CoolBrands International Inc.
UNAUDITED INTERIM FINANCIAL STATEMENTS
In accordance with National Instrument 51-102 released by the Canadian Securities Administrators, the Company discloses that its auditors have not reviewed the unaudited financial statements for the period ended February 28, 2006.
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CoolBrands International Inc. |
Consolidated Balance Sheets |
as at February 28, 2006 and August 31, 2005 |
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(Unaudited) |
| February 28, 2006 |
| August 31, 2005 |
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(Amounts expressed in thousands of dollars) |
| (Unaudited) |
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Assets |
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Current assets: |
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Cash |
| $ | 13,651 |
| $ | 24,062 |
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Investments |
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|
|
|
| 7,500 |
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Restricted cash |
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| 10,000 |
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| 10,000 |
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Receivables, net |
|
| 38,405 |
|
| 51,575 |
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Receivables – affiliates |
|
| 3,146 |
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| 1,919 |
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Inventories |
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| 40,879 |
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| 49,472 |
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Franchising net assets held for sale |
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|
|
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| 7,203 |
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Income taxes recoverable |
|
| 14,007 |
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| 9,813 |
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Prepaid expenses |
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| 1,210 |
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| 2,347 |
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Deferred income taxes |
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| 7,051 |
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| 5,148 |
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Total current assets |
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| 128,349 |
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| 169,039 |
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Deferred income taxes, net of valuation allowance |
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| 14,969 |
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| 14,799 |
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Property, plant and equipment |
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| 45,136 |
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| 46,567 |
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Intangible and other assets |
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| 21,597 |
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| 21,204 |
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Goodwill |
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| 43,382 |
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| 43,382 |
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| $ | 253,433 |
| $ | 294,991 |
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Liabilities and shareholders’ equity |
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Current liabilities: |
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Accounts payable |
| $ | 26,098 |
| $ | 51,518 |
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Payables – affiliates |
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| 590 |
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| 620 |
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Accrued liabilities |
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| 35,654 |
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| 29,417 |
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Deferred income taxes |
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| 93 |
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| 93 |
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Short term borrowings |
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| 30,941 |
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| 34,553 |
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Current maturities of long-term debt |
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| 14,609 |
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| 18,161 |
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Total current liabilities |
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| 107,985 |
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| 134,362 |
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Long-term debt |
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| 8,055 |
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| 8,248 |
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Other liabilities |
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| 2,967 |
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| 2,442 |
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Deferred income taxes |
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| 6,180 |
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| 6,145 |
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Total liabilities |
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| 125,187 |
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| 151,197 |
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Minority interest |
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| 1,526 |
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| 5,388 |
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Commitments and contingencies |
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Shareholders’ equity: |
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Capital stock |
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| 97,727 |
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| 97,578 |
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Additional paid-in-capital |
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| 46,939 |
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| 46,376 |
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Accumulated other comprehensive earnings |
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| (1,738 | ) |
| (1,696 | ) |
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Retained earnings |
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| (16,208 | ) |
| (3,852 | ) |
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Total shareholders’ equity |
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| 126,720 |
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| 138,406 |
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| $ | 253,433 |
| $ | 294,991 |
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CoolBrands International Inc. |
Consolidated Statements of Operations |
for the six and three months ended February 28, 2006 and 2005 |
(Amounts expressed thousands of dollars, except for per share data)
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| For the six months ended |
| For the three months ended |
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| February 28, |
| February 28, |
| February 28, |
| February 28, |
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Net revenues: |
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Net sales |
| $ | 164,129 |
| $ | 146,401 |
| $ | 77,309 |
| $ | 63,841 |
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Drayage and other income |
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| 3,781 |
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| 9,151 |
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| 1,887 |
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| 5,715 |
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Total net revenues |
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| 167,910 |
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| 155,552 |
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| 79,196 |
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| 69,556 |
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Cost of goods sold |
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| 164,377 |
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| 148,729 |
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| 80,816 |
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| 74,265 |
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Selling, general and administrative expenses |
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| 24,791 |
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| 14,545 |
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| 12,063 |
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| 7,417 |
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Stock-based compensation expense |
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| 620 |
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| 161 |
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| 357 |
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| 81 |
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Interest expense |
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| 2,464 |
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| 690 |
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| 1,167 |
|
| 337 |
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Asset Impairment |
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| 1,401 |
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| 1,401 |
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Loss from continuing operations before income tax and minority interest |
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| (24,342 | ) |
| (9,974 | ) |
| (15,207 | ) |
| (13,945 | ) |
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Minority interest |
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| 3,660 |
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| 1,457 |
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| 1,890 |
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| 815 |
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Loss from continuing operations before income taxes |
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| (20,682 | ) |
| (8,517 | ) |
| (13,317 | ) |
| (13,130 | ) |
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Recovery of income taxes |
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| (8,068 | ) |
| (3,745 | ) |
| (5,194 | ) |
| (4,756 | ) |
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Loss from continuing operations |
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| (12,614 | ) |
| (4,772 | ) |
| (8,123 | ) |
| (8,374 | ) |
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Discontinued operations: |
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(Loss) gain from operations of Franchising segment |
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| (148 | ) |
| 1,028 |
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| (235 | ) |
| 297 |
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Gain on sale of Franchising segment |
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| 406 |
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| 406 |
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Net loss |
| $ | (12,356 | ) | $ | (3,744 | ) | $ | (7,952 | ) | $ | (8,077 | ) |
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(Loss) earnings per share, basic and diluted: |
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Continuing operations |
| $ | (0.23 | ) | $ | (0.09 | ) | $ | (0.15 | ) | $ | (0.15 | ) |
Discontinued operations |
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| 0.01 |
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| 0.02 |
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| 0.01 |
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| 0.01 |
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Net loss |
| $ | (0.22 | ) | $ | (0.07 | ) | $ | (0.14 | ) | $ | (0.14 | ) |
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Weighted average shares outstanding: |
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Shares used in per share calculation – basic and diluted |
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| 56,022 |
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| 55,907 |
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| 56,033 |
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| 55,921 |
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CoolBrands International Inc.
Consolidated Statements of Shareholders’ Equity
For the six months ended February 28, 2006
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(Amounts expressed in thousands of dollars)
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| Capital stock |
| Additional |
| Accumulated |
| Retained earnings |
| Total stockholder equity |
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Balance at August 31, 2005 |
| $ | 97,578 |
| $ | 46,376 |
| $ | (1,696 | ) | $ | (3,852 | ) | $ | 138,406 |
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Comprehensive loss: |
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Net loss |
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| (12,356 | ) |
| (12,356 | ) | |||
Other comprehensive earnings (loss), net of income taxes: |
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Stock-based compensation expense |
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|
| 620 |
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| 620 |
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Currency translation adjustment |
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| (42 | ) |
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| (42 | ) | |||
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Total other comprehensive earnings |
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| 578 |
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Total comprehensive loss |
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| (11,778 | ) | ||||
Issuance of shares for stock options exercised |
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| 149 |
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| (57 | ) |
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| 92 |
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Balance at February 28, 2006 |
| $ | 97,727 |
| $ | 46,939 |
| $ | (1,738 | ) | $ | (16,208 | ) | $ | 126,720 |
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CoolBrands International Inc.
Consolidated Statements of Cash Flows
for the six and three months ended February 28, 2006 and 2005
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| For the six months ended |
| For the three months ended |
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(Unaudited) |
| February 28, |
| February 28, |
| February 28, |
| February 28, |
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Cash and short term investments provided by (used in): |
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Operating activities: |
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Net loss |
| $ | (12,356 | ) | $ | (3,744 | ) | $ | (7,952 | ) | $ | (8,077 | ) |
Adjustments to reconcile net earnings to net cash flows from operating activities |
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Depreciation and amortization |
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| 3,075 |
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| 1,211 |
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| 1,781 |
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| 956 |
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Stock-based compensation expense |
|
| 620 |
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| 161 |
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| 357 |
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| 81 |
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Excess tax benefit from stock-based compensation |
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| (245 | ) |
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|
|
| (141 | ) |
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Asset impairment |
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|
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|
| 1,401 |
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|
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|
| 1,401 |
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Deferred income taxes |
|
| (2,038 | ) |
| 197 |
|
| (745 | ) |
| (183 | ) |
Minority interest |
|
| (3,660 | ) |
| (1,454 | ) |
| (1,770 | ) |
| (812 | ) |
Allowance for doubtful accounts |
|
| 445 |
|
| (490 | ) |
| 389 |
|
| (12 | ) |
Net loss from discontinued operations |
|
| 148 |
|
| (1,028 | ) |
| 235 |
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| (297 | ) |
Gain on sale on discontinued operations |
|
| (406 | ) |
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| (406 | ) |
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Cash effect of changes |
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Receivables |
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| 12,967 |
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| 16,629 |
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| (1,875 | ) |
| 17,069 |
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Receivables - affiliates |
|
| (1,227 | ) |
| 561 |
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| (1,460 | ) |
| (136 | ) |
Inventories |
|
| 8,592 |
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| 1,124 |
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| 4,356 |
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| 2,565 |
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Prepaid expenses |
|
| 735 |
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| (2,148 | ) |
| (14 | ) |
| (827 | ) |
Other assets |
|
| (549 | ) |
| (74 | ) |
| (238 | ) |
| 85 |
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Income taxes recoverable |
|
| (14,141 | ) |
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| (4,728 | ) |
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Accounts payable |
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| (25,420 | ) |
| (11,366 | ) |
| (5,696 | ) |
| (16,693 | ) |
Payables - affiliates |
|
| (30 | ) |
| (660 | ) |
| 36 |
|
| (209 | ) |
Accrued liabilities |
|
| 6,189 |
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| 11,027 |
|
| 9,626 |
|
| 7,221 |
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Income taxes payable |
|
| 9,947 |
|
| (6,332 | ) |
| (1 | ) |
| (4,008 | ) |
Other liabilities |
|
| 525 |
|
| (247 | ) |
| 517 |
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| 31 |
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Cash (used in) provided by operating activities |
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| (16,829 | ) |
| 4,768 |
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| (7,729 | ) |
| (1,845 | ) |
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Investing activities: |
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Purchase of property, plant, and equipment |
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| (1,755 | ) |
| (3,187 | ) |
| (1,079 | ) |
| (1,035 | ) |
Purchase of license agreements and other intangibles |
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| (17 | ) |
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| (3 | ) |
Redemption of investments |
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| 7,500 |
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Issuance of notes receivable |
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| (251 | ) |
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| (251 | ) |
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Collection of notes receivable |
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| 20 |
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| 5 |
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| 20 |
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| 1 |
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Cash provided by (used in) investing activities |
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| 5,514 |
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| (3,199 | ) |
| (1,310 | ) |
| (1,037 | ) |
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Financing activities: |
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Proceeds from issuance of Class A and B shares |
|
| 92 |
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| 30 |
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| 30 |
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Proceeds from issuance of capital leases |
|
| 172 |
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| 172 |
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Change in revolving line of credit, secured |
|
| (3,612 | ) |
| (400 | ) |
| (3,612 | ) |
| (2,623 | ) |
Repayment of long-term debt |
|
| (3,917 | ) |
| (1,789 | ) |
| (2,240 | ) |
| (964 | ) |
Excess tax benefits from stock-based compensation |
|
| 245 |
|
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|
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| 141 |
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Cash used in financing activities |
|
| (7,020 | ) |
| (2,159 | ) |
| (5,539 | ) |
| (3,557 | ) |
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Decrease in cash flow due to changes in foreign exchange rates |
|
| (42 | ) |
| (1,084 | ) |
| (49 | ) |
| 1,016 |
|
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Cash flows from discontinued operations: |
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|
|
|
|
|
|
|
|
|
|
|
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Net (loss) gain from Franchising Operations |
|
| (148 | ) |
| 1,028 |
|
| (235 | ) |
| 297 |
|
Operating |
|
| 81 |
|
| 2,565 |
|
| (236 | ) |
| 425 |
|
Investing |
|
| 8,033 |
|
| (222 | ) |
| 8,004 |
|
| (78 | ) |
|
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| |||||||||||
Cash provided by discontinued operations |
|
| 7,966 |
|
| 3,371 |
|
| 7,533 |
|
| 644 |
|
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(Decrease) increase in cash and cash equivalents |
|
| (10,411 | ) |
| 1,697 |
|
| (7,094 | ) |
| (4,779 | ) |
Cash and short-term investments – beginning of period |
|
| 24,062 |
|
| 36,277 |
|
| 20,745 |
|
| 42,753 |
|
|
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Cash and cash equivalents – end of period |
| $ | 13,651 |
| $ | 37,974 |
| $ | 13,651 |
| $ | 37,974 |
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CoolBrands International Inc. |
Consolidated Notes to Interim Financial Statements |
(Unaudited) |
February 28, 2006 and 2005 |
(Amounts are expressed in thousands of dollars) |
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1. | Significant accounting policies |
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| The financial statements of the Company have been prepared by management in accordance with generally accepted accounting principles in the United States of America for interim financial statements. The financial statements have, in management’s opinion, been properly prepared using judgment within reasonable limits of materiality. These interim financial statements do not include all the note disclosures required for annual financial statements and therefore they should be read in conjunction with the company’s audited financial statements for the year ended August 31, 2005. The significant accounting policies follow those disclosed in the most recently reported annual financial statements. |
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| Certain amounts have been reclassified in the prior financial statements to conform to the presentation used at February 28, 2006. |
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2. | Accounting estimates |
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| The preparation of financial statements in conformity with generally accepted accounting principles in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements. Actual results could differ from those estimated. |
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3. | Changes in accounting policy and restated financial statements |
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| Adoption of U.S. GAAP |
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| During the fourth quarter of 2005, the Company adopted, on a retroactive basis, accounting principles generally accepted in the United States of America. Previously the Company prepared its annual and interim consolidated financial statements in accordance with generally accepted accounting principals in Canada (“Cnd GAAP”). As a result, the following adjustments have been made to previously issued Consolidated Financial Statements. |
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| The Company promotes its products with advertising, consumer incentive and trade promotions. Such programs include, but are not limited to, cooperative advertising, promotional discounts, coupons, rebates, in-store display incentives, volume based incentives and product introductory payments (i.e. slotting fees). Such consumer and trade promotion activities have been historically accounted for as selling, general and administrative expenses. In accordance with EITF No. 01-09 “Accounting for Consideration Given by a Vendor to a Customer or Reseller of the Vendors Products” certain payments made to customers by the Company, including promotional sales allowances, cooperative advertising and product introductory expenditures must be deducted from revenue. |
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| Accordingly, our Consolidated Statements of Operations for the six and three months ended February 28, 2005 have been restated to reflect a reduction in revenues and selling, general and administrative expenses of $24,908 and $13,716, respectively. Our Consolidated Statements of Operations for the six and three months ended February 28, 2006 reflects a decrease in revenue and selling, general administrative expenses of $31,484 and $17,935, respectively. |
|
CoolBrands International Inc. |
Consolidated Notes to Interim Financial Statements |
(Unaudited) |
February 28, 2006 and 2005 |
(Amounts are expressed in thousands of dollars) |
Changes in accounting policy and restated financial statements (cont’d)
The following summarizes the impact of restatement for the change from Cnd to U.S. GAAP for consumer trade promotion expenditures in our Consolidated Statements of Operations:
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| For the six months ended |
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| For the three months ended |
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| February 28, |
| February 28, |
| February 28, |
| February 28, |
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| 2006 |
| 2005 |
| 2006 |
| 2005 |
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|
|
|
|
|
|
Total net revenues in accordance with Canadian GAAP |
| $ | 199,394 |
| $ | 180,460 |
| $ | 97,131 |
| $ | 83,272 |
|
Less consumer and trade promotion expenses |
|
| (31,484 | ) |
| (24,908 | ) |
| (17,935 | ) |
| (13,716 | ) |
|
|
| |||||||||||
Total net revenues in accordance with U.S. GAAP |
| $ | 167,910 |
| $ | 155,552 |
| $ | 79,196 |
| $ | 69,556 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| For the six months ended |
| For the three months ended |
| ||||||||
| |||||||||||||
|
| February 28, |
| February 28, |
| February 28, |
| February 28, |
| ||||
|
| 2006 |
| 2005 |
| 2006 |
| 2005 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total selling, general and administrative expenses in accordance with Canadian GAAP |
| $ | 56,275 |
| $ | 39,453 |
| $ | 29,998 |
| $ | 21,133 |
|
Less consumer and trade promotion expenses |
|
| (31,484 | ) |
| (24,908 | ) |
| (17,935 | ) |
| (13,716 | ) |
|
|
| |||||||||||
Total selling, general and administrative expenses in accordance with U.S.GAAP |
| $ | 24,791 |
| $ | 14,545 |
| $ | 12,063 |
| $ | 7,417 |
|
|
|
|
Product introduction expenditures (i.e. slotting fees) incurred by the Company have been historically recognized as expense by amortizing the slotting fees over the twelve months subsequent to the actual acceptance of product introduction offers by our customers. Under U.S. GAAP, such expenditures are recognized as expenses at the time product introduction offers are accepted by our customers, which for measurement purposes is at the time of the first shipment of the product to each customer. As a result of this change, our previously reported net loss for the three months ended February 28, 2005 would have been decreased by $3,229 when compared with the net loss that would have been reported and for the six months ended February 28, 2005 would have been decreased by $4,152 when compared with the net gain that would have been reported using our historical accounting principals. Our reported net loss for the three months ended February 28, 2006 has been increased by $1,798 and for the six months ended February 28, 2006 has been increased by $73.
|
CoolBrands International Inc. |
Consolidated Notes to Interim Financial Statements |
(Unaudited) |
February 28, 2006 and 2005 |
(Amounts are expressed in thousands of dollars) |
Changes in accounting policy and restated financial statements (cont’d)
The following summarizes the impact of restatement for the change from Cnd to US GAAP for new product introduction expenditures (slotting fees) in our Consolidated Statement of Operations:
|
|
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|
|
|
|
|
|
|
|
|
| For the six months ended |
| For the three months ended |
| ||||||||
| |||||||||||||
|
| February 28, |
| February 28, |
| February 28, |
| February 28, |
| ||||
|
| 2006 |
| 2005 |
| 2006 |
| 2005 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) earnings in accordance with Canadian GAAP |
| $ | (12,283 | ) | $ | 408 |
| $ | (9,750 | ) | $ | (4,848 | ) |
Adjustment for new product introduction expense |
|
| (73 | ) |
| (4,152 | ) |
| 1,798 |
|
| (3,229 | ) |
|
|
| |||||||||||
Net (loss) earnings in accordance with U.S. GAAP |
| $ | (12,356 | ) | $ | (3,744 | ) | $ | (7,952 | ) | $ | (8,077 | ) |
|
|
|
Stock-based compensation
On September 1, 2005, the Company adopted, on a retroactive basis without restatement, the recommendation of CICA Handbook Section 3870, “Stock-based compensation and other stock-based payments”, which required companies to adopt the fair value based method for all stock-based awards granted on or after September 1, 2002. Previously, the Company was required to disclose only the pro-forma effect of stock options issued to employees and employee directors in the notes to the financial statements.
As a result of adopting U.S. GAAP during the fourth quarter of 2005, as previously discussed, the Company adopted, on a modified prospective basis, the recommendations of Financial Accounting Standards Board (“FASB”) issued SFAS No. 123 “Accounting for Stock Based Compensation.” This statement superseded Accounting Principles Board (APB) Opinion No. 25, “Accounting for Stock Issued to Employees,” and amends FASB Statement No. 95, “Statement of Cash Flows”.
The adoption of this accounting policy had no effect on the Consolidated Statement of Operations for the six and three months ended February 28, 2005.
On September 1, 2005 the Company adopted (“SFAS 123R”), Share-Based Payment, using the modified prospective application transition method. Because the fair value recognition provisions of SFAS No. 123, Stock-Based Compensation, and SFAS No. 123(R) were materially consistent under our equity plans, the adoption of SFAS No. 123(R) did not have a significant impact on our financial position or our results of operations. Prior to our adoption of SFAS No. 123(R), benefits of tax deductions in excess of recognized compensation costs were reported as operating cash flows. SFAS No. 123(R) requires excess tax benefits be reported as a financing cash inflow rather than as a reduction of taxes paid.
Our net income for the six and three months ended February 28, 2006 includes $620 and $357, respectively, of compensation costs and $245 and $141, respectively, of income tax benefits related to stock-based compensation arrangements. Our net income for the six and three months ended February 28, 2005 included $161 and $81, respectively of compensation costs and $64 and $32, respectively of income tax benefits related to our stock-based compensation arrangements.
CoolBrands International Inc.
Consolidated Notes to Interim Financial Statements
(Unaudited)
February 28, 2006 and 2005
|
|
| (Amounts are expressed in thousands of dollars) |
|
|
4. | Segment information |
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Frozen dessert |
| Yogurt |
| Foodservice |
| Dairy |
| Corporate |
| Consolidated |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the six months ended February 28, 2006 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenues |
| $ | 96,353 |
| $ | 53,432 |
| $ | 8,648 |
| $ | 9,452 |
| $ | 25 |
| $ | 167,910 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inter-segment Revenues |
|
| 15,084 |
|
|
|
|
| 8 |
|
| 1,136 |
|
| 54 |
|
| 16,282 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment (loss) earnings from continuing operations before income taxes |
|
| (21,087 | ) |
| 1,629 |
|
| (234 | ) |
| 1,068 |
|
| (2,058 | ) |
| (20,682 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the six months ended February 28, 2005 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenues |
| $ | 137,930 |
|
|
|
| $ | 8,905 |
| $ | 8,614 |
| $ | 103 |
| $ | 155,552 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inter-segment Revenues |
|
| 20,111 |
|
|
|
|
| 262 |
|
| 1,596 |
|
| 103 |
|
| 22,072 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment (loss) earnings from continuing operations before income taxes |
|
| (11,697 | ) |
|
|
|
| 625 |
|
| 1,083 |
|
| 1,472 |
|
| (8,517 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended February 28, 2006 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenues |
| $ | 43,099 |
| $ | 27,582 |
| $ | 4,439 |
| $ | 4,069 |
| $ | 7 |
| $ | 79,196 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inter-segment Revenues |
|
| 8,410 |
|
|
|
|
| (50 | ) |
| 587 |
|
| 15 |
|
| 8,962 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment (loss) earnings from continuing operations before income taxes |
|
| (12,761 | ) |
| (2 | ) |
| (4 | ) |
| 270 |
|
| (820 | ) |
| (13,317 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended February 28, 2005 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenues |
| $ | 61,654 |
|
|
|
| $ | 4,294 |
| $ | 3,549 |
| $ | 59 |
| $ | 69,556 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inter-segment Revenue |
|
| 8,317 |
|
|
|
|
| 147 |
|
| 999 |
|
| 59 |
|
| 9,522 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment (loss) earnings from continuing operations before income taxes |
|
| (12,570 | ) |
|
|
|
| 239 |
|
| 265 |
|
| (1,064 | ) |
| (13,130 | ) |
CoolBrands International Inc.
Consolidated Notes to Interim Financial Statements
(Unaudited)
February 28, 2006 and 2005
|
|
| (Amounts are expressed in thousands of dollars) |
|
|
5. | Capital stock |
|
|
| The Company had the following equity securities and stock options outstanding as of April 10, 2006: |
|
|
|
Class A | Class B Multiple | Stock Options |
50,049 | 6,027 | 2,668 |
|
|
6. | Subsequent events |
|
|
| Effective December 31, 2005 the Company obtained an initial extension of its existing credit facilities with JP Morgan Chase Bank. Effective April 3, 2006, the maturity date of the existing facilities was extended to May 3, 2006. All other terms and conditions of the existing facilities remain the same. |