A.L. Van Houtte Increases Net Earnings by 26.2 percent in Third Quarter.HOUTTE LTEE LTEE Limitee (French: Limited Company) (ME, TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). : VH ) 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. LTEE recorded excellent results during the third quarter, with increases of 26.2 percent in net earnings and 14.1 percent in sales. For the 12 weeks ended January January: see month. 6, 1996, the Company's revenues totalled $39.3 million, up from $34.4 million in 1995. The third quarter of the previous year included Red Carpet's results for a period of eight weeks only; if considered over a 12-week period, revenues would have been equivalent for the two quarters, 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. the drop in green coffee and selling prices, which had been anticipated. A higher business volume in all sectors had a positive impact on the profitability of A.L. Van Houtte, whose earnings before depreciation, amortization, financial expenses and income taxes grew by 19 percent to $8.1 million. Net earnings amounted to $2,234,300 or $0.27 per share, compared with $1,769,200 or $0.22 per share last year. Lastly, the Company's cash flow reached $5.7 million or $0.69 per share. Results for the 40 weeks ended January 6, 1996 For the first nine months of the fiscal year, A.L. Van Houtte posted net earnings of $5,164,756, up 23.4 percent over 1995. Earnings per share amounted to $0.63, up from $0.55 last year. Sales climbed to $124.6 million, an increase of 36 percent, while cash flow totalled $15.2 million or $1.84 per share. It should be pointed out that the Company's major expansion in the office coffee service sector intensified in·ten·si·fy v. in·ten·si·fied, in·ten·si·fy·ing, in·ten·si·fies v.tr. 1. To make intense or more intense: the cyclical cyclical Of or relating to a variable, such as housing starts, car sales, or the price of a certain stock, that is subject to regular or irregular up-and-down movements. nature of its revenues, making the last six months of the year a more active and profitable period. This performance was sustained by all segments of the Company's business. Single-cup office coffee services posted solid growth, especially in the Toronto Toronto (tərŏn`tō), city (1998 est pop. 2,400,000), provincial capital, S Ont., Canada, on Lake Ontario. Toronto is the largest city in Canada and since the 1970s has been one of the fastest-changing cities in North America, experiencing area where A.L. Van Houtte significantly increased its base of VKI VKI Variable Keyframe Interval (DivX encoding algorithm) VKI Virtual Keyframe Interval equipment. The Coffee Group also continued to expand in Ontario Ontario, city, United States Ontario, city (1990 pop. 133,179), San Bernardino co., S Calif., near Los Angeles, in a region of vineyards; inc. 1891. and in its traditional markets. On February February: see month. 14, 1996, the Group signed an agreement for the roasting roasting: see cooking. roasting In metallurgy, usually the first step in smelting ore to extract metal. The ore is heated in the presence of an abundant flow of air to drive off moisture and, if the metal-bearing mineral is a sulfide, convert it to and distribution under licence of all Brulerie St-Denis products in grocery stores, hotels, restaurants and other food service establishments. This agreement offers good growth and synergy The enhanced result of two or more people, groups or organizations working together. In other words, one and one equals three! It comes from the Greek "synergia," which means joint work and cooperative action. potential since it will complete A.L. Van Houtte's range of high-end high-end adj. Informal 1. Appealing to sophisticated and discerning customers: a high-end department store; high-end video equipment. 2. gourmet coffees. In addition, the U.S. Filterfresh chain continued to experience vigorous growth. The network's sales increased by 23 percent during the third quarter, bringing its total year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. revenues to US$33.5 million. With regard to the Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. cafe-bistro and coffee-bar network, a weak economy combined with the closing in the third quarter of two less profitable franchises led to a 2.9 percent decline in sales. However, the Company plans to open five new outlets during the fourth quarter. The Company's financial position is excellent. As at January 6, 1996, A.L. Van Houtte benefited from working capital of $6.2 million and a total debt/equity and quasi-equity ratio of 0.27:1. During the third quarter, 10,000 subordinate voting shares Voting Shares Shares that give the stockholder the right to vote on matters of corporate policy making as well as who will compose the members of the board of directors. Notes: Different classes of shares, such as preferred stock, sometimes don't allow for voting rights. were issued to the "Fonds
Fonds is an archival term used to describe a collection of papers that originate from the same source. Cote 100 REA-Action" (a QSSP QSSP Quantum and Solid State Physics investment fund), for a consideration of $193,000. Management is confident that A.L. Van Houtte will meet its financial objectives for the current fiscal year since the fourth quarter is generally the year's most active and profitable. For information purposes, referring to the full 12 months ended January 6, 1996, the Company cumulated sales of $164.5 million, cash flow of $21.5 million and net earnings of $7.2 million or $0.88 per share. -0- A.L. Van Houtte Ltd. CONSOLIDATED STATEMENT OF EARNINGS (in thousands of dollars, except for earnings per share data)
For the 12-week period
ended
JANUARY 6 JANUARY 7
1996 1995
__________________________
Revenues 39,307 34,446
Cost of goods sold and
operating expenses 31,244 27,647
__________________________
8,063 6,801
Depreciation and amortization 3,385 2,627
__________________________
4,678 4,174
Financial expenses 875 821
__________________________
Income before the undernoted items 3,803 3,353
Income taxes 1,563 1,174
Equity in net earnings of companies
subject to significant influence 17 14
Non-controlling interest 23 423
__________________________
Net income 2,234 1,770
__________________________
__________________________
Earnings per share 0.27 0.22
__________________________
__________________________
Average number of equity
shares outstanding 8,254 8,225
__________________________
__________________________
Diluted earnings per share 0.26 0.21
__________________________
__________________________
Cash flow per share 0.69 0.56
__________________________
__________________________
For reference only:
Sales
Cafe-bistros and
coffee-bars network 8,427 8,680
__________________________
__________________________
Sales
Filterfresh network 12,494 10,155
__________________________
__________________________
For the 40-week period
ended
JANUARY 6 JANUARY 7
1996 1995
__________________________
Revenues 124,558 91,581
Cost of goods sold and
operating expenses 102,006 74,084
__________________________
22,552 17,497
Depreciation and amortization 10,494 7,705
__________________________
12,058 9,792
Financial expenses 3,021 2,011
__________________________
Income before the undernoted items 9,037 7,781
Income taxes 3,751 3,076
Equity in net earnings of companies
subject to significant influence 37 105
Non-controlling interest 158 623
__________________________
Net income 5,165 4,187
__________________________
__________________________
Earnings per share 0.63 0.55
__________________________
__________________________
Average number of equity
shares outstanding 8,253 7,671
__________________________
__________________________
Diluted earnings per share 0.63 0.55
__________________________
__________________________
Cash flow per share 1.84 1.58
__________________________
__________________________
For reference only:
Sales
Cafe-bistros and
coffee-bars network 29,328 29,208
__________________________
__________________________
Sales
Filterfresh network 33,483 23,336
__________________________
__________________________
CONTACT: A.L. Van Houtte Ltee Paul-Andre Guillotte President and Chief Executive Officer 514/593-7711 514/593-8755 (Fax) or A.L. Van Houtte Ltee Gerard Gerard is a male forename of Germanic origin, variations of which exist in many Germanic and Romance languages. The name derives from Old Germanic 'ger' ('spear') and 'hard' ('hard/strong/brave'). Its meaning is 'strong/brave with the spear'. Geoffrion, Vice-President vice president or vice-pres·i·dent n. Abbr. VP 1. An officer ranking next below a president, usually empowered to assume the president's duties under conditions such as absence, illness, or death. 2. , Corporate Development 514/593-7711 514/593-8755 (Fax) |
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