Wednesday, 4 June 2008

Notes On An Inner Looking Planet

Planet Organic Health Corporation (TSX:V-POH)
Basic Shares: 33.1 million
Fully Diluted: 38.2 million


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Planet Organic (POH) is taking a time out after turning its back on last month's public market financing.
But it won't be taking a corporate vacation.
Rather, it will refocus and rededicate its talents at expanding sales throughout its existing five divisions and by adding stores.
But it's also keeping its eye out for external capital to help it expand through acquisitions by seeking a strategic partner to join the fold.
Planet already has one strategic partner in the form of Ron Francisco, Planet's CEO and Chairman.
Shortly after Darren Krissie, Planet's VP and CFO, took Planet public, Darren and Ron met.
Through a private company founded by Ron, he is the second-largest wholesale distributor of natural products and beverages in Canada.
Ron liked Darren's talents and ideas so much he bought up large chunks of Planet stock, so much so, he now owns over 60% of it. That's the kind of second strategic partner Planet is now looking for in terms of attracting significant investment.
To view the news release on its strategy, please click here.
Planet also announced its third quarter results, which showed a sales increase of 103% in a quarter to same-last-quarter comparison, and a 25% increase in earnings before interest, taxes, depreciation, amortization, stock-based compensation and foreign exchange gains or losses. (Planet's third quarter ended March 31st.)
Using the same comparison, sales in the third quarter of 2007 were $14.5 million, compared to this year's third quarter sales of $29.6 million.
Mr. Krissie said non-cash changes such as stock-based compensation and foreign exchange translations were the chief reasons why there was a $711,782 loss in net income in the third quarter and a net income loss of $32,634 in year-to-date calculations.
Year-to-date cash flow before changes
in non-cash working capital accounts was $3.8 million in the first nine months of 2008.
In the first nine months of fiscal 2007, cash flow was $2.3 million.
That's a 65% increase in cash flow. The 2008 cash flow works out to 11.6 cents per basic share.
To view the full press release, please click here.