Lassonde Industries Inc. Provides Preliminary Unaudited Earnings Guidance for the Fourth Quarter and Fiscal Year Ended December 31, 2018
February 16, 2019 at 04:25 am IST
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Lassonde Industries Inc. provides preliminary unaudited earnings guidance for the fourth quarter and fiscal year ended December 31, 2018. For the quarter the company expects sales to total $425 million. Excluding the foreign exchange impact and OOB's sales to maintain a comparable basis, the Company's sales should be approximately $392 million, down a little less than 3% when compared to the same quarter of fiscal 2017. Operating profit should total approximately $25 million. Profit attributable to shareholders for the fourth quarter of 2018 to be approximately $15 million, down approximately $22 million from $37.2 million in the fourth quarter of fiscal 2017. It should be noted that the fourth quarter of 2017 had benefited from a favorable $10.2 million impact following the U.S. tax reform. Excluding the impacts of the 2017 U.S. tax reform on profit, profit attributable to the company's shareholders should be down by approximately $12 million.
For the year, the company expects sales to total $1,594 million compared to sales of $1,526.1 million in fiscal 2017, an increase of slightly more than 4%. Excluding the foreign exchange impact and the sales of Old Orchard Brands, LLC to maintain a comparable basis, the Company's sales should be approximately $1,528 million, an increase of approximately 0.1% when compared to fiscal 2017. Operating profit is expected to total approximately $105 million in fiscal 2018, down by approximately $28 million from $133.3 million in fiscal 2017. During fiscal 2018, OOB-acquisition-related expenses should be approximately $2 million. OOB expects to post operating profit of approximately $1 million. Excluding the impacts of the OOB acquisition, the decrease in the Company's operating profit should be approximately $27 million. The depreciation and amortization expense should total approximately $48 million for fiscal 2018 (approximately $3 million from OOB) versus $45.2 million in fiscal 2017. Profit attributable to the Company's shareholders is expected to be approximately $66 million, down by approximately $24 million from $89.9 million in fiscal 2017. It should be noted, however, that the fiscal 2017 profit attributable to the Company's shareholders had benefited from a favorable $10.2 million impact arising from a lower federal corporate tax rate following the December 2017 U.S. tax reform. In addition, the costs of acquiring OOB are expected to have an unfavorable impact of approximately $1.3 million on the fiscal 2018 profit attributable to the Company's shareholders. When adjusted for these factors, the decrease in the profit attributable to the Company's shareholders is expected to be approximately $13 million.
Lassonde Industries Inc. is a Canada-based food and beverage company. The Company, through its subsidiaries, develops, manufactures, and markets a range of ready-to-drink juices and drinks, fruit-based snacks in the form of bars and bites as well as frozen juice concentrates in North America. The Company is a producer of fruit juices and drinks in Canada as well as a producer of store-brand shelf-stable fruit juices and drinks in the United States. It is also a producer of cranberry sauces and specialty food products, such as pasta sauces, soups as well as fondue broths and sauces. In addition, it produces apple cider and cider-based beverages and imports selected wines from several countries of origin for packaging and marketing purposes. It operates in two market segments, namely the retail segment and the food service segment. The Company operates approximately 16 plants located in Canada and the United States of America.