Central Industries Corporation Inc.

March 26, 2008 16:43 ET

Central Industries Earnings Up in First Quarter

MISSISSAUGA, ONTARIO--(Marketwire - March 26, 2008) - For the first quarter ended January 31, 2008, Central Industries Corporation Inc. (TSX VENTURE:CND.A) generated its net income of $228,000, up 190% from $79,000 in 2007 (all amounts in Canadian funds).

Sales in the quarter were $7.5 million, as compared to $9.5 million in the first quarter of fiscal 2007, down $2 million, as the Company had temporary difficulties arranging shipping for overseas delivery. This decline was offset by a decrease in the cost of raw materials. This led to a decrease in the cost of meat products and labour expense as a percentage of sales to 78.8% in the first quarter of fiscal 2008 as compared to 88.7% in the same period last fiscal year.

The Company's selling, general and administration expenses increased by 23% from $921,000 in the first quarter of 2007 to $ 1,133,000 in the first quarter of 2007 an increase of $211,000, as a result of increased operating costs associated with higher inventory levels and related carrying costs, higher staff costs and administrative costs. As a percentage of sales, these expenses were 15% of sales in the first quarter of 2008 as compared to 9.7% in 2007.

The Company's bank indebtedness as at January 31, 2007 declined $168,000 from $1,358,000 at year-end, October 31, 2006, to $1,190,000. Bank indebtedness declined $25,000 as compared to the first quarter of 2006. The Company's operating line of credit was used to finance sales and inventory.

The Company's bank indebtedness as at January 31, 2007 declined $30,000 from $1,790,000 at year-end, October 31, 2007, to $1,760,000. Bank indebtedness increased $570,000 as compared to the first quarter of the previous fiscal year due to increases in inventory levels. The Company's operating line of credit was used to finance sales and inventory.

The Company's financial statements (in Canadian funds) are summarized as

Consolidated Balance Sheet ($'000)
January 31, October 31,
2008 2007
C$ C$

Current Assets 5,026 4,926
Capital Assets 1,122 1,149
Goodwill and Other 555 555


Total Assets 6,703 6,630

Liabilities and Equity
Bank indebtedness 1,761 1,791
Other current liabilities 1,876 1,997
Non-current liabilities 845 849
Share capital 1,952 1,952
Retained Earnings (Deficit) 269 41

Total Liabilities and Equity 6,703 6,630

Consolidated Statements of Operations ($'000) 3 months ended
July 31,
2008 2007
C$ C$

Sales $7,463 $9,535

Meat products and labour 5,883 8,456
Selling, general and administration 1,133 921
Amortization 47 45
Interest and bank charges 42 31
Taxes 130 3

Income (loss) for the period 228 $ 79

Earnings per share - basic and fully diluted $ 0.01 $ -

Consolidated Statements of Cash Flows 3 months ended
January 31,
2008 2007
C$ C$

Cash (used in) operating activities 70 208
Cash from financing activities (50) (190)
Cash (used in) provided by investing activities (20) (18)
(Decrease) increase in cash and cash equivalents - -
Cash and cash equivalents-beginning of period - -
Cash and cash equivalents-end of period - -

Effective immediately, Mr. George Michaels is no longer the President and Secretary of the Company. Mr. Michaels remains a director of the Company. His day to day responsibilities will be assumed by Zoran Konevic, Central's CEO and other members of the Company's management team.

"We are grateful to George for the solid team that he has built, so that with his departure the Company can and will continue business as usual," said Zoran Konevic, Central's CEO.

Mr. Konevic continued, "I am pleased to be considering growth opportunities for Central with this highly skilled and motivated team."

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. In addition, it is aggressively looking to expand into profitable niche businesses in food processing and other industries.

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.

Contact Information

  • Central Industries Corporation Inc.
    Zoran Konevic
    (905) 272-3133