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Lassonde Industries Inc. announces its Q2 2013 results

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ROUGEMONT, QC, Aug. 9, 2013 /CNW Telbec/ - Lassonde Industries Inc. (TSX: LAS.A) ("Lassonde") posted sales of $258.6 million in the second quarter of 2013, a 0.8% increase year over year. Profit attributable to the Company's shareholders for this period totalled $11.4 million, up $0.8 million from the second quarter of 2012.

Financial highlights
(in thousands of dollars)
Second quarters ended
  June 29,
2013
June 30,
2012
(restated)(1)
Sales $ 258,550 $ 256,403
Operating Profit   19,490   20,739
Profit before income taxes   15,646   13,784
Profit attributable to the Company's shareholders   11,385   10,552
Basic and diluted earnings per share (in $) $ 1.63 $ 1.51

(1) Figures restated following the adoption, on January 1, 2013, of the amended version of IAS 19. For more information about the restatement, see Note 16 to the unaudited interim condensed consolidated financial statements for the quarter ended June 29, 2013.
   
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 29, 2013 will be available on the SEDAR website at www.sedar.com and on the website of Lassonde Industries Inc.

"We are pleased to report a slight increase in sales despite the unfavourable impact of adverse weather conditions on our markets in the second quarter of 2013," said Pierre-Paul Lassonde, Chairman of the Board and Chief Executive Officer of Lassonde Industries Inc.

Financial results
The Company's sales totalled $258.6 million in the second quarter of 2013, up $2.2 million or 0.8% from $256.4 million in the same period of 2012. This increase was primarily driven by higher private label sales partly offset by lower sales volumes for national brands. For the first six months of 2013, sales totalled $499.1 million, up 1.9% from $489.8 million in the first six months of 2012.

The Company's operating profit for the second quarter of 2013 stood at $19.5 million, down $1.2 million or 6.0% from operating profit of $20.7 million in the same quarter last year. Excluding the recognition in 2012 of a $1.5 million gain on the disposal of property, plant and equipment, operating profit would be up $0.3 million or 1.1% from the second quarter of 2012. Operating profit for the first six months of 2013 stood at $33.3 million, down $0.7 million from $34.0 million at the end of the first six months of 2012.

The Company's financial expenses went from $6.0 million in the second quarter of 2012 to $4.6 million this quarter. This decrease was mostly attributable to the change in fair value of the financial liability related to retractable financial instruments. No change in value had been recognized in the second quarter of 2012, whereas a $1.6 million decrease in this liability, mainly related to the settlement of retractable financial instruments, was recognized in the second quarter of 2013. For the first six months, financial expenses went from $10.4 million in 2012 to $11.0 million this fiscal year.

"Other (gains) losses" went from a $1.0 million loss in the second quarter of 2012 to a $0.8 million gain in the second quarter of 2013. The 2012 second-quarter loss was mainly due to a $1.1 million loss from a change in the fair value of interest rate swaps. For the second quarter of 2013, we recognized a $0.5 million foreign exchange gain and a $0.2 million gain from a change in the fair value of interest rate swaps. For the first six months, "Other (gains) losses" was a $1.0 million gain in 2013 compared to a $1.8 million loss in 2012.

Profit before income taxes stood at $15.6 million for the second quarter of 2013, up $1.8 million from $13.8 million in the same quarter last year. For the first six months of 2013, profit before income taxes stood at $23.4 million, up 7.3% from $21.8 million in the first six months of 2012.

An income tax expense at an effective rate of 23.7% (22.5% in 2012) brought the 2013 second-quarter profit to $11.9 million, up $1.2 million from $10.7 million in the same quarter of 2012. Profit attributable to the Company's shareholders was $11.4 million, resulting in basic and diluted earnings per share of $1.63 for the second quarter of 2013. In the second quarter of 2012, profit attributable to the Company's shareholders had totalled $10.6 million, resulting in basic and diluted earnings per share of $1.51. For the first six months of 2013, profit attributable to the Company's shareholders totalled $17.2 million, resulting in basic and diluted earnings per share of $2.47 and, in the same six-month period of 2012, profit had totalled $16.2 million, resulting in basic and diluted earnings per share of $2.32.

Cash flows from operating activities generated $38.1 million in cash during the second quarter of 2013, while they had generated $32.8 million during the same period last year. Financing and investing activities used $34.4 million and $9.3 million, respectively, in cash in the second quarter of 2013, whereas they had used $20.6 million and $5.4 million in the same period last year. At the end of the second quarter of 2013, the Company reported a cash and cash equivalents balance of $1.3 million and a bank overdraft of $4.6 million compared to a cash and cash equivalents balance of $0.7 million at the end of the second quarter of 2012.

Outlook
Market data indicates that there is downward pressure on the sales volumes of North American fruit juice and fruit drink producers. While greater stability in industry volumes has been observed in the last nine months, the downward pressure on volumes combined with unfavourable weather conditions in June have intensified competitive strategies, which are affecting the Company's national brands. Given this situation, trade spending levels continue to remain high. The Company is responding to the changing competitive landscape and improving the strategic market positioning of its national brands through innovation.

Lassonde Industries Inc. plans on maintaining its business model and management approach for the coming year. Barring any major external shocks, the Company remains optimistic about its ability to slightly increase its consolidated sales in 2013 compared to 2012.

About Lassonde Industries Inc.
Lassonde Industries Inc. is a North American leader in the development, manufacture and sale of a wide range of 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 ready-to-drink fruit juices and drinks in the United States and a major producer of cranberry juices, drinks and 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 some 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.



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