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Canada Bread Reports Results for Fourth Quarter and Fiscal Year 2010

TORONTO, Feb. 24 /PRNewswire-FirstCall/ - Canada Bread Company, Limited (TSX: CBY) today reported its financial results for the fourth quarter and year ended December 31, 2010.

pasta

Fourth quarter and full year highlights include:

    -   Fourth quarter Adjusted Operating Earnings were $27.3 million

        compared to $29.1 million last year

    -   Fourth quarter Adjusted EPS of $0.61 compared to $0.70 in the

        prior year

    -   Full year Adjusted Operating Earnings were $110.5 million compared to

        $120.5 million last year

    -   Fourth quarter net earnings were $13.6 million down from $15.0

        million and $61.0 million compared to $77.5 million for the full year

Note: Adjusted Operating Earnings are defined as earnings from operations before restructuring and other related costs and other income (expense). Adjusted Earnings per Share ("Adjusted EPS") are defined as basic earnings per share adjusted for the impact of restructuring and other related costs, net of tax. Please refer to the section entitled Reconciliation of Non-GAAP Financial Measures at the end of this news release.

"While we had a modest decline in operating earnings in the quarter, a number of initiatives are underway to reduce costs and strengthen volumes," said Richard Lan, President and CEO. "We are consolidating manufacturing facilities, reducing overhead costs and increasing our marketing and sales activities, all with good results. We will also manage significant commodity inflation through price increases."

    Financial Overview

    ------------------

Sales for the fourth quarter declined 9% to $393.1 million from $432.2 million in the prior year mostly as a result of an additional week in the fourth quarter last year. Excluding the impact of the extra week in 2009 and unfavourable currency translation of the Company's sales in the U.K. and U.S., sales were largely consistent with the prior year. For the full year, sales were $1,588.4 million, compared to $1,705.8 million in 2009.

Adjusted Operating Earnings in the fourth quarter were $27.3 million compared to $29.1 million last year and $110.5 million compared to $120.5 million for the full year. The fourth quarter decline was largely due to lower volumes in the Company's frozen bakery operations.

During the quarter the business benefited from lower commodity costs and a strong Canadian dollar, which reduced the cost of flour and other ingredients priced in US dollars. However, there was a significant rise in wheat prices late in the quarter that has continued into 2011. A loss of $5.9 million on interest rate swaps and reduced Adjusted Operating Earnings, partly offset by lower income taxes, contributed to a moderate decrease in net earnings from $15.0 million ($0.59 per share) last year to $13.6 million ($0.54 per share) in the fourth quarter of 2010. Net earnings for the full year were $61.0 million ($2.40 per share) compared to $77.5 million ($3.05 per share) in 2009.

    Business Segment Review

    ------------------------

    The following table summarizes sales by business segment:

 

    -------------------------------------------------------------------------

    ($ thousands)                    Fourth Quarter              Full Year

                             ------------------------------------------------

                                    2010        2009        2010        2009

    -------------------------------------------------------------------------

    Fresh Bakery                $261,876    $279,244  $1,086,827  $1,119,790

    Frozen Bakery                131,203     152,946     501,610     585,998

    -------------------------------------------------------------------------

    Sales                       $393,079    $432,190  $1,588,437  $1,705,788

    -------------------------------------------------------------------------

    -------------------------------------------------------------------------

 

    The following table summarizes Adjusted Operating Earnings by business

    segment:

 

    -------------------------------------------------------------------------

    ($ thousands)                    Fourth Quarter             Full Year

                             ------------------------------------------------

                                    2010        2009        2010        2009

    -------------------------------------------------------------------------

    Fresh Bakery                 $20,623     $20,079     $99,226     $91,535

    Frozen Bakery                  6,714       9,053      11,251      29,002

    -------------------------------------------------------------------------

    Adjusted Operating Earnings  $27,337     $29,132    $110,477    $120,537

    -------------------------------------------------------------------------

    -------------------------------------------------------------------------

 

    Fresh Bakery

    ------------

Includes fresh bakery products, including breads, rolls, bagels, sweet goods, prepared sandwiches, and fresh pasta and sauces sold to retail, foodservice and convenience channels. It includes national brands such as Dempster's(R) and Olivieri(R) and many leading regional brands.

Fourth quarter sales decreased 6% to $261.9 million from $279.2 million last year. Excluding the impact of the extra week in 2009, sales increased by 1% due primarily to a moderate increase in volume.

Adjusted Operating Earnings in the quarter increased slightly to $20.6 million from $20.1 million, due to lower commodity costs and the favourable impact of a stronger Canadian dollar on wheat and ingredient purchases. A significant rise in wheat prices that began in the fourth quarter has continued in 2011, and as a result the business expects to implement price increases in the first quarter. Adjusted Operating Earnings for the full year increased to $99.2 million from $91.5 million last year.

Construction of the Company's bakery facility in Hamilton, Ontario commenced in August 2010. The project is on target to begin initial production of bakery products in July 2011.

On February 18, 2011, the Company completed the sale of its fresh sandwich business for $8.0 million, subject to post closing adjustments.

    Frozen Bakery

    -------------

Includes frozen bakery products, including frozen par-baked bakery products, specialty and artisan breads, and bagels sold to retail, foodservice and convenience channels in North America and the U.K. It includes national brands such as Tenderflake(R) and New York Bakery Co(R).

Fourth quarter sales declined by 14% to $131.2 million from $152.9 million last year. Excluding the impact of the extra week in 2009, sales decreased by 7% due to lower volumes, predominantly in U.K. bakery operations, and the impact of unfavourable currency translation of the Company's sales in the U.K. and U.S. due to a stronger Canadian dollar.

Adjusted Operating Earnings in the quarter were $6.7 million compared to $9.1 million last year. Performance in the North American frozen bakery operations was lower than 2009, although volume began to strengthen towards the end of the fourth quarter. A number of initiatives are underway to improve performance. Price increases are being implemented in the first quarter in response to the significant rise in wheat prices. In early 2011, the Company announced it will close a high cost bakery in Laval, Quebec and transfer production to its other bakeries where there is available capacity. Results in the U.K. bakery operations were consistent with last year. Management is proceeding with initiatives to reduce costs and consolidate volumes into fewer bakeries and in the first quarter of 2011 announced plans to close a bakery facility in Cumbria, U.K. Also, in the first quarter of 2011, a significant promotion of the Company's bagel brand in the U.K. was launched to support market growth in the bagel category, which has lead to increased demand and stronger volumes.

For the full year, Adjusted Operating Earnings were $11.3 million compared to $29.0 million last year.

    Other Matters

    -------------

On February 23, 2011 Canada Bread Company, Limited declared a dividend of $0.06 per share payable on April 1, 2011 to shareholders of record at the close of business on March 10, 2011. Unless indicated otherwise by the Company in writing at or before the time the dividend is paid, this dividend will be considered an eligible dividend for the purposes of the "Enhanced Dividend Tax Credit System".

    Forward-Looking Statements

    --------------------------

This document contains, and the Company's oral and written public communications often contain, forward-looking statements that are based on current expectations, estimates, forecasts and projections about the industries in which the Company operates and beliefs and assumptions made by the Management of the Company. Such statements include, but are not limited to, statements with respect to objectives and goals, as well as statements with respect to beliefs, plans, expectations, anticipations, estimates and intentions. Words such as "expect," "anticipate," "intend," "attempt," "may," "will," "plan," "believe," "seek," "estimate," and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve assumptions and risks and uncertainties that are difficult to predict.

In particular, these forward-looking statements are based on expectations concerning performance of the Company's business in general, and are based on a number of factors and assumptions including, but not limited to: the condition of the Canadian, United States and United Kingdom economies; the rate of exchange of the Canadian dollar to the U.S. dollar and the British pound; initiatives to restore sales volumes and reduce costs in the North American and U.K. frozen bakery businesses; the availability and prices of raw materials, energy and supplies; product pricing; the availability of insurance; the competitive environment and related market conditions; improvement of operating efficiencies; continued access to capital; the cost of compliance with environmental and health standards; no adverse results from ongoing litigation; no unexpected actions of domestic and foreign governments and the general assumption that none of the risks identified under the "Risk Factors" in the Company's Annual Management's Discussion and Analysis for the year ended December 31, 2010 will materialize. All of these assumptions have been derived from information currently available to the Company including information obtained by the Company from third-party sources. These assumptions may prove to be incorrect in whole or in part. In addition, actual results may differ materially from those expressed, implied or forecasted in such forward-looking statements, which reflect the Company's expectations only as of the date hereof.

Factors that could cause actual results or outcomes to differ materially from the results expressed or implied by forward-looking statements are discussed more fully under the heading "Risk Factors" in the Company's Annual Management's Discussion and Analysis for the year ended December 31, 2010 including the section entitled "Risk Factors" that will be available on SEDAR at www.sedar.com. The Company does not intend to, and the Company disclaims any obligation to, update any forward-looking statements, whether written or oral, or whether as a result of new information, future events or otherwise except as required by law.

Canada Bread Company, Limited, which is 90.0% owned by Maple Leaf Foods Inc., is a leading manufacturer and distributor of fresh bakery products, frozen par-baked products and fresh pasta and sauces. The Company had 2010 sales of $1.6 billion and employs approximately 7,500 people at its operations across North America and in the United Kingdom.

    Reconciliation of Non-GAAP Financial Measures

    ---------------------------------------------

The Company uses the following non-GAAP measures: Adjusted Operating Earnings and Adjusted EPS. Management believes that these non-GAAP measures provide useful information to both management and investors in measuring the financial performance of the Company for the reasons outlined below. These measures do not have a standardized meaning prescribed by Canadian GAAP and therefore they may not be comparable to similarly titled measures presented by other publicly traded companies and should not be construed as an alternative to other financial measures determined in accordance with Canadian GAAP.

Adjusted Operating Earnings

The following table reconciles earnings from operations before restructuring and other related costs and other income (expense) to net earnings as reported under Canadian GAAP in the unaudited interim period consolidated statements of earnings for the three-month periods and the audited full-year periods ended as indicated below. Management believes that this is the most appropriate basis on which to evaluate operating results, as restructuring and other related costs and other income (expense) are not representative of operational results.

    -------------------------------------------------------------------------

    ($ thousands)                     Three months ended December 31, 2010

    -------------------------------------------------------------------------

                                   Fresh      Frozen      Unallo-   Consoli-

                                  Bakery      Bakery       cated      dated

                                                           costs

 

    Net earnings                                                     $13,582

    Income taxes                                                       4,745

    -------------------------------------------------------------------------

    Earnings from operations

     before income taxes                                              18,327

    Interest expense                                                     471

    -------------------------------------------------------------------------

    Earnings from operations

     before income taxes and

     interest expense             19,345       5,328      (5,876)     18,798

    Restructuring and other

     related costs                 1,141       1,386         -         2,527

    Other expense                    137         -         5,876       6,012

    -------------------------------------------------------------------------

    Adjusted Operating Earnings  $20,623      $6,714       $  -      $27,337

    -------------------------------------------------------------------------

    -------------------------------------------------------------------------

 

 

    -------------------------------------------------------------------------

    ($ thousands)                     Three months ended December 31, 2009

    -------------------------------------------------------------------------

                                   Fresh      Frozen      Unallo-   Consoli-

                                  Bakery      Bakery       cated      dated

                                                           costs

 

    Net earnings                                                     $15,009

    Income taxes                                                       9,392

    -------------------------------------------------------------------------

    Earnings from operations

     before income taxes                                              24,400

    Interest expense                                                   1,104

    -------------------------------------------------------------------------

    Earnings from operations

     before income taxes and

     interest expense             16,635       8,870          -       25,504

    Restructuring and other

     related costs                 3,454         183          -        3,637

    Other income                     (10)                     -          (10)

    -------------------------------------------------------------------------

    Adjusted Operating Earnings  $20,079      $9,053        $ -      $29,132

    -------------------------------------------------------------------------

    -------------------------------------------------------------------------

 

 

    -------------------------------------------------------------------------

    ($ thousands)                    Year ended December 31, 2010

    -------------------------------------------------------------------------

                                   Fresh      Frozen      Unallo-   Consoli-

                                  Bakery      Bakery       cated      dated

                                                           costs

 

    Net earnings                                                     $60,975

    Income taxes                                                      24,827

    -------------------------------------------------------------------------

    Earnings from operations

     before income taxes                                              85,802

    Interest expense                                                   3,308

    -------------------------------------------------------------------------

    Earnings from operations

     before income taxes and

     interest expense             86,685       8,301      (5,876)     89,110

    Restructuring and other

     related costs                12,598       2,950         -        15,548

    Other expense (income)           (57)        -         5,876       5,819

    -------------------------------------------------------------------------

    Adjusted Operating Earnings  $99,226     $11,251       $  -     $110,477

    -------------------------------------------------------------------------

    -------------------------------------------------------------------------

 

 

    -------------------------------------------------------------------------

    ($ thousands)                     Year ended December 31, 2009

    -------------------------------------------------------------------------

                                   Fresh      Frozen      Unallo-   Consoli-

                                  Bakery      Bakery       cated      dated

                                                           costs

    Net earnings                                                     $77,478

    Income taxes                                                      35,506

    -------------------------------------------------------------------------

    Earnings from operations

     before income taxes                                             112,984

    Interest expense                                                   5,084

    -------------------------------------------------------------------------

    Earnings from operations

     before income taxes and

     interest expense             88,053      30,015         -       118,068

    Restructuring and other

     related costs                 3,373       1,535         -         4,908

    Other expense (income)           109      (2,548)        -        (2,439)

    -------------------------------------------------------------------------

    Adjusted Operating Earnings  $91,535     $29,002      $  -      $120,537

    -------------------------------------------------------------------------

    -------------------------------------------------------------------------

Adjusted Earnings per Share

The following table reconciles Adjusted Earnings per Share to basic earnings per share as reported under Canadian GAAP in the consolidated statements of earnings for the unaudited three-month interim periods and the audited full-year periods ended as indicated below. Management believes this is the most appropriate basis on which to evaluate financial results as restructuring and other related costs are not representative of operational results.

    ($ per share)                 Three months ended           Year ended

                                       December 31,            December 31,

                                    2010        2009        2010        2009

    -------------------------------------------------------------------------

    Basic Earnings per Share      $ 0.54      $ 0.59      $ 2.40      $ 3.05

    Restructuring and other

     related costs(i)               0.08        0.11        0.46        0.15

    -------------------------------------------------------------------------

    Adjusted Earnings per

     Share(ii)                    $ 0.61      $ 0.70      $ 2.85      $ 3.20

    -------------------------------------------------------------------------

    -------------------------------------------------------------------------

    (i)  Includes per share impact of restructuring and other related costs,

         net of tax.

    (ii) May not add due to rounding.

 

 

 

    Consolidated Financial Statements

    (Expressed in Canadian dollars)

 

    CANADA BREAD COMPANY, LIMITED

 

    Three months and Full Year ended December 31, 2010 and 2009

 

 

    CANADA BREAD COMPANY, LIMITED

    Consolidated Balance Sheets

    (In thousands of Canadian dollars)

 

    -------------------------------------------------------------------------

    -------------------------------------------------------------------------

                                                           As at December 31,

                                                            2010        2009

    -------------------------------------------------------------------------

    ASSETS

 

    Current Assets:

      Cash and cash equivalents                      $    84,401 $    57,698

      Accounts receivable                                 29,773      63,620

      Note receivable                                     59,159           -

      Inventories                                         55,477      56,659

      Future tax asset                                     4,015       1,640

      Prepaid expenses and other assets                    4,516       4,438

      -----------------------------------------------------------------------

                                                     $   237,341 $   184,055

 

    Property and equipment                               391,690     387,252

    Goodwill                                             375,894     386,807

    Other long-term assets                                13,588      11,620

    Other intangible assets                               13,626      16,678

    -------------------------------------------------------------------------

                                                     $ 1,032,139 $   986,412

    -------------------------------------------------------------------------

    -------------------------------------------------------------------------

 

    LIABILITIES AND SHAREHOLDERS' EQUITY

 

    Current Liabilities:

      Bank indebtedness                              $     7,777 $     4,247

      Accounts payable and accrued charges               185,216     172,172

      Due to Maple Leaf Foods Inc.                         5,336       3,817

      Dividends payable                                    1,525       1,525

      Income and other taxes payable                       3,248      13,155

      Current portion of long-term debt                    2,332           -

      -----------------------------------------------------------------------

                                                     $   205,434 $   194,916

 

    Long-term debt                                         1,629       2,547

    Future tax liability                                  30,797      33,338

    Other long-term liabilities                            8,433       8,524

    Shareholders' equity                                 785,846     747,087

    -------------------------------------------------------------------------

                                                     $ 1,032,139 $   986,412

    -------------------------------------------------------------------------

    -------------------------------------------------------------------------

 

 

    CANADA BREAD COMPANY, LIMITED

    Consolidated Statements of Earnings

    (In thousands of Canadian dollars, except share amounts)

 

    -------------------------------------------------------------------------

                                  Three months ended              Year ended

                                         December 31,            December 31,

                                    2010        2009        2010        2009

    -------------------------------------------------------------------------

                              (Unaudited) (Unaudited)

 

    Sales                    $   393,079 $   432,190 $ 1,588,437 $ 1,705,788

    Cost of goods sold           306,574     342,213   1,254,901   1,365,470

    -------------------------------------------------------------------------

    Gross margin             $    86,505 $    89,977 $   333,536 $   340,318

    Selling, general and

     administrative expenses      59,168      60,846     223,059     219,781

    -------------------------------------------------------------------------

    Earnings from operations

     before the following:   $    27,337 $    29,131 $   110,477 $   120,537

    Restructuring and other

     related costs                (2,527)     (3,637)    (15,548)     (4,908)

    Other income                  (6,013)         10      (5,819)      2,439

    -------------------------------------------------------------------------

    Earnings before interest

     and income taxes        $    18,797 $    25,504 $    89,110 $   118,068

    Interest expense                 471       1,104       3,308       5,084

    -------------------------------------------------------------------------

    Earnings before income

     taxes                   $    18,326 $    24,400 $    85,802 $   112,984

    Income taxes                   4,745       9,391      24,827      35,506

    -------------------------------------------------------------------------

    Net earnings             $    13,581 $    15,009 $    60,975 $    77,478

    -------------------------------------------------------------------------

    -------------------------------------------------------------------------

    Earnings per share -

     basic and diluted       $      0.54 $      0.59 $      2.40 $      3.05

    Weighted average number

     of shares (millions)           25.4        25.4        25.4        25.4

    -------------------------------------------------------------------------

    -------------------------------------------------------------------------

 

 

    CANADA BREAD COMPANY, LIMITED

    Consolidated Statements of Comprehensive Income

    (In thousands of Canadian dollars)

 

    -------------------------------------------------------------------------

                                  Three months ended              Year ended

                                         December 31,            December 31,

                                    2010        2009        2010        2009

    -------------------------------------------------------------------------

                              (Unaudited) (Unaudited)

 

    Net earnings             $    13,581 $    15,009 $    60,975 $    77,478

 

    Other comprehensive

     income (loss)

 

      Change in accumulated

       foreign currency

       translation adjustment     (8,748)    (10,684)    (21,704)    (34,398)

      Change in unrealized

       derivative loss on

       cash flow hedges            3,932         650       5,588       1,754

      -----------------------------------------------------------------------

                             $    (4,816) $  (10,034) $  (16,116) $  (32,644)

    -------------------------------------------------------------------------

    Comprehensive income     $     8,765  $    4,975  $   44,859  $   44,834

    -------------------------------------------------------------------------

    -------------------------------------------------------------------------

 

    Consolidated Statements of Retained Earnings

    (In thousands of Canadian dollars)

    -------------------------------------------------------------------------

                                                     Years ended December 31,

                                                            2010        2009

    -------------------------------------------------------------------------

    Retained earnings, beginning of year              $  658,541  $  587,163

 

    Net earnings                                          60,975      77,478

 

    Dividends declared ($0.24 per share; 2009:

     $0.24 per share)                                     (6,100)     (6,100)

    -------------------------------------------------------------------------

    Retained earnings, end of year                    $  713,416  $  658,541

    -------------------------------------------------------------------------

    -------------------------------------------------------------------------

 

 

    CANADA BREAD COMPANY, LIMITED

    Consolidated Statements of Cash Flows

    (In thousands of Canadian dollars)

 

    -------------------------------------------------------------------------

                                  Three months ended              Year ended

                                         December 31,            December 31,

                                    2010        2009        2010        2009

    -------------------------------------------------------------------------

                              (Unaudited) (Unaudited)

    CASH PROVIDED BY (USED IN):

 

    Operating activities

      Net earnings             $  13,581   $  15,009   $  60,975   $  77,478

      Add (deduct) items not

       affecting cash:

        Depreciation and

         amortization             11,999      12,319      50,159      53,992

        Future income taxes         (471)      2,166      (6,894)         67

        Loss on sale of

         property and equipment      235          10         126         471

        Change in provision for

         restructuring and

         other related costs       1,468       2,811      11,561       2,204

        Amortization of

         terminated interest

         rate swaps                  113         658       2,089       1,975

        Loss on

         interest rate swaps       5,876                   5,876

      Other                          212        (266)         42      (2,826)

      Change in non-cash

       operating working capital (39,117)     10,495     (33,449)    (24,315)

    -------------------------------------------------------------------------

    Cash provided by (used in)

     operating activities      $  (6,104)   $ 43,202   $  90,485   $ 109,046

    -------------------------------------------------------------------------

    Financing activities

      Dividends paid           $  (1,525)  $  (1,525)  $  (6,100)  $  (6,100)

      Changes in long-term debt    1,430       2,547       2,000      (1,971)

      Settlement of interest

       rate swaps with Maple

       Leaf Foods Inc.                 -           -           -      (8,502)

    -------------------------------------------------------------------------

    Cash provided by (used in)

     financing activities      $     (95)   $  1,022   $  (4,100)  $ (16,573)

    -------------------------------------------------------------------------

    Investing activities

      Additions to property

       and equipment           $ (18,707)  $ (11,212)  $ (66,595)  $ (41,659)

      Proceeds from sale of

       property and equipment      2,374          32       3,114         547

      Change in intangible

       assets                        249         501         254         502

      Other                           16        (286)         15      (1,239)

    -------------------------------------------------------------------------

    Cash used in investing

     activities                $ (16,068)  $ (10,965)  $ (63,212)  $ (41,849)

    -------------------------------------------------------------------------

    Increase (decrease) in

     cash and cash equivalents $ (22,267)  $  33,259   $  23,173   $  50,624

 

    Net cash and cash

     equivalents, beginning of

     period                       98,891      20,192      53,451       2,827

    -------------------------------------------------------------------------

    Net cash and cash

     equivalents, end of

     period                    $  76,624   $  53,451   $  76,624   $  53,451

    -------------------------------------------------------------------------

    Net cash and cash

     equivalents is

     comprised of:

 

    Cash and cash equivalents  $  84,401   $  57,698   $  84,401   $  57,698

    Bank Indebtedness             (7,777)     (4,247)     (7,777)     (4,247)

    -------------------------------------------------------------------------

    Net cash and cash

     equivalents, end of

     period                    $  76,624   $  53,451   $  76,624   $  53,451

    -------------------------------------------------------------------------

    -------------------------------------------------------------------------

 

 

 

    CANADA BREAD COMPANY, LIMITED

    Segmented Financial Information

    (In thousands of Canadian dollars)

 

    -------------------------------------------------------------------------

                                  Three months ended              Year ended

                                         December 31,            December 31,

                                    2010        2009        2010        2009

    -------------------------------------------------------------------------

                              (Unaudited) (Unaudited)

    Sales

      Fresh Bakery           $   261,876 $   279,244 $ 1,086,827 $ 1,119,790

      Frozen Bakery              131,203     152,946     501,610     585,998

    -------------------------------------------------------------------------

                             $   393,079 $   432,190 $ 1,588,437 $ 1,705,788

    -------------------------------------------------------------------------

    -------------------------------------------------------------------------

    Earnings from operations

     before restructuring and

     other related costs and

     other income

      Fresh Bakery           $    20,623 $    20,078 $    99,226 $    91,535

      Frozen Bakery                6,714       9,053      11,251      29,002

    -------------------------------------------------------------------------

                             $    27,337 $    29,131 $   110,477 $   120,537

    -------------------------------------------------------------------------

    -------------------------------------------------------------------------

    Capital expenditures

      Fresh Bakery           $    14,571 $     6,045 $    47,880 $    21,722

      Frozen Bakery                4,136       5,167      18,715      19,937

    -------------------------------------------------------------------------

                             $    18,707 $    11,212 $    66,595 $    41,659

    -------------------------------------------------------------------------

    -------------------------------------------------------------------------

    Depreciation and

     amortization

      Fresh Bakery           $     6,292 $     6,816 $    26,866 $    27,632

      Frozen Bakery                5,707       5,503      23,293      26,360

    -------------------------------------------------------------------------

                             $    11,999 $    12,319 $    50,159 $    53,992

    -------------------------------------------------------------------------

    -------------------------------------------------------------------------

 

    -------------------------------------------------------------------------

                                                           As at       As at

                                                    December 31, December 31,

                                                            2010        2009

    -------------------------------------------------------------------------

    Total assets

      Fresh Bakery                                   $   470,339 $   441,020

      Frozen Bakery                                      451,810     476,681

      Non-allocated assets                               109,990      68,711

    -------------------------------------------------------------------------

                                                     $ 1,032,139 $   986,412

    -------------------------------------------------------------------------

    -------------------------------------------------------------------------

    Goodwill

      Fresh Bakery                                   $   157,194 $   155,946

      Frozen Bakery                                      218,700     230,861

    -------------------------------------------------------------------------

                                                     $   375,894 $   386,807

    -------------------------------------------------------------------------

    -------------------------------------------------------------------------

SOURCE CANADA BREAD COMPANY, LIMITED

Source: www.prnewswire.com

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