Lassonde Industries Inc. announces its Q3 2010 results

ROUGEMONT, QC, Nov. 11 /CNW Telbec/ - Lassonde Industries Inc. (TSX symbol: LAS.A) today announced that its net earnings reached $8.8 million, up $1.5 million over the third quarter of 2009 net earnings. The Company's net sales increased by 7.2% in the third quarter of 2010 compared to the same quarter of 2009. "We are satisfied with the third quarter results but competitive pressures are not subsiding," said Pierre-Paul Lassonde, Chairman of the Board and Chief Executive Officer of Lassonde Industries Inc.

Financial highlights (in thousands of dollars except basic and diluted earnings per share)	Third quarters ended
	October 2, 2010 (unaudited)	September 26, 2009 (unaudited)
Net sales	$136,678	$127,523
Operating income	13,759	11,545
Earnings before income taxes	12,425	10,539
Net earnings	8,789	7,282
Basic and diluted earnings per share	$1.34	$1.10

Note: These are financial highlights only. Management's Discussion and Analysis, the unaudited consolidated financial statements of Lassonde Industries Inc. and the notes thereto for the quarter ended October 2, 2010 will be available on the SEDAR website at www.sedar.com and on the website of Lassonde Industries Inc.

Financial results

The Company's net sales stood at $136.7 million in the third quarter of 2010, up 7.2% from net sales of $127.5 million reported in the third quarter of 2009. The increase in net sales was mainly attributable to higher net sales for the Company's national brands, an increase in sales of private label products and a reduction in slotting fees of $0.9 million. The growth in net sales was reduced by the unfavourable impact of exchange rates on sales denominated in U.S. dollars during the quarter. The total amount of net sales for the first nine months of fiscal 2010 was $395.6 million, up 2.8% from net sales of $384.8 million for the first nine months of fiscal 2009.

Operating income grew from $11.5 million for the third quarter of 2009 to $13.8 million for the third quarter of 2010, up $2.3 million. The increase in operating income is mostly explained by the higher net sales and lower product costs resulting from an increase in production volume, partly offset by significantly higher sourcing costs for certain concentrates. Operating income for the first nine months of 2010 was $34.6 million, up 8.4% from $31.9 million posted at the end of the first nine months of 2009.

The Company's financial expenses went from $1.0 million in the third quarter of 2009 to $1.3 million in 2010, up $0.3 million. The increase in financial expenses is explained by an additional interest expense of $0.3 million resulting from higher long-term debt. Financial expenses for the first nine months grew from $2.8 million in 2009 to $3.7 million for the current fiscal year.

Earnings before income taxes for the third quarter of 2010 were $12.4 million, up $1.9 million from earnings before income taxes of $10.5 million reported in the third quarter of 2009. Earnings before income taxes for the first nine months of 2010 stood at $30.9 million, up 6.0% from the $29.2 million reported for the first nine months of 2009.

Income taxes for the third quarter of 2010 were $3.6 million, up $0.3 million from income taxes of $3.3 million reported for the same quarter of 2009. The effective income tax rate for the third quarter of 2010 was 29.3%, compared to a rate of 30.9% for the third quarter of 2009. Income taxes for the first nine months of 2010 stood at $9.1 million, up $0.3 million from an amount of $8.8 million posted for the first nine months of 2009.

Net earnings for the third quarter of 2010 were $8.8 million, up $1.5 million from net earnings of $7.3 million recorded at the end of the third quarter of 2009. Net earnings for the first nine months of 2010 were $21.8 million while net earnings of the first nine months of 2009 were $20.4 million.

Basic and diluted earnings per share stood at $1.34 for the third quarter of 2010 and at $3.32 for the first nine months of 2010, compared to $1.10 and $3.08, respectively, for the same periods of 2009.

Cash flows from operating activities generated $13.2 million in the third quarter of 2010 compared to $11.3 million in the same quarter of 2009. Financing and investing activities used $2.4 million and $8.7 million, respectively, in the third quarter of 2010, while these activities had generated $8.2 million and used $7.6 million, respectively, during the same quarter of the previous year. Cash and cash equivalents stood at $57.2 million at the end of the third quarter of 2010 compared to cash and cash equivalents of $10.0 million at the end of the third quarter of 2009.

Outlook

Lassonde Industries Inc. relies on its innovative products to fuel its growth and stand out from its competitors. However, the Company has noted that strong competitive pressures in all of its Canadian markets continue to drive trade spending higher.

As for sourcing, prices of certain concentrates remain at levels higher than those in 2009. As a result, the Company has adjusted its selling prices based on these changes, but the impact of such adjustments on the Company's sales volumes is difficult to determine.

Despite a more challenging competitive environment, Lassonde Industries Inc. plans to maintain its business model and management style for the last quarter of 2010. Barring any major external factors or events, the Company remains confident about its ability to maintain its 2010 net sales at a level slightly higher than that experienced in fiscal 2009.

About Lassonde Industries Inc.

Lassonde Industries Inc. develops, manufactures and markets an innovative and distinctive line of fruit and vegetable juices and drinks as well as certain specialty food products such as fondue broths and fondue sauces, beans in sauce, soups, sauces and gravies, canned corn-on-the-cob, bruschetta toppings, tapenades, pestos and pasta sauces. Lassonde Industries Inc. imports selected wines from several countries of origin for packaging and marketing purposes. It also imports and markets olive oil. These products are marketed in various packagings and under several trademarks. Approximately 1,300 employees are currently employed by Lassonde Industries Inc. and contribute to its growth.

SEDAR registration number: 00002099

This press release contains forward-looking statements that are based on certain assumptions. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Additional factors are discussed in materials filed from time to time with the securities regulatory authorities in Canada. Lassonde Industries Inc. disclaims any intention or obligation to update or revise any forward-looking statements.

%SEDAR: 00002099EF

For further information:

Guy Blanchette
Vice-President and Chief Financial Officer
Lassonde Industries Inc.
450-469-4926, extension 782