|
Press Releases 2005
First Quarter 2005 Report to Shareholders
Three months ended March 26, 2005
DOMINION CITRUS LIMITED ANNOUNCES FIRST QUARTER RESULTS
First Quarter Highlights
- Revenue of $28,744,000 was down 4.3% due to poor weather conditions, lower pricing of locally grown products and maple syrup inventory reductions at two major customers.
- Fully diluted earnings per share of $0.029 versus the record earnings of $0.038 last year, which included $0.004 per share from a non-recurring insurance recovery.
- The 5,400 sq. ft. addition to the Bo-Fruits facility in Quebec City became fully functional.
- The new processing and refrigerated warehouse facility in Toronto is progressing on schedule and on budget.
- The Company declared a semi-annual dividend of $0.025 per common share.
TORONTO, May 4, 2005: Dominion Citrus Limited (TSE:DMN) announced first quarter net earnings of $603,000 versus $827,000 for the same period last year. Fully diluted earnings per share were $0.029 versus the $0.038 recorded in the first quarter last year. These results reflect an increasingly competitive market, poor weather conditions in key growing areas and the fact that the 2004 net income included approximately $98,000 of after tax insurance proceeds or $0.004 per share.
“Although the first quarter results were lower relative to the record quarter achieved in 2004,” said Jacques Lavergne, President and CEO, “they were achieved in a fiercely competitive market compounded by adverse weather conditions in key growing areas. Our management team is striving to contain and reduce costs while pursuing opportunities to increase market share.”
“We believe 2005 will remain highly competitive which will result in continuing pressure on volumes and margins.”
Dominion Citrus Limited First Quarter Results
(Unaudited)
three months ended March 26 |
|
2005 |
2004 |
| Revenue |
$28,744,000 |
$30,037,000 |
| Gross Margin % |
18.5% |
19.6% |
| Operating Income |
$931,000 |
$1,293,000 |
| Other Income (expense) |
$(40,000) |
$8,000 |
| Income before portfolio income (expense) |
$891,000 |
$1,301,000 |
| Portfolio income (expense) |
$21,000 |
$2,000 |
| Net Income |
$676,000 |
$611,000 |
| Earnings Before Tax |
$912,000 |
$1,303,000 |
| EPS (Basic) |
$0.030 |
$0.042 |
| EPS (Fully diluted) |
$0.029 |
$0.042 |
Fiscal 2005 Outlook
The segments of the food industry in which the Company participates will remain highly competitive resulting in continuing volume and margin pressures. Consolidation of participants in the business segments in which we compete remains the single largest opportunity for future margin and cost improvement. To date, participants have shown no interest in doing so.
About Dominion
Dominion is a diversified food company supplying fresh produce, premium juices and maple syrup to a wide variety of customers in retail, foodservice and food distribution businesses. The Company provides procurement, processing, repacking, sorting, grading, warehousing and distribution services to over 400 customers, with its major domestic markets being Ontario and Quebec. The Company also supplies products to customers in the United States and Europe.
Caution Regarding Forward-Looking Statements
This release contains statements, which, to the extent that they are not a recitation of historical fact, may constitute “forward-looking statements”. Forward-looking statements may include financial and other projections, as well as statements regarding our future plans, objectives or performance, or our underlying assumptions. The words “estimate”, “anticipate”, “believe”, “expect”, “intend” or other similar expressions of future or conditional verbs such as “will”, “should”, “would” and “could” are intended to identify forward-looking statements. Persons reading this release are cautioned that such statements are only expectations, and that our actual results or performance may be materially different.
Forward-looking information involves certain risks, assumptions, uncertainties and other factors which may cause actual future results to differ materially from those expressed or implied in any forward-looking statements.
Readers should not place undue reliance on these forward-looking statements when making decisions, and should consider the date onto which the statements were made. Except as required by applicable security law, management disclaims any intention or obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Investors:
E.A. Atkinson
V.P. Finance, CFO &
Corporate Secretary
416 521-6288
email: t.atkinson@dominioncitrus.com
Media:
J.L. Lavergne
President & CEO
416-521-6289
email: j.lavergne@dominioncitrus.com
|
