MISSISSAUGA, ONTARIO increased sales for the seventh consecutive
year, with annual revenues reaching $38 million up $3.6 million
from 2006. Central had earnings of $804,000 before interest taxes
and amortization, an increase of $417,000 over 2006. Earnings per
share increased to $0.02 in 2007 from $0.00 in 2006, reflecting the
increase in net profits to $340,000 from $66,000. Company was able
to increase production for the year to meet demand attributed to
growth of the Company's "Choice Pak" brand awareness, increased
shipments to domestic retailers and new sales into Russia. This
allowed it to improve sales and maintain profitability margins.
CICI generated record fourth quarter sales of $9.8 million for
the 3 months ended October 31, 2007, up from $9.3 million for the
same period in the previous fiscal year. The Company realized
income before interest, taxes and amortization of $228,000, in this
period, up $141,000 from $87,000 for the same period in 2006.
Despite the pressures on raw material costs, increased
productivity in resulted in a decrease in the cost of meat products
and labour as a percent of sales, from 89.7% in 2006 to 87.5% in
2007, as a result of improved operating efficiencies and reduced
fluctuations in raw material costs.
In 2007, the company's selling, general and administration
expenses increased by $648,000 to $3,948,000, an increase of 20%
from $3,300,000 in the same period in 2006. This increase is due to
the higher cost of operating the Timberlea plant due to increased
output and increased costs of carrying higher inventory, including
storage and material handling costs. Administrative salaries also
increased. As a percentage of sales, selling, general and
administration expenses was 10.4% of sales for the year ended
October 31, 2006, from 9.6 % in 2006.
Management continues to consider other means of increasing
shareholder value and considering other higher margin opportunities
in meat processing in Canada and Europe as well as other business
opportunities in Canada and abroad.
The Company's fourth quarter and annual financial statements are
summarized as follows:
October 31
2007 2006
Consolidated Balance Sheets ($'000)
Current Assets 4,926 4,173
Capital Assets 1,149 1,229
Goodwill 555 555
-----------------
Total Assets 6,630 5,957
-----------------
-----------------
Liabilities and Equity
Bank indebtedness 1,791 1,358
Other current liabilities 1,997 2,163
Non-current liabilities 849 783
Share capital 1,952 1,952
Retained Earnings (Deficit) 41 (299)
-----------------
Total Liabilities and Equity 6,630 5,957
-----------------
-----------------
Year ended 3 months ended
October 31 October 31
2007 2006 2007 2006
Consolidated Statements of
Operations
($'000 except per share
amounts)
Sales 38,123,023 34,445,159 9,764,186 9,262,250
Meat products and labour 33,339,103 30,757,498 8,515,542 $8,025,413
Selling, general and
administration 3,948,175 3,300,427 989,608 1,150,157
Loss on disposal of capital
assets 31,270 0 31,270 0
-------------------------------------------
Income before interest
amortization & taxes 804,475 387,234 227,766 86,680
Bank charges & interest 160,873 140,881 50,434 40,982
Amortization 171,316 169,007 34,230 46,512
Taxes 132,147 10,862 44,533 36,088
-------------------------------------------
Income (Loss) for the period 340,139 66,484 98,569 (36,902)
-------------------------------------------
-------------------------------------------
Earnings (Loss) per share -
basic and fully diluted $0.02 $0.00 $0.01 $0.00
-------------------------------------------
-------------------------------------------
Year ended 3 months ended
October 31 October 31
2007 2006 2007 2006
Consolidated Statements of Cash Flows
($'000)
Cash (used in) operating activities (249,629) (566,750) 143,004 47,561
Cash (used in) from financing
activities 372,265 697,536 (83,063) 52,416
Cash provided by investing
activities (122,636) (130,786) (59,941) (99,977)
--------------------------------------
(Decrease) increase in cash and
cash equivalents - -
Cash and cash equivalents-beginning
of year - - - -
--------------------------------------
Cash and cash equivalents-end
of year - - - -
--------------------------------------
--------------------------------------
About Central Industries Corporation Inc.
Central Industries Corporation Inc. (CICI) operates a federally
inspected, HACCP approved, meat processing company that converts
wholesale cuts from a hog carcass or "primal meat cut" and converts
smaller cuts derived from the primal cuts or "sub primal meat cuts"
into fresh-boxed pork and case ready products, hams and boneless
picnic loins for shipment to its customers. CICI's products are
marketed and sold to Canadian national and regional grocery chains,
as well as in the Asian-Pacific market and other international
markets.
This News Release may contain certain forward-looking
statements, which statements can be identified by the use of
forward-looking terminology such as "may", "will", "expect",
"anticipate", "estimate", "predict", "plans", or "continues" or the
negative thereof or any other variations thereon or comparable
terminology referring to future events or results. Forward looking
statements are statements about the future and are inherently
uncertain, and the Company's actual results could differ materially
from those anticipated in these forward-looking statements as a
result of numerous factors, including without limitation, the need
for regulatory approval, marketing/manufacturing and
partnership/strategic alliance risks, the effect of competition,
uncertainty of the size and existence of a market opportunity for
the Company's products, as well as a description of other risks and
uncertainties affecting the Company and its business, as contained
in news releases and filings with the Canadian Securities
Regulatory Authorities, any of which could cause actual results to
vary materially from current results or the Company's anticipated
future results. Forward-looking statements are based on the
beliefs, opinions and expectations of the Company's management at
the time they are made, and the Company does not assume any
obligation to update its forward-looking statement if those
beliefs, opinions or expectations, or other circumstances should
change.
The Toronto Venture Exchange has not reviewed and does not
accept responsibility for the adequacy or accuracy of the content
of this News Release.
Contacts: Central Industries Corporation Inc. George Michaels
President (905) 272-3133
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