DELICIOUS ALTERNATIVE DESSERTS LTD. JULY 30, 1999|
THIRD QUARTER RESULTS
Aug 6 1999
Interim financial statements - English PDF 16 K
DELICIOUS ALTERNATIVE DESSERTS LTD.
JULY 30, 1999
THIRD QUARTER RESULTS
Delicious Alternative Desserts Ltd. (?DADL?) is pleased to announce its third quarter results for
the period ending May 31, 1999. The gross revenues for the nine-month period were $5,216,594 an
increase of 232% from the previous nine-month period ending May 31, 1998. While expenses
exceeded gross revenues for the period by $4,851,020 these financial results reflect a continuing
upward trend in revenues and demonstrate a strengthening in product demand. The manufacturing
facility is in the third and final phase of commissioning which when completed will result in a
reduction of the operating costs. The Company expects its profitability to improve with the
increasing demand for its ice cream products and the initiatives to improve its manufacturing
The second stage of commissioning the Stoney Creek manufacturing facility is now completed.
Subsequent, to the quarter end, a high speed ice cream filler referred to as the 3d93 was installed.
DADL is now equipped to meet consumer demand in the Canadian market for its product lines.
The final stage of commissioning will continue throughout the fiscal quarter and will be complete
by September 30, 1999. The manufacturing facilities will continue to ramp up production while
reducing the costs as the increasing consumer demand for the DADL products accelerates
During the quarter, DADL?s Ben & Jerry?s ice cream products were distributed only in the
southern Ontario market and on a limited initial launch basis in the provinces of Alberta and British
Columbia. The demand in these markets for the DADL ice cream products continues to exceed
After the quarter-end, DADL announced that two additional major retailers in Western Canada will
be carrying Ben & Jerry's super premium ice cream and frozen yogurt. Canada Safeway with 210
stores and Sobeys West with 161 IGA stores will offer consumers an exciting variety of Ben &
Jerry's flavours in 500 ml tubs. Canada Safeway and IGA (Sobeys West) join Overwaitea, Thrifty
Foods, and H.Y. Louie in expanding the distribution base for DAD's products in Western Canada.
The national launch of the new and exciting Cadbury?s? ice cream products plus Dairy Milk©,
Hazel Nut© and Fruit and Nut© novelties commenced in May and has continued to expand into new
geographic territories in June and July. The Cadbury products are manufactured under license by
Cadbury Chocolate Canada Inc. (C.C.C.I.) at DAD's new state-of-the-art facility in Stoney Creek.
``We are excited by the launch of Cadbury? Caramilk© and Cadbury? Crispy Crunch© ice
creams and believe that consumers will be pleased with the superior quality of these products. This
line of ice cream is very consistent with the consumer's expectation of the Cadbury name and of
our chocolate bar products' said David Emsley, Director of Licensed Brands for C.C.C.I.
Also, during the quarter, DADL began its distribution of Tropicana frozen dessert products
throughout Ontario to supermarket retailers.
During the third quarter, DADL?s products were delivered to over 2,000 retail outlets in southern
Ontario. To meet this increased demand for DADL?s product lines, DADL has initiated the
purchase of additional ice cream delivery trucks expanding its fleet..Subsequent to the quarter-end DADL welcomed two new senior executives to the management
team: Mr. Ian F.T, Kennedy as the Chief Operating Officer and director and Mr. Gaetan Chabot,
CA as the Chief Financial Officer for the Corporation.
Mr. Ian F.T. Kennedy has an extensive career as an investment banker, venture capitalist and
owner specializing in the oil and gas, high technology and industrial sectors. Last year Mr.
Kennedy held the position of Chief Operating Officer of Teklogix International Inc. Over fourteen
months he led a highly successful turnaround in Teklogix. Under his leadership Teklogix improved
its profitability and cash flow and was among the top stock performers on the Toronto Stock
Exchange, in 1998. DADL has welcomed Mr. Kennedy?s experience to the executive management
Mr. Chabot, CA brings many years of experience in the food, beverage and ice cream industry.
Most recently he was with Fairlee Fruit Juice Ltd. as Vice President, Finance. Previously he was
with Breyers-Good Humor, a division of Unilever, as the Vice President, Finance from 1993 until
1996. Before this he was with Popsicle Industries Ltd., as the Vice President of Finance, from 1989
until 1993. Mr. Chabot?s previous experiences in the ice industry as a senior financial executive
will strengthen and complete the company?s executive management team.
DADL?s objectives for the final fiscal quarter are to complete the commissioning of the
manufacturing facility. During the final phase of plant commissioning a focus and refinement of
the plant productivity and the reduction of operating costs will be the key objectives, thereby
reducing the associated operating costs with the production process. With the addition of proven,
experienced senior management to complement the existing management team DADL positioned
to fully execute its business plan and to roll out its ice cream products on a national basis.
DADL looks forward to a strong summer season for all its product lines.
On behalf of the board of directors:
Robert C. Harrison, President & C.E.O.
W.T. David Murray, Chairman
July 30, 1999
Delicious Alternative Desserts Ltd. or Delicious Alternative Desserts Ltd.
Mr. David Murray Mr. Robert Harrison
Chairman President & C.E.O.
(416) 374-6744 ext. 225 (905) 662-4934 ext. 227
Consolidated Balance Sheet follows here:
Not posted because it loses its format!