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February 21, 2000
Canada Bread releases Fourth Quarter 1999 Earnings
TORONTO, ONTARIO--CBCL (TSE:CBY) today announced earnings for the fourth quarter of 1999. The fourth quarter represented a further improvement over prior year results, following improvements recorded in the third quarter.
While the Company is not yet achieving its earnings potential, we are encouraged by the results in the last two quarters. Management expects earnings to improve in 2000 over 1999, however, because of the many changes that have been and continue to be made, quarterly results will continue to be difficult to predict.
Sales for the quarter increased by 6% to $135.3 million from $127.6 million last year, principally due to increased fresh bread sales arising from the new contract with A&P that began in the first quarter this year and increases in frozen product sales to the U.S.A. For the year to date, sales increased by 12%, reflecting increases across all product lines.
Operating earnings for the quarter (before a special charge) were $6.4 million compared with $4.4 million last year. During the quarter, a special charge of $8.4 million was taken against earnings, representing the costs of restructuring of administration and operations. Having solved a number of operational problems and improved service levels, the management team has launched a major effort aimed at streamlining manufacturing and administrative overheads and further reducing process waste.
As a result of the special charge to earnings, the Company recorded a net loss of $1.9 million ($0.09 per share) for the quarter. Net earnings per share before unusual items is $0.17 per share, compared to $0.11 per share last year. For the year to date, net earnings are $6.3 million ($0.29 per share). Before unusual items, net earnings per share of $0.55 compares to $0.58 per share last year.
The Company declared a quarterly dividend of $0.06 per share, payable April 3, 2000 to shareholders of record March 15, 2000.
Canada Bread Company, Limited, which is 68% owned by Maple Leaf Foods Inc., is Canada's leading manufacturer and distributor of bakery products to the retail and food service business.
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