Stake Announces Second Quarter Results; Reports Record Sales and Earnings
TORONTO--Aug. 13, 2002--Stake Technology Ltd.
(Stake) (Nasdaq:STKL)(TSX:SOY) today announced results for the second
quarter and six months ended June 30, 2002. All amounts are expressed
in US dollars.
The Company achieved record sales for the second quarter,
representing the 19th consecutive quarter of record sales growth.
Sales in the second quarter of 2002 increased by 31% to $31,378,000
compared to $23,988,000 for the same quarter last year. For the six
months ended June 30, 2002, sales increased 27% to $54,685,000
compared to $43,107,000 in the previous year. These results were led
by a 32% increase in the quarter (29% for six months) in sales within
the Company's food operations that are focused on the processing and
distribution of natural, organic and non-genetically modified food
products. The Environmental Industrial Group realized a 29% increase
versus 2001 (21% for six months), due in part to the acquisition of
the operations of Virginia Materials in late 2001.
Net earnings for the second quarter were a record $1,704,000 or
$0.04 per common share, compared to $525,000 or $0.02 per common share
for the same period one year earlier. For the six months ended June
30, 2002, net earnings were $1,727,000 or $0.04 per common share,
compared to $547,000 or $0.02 per common share for the same period one
year earlier. During the quarter the Nordic Aseptic packaging facility
achieved its first two months of profitable operations, a critical
milestone in the development of this business. Furthermore, all
operating groups reported improved earnings in the quarter consistent
with the Company's stated objective of overall profitability gains to
enhance shareholder return.
The Company continued to maintain a strong balance sheet with a
working capital position of $17,683,000 versus $6,105,000 in 2001 and
a long-term debt to equity ratio of 0.34:1 versus 0.62:1 in 2001. The
Company continues to pursue a number of exciting growth opportunities
and intends to leverage its financial strength to further develop
these in the coming months.
Jeremy N. Kendall, Chairman and CEO of Stake Technology Ltd.,
commented that, "We are very pleased with the strong growth in both
revenues and net earnings across our organization and remain confident
that this trend will continue. All operating groups within the
organization have been focused on responsible growth of both the top
and bottom lines, and we are pleased with the results of these efforts
thus far, particularly with the improved performance at Nordic
Aseptic. We remain committed to continued growth and improved
profitability within our operations, which in turn will drive
exceptional return for our shareholders.
Selected financial information (Expressed in US dollars)
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June 30, 2002 June 30, 2001 % Change
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Working Capital $17,683,000 $ 6,105,000 189%
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Total Assets $82,627,000 $65,610,000 26%
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Long-Term Debt $15,754,000 $17,797,000 (12)%
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Shareholders' Equity $46,206,000 $28,770,000 61%
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Equity per Share $ 1.12 $ 0.87 29%
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Three months ended Three months ended
June 30, 2002 June 30, 2001 % Change
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Sales $31,378,000 $23,988,000 31%
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Gross Profit $ 5,436,000 $ 3,808,000 43%
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Operating Earnings $ 2,213,000 $ 1,314,000 68%
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Earnings Before Tax $ 2,470,000 $ 897,000 175%
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Net Earnings $ 1,704,000 $ 525,000 225%
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Basic E.P.S $ 0.04 $ 0.02 100%
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EBITDA $ 3,608,000 $ 2,097,000 72%
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Six months ended Six months ended
June 30, 2002 June 30, 2001 % Change
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Sales $54,685,000 $43,107,000 27%
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Gross Profit $ 8,714,000 $ 6,473,000 35%
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Operating Earnings $ 2,540,000 $ 1,599,000 60%
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Earnings Before Taxes $ 2,477,000 $ 807,000 207%
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Net Earnings $ 1,727,000 $ 547,000 215%
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Basic E.P.S $ 0.04 $ 0.02 100%
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Weighted # of Shares 41,155,661 30,555,088 35%
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EBITDA $ 4,863,000 $ 3,266,000 49%
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Stake Technology will be holding a conference call for investors
and analysts at 3:00 p.m. Eastern Daylight Time on Wednesday, August
14, 2002. Jeremy Kendall will discuss second quarter results, as well
as recent corporate developments. After opening remarks, there will be
a question and answer period. The dial in numbers are 1 (800) 289-0493
or (913) 981-5510. This conference call will also be distributed live
over CCBN's Investor Distribution Network to both institutional and
individual investors. Individual investors may listen to the call via
www.companyboardroom.com. Institutional investors may access the call
via www.streetevents.com. Additionally, the call may be accessed via a
link at the Company's website at www.staketech.com. To listen to the
live call over the Internet please go to one of the websites at least
15 minutes early to register, download and install any necessary audio
software. If you are unable to listen live, the conference call will
be archived and can be accessed for approximately 90 days at the
websites.
Stake Technology Ltd. is an owner/operator of high-growth ethical
businesses, focused on environmental responsibility and the health and
well being of its communities. For the last four consecutive years,
Stake was included in Profit magazine's `Profit 100' list of the 100
fastest growing companies in Canada. Currently, the company has three
business units: the Food Group, which specializes in
identity-preserved (IP) grain products and natural and organic
foodproducts; from seed to packaged product; the Environmental
Industrial Group; a producer, distributor, and recycler of industrial
materials; and the Steam Explosion Technology Group who market clean
pulping technologies. Each of these business units has proprietary
products and services that give it a solid competitive advantage in
its sector.
| Note: |
This news release may contain forward-looking information. |
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Actual future results may differ materially. The risks, uncertainties, |
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and other factors that could influence actual results are described in |
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the Company's Annual Report to shareholders and in SEC reports. |
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--30--cmm/cl*
| CONTACT: |
Stake Technology Ltd. |
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Jeremy N. Kendall |
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John D. Taylor |
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Susan Wiekenkamp |
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Tel: 905/455-1990 |
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info@staketech.com |
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or |
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Investor Relations Counsel |
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The Equity Group Inc. |
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Linda Latman, 212/836-9609 |
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llatman@equityny.com |
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www.theequitygroup.com |
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or |
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Websites: |
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www.staketech.com |
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www.sunrich.com |
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www.bei.ca |
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www.steamexplosion.com |
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www.sunrichvalley.com |
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