Stake Announces First Quarter Results Reports Record Sales And Earnings
Toronto,
Ontario, May 7, 2003. Stake Technology Ltd. (Stake)
(Nasdaq - STKL) (TSX - SOY) today announced results for the
three months ended March 31, 2003. All amounts are expressed
in US dollars.
The
Company achieved record sales and earnings for the three months
ended March 31, 2003, realizing its 22nd consecutive quarter
of record sales growth and first quarter with sales in excess
of $40 million. Sales in the quarter increased by 78% to $41,411,000
as compared to $23,283,000 in the first quarter of the prior
year. These results were led by a 98% increase in sales within
the Company's vertically integrated natural and organic food
operations, driven by a combination of internal growth and
the acquisitions completed in late 2002.
Net
earnings for the first quarter were $1,064,000 or $0.03 per
common share compared to $23,000 or $0.00 per common share
in the first quarter of 2002. The increase over the prior
year was due to a number of factors including increased sales
of aseptic packaged soymilk products, increased sales of bulk
grains and specialty beans, cost reductions throughout the
organization and the impact of the acquisitions in late 2002
of Opta Food Ingredients (Opta), Wild West Organic Harvest
and Simply Organic.
The
Company continues to maintain a strong balance sheet with
working capital of $14,141,000 and total assets of $109,485,000.
During the first quarter the Company completed the refinancing
of the banking facilities used to finance the acquisition
of Opta, thus reducing the debt to equity ratio for the Company
from the 0.74:1 as at December, 31, 2002 to 0.51:1 at the
end of the quarter.
The
Company has announced that it expects to achieve revenues
of $175,000,000 in 2003, an increase of 45% versus 2002. The
increase is based on a combination of continued internal growth
and the impact of the food based acquisitions completed in
the fourth quarter of 2002.
Jeremy
N. Kendall, Chairman and CEO of Stake Technology Ltd., commented
that, "We are extremely pleased with the record results
realized in the first quarter of 2003 and are confident that
these results will continue to improve as we integrate our
recent acquisitions and pursue many exciting opportunities
in the fast growing natural and organic foods sectors. We
remain committed to profitably growing our business and in
doing so, driving solid shareholder value."
Selected
financial information
(Expressed in US dollars)
| |
March
31, 2003
|
March
31, 2002
|
%
Change
|
| |
|
|
|
| Working
Capital |
$14,141,000
|
$16,586,000
|
(15)%
|
| Total
assets |
$109,485,000
|
$82,023,000
|
33%
|
| Long-
term debt |
$26,751,000
|
$16,178,000
|
65%
|
| Shareholders'
Equity |
$52,499,000
|
$43,701,000
|
20%
|
| Equity
per share |
$1.23
|
$1.06
|
16%
|
| |
Three
months ended March 31, 2003
|
Three
months ended March 31, 2002
|
%
Change
|
| |
|
|
|
| Revenues |
$41,411,000
|
$23,283,000
|
78%
|
| Gross
Profit |
$7,118,000
|
$3,304,000
|
115%
|
| Operating
Earnings |
$1,633,000
|
$321,000
|
408%
|
| Earnings
BeforeTaxes |
$1,520,000
|
$6,000
|
25233%
|
| Net
Earnings |
$1,064,000
|
$23,000
|
4536%
|
| Basic
E.P.S. |
$0.03
|
$0.00
|
N/A
|
| Weighted
number of shares |
42,290,857
|
41,110,488
|
3%
|
| EBITDA1 |
$3,152,000
|
$1,251,000
|
152%
|
1
EBITDA is not a recognized measure under Canadian or United
States generally accepted accounting principles (GAAP). Management
believes that in addition to net income, EBITDA is a useful
supplemental measure as it provides investors with an indication
of earnings from our operations prior to debt service, amortization
and income taxes. Investors should be cautioned however, that
EBITDA should not be construed as an alternative to net income
determined in accordance with GAAP as an indicator of the
Company's performance or to cash flows from operating, investing
and financing activities as a measure of liquidity and cash
flows. The Company's method of calculating EBITDA may differ
from other companies and, accordingly, EBITDA may not be comparable
to measures used by other companies. As such the Company's
EBITDA is calculated as follows: Earnings before income taxes
$1,520 (2002 - 6), interest expense $491 (2002 - 422), interest
and other income ($37) (2002 - ($111)) and amortization expense
$1,178 (2002 - $934).
Stake
Technology will be holding a conference call for investors
and analysts at 10:00 am. Eastern Time on Thursday, May 8,
2003. Jeremy Kendall will discuss first 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) 314-7867 or (719) 867-0640 followed by pass code:
688242#. 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. A replay number can also be accessed between
May 8 and May 17 with the toll fee dial-in number 1 (888)
203-1112 or (719) 457-0820 followed by pass code: 688242#.
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 food products; 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.
For further information,
please contact:
Stake Technology Ltd
Jeremy N. Kendall, Chairman and C.E.O.
Steve Bromley, Executive Vice President & CFO
Susan Wiekenkamp, Information Officer
Tel: (905) 455-2528 ext 103
E-mail: info@staketech.com
Web sites:
http://www.staketech.com
http://www.bei.ca
http//www.sunrich.com
http://www.steamexplosion.com
http://www.theequitygroup.com
http://www.organickitchen.ca
http://www.wildwestorganicharvest.com
http://www.opta-food.com
Investor Relations
Sarah Torres
(212) 836-9611
storres@equityny.com
Linda Latman 212-836-9609
www.theequitygroup.com