Associated Brands Announces First Quarter 2005 Results.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 -- Associated Brands Income Fund (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :ABF ABF Arbetarnas BildningsFörbund ABF American Breakfast (Thailand Hotels) ABF Associated British Foods plc (London, UK) ABF Association des Bibliothecaires Francais (French) .UN) announced today its results for the three months ended April 2, 2005. Sales in the first quarter of 2005 were $36.0 million compared to $39.8 in the prior year. The decline was due primarily to lower contract manufacturing business 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 increased competition from branded products in 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. marketplace. Partially offsetting these factors were improved sales of the Fund's artificial sweeteners artificial sweetener: see sweetener, artificial. in the U.S. after declines in recent quarters and the successful launch of a new premium dry soup mix product 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 appreciation of the Canadian dollar Noun 1. Canadian dollar - the basic unit of money in Canada; "the Canadian dollar has the image of loon on one side of the coin" loonie dollar - the basic monetary unit in many countries; equal to 100 cents compared to the U.S. dollar reduced reported sales by $1.4 million in the quarter compared to last year. Earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
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. ) for the three months ended April 2, 2005 compared to $2.4 million or $0.180 per unit (diluted) last year. Distributable cash in the first quarter of 2005 was $1.7 million or $0.145 per Fund unit compared to $2.9 million or $0.250 per Fund unit last year. Distributions were $0.210 per unit compared to $0.269 per unit last year. Effective with the November November: see month. 2004 payment, monthly cash distributions were adjusted to $0.07 per unit from $0.0896 per unit. "As anticipated, the competitive factors and resultant This article is about the resultant of polynomials. For the result of adding two or more vectors, see Parallelogram rule. For the technique in organ building, see Resultant (organ). In mathematics, the resultant of two monic polynomials lower volumes experienced through the last half of 2004 continued to impact our performance in the first quarter of 2005, particularly when compared to the very strong first quarter of 2004" stated John Currie John Currie was a U.S. soccer player who earned two caps with the U.S. national team in 1937. His first game with the national team in a 7-2 loss to Mexico on September 12, 1937. His second game was two weeks later, a 7-3 loss to Mexico.[1] , Executive Chairman. "Our business fundamentals business fundamentals The general background within which an economy operates including earnings, sales, wage rates, taxes, and inflation. Improving business fundamentals are generally viewed as bullish for stocks, although stock prices at any given point remain strong and we believe that the cost initiatives and new business programs we are implementing will begin to show improved results as we progress through the second half of 2005 and into 2006." "Our performance improvement program is aimed at growing sales, enhancing cash flow and further strengthening the organization," added Rob Dougans Rob Dougan, also known as Rob D (born in Sydney, Australia in 1965) is a genre-blending music composer. Mixing elements of orchestral music, trip hop, and bluesy vocals, his work is only tangentially relatable to electronic music. , President and Chief Executive Officer. Mr. Dougans continued: "Already our sales pipeline has improved significantly over last year, and we have secured a number of new product listings that will be shipping to our customers through the third and fourth quarters of 2005. We have also introduced three new product categories to our customers, and selective price increases will be instituted in April. We are reducing our manufacturing costs, capturing the benefits of improved materials sourcing and procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. , and carefully managing inventories to enhance cash flow. In addition, experienced executives recruited in our sales and marketing and operational areas have considerably strengthened our management team. We are confident these and other initiatives will contribute to growth in sales and distributable cash going forward."
Financial Highlights (financial statements attached):
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Three Months
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Period Ended, April 2, April 3,
($000, except unit and per unit 2005 2004
amounts and percentages)
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Sales 35,959 39,758
EBITDA 2,716 4,229
Net Earnings 996 2,351
Net Earnings per Unit (diluted) $0.076 $0.180
Distributable Cash 1,701 2,938
Distributable Cash per Fund Unit $0.145 $0.250
Distributions Declared per Fund Unit $0.210 $0.269
Weighted Average Fund Units Outstanding 11,762,800 11,762,800
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Associated Brands Income Fund (TSX: ABF.UN), through its operating subsidiaries An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. , is a leading North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. manufacturer and supplier of private-label dry blend “Blending” redirects here. For alpha blending, see Alpha compositing. In linguistics, a blend is a word formed from parts of two other words. These parts are sometimes, but not always, morphemes. food products and household products. Since beginning operations in 1985, Associated Brands has grown to become one of the three largest suppliers of a diverse range of private-label dry-blend food products in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , producing over eleven million cases annually across multiple product categories currently sold to 44 of the 50 largest North American food retailers. Associated Brands plans to build unitholder value by leveraging its solid presence in the U.S. private-label market, expanding its product offerings to current and new customers and adding additional contract manufacturing business, and through accretive acquisitions Accretive Acquisition An acquisition that will increase the acquiring company's EPS. Notes: As they are expected to increase the acquiring company's future earnings, these acquisitions tend to be favorable for the company's market price. that meet its strict operating and strategic criteria criteria (krītēr´ē  ),n. . More information can be obtained at www.associatedbrands.com. Certain statements in this press release may include "forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. " statements which involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements of Associated Brands Income Fund to be materially different from any future results, performance or achievements expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by such forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . When used in this press release, such statements use such words as "may", "will", "expect", "anticipate", "project", "believe", "plan", and other similar terminology The terminology used in the computer and telecommunications field adds tremendous confusion not only for the lay person, but for the technicians themselves. What many do not realize is that terms are made up by anybody and everybody in a nonchalant, casual manner without any regard or . The risks and uncertainties are detailed from time to time in reports filed by the Fund with the securities regulatory authorities Noun 1. regulatory authority - a governmental agency that regulates businesses in the public interest regulatory agency administrative body, administrative unit - a unit with administrative responsibilities in all of the provinces and territories of Canada. New risk factors may arise from time to time and it is not possible for management to predict all of those risk factors or the extent to which any factor or combination of factors may cause actual results, performance and achievements of the Fund to be materially different from those contained in forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction "Prediction is very difficult, especially if it's about the future." - Niels Bohr A prediction is a statement or claim that a particular event will occur in the future in more certain terms than a forecast. of actual results. As used herein, "EBITDA" means earnings before interest, income taxes, depreciation, amortization, and translation gains and losses arising on all monetary assets and liabilities Monetary assets and liabilities Assets and liabilities with contractual payoffs. of the Fund denominated in a foreign currency. EBITDA is not a recognized measure under Canadian generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting ("GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). "). Management believes that EBITDA is a useful supplemental measure to net earnings (loss), as it provides investors with an indication of cash available for distribution prior to debt service, capital expenditures and income taxes. Distributable cash is also not a defined term under GAAP. Distributable cash is equal to net earnings before amortization, future income taxes and translation gains and losses arising from all monetary assets and liabilities of the Fund denominated in a foreign currency, less capital expenditures and debt repayments and reserves that the trustees may consider appropriate. Management believes distributable cash is a useful supplemental measure of operating performance, as it provides investors with an indication of cash available for distribution. Investors should be cautioned that neither EBITDA nor distributable cash should be construed as an alternative to net earnings (loss) determined in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with GAAP as an indicator Indicator Anything used to predict future financial or economic trends. Notes: In the context of technical analysis, an indicator is a mathematical calculation based on a securities price and/or volume. The result is used to predict future prices. of the Fund's performance or to cash flows from operating, investing and financing activities as a measure of liquidity and cash flows. The Fund's method of calculating EBITDA and distributable cash may differ from the methods by which other issuers calculate EBITDA and distributable cash and, accordingly, EBITDA and distributable cash may not be comparable to measures used by other issuers.
The following is a summarized version of the Consolidated Financial
Statements
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Associated Brands Income Fund
Consolidated Statement of Earnings and Deficit
(Unaudited)
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For the 13 weeks For the 13 weeks
ended April 2, 2005 ended April 3,2004
Sales $ 35,959,088 $ 39,757,837
Cost of sales 29,875,795 31,621,632
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6,083,293 8,136,205
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Expenses
General and administrative,
including foreign exchange 2,112,938 2,299,433
Selling and marketing 1,252,738 1,530,552
Amortization 873,299 900,023
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4,238,975 4,730,008
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1,844,318 3,406,197
Interest expense 561,519 442,174
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Earnings before income taxes 1,282,799 2,964,023
Income taxes 286,497 613,481
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Net earnings 996,302 $ 2,350,542
--------------- -------------------
--------------- -------------------
Net earnings per unit
Basic $ 0.08 $ 0 .20
--------------- -------------------
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Diluted $ 0.08 $ 0 .18
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Deficit, beginning of period $ (9,218,127) $ (4,816,761)
Net earnings 996,302 2,350,542
Distributions declared to
Fund unitholders (2,470,188) (3,161,841)
Distributions declared on Class B
exchangeable units - -
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Deficit, end of period $ (10,692,013) $ (5,628,060)
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Associated Brands Income Fund
Consolidated Balance Sheet
(Unaudited)
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April 2, 2005 December 31, 2004
Assets
Current
Receivables $ 10,534,701 $ 12,644,937
Income taxes receivable - 99,596
Inventories 19,770,404 22,406,391
Prepaids 1,457,692 1,389,197
Future income taxes 235,552 251,968
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31,998,349 36,792,089
Property, plant and equipment 23,030,047 23,723,222
Trademarks 15,315,000 15,315,000
Goodwill 84,263,592 84,263,592
Other assets 383,137 443,240
Future income taxes 412,292 339,946
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$ 155,402,417 $160,877,089
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Liabilities
Current
Bank indebtedness $ 3,256,096 $ 7,238,681
Payables and accruals 9,708,406 9,947,126
Cash distributions payable 823,396 823,396
Payable to former owners 2,302,137 2,302,137
Income taxes payable 116,505 -
--------------- -------------------
16,206,540 20,311,340
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Long-term debt 29,647,894 29,543,880
--------------- -------------------
Class B exchangeable units 12,023,908 12,023,908
--------------- -------------------
Unitholders' Equity
Fund units 108,216,088 108,216,088
Deficit (10,692,013) (9,218,127)
--------------- -------------------
97,524,075 98,997,961
--------------- -------------------
$ 155,402,417 $160,877,089
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Associated Brands Income Fund
Consolidated Statement of Cash Flows
(Unaudited)
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Increase (decrease) in cash For the 13 weeks For the 13 weeks
and cash equivalents ended April 2, 2005 ended April 3,2004
Operating
Net earnings $ 996,302 $ 2,350,542
Amortization 873,299 900,023
Future income taxes (55,930) (69,816)
Translation loss on long-term debt 104,014 46,800
Change in non-cash operating
working capital 4,655,109 (1,371,218)
--------------- -------------------
6,572,794 1,856,331
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Financing
Proceeds/(repayment) of bank
indebtedness (3,982,585) 1,472,270
Payment of distributions
to unitholders (2,470,188) (3,161,841)
Repayment of payable to
former owners - -
--------------- -------------------
(6,452,773) (1,689,571)
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Investing
Purchase of property, plant
and equipment (110,976) (165,921)
Purchase of other assets (9,045) (839)
--------------- -------------------
(120,021) (166,760)
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Net decrease in cash and
cash equivalents - -
Cash and cash equivalents,
beginning of year - -
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Cash and cash equivalents,
end of year $ - $ -
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Associated Brands' First Quarter 2005 Consolidated Financial Statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge and Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial are available on the investor relations Investor relations The process by which the corporation communicates with its investors. page at www.associatedbrands.com and on SEDAR SEDAR System for Electronic Document Analysis and Retrieval SEDAR Southeast Data, Assessment, and Review at www.sedar.com. Associated Brands Income Fund (TSX:ABF.UN) |
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