Ridley Inc.
TSX : RCL

Ridley Inc.

November 08, 2005 13:26 ET

Ridley Reports Improved Results for First Quarter of Fiscal 2006

MANKATO, MINNESOTA and WINNIPEG, MANITOBA--(CCNMatthews - Nov. 8, 2005) - Ridley Inc. (TSX:RCL), (www.ridleyinc.com) one of the leading animal nutrition companies in North America, today reported earnings results for its fiscal 2006 first quarter ended September 30, 2005.

First Quarter Results

"Ridley is pleased to report significantly improved results for the fiscal 2006 first quarter," said Steve VanRoekel, Ridley Inc. President and Chief Executive Officer. "Our net earnings for the first quarter are $2.5 million compared with a loss of $1.3 million last year."

"Our animal nutrition businesses, Ridley Feed Operations and Ridley Nutrition Solutions, are showing steady improvement as sales volumes have grown, margins have stabilized, and operating expenses have been trimmed in response to the cost reduction program implemented in October 2004. The year ahead looks very positive in many respects, and we are prepared to manage whatever challenges we might face."

MANAGEMENT'S DISCUSSION AND ANALYSIS

The following Management Discussion and Analysis as of November 8, 2005 is based on the accompanying financial statements prepared using Canadian Generally Accepted Accounting Principles ("GAAP"). All amounts are in U.S. dollars unless otherwise stated.

The following summary data is presented to assist in understanding the fiscal 2006 first quarter results:



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(Millions of U.S. dollars Three Months Ended Three Months Ended
except for EPS) 30 September 2005 30 September 2004
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Revenues $120.5 $117.8
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Net earnings (loss) from
continuing operations 2.5 (1.1)
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Loss from discontinued operations - (0.2)
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Net earnings (loss) 2.5 (1.3)
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Diluted EPS 0.18 (0.10)
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EBITDA(i) 6.5 2.3
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(i) EBITDA - Operating Income before amortization and asset
impairment loss. EBITDA does not have a standardized meaning
prescribed by Canadian GAAP and therefore is not readily comparable
to similar measures presented by other companies. However, management
believes that this measure provides investors with useful supplemental
information.


Consolidated Financial Results

Revenues increased to $120.5 million compared with $117.8 million in the same period last year, as overall sales volumes increased by 3.1%. Generally, a comparison of revenues on a dollar basis is not necessarily indicative of the strength of Ridley's business because revenues can be influenced by fluctuating commodity prices. Ridley's first quarter sales and operating results are traditionally not as strong as the colder second and third fiscal quarters from October through March, when cattle have higher energy requirements and snow cover reduces their ability to graze. Fiscal 2006 reported revenues include the revenues generated by the Company's Sweetlix feed supplement business for the full quarter. In the fiscal 2005 comparative period, Sweetlix revenues were included only from the date of acquisition on July 30, 2004. Excluding the increase attributable to Sweetlix, Ridley's sales volumes in 2006 are up by 1.6% over the previous year.

Gross profit in the first quarter of fiscal 2006 was $20.8 million compared with $17.6 million in the fiscal 2005 first quarter. The improvement in gross profit reflects higher sales volumes as well as better product mix and improved margins. Fiscal 2005 gross profit is net of approximately $1.2 million in losses on inventory and existing purchasing positions when feed ingredient markets were experiencing unusual volatility in market prices.

Overall operating expenses in the first quarter decreased by $2.3 million from the previous year, to $16.4 million. Despite continuing higher costs for energy, legal costs related to the Canadian lawsuits and health care in the U.S., operating expenses in 2006 were reduced by $1.0 million. Operating expenses in the 2005 first quarter included a $1.3 million asset impairment loss related to closing Ridley's feed mill in St. Paul, Alberta.

Operating income before interest and taxes is $4.4 million in the quarter, compared with an operating loss before interest and taxes of $1.0 million in the same period of fiscal 2005. Lower average debt levels resulted in a $0.3 million reduction in interest expense. Net earnings from continuing operations are $2.5 million in the fiscal 2006 first quarter, compared with a loss from continuing operations of $1.1 million last year.

Net earnings for the first quarter are $2.5 million (diluted earnings per share of $0.18) compared with a loss of $1.3 million in the fiscal 2005 first quarter (diluted loss per share of $0.10). EBITDA (operating income before amortization and the asset impairment loss in 2005) were $6.5 million in the fiscal 2006 first quarter, compared with $2.3 million for the previous year.

Segment Results

Ridley Feed Operations increased sales volumes by 1.2% in the first quarter of fiscal 2006. A stable feed ingredient market, better product mix and improved margins in the fiscal 2006 first quarter helped to return gross margins to more normal levels.

As noted above, fiscal 2005 first quarter results were impacted by the asset impairment charge of $1.3 million for the St. Paul closing, and by volatile markets for feed ingredients, causing $1.2 million in losses on inventory and some purchasing positions. For the quarter, Ridley Feed Operations reported operating income of $4.0 million, compared with a loss of $1.4 million in the fiscal 2005 first quarter.

Ridley Nutrition Solutions (RNS), which includes the low moisture block operations, Sweetlix feed supplements, specialty products and the equine nutrition business, McCauley Bros., Inc., recorded higher sales volumes than last year.

Sales volumes for the Sweetlix feed supplement product line are up by nearly 50%, as a full three months of operations are included in 2006 results, compared with only two months of operations in fiscal 2005. Sweetlix was acquired at the end of July 2004. Sweetlix sales and operations were adversely impacted in both periods by the effects of hurricanes and disruptions to transportation for inbound shipments of ingredients and outbound feed shipments. The Company was fortunate to have experienced no major physical damage to its plant. The low moisture block and equine operations both reported healthy sales volume increases, contributing to a 22.4% year-over-year increase in RNS sales volumes.

Despite significantly higher sales volumes, RNS has been adversely impacted by weather conditions, with the block operations facing shortages of molasses, and consequently higher costs, partly due to hurricanes damaging the sugar cane crop in the south-eastern U.S., and partly due to excess rainfall affecting the sugar beet crop in the Red River Valley. RNS has had to move production volumes about from plant to plant, depending on molasses supply, and has incurred higher transportation costs for raw materials being shipped into the plants, and finished product being shipped to customers. This situation is expected to continue until early in the second quarter when molasses supplies should return to normal. In addition, earnings in the equine business were down year over year due in part to startup costs associated with the new Chambersburg equine facility.

For the first quarter of fiscal 2006, Ridley Nutrition Solutions reported operating income of $1.3 million compared with $1.2 million in the same period of fiscal 2005.

Liquidity/Capital Resources/Cash Flow

The Company's debt to equity position is summarized below:



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Balances in $000's as of:
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30-Sep-05 30-Jun-05 30-Sep-04
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Debt(ii) 41,835 40,395 60,369
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Equity 122,680 118,722 105,986
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Debt to equity 34% 34% 57%
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(ii) Debt is defined as bank obligations and capital leases


The increase in debt from June 30, 2005 to September 30, 2005 is due primarily to an acquisition and to normal working capital requirements as a result of higher levels of activity as we enter the busy season. Conversion of the Canadian dollar-denominated bank debt to U.S. dollar equivalent using a stronger Canadian dollar exchange rate also contributed to a higher debt balance in September. Debt as at September 30, 2004 includes the cost of financing the Sweetlix acquisition.

Cash flow from earnings was $3.8 million in the 2006 first quarter, offset by $1.6 million used to finance working capital needs, resulting in $2.2 million in cash generated from operating activities. In the 2005 first quarter, cash flow from earnings was $2.2 million, and working capital needs increased by $3.4 million, attributable to higher levels of activity, resulting in $1.2 million in cash being utilized for operating activities.

Capital Expenditures

Expenditures on capital assets of $1.0 million in the first quarter compare with $1.9 million in capital expenditures a year ago.

Business Acquisitions

On August 12, 2005, Ridley purchased the remaining 49% share in McCauley Bros., Inc. (MBI) for an aggregate consideration of $1.6 million. Consideration includes an initial cash payment of $1.1 million and deferred payments totalling $0.5 million, payable in equal annual instalments over a three-year period with accrued interest at 3.7% on the balance outstanding. MBI is located in Versailles, Kentucky, and manufactures premium quality feeds and nutritional supplements for the equine market.

On July 30, 2004, Ridley acquired the assets of the livestock feed supplement business of Sweetlix, LLC (Sweetlix) for approximately $17.6 million. Sweetlix includes three manufacturing facilities located in Montgomery, Alabama; Syracuse, Indiana; and Fort Worth, Texas.

Litigation/Contingency

Ridley Inc. disclosed in April 2005 that it was named as a co-defendant in proposed class action lawsuits filed in four provinces of Canada. The Government of Canada and Ridley Inc.'s majority shareholder, Ridley Corporation Limited of Sydney, Australia, are also named as co-defendants in the lawsuits. Ridley Inc. is providing regular updates on the status of these lawsuits.

The lawsuits seek recovery of damages, including punitive damages, for losses allegedly incurred by Canadian cattle farmers as a result of the international bans on the importation of Canadian beef and cattle following the announcement on May 20, 2003 of the diagnosis of bovine spongiform encephalopathy (BSE) in a cow in Alberta.

There are substantial preliminary legal arguments raised by the defendants that must be resolved prior to any hearing to certify the lawsuits as class actions. Ridley Inc. and Ridley Corporation Limited have filed notices of motion to strike the statement of claim and dismiss the Ontario action. These motions are scheduled to be argued at a hearing in Toronto in November. Ridley Inc. believes that there are reasonable prospects that the actions against it will be struck out but, at this preliminary stage, is unable to provide any further comment as to the likely outcome of any aspect of the lawsuits.

Only after these preliminary legal arguments have been resolved, and only if the lawsuits are certified as class actions, will the courts, to the extent it remains necessary, proceed to address the merits of any factual allegations raised by the plaintiffs. The proceeding in Quebec has been stayed pending a decision in the Ontario hearing to dismiss the claims against Ridley Inc. and the other defendants. The proceedings in Alberta and Saskatchewan are also currently in abeyance.

Ridley Inc. has been examining its insurance position in respect of these lawsuits. As previously reported, all relevant insurers were notified of the plaintiffs' claims and have been kept informed of relevant developments. A number of those insurers have reserved their position, while others have adopted the position that their policies do not respond to the claims, including the legal costs currently being incurred. Based on its analysis and investigations, Ridley Inc. believes there is little prospect of any of the insurers responding favourably under these policies. Ridley Inc. will continue to fund the cost of its defence of the lawsuits from operating cash flow and may take action against the relevant insurers in the event of further developments in respect of these insurance policies and if the prospects of success appear reasonable.

Forward Looking

This report contains "forward-looking" information. The forward-looking information includes statements concerning the Company's outlook for the future, as well as other statements of beliefs, plans and strategies or anticipated events, and similar expressions concerning matters that are not historical facts. Forward-looking information and statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in, contemplated or implied by, such statements. These risks and uncertainties include the ability to make effective acquisitions and successfully integrate newly acquired businesses into existing operations, the availability and prices of raw materials and supplies, livestock disease, product pricing, the competitive environment and related market conditions, operating efficiencies, access to capital, the cost of compliance with environmental and health standards and other regulatory requirements affecting the Company's business, adverse results from ongoing litigation and actions of domestic and foreign governments. Other risks are outlined in the Risk Management section of the MD&A included in the Company's Annual Report. Unless otherwise required by applicable securities law, the Company disclaims any intention or obligation to publicly update or revise this information, whether as a result of new information, future events or otherwise. The Company cautions readers not to place undue reliance upon forward-looking statements.

Outlook

We remain optimistic that the combination of a generally favourable economic environment for livestock production in North America, considerable forward momentum in sales activities, and a continuing focus on cost containment will yield further improvements and ensure our competitiveness in a changing marketplace. The Company will continue to strengthen its balance sheet by effectively managing working capital and investing in capital projects that add plant efficiency and provide a safe work environment.

Ridley Inc., headquartered in Mankato, Minnesota and Winnipeg, Manitoba, is one of North America's leading commercial animal nutrition companies. Ridley manufactures and/or distributes a full range of animal nutrition products under a number of highly regarded trade names.

Ridley's common shares are listed on The Toronto Stock Exchange (Trading symbol: RCL).




Ridley Inc.
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Consolidated Balance Sheet (Unaudited)
(U.S.$ in thousands)
September 30, 2005 June 30, 2005 September 30, 2004
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Assets
Current assets
Cash and
short-term deposits 1,764 1,280 1,910
Accounts receivable 30,408 26,392 29,904
Inventories 39,132 37,286 35,939
Prepaids and other
current assets 2,720 1,143 3,019
Current portion of
loans receivable 2,420 2,421 3,717
Current assets of
discontinued
operations - - 1,404
Future income tax
benefit 2,630 2,013 4,375
-----------------------------------------------------
Total current
assets 79,074 70,535 80,268
-----------------------------------------------------

Loans receivable,
less current
portion 3,277 3,269 4,018
Property, plant
and equipment 96,487 95,847 95,614
Other assets 3,290 2,287 1,443
Other intangibles 4,004 4,026 53
Goodwill 49,124 47,411 49,657
Non-current
assets of
discontinued
operations - 796 1,197
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Total non-current
assets 156,182 153,636 151,982
-----------------------------------------------------

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Total assets 235,256 224,171 232,250
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-----------------------------------------------------

Liabilities and
Shareholders'
Equity
Current liabilities
Accounts payable
and accrued
liabilities 40,544 36,555 35,407
Income taxes payable 1,222 81 563
Short-term debt 4,129 2,298 2,406
Current portion
of long-term debt 3,299 6,073 12,129
Current liabilities
of discontinued
operations - 289 418
-----------------------------------------------------
Total current
liabilities 49,194 45,296 50,923
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Long-term debt,
less current
portion 34,407 32,024 45,834
Future income
tax liability 24,800 23,624 25,591
Other accrued
liabilities 4,175 4,038 3,571
Minority interest - 467 345
-----------------------------------------------------
Total long-term
liabilities 63,382 60,153 75,341
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Shareholders' Equity
Share capital 57,191 57,191 57,087
Cumulative
foreign currency
translation
adjustment 8,628 7,128 6,578
Retained earnings 56,861 54,403 42,321
-----------------------------------------------------
Total
shareholders'
equity 122,680 118,722 105,986
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Total liabilities
and shareholders'
equity 235,256 224,171 232,250
-----------------------------------------------------
-----------------------------------------------------


Ridley Inc.
---------------------------------------------------------------------
Consolidated Statement of Earnings
and Retained Earnings (Unaudited) Three Months Three Months
(U.S.$ in thousands) Ended Ended
September 30, 2005 September 30, 2004
---------------------------------------------------------------------
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Revenue 120,470 117,841
Cost of sales 99,715 100,221
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Gross profit 20,755 17,620
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Operating expenses
Selling, general and
administrative 14,095 14,961
Amortization of property,
plant and equipment 1,997 1,892
Research and development 184 398
Other amortization 105 96
Asset impairment loss - 1,305
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Total operating expenses 16,381 18,652
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Operating income (loss) 4,374 (1,032)

Interest expense 596 864
Other income, net (182) (213)
--------------------------------------

Earnings (loss) before income
taxes 3,960 (1,683)

Provision for (recovery of)
income taxes 1,502 (618)
Minority share of net earnings - 22
--------------------------------------

Net earnings (loss) from
continuing operations 2,458 (1,087)

Loss from discontinued operations - (247)
--------------------------------------

Net earnings (loss) 2,458 (1,334)
--------------------------------------
--------------------------------------
Retained earnings, beginning of
period 54,403 43,655
Current year earnings (loss) 2,458 (1,334)
--------------------------------------
Retained earnings, end of period 56,861 42,321
--------------------------------------
--------------------------------------
Earnings (loss) per share from
continuing operations - basic 0.18 (0.08)
- diluted 0.18 (0.08)
--------------------------------------
--------------------------------------
Net earnings (loss) per share
- basic 0.18 (0.10)
- diluted 0.18 (0.10)
--------------------------------------
--------------------------------------


Ridley Inc.
---------------------------------------------------------------------
Consolidated Statement of Cash Flows
(Unaudited) Three Months Three Months
(U.S.$ in thousands) Ended Ended
September 30, 2005 September 30, 2004
---------------------------------------------------------------------
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Operating activities
Net earnings (loss) for
the period 2,458 (1,334)
Add (deduct) items not
affecting cash:
Amortization of property,
plant and equipment 1,997 1,892
Future income taxes (814) 80
Loss (gain) on sale of property,
plant and equipment 60 (21)
Asset impairment loss - 1,305
Loss on discontinued assets - 154
Amortization 105 96
Other items not affecting cash 4 48
--------------------------------------

Cash flow from earnings 3,810 2,220

Net change in non-cash working
capital balances related to
operations:
Accounts receivable (3,423) (1,573)
Inventories (1,359) 1,587
Prepaid expenses (1,555) (1,369)
Accounts payable, accruals and
other liabilities 2,560 (1,379)
Income taxes payable (recoverable) 2,195 (726)
--------------------------------------
Net cash from (utilized for)
operating activities 2,228 (1,240)
--------------------------------------

Investing activities
Proceeds on disposal of property,
plant and equipment 29 25
Purchase of property, plant and
equipment (1,014) (1,874)
Decrease (increase) in loans
receivable (43) 460
Business acquisitions (1,132) (16,876)
Other investing activities (276) -
--------------------------------------
Net cash utilized for investing
activities (2,436) (18,265)
--------------------------------------

Financing activities
Repayment of short- and
long-term debt (7,326) (6,309)
Proceeds from short- and
long-term debt 7,979 23,869
Issuance of share capital - 116
--------------------------------------
Net cash from financing
activities 653 17,676
--------------------------------------

Effect of exchange rate changes
on cash 39 9
--------------------------------------

Increase (decrease) in cash and
short-term deposits 484 (1,820)
Net cash and short-term
deposits - beginning 1,280 3,801
--------------------------------------
Net cash and short-term
deposits - ending 1,764 1,981
Cash of discontinued operations - (71)
--------------------------------------
Net cash and short-term deposits 1,764 1,910
--------------------------------------
--------------------------------------


1. Significant accounting policies and basis of presentation

These interim unaudited consolidated financial statements are based on accounting principles and practices consistent with those used in preparation of the annual audited financial statements. These interim consolidated financial statements do not include all the disclosures normally included in the Company's annual consolidated financial statements. They should be read in conjunction with the Company's consolidated financial statements for the year ended June 30, 2005, as set out in the 2005 Annual Report. All amounts are in U.S. dollars unless otherwise stated.

2. Seasonality and commodity variability

The Company experiences seasonal variations in revenue, with revenue historically being strongest in the second and third quarters when the usually cold October through March weather creates increased demand for beef feed, low-moisture supplement blocks and, to a lesser degree, dairy feed. Other product lines are only marginally affected by seasonal conditions.

Commodity-based agricultural raw materials constitute a significant component of the Company's complete feed production. Fluctuating commodity prices can influence revenues as selling prices move in relation to changes in commodity prices.

3. Business acquisitions

On August 12, 2005, the Company purchased the remaining 49% share in McCauley Bros., Inc. for an aggregate consideration of $1.6 million. Consideration includes an initial cash payment of $1,132,000 and deferred payments totalling $487,000 payable in annual instalments equally over a three-year period with accrued interest at 3.7% on the balance outstanding. McCauley Bros., Inc., located in Versailles, Kentucky, manufactures premium quality feeds and nutritional supplements for the equine market. The Company previously owned 51% of McCauley Bros., Inc.

On July 30, 2004, the Company acquired the assets of the livestock feed supplement business of Sweetlix, LLC (Sweetlix) for approximately $17.6 million. Sweetlix includes three manufacturing facilities located in Montgomery, Alabama; Syracuse, Indiana; and Fort Worth, Texas.

Details of the net assets acquired on the basis of fair value, and the consideration given, were as follows:



McCauley
Bros., Inc. Sweetlix
($000) ($000)
-------------------------------
-------------------------------
Assets
Accounts receivable - 1,918
Inventory - 2,216
Prepaid expenses - 55
Property, plant & equipment - 7,388
Other intangibles - 4,050
Goodwill 1,123 3,386
Minority interest 496 -
------------------------------
1,619 19,013

Liabilities - 1,426
------------------------------

Acquisition value 1,619 17,587
------------------------------
------------------------------

Cash paid 1,132
Deferred payment 487


The above acquisitions were accounted for using the purchase method of accounting, and the results of operations of these businesses are included in the consolidated financial statements from the date of acquisition within the Ridley Nutrition Solutions business segment.

The goodwill associated with the Sweetlix acquisition is fully deductible for income tax purposes. Goodwill acquired in the purchase of McCauley Bros., Inc. is not deductible for income tax purposes.



4. Statement of cash flow disclosures

The following amounts were paid on account of interest and taxes:

Three Months Three Months
Ended Ended
Sept 30 05 Sept 30 04
($000) ($000)
--------------------------------
--------------------------------
Interest 630 799
Income taxes, net of refund 123 149
--------------------------------
--------------------------------


5. Other accrued liabilities

The Company has recorded estimated costs related to its non-contributory pension plans, post-retirement medical plan, and defined contribution plans, for the period ending September 30, 2005 and 2004, are as follows:



Three Months Three Months
Ended Ended
Sept 30 05 Sept 30 04
($000) ($000)
--------------------------------
--------------------------------
Non-contributory pension plan 333 303
Post-retirement medical costs 194 181
Defined contribution plan 341 299
--------------------------------
--------------------------------


6. Segment information

The Company's operations are conducted in two business segments as: Ridley Feed Operations and Ridley Nutrition Solutions.

Ridley Feed Operations consists of U.S. and Canadian dry feed operations. It manufactures and distributes livestock feed to customers primarily in the prairie region of Canada and the U.S. Midwest. The products include a full range of complete feeds and supplements and are marketed through a dealership network as well as directly to agricultural producers.

Ridley Nutrition Solutions consists of low moisture block operations, specialty products, Sweetlix feed supplements and the equine nutrition operations. It manufactures and distributes low moisture blocks, specialty products, feed supplements and premium quality equine feeds primarily in the U.S. and Canada.



Ridley Inc.
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Segment Information (Unaudited) Three Months Three Months
(U.S.$ in thousands) Ended Ended
September 30, 2005 September 30, 2004
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Revenue
Ridley Feed Operations 101,011 102,870
Ridley Nutrition Solutions 19,459 14,971
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Total revenue 120,470 117,841
--------------------------------------

Cost of sales
Ridley Feed Operations 84,730 89,319
Ridley Nutrition Solutions 14,985 10,902
--------------------------------------
Total cost of sales 99,715 100,221
--------------------------------------

Gross profit 20,755 17,620
--------------------------------------

Operating expenses
Ridley Feed Operations 12,309 14,982
Ridley Nutrition Solutions 3,139 2,883
Unallocated 933 787
--------------------------------------
Total operating expenses 16,381 18,652
--------------------------------------
Operating income
Ridley Feed Operations 3,972 (1,431)
Ridley Nutrition Solutions 1,335 1,186
Unallocated (933) (787)
--------------------------------------
Total operating income 4,374 (1,032)
--------------------------------------
--------------------------------------
Revenue and operating income by
country:

Revenue
U.S. 90,468 87,521
Canada 30,002 30,320
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Total revenue 120,470 117,841
--------------------------------------
--------------------------------------
Operating Income
U.S. 3,752 1,346
Canada 1,555 (1,577)
Unallocated (933) (801)
--------------------------------------
Total operating income 4,374 (1,032)
--------------------------------------
--------------------------------------


7. Litigation/Contingency

Lawsuits filed in Alberta, Saskatchewan, Quebec and Ontario against the Government of Canada also name Ridley Inc. and Ridley Corporation Limited as co-defendants.

The proposed representative plaintiffs are seeking to certify class actions to include all Canadian cattle farmers who allegedly suffered damage as a result of the imposition of international bans on the export of Canadian beef and cattle following the May 2003 diagnosis of BSE in a cow in Alberta. The Ontario action seeks a national class to include affected cattle farmers residing in the six remaining Canadian provinces.

The proposed representative plaintiffs seek general, aggravated and punitive damages on behalf of themselves and each of the proposed Canadian cattle farmer class members. Full particulars of the claims are yet to be provided.

Each of the four proceedings is at an early stage. Ridley Inc. is and will continue to, actively defend each of the actions.

At this time Ridley Inc. cannot determine what impact, if any, these proposed class actions may have on future earnings and no accruals have been made in respect of these allegations.

8. Stock option amendment

The board of directors of Ridley Inc. approved an amendment to Ridley Inc.'s stock option plan to provide option holders with a cash settlement alternative when exercising stock options. Under the amendment to the stock option plan, employees exercising options before the close of business on November 30, 2005 can elect to receive cash from the Company rather than acquiring shares and selling them into the open market. When and as this option is available to employees, the Company expects to record a compensation expense based on the total number of in-the-money-options and the prevailing stock price on options in which the option holder elects the cash alternative settlement. The company introduced a long-term incentive plan in July 2003 with the intent that it would replace the stock option plan. As such, further grants of stock options have not and will not be made.

9. Comparative amounts

Comparative amounts have been reclassified to conform to current year presentation. The reclassifications had no impact on net earnings or shareholders' equity as previously reported.




Contact Information

  • Ridley Inc.
    Steve VanRoekel
    President and CEO
    (507) 388-9412
    or
    Ridley Inc.
    Mike Mitchell
    Chief Financial Officer
    (507) 388-9410