Beaumont Select Corporations Inc.
TSX VENTURE : BMN.A

December 06, 2010 13:44 ET

Beaumont Select Corporations Inc (BMN.A) Earns 4 Cents Per Share

CALGARY, ALBERTA--(Marketwire - Dec. 6, 2010) - Beaumont Select Corporations Inc (TSX VENTURE:BMN.A) recently released its first quarter results. The first quarter continued an upward trend in the equity portfolio, while the food division result continued to show the pricing pressures brought on by both suppliers and customers. Net income for the quarter was $578 thousand (4 cents per share) compared to $874 thousand (5 cents per share) during the first quarter of prior year.

The Investment Division generated a total investment gain of $850 thousand comprised mainly of increased unrealized gains of $361 thousand, and $268 thousand in realized gains. In addition, the equity portfolio generated investment income from dividends of $306 thousand, well surpassing the margin interest expense of $85 thousand. During the quarter the TSX Composite index increased by 9.5%, while the equity portion of the portfolio (total securities less margin loan) grew 10% from $8.4 million as of June 30th to $9.247 million at September 30, 2010.

Revenue in the Food Division decreased 3.4% with declines in the US sales continuing to affect results. Rising input costs continued to affect results negatively.

FINANCIAL HIGHLIGHTS

The Corporation's financial results for the three months ended September 30, 2010 compared to the same period in the previous fiscal year included the following:

  • A rising stock market has resulted in the following changes to the portfolio of equity securities:
$ millions Sep 30, 2010   Jun 30, 2010   3 mo. Change
Portfolio value $18.315   $ 16.833   8.8%
Margin Loan 9.068   8.424   7.6%
Equity in Portfolio 9.247   8.409   10.0%
  • Sales decreased by 3.4% in the first quarter compared to the first quarter 2009- 10. New US customers have not yet replaced a key account lost last year.
  • Operating margin has decreased to 6.9% from 7.7% for the first quarter last year
  • Net income is $578 thousand or 4 cents per share, compared to an income of $874 thousand or 5 cents per share for the prior period last year.
Financial Highlights      
$ Thousands (except per share data)      
     Three Months Ended
  Sept 2010   Sept 2009
       
Net Sales $4,861   $5,033
Operating Income (Loss) 331   389
Net Income (Loss) 578   874
Net Income (Loss) per share -basic 0.04   0.05
Net Income (Loss) per share -diluted 0.04   0.05
Funds from (required by) Operations 236   181
Funds from operations per share – basic 0.01   0.01
Funds from operations per share - diluted 0.01   0.01
EBITDA 1,005   1,225
EBITDA per share – basic 0.06   0.07
EBITDA per share – diluted 0.06   0.07
     As at
  Sept 2010   June 2010
Total Assets $36,069   $34,616
Total Long-Term Debt 614   638
Shareholder's Equity $16,542   $20,273
       
Shares outstanding 16,348,597   16,379,097

As of December 3, 2010, the equity investments under management have climbed to $19.706 million, while margin loans have increased to $10.248 million, resulting in a net equity value of $9.458 million in marketable securities.

Beaumont Select Corporations Inc is management and investment corporation with investments in the food industry, as well as a portfolio of equity securities. Beaumont Select is listed on the TSX Venture exchange under the ticker symbol BMN.A.

Contact Information

  • Beaumont Select Corporations Inc.
    Winston Ho Fatt
    Chief Executive Officer and President
    (403) 250-8757