FPI Limited - Report on First Quarter Results (Public Holding Company of Fishery Products International Limited).ST. JOHN'S, Newfoundland--(BUSINESS WIRE)--May 6, 1996-- FPI FPI Formal Public Identifier FPI Front Populaire Ivoirien (French: Ivorian Popular Front, Icory Coast) FPI Federal Prison Industries, Inc. FPI Front Pembela Islam (Indonesian: Islamic Defenders Front) LIMITED (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). , ME:FPL FPL feline panleukopenia. ) Financial Results Mr. Victor L. Young, Chairman and Chief Executive Officer of FPI Limited ("FPI") reported the results of the Company's first quarter of 1996. He noted that FPI earned net income of $1.1 million (7 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. ) during the first quarter of 1996 on sales of $162.8 million. This compares with net income of $3.0 million (19 cents per share) during the first quarter of 1995 on sales of $159.8 million. Mr. Young reported that the Company's balance sheet at March 30, 1996, reflected: (i) working capital of $93.0 million; (ii) a current ratio of 2.0:1; (iii) long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. of $27.7 million, representing 16.1 percent of the Company's capital structure; and (iv) 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. of $144.2 million ($8.77 per share). Operating Results Mr. Young reported that sales in the first quarter were up 1.9 percent from the first quarter of 1995, reflecting marginal (jargon) marginal - 1. Extremely small. "A marginal increase in core can decrease GC time drastically." In everyday terms, this means that it is a lot easier to clean off your desk if you have a spare place to put some of the junk while you sort through it. 2. sales increases in both the FPI and Clouston Divisions. Sales in the FPI Division totalled $82.4 million while sales in the Clouston Division totalled $80.4 million. He reported that the FPI Division recorded a successful harvest (tool, networking) Harvest - A highly scalable, customisable system for discovering resources on the Internet. Version: 1.3. http://tardis.ed.ac.uk/harvest/. on redfish redfish or rosefish or ocean perch Commercially important food fish (Sebastes marinus) of the scorpion fish family (Scorpaenidae), found in the Atlantic along European and North American coasts. , coldwater Coldwater is the name of some places in North America:
adj. Of or relating to the estimated value that is added to a product or material at each stage of its manufacture or distribution: products. Steady sales in the Clouston Division along with increased commission income and improved trading margins contributed to a favourable performance from seafood seafood Edible aquatic animals excluding mammals, but including both freshwater and ocean creatures. Seafood includes bony and cartilaginous fishes, crustaceans, mollusks, edible jellyfish, sea turtles, frogs, sea urchins, and sea cucumbers. trading. He also noted that gross profit margins Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. , while below the first quarter of last year, were up from the levels recorded in the last three quarters of 1995. In addition, inventories of both raw material and finished product, were reduced to more normal levels during the quarter, strengthening the Company's balance sheet. Mr. Young reported that FPI is well along in the consolidation of its US value-added processing operations. During the first quarter, the Boston Boston, town, England Boston, town (1991 pop. 26,495), E central England, on the Witham River. Boston's fame as a port dates from the 13th cent., when it was a Hanseatic port trading wool and wine. Having recovered from a decline in the 18th and 19th cent. plant was sold for $4.7 million, resulting in a gain of $2.3 million. This was offset by 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). costs of $1.9 million related to the US project and $0.4 million related to corporate reorganization The process of carrying out, through agreements and legal proceedings, a business plan for winding up the affairs of, or foreclosing a mortgage upon, the property of a corporation that has become insolvent. . Capital expenditures on the expansion and upgrading of the Danvers Danvers, town (1990 pop. 24,174), Essex co., NE Mass.; settled in the 1630s, set off from Salem 1752, inc. as a town 1757. Danvers has light manufacturing, including electronic equipment, chemicals, machinery, and apparel. value-added processing plant totalled $1.1 million in the quarter. The consolidation project remains on target for completion in the third quarter of 1996. Overall, capital expenditures during the quarter totalled $2.5 million compared with $5.2 million in the first quarter of 1995. 1996 Strategy Mr. Young noted that FPI has in place a "profitability strategy" for 1996 which encompasses: (i) increasing sales and improving balance sheet strength; (ii) consolidating processing operations in the USA; (iii) improving trading margins in the Clouston Division; (iv) lowering the costs of internationally procured raw material; (v) building on the success of coldwater shrimp and scallops; (vi) improving performance in Atlantic snow crab; (vii) improving Newfoundland Newfoundland, breed of dog Newfoundland, breed of massive, powerful working dog developed in Newfoundland, probably in the 17th cent., and later perfected in England. It stands from 25 to 28 in. (63.5–71. groundfish margins; (viii) building market share through new product initiatives; and (ix) pursuing growth opportunities. He reported that FPI is moving forward in 1996 in a focused manner, on track with its profitability strategy. -0-
FPI Limited Thirteen Weeks Ended
Changes in Consolidated Financial Position (unaudited)
March 30, April 1,
(thousands of dollars) 1996 1995
Operating activities: Net income 1,075 3,046 Add (deduct) items not affecting working capital:
Depreciation and amortization 2,057 2,356
Gain on disposal of property,
plant and equipment (2,321) 19
Restructuring costs 2,300
Cash generated from operations
before the undernoted 3,111 5,421
Changes in non-cash working capital
balances related to operations:
Accounts receivable (100) (4,488)
Inventory 16,414 (11,149)
Prepaid expenses (645) (1,869)
Accounts payable and
accrued liabilities 1,495 1,484
Cash provided by
(applied to) operations 20,275 (10,601)
Investing activities:
Additions to property,
plant and equipment (2,556) (5,203)
Proceeds on disposal of property,
plant and equipment 4,702 1,480
Notes receivable on sale of property,
plant and equipment 478 496
Net change in other assets (571) (247)
Changes in accounts payable related
to capital additions 1,236
Cash provided by (applied to)
investing activities 2,053 (2,238)
Financing activities:
Issue of long-term debt
Repayment of long-term debt (2,597) (2,359)
Net proceeds from issue of
common shares 57 22
Cash applied to financing
activities (2,540) (2,337)
Increase (decrease) in cash position
during the period 19,788 (15,176)
Cash position, beginning of period (62,970) (49,751) CASH POSITION, END OF PERIOD (43,182) (64,927) Certain amounts on the financial statements for 1995 have been reclassified to conform with the presentation adopted for 1996.
FPI Limited
Consolidated Balance Sheet
(unaudited)
March 30, April 1,
(thousands of dollars) 1996 1995
ASSETS
Current assets 183,850 209,647
Property, plant and equipment 64,727 76,806
Other assets 14,216 11,906
262,793 298,359
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities 90,893 118,319
Long-term debt 27,689 29,776
Shareholders' equity 144,211 150,264
262,793 298,359
Consolidated Operations Thirteen Weeks Ended
(unaudited)
March 30, April 1,
(thousands of dollars) 1996 1995
SALES 162,793 159,751
Cost of goods sold 148,136 141,166
Gross profit 14,657 18,585
Commission income 676 373
15,333 18,958
Administrative and marketing expenses 10,111 10,474
Depreciation and amortization 2,057 2,356
Interest on bank indebtedness 709 808
Interest on long-term debt 824 865
Provision for profit sharing 140 447
13,841 14,950
Income before income taxes 1,492 4,008 Income taxes 417 962 NET INCOME 1,075 3,046 PER COMMON SHARE Net income 0.07 0.19 Average common shares outstanding (thousands) 16,431 16,421 CONTACT: FPI Limited Victor L. Young, 709/570-0191 709/570-0209 (Fax) |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion