2002 Financial Results - A Profitable Year for Unibroue
CHAMBLY, QUEBEC, March 21st,2003 -- Unibroue is pleased to announce that in its fourth quarter ending December 31, 2002, its revenues were $6,616,716 compared to $5,893,612 for the same period in the previous year. This represents an increase of 12.3%. Net earnings for the quarter were $315,117 compared to $82,661 in the previous corresponding quarter.
On an annual basis, cumulative sales totaled $23,622,172 compared
to $21,579,887 the previous year, an increase of 9.5%. Net
earnings increased by 57.8%, rising from $608,754 to $960,585.
Net earnings per share in 2002 were $0.16, while in 2001 they
were $0.10. During the year, Unibroue continued its buyback of
shares in compliance with conditions stipulated by law. It bought
back 168,700 shares in 2002.
In 2002, sales in Quebec increased by 11.7% to $17,759,784. In
the rest of Canada, the increase was 12.8%. Given that industry
beer sales grew by only 0.5% in Quebec and were flat in the other
provinces, Unibroue's results are very satisfactory.
"Investments in our sales force have started to yield results
despite the strong, relentless competition from the big
breweries, in particular when it comes to buying space and
air-time," said Andre Dion, president of Unibroue.
Refermented beers, known as sipping beers, accounted for the
lion's share of the increase, contributing positively to the
increased profits. Unibroue's new beers, Ephemere and La Terrible
and La Fringante, which are sold by the Societe des Alcools du
Quebec, also contributed to the increase.
In international sales, exports to Europe and Asia dropped by
45%, forcing the company to review its strategy over the coming
months.
Once again, it was in the United States that the increase was
strongest at 29% in 2002, with sales at year-end representing
15.3% of total revenues, a significant increase over three years
ago, when they represented 8.3%. "Consolidated net revenues from
our activities in the United States contributed 28.6% to net
earnings, despite the fact that Canadian excise taxes are three
times higher than those levied on American microbrewers," Mr.
Dion added.
"In this regard, although the latest federal government budget
did not answer our requests for parity, we will not give up our
demands. In the meantime, we will continue to manage our
operations and administration prudently," concluded Mr. Dion.
Unibroue Inc.
Consolidated balance sheets
December 31, 2002 and 2001
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2002 2001
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$ $
ASSETS
Current assets
Cash 2,300,412 1,714,362
Short-term investments,
at cost equivalent to the market value 399,768
Accounts receivable 3,891,360 4,435,008
Income taxes receivable 237,419 327,064
Inventories 4,127,892 3,417,162
Prepaid expenses 346,353 306,388
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10,903,436 10,599,752
Fixed assets 21,835,448 21,088,571
Other assets 1,249,578 1,397,010
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33,988,462 33,085,333
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LIABILITIES
Current liabilities
Accounts payable and accrued liabilities 3,198,828 2,256,547
Instalments on long-term debt 937,441 952,268
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4,136,269 3,208,815
Long-term debt 5,125,200 5,992,043
Future income taxes 2,573,482 2,248,000
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11,834,951 11,448,858
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SHAREHOLDERS' EQUITY
Capital stock 8,669,648 9,413,615
Contributed surplus 977,973 677,555
Retained earnings 12,505,890 11,545,305
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22,153,511 21,636,475
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33,988,462 33,085,333
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Consolidated earnings and retained earnings
Years ended December 31, 2002 and 2001
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2002 2001
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$ $
Sales 23,622,172 21,579,887
Cost of goods sold 11,823,933 11,539,905
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Gross margin excluding depreciation
and amortization 11,798,239 10,039,982
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Selling, distribution and
market development expenses 6,428,565 5,464,460
Administrative expenses 1,240,171 1,078,665
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7,668,736 6,543,125
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Earnings before depreciation and
amortization, interest and income taxes 4,129,503 3,496,857
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Depreciation and amortization 2,073,411 1,832,699
Net interest expense 674,750 731,590
Foreign exchange gain (13,693) (13,948)
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2,734,468 2,550,341
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Earnings before income taxes 1,395,035 946,516
Income taxes 434,450 337,762
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Net earnings 960,585 608,754
Retained earnings, beginning of year 11,545,305 10,936,551
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Retained earnings, end of year 12,505,890 11,545,305
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Earnings per common share
Basic 0.16 0.10
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Diluted 0.16 0.10
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Consolidated statments of cash flows
Years ended December 31, 2002 and 2001
2002 2001
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$ $
OPERATING ACTIVITIES
Net earnings 960,585 608,754
Non-cash items
Depreciation of fixed assets 1,759,982 1,637,472
Amortization of other assets 313,429 195,227
Future income taxes 325,482 443,764
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Cash flow 3,359,478 2,885,217
Changes in working capital items 824,879 335,739
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Cash flows from operating activities 4,184,357 3,220,956
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INVESTING ACTIVITIES
Short-term investments 399,768 361,486
Fixed assets (2,506,859) (1,939,614)
Other assets (165,997) (490,394)
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Cash flows from investing activities (2,273,088) (2,068,522)
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FINANCING ACTIVITIES
Long-term loans 314,295
Repayment of long-term debt (881,670) (741,198)
Redemption of shares (443,549) (405,659)
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Cash flows from financing activities (1,325,219) (832,562)
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Net increase (decrease) in cash
and cash equivalents 586,050 319,872
Cash and cash equivalents, beginning of year 1,714,362 1,394,490
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Cash and cash equivalents, end of year 2,300,412 1,714,362
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