A.L. VAN HOUTTE LTD. - second-quarter revenues almost quadruple.MONTREAL--(BUSINESS WIRE)--Dec. 8, 1994--A.L. VAN HOUTTE Van Houtte Inc. (TSX: VH) is a company based in Montreal, Quebec, Canada that processes, distributes and sells coffee and related products. France-born Albert-Louis Van Houtte (1877–1944)[1] emigrated to Canada in 1912. LTD LTD 1 Laron-type dwarfism 2 Leukotriene D 3 Long-term depression, see there 4. Long-term disability .(ME: VH) For the 12 weeks ended October October: see month. 15, 1994, A.L. VAN HOUTTE LTD. recorded revenues of $38.4 million, almost four times the revenues of $9.8 million reported one year earlier. Net earnings for the quarter stood at $1,075,872, an increase of 37.5%. Earnings per share amounted to $0.13 on a weighted average of 8,225,245 shares outstanding, and the same value on a fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis. This compares with earnings per share of $0.14 on 5,557,245 shares outstanding in the second quarter of 1993. The strong growth in revenues resulted mainly from the recognition, for the full period, of Red Carpet Food Services food services Hospital services A 24/7 department in a hospital that provides for the nutritional needs of inpatients–eg, those needing special diets, preparing meals and transporting them to the floor and, through the cafeteria, the hospital staff and , financial results and of the company's 51% interest in those of VKI VKI Variable Keyframe Interval (DivX encoding algorithm) VKI Virtual Keyframe Interval Technologies, combined with the consolidation of Selena Coffee's results. Together these three entities contributed additional revenues of $23.8 million to the Company's consolidated revenues for the second quarter. Moreover, the combined sales of Cafe Selena and the Coffee Group grew by 46%, mainly due to higher coffee prices throughout the industry. Finally, revenues from royalties and entry fees increased by 144% due to the contribution of the Filterfresh network in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and a 17.3% increase in sales generated by the network of cafe-bistros and coffee-bars in Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of . The Filterfresh network's retail sales rose to CAN $10.4 million, and those of the cafe-bistro network, to $9.1 million. In terms of profitability, although the Company's recently acquired businesses performed according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. expectations, A.L.Van Houtte's gross margin - especially that of the Coffee Group - was hard hit by a further hike in green coffee prices during the summer. However, the Company initiated two new price increases in September September: see month. and November November: see month. , which should restore its profit margins within the next quarters. In this regard, the decline in operating profitability during the second quarter is an exceptional situation, caused by a delay of a few weeks between the rise in green coffee prices and the Company's increase in selling prices. In addition, depreciation and amortization expenses almost doubled due to the Company's significantly expanded asset base such as fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → , which stood at $61.4 million as at October 15, 1994, up from $16.8 million at the same date one year earlier. Similarly, financial expenses were up by $741,000 due to the $21.5 million debenture debenture (dəbĕn`chər), document acknowledging indebtedness. In Great Britain a debenture is practically the same as a bond, and debenture stock is similar to preferred stock. issue and the recourse The right of an individual who is holding a Commercial Paper, such as a check or promissory note, to receive payment on it from anyone who has signed it if the individual who originally made it is unable, or refuses, to tender payment. to long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. loans of $18.3 million for the acquisition of Red Carpet and VKI. Year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. results for first six months For the 28 weeks ended October 15, 1994, the Company's consolidated revenues totalled $57.1 million, up 162.9% over the previous year. A.L. Van Houtte posted net earnings of $2,416,921, an increase of 51.6%. Earnings per share amounted to $0.33 on a weighted average of 7,433,245 shares outstanding, and the same value on a fully diluted basis, compared with $0.29 on 5,557,245 shares outstanding one year earlier. Cash flow grew by 112%, rising to $7.5 million or $1.00 per share. Outlook In light of the expansion in its business base and the recent rises in selling prices within the industry, A.L. Van Houtte expects its revenues to top the $125 million mark for the year ending April 1, 1995. Moreover, management believes that green coffee prices have now peaked, and that there should not be any major increases in the coming months. On the contrary, prices have decreased in the past few weeks, although it is still too early to identify a real trend from these fluctuations. Overall, the growth in revenues, combines with a certain stabilization Stabilization The action undertakes a country when it buys and sells its own currency to protect its exchange value. Actions registered competitive traders undertake by on the NYSE to meet the exchange requirement that 75% of their traded be stabilizing, meaning that sell orders in green coffee prices, will help to restore the Company's gross margins and consolidated operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: by the end of this year. Therefore, even considering higher interest, depreciation and amortization expenses, management expects a significant gain in net earnings and earnings per share for fiscal 1994-1995. -0-
A.L. VAN HOUTTE LTEE
CONSOLIDATED STATEMENT OF EARNINGS
(in thousands of dollars, except for earnings per share data)
For the 12-week period
ended
OCTOBER 15, OCTOBER 16,
1994 1993
_____________________________
Revenues 38,412 9,780
Cost of goods sold and
operating expenses 31,854 7,398
_____________________________
6,558 2,382
Depreciation and amortization 3,468 824
_____________________________
3,090 1,558
Financial expenses 951 210
_____________________________
Income before the undernoted items 2,139 1,348
Income taxes 930 566
Equity in net earnings of companies
subject to significant influence 26 1
Non-controlling interest 159
_____________________________
Net income 1,076 783
_____________________________
_____________________________
Earnings per share 0.13 0.14
_____________________________
_____________________________
Average number of equity shares
outstanding 8,225 5,557
_____________________________
_____________________________
Fully diluted earnings per share 0.13
____
For reference only:
A.L. Van Houtte cafe-bistro and
coffee-bar franchised network's
revenue 9,067 7,730
_____________________________
_____________________________
Filterfresh franchised network's
revenue 10,384
________
________
For the 28-week period
ended
OCTOBER 15, OCTOBER 16,
1994 1993
_____________________________
Revenues 57,133 21,736
Cost of goods sold and
operating expenses 46,437 16,506
_____________________________
10,696 5,230
Depreciation and amortization 5,078 1,961
_____________________________
5,618 3,269
Financial expenses 1,190 518
_____________________________
Income before the undernoted items 4,428 2,751
Income taxes 1,901 1,153
Equity in net earnings of companies
subject to significant influence 91 (1)
Non-controlling interest 201 2
_____________________________
Net income 2,417 1,595
_____________________________
_____________________________
Earnings per share 0.33 0.29
_____________________________
_____________________________
Average number of equity shares
outstanding 7,433 5,557
_____________________________
_____________________________
Fully diluted earnings per share 0.33
____
For reference only:
A.L. Van Houtte cafe-bistro and
coffee-bar franchised network's
revenue 20,528 17,623
_____________________________
_____________________________
Filterfresh franchised network's
revenue 18,190
________
________
CONTACT: Paul-Andre Guillotte
President and Chief Executive Officer
514/593-7711
INDUSTRY KEYWORD (1) A word used in a text search. (2) A word in a text document that is used in an index to best describe the contents of the document. (3) A reserved word in a programming or command language. 1. : FOODS/BEVERAGES EARNINGS REPEATS: New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of 212-575-8822 or 800-221-2462; Boston Boston, town, England Boston, town (1991 pop. 26,495), E central England, on the Witham River. Boston's fame as a port dates from the 13th cent., when it was a Hanseatic port trading wool and wine. Having recovered from a decline in the 18th and 19th cent. 617-330-5311 or 80 |
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