Hibernia Foods plc Announces Fiscal 2003 Third-quarter and Nine-months Financial Results; Underlying Revenues Return to Growth; 11% Year Over Year Improvement in QIII Net Profit.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)--Feb. 18, 2003 Anticipated Improvement in Financial Trends Continuing William Blair
tr.v. ap·point·ed, ap·point·ing, ap·points 1. To select or designate to fill an office or a position: appointed her the chief operating officer of the company. 2. Company's Investment Banker Investment Banker A person representing a financial institution that is in the business of raising capital for corporations and municipalities. Notes: An investment banker may not accept deposits or make commercial loans. Hibernia Hibernia: see Ireland. Foods plc (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :HIBNY) today announced its unaudited financial results for the fiscal 2003 third quarter and nine month periods ended December December: see month. 31, 2002. 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 third quarter of fiscal 2003 were 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. 62.1 million ($65.1 million) compared with EUR 62.6 million ($65.6 million) for the same period in fiscal 2002, representing a decrease of just less than one percent. However, this decrease was solely attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to a 2.6% appreciation of the Euro against Pounds Sterling during the quarter, compared with the same quarter in fiscal 2002. Underlying revenues, denominated in the Company's operational currency, Pounds Sterling, increased by 2% in the third quarter compared with the comparable quarter in fiscal 2002. Gross profit for the quarter was EUR 13.1 million ($13.7 million) compared with EUR 13.6 million ($14.3 million) for the same quarter in fiscal 2002, representing a decrease of EUR 562,000 ($589,000). Gross profit as a percentage of net sales amounted to 21.0% in the third quarter compared with 21.8% in the same quarter in fiscal 2002, representing a decline in gross profit percentage of 0.8 percentage points. 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. reduction in gross profit percentage was due to higher cost of sales, including 60% higher insurance costs and higher input costs relating mainly to the cost of certain ingredients. Specifically, a 32% increase in the price of cocoa-based ingredients contributed to the reduction in gross margins for the quarter. In order to address this, Company researchers have been actively working on recipe compositions to minimise Verb 1. minimise - represent as less significant or important downplay, understate, minimize inform - impart knowledge of some fact, state or affairs, or event to; "I informed him of his rights" the impact of these price increases. The Company's 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. were in line with those reported for the same period in fiscal 2002. Operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. for the quarter amounted to EUR 1.5 million ($1.6 million) compared with EUR 2.3 million ($2.4 million) for the same quarter in fiscal 2002. Interest expense for the quarter was almost half the level of the comparable quarter in fiscal 2002, and this was principally due to a positive unrealised exchange gain from the quarter end translation of the Company's convertible loan notes. Net profit for the quarter amounted to EUR 652,000 ($683,000) or EUR 0.03 ($0.03) per share compared with EUR 587,000 ($615,000) or EUR 0.03 ($0.03) per share for the same quarter in fiscal 2002. 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: "Overall I am extremely pleased with the progress we made in our third quarter as both revenue growth and profitability returned. Our underlying revenues grew by 2% in the quarter compared with the comparable period in the prior year and net profits also improved by 11% year over year. I am also encouraged by our expectation that this rate of revenue growth will accelerate in the fourth quarter over the same period last year. "I am particularly encouraged by the progress we have made in our private label ready meals division, which has led to an increase in quarter over quarter gross margins of almost 10 percentage points. This improvement in gross margins has been derived de·rive v. de·rived, de·riv·ing, de·rives v.tr. 1. To obtain or receive from a source. 2. from a sound commercial strategy, which has been 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. over the last six months, and, together with greater purchasing and factory efficiencies, has contributed to a very satisfactory result for the quarter for this division. We expect a trend of increasing revenues underpinned by this strong recovery in gross margin to continue for the current quarter and into the next fiscal year. "Overall, our business for the fiscal fourth quarter is off to a good start and I remain confident that we will show significant year on year top line and operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: growth this quarter. Whilst we may not ultimately achieve our internal target of double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. top line growth for the quarter, largely due to the prevailing economic climate, I am satisfied that our earnings target, as communicated last November November: see month. , of a net loss per share for the second half of our fiscal year of at least half the level reported for the comparable period in fiscal 2002, remains firmly on track. "In addition, we are currently reviewing our manufacturing cost base and site configuration and we expect that significant savings are likely to arise as we implement a strategy of site re-alignment over the coming months. I expect to be in a position to provide more detailed earnings objectives for fiscal 2004 and expand further on these developments, later this quarter". Net sales for the nine-month period to December 31, 2002 were EUR 156 million ($163.5 million) compared with EUR 154.3 million ($161.8 million) for the same period in fiscal 2002, representing an increase of one percent. Gross profit as a percentage of net sales amounted to 17% in the nine-month period compared with 18% in the same period in fiscal 2002, representing a decline in gross profit percentage of 1.0 percentage point. 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 nine-month period amounted to EUR 3.8 million ($4.0 million) compared with EUR 1.9 million ($2.0 million) for the same period in fiscal 2002. Net loss per share for the nine-month period amounted to EUR 0.28 ($0.30) per share compared with a net loss per share of EUR 0.30 ($0.31) per share for the same period in fiscal 2002. The Company also announced that it had appointed William Blair & Company, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , headquartered in Chicago Chicago, city, United States Chicago (shĭkä`gō, shĭkô`gō), city (1990 pop. 2,783,726), seat of Cook co., NE Ill., on Lake Michigan; inc. 1837. , Illinois Illinois, river, United States Illinois, river, 273 mi (439 km) long, formed by the confluence of the Des Plaines and Kankakee rivers, NE Ill., and flowing SW to the Mississippi at Grafton, Ill. It is an important commercial and recreational waterway. , with a strong international presence, including London London, city, Canada London, city (1991 pop. 303,165), SE Ont., Canada, on the Thames River. The site was chosen in 1792 by Governor Simcoe to be the capital of Upper Canada, but York was made capital instead. London was settled in 1826. , as its investment banker. William Blair is a full service investment bank exclusively focused on middle market growth companies "We are delighted to be working with William Blair", said Oliver Murphy, "as we feel their profile is an appropriate fit for us at this stage in our growth strategy. Initially William Blair will be focused on assisting us with tailoring our capital structure to ensure that we are optimally positioned to take the Company to the next stage." The Company will host a conference call today at 11:00 a.m. Eastern Time. To participate, please dial 877-780-2271 toll free or 973-582-2737 toll free (International) approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. five to 10 minutes before the conference call is scheduled to begin and tell the operator you wish to join the Hibernia Foods third-quarter earnings conference call. We hope you will be able to join us for the call, but if you are unable to participate at that time, you can listen to a replay of the teleconference, which will be available through February February: see month. 25. The number to hear the replay is 877-519-4471 toll free or 973-341-3080 toll free (International). The access code for the replay is 3725495. The call also will be webcast through a link on the Investor Relations Investor relations The process by which the corporation communicates with its investors. page of the Company's website, www.hiberniafoods.ie. Participants should click on the "Investor Relations" icon and follow the links to the webcast. The webcast also will be available through various other websites that offer links to corporate webcasts. 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 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 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
Sara Lee Corporation (NYSE: SLE) is a global consumer-goods company based in Downers Grove, Illinois, USA. branded frozen desserts. -TABLES FOLLOW-
HIBERNIA FOODS PLC AND SUBSIDIARIES
Summary Consolidated Statements
of Operations for the
Quarter Ended December 31,
----------------------------------------------------------------------
2002(1) 2002 2001
----------------------------------------------------------------------
US$000s 000s 000s
----------------------------------------------------------------------
Product Revenue 65,108 62,108 62,592
----------------------------------------------------------------------
Gross Profit 13,702 13,071 13,633
----------------------------------------------------------------------
Operating Expenses (12,105) (11,548) (11,374)
----------------------------------------------------------------------
Operating Profit /
(Loss) 1,597 1,523 2,259
----------------------------------------------------------------------
Interest, Foreign
Exchange and
Other charges (914) (871) (1,672)
----------------------------------------------------------------------
Net Profit / (Loss) 683 652 587
----------------------------------------------------------------------
EBITDA(2) 3,509 3,347 4,138
----------------------------------------------------------------------
Profit/(Loss) per Share Data for the
Quarter Ended December 31,
----------------------------------------------------------------------
2002(1) 2002 2001
----------------------------------------------------------------------
US$ - -
----------------------------------------------------------------------
Basic Profit/(Loss)
per Share 0.03 0.03 0.03
----------------------------------------------------------------------
Ordinary Shares
Outstanding 25,068,425 25,068,425 22,136,840
----------------------------------------------------------------------
HIBERNIA FOODS PLC AND SUBSIDIARIES
Summary Consolidated
Balance Sheets as of December 31,
----------------------------------------------------------------------
2002(1) 2002 2001
----------------------------------------------------------------------
US$000s 000s 000s
----------------------------------------------------------------------
ASSETS
----------------------------------------------------------------------
Cash and
equivalents 24 23 -
----------------------------------------------------------------------
Trade receivables 35,256 33,632 38,464
Inventories 26,126 24,922 24,853
----------------------------------------------------------------------
Prepayments and
other receivables 5,905 5,633 4,938
----------------------------------------------------------------------
Total Current
Assets 67,311 64,210 68,255
----------------------------------------------------------------------
Property, Plant
& Equipment 58,174 55,494 63,444
----------------------------------------------------------------------
Intangible assets 7,833 7,471 8,545
----------------------------------------------------------------------
Total Assets 133,318 127,175 140,244
----------------------------------------------------------------------
LIABILITIES AND
EQUITY
----------------------------------------------------------------------
Accounts payable 27,463 26,198 26,507
----------------------------------------------------------------------
Accrued liabilities 34,286 32,706 31,015
----------------------------------------------------------------------
Short-term
borrowings 29,846 28,471 32,871
----------------------------------------------------------------------
Total Current
Liabilities 91,595 87,375 90,393
----------------------------------------------------------------------
Capital Lease
obligations
(excl. current) 535 510 1,163
----------------------------------------------------------------------
Convertible
Loan Notes 15,002 14,311 15,509
----------------------------------------------------------------------
Long Term
Borrowings 12,504 11,928 18,190
----------------------------------------------------------------------
Total
Liabilities 119,636 114,124 125,255
----------------------------------------------------------------------
Minority interests 151 143 143
----------------------------------------------------------------------
Ordinary Shares
issued with
Guarantee 3,283 3,132 3,349
----------------------------------------------------------------------
Shareholders'
Equity 10,248 9,776 11,497
----------------------------------------------------------------------
Total Liabilities
and shareholders'
equity 133,318 127,175 140,244
----------------------------------------------------------------------
HIBERNIA FOODS PLC AND SUBSIDIARIES
Summary Consolidated Statements
of Operations for the
Nine Month Period Ended December 31,
----------------------------------------------------------------------
2002(1) 2002 2001
----------------------------------------------------------------------
US$000s 000s 000s
----------------------------------------------------------------------
Product Revenue 163,536 156,001 154,300
----------------------------------------------------------------------
Gross Profit 27,718 26,441 27,778
----------------------------------------------------------------------
Operating Expenses (31,736) (30,274) (29,675)
----------------------------------------------------------------------
Operating Profit/
(Loss) (4,018) (3,833) (1,897)
----------------------------------------------------------------------
Interest, Foreign
Exchange and Other
charges (3,408) (3,251) (4,538)
----------------------------------------------------------------------
Net (Loss) (7,426) (7,084) (6,435)
----------------------------------------------------------------------
EBITDA(2) 1,889 1,802 3,306
----------------------------------------------------------------------
Loss per Share Data for the
Nine Month Period Ended December 31,
----------------------------------------------------------------------
2002(1) 2002 2001
----------------------------------------------------------------------
US$ - -
----------------------------------------------------------------------
Basic (Loss)
per Share (0.30) (0.28) (0.30)
----------------------------------------------------------------------
Ordinary Shares
Outstanding 24,903,100 24,903,100 21,461,748
----------------------------------------------------------------------
(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 December 31, 2002, of EUR 1.00 = US$1.04830
(2) Earnings before interest, tax, depreciation and amortisation
(EBITDA) represents operating profit for the period plus
depreciation and amortisation. Depreciation and amortisation
amounted to EUR 1.8 million (2001: EUR 1.9 million) in the
quarter ended December 31, 2002 and EUR 5.6 million (2001:
EUR 5.2 million) in the nine-month period ended December 31,
2002.
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