Canada Bread Company, Limited Reports First Quarter Earnings.TORONTO--(BUSINESS WIRE)--May 1, 1998--Canada Bread Company(TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :CBY CBY Central Bank of Yemen CBY Camp Burn Yourself (Swedish alternative arts festival) CBY Suvorov Military School (Russian acronym) ) 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 Bread Company, Limited today announced earnings for the first quarter. The Company has changed its quarterly reporting periods to four 13 week quarters. As a result, the first quarter 1998 earnings represent 13 weeks of operations, whereas the first quarter 1997 historical results represent 12 weeks of operations. In order to allow an appropriate comparison of first quarter results, comparative amounts reflecting this change have been shown as Pro Forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma in the attached statements of earnings. Pro Forma sales for the quarter of $119 million compare to $121 million last year, reflecting some softness in fresh bakeries. Restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). of the regional bakeries into one, combined with some business disruption disruption /dis·rup·tion/ (dis-rup´shun) a morphologic defect resulting from the extrinsic breakdown of, or interference with, a developmental process. during our route franchising efforts in Western Canada
Western Canada, commonly referred to as the West , has affected sales volumes and profitability. It is anticipated that these short term issues will be resolved and result in improved returns by the third quarter. After a special charge of $14.4 million ($9.4 million after tax) the Company recorded a net loss for the quarter of $6.9 million ($0.32 per share). The special charge relates to the costs of centralization cen·tral·ize v. cen·tral·ized, cen·tral·iz·ing, cen·tral·iz·es v.tr. 1. To draw into or toward a center; consolidate. 2. and asset realignment re·a·lign tr.v. re·a·ligned, re·a·lign·ing, re·a·ligns 1. To put back into proper order or alignment. 2. To make new groupings of or working arrangements between. . Net earnings before these unusual items were $2.5 million ($0.12 per share) compared to $7.2 million ($0.34 per share) last year. Excluding the special charge and the 1997 gain on the sale of Brooklyn Brooklyn (br  k`lĭn), borough of New York City (1990 pop. 2,300,664), 71 sq mi (184 sq km), coextensive with Kings co., SE N.Y. Bagel Boys, net earnings of $2.5 million ($0.12 per
share) compare to $3.2 million ($0.15 per share) in 1997.In addressing the restructuring activities, Dr. David H. Lees, President and Chief Executive Officer, stated, "The Company has a very strong balance sheet, with very little debt. These restructuring initiatives will give the Company a solid foundation for future growth." The Company declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. a quarterly dividend of $0.06 per share, payable July July: see month. 2, 1998, to shareholders of record on June June: see month. 15, 1998. Canada Bread Company, Limited, which is 68 percent owned by Maple Leaf Foods Maple Leaf Foods TSX: MFI is a major Canadian food processing company. The company was originally known as Maple Leaf. It was founded in 1927 as a merger of several major Toronto meat packers, most prominently William Davies Co. Inc., is Canada's leading manufacturer and distributor of bakery products, sold both under the Company's own brands and private label brands to the retail and food service industries. -0-
CANADA BREAD COMPANY, LIMITED
FIRST QUARTERLY REPORT 1998
CONSOLIDATED STATEMENTS OF EARNINGS
(in thousands of Canadian dollars, except per share amounts)
(Unaudited)
13 weeks 12 weeks 13 weeks
ended ended
March 28, March 22, Pro-Forma
1998 1997 1997
-----------------------------------
Sales $118,993 $111,557 $120,869
-----------------------------------
Earnings from operations,
before unusual items 3,209 4,400 4,979
Unusual items (14,401) 0 0
-----------------------------------
Earnings (loss)
from operations (11,192) 4,400 4,979
Other income 884 784 784
Gain on sale of business 0 6,300 6,300
-----------------------------------
Earnings (loss)
before interest and taxes (10,308) 11,484 12,063
Interest expense 466 309 341
-----------------------------------
Earnings (loss)
before income taxes (10,774) 11,175 11,722
Income taxes (3,854) 4,014 4,212
-----------------------------------
Earnings (loss)
before minority interest (6,920) 7,161 7,510
Minority interest (4) (4) (5)
-----------------------------------
Net earnings (loss)
for the period ($6,924) $7,157 $7,505
-----------------------------------
Earnings (loss) per share ($0.32) $0.34 $0.35
Dividends per share declared $0.06 $0.06 $0.06
Weighted average number
of shares (millions) 21.4 21.3 21.3
CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION
(in thousands of Canadian dollars)
(Unaudited)
13 weeks 12 weeks
ended ended
March 28, March 22,
1998 1997
------------------------
CASH PROVIDED BY (USED IN):
OPERATING ACTIVITIES
Net earnings (loss) for the period ($6,924) $7,157
Add (deduct) items not affecting cash:
Depreciation 3,914 3,410
Amortization 668 534
Equity earnings from
an associated company (850) (825)
Minority interest 4 4
Gain on sale of business 0 (4,000)
Non-cash amounts included
in unusual items 9,423 0
Changes in non-cash working capital (12,663) (5,180)
------------------------
(6,428) 1,100
------------------------
------------------------
FINANCING ACTIVITIES
Increase in share capital 309 432
Dividends paid (1,283) (1,280)
Dividends paid to minority interest 0 (14)
Increase in (repayment of)
long-term debt 10,254 (17,445)
Repayment of debt to parent company 0 (3,531)
------------------------
9,280 (21,838)
------------------------
------------------------
INVESTING ACTIVITIES
Additions to property
and equipment, net (3,184) (7,789)
Disposal of net assets of businesses 0 29,929
------------------------
(3,184) 22,140
------------------------
------------------------
Net increase (decrease)
in cash for the period (332) 1,402
Bank indebtedness, beginning of period (5,581) (4,791)
------------------------
Bank indebtedness, end of period ($5,913) ($3,389)
------------------------
------------------------
CANADA BREAD COMPANY, LIMITED
FIRST QUARTERLY REPORT 1998
CONSOLIDATED BALANCE SHEETS
As at As at
(In thousands of Canadian dollars) March 28, March 22,
(Unaudited) 1998 1997
---------------------
ASSETS
Current assets:
Accounts receivable $37,761 $41 293
Due from related company 7,246 5,091
Inventories 13,746 15,603
Income taxes recoverable 6,105 0
Prepaid expenses 2,616 3,625
---------------------
67,474 65,612
---------------------
---------------------
Investment in associated company 45,973 43,293
Property and equipment 159,442 133,935
Goodwill 77,644 80,396
---------------------
$350,533 $323,236
---------------------
---------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Bank indebtedness $5,913 $3,389
Accounts payable and accrued charges 57,228 60,893
Dividends payable 1,285 1,283
Income taxes payable 0 1,885
Current portion of long-term debt 197 187
---------------------
64,623 67,637
---------------------
---------------------
Long-term debt 41,126 22,996
Deferred income taxes 20,179 20,766
Minority interest 96 72
Shareholders' equity 224,509 211,765
---------------------
$350,533 $323,236
---------------------
CONTACT: Canada Bread Company, Limited Michael Michael, archangel Michael (mī`kəl) [Heb.,=who is like God?], archangel prominent in Christian, Jewish, and Muslim traditions. In the Bible and early Jewish literature, Michael is one of the angels of God's presence. H. Vels, 416/926-2048 or Canada Bread Company, Limited Larry Lar´ry n. 1. Same as Lorry, or Lorrie. J. Palko, 416/622-2040 |
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