Dominion Citrus Limited

Dominion Citrus Limited

August 08, 2005 15:01 ET

Dominion Citrus Limited Announces Second Quarter Net Earnings

TORONTO, ONTARIO--(CCNMatthews - Aug. 8, 2005) - Dominion Citrus Limited (TSX:DMN) -

Second Quarter Highlights

- Revenue of $32,814,000 down $1,600,000, or 4.6%, from last year.

- Net earnings of $701,000 up from net earnings of $605,000 reported last year.

- Fully diluted earnings per share of $0.030, up $0.004 per share from last year.

- The Company declared a semi-annual dividend of $0.070313 per preference share, which was paid in July.

- Generated operating cash flow before changes in working capital of $973,000.

- The Company continues to pursue the conversion to an income trust.

- The new processing and refrigerated warehouse facility in Toronto is scheduled to open in Q-3, 2005.

- Subsequent to quarter end, the Company declared a semi-annual dividend of $0.025 per common share, payable September 29, 2005 to shareholders of record on September 12, 2005.

- Hired an experienced sales and marketing executive with food industry experience for Delta.

Dominion Citrus Limited (TSX:DMN) announced revenues of $32,814,000 for the second quarter, a decrease of 4.6% from the same period last year and net earnings of $701,000 ($0.030 per share fully diluted versus net earnings of $605,000 ($0.026 per share fully diluted) reported last year.

"Poor growing conditions in key U.S. production areas, lower commodity pricing on products processed by the Company and reduced orders for maple syrup impacted our second quarter performance," said Jacques Lavergne, President and CEO. "The 2005 results also include a $400,000, pre tax, favourable settlement of a lawsuit whereas the 2004 results included $128,000, pre tax, proceeds and reserve adjustments related primarily to an insurance settlement."

Lavergne continued, "We believe that we have stabilized revenues at Delta and continue to pursue other initiatives such as the new warehouse that should position us for future growth".

Dominion Citrus Limited 2ND Quarter Results

3 months ended June 25, 2005 & June 26, 2004

2005 2004

Revenue $32,814,000 $34,414,000

Operating Income $622,000 $1,024,000

Other Income (Expense) $279,000 $(172,000)

Income Before Portfolio Income $901,000 $852,000

Portfolio Income - $1,000

Net Earnings $701,000 $605,000

Basic EPS $0.032 $0.027

Fully Diluted EPS $0.030 $0.026

6 months ended June 25, 2005 & June 26, 2004

2005 2004

Revenue $61,558,000 $64,451,000

Operating Income $1,553,000 $2,317,000

Other Income (Expense) $239,000 $(164,000)

Income Before Portfolio Income $1,792,000 $2,153,000

Portfolio Income $21,000 $3,000

Net Earnings $1,304,000 $1,432,000

Basic EPS $0.062 $0.069

Fully Diluted EPS $0.059 $0.064

Fiscal 2005 Outlook

The segments of the food industry in which the Company participates will remain highly competitive resulting in continuing volume and margin pressures while the impact of weather, which has had a negative impact on the first half, is difficult to forecast. Consolidation of participants in the business segments in which we compete remains the single largest opportunity for future margin and cost improvement.

About Dominion

Dominion is a diversified food company supplying fresh produce, premium juices and maple syrup to a wide variety of customers in retail, foodservice and food distribution businesses. The Company provides procurement, processing, repacking, sorting, grading, warehousing and distribution services to over 400 customers, with its major domestic markets being Ontario and Quebec. The Company also supplies products to customers in the United States and Europe. The website can be accessed at

Caution regarding Forward-Looking Statements

This release contains statements, which, to the extent that they are not a recitation of historical fact, may constitute "forward-looking statements". Forward-looking statements may include financial and other projections, as well as statements regarding our future plans, objectives or performance, or our underlying assumptions. The words "estimate", "anticipate", "believe", "expect", "intend" or other similar expressions of future or conditional verbs such as "will", "should", "would" and "could" are intended to identify forward-looking statements. Persons reading this press release are cautioned that such statements are only expectations, and that our actual results or performance may be materially different.

Forward-looking information involves certain risks, assumptions, uncertainties and other factors which may cause actual future results to differ materially from those expressed or implied in any forward-looking statements.

Readers should not place undue reliance on these forward-looking statements when making decisions, and should consider the date onto which the statements were made. Except as required by applicable security law, management disclaims any intention or obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact Information

  • Dominion Citrus Limited
    Investors: E. A. Atkinson
    VP Finance, CFO & Corporate Secretary
    (416) 521-6288
    Dominion Citrus Limited
    Media: J. L. Lavergne
    President & CEO
    (416) 521-6289