- Published: 29 October 2008
- Written by Editor
Planet Organic Health Corp Announces Annual Results
Sales up 106%, EBITDASX up 97%
Planet Organic Health Corp (TSX Venture Exchange - POH), Canada's leading natural products retailer announces their financial results for the year ending June 30, 2008. Sales for the year were $113.9 million compared to $55.3 million in 2007, an increase of 106%. EBITDASX was $7.1 million compared to $3.6 million in 2007, an increase of 97%, and cash flow from operations increased by $2.5 million over 2007, an increase of 218%.
"I'm excited to report our financial results for the year ended June 30, 2008. We have successfully integrated the acquisition of Mrs Green's in the U.S., added one new POM market location and started construction on the Edmonton flagship expansion, as well as the third Ontario location. The rebranding of Healthy's to Planet Organic Living began with the Exchange Tower in Toronto and we opened a new POL store in Milton Ontario.
We continue to benefit from the synergies of vertical integration at Trophic, and Sangster's continues to open new franchise locations. These actions have allowed the Company to more than double revenues, more than triple cash flow from operations, and almost double EBITDASX", reports Darren Krissie, CFO.
EBITDASX and cash flow from operations are the key performance indicators for the Company. Income before tax this year included non-cash non-tax deductible items like stock based compensation of $1.2 million, and foreign exchange gains of $0.5 million. We also had one time costs of $0.9 million expensed during the year related to a failed acquisition. "If we were to normalize our earnings to reflect these items, which were not part of 2007 results, earnings before tax would have been $2.2 million, despite significant interest costs this year relating to the acquisition of Mrs Green's" added Krissie.
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Summary of Key Fiscal 2008 Annual Financial Results
Fiscal 2008 Fiscal 2007
Sales $113,972,886 $55,321,037
Cost of Goods Sold $68,724,865 $33,644,781
Gross Profit $45,248,021 $21,676,256
Operating Expenses $45,666,658 $20,351,323
EBITDASX $7,096,293 $3,590,365
Income before Tax $530,087 $2,096,736
Tax $758,437 $631,270
Net Income ($228,350) $1,465,466
Cash Flow from Operations $3,605,585 $1,137,650
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EBITDASX reported above is a non-GAAP measure and is earnings before
interest, taxes, depreciation, amortization and stock-based compensation and
foreign currency translation.
For further financial information and a copy of our annual report, please
visit our corporate website at www.planetorganichealthcorp.com
About Planet Organic Health Corp.
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Planet Organic Health Corp. (TSX-V: POH) is a natural products industry
company, comprising manufacturing, distribution and retail. Planet Organic is
listed on the TSX Venture Exchange as a Tier One company. Planet Organic
operates nine natural food supermarkets throughout Canada under the Planet
Organic Market banner and eleven natural food supermarkets in the U.S. under
the Mrs Green's Natural Markets banner. The Company also operates 48 natural
health outlets under the Sangster's Health Centre banner and eight natural
health outlets under the Healthy's and Planet Organic Living banners. Another
Planet Organic division, Trophic Canada, is the country's leading manufacturer
of natural supplements. The Company has a total of 65 stores throughout Canada
and eleven in the U.S. and has more than 650 employees.
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The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
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Forward-Looking Statements
Certain information included herein is forward-looking. Forward-looking
statements include, without limitation, statements regarding the future
financial position, business strategy, budgets, projected costs, capital
expenditures, financial results, taxes and plans and objectives of or
involving Planet. Many of these statements can be identified by looking for
words such as "believe", "expects", "expected", "will", "intends", "projects",
"anticipates", "estimates", "continues", or similar words and include but are
not limited to, statements regarding the accretive effects of the acquisition
and the anticipated results and expected benefits of the acquisition upon
closing thereof. Planet Organic believes the expectations reflected in such
forward-looking statements are reasonable but no assurance can be given that
these expectations will prove to be correct and such forward-looking
statements should not be unduly relied upon. Forward-looking statements are
not guarantees of future performance and involve a number of risks and
uncertainties some of which are described in Planet Organic's continuous
disclosure documents. Such forward-looking statements necessarily involve
known and unknown risks and uncertainties and other factors, which may cause
Planet Organic's actual performance and financial results in future periods to
differ materially from any projections of future performance or results
expressed or implied by such forward-looking statements. Such factors include,
but are not limited to: general economic, market and business conditions;
industry capacity; competitive action by other companies; refining and
marketing margins; the ability of suppliers to meet commitments; actions by
governmental authorities including increases in taxes; changes in
environmental and other regulations; and other factors, many of which are
beyond the control of Planet Organic. Any forward-looking statements are made
as of the date hereof and Planet Organic does not undertake any obligation,
except as required under applicable law, to publicly update or revise such
statements to reflect new information, subsequent or otherwise
For further information: Planet Organic Health Corp., Darren Krissie, VP Corporate Development, CFO, (780) 719-4667
