A recap from the CC on Friday. (This taken from the Yahoo Board)
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still expect 175M rev guidance to be achieved for FY03. in answer to analyst question as to why not raise it, they said quite likely they will announce raised guidance in the next few weeks, but are still making that decision.
- 7 brokerage firms now covering compared with ZERO this time last year. Exceeded all esimates.
- Anticipate sale of Opta HQ building to close in Q3.
- Anticipate Kettle Valley plant in Washington state to commence production in Q3.
- Are now brewing and packaging some specialty teas in addition to the soymilk.
- EI Group performance on track. Outlook for second half of year stronger. Much bidding action. $1M of abrasives are used to clean each ship, ships cleaned every 3-5 years generally. Obvious increase in sales due to ships returning from middle east.
- 100M shelf offer "not being used for current operations". Current working capital adequate for their needs. "If you see an offering come out as part of that 100M, acquisition to follow shortly".
- SunOpta name change to be completed by end of FY03.
- 26-30% tax rate anticipated going forward.
- In response to question as to whether there have been any particular slowdowns or incremental costs, they said: 800K increase in energy costs compared to last year. Slow results in dairy blends. Major flood in Alexandria - had to close a couple of plants for 2 days at a cost of 100-200K total. Sales at Virginia materials somewhat slow. These costs were all absorbed though and are already reflected in earnings.
- Expect Q3 to be very strong. Q4 not much guidance, but reminder of seasonality slowdown.
- Of Q revenues, 45.9M food group, 6.7 million environmental.
- No specific timing given on new acquisitions. They take approximately six months from due diligence to closing. "We are seeing lots and lots of opportunities...and are in various stages of discussion".
- Most of their plants near or at capacity.
- Will make decision about East Coast soymilk plant by end of FY03. Cost roughly about 3M, 6-9 months to get up and running. Currently, supplying refrigerated soymilk to 3 food chains in the east and south. Club chain sales also going well. Location of new plant will depend on contracts/customers...they are in discussions with a number of accounts.
- Actively involved in helping advocate for school lunches to include soymilk. Kettle Valley currently active in working with some school systems. At least one future acquisition will help in this realm as well (should hear news next few months).
- Received 600K deposit from potential buyer for EI Group property (and plant?). They previously mentioned pursuing this possibly opportunistic sale on the last call (can relocate their equipment, save costs). Closing would take place early next year. Will consider selling the EI business next year.
- $10.8M increase in grain sales year/year for first 6 months. Selling to Japan and Korea as well as domestic. Comment that if need be, can always divert these lower-margin (5-8%) international grain sales to higher-margin domestic or international applications (i.e. soy concentrate, powder, etc.). Current crop looking good though. |
