Stake Announces Second Quarter Results
TORONTO--Aug. 7, 2003--
-- Reports Record Revenues and Net Earnings for Quarter And
Year-to-Date
-- ``Six Month Revenues up 72%, Six Month Net Earnings up 100%''
Stake Technology Ltd. (Stake) (Nasdaq:STKL) (TSX:SOY) today
announced results for the second quarter and six months ended June 30,
2003. All amounts are expressed in US dollars.
The Company achieved record revenues and net earnings for the
three months ended June 30, 2003, realizing its 23rd consecutive
quarter of record revenue growth and the first quarter with revenues
in excess of $50 million. Revenues in the quarter increased by 68% to
$52,641,000 as compared to $31,378,000 in the second quarter of the
prior year. These results were led by an 87% increase in revenues
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. For the six months ended June 30,
2003, revenues increased 72% to $94,052,000 compared to $54,685,000 in
the prior year.
Net earnings in the second quarter were a record $2,396,000 or
$0.06 per basic common share compared to $1,704,000 or $0.04 per basic
common share in the second quarter of 2002. For the six months ended
June 30, 2003 net earnings are a record $3,460,000, an increase of
100% versus 2002 results of $1,727,000. The increase over the prior
year-to-date in both the quarter and year were due to a number of
factors including increased sales of bulk grains and specialty beans,
increased sales of aseptic packaged soymilk products, cost reductions
throughout the organization and the impact of the acquisitions in late
2002 of Opta Food Ingredients, Wild West Organic Harvest and Simply
Organic.
The Company continues to maintain a strong balance sheet with
working capital of $15,885,000 and total assets of $118,109,000. The
debt to equity ratio at June 30, 2003 was 0.47:1 compared to 0.51:1 at
the end of the first quarter and 0.74:1 at December 31, 2002.
Jeremy N. Kendall, Chairman and CEO of Stake Technology Ltd.,
commented that, "We are very pleased by the record revenues and net
earnings realized in the first half of 2003. We are confident that we
will continue to grow our business and the underlying results as we
continue to integrate our operations, bring new products to market 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 U.S. dollars)
Three months ended Three months ended
June 30, 2003 June 30, 2002 % Change
----------------------------------------------------------------------
Sales $52,641,000 $31,378,000 68%
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Gross Profit $9,105,000 $5,436,000 67%
----------------------------------------------------------------------
Operating Earnings (1) $3,231,000 $2,213,000 46%
----------------------------------------------------------------------
Earnings Before Taxes $3,165,000 $2,470,000 28%
----------------------------------------------------------------------
Net Earnings $2,396,000 $1,704,000 41%
----------------------------------------------------------------------
Basic E.P.S. $0.06 $0.04 50%
----------------------------------------------------------------------
Diluted E.P.S. $0.05 $0.04 25%
----------------------------------------------------------------------
Six months ended Six months ended
June 30, 2003 June 30, 2002 % Change
----------------------------------------------------------------------
Revenues $94,052,000 $54,685,000 72%
----------------------------------------------------------------------
Gross Profit $16,223,000 $8,714,000 86%
----------------------------------------------------------------------
Operating Earnings (1) $4,864,000 $2,540,000 92%
----------------------------------------------------------------------
Earnings Before Taxes $4,685,000 $2,477,000 89%
----------------------------------------------------------------------
Net Earnings $3,460,000 $1,727,000 100%
----------------------------------------------------------------------
Basic E.P.S. $0.08 $0.04 100%
----------------------------------------------------------------------
Diluted E.P.S. $0.08 $0.04 100%
----------------------------------------------------------------------
Weighted # of Shares 42,448,394 41,156,000 4%
----------------------------------------------------------------------
June 30, 2003 June 30, 2002 % Change
----------------------------------------------------------------------
Working Capital $15,885,000 $17,683,000 (10)%
----------------------------------------------------------------------
Total Assets $118,109,000 $82,627,000 43%
----------------------------------------------------------------------
Long-Term Debt $27,280,000 $15,754,000 73%
----------------------------------------------------------------------
Shareholders' Equity $57,799,000 $46,206,000 25%
----------------------------------------------------------------------
Book Value per Share $1.34 $1.12 20%
----------------------------------------------------------------------
(1) Earnings before interest income (expense) and foreign exchange
gains
Stake Technology will be holding a conference call for investors
and analysts at 10:00 am. Eastern Time on Friday, August 8, 2003.
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 (888) 857-6929
or (719) 457-2600 followed by pass code: 642956#. 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 or www.sunopta.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 August 8 and
August 18 with the toll fee dial-in number 1 (888) 203-1112 or (719)
457-0820 followed by pass code: 642956#
Stake Technology Ltd., soon to be SunOpta Inc., is an
owner/operator of high-growth ethical businesses, focusing on
integrated business models in the natural and organic food markets.
For the last five consecutive years, Stake was included in Profit
magazine's 'Profit 100' list of the 100 fastest growing companies in
Canada. The company has three business units: the Food Group, which
specializes in sourcing, processing and distribution of natural and
organic food products; integrated from seed through packaged products;
the Environmental Industrial Group; a producer, distributor, and
recycler of environmentally friendly industrial materials; and the
Steam Explosion Technology Group who engineer and market clean pulping
systems using patented steam explosion technology. Each of these
business units has proprietary products and services that give it a
solid competitive advantage in its sector.
Websites: www.staketech.com or www.sunopta.com www.sunrich.com www.bei.ca www.steamexplosion.com www.sunrichvalley.com www.organickitchen.ca www.wildwestorganicharvest.com www.kettlevalley.net www.opta-food.com
Note: This news release may contain forward-looking information.
Actual future results may differ materially. The risks, uncertainties,
and other factors that could influence actual results are described in
the Company's annual report to shareholders and in SEC filings.
CONTACT: Stake Technology Ltd.
Jeremy N. Kendall, Steve Bromley or Susan Wiekenkamp
905-455-2528, ext 103
info@staketech.com
or
Investor Relations Counsel
The Equity Group Inc.
Linda Latman, 212-836-9609
www.theequity.group.com
SOURCE: Stake Technology Ltd.