Friday, 29 February 2008

Planet Sales Shot Up 99%, EBITDA UP 78%



(TSX:V-POH)
The acquisition of the 11-store chain of Mrs. Green’s in New York State was chiefly responsible for driving up Planet Organic sales by 99% in the second quarter (Dec. 31) of Fiscal 2008.
Quarter-over-same-quarter sales increases at Planet stores across Canada and in Mrs. Green’s outlets also helped to drive up overall revenues from $13.8 million in the second quarter of last year to $27.5 million for this year’s second quarter. Year to date sales were $53.24 million compared to just over $25 million for the first six months of F07.
Planet Organic’s year end is June 30th.
Earnings before interest, taxes, depreciation, amortization, stock-based compensation and foreign exchange gains or losses (EBITDA) also increased 78.2%, climbing from just over $1 million in the second quarter of last year to $1.8 million in the same quarter this year.
Despite all that good news, net income was a negative $45 thousand compared with a positive net income of $536 thousand for the second quarter of last year. The cause for the drop was twofold.
First, interest charges increased from $65 thousand in last year’s second quarter to $997 thousand in the second quarter this fiscal year. That increase reflects the cost of acquiring Mrs. Green’s.
Second, the issuance of options forced Planet to record them as an expense with a value of nearly $500 thousand, even though it is a non-cash item. There were no stocked based compensation expenses in the second quarter of last year.
That being said, cash flow for the quarter was $1.15 million and for the fiscal year, $1.89 million versus $762 thousand and $1.37 million for the correponding periods of F07.
To view the full news release please click here.