior quality products through the efforts of some 2,000 people working in 14 plants across Canada and the United States. To learn more, visit www.lassonde.com.
SEDAR registration number: 00002099
Caution Concerning Forward-Looking Statements
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 except as required by law.
SOURCE: Lassonde Industries Inc.
For further information:
Guy Blanchette, FCPA, CA
Vice-President and Chief Financial Officer
Lassonde Industries Inc.
450-469-4926, extension 10782
Lassonde Industries Inc.
450-469-4926, extension 10265