Trimin Capital Corp.
TSX : TMN

Trimin Capital Corp.

August 15, 2005 12:58 ET

Trimin Capital Corp.: 2005 Second Quarter Financial Results

TORONTO, ONTARIO--(CCNMatthews - Aug. 15, 2005) - Trimin Capital Corp. ("Trimin") (TSX:TMN) announces its financial results for the quarter ended June 30, 2005.

For the three month period ended June 30, 2005, Trimin reported an income from continuing operations of $199,000 ($0.01 per share) on sales of $23.8 million compared with an income of $307,000 ($0.02 per share) on sales of $18.0 million for the same period last year. Net loss including discontinued operation was $3.1 million ($0.19 per share) and $480,000 for the three month period ended June 30, 2005 and 2004, respectively.

For the six month period ended June 30, 2005, Trimin reported a net loss of $456,000 ($0.03 per share) from continuing operations on sales of $41.8 million and an income of $298,000 ($0.02 per share) from continuing operations on sales of $33.3 million. For the same period, net loss including discontinued operations was $4.3 million ($0.27 per share) and $1.9 million ($0.12 per share) for 2005 and 2004, respectively.



Financial Highlights

Three Months Six Months
ended June 30 ended June 30
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($000's except per share data) 2005 2004 2005 2004
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Sales 23,824 18,008 41,769 33,363
Incom(loss) from operations 783 624 683 687
Income (loss) from continuing
operations 199 307 (456) 298
Net income (loss) including
discontinued operations (3,078) (480) (4,276) (1,886)
Earnings (loss) per share
Basic - continuing operations 0.01 0.02 (0.03) 0.02
Basic - including discontinued
operations (0.19) (0.03) (0.27) (0.12)
Diluted - continuing
operations 0.01 0.02 (0.03) 0.02
Diluted - including
discontinued operations (0.18) (0.03) (0.25) (0.11)


The following schedule and notes thereto provide a breakdown of
Trimin's financial results for the three months and six months
ended June 30, 2005 and 2004:


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Three Months ended June 30 Six Months ended June 30
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2005 2004 2005 2004
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Net Net Net Net
Income Income Income Income
($000's) Sales (Loss) Sales (Loss) Sales (Loss) Sales (Loss)
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Snack
Alliance 13,324 (486) 7,670 65 21,828 (899) 13,764 (40)
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HPG -
Discon-
tinued
operations (3,277) (787) - (3,820) - (2,184)
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Vantis 10,500 713 10,338 (191) 19,941 1,044 19,598 (179)
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Integrated
Paving
Concepts 184 191 (89) (27)
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Burntsand (64) - (123) (25)
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Dilution
gain (loss) - - - -
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Gain
on sale of
investment,
net of
income
taxes 9 - 9 214
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Stock-based
compensation,
net of
taxes (13) - (13) -
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Corporate/
other (144) 242 (385) 454
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Total 23,824 (3,078) 18,008 (480) 41,769 (4,276) 33,362 (1,886)
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Notes:

(1) Trimin's financial results consolidate the operations of 61.9% owned Snack Alliance under the proportionate interest method of consolidation and 100% owned HPG and 76.2% owned Vantis under the purchase method of consolidation. Also included, under the equity method, are its 39.8% legal ownership interest in IPC and its 8.1% indirect interest in Burntsand.

(2) Vantis' results include Vantis International Corporation from its date of acquisition in June 2002 and Lexington Services Corp. (Lexington) from its date of acquisition in November 2003. Certain comparative figures for Vantis have been restated to reflect corrections made to the Lexington purchase equation.

(3) On March 31, 2004, in conjunction with Trimin's previously announced management transition, Terry Holland acquired 4.6%, 9.1% and 9.6%, respectively, of Trimin's holdings in Snack Alliance, Vantis and Integrated Paving. This transaction resulted in a gain of $208,000 for the Company.

(4) In June 2005, Trimin decided to discontinue operations at HPG. The comparative figures have been restated to reflect this. On June 30, 2005, Trimin purchased the 22.5% minority interest in HPG from Allan Davis, a director of the Company in HPG, for $10,000.

Highlights for Second Quarter 2005

Trimin reported a net loss of $3.1 million in the second quarter of 2005 compared to a loss of $480,000 for the same period in 2004 due primarily to a write down resulting from the discontinuation of HPG's operations.

After reviewing HPG's performance in the first and second quarter, it was decided that HPG's operation should be discontinued. The cost of completing HPG's remaining contracts, severance obligations, provisions for winding up operations and a loss on the sale of the tangible assets amounted to $3.3 million in the second quarter. The tangible assets were sold to an arm's length purchaser for $3.0 million on July 15, 2005.

Snack Alliance's net sales for the second quarter increased by over 80% compared to last year primarily due to the Bristol manufacturing plant acquisition in December 2004. Private label volume from Southeast US retailers and a co-pack contract with a large branded snack company also contributed to the increase. The Bristol plant has undergone substantial changes and upgrades during the quarter to meet new Snack Alliance operating standards and new capacity requirements, resulting in significant additional costs and reduced profitability in the short-term.

Vantis experienced an increase in customer reservation of 11% in the second quarter of 2005 compared to 2004 which resulted in a revenue increase of 2% or $162,000 over the same quarter in 2004.

About Trimin Capital Corp.

Trimin Capital Corp. is a management company. Trimin's strategy is to acquire large equity interests in operating businesses - its "Partners in Industry" - and build value for its shareholders through a combination of the established skills of its corporate management and the strong operating management teams of acquired businesses.

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