Ault Foods Limited Announces its Financial Results for the First Quarter of F'97, Ended July 31, 1996.ETOBICOKE, Ontario--(BUSINESS WIRE)--Sept. 11, 1996--AULT FOODS LIMITED(TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). ,ME:AUL) Ault Foods Ault Foods Limited was a Toronto-based dairy processor and Canada's largest dairy company acquiring other dairy companies across Canada. Ault sold off parts of their business in the mid-1990s; milk division (Sealtest Dairy and Silverwood Dairy) was sold to Agropur. Limited today announced its financial results covering the first quarter of 1997 fiscal year, which ended July 31, 1996. OPERATING HIGHLIGHTS Net earnings for the first quarter were $ 6,342,000 or $ 0.35 per common share, compared with $ 8,201,000 or $ 0.45 per share last year. Increased revenue and earnings experienced by the Cheese and Butter Products group could not offset disappointing results in our Frozen Products division, which was affected by a decline in volumes during the quarter. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the quarter of $ 364.0 million represent a decrease of 1.0 percent compared with the prior year as a result of the decline in volumes at the Frozen Products division. REFRIGERATED re·frig·er·ate tr.v. re·frig·er·at·ed, re·frig·er·at·ing, re·frig·er·ates 1. To cool or chill (a substance). 2. To preserve (food) by chilling. AND FROZEN PRODUCTS First quarter net sales for the group of $ 199.6 million were 6.2 percent lower than the corresponding quarter in the prior year. Frozen division volumes decreased by 19.2 percent compared to last year mainly caused by cool, wet weather during the quarter and decreased market share in packaged ice cream following the expiry of a long term supply agreement at a major Ontario retailer. Ontario fluid milk volumes showed improvement over last year, however net selling prices decreased as a result of strong pricing pressure in the marketplace. Segment operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. was $ 7,315,000 for the first quarter, compared to $ 11,875,000 last year, with the entire decline attributable to lower volumes at the Frozen Products division, as described earlier. In our Ontario and Quebec Refrigerated businesses plant and distribution cost reduction initiatives, reduced Lactantia PurFiltre amortization expenses, and increased revenues generated from additional Ontario sales volumes helped to offset the impact of intense pricing pressures. CHEESE AND BUTTER PRODUCTS First quarter net sales of $ 164.5 million were 6.2 percent ahead of last year, with the Consumer Products and International divisions displaying particular strength. Industrial-class milk availability during the first quarter increased 4.3 percent over the prior year with receipts in the month of May extremely strong. Milk availability for June/July, however, was below last years levels and it would appear this trend will continue through the balance of the fiscal year, it is not anticipated to have a negative impact on our cheese business in the near term. Segment operating income in the first quarter of $ 6,098,000 compares well with the $ 5,219,000 achieved last year. The J.M. Schneider cheese business, acquired in November 1995, has created positive synergies with our existing cheese business producing record level domestic-branded cheese shares in the quarter. Plant cost reduction initiatives continued to be emphasized and contributed positively to the first quarter performance. OTHER DEVELOPMENTS During May, the Company acquired the remaining 50 percent interest in Canlac Corporation ("Canlac") and then proceeded to sell 100 percent of Canlac to a 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. affiliate of Solvay S Noun 1. Solvay - Belgian chemist who developed the Solvay process and built factories exploiting it (1838-1922) Ernest Solvay .A., a Belgian-based chemical and pharmaceutical multinational. An agreement was also reached whereby Ault will continue to supply raw materials into the Canlac facility. In late June, an agreement was reached with Nabisco Ltd. regarding the licensing in Canada of Nabisco margarine margarine, manufactured substitute for butter. It consists of a blend of vegetable oils or meat fats (or a combination of both) mixed with milk and salt. It was developed in the late 1860s by the French chemist Hippolyte Mège-Mouries in a contest sponsored by brands and technologies to Ault. The transition process is currently underway and the Nabisco margarine brands, including Parkay, are expected to become part of the Ault portfolio starting in October. In July, an agreement was finalized See finalization. to outsource Ault's transportation business to a transportation services provider. As part of the agreement the purchaser acquired Ault's existing trailer In communications, a code or set of codes that make up the last part of a transmitted message. See trailer label. fleet and assumes the responsibility of providing transportation services to the Company. OUTLOOK While the industrial milk supply situation presents a short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. challenge, the Company remains well positioned in our consumer cheese business and strong results are expected to continue in the Cheese and Butter Products group. In the Refrigerated and Frozen Products group, the Company anticipates that the fluid milk industry dynamics will improve slowly and expects future results from the Frozen Products division are expected to track more closely to those of the previous year. Cost reduction initiatives throughout all businesses will continue to be emphasized during this fiscal year. DIVIDEND At a meeting held on September 11, 1996, the Board of Directors declared a quarterly dividend of $0.165 per common share, payable on October 15, 1996 to shareholders of record on September 30, 1996. -0- Consolidated Statement of Earnings thousands of dollars except per share amounts Period ended July 31 (unaudited) three months ended 1996 1995 ------ ------ Net sales $ 364,020 $ 367,688 -------- -------- Operating income before the undernoted 13,413 17,094 Interest expense , net 3,016 3,562 --------- ------- Earnings before income taxes 10,397 13,532 Income taxes 4,055 5,331 --------- ------- Net earnings $ 6,342 $ 8,201 --------- ------- --------- ------- Net earnings per common share $ 0.35 $ 0.45 --------- ------- --------- ------- Weighted average number of common shares (thousands) 18,373 18,346 --------- ------- Segmented Information thousands of dollars Period ended July 31 (unaudited) three months ended 1996 1995 (1) ------ --------- Net sales Refrigerated and Frozen Products $ 199,569 $ 212,803 Cheese and Butter Products 164,451 154,885 -------- --------- $ 364,020 $ 367,688 -------- --------- -------- --------- Operating income Refrigerated and Frozen Products $ 7,315 $ 11,875 Cheese and Butter Products 6,098 5,219 -------- --------- $ 13,413 $ 17,094 -------- --------- -------- --------- Identifiable assets Refrigerated and Frozen Products $ 278,862 $ 311,177 Cheese and Butter Products 316,807 320,831 -------- --------- $ 595,669 $ 632,008 -------- --------- -------- --------- Depreciation and amortization Refrigerated and Frozen Products $ 5,637 $ 5,960 Cheese and Butter Products 3,605 3,187 -------- --------- $ 9,242 $ 9,147 -------- --------- -------- --------- Capital expenditures Refrigerated and Frozen Products $ 2,793 $ 2,871 Cheese and Butter Products 3,592 1,608 -------- --------- $ 6,385 $ 4,479 -------- --------- -------- --------- Consolidated Balance Sheet consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. (Condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. ) thousands of dollars As at July 31 (unaudited) 1996 1995 (1) ------- -------- Assets Current assets Current Assets Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year. $ 229,699 $ 260,746 Investments and other 122,471 120,264 Fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → , net 243,499 250,998 -------- --------- $ 595,669 $ 632,008 -------- --------- -------- --------- Liabilities and Shareholders' Equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. Current liabilities Current Liabilities Usually appearing on a company's balance sheet, it represents the amount owed for interest, accounts payable, short-term loans, expenses incurred but unpaid, and other debts due within one year. $ 130,080 $ 171,438 Long term debt 133,909 124,670 Deferred income taxes 42,105 45,232 Shareholders' equity 289,575 290,668 -------- --------- $ 595,669 $ 632,008 -------- --------- -------- --------- Consolidated Statement of Changes in Financial Position thousands of dollars Period ended July 31 (unaudited) three months ended 1996 1995 (1) ------ -------- Operating Activities Net earnings $ 6,342 $ 8,201 Depreciation and amortization 9,242 9,147 Other non-cash items (51) (178) -------- --------- 15,533 17,170 Used for working capital (11,183) (9,490) -------- --------- 4,350 7,680 -------- --------- Investing Activities Additions to fixed assets, net (6,385) (4,479) Business divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). 4,866 Proceeds on sale of investments 14,821 Increase in accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying sold 12 66 Other 30 (34) -------- --------- 13,344 (4,447) -------- --------- Financing Activities Decrease in long term debt, net (379) (361) Issue of long term note (4,866) -------- --------- (5,245) (361) -------- --------- Dividends paid (3,032) (3,027) -------- --------- Increase (decrease) in cash position 9,417 (155) Cash position, beginning of period (10,830) (23,883) -------- --------- Cash position, end of period $ (1,413) $ (24,038) -------- --------- -------- --------- Represented by: Cash $ 2,964 $ 749 Bank indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. (4,377) (24,787) -------- --------- $ (1,413) $ (24,038) -------- --------- -------- --------- -0- NOTE: (1) The comparative 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 have been reclassified to conform with the current year's presentation. CONTACT: Ault Foods Limited John Hamilton John Hamilton may refer to:
or Ault Foods Limited Pamela Kempthorne, 416/620-3115 |
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