Hibernia Foods plc Announces Fiscal 2003 Fourth-Quarter and Full-Year Financial Results.Business Editors DUBLIN Dublin, city, Republic of Ireland Dublin, Irish Baile Átha Cliath, county borough (1991 pop. 915,516), Leinster, capital of the Republic of Ireland, on Dublin Bay at the mouth of the Liffey River. , Ireland--(BUSINESS WIRE)--Aug. 14, 2003 Hibernia Hibernia: see Ireland. Foods plc (Nasdaq:HIBNY) -- EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 5.1 million ($5.6 million) Reduction in Fourth Quarter Loss Before One Time Charges -- 70% Reduction in Second Half of Fiscal Year Loss per Share (Before One Time Charges) to EUR 0.10 ($0.11) compared with EUR 0.33 ($0.36) for same period in prior year -- Ready meals division shows year over year EUR 2.7 million improvement in operating profits Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. Hibernia Foods plc (Nasdaq:HIBNY) today announced its unaudited financial results for the fiscal 2003 fourth quarter and full year periods ended March 31, 2003. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the fourth quarter of fiscal 2003 were EUR 44.6 million ($48.1 million) compared to EUR 47.0 million ($50.8 million) for same period in the prior fiscal year. However, this 5% decrease was solely attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the appreciation of the Euro against Pounds Sterling during the year, compared with the same period in the prior year. Underlying revenues, denominated in the Company's operational currency, Pounds Sterling, increased by 3% in the period compared with the same period in the prior year. One-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. charges incurred during the fourth quarter of fiscal 2003 amounted to EUR 4.7 million ($5.1 million) and comprised product line exit costs and fixed asset impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. totalling EUR 3.1 million ($3.4 million) recognised within cost of sales, and EUR 1.6 million ($1.7 million) relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc employee termination The point where a line, channel or circuit ends. See SCSI termination and hybrid. costs associated with the Bristol Bristol, cities, United States Bristol. 1 Industrial city (1990 pop. 60,640), Hartford co., central Conn., on the Pequabuck River; settled 1727, inc. 1785. Its clock-making industry dates from 1790. site closure and other 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). activities completed during the fourth quarter of fiscal 2003. Excluding the impact of one-time charges, gross profit for the quarter as a percentage of net sales was 17.5% compared with 15.1% for the same period in fiscal 2002, representing an increase in gross margin of 2.4 percentage points. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. amounted to EUR 10.7 million ($11.5 million) or 24% of net sales, compared with EUR 13.0 million ($14.0 million) or 28% of net sales in fiscal 2002. The reduction in operating expenses as a percentage of sales was attributable to lower sales and marketing expenditures and lower administration costs. Excluding one-time charges, the operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. for the quarter was EUR 2.9 million ($3.1 million), compared with EUR 5.9 million ($6.4 million) in the same quarter in the prior year, representing an improvement of EUR 2.9 million ($3.1 million). Interest and other charges amounted to EUR 1.3 million ($1.5 million) compared with EUR 1.5 million ($1.7 million) in fiscal 2002. An unrealised foreign exchange gain of EUR 1.0 million ($1.1 million) resulted from the translation of non-Euro denominated borrowings and loan notes at March 31, 2003 and was attributable to the strengthening of the Euro during the period. This gain compares to an unrealised foreign exchange gain of EUR 82,000 ($89,000) recognised in same period in the prior year. Excluding one-time charges, the loss for the quarter was EUR 3.2 million ($3.4 million) compared with EUR 8.3 million ($9.0 million) for same period in the prior year, representing an improvement of EUR 5.1 million ($5.5 million) or 62%. Excluding one time charges, the loss per share for the quarter was EUR 0.13 ($0.14) compared with EUR 0.36 ($0.39) in the same period in the prior year, representing an improvement of EUR 0.23 ($0.25) per share, or 64%. Commenting on the results, Oliver Ol·i·ver , Joseph Known as "King Oliver." 1885?-1938. American jazz musician and composer who had a great influence on the style of Louis Armstrong. His Creole Jazz Band was the first Black group to make jazz recordings. Murphy, Chairman and Chief Executive Officer, said: "In fiscal 2003 our focus was the post acquisition integration of the Sara Lee
Sara Lee Corporation (NYSE: SLE) is a global consumer-goods company based in Downers Grove, Illinois, USA. branded dessert business with our private label frozen desserts business and the turnaround Turnaround A situation where a company that has had poor performance for an extended period of time experiences a positive reversal. Notes: A speculator may profit from a turnaround if he or she accurately anticipates the improvement of a poorly performing company. of the ready meals division. Both of these strategies were successfully executed executed 1) adj. to have been completed. (Example: "it is an executed contract") 2) v. to have completed or fully performed. (Example: "he executed all the promises made in the contract") 3) v. . These actions have contributed to the significant improvement in our financial performance which was particularly evident in quarter four and the second half of the fiscal. Quarter four of fiscal 2003 illustrates the progress we have made by combining modest revenue growth with improvements in gross margin and lower operating expenses to deliver a EUR 3.0 million reduction in operating losses compared with the same quarter last year. When combined with the third quarter, the net loss per share for the second half of fiscal 2003 of EUR 0.10 represents a significant reduction from the net loss per share of EUR 0.33 in the second half of fiscal 2002. This improvement in performance is very encouraging and represents a sound basis for fiscal 2004 in which we expect revenue growth and continued improvement in operating profits. The ready meals business has delivered a EUR 2.7 million improvement in operating profits, principally due to the successful turnaround in the private label ready meals business and also due to a successfully executed marketing campaign for the Mr Brains brand. The successful listing of new private label product lines with Tesco, Asda, Safeway Safeway is a brand name used by several companies around the world: Supermarket chains
"I am also pleased to report that the closure of the Bristol site is progressing well. Current estimates of annualised savings as a result of the transfer of production of Entenmann's Entenmann's is a bakery brand now owned by Canadian company George Weston Limited. It was started by a German immigrant in Brooklyn in 1898. Their cakes and snacks are distributed in many grocery and convenience store locations in the United States. branded cakes and Mr Brains branded 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. faggotts to other Hibernia sites are in line with guidance given at the time of the announcement of between EUR 5 million - EUR 8 million per annum Per annum Yearly. and we expect these savings to accrue To increase; to augment; to come to by way of increase; to be added as an increase, profit, or damage. Acquired; falling due; made or executed; matured; occurred; received; vested; was created; was incurred. from the start of the third quarter in the current fiscal year." Colm Delves Delves is a village in County Durham, in England. It is situated a short distance to the south of Consett. , Chief Financial Officer, added: "In addition to the significant progress visible in the operating performance of the business in fiscal 2003, we have been actively working over recent months on a number of financial transactions designed to strengthen the balance sheet. We anticipate that we will be in a position to announce the completion of this process in September September: see month. and believe that these initiatives will fundamentally improve the capital structure of the Group." Oliver Murphy continued by stating: "On foot of the completion of our financing and announcement of our fiscal 2004 first quarter results in the coming weeks, we look forward to hosting an investor conference call in the near future to comment further on the progress in trading and the positive impact of our financing initiatives." Oliver Murphy concluded by commenting on the first quarter of fiscal 2004 and said: "Revenues for quarter one are expected to show high single digit A single character in a numbering system. In decimal, digits are 0 through 9. In binary, digits are 0 and 1. digit - An employee of Digital Equipment Corporation. See also VAX, VMS, PDP-10, TOPS-10, DEChead, double DECkers, field circus. underlying growth and we expect considerable improvement in our profitability, before one time charges, when compared to the same quarter in fiscal 2003 which showed a loss of EUR 0.13 ($0.14). Net sales for fiscal 2003 were EUR 200.6 million ($216.6 million) compared to fiscal 2002's sales of EUR 201.3 million ($217.4 million). However, this 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. decrease was solely attributable to the appreciation of the Euro against Pounds Sterling during the year, compared with fiscal 2002. Underlying revenues, denominated in the Company's operational currency, Pounds Sterling, increased by 4% in the year compared with fiscal 2002. Excluding the impact of one-time charges, gross profit as a percentage of net sales was 17.1% in fiscal 2003 compared with 17.3% in fiscal 2002. Operating expenses amounted to EUR 41.0 million ($44.2 million) or 20% of net sales, compared with EUR 42.6 million ($46.0 million) or 21% of net sales in fiscal 2002. Excluding one-time charges, the operating loss for the year was EUR 6.7 million ($7.3 million), compared with EUR 7.8 million ($8.4 million) in the prior year, representing an improvement of EUR 1.1 million ($1.2 million). The total charge relating to the Bristol site closure and restructuring activities is estimated to amount to EUR 9.5 million ($10.3 million), EUR 4.7 million ($5.1 million) of which was recognised during the fourth quarter of fiscal 2003 and the balance will be recognised in the first half of fiscal 2004. This estimate, which represents EUR 0.38 ($0.41) per share, is at the lower end of the range quoted on March 28, 2003 on the announcement of the Bristol site closure. Interest and other charges amounted to EUR 5.2 million ($5.6 million) compared with EUR 5.8 million ($6.2 million) in fiscal 2002, representing a savings of 10%, principally as a result of reduction in UK base interest rates. An unrealised foreign exchange gain of EUR 1.6 million ($1.7 million) resulted from the translation of non-Euro denominated borrowings and loan notes at March 31, 2003 and was attributable to the strengthening of the Euro during the fiscal year. This gain compares to an unrealised foreign exchange loss of EUR 205,000 ($221,000) recognised in fiscal 2002. Excluding one-time charges, the loss in fiscal 2003 was EUR 10.3 million ($11.1 million) compared with EUR 14.8 million ($15.9 million) for fiscal 2002, representing an improvement of EUR 4.5 million ($4.9 million) or 30% compared with fiscal 2002. Excluding one time charges, the loss per share in fiscal 2003 was EUR 0.41 ($0.45) compared with EUR 0.68 ($0.73) in fiscal 2002, representing an improvement of EUR 0.27 ($0.28) per share, or 40%. The Company intends to file its Annual Report on Form 20-F for its 2003 fiscal year shortly which will contain audited financial statements. The information for these periods is unaudited. Subject to 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. adjustments and normal recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. accruals Accruals Accounts on a balance sheet that represent liabilities and non-cash-based assets used in accrual-based accounting. These accounts include, among many others, accounts payable, accounts receivable, goodwill, future tax liability and future interest expense. , in the opinion of the Company it presents a fair statement of the results of operations of the Company and its subsidiaries for the period indicated. This document, as well as some press releases and oral statements made by our management in their presentations about Hibernia, contains "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. " regarding Hibernia's future performance and financial condition. "Forward-looking statements" are defined in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 and include statements which give management's views on the future of Hibernia, the industry in which it operates and the economic conditions surrounding sur·round tr.v. sur·round·ed, sur·round·ing, sur·rounds 1. To extend on all sides of simultaneously; encircle. 2. To enclose or confine on all sides so as to bar escape or outside communication. n. it. These forward-looking statements are based on our management's current views, projections and assumptions concerning the future, and include words such as "expects," "anticipates," "intends," "estimates," "believes" and similar expressions. No one should construe construe v. to determine the meaning of the words of a written document, statute or legal decision, based upon rules of legal interpretation as well as normal meanings. such statements as guaranties of the future performance of Hibernia. All such statements are inherently subject to risks, uncertainties and other important factors, which are beyond Hibernia's control, which could cause actual results to differ materially from those expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. in the statements. Among those risks and uncertainties are the matters described in "Risk Factors" in Hibernia's Form 20-F for its fiscal year ended March 31, 2002, as updated from time to time in its subsequent filings with the Securities and Exchange Commission. These forward-looking statements include, but are not limited to, projections of sales, earnings and volume growth, share prices, competitive conditions, purchasing decisions of our customers, production costs, currency valuations, achieving cost savings and working capital, debt reduction programs, success of acquisitions, innovations, and supply chain and overhead initiatives. Hibernia specifically disclaims any obligation to update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise. Hibernia Foods plc is a leading European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. manufacturer of branded cakes, branded and private-label ready-meals and branded and private-label frozen desserts, headquartered in Dublin, Ireland Ireland, Irish Eire (âr`ə) [to it are related the poetic Erin and perhaps the Latin Hibernia], island, 32,598 sq mi (84,429 sq km), second largest of the British Isles. , with significant manufacturing facilities in the United Kingdom. It is the exclusive European license holder for Entenmann's branded sweet-baked cakes throughout all of geographical ge·o·graph·ic also ge·o·graph·i·cal adj. 1. Of or relating to geography. 2. Concerning the topography of a specific region. ge Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). , representing 52
countries and a population of over 700 million people and is the
exclusive UK and Ireland license holder for Sara Lee branded frozen
desserts.
-TABLES FOLLOW-
HIBERNIA FOODS PLC AND SUBSIDIARIES
Summary Consolidated Statements
of Operations for the
Quarter Ended March 31,
2003(1) 2003 2002
----------------------------------------------------------------------
US$000s EUR000s EUR000s
----------------------------------------------------------------------
Product Revenue 48,123 44,558 47,001
----------------------------------------------------------------------
Cost of sales-continuing operations (39,693)(36,753)(39,927)
----------------------------------------------------------------------
One time charge:
Cost of sale-product line exit costs
and fixed asset impairment (3,333) (3,086) -
----------------------------------------------------------------------
Gross Profit 5,097 4,719 7,074
----------------------------------------------------------------------
Operating Expenses (11,538)(10,683)(12,957)
----------------------------------------------------------------------
One time charge:
Restructuring charges (1,731) (1,603) -
----------------------------------------------------------------------
Operating Loss (8,172) (7,567) (5,883)
----------------------------------------------------------------------
Interest and Other charges (1,393) (1,290) (1,526)
----------------------------------------------------------------------
Foreign exchange gain/(loss) 1,057 979 82
----------------------------------------------------------------------
Beneficial conversion feature of warrants - - (999)
----------------------------------------------------------------------
Net Loss (8,508) (7,878) (8,326)
----------------------------------------------------------------------
Loss (Adjusted for one time charges)(2) (3,444) (3,189) (8,326)
----------------------------------------------------------------------
Profit/(Loss) per Share Data for the
Quarter Ended March 31,
2003(1) 2003 2002
----------------------------------------------------------------------
US$ EUR EUR
----------------------------------------------------------------------
Basic Profit/(Loss) per Share (0.34) (0.31) (0.36)
----------------------------------------------------------------------
Basic Profit/(Loss) per Share
(Adjusted for one time charges)(3) (0.14) (0.13) (0.36)
----------------------------------------------------------------------
Ordinary Shares Outstanding ('000s) 25,068 25,068 23,103
----------------------------------------------------------------------
HIBERNIA FOODS PLC AND SUBSIDIARIES
Summary Consolidated
Balance Sheets as of March 31,
2003(1) 2003 2002
----------------------------------------------------------------------
US$000s EUR000s EUR000s
----------------------------------------------------------------------
ASSETS
----------------------------------------------------------------------
Cash and equivalents 5 5 434
----------------------------------------------------------------------
Trade receivables 31,044 28,744 28,594
----------------------------------------------------------------------
Inventories 28,271 26,177 31,664
----------------------------------------------------------------------
Prepayments and other receivables 5,238 4,850 6,420
----------------------------------------------------------------------
Total Current Assets 64,558 59,776 67,112
----------------------------------------------------------------------
Property, Plant & Equipment 53,857 49,868 63,652
----------------------------------------------------------------------
Intangible assets 8,068 7,470 8,297
----------------------------------------------------------------------
Total Assets 126,483 117,114 139,061
----------------------------------------------------------------------
LIABILITIES AND EQUITY
----------------------------------------------------------------------
Accounts payable 34,285 31,745 30,268
----------------------------------------------------------------------
Accrued liabilities 29,096 26,941 30,371
----------------------------------------------------------------------
Short-term borrowings 34,129 31,601 26,685
----------------------------------------------------------------------
Total Current Liabilities 97,510 90,287 87,324
----------------------------------------------------------------------
Capital Lease obligations (excl.
current) 348 322 951
----------------------------------------------------------------------
Convertible Loan Notes 15,188 14,063 15,534
----------------------------------------------------------------------
Long Term Borrowings 11,051 10,233 21,405
----------------------------------------------------------------------
Total Liabilities 124,097 114,905 125,214
----------------------------------------------------------------------
Minority interests 154 143 143
----------------------------------------------------------------------
Ordinary Shares issued with Guarantee 3,382 3,132 3,132
----------------------------------------------------------------------
Shareholders' Equity (1,150) (1,066) 10,572
----------------------------------------------------------------------
Total Liabilities and shareholders'
equity 126,483 117,114 139,061
----------------------------------------------------------------------
HIBERNIA FOODS PLC AND SUBSIDIARIES
Summary Consolidated Statements
of Operations for the
Twelve Month Period Ended March 31,
2003(1) 2003 2002
----------------------------------------------------------------------
US$000s EUR000s EUR000s
----------------------------------------------------------------------
Product Revenue 216,603 200,558 201,301
----------------------------------------------------------------------
Cost of sales-continuing operations (179,617)(166,312)(166,449)
----------------------------------------------------------------------
One time charge:
Cost of sale-product line exit costs and
fixed asset impairment (3,333) (3,086) -
----------------------------------------------------------------------
Gross Profit 33,653 31,160 34,852
----------------------------------------------------------------------
Operating Expenses (44,234) (40,957) (42,633)
----------------------------------------------------------------------
One time charge:
Restructuring charge (1,731) (1,603) -
----------------------------------------------------------------------
Operating Loss (12,312) (11,400) (7,781)
----------------------------------------------------------------------
Interest and Other charges (5,590) (5,176) (5,777)
----------------------------------------------------------------------
Foreign exchange gain/(loss) 1,743 1,614 (205)
----------------------------------------------------------------------
Beneficial conversion feature of warrants - - (999)
----------------------------------------------------------------------
Net Loss (16,159) (14,962) (14,762)
----------------------------------------------------------------------
Loss (Adjusted for one time charges) (4) (11,095) (10,273) (14,762)
----------------------------------------------------------------------
Loss per Share Data for the
Twelve Month Period Ended March 31,
2003(1) 2003 2002
----------------------------------------------------------------------
US$ EUR EUR
----------------------------------------------------------------------
Basic (Loss) per Share (0.65) (0.60) (0.68)
----------------------------------------------------------------------
Basic Profit/(Loss) per Share (Adjusted for one
time charges) (5) (0.45) (0.41) (0.68)
----------------------------------------------------------------------
Ordinary Shares Outstanding ('000s) 24,944 24,944 21,872
----------------------------------------------------------------------
(1) The summary financial information above is expressed in US Dollars, solely for convenience, at the US Dollar rate of exchange against the Euro at March 31, 2003, of EUR 1.00 = US $1.08 (2) Fourth quarter loss adjusted for one-time charges represented net loss for the period of EUR 7,878,000 adjusted for one-time charges which amounted to EUR 4,689,000 comprising product line exit costs of EUR 1,006,000, a fixed asset impairment charge of EUR 2,080,000 and a restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. of EUR 1,603,000. (3) Fourth quarter Basic Loss per Share adjusted for one-time charges represented net loss per share for the period of EUR 0.31 adjusted for one-time charges which amounted to EUR 0.18 per share. (4) Fiscal 2003 loss adjusted for one-time charges represented net loss for the year of EUR 14,962,000 adjusted for one-time charges which amounted to EUR 4,689,000 comprising product line exit costs of EUR 1,006,000, a fixed asset impairment charge of EUR 2,080,000 and a restructuring charge of EUR 1,603,000. (5) Fiscal 2003 Basic Loss per Share adjusted for one-time charges represented net loss per share for the period of EUR 0.60 adjusted for one-time charges which amounted to EUR 0.19 per share. |
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