Sun-Rype reports Q3 2009 financial results

TSX: SRF

KELOWNA, BC, Nov. 3 /CNW/ - Sun-Rype Products Ltd. (TSX:SRF) today released its financial results for the quarter ended September 26, 2009 .

Financial Highlights

Sun-Rype's net sales in the third quarter of 2009 were $36.1 million , compared to $37.5 million in the same period in 2008. The Company's net income for the third quarter of 2009 was $0.4 million or $0.03 per share, compared to a net loss of $0.8 million or $0.07 per share for the same period in 2008.

Sun-Rype's net sales for the three quarters ended September 26, 2009 , were $112.6 million , compared to $92.0 million in the same period in 2008. The Company's net income for the three quarters ended September 26, 2009 , was $5.9 million or $0.54 per share, compared to a net loss of $10.1 million or $0.93 per share for the first three quarters in 2008.

"Our third quarter net income was significantly lower than the previous two quarters", says David Lynn , President & CEO. "However, we recognize that our results were impacted by a combination of factors including competitive activity, non-recurring items and timing of certain expenditures. Overall, we are pleased with our year-to-date results, taking into account the challenging economic and competitive environment."

Sun-Rype Products Ltd., based in Kelowna, BC, is a manufacturer and marketer of 100% juices and 100% fruit snacks under the Sun-Rype brand. Sun-Rype is a publicly traded Canadian company with its common shares listed on the Toronto Stock Exchange under the symbol SRF.

Additional Information

The foregoing are financial highlights only. The full third quarter interim management's discussion and analysis, financial statements and accompanying notes of Sun-Rype Products Ltd. for the period ended September 26, 2009 , are available on the Canadian Securities Administrator's website at www.sedar.com and on the Company's website at www.sunrype.com. Additional information relating to Sun-Rype's operations can be found in the Company's Annual Information Form, filed with all applicable Canadian securities commissions and available for viewing on the Canadian Securities Administrator's website at www.sedar.com and on the Company's website at www.sunrype.com.

Forward Looking Statements

Statements contained in this press release, which are not based on historical fact, including without limitation, statements containing the words "may", "will", "plans", "intends", "expects", "anticipates", "believes", "estimate", "continue" and similar expressions, constitute "forward looking information" within the meaning of applicable Canadian securities laws. Forward looking statements contained in this document may involve, but are not limited to, statements relating to the Company's objectives, priorities, strategies, actions, targets, expectations and outlook. Forward looking statements are necessarily based upon assumptions and predictions with respect to the future, including but not limited to the factors referred to below. As a result, forward looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, events or developments to be materially different from any future results, events or developments expressed or implied thereby. These risks, uncertainties and other factors include, but are not limited to, changes in the consumer packaged goods industry and external market factors, as well as the factors referred to in the Company's Annual Information Form dated February 26, 2009 , and its other filings with the applicable Canadian securities regulatory authorities. In light of these uncertainties, assumptions and risks, readers are cautioned not to place undue reliance on such forward looking statements. Except as required by law, the Company assumes no obligation to update or revise such information to reflect later events or developments.

    
                           Sun-Rype Products Ltd.

     Statements of Operations, Comprehensive Income and Retained Earnings
                                 (Unaudited)
             (in thousands of dollars, except per share amounts)

    -------------------------------------------------------------------------
                        For the quarters ended   For the three quarters ended
                        ----------------------   ----------------------------
                      September 26, September 30, September 26, September 30,
                          2009          2008          2009          2008
    -------------------------------------------------------------------------
    Net sales          $    36,145   $    37,541   $   112,595   $    92,015
      Cost of sales         28,428        31,500        82,667        82,877
    -------------------------------------------------------------------------
    Gross profit             7,717         6,041        29,928         9,138
    -------------------------------------------------------------------------

    Expenses
      Selling, general,
       and administrative    6,635         6,567        19,930        23,141
      Amortization             129           393           712         1,456
      Interest                 115           318           456           565
      Foreign exchange
       loss (gain)             328           161           161          (145)
    -------------------------------------------------------------------------
                             7,207         7,439        21,259        25,017
    -------------------------------------------------------------------------

      Earnings (loss)
       before income
       taxes                   510        (1,398)        8,669       (15,879)
      Income tax expense
       (recovery)              149          (562)        2,810        (5,765)
    -------------------------------------------------------------------------

    Net income (loss)
     and comprehensive
     income (loss)     $       361   $      (836)  $     5,859   $   (10,114)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Earnings (loss)
     per share
      Basic and
      diluted          $      0.03   $     (0.07)  $      0.54   $     (0.93)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

%SEDAR: 00001572E

For further information: Don VanderZwaag, Director, Finance & Accounting, Sun-Rype Products Ltd., 1165 Ethel Street, Kelowna, BC, V1Y 2W4, Tel: [phone], Fax: [phone], [email protected], www.sunrype.com; or David Lynn, Chief Executive Officer, Sun-Rype Products Ltd., 1165 Ethel Street, Kelowna, BC, V1Y 2W4, Tel: [phone], Fax: [phone], [email protected]