|By PR Newswire||
|August 8, 2014 11:43 AM EDT||
ROUGEMONT, QC, Aug. 8, 2014 /CNW Telbec/ - Lassonde Industries Inc. (TSX: LAS.A) ("Lassonde") posted sales of $272.4 million in the second quarter of 2014, a 5.4% increase year over year. Profit attributable to the Company's shareholders for this period totalled $11.2 million, down $0.2 million from the second quarter of 2013.
(in thousands of dollars)
|Second quarters ended|
|Sales||$ 272,403||$ 258,550|
|Profit before income taxes||16,877||15,646|
|Profit attributable to the Company's shareholders||11,228||11,385|
|Basic and diluted earnings per share (in $)||$ 1.61||$ 1.63|
Note: These are financial highlights only. Management's Discussion and Analysis, the unaudited interim condensed consolidated financial statements and notes thereto for the quarter ended June 28, 2014 will be available on the SEDAR website at www.sedar.com and on the website of Lassonde Industries Inc.
"The 2014 second quarter results reflect a combined impact of solid performance by our U.S. subsidiary and difficult market conditions in Canada. In addition, I'm pleased to announce the closing of the Apple & Eve acquisition, which marks another major step in the realization of our North American growth strategy," said Pierre-Paul Lassonde, Chairman of the Board and Chief Executive Officer of Lassonde Industries Inc.
The Company's sales totalled $272.4 million in the second quarter of 2014, up $13.8 million or 5.4% from $258.6 million in sales during the same period of 2013. This increase was primarily driven by an increase in the sales of private labels and by a favourable foreign exchange impact, partly offset by a decrease in the sales volume of national brands. For the first six months of 2014, sales totalled $516.6 million, up 3.5% from $499.1 million in the first six months of 2013.
The Company's operating profit for the second quarter of 2014 stood at $21.9 million, up $2.4 million from operating profit of $19.5 million in the same quarter last year. This increase was mostly due to an improvement in the profitability of Clement Pappas and Company, Inc. ("CPC") private label products and to a decrease in selling and administrative expenses, partly offset by an unfavourable impact on the Company's cost of sales of lower production volumes in Canada. Operating profit for the first six months of 2014 stood at $36.2 million, up $2.9 million from $33.3 million at the end of the first six months of 2013.
The Company's financial expenses went from $4.6 million in the second quarter of 2013 to $4.1 million this quarter. This decrease was mostly attributable to a $1.6 million decrease in interest expense arising from a change in the interest rates applicable to CPC's term loan as of July 2013 and a reduction in indebtedness. This decrease was partly offset by a less favourable change in the fair value of the financial liability related to retractable financial instruments. A $0.4 million decrease in this liability was recognized in the second quarter of 2014 whereas a $1.6 million decrease had been reported in the second quarter of 2013. For the first six months, financial expenses went from $11.0 million in 2013 to $9.4 million this fiscal year.
"Other (gains) losses" went from a $0.8 million gain in the second quarter of 2013 to a $0.9 million loss in 2014. The 2013 second-quarter gain was mainly due to $0.5 million in foreign exchange gains and to a $0.2 million gain related to a change in the fair value of interest rate swaps. The $0.9 million loss in the second quarter of 2014 was mainly due to $0.4 million in foreign exchange losses and to a $0.4 million loss related to a settlement at fair value of a derivative financial instrument. For the first six months, the "Other (gains) losses" item was a $0.3 million gain in 2014 compared to a $1.0 million gain in 2013.
Profit before income taxes totalled $16.9 million for the second quarter of 2014, up $1.3 million from $15.6 million in the same quarter of 2013. For the first six months of 2014, profit before income taxes stood at $27.1 million, up $3.7 million from $23.4 million in the first six months of 2013.
An income tax expense at an effective rate of 28.6% (23.7% in 2013) brought the 2014 second-quarter profit to $12.0 million, up $0.1 million from $11.9 million in the same quarter last year. Profit attributable to the Company's shareholders was $11.2 million, resulting in basic and diluted earnings per share of $1.61 for the second quarter of 2014. In the second quarter of 2013, profit attributable to the Company's shareholders had totalled $11.4 million, resulting in basic and diluted earnings per share of $1.63. For the first six months of 2014, profit attributable to the Company's shareholders totalled $18.3 million, resulting in basic and diluted earnings per share of $2.62 and, in the same six-month period of 2013, profit had totalled $17.2 million, resulting in basic and diluted earnings per share of $2.47.
Cash flows from operating activities generated $1.6 million in cash during the second quarter of 2014, while they had generated $38.1 million in cash during the same period last year. Financing and investing activities used $16.4 million and $4.2 million, respectively, in cash during the second quarter of 2014, whereas they had used $34.4 million and $9.3 million for the same period of fiscal 2013. At the end of the second quarter of 2014, the Company reported a cash and cash equivalents balance of $17.4 million and a bank overdraft of $12.2 million compared to a cash and cash equivalents balance of $1.3 million and a bank overdraft of $4.6 million at the end of the second quarter of 2013.
Sluggish growth in demand for juice and fruit beverages is continuing to impact the sales volumes of North American producers in this sector. Increased competition in the Canadian market has an impact on prices as well as on sales volumes of the Company's national brands. Moreover, Lassonde Industries Inc. is not seeing any signs that competitive activity will diminish over the next two quarters. However, the Company believes that it will be able to maintain slight sales growth due to the strong performance of its private label products as well as to the favourable exchange impact from its U.S. dollar sales.
Lassonde Industries Inc. adjusted its method of operation and its level of spending to maintain its competitive position and to safeguard its profitability. It also acquired Apple & Eve, LLC to increase its North American market presence for national brands. The Company expects this acquisition to have significant impact on its activities. To help measure this impact, it should be remembered that Apple & Eve, LLC recorded sales of approximately US$180 million for the 12-month period ending May 31, 2014 and an adjusted EBITDA of approximately US$15 million.
Barring any major external shocks and excluding future sales from Apple & Eve, LLC, the Company remains optimistic about its ability to slightly increase its consolidated sales in 2014 compared to those of 2013.
About Lassonde Industries Inc.
Lassonde Industries Inc. is a North American leader in the development, manufacture and sale of a wide range of ready-to-drink fruit and vegetable juices and drinks marketed under brands such as Everfresh, Fairlee, Flavür, Fruité, Graves, Oasis and Rougemont.
Lassonde is also the second largest producer of store brand fruit juices and drinks in the United States and a major producer of cranberry sauces.
Lassonde also develops, manufactures and markets specialty food products under brands such as Antico and Canton. The Company imports and markets selected wines from various countries and manufactures apple ciders and wine-based beverages.
The Company produces superior quality products through the efforts of over 2,000 people working in 14 plants across Canada and the United States. To learn more, visit www.lassonde.com.
SEDAR registration number: 00002099
Caution Concerning Forward-Looking Statements
This press release contains forward-looking statements that are based on certain assumptions. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Additional factors are discussed in materials filed from time to time with the securities regulatory authorities in Canada. Lassonde Industries Inc. disclaims any intention or obligation to update or revise any forward-looking statements except as required by law.
SOURCE Lassonde Industries Inc.
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, discussed the best practices that will ensure a successful smart city journey.
Jan. 21, 2017 06:00 AM EST Reads: 2,067
In his session at 19th Cloud Expo, Claude Remillard, Principal Program Manager in Developer Division at Microsoft, contrasted how his team used config as code and immutable patterns for continuous delivery of microservices and apps to the cloud. He showed how the immutable patterns helps developers do away with most of the complexity of config as code-enabling scenarios such as rollback, zero downtime upgrades with far greater simplicity. He also demoed building immutable pipelines in the cloud ...
Jan. 21, 2017 05:30 AM EST Reads: 3,550
Traditional on-premises data centers have long been the domain of modern data platforms like Apache Hadoop, meaning companies who build their business on public cloud were challenged to run Big Data processing and analytics at scale. But recent advancements in Hadoop performance, security, and most importantly cloud-native integrations, are giving organizations the ability to truly gain value from all their data. In his session at 19th Cloud Expo, David Tishgart, Director of Product Marketing ...
Jan. 21, 2017 05:00 AM EST Reads: 3,003
Choosing the right cloud for your workloads is a balancing act that can cost your organization time, money and aggravation - unless you get it right the first time. Economics, speed, performance, accessibility, administrative needs and security all play a vital role in dictating your approach to the cloud. Without knowing the right questions to ask, you could wind up paying for capacity you'll never need or underestimating the resources required to run your applications.
Jan. 21, 2017 05:00 AM EST Reads: 4,026
Technology vendors and analysts are eager to paint a rosy picture of how wonderful IoT is and why your deployment will be great with the use of their products and services. While it is easy to showcase successful IoT solutions, identifying IoT systems that missed the mark or failed can often provide more in the way of key lessons learned. In his session at @ThingsExpo, Peter Vanderminden, Principal Industry Analyst for IoT & Digital Supply Chain to Flatiron Strategies, will focus on how IoT depl...
Jan. 21, 2017 03:45 AM EST Reads: 1,985
The pace of innovation, vendor lock-in, production sustainability, cost-effectiveness, and managing risk… In his session at 18th Cloud Expo, Dan Choquette, Founder of RackN, discussed how CIOs are challenged finding the balance of finding the right tools, technology and operational model that serves the business the best. He also discussed how clouds, open source software and infrastructure solutions have benefits but also drawbacks and how workload and operational portability between vendors an...
Jan. 21, 2017 02:30 AM EST Reads: 5,041
Adding public cloud resources to an existing application can be a daunting process. The tools that you currently use to manage the software and hardware outside the cloud aren’t always the best tools to efficiently grow into the cloud. All of the major configuration management tools have cloud orchestration plugins that can be leveraged, but there are also cloud-native tools that can dramatically improve the efficiency of managing your application lifecycle. In his session at 18th Cloud Expo, ...
Jan. 21, 2017 02:30 AM EST Reads: 6,112
With the proliferation of both SQL and NoSQL databases, organizations can now target specific fit-for-purpose database tools for their different application needs regarding scalability, ease of use, ACID support, etc. Platform as a Service offerings make this even easier now, enabling developers to roll out their own database infrastructure in minutes with minimal management overhead. However, this same amount of flexibility also comes with the challenges of picking the right tool, on the right ...
Jan. 21, 2017 02:15 AM EST Reads: 5,359
Big Data, cloud, analytics, contextual information, wearable tech, sensors, mobility, and WebRTC: together, these advances have created a perfect storm of technologies that are disrupting and transforming classic communications models and ecosystems. In his session at @ThingsExpo, Erik Perotti, Senior Manager of New Ventures on Plantronics’ Innovation team, provided an overview of this technological shift, including associated business and consumer communications impacts, and opportunities it m...
Jan. 21, 2017 02:00 AM EST Reads: 5,817
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, discussed how leveraging the Industrial Internet and...
Jan. 21, 2017 01:30 AM EST Reads: 6,566
"Tintri was started in 2008 with the express purpose of building a storage appliance that is ideal for virtualized environments. We support a lot of different hypervisor platforms from VMware to OpenStack to Hyper-V," explained Dan Florea, Director of Product Management at Tintri, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jan. 21, 2017 01:15 AM EST Reads: 4,905
There will be new vendors providing applications, middleware, and connected devices to support the thriving IoT ecosystem. This essentially means that electronic device manufacturers will also be in the software business. Many will be new to building embedded software or robust software. This creates an increased importance on software quality, particularly within the Industrial Internet of Things where business-critical applications are becoming dependent on products controlled by software. Qua...
Jan. 21, 2017 01:15 AM EST Reads: 5,052
Fact is, enterprises have significant legacy voice infrastructure that’s costly to replace with pure IP solutions. How can we bring this analog infrastructure into our shiny new cloud applications? There are proven methods to bind both legacy voice applications and traditional PSTN audio into cloud-based applications and services at a carrier scale. Some of the most successful implementations leverage WebRTC, WebSockets, SIP and other open source technologies. In his session at @ThingsExpo, Da...
Jan. 21, 2017 01:15 AM EST Reads: 2,886
The speed of software changes in growing and large scale rapid-paced DevOps environments presents a challenge for continuous testing. Many organizations struggle to get this right. Practices that work for small scale continuous testing may not be sufficient as the requirements grow. In his session at DevOps Summit, Marc Hornbeek, Sr. Solutions Architect of DevOps continuous test solutions at Spirent Communications, explained the best practices of continuous testing at high scale, which is rele...
Jan. 21, 2017 12:30 AM EST Reads: 4,579
A critical component of any IoT project is what to do with all the data being generated. This data needs to be captured, processed, structured, and stored in a way to facilitate different kinds of queries. Traditional data warehouse and analytical systems are mature technologies that can be used to handle certain kinds of queries, but they are not always well suited to many problems, particularly when there is a need for real-time insights.
Jan. 21, 2017 12:15 AM EST Reads: 6,376