Canbra Foods Ltd. Earnings for First Quarter Ended December 27, 1996.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)--Jan. 22, 1997--Canbra(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--Your Company netted earnings of $58,000 or $0.02 per share on sales of $48,058,000 for the first quarter ended December December: see month. 27, 1996. The totals compares with net earnings of $2,147,000 or $0.73 per share on sales of 444,495,000 for the same period last year. These results reflect the negative impacts we are experiencing due to reduced cash margins. Throughout the first quarter, canola canola see brassicanapus. seed prices have remained firm while oil and protein prices weakened weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. due to
lower Chicago Board of Trade Chicago Board of Trade (CBOT)The second largest futures exchange in the US, and a pioneer in the development of financial futures and options. futures. These unfavorable relationships have forced us to reduce crush crush A combination commodity trade in which soybean futures are purchased and soybean meal or oil futures are sold. Compare reverse crush. rates, re-evaluate and adjust our 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. strategies. In this period, we brought our new deodorizer deodorizer or deodorant, substance used to absorb or eliminate offensive odors. Disinfectants such as hydrogen peroxide, chlorine, and chlorine compounds eliminate odors caused by microorganisms. on stream with initial production above our quality expectations. This unit will offer the required flexibility as we push our refinery to 480MT per day. Our engineering and maintenance teams, along with our operation teams, have done an outstanding job bringing this new system on line. Sales demand has been impacted by sharply lower soybean oil Soy´bean oil n. 1. an oil obtained from the soybean (Glycine max), rich in protein, fats, sterols, and phospholipids, used as a food and in paints and varnishes and in various industrial applications; - prices 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. . We have seen our 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. competition shift some of 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. facilities over to soybean soybean, soya bean, or soy pea, leguminous plant (Glycine max, G. soja, or Soja max) of the family Leguminosae (pulse family), native to tropical and warm temperate regions of Asia, where it has been which puts limited demand on us for canola products. in the U.S., we have experience some reduction in usage by the major users as they swing to lower-priced soybean oils for their generic products. With the strong demand for proteins and the lack of export interest for soybean oils, it appears this trend will continue through the year. Additionally, new soybean 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 capacities being introduced in the States this year are discounting prices to lock in new production. This has depressed prices Depressed price In the context of stocks, stock whose market price is low in comparison to stocks in its sector. to levels where our canola products would require a $0.04 per pound premium over offered soybean oils. The supply and demand factors influencing this market show capacities far exceeding demand. Although our principal business was depressed, there were some bright spots during the first quarter as international sales improved sharply and our Canola Harvest line of products continue to be a hit in the midwestern Mid·west or Middle West A region of the north-central United States around the Great Lakes and the upper Mississippi Valley. It is generally considered to include Ohio, Indiana, Illinois, Michigan, Wisconsin, Minnesota, Iowa, Missouri, Kansas, and United States. It is these markets, coupled with our Greenland direction, that we look to provide the future growth opportunities for our business. Fortunately, the prospects are promising. In the first quarter, we incurred costs associated with the proposed amalgamation amalgamation /amal·ga·ma·tion/ (ah-mal´gah-ma´shun) trituration (3). amalgamation ( of Canbra Foods Ltd. by Hartford Securities Inc. We experienced higher share values from this interest, but incurred significant costs in the documentation of this transaction and the protection of our Corporate interests. Hartford Securities Inc. withdrew their offer on December 17, 1996 and as such, the proposed amalgamation was never finalized See finalization. . We appreciate your input on this transaction. To better position ourselves for future growth, the Company refinanced, early in the second quarter, its existing term-loan debt held by John Hancock Mutual Life Insurance Company with a new $15.0 million term loan from G.E. Capital Canada Equipment Financing Inc. Costs associated with this transaction include a $2.3 million payout pay·out n. 1. The act or an instance of paying out. 2. A percentage of corporate earnings that is paid as dividends to shareholders. premium together with a $2.4 million write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of previously deferred and unamortized exchange losses and financing charges. Along with these same lines, we acquired an additional $14.0 million in term debt that will be used to supplement and accelerate the Company's capital expenditure program over the next three years. Based on Fiscal 1996's strong performance, your Board declared a $0.35 dividend payable January 15, 1997 to shareholders of record as of January 7, 1997. Your Company maintains a strong position in all of our key markets. Future results will continue to illustrate the Company's capabilities from both manufacturing and marketing perspectives. We will continue our programs to improve efficiencies and reduce costs. We count on you and our dedicated employees as we move towards maximizing future opportunities.
CANBRA FOODS LTD.
STATEMENT OF INCOME AND RETAINED EARNINGS
(UNAUDITED)
(in thousands except for per share information)
First Quarter Twelve-Month Period
------Ended------ ------Ended--------
Dec. 27 Dec. 29 Dec. 27 Dec. 29
1996 1995 1996 1995
------- ------- ------- -------
Sales $48,058 $44,495 $195,026 $174,743
------- ------- -------- --------
------- ------- -------- --------
Earnings Before the
Following 1,323 4,388 13,075 12,875
Depreciation and
Amortization 920 831 3,964 3,498
Preferred Share
Dividends (x) - - 27 28
Amalgamation Proposal
Costs 282 - 282 -
------ ------ ------- -------
Earnings Before Income
Taxes 121 3,557 8,802 9,349
Income Taxes 63 1,410 3,231 3,553
------ ------ ------- -------
Net Earnings for the
Period 58 2,147 5,571 5,796
------ ------ ------- -------
Retained Earnings,
Beginning of Period 26,628 20,613 21,240 18,029
Common Share Dividends - 973 - 1,834
Common Share Repurchase - 547 - 751
Warrant Purchase - - 125 -
------ ------ ------- -------
26,628 19,093 21,115 15,444
------ ------ ------- -------
Retained Earnings, End
of Period $26,686 $21,240 $26,686 $21,240
------- ------- ------- -------
------- ------- ------- -------
Net Earnings Per
Share $0.02 $0.73 $1.94 $1.94
------- ------- ------- -------
------- ------- ------- -------
(x) It is now required to report preferred share dividends as
expense items. This change has been applied retroactively.
CANBRA FOODS LTD.
STATEMENT OF CHANGES IN CASH POSITION
(UNAUDITED)
(in thousands)
First Quarter Twelve-Month Period
------Ended------ ------Ended--------
Dec. 27 Dec. 29 Dec. 27 Dec. 29
1996 1995 1996 1995
------- ------- ------- -------
Operating Activities
Net Earnings for the
period $ 58 $2,147 $5,571 $5,796
Add (deduct) Non-Cash
items
Depreciation &
Amortization 920 831 3,964 3,498
Loss (gain) on sale
of capital assets - 54 (248) 142
Deferred Income Taxes - - (109) (416)
Other - - 68 165
------ ------ ------ ------
Working Capital from
Operations 978 3,032 9,246 9,213
Net Change in Non-Cash
Operating Working
Capital Items 4,177 (3,455) 4,338 4,602
------ ------ ------ ------
Cash From (used in)
Operations 5,155 (423) 13,584 13,815
------ ------ ------ ------
Investing Activities
Purchase of Capital
Assets (198) (384) (6,497) (2,897)
Deferred Expenditures (1,264) (64) (1,682) (197)
Proceeds on Disposal
of Capital Assets - 5 371 40
Investments - 34 (77) (38)
------ ------ ------ ------
(1,462) (409) (7,885) (3,092)
------ ------ ------ ------
Financing Activities
Common Share Dividends - (973) - (1,834)
Repayment of Long-
Term Debt (173) (139) (741) (650)
Warrant Purchase - - (125) -
Preferred Share
Redemption - - (123) (4)
Common Share Repurchase - (675) - (922)
Common Share Issue - - 122 -
------ ------ ------ ------
(173) (1,787) (867) (3,438)
------ ------ ------ ------
Increase (decrease)
in Cash 3,520 (2,619) 4,832 7,285
Cash (Bank Indebtedness)
Beginning of Period 2,052 3,359 740 (6,545)
------ ------ ------ ------
Cash, End of Period $5,572 $ 740 $5,572 $ 740
------ ------ ------ ------
------ ------ ------ ------
CONTACT: Canbra Foods Ltd. Larry P. McNamara, 403/ 329-5500 |
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