Dominion Citrus Limited

Dominion Citrus Limited

November 07, 2005 17:32 ET

Dominion Citrus Limited Announces Third Quarter Net Earnings

TORONTO, ONTARIO--(CCNMatthews - Nov. 7, 2005) - Dominion Citrus Limited (TSX:DMN) -

Third Quarter 2005 Report to Shareholders

Nine months ended September 24, 2005 and September 25, 2004

Third Quarter Highlights

- Revenue of $30,620,000 down $1,917,000, or 5.9%, from last year.

- Net earnings of $448,000 down from net earnings of $676,000 reported last year.

- Fully diluted earnings per share of $0.022, down $0.010 per share from last year.

- Generated operating cash flow of $3,000, an improvement of $900,000 over the same period last year.

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

- The Company continues to be actively engaged in a process in contemplation of a possible conversion to an income fund structure and the Board hopes to be in a position shortly to announce its determinations and recommendations in this regard.

- The new refrigerated warehouse facility in Toronto opened in October 2005.

- Subsequent to quarter end, the Company declared a dividend of $0.070313 per Series A preference share, payable January 20, 2006 to shareholders of record on December 31, 2005.

Dominion Citrus Limited (TSX:DMN) announced revenues of $30,620,000 for the third quarter, a decrease of 5.9% from the same period last year and net earnings of $448,000 ($0.022 per share fully diluted) versus net earnings of $676,000 ($0.032 per share fully diluted) reported last year.

"An unprecedented competitive environment for our maple and juice products negatively impacted our third quarter results," said Jacques Lavergne, President and CEO. "New market development activities at both Delta and Apple Valley have been initiated." Lavergne continued, "These are expected to improve results in 2006".

At today's board meeting, the Directors declared a preference share dividend of $0.070313 per Series A preference share payable January 20, 2006, to shareholders of record at the close of business on December 31, 2005.

Dominion Citrus Limited 3rd Quarter Results

3 months ended September 24, 2005 & September 25, 2004

2005 2004
------------ ------------

Revenue $30,620,000 $32,537,000

Operating Income $783,000 $1,170,000

Other Income (Expense) $(96,000) $(160,000)

Income Before Portfolio Income $687,000 $1,010,000

Portfolio Income - $5,000

Net Earnings $448,000 $676,000

Basic EPS $0.023 $0.034

Fully Diluted EPS $0.022 $0.032

9 months ended September 24, 2005 & September 25, 2004

2005 2004
------------ ------------

Revenue $92,178,000 $96,988,000

Operating Income $2,336,000 $3,487,000

Other Income (Expense) $143,000 $(324,000)

Income Before Portfolio Income $2,479,000 $3,163,000

Portfolio Income $21,000 $8,000

Net Earnings $1,752,000 $2,108,000

Basic EPS $0.085 $0.103

Fully Diluted EPS $0.081 $0.096

Fiscal 2005 Outlook

Weather conditions, which are difficult to forecast, have adversely impacted the first nine months of 2005 and management believes the segments of the food industry in which the Company participates will remain highly competitive and result in continuing volume and margin pressures. 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
    416-242-8341 ext. 249
    Dominion Citrus Limited
    Media: J. L. Lavergne
    President & CEO
    416-242-8341 ext. 250