TORONTO, Apr 26, 2006 (Canada NewsWire via COMTEX News Network) — Maple Leaf Foods Inc. (TSX:MFI) today reported
its financial results for the first quarter ended March 31, 2006.
“We made good progress in earnings recovery during our first quarter of
2006, as we addressed factors that challenged us in late 2005,” said Michael
H. McCain, President and CEO. “However, as expected, protein markets were weak
on a number of fronts coming into this year.”
“We are delighted with the performance of our balanced portfolio in the
midst of these very, very challenging protein markets around the world. We
have been successful implementing price increases to offset the inflationary
effects of higher energy costs. We achieved excellent results from our
consumer foods and fresh bakery operations, benefiting from innovative product
marketing and merger synergies. These achievements were successful in muting
the ongoing impact of weak fresh pork and poultry markets, driven by currency
challenges and global supply and demand of all proteins.”
Sales for the first quarter decreased 5% to $1.4 billion compared with
$1.5 billion for the prior year, primarily due to lower commodity prices of
export products.
Earnings from operations before restructuring costs decreased to
$51.8 million from $61.2 million last year. Earnings from operations for the
first quarter last year exclude $13.2 million ($8.3 million after tax and
minority interest) in restructuring costs. Management believes that this is
the most appropriate basis on which to evaluate operating results, as
restructuring costs are not representative of continuing operations.
Net earnings declined to $17.3 million ($0.14 per share) from
$21.1 million ($0.17 per share) excluding restructuring costs in the first
quarter last year. Including restructuring costs, net earnings for the quarter
in 2005 were $12.7 million ($0.10 per share).
Operating Review
—————-
The Company’s Meat Products Group and the Agribusiness Group together
comprise the Protein Value Chain operations, which are involved in producing
animal protein products. These operations are highly interrelated and are
strategically linked through the Company’s Vertical Coordination business
model. While each operation maintains a strong external customer focus, they
are tightly coordinated to deliver superior performance where their operations
intersect. Accordingly, it is more meaningful to review the combined results
of the Protein Value Chain rather than each segment independently.
The following table, which forms the basis of discussion in this document
of the Company’s results of operations, reflects operating earnings by
business segment before restructuring costs:
<< Earnings from Operations ------------------------ ($ millions) First Quarter -------------------------- 2006 2005 Change ---- ---- ------ Meat Products Group 13.7 18.7 (26%) Agribusiness Group 13.4 21.9 (39%) -------------------------- Protein Value Chain 27.1 40.6 (33%) Bakery Products Group 24.7 20.6 20% -------------------------- 51.8 61.2 (15%) -------------------------- -------------------------- Protein Value Chain -------------------
Protein Value Chain earnings for the first quarter declined 33% to
$27.1 million from $40.6 million last year, primarily due to lower earnings
from pork operations and reduced earnings from hog production operations.
Energy costs, which impacted the Company’s results in the back half of 2005,
are being addressed through price increases.
Meat Products Group (branded value-added prepared meat products; fresh, frozen and branded value-added pork products; fresh, frozen and branded value-added chicken and turkey products; and global food marketing, distribution and trading)
Meat Products Group sales for the first quarter decreased 10% to
$924 million primarily as a result of lower commodity pork prices and a
decline in pork sales values and volume to Japan.
Earnings from operations for the first quarter declined 26% to
$13.7 million from $18.7 million last year, primarily due to lower profits
from pork sales and higher energy and indirect related costs. Margins in the
Japanese market were impacted by a 19% depreciation of the Japanese yen
against the Canadian dollar, and challenges in achieving compensatory price
increases due to the current global protein markets. Frozen pork exports to
this market also declined compared to last year. The profitability of North
American fresh pork and poultry operations were also pressured by increased
quantities of protein in the market and resulting lower prices.
The consumer foods operations earnings improved significantly in the
quarter, benefiting from lower raw material costs, price increases to offset
higher energy and related costs, as well as costs synergies related to the
Schneider Foods merger. This business continues to benefit from leading brands
and market shares, and consumer trends towards ready-to-eat meal solutions.
Extending its leadership in the fast growing Canadian “home meal assembly”
market, Maple Leaf launched Grilled Meat Strips, a line of seasonal frozen and
refrigerated pre-cooked chicken and beef strips.
Agribusiness Group (research, development and supply of quality livestock nutrition products and services; pet food; swine production; and animal by-products recycling)
Agribusiness Group sales for the first quarter increased 8% to
$201 million from $186 million last year, largely due to increased rendering
sales.
Earnings from operations for the first quarter declined 39% to
$13.4 million from $21.9 million last year. A 17% decline in hog prices and
currency impact on the Company’s hog production operations substantially
reduced earnings compared to the first quarter last year. The Company has a
number of measures in place to restore competitiveness in this business, which
has been significantly affected by the decline in the U.S. dollar and a
corresponding lower selling price for hogs. The Company had effective
ownership of 22% of the hogs it processed in the first quarter. Earnings from
rendering operations increased in the quarter as a result of volume and
service charge increases to cover high energy and related costs. The Company
also commissioned its new biodiesel plant in Quebec, where it converts
inedible tallow into an alternate fuel for industrial and commercial
applications.
Bakery Products Group (fresh, frozen and branded value-added bakery products, including frozen par-baked bakery products; and specialty pasta and sauces)
Bakery Product Group sales for the first quarter increased 4% to
$301 million compared to $289 million last year driven by improvement in sales
mix and price increases, offset by some short term market softness.
Earnings from operations in the first quarter increased 20% to
$24.7 million compared to $20.6 million last year, due to a very strong
contribution from the fresh bakery operations. This business benefited
significantly from growth in branded and higher margin higher nutrition
categories as part of its overall sales mix. A focus on innovation and brand
building continues to drive significant margin and market expansion. In the
first quarter, the Company launched Dempster’s Smart, a white bread product
made with a new enriched whole wheat flour that provides the health attributes
of whole grain bread. This is the first product of its type in the Canadian
market, and provides a higher nutrition alternative to white bread consumers,
who represent a large segment of the Canadian bread market. The business also
benefited from a price increase implemented in February to offset high fuel
prices.
Frozen bakery earnings declined despite increased volumes, largely due to
higher freight and energy costs, due to the slower pace of price increases in
this market. Earnings from the U.K. Bakery operations increased in the
quarter, benefiting from the commissioning of the new bagel plant in
Rotherham, England early in 2005 and related sales and earnings growth. This
plant is the largest bagel producer in the U.K., and in addition to meeting
rising consumer demand for bagels in the U.K., is manufacturing for export
markets including the Netherlands, Iceland and Ireland. The pasta business
also increased earnings in the quarter due to increased volume and sales of
higher margin products.
Cash Flow and Financing
———————–
Interest expense for the first quarter of $24.2 million compared to
$25.0 million last year as lower debt balances were mostly offset by higher
interest rates. At March 2006, 86% of indebtedness was not exposed to interest
rate fluctuations.
Cash used in operations of $18.7 million compared to $40.9 million last
year, an improvement of $22.2 million. This improvement was due to an increase
in the Company’s accounts receivable securitization program of $33.8 million.
This was offset by increased contributions to the Company’s pension plans
during the quarter.
Total debt, net of cash balances, of $1.1 billion as at March 31, 2006
decreased from $1.2 billion in the prior year.
Capital expenditures on plant and equipment for the first quarter
decreased to $25.8 million from $40.0 million last year due to reduced
spending in the Meat and Agribusiness Groups.
Other Income
————
Other income for the first quarter of $2.0 million compared to an expense
of $0.5 million reflecting a gain on the sale of real estate in 2006 and a
loss on conversion of a convertible debenture in the first quarter of 2005.
Acquisitions
————
During the quarter, the Company made two acquisitions totalling
$5.3 million. In March 2006, Canada Bread acquired the assets of Harvestime
Limited (“Harvestime”), a U.K.-based bakery. This acquisition broadens the
U.K. bakery’s operating capabilities to manufacture par-baked bread products
and also positions the Company as a major supplier to the in-store bakery
market. Also in the quarter, the Company purchased the assets of a Quebec
hatchery which supplies chick embryos for production of influenza vaccines.
Forward-Looking Statements
————————–
This document contains, and the Company’s oral and written public
communications often contain, forward-looking statements that are based on
current expectations, estimates, forecasts and projections about the
industries in which the Company operates and beliefs and assumptions made by
the management of the Company. Such statements include, but are not limited
to, statements with respect to our objectives and goals, as well as statements
with respect to our beliefs, plans, objectives, expectations, anticipations,
estimates and intentions. Words such as “expect,” “anticipate,” “intend,”
“attempt,” “may,” “plan,” “believe,” “seek,” “estimate,” and variations of
such words and similar expressions are intended to identify such
forward-looking statements. These statements are not guarantees of future
performance and involve assumptions and risks and uncertainties that are
difficult to predict. Therefore, actual outcomes and results may differ
materially from what is expressed, implied or forecasted in such
forward-looking statements. The Company does not intend, and the Company
disclaims any obligation to update any forward-looking statements, whether
written or oral, or whether as a result of new information, future events or
otherwise. Refer to the Company’s annual report, management proxy circular,
annual information form and other filings with the Ontario Securities
Commission and Toronto Stock Exchange for further information on risks and
uncertainties that could cause actual results to differ materially from
forward-looking statements.
These forward-looking statements are based on a variety of factors and
assumptions including, but not limited to: the condition of the Canadian and
U.S. economies, the rate of appreciation of the Canadian dollar versus the
U.S. dollar and Japanese Yen, the availability and prices of livestock, raw
materials, energy and supplies, product pricing, the competitive environment
and related market conditions, operating efficiencies, access to capital, the
cost of compliance with environmental and health standards, adverse results
from ongoing litigation and actions of domestic and foreign governments. These
assumptions have been derived from information currently available to the
Company including information obtained by the Company from third-party
industry analysts. Actual results may differ materially from those predicted
by such forward-looking statements. While the Company does not know what
impact any of these differences may have, its business, results of operations,
financial condition and the market price of its securities may be materially
adversely affected. Factors that could cause actual results or outcomes to
differ materially from the results expressed or implied by forward-looking
statements include, among other things: the risks posed by food contamination,
consumer liability and product recalls; the risks related to the health status
of livestock; the risks related to the creditworthiness of customers to whom
the Company extends credit; the Company’s exposure to currency exchange risks;
the impact of international events on commodity prices and the free flow of
goods; the cyclical nature of the cost and supply of hogs and the pork market
generally; the risks posed by compliance with extensive government regulation;
the impact of the rate of duty imposed by the United States government on the
shipment of live swine to the United States; the risk due to the consolidating
customer environment; leverage risk and the risk posed by pandemic.
Other Matters
————-
Maple Leaf Foods declared a dividend of $0.04 per share payable on
June 30, 2006, to shareholders of record on June 9, 2006.
Maple Leaf Foods Inc. is a leading Canadian food processing company
committed to delivering quality food products to consumers around the world.
Headquartered in Toronto, Canada, the Company employs approximately
24,000 people at its operations across Canada and in the United States, Europe
and Asia. The Company had sales of $6.1 billion in 2005.
An investor presentation related to the Company’s first quarter financial
results is available at www.mapleleaf.com and can be found under Investor
Relations on the Quarterly Results page. A conference call will be held at
2:30 p.m. EDT on April 26, 2006 to review Maple Leaf Foods’ first quarter
financial results. To participate in the call, please dial 416-641-6113 or
866-542-4239. For those unable to participate, playback will be made available
an hour after the event at 416-695-5800 / 800-408-3053 (Passcode 3182617
followed by the number sign).
A webcast presentation of the first quarter financial results will also
be available at http://investor.mapleleaf.ca at 2:00 p.m. EDT via a link. An
archived replay of the webcast will be available following the call at each of
the above links.
Consolidated Financial Statements (Expressed in Canadian dollars) MAPLE LEAF FOODS INC. Three months ended March 31, 2006 and 2005 MAPLE LEAF FOODS INC. Consolidated Balance Sheets (In thousands of Canadian dollars) ------------------------------------------------------------------------- As at As at As at March 31, March 31, December 31, 2006 2005 2005 ------------------------------------------------------------------------- (Unaudited) (Unaudited) ASSETS Current assets Cash and cash equivalents $ 8,674 $ 89,011 $ 80,502 Accounts receivable (Note 3) 230,111 277,953 247,014 Inventories 432,792 417,212 400,848 Future tax asset - current 15,896 20,020 15,329 Prepaid expenses and other assets 11,888 14,035 12,104 ----------------------------------------------------------------------- 699,361 818,231 755,797 Investments in associated companies 48,262 83,824 61,939 Property and equipment 1,151,116 1,090,020 1,137,317 Other long-term assets 268,097 232,875 261,907 Future tax asset - non-current 39,881 32,353 38,499 Goodwill 848,032 850,732 847,853 Other intangibles 86,350 81,552 86,468 ------------------------------------------------------------------------- $ 3,141,099 $ 3,189,587 $ 3,189,780 ------------------------------------------------------------------------- ------------------------------------------------------------------------- LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable and accrued charges $ 629,275 $ 559,425 $ 669,941 Income and other taxes payable 18,803 17,783 31,727 Current portion of long-term debt 102,584 64,049 110,428 ----------------------------------------------------------------------- 750,662 641,257 812,096 Long-term debt 1,037,077 1,250,112 1,032,829 Future tax liability 55,172 43,359 56,183 Other long-term liabilities 196,130 247,835 202,576 Minority interest 91,147 76,831 87,425 Shareholders' equity 1,010,911 930,193 998,671 ------------------------------------------------------------------------- $ 3,141,099 $ 3,189,587 $ 3,189,780 ------------------------------------------------------------------------- ------------------------------------------------------------------------- The accompanying notes to the consolidated financial statements are an integral part of these statements. MAPLE LEAF FOODS INC. Consolidated Statements of Earnings (In thousands of Canadian dollars, except share amounts) ------------------------------------------------------------------------- Three months ended March 31, (Unaudited) 2006 2005 ------------------------------------------------------------------------- (As restated) (Note 1(a)) Sales $ 1,425,951 $ 1,500,643 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Earnings from operations before restructuring costs 51,802 61,150 Restructuring costs (Note 2) - 13,157 ------------------------------------------------------------------------- Earnings from operations 51,802 47,993 Other income (expense) (Note 4) 1,969 (542) ------------------------------------------------------------------------- Earnings before interest and income taxes 53,771 47,451 Interest expense 24,215 25,046 ------------------------------------------------------------------------- Earnings before income taxes 29,556 22,405 Income taxes 9,829 7,554 ------------------------------------------------------------------------- Earnings before minority interest 19,727 14,851 Minority interest 2,455 2,103 ------------------------------------------------------------------------- Net earnings $ 17,272 $ 12,748 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Earnings per share - basic (Note 7) $ 0.14 $ 0.10 Earnings per share - diluted (Note 7) $ 0.13 $ 0.10 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Weighted average number of shares (millions) 127.7 126.0 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Consolidated Statements of Retained Earnings (In thousands of Canadian dollars) ------------------------------------------------------------------------- Three months ended March 31, (Unaudited) 2006 2005 Retained earnings, beginning of period $ 231,807 $ 159,129 Net earnings 17,272 12,748 Dividends declared ($0.04 per share; 2005: $0.04 per share) (5,100) (5,050) Premium on repurchase of share capital (Note 6) (3,456) - ------------------------------------------------------------------------- Retained earnings, end of period $ 240,523 $ 166,827 ------------------------------------------------------------------------- ------------------------------------------------------------------------- The accompanying notes to the consolidated financial statements are an integral part of these statements. MAPLE LEAF FOODS INC. Consolidated Statements of Cash Flows (In thousands of Canadian dollars) ------------------------------------------------------------------------- Three months ended March 31, (Unaudited) 2006 2005 ------------------------------------------------------------------------- CASH PROVIDED BY (USED IN) Operating activities Net earnings $ 17,272 $ 12,748 Add (deduct) items not affecting cash: Depreciation and amortization 35,522 32,620 Stock-based compensation 2,591 1,768 Minority interest 2,455 2,103 Future income taxes (2,854) (4,538) Undistributed earnings of associated companies (137) (1,276) Loss on redemption of convertible debenture - 1,108 Gain on sale of property and equipment (566) (171) Loss on sale of investments 8 11 Other 3,089 (1,372) Change in other long-term receivables 1,587 6,036 Increase in pension asset (12,441) (5,627) Change in operating working capital (65,242) (84,306) ----------------------------------------------------------------------- (18,716) (40,896) Financing activities Dividends paid (5,100) (5,050) Dividends paid to minority interest (655) (311) Increase (decrease) in long-term debt (13,045) 55,830 Increase in share capital (Note 6) 2,943 4,723 Shares repurchased for cancellation (Note 6) (6,229) - Other 2,057 758 ----------------------------------------------------------------------- (20,029) 55,950 Investing activities Additions to property and equipment (25,814) (39,958) Proceeds from sale of property and equipment 3,439 3,703 Purchase of net assets of businesses (Note 8) (5,323) (2,746) Change in other investments, net (5,265) - Other (120) 1,188 ----------------------------------------------------------------------- (33,083) (37,813) Decrease in cash and cash equivalents (71,828) (22,759) Cash and cash equivalents, beginning of period 80,502 111,770 ------------------------------------------------------------------------- Cash and cash equivalents, end of period $ 8,674 $ 89,011 ------------------------------------------------------------------------- ------------------------------------------------------------------------- The accompanying notes to the consolidated financial statements are an integral part of these statements. MAPLE LEAF FOODS INC. Segmented Financial Information (In thousands of Canadian dollars) ------------------------------------------------------------------------- Three months ended March 31, (Unaudited) 2006 2005 ------------------------------------------------------------------------- (As restated) (Note 1(a)) Sales Meat Products Group $ 923,527 $ 1,025,887 Agribusiness Group 201,081 186,065 Bakery Products Group 301,343 288,691 ------------------------------------------------------------------------- $ 1,425,951 $ 1,500,643 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Earnings from operations, before restructuring costs Meat Products Group $ 13,727 $ 18,656 Agribusiness Group 13,344 21,851 Bakery Products Group 24,731 20,643 ------------------------------------------------------------------------- $ 51,802 $ 61,150 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Additions to property and equipment Meat Products Group $ 11,028 $ 17,759 Agribusiness Group 4,367 9,743 Bakery Products Group 10,419 12,456 ------------------------------------------------------------------------- $ 25,814 $ 39,958 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Depreciation and amortization Meat Products Group $ 16,993 $ 16,353 Agribusiness Group 6,952 5,370 Bakery Products Group 11,577 10,897 ------------------------------------------------------------------------- $ 35,522 $ 32,620 ------------------------------------------------------------------------- ------------------------------------------------------------------------- ------------------------------------------------------------------------- As at As at As at March 31, March 31, December 31, 2006 2005 2005 ------------------------------------------------------------------------- (Unaudited) (Unaudited) (As Restated) (Note 1(b)) Total assets Meat Products Group $ 1,502,768 $ 1,566,451 $ 1,501,295 Agribusiness Group 692,870 631,358 688,766 Bakery Products Group 706,094 697,529 694,519 Non-allocated assets 239,367 294,249 305,200 ------------------------------------------------------------------------- $ 3,141,099 $ 3,189,587 $ 3,189,780 ------------------------------------------------------------------------- ------------------------------------------------------------------------- MAPLE LEAF FOODS INC. Notes to Consolidated Financial Statements (Tabular amounts in thousands of Canadian dollars, except share amounts) Three months ended March 31, 2006 and 2005 ------------------------------------------------------------------------- 1. SIGNIFICANT ACCOUNTING POLICIES The unaudited interim consolidated financial statements should be read in conjunction with the annual consolidated financial statements for the year ended December 31, 2005. These unaudited interim consolidated financial statements have been prepared in accordance with Canadian generally accepted accounting principles using the same accounting policies as were applied in the consolidated financial statements for the year ended December 31, 2005, except for the following: a) Accounting changes Effective January 1, 2006 the Company retroactively adopted, with restatement of prior periods, the guidance presented in EIC Abstract 156 "Accounting by a Vendor for Consideration Given to a Customer including a Reseller of the Vendor's Products". The EIC requires vendors to classify certain consideration provided to customers as a reduction of revenue rather than as cost of sales unless the vendor receives, or will receive an identifiable benefit in exchange for the consideration. The impact of the adoption of this standard was a reduction in sales during the quarter of approximately $90.7 million (2005: 81.6 million). b) Comparative figures The December 31, 2005 segmented total assets for the purposes of the segmented financial information have been revised to reflect the allocation of certain assets relating to Schneiders' acquisition that are now being managed by the Agribusiness group. Certain other 2005 comparative figures have been reclassified to conform to the financial statement presentation adopted in 2006 and year-end 2005. 2. RESTRUCTURING COSTS During the first quarter of 2005, the Company recorded $13.2 million in restructuring costs ($8.8 million after-tax) in respect of certain plant closures and operational restructuring for several of its businesses associated with the integration of Schneider Corporation ("Schneider Foods"), the closure of the Company's bakery in Peterborough, England and certain other operational restructuring items. Of the $13.2 million, $5.0 million represents the write-down of certain capital assets that were disposed of or that have become impaired as a result of restructuring and $8.2 million relates to provisions for employee terminations, facility exit costs, and other restructuring costs. Of the $8.2 million in provisions, $0.5 million was paid during the quarter (2005: $nil), leaving an outstanding balance of $5.0 million as at March 31, 2006. 3. ACCOUNTS RECEIVABLE Under revolving securitization programs, the Company has sold, with limited recourse, certain of its trade accounts receivable to financial institutions. The Company retains servicing responsibilities and assumes limited recourse obligations for delinquent receivables. At March 31, 2006, trade accounts receivable being serviced under this program amounted to $238.0 million (March 31, 2005: $204.2 million; December 31, 2005: $230.1 million). 4. OTHER INCOME (EXPENSE) --------------------------------------------------------------------- Three months ended March 31, 2006 2005 --------------------------------------------------------------------- Earnings (loss) from real estate operations $ 1,178 $ (142) Gain on sale of property and equipment 566 171 Earnings from associated companies 137 186 Dividends received 32 230 Loss on redemption of convertible debenture - (1,108) Other 56 121 --------------------------------------------------------------------- $ 1,969 $ (542) --------------------------------------------------------------------- --------------------------------------------------------------------- 5. PENSIONS During the quarter, the Company recorded income of $2.9 million related to net benefit plan income including post-retirement benefit costs (2005: $1.0 million). 6. SHARE CAPITAL The following table sets forth the continuity for shares issued and outstanding during the quarter and the corresponding value: --------------------------------------------------------------------- Number of shares Share capital ------------------------- --------------------- 2006 2005 2006 2005 --------------------------------------------------------------------- Opening balance 127,704,812 125,174,627 $ 765,666 $ 731,291 Exercise of options 252,767 416,069 2,943 4,723 Repurchased for cancellation(i) (461,900) - (2,773) - Conversion of convertible debentures - 763,933 - 12,217 --------------------------------------------------------------------- 127,495,679 126,354,629 $ 765,836 $ 748,231 --------------------------------------------------------------------- --------------------------------------------------------------------- (i) During the quarter, the Company repurchased for cancellation 461,900 common shares pursuant to a normal course issuer bid at an average exercise price of $13.48 per share. The excess of the purchase cost over the book value of the shares was charged to retained earnings. 7. EARNINGS PER SHARE The following table sets forth the calculation of basic and fully diluted earnings per share: --------------------------------------------------------------------- Three months ended March 31, 2006 2005 --------------------------------------------------------------------- Weighted Weighted Average Average Net Number of Net Number of Earnings Shares(ii) EPS Earnings Shares(ii) EPS --------------------------- --------------------------- Basic $ 17,272 127.7 $ 0.14 $ 12,748 126.0 $ 0.10 Stock options(i) - 2.4 (0.01) - 3.2 - --------------------------------------------------------------------- Diluted $ 17,272 130.1 $ 0.13 $ 12,748 129.2 $ 0.10 --------------------------------------------------------------------- --------------------------------------------------------------------- (i) Excludes the effect of 11.3 million options and restricted stock units (2005: 10.0 million) to purchase common shares that are anti-dilutive (ii) In millions 8. ACQUISITIONS During the quarter, the Company made two acquisitions totalling $5.3 million. On March 24, 2006 Canada Bread acquired Harvestime Limited (Harvestime), a bakery in Walsall, England. Harvestime is a producer of par-baked breads, rolls and specialty bakery products. In January 2006, the Company purchased the assets of a hatchery in Quebec that supplies chick embryos for the production of influenza vaccines. The Company has not yet finalized the purchase price allocations for either of these acquisitions. 9. SUPPLEMENTAL CASH FLOW INFORMATION --------------------------------------------------------------------- Three months ended March 31, 2006 2005 --------------------------------------------------------------------- Net interest paid $ 12,141 $ 14,891 Net income taxes paid 27,438 20,581 --------------------------------------------------------------------- --------------------------------------------------------------------- >>
SOURCE: Maple Leaf Foods Inc.
Lynda Kuhn, Vice-President, Public & Investor Relations, (416) 926-2026;
www.mapleleaf.com