Central Canada Foods Corporation: Record Sales Continue in Third Quarter.MISSISSAUGA, Ontario For the First Nation, see . Mississauga (pronounced: [ˌmɪsɪˈsɑgə] listen -- Central Canada Central Canada (sometimes the Central provinces) is a region comprised of Canada's two largest and most populous provinces: Ontario and Quebec. Central Canada, with the four Atlantic provinces, form Eastern Canada. Foods Corporation continues to have the best sales in its history as sales increased by more than 28% to $16.9 million for the nine months ended July July: see month. 31 2004, up from $13.1 million for the same period in 2003, an increase of $3.8 million. Revenues for the first nine months of fiscal 2004 were 97% of sales for the entire 2003 fiscal year, which were $17.3 million. The third quarter continues the Company's trend of record quarterly sales, with revenues of nearly $5.4 million for the three months ended July 31, 2004, as compared to $5.0 million, an increase of 7% over the same period in 2003. These revenues were due to the Company's ongoing successful efforts to generate export sales, primarily in the Asia Pacific market, and customer acceptance of the Company's Choice Pak brand. As part of its plan to expand its sales in this market, the Company has applied for approval to export its pork pork, flesh of swine prepared as food, one of the principal commodities of the meatpacking industry. Pork has long been a staple food in most of the world, although religious taboos have limited its use, especially among Jews and Muslims. products to the People's Republic People's Republic n. A political organization founded and controlled by a national Communist party. of China, which imports approximately 155,000 tonnes of pork, making it one of the world's largest importers of pork. Market penetration Noun 1. market penetration - the extent to which a product is recognized and bought by customers in a particular market penetration - the act of entering into or through something; "the penetration of upper management by women" strategies and raw material price volatility continued from the second quarter, and led to an increase in the cost of meat products and labour from $4,387,000 in the second quarter of 2003 to $4,888,000 in 2004, an increase of $501,000. The cost of meat products and labour rose as a percentage of sales to 91.0% in the current period, from 87.7% for the same period in 2003. Management expects the market for its products to stabilize stabilize See peg. in the fourth quarter and margins to approach historical levels. For the three months ended July 31, 2004, the company's selling, general and administration expenses declined to $424,000 from $478,000 in the second quarter of 2003, a decline of $53,000 or 11%, as a result of external cold storage costs were reduced in line with a drop which declined as inventory levels fell during the quarter. As a percentage of sales, selling, general and administration expenses fell sharply from 9.6 % to 7.9% of sales as management continues to monitor these expenses and gain economies of scale associated with certain fixed costs fixed costs, n.pl the costs that do not change to meet fluctuations in enrollment or in use of services (e.g., salaries, rent, business license fees, and depreciation). . Year to date, the company's selling, general and administration expenses increased to $1,499,000 in the nine months of 2004, an increase of $135,000 or 9.9% from $1,364,000 in the same period in 2003. Selling, general and administration expenses declined, as a percentage of sales, from 10.4% to 8.9% of sales. As a result of increased sales, despite competitive pressure and the costs of external storage, the Company was able to generate a profit of $170,000 for the nine months ended July 31, 2004 or $0.01 per share, a decline of $171,000 from $341,000 or 50% from the same period in previous fiscal year. The company's 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. as at July 31 30, 2004 was $726,000, an increase of $290,000 from $436,000 at year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. , October October: see month. 31, 2003, and was used to finance sales growth. Working capital increased from year-end by $103,000 to $ 772,000 at the end of the second quarter from $669,000, an increase of 15%. This increase was due to the profitability of the Company for the nine months ended July 31, 2004. The Company's financial statements are summarized as follows:
July 31, October 31,
2004 2003
$ $
Consolidated Balance Sheets
Current Assets 2,208,005 2,457,088
Capital Assets 272,485 270,744
Goodwill 554,753 554,753
Other non-current assets 750 15,415
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Total Assets 3,035,993 3,298,000
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Liabilities and Equity
Bank indebtedness 726,236 435,872
Other current liabilities 709488 1,351,934
Non-current liabilities 32,045 111,517
Share capital 1,592,369 1,592,369
Deficit (24,145) (193,692)
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Total Liabilities and Equity 3,035,993 3,298,000
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3 months ended 9 months ended
July 31 July 31
2004 2003 2004 2003
$ $ $ $
Consolidated Statements of
Operations
Sales 5,368,610 5,001,479 16,886,856 13,146,963
Meat products and
labour 4,887,889 3,386,580 15,090,473 11,219,774
Selling, general and
administration 424,365 477,803 1,498,839 1,364,011
Other Costs 29,764 48,381 127,997 174,401
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Income for the period 27,592 82,935 169,547 341,037
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Earnings per share -
basic and fully
diluted $0.00 $0.01 $0.01 $0.02
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3 months ended 9 months ended
July 31 July 31
2004 2003 2004 2003
$ $ $ $
Consolidated Statements
of Cash Flows
Cash (used in) operating
activities (68,270) (38,076) (117,690) 123,868
Cash from financing
activities 87,527 25,773 161,816 (118,381)
Cash (used in)
provided by investing
activities (19,257) 12,343 (44,126) (5,487)
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(Decrease) increase in
cash and cash equivalents - - - -
Cash and cash
equivalents-beginning of
period - - - -
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Cash and cash
equivalents-end of period - - - -
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About Central Canada Foods Corporation Central Canada Foods Corporation is a meat processing company that converts both wholesale cuts from a hog carcass carcass, carcase 1. the body of an animal killed for meat. The head, the legs below the knees and hocks, the tail, the skin and most of the viscera are removed. The kidneys are left in and in most instances the body is split down the middle through the sternum and the vertebral ("primal pri·mal adj. 1. Being first in time; original. 2. Of first or central importance; primary. pri·mal  i·ty n. meat
cuts") and smaller cuts derived from the primal cuts (sub primal
meat cuts) and produces fresh boxed pork and case ready products, hams
and boneless Bone´lessa. 1. Without bones. Adj. 1. boneless - being without a bone or bones; "jellyfish are boneless" picnic and loins loin n. 1. The part of the body of a human or quadruped on either side of the backbone and between the ribs and hips. 2. for shipment to its customers. The Company's products are marketed and sold to 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. national and regional grocery chains. In addition, the Company uses international food brokers to sell its products abroad, primarily into the Asian Pacific market and in so doing, continues to build increased recognition for its "Choice Pak" brand. The Toronto Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this News Release. This News Release may contain certain 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. , which statements can be identified by the use of forward-looking terminology such as "may", "will", "expect", "anticipate", "estimate", "predict", "plans", or "continues" or the negative thereof or any other variations thereon there·on adv. 1. On or upon this, that, or it. 2. Archaic Following that immediately; thereupon. Adv. 1. thereon - on that; "text and commentary thereon" on it, on that or comparable terminology referring to future events or results. Forward looking statements are statements about the future and are inherently uncertain, and the Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous factors, including without limitation, the need for regulatory approval, marketing/manufacturing and partnership/strategic alliance risks, the effect of competition, fluctuations in food commodity markets, uncertainty of the size and existence of a market opportunity for the Company's products, as well as a description of other risks and uncertainties affecting the Company and its business, as contained in news releases and filings with the Canadian 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 , any of which could cause actual results to vary materially from current results or the Company's anticipated future results. Forward-looking statements are based on the beliefs, opinions and expectations of the Company's management at the time they are made, and the Company does not assume any obligation to update its forward-looking statement if those beliefs, opinions or expectations, or other circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or should change. Central Canada Foods Corporation (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension VENTURE:CDF (1) (Central Distribution Frame) A connecting unit (typically a hub) that acts as a central distribution point to all the nodes in a zone or domain. See MDF. .A) |
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