Feed and hog breeding company Ridley Inc. has reported slightly higher net earnings for 1999.
Net earnings for the year ending June 30 were $13.9 million, or $1.04 per share, compared with $13.5 million in 1998, or $1.07 per share.
Ed Moloney, president and chief executive officer, said the Winnipeg-based company’s feed operations in Canada and the United States did well, but the swine business suffered.
“In Canada, the operating income of our feed business rose by 11.5 percent in 1999. However, although our Quality Swine Systems operations are among the most efficient in North America, their losses result in a decline of the Canadian division’s operating income to $2.7 million in 1999, compared to $8.3 million recorded in 1998,” Moloney said in a news release.
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“In the U.S., operating income rose 21.5 percent to $22.6 million in 1999 from $18.6 million in 1998. This growth resulted from increased sales volumes and an increase in higher-margin, more value-added products, as well as the effects of a weaker Canadian dollar.”
Earnings before interest, taxes, depreciation and amortization were $29.4 million in 1999 compared with $33.1 million for the previous year. Sales were $435.6 million, compared with $398 million in 1998.
The company will pay a fourth-quarter dividend of four cents per share on Oct. 1 to shareholders of record on Sept. 15.
“We expect our performance in fiscal 2000 to be similar to the $13.9 million earnings achieved in fiscal 1999, with reduced losses in our swine operations and modest increases in our feed businesses, including a contribution from the new low-moisture block plant in Texas,” Moloney said.
The company completed significant expansion in 1999 with the Macleod Feed Mill in Fort Macleod, Alta., Gringer Feed and Grain Inc. of Iowa City, Iowa, and Cotswold Pig Development Co. Ltd. based in the United Kingdom.
It also formed a partnership with Gensel Biotechnologies Ltd., with an initial equity investment in exchange for the right to the worldwide license of its sperm sexing technology for swine, when it is fully developed.
“The acquisitions and investments made during the year resulted in an increase in our net debt position to $125.8 million,” Moloney said.
“Long-term debt represented 52.2 percent of total capitalization at year-end. We will look to somewhat reduce the debt level in 2000.”
Ridley Inc. manufactures livestock feed products at 34 facilities in Western Canada, Ontario and the north-central U.S.
