ROUGEMONT, QC, March 28, 2014 /CNW Telbec/ - Lassonde Industries Inc. (TSX: LAS.A) ("Lassonde") posted sales of $1,040.2 million in fiscal 2013, a 1.8% increase year over year. Profit attributable to the Company's shareholders totalled $44.9 million, up 1.7% from fiscal 2012.
| Financial highlights
(in thousands of dollars)
| Fourth quarters
| December 31,
| December 31,
| December 31,
| December 31,
|Profit before income taxes||23,090||22,597||62,190||58,851|
|Profit attributable to the Company's shareholders||16,548||17,587||44,935||44,193|
|Basic and diluted earnings per share (in $)||$||2.37||$||2.52||$||6.43||$||6.32|
|(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 31 to the audited consolidated financial statements for the year ended December 31, 2013.|
Note: These are financial highlights only. Management's Discussion and Analysis, the audited consolidated financial statements and notes thereto for the year ended December 31, 2013 will be available on the SEDAR website at www.sedar.com and on the website of Lassonde Industries Inc.
"We are pleased to report a 1.7% increase in earnings per share for 2013 despite challenging market conditions. As industry volumes are not showing signs of improvement, we intend to take the steps necessary to protect our competitive position. We also want to note that Clement Pappas repaid US$42.7 million of its long-term debt in 2013 from operating cash flows," said Pierre-Paul Lassonde, Chairman of the Board and Chief Executive Officer of Lassonde Industries Inc.
2013 Financial Results
The Company's sales amounted to $1,040.2 million in 2013, up $18.0 million (1.8%) from $1,022.2 million in 2012. This sales growth came mainly from higher sales volumes of private labels, a favourable foreign exchange impact and a favourable sales mix. The positive impact of these factors was mitigated by lower sales of the Company's national brands and an increase in trade spending.
The Company's operating profit for the year ended December 31, 2013 totalled $83.1 million, a $2.8 million year-over-year decrease that was mainly due to higher selling and administrative expenses resulting, among other factors, from operational adjustments related to the Clement Pappas and Company, Inc. ("CPC") integration process, and to higher advertising expenses. It should be noted that the operating profit for 2012 had included a $1.5 million gain on the sale of a facility and land located in Ruthven, Ontario.
The Company's financial expenses went from $24.1 million in 2012 to $22.2 million in 2013. This $1.9 million decrease was largely attributable to a decrease in interest expense arising from a change in the interest rates applicable to CPC's term loan and from a reduction in indebtedness.
"Other (gains) losses" went from a loss of $2.9 million in 2012 to a $1.3 million gain in 2013. The 2012 loss came primarily from $2.6 million in losses resulting from a change in the fair value of interest rate swaps related to CPC's debt, whereas substantially all of the gain in 2013 came from foreign exchange gains.
Profit before income taxes totalled $62.2 million in 2013, up $3.3 million (5.7%) from $58.9 million in 2012.
An income tax expense at an effective rate of 25.5% (23.1% in 2012) brought the 2013 profit to $46.3 million, up $1.0 million from $45.3 million in 2012. Profit attributable to the Company's shareholders totalled $44.9 million for basic and diluted earnings per share of $6.43 for 2013. In 2012, profit attributable to the Company's shareholders had stood at $44.2 million, resulting in basic and diluted earnings per share of $6.32.
Cash flows from operating activities generated $94.8 million during 2013, while they had generated $101.5 million last year. Financing activities used $81.9 million in 2013 while they had used $46.6 million last year. This change was mainly due to an increase in long-term debt repayments. Investing activities used $22.5 million during 2013 while they had used $24.9 million last year. At year-end 2013, the Company reported a cash and cash equivalents balance of $13.5 million and a bank overdraft of $0.8 million compared to a cash and cash equivalents balance of $22.2 million at the end of last year.
Fourth Quarter Financial Results
The Company's sales totalled $283.5 million in the fourth quarter of 2013, up $6.2 million or 2.2% from $277.3 million in the same period of 2012. This increase was primarily driven by a favourable foreign exchange impact and a favourable sales mix, partly offset by price decreases, due to higher trade spending.
The Company's operating profit for the fourth quarter of 2013 totalled $27.7 million, down $1.5 million or 5.3% from operating profit of $29.2 million in the fourth quarter of 2012. This decrease was due, among other factors, to a higher cost of raw materials partly offset by a slight decrease in selling and administrative expenses.
The Company's financial expenses went from $6.7 million in the fourth quarter of 2012 to $5.5 million in the fourth quarter of 2013. This $1.2 million decrease was largely due to a decrease in interest expense arising from a change in the interest rates applicable to CPC's term loan and from a reduction in indebtedness.
"Other (gains) losses" went from a $0.1 million gain in the fourth quarter of 2012 to a $0.9 million gain in the fourth quarter of 2013. Substantially all of the 2013 gain was due to foreign exchange gains.
Profit before income taxes totalled $23.1 million in the fourth quarter of 2013, up $0.5 million from $22.6 million in the fourth quarter of 2012.
An income tax expense at an effective rate of 26.4% (20.4% in 2012) brought the 2013 fourth-quarter profit to $17.0 million, down $1.0 million from $18.0 million in the same quarter of 2012. Profit attributable to the Company's shareholders was $16.5 million, resulting in basic and diluted earnings per share of $2.37 for the fourth quarter of 2013. In the fourth quarter of 2012, profit attributable to the Company's shareholders had totalled $17.6 million, resulting in basic and diluted earnings per share of $2.52.
Market data indicates that sales volumes of North American fruit juice and fruit drink producers were slightly lower in 2013. This has led to increased competition among North American producers in recent quarters, resulting in continued high trade spending levels.
Fiscal 2014 begins in a similar context. Some of the Company's main competitors were affected by drops in soft drink sales in 2013. As a result, competitive pressure is increasing in the fruit juice and drink category. Lassonde Industries Inc. is adjusting its business model and expense level to maintain its competitive position and protect its profitability. Barring any major external shocks, the Company remains optimistic about its ability to slightly increase its consolidated sales in 2014 compared to 2013.
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 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
Executive Vice-President and Chief Financial Officer
Lassonde Industries Inc.
450-469-4926, extension 10782
Lassonde Industries Inc.
450-469-4926, extension 10265