Canbra Foods Ltd. Announces Financial Results.LETHBRIDGE Lethbridge (lĕth`brĭj), city (1991 pop. 60,974), S Alta., Canada, on the Oldman River. Formerly a coal-mining center, Lethbridge is now a commercial and service center for an irrigated farming and ranching district. , Alberta--(BUSINESS WIRE)--May 5, 1998--Canbra Foods(TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :CBF CBF Chesapeake Bay Foundation CBF Cerebral Blood Flow CBF Cooperative Baptist Fellowship CBF Confederação Brasileira de Futebol CBF Core Binding Factor CBF Chicagoland Bicycle Federation CBF Coronary Blood Flow CBF cubic feet .) To Our Shareholders, Throughout our second quarter, we experienced strong product demand for proteins. The quality of protein product lines has received positive response in its various applications. Off-shore markets have found our quality superior to other canola canola see brassicanapus. proteins and have initiated 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. contracts to lock in a continuity of supply. Next quarter, we will be further enhancing these protein product lines. Overall oil sales are up six percent over the same period last year. Our branded product lines continue to gain market share in eastern 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. markets and our US markets are seeing similar results. Our spray oil and 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 sales are the big leaders in the States while Canola Gold, Canola/Olive Blend and Non-hydrogenated margarine are the big winners in our Canadian markets. Before year end, we plan to introduce specialty health margarine to this product category. As we have mentioned in previous reports, our International Sales continue to expand into global markets. In February February: see month. , we announced the opening of a sales office in Japan to service our Asian market interests. We believe having a presence will reflect our commitment to service this market and accelerate our penetration. Initially, two Canbra sales personnel will be assigned as·sign tr.v. as·signed, as·sign·ing, as·signs 1. To set apart for a particular purpose; designate: assigned a day for the inspection. 2. to this international program. We look forward to reporting progress on this strategic move. The work in preparing for the year 2000 is on schedule and we are very confident we will meet or exceed the October October: see month. conversion date of our on-line systems. Along these same lines, we are contacting our suppliers and accounts to inquire in·quire also en·quire v. in·quired, in·quir·ing, in·quires v.intr. 1. To seek information by asking a question: inquired about prices. 2. if they have similar programs underway so as to protect our own information systems and ensure there will be no disruption disruption /dis·rup·tion/ (dis-rup´shun) a morphologic defect resulting from the extrinsic breakdown of, or interference with, a developmental process. to sales or operations. The commitment and support of this project work by our staff is rewarding. Our Greenland Corporation received certification from Canadian Environmental Verifications that our Greenplus hydraulic fluid hydraulic fluid toxic because of its high content of industrial triaryl phosphate. passes performance and non-toxicity tests for water applications. This will serve as a useful tool in gaining acceptance with various accounts we are pursuing on water systems. Additionally, we have worked with the Canadian Coast Guard The Canadian Coast Guard or CCG (Fr. Garde côtière canadienne or GCC) is the coast guard of Canada. It is the civilian federal agency responsible for providing marine search and rescue (SAR) under the auspices of the National Search and Rescue Program, in converting one of their ice breaker breaker: see wave, in oceanography. ship's cranes to our Greenplus products. Once the testing is completed, we look for over 140 ships to convert their hydraulic systems Noun 1. hydraulic system - a mechanism operated by the resistance offered or the pressure transmitted when a liquid is forced through a small opening or tube over to our Greenplus products - a major leap in gaining recognition for our Greenplus products! In the second quarter, we typically face the strongest demands on our financial performance. This year has been no exception. While sales were up sharply, $5 million over the same period last year, our results netted earnings of only $51,000 or $0.02 per share. This compares to a net loss of $2,740,000 or $0.97 per share for the same period last year. The main influence on these results is the deterioration de·te·ri·o·ra·tion n. The process or condition of becoming worse. of cash margins due to higher canola seed prices and lower protein and oil values. These higher canola seed prices have turned both the export markets and eastern crushers to look at lower-priced European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. rapeseed rapeseed the seed of Target rape grown specifically for the seed and its oil. rapeseed meal as oil cake or meal after rapeseed oil is removed this is a high-protein feed supplement used in cattle. for their crushing crushing deaths of newborn animals, especially those in litters, caused by the mother lying on them accidentally. Contributed to by weakness of the neonate or awkward accommodation. A problem in piglets and puppies. Called also overlying. requirements. Additionally, we have seen several eastern crushers shift over to soybeans. We look for higher canola seed prices to hold until the supply and demand numbers are influenced by reduced demand and this year's increased canola acreage. Your Company is in an excellent position for seed supplies for our old crop needs. In the third quarter, we look for strong demand for seedstock and chemicals based on increased canola acreage this year. Additionally, we have built up product inventories to cover our annual spring shutdown shut·down n. A cessation of operations or activity, as at a factory. shutdown Noun the closing of a factory, shop, or other business Verb shut down needs. At this time, we will be introducing new equipment to match our refining refining, any of various processes for separating impurities from crude or semifinished materials. It includes the finer processes of metallurgy, the fractional distillation of petroleum into its commercial products, and the purifying of cane, beet, and maple sugar capabilities with crushing. This work is planned to be completed by the end of May. Once in place, efficiency gains and specialty oils will enhance our product returns. As we face the challenges ahead of us, our employees will continue their efforts to maximize returns and win your continued support. -0-
CANBRA FOODS LTD.
STATEMENT OF CHANGES IN CASH POSITION
(UNAUDITED)
(in thousands)
Second Quarter Six Month Period
-----Ended----- ------Ended------
March 27 March 27 March 27 March 27
1998 1997 1998 1997
--------------------------------------
Operating Activities
Net Earnings (loss) for
the Period $ 51 $(2,740) $ 1,055 $(2,682)
Add (deduct) Non-Cash
Items
Depreciation &
Amortization 1,074 1,002 2,156 1,923
Loss (gain) on Sale
of Capital Assets - (22) (458) (22)
Deferred Income Taxes - (748) - (748)
Write-off of Deferred
Exchange Loss - 1,990 - 1,990
Write-off of Deferred
Finance Charges - 415 - 415
----- ----- ----- -----
Working Capital from
Operations 1,125 (103) 2,753 876
Net Change in Non-Cash
Operating Working
Capital Items (14,434) (12,994) (14,326) (8,817)
------ ------ ------ -----
Cash From (used in)
Operations (13,309) (13,097) (11,573) (7,941)
------ ------ ------ -----
Investing Activities
Purchase of Capital
Assets (1,826) (579) (2,936) (777)
Deferred Market
Development Costs (144) (1,785) (312) (3,049)
Proceeds on Disposal
of Capital Assets - 150 1,004 150
------ ------ ------ ------
(1,970) (2,214) (2,244) (3,676)
------ ------ ------ ------
Financing Activities
Common Share Dividends - (988) (1,412) (988)
Repayment of Long-Term
Debt (884) (13,780) (2,426) (13,953)
Long-Term Debt - 15,000 6,000 15,000
Deferred Finance
Charges 49 - 49 -
Common Share Repurchase (590) - (590) -
------ ------ ------ ------
(1,425) 232 1,621 59
------ ------ ------ ------
Increase (decrease)
in Cash (16,704) (15,079) (12,196) (11,558)
Cash (bank indebtedness),
Beginning of Period 5,951 5,573 1,443 2,052
------ ------ ------ ------
Bank Indebtedness, End
of Period $10,753 $ 9,506 $10,753 $ 9,506
------- ------- ------- -------
------- ------- ------- -------
CANBRA FOODS LTD.
STATEMENT OF INCOME AND RETAINED EARNINGS
(UNAUDITED)
(in thousands except for per share information)
Second Quarter Six Month Period
-----Ended----- ------Ended------
March 27 March 27 March 27 March 27
1998 1997 1998 1997
--------------------------------------
Sales $51,244 $46,267 $99,320 $94,325
------- ------- ------- -------
------- ------- ------- -------
Earnings Before the
Following 1,157 1,879 3,349 2,921
Depreciation and
Amortization 1,074 1,002 2,156 1,923
Gain on Sale of
Capital Assets - - 458 -
----- ----- ----- -----
Earnings Before
Refinancing Costs 83 877 1,651 998
Refinancing Costs - 4,744 - 4,744
----- ----- ----- -----
Earnings (loss) Before
Income Taxes 83 (3,867) 1,651 (3,746)
Income Taxes (recovered) 32 (1,127) 596 (1,064)
----- ----- ----- -----
Net Earnings (loss) for
the Period 51 (2,740) 1,055 (2,682)
----- ----- ----- -----
Retained Earnings,
Beginning of Period 26,927 26,686 27,335 26,628
Common Share Dividends - 988 1,412 988
Common Share Repurchase 533 - 533 -
------ ------ ------ ------
26,394 25,698 25,390 25,640
------ ------ ------ ------
Retained Earnings, End
of Period $26,445 $22,958 $26,445 $22,958
------- ------- ------- -------
------- ------- ------- -------
Net Earnings (loss)
Per Share $ 0.02 $ (0.97) $ 0.38 $ (0.95)
------- ------- ------- -------
------- ------- ------- -------
CONTACT: Canbra Foods Ltd. Larry P. McNamara, 403/329-5500 403/328-7933 (FAX) |
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