Maple Leaf Foods Reports Results for First Quarter 2013
TSX: MFI
www.mapleleaffoods.com
-
Adjusted Operating Earnings(1)(2) decreased 76.2% to
$7.6 million compared to$31.7 million last year -
Net loss(2) increased to
$14.7 million from a loss of$5.8 million last year -
Adjusted Earnings per Share(2)(3) decreased to a loss of
$0.06 per share from Adjusted Earnings per Share of$0.06 last year
"This was a very difficult quarter, with lower earnings in our Protein
business overshadowing good improvement in our Bakery results," said
(1) | Adjusted Operating Earnings, a non-IFRS measure, is used by Management to evaluate financial operating results. It is defined as earnings before income taxes adjusted for items that are not considered representative of on-going operational activities of the business, and items where the economic impact of the transactions will be reflected in earnings in future periods when the underlying asset is sold or transferred. Please refer to the section entitled Reconciliation of Non-IFRS Financial Measures at the end of this news release. |
(2) | 2012 figures have been restated for the impact of adopting the revised International Accounting Standard 19 Employee Benefits ("IAS 19"), as disclosed in Note 24 of the Company's 2013 first quarter unaudited condensed consolidated interim financial statements. |
(3) | Adjusted Earnings per Share, a non-IFRS measure, is used by Management to evaluate on-going financial operating results. It is defined as basic earnings per share attributable to common shareholders, and is adjusted for all items that are not considered representative of on-going operational activities of the business, and items where the economic impact of the transactions will be reflected in earnings in future periods when the underlying asset is sold or transferred. Please refer to the section entitled Reconciliation of Non-IFRS Financial Measures at the end of this news release. |
Financial Overview
Sales of
Adjusted Operating Earnings for the first quarter were
Net loss increased to
Several items are excluded from the discussions of underlying earnings performance as they are not representative of on-going operational activities. Refer to the section entitled Reconciliation of Non-IFRS Financial Measures in this news release.
Business Segment Review
Following is a summary of sales by business segment:
(Unaudited) | First Quarter | |
($ thousands) | 2013 | 2012 |
Meat Products Group | $676,957 | $725,535 |
Agribusiness Group | 67,450 | 65,298 |
Protein Group | $744,407 | $790,833 |
Bakery Products Group | 368,426 | 369,990 |
Sales | $1,112,833 | $1,160,823 |
Following is a summary of Adjusted Operating Earnings by business segment:
(Unaudited) | First Quarter | |
($ thousands) | 2013 | 2012(1) |
Meat Products Group | ($10,452) | $15,129 |
Agribusiness Group | 5,380 | 18,154 |
Protein Group | ($5,072) | $33,283 |
Bakery Products Group | 14,124 | 2,359 |
Non-allocated Costs in Adjusted Operating Earnings(2) |
(1,498) | (3,911) |
Adjusted Operating Earnings | $7,554 | $31,731 |
(1) | 2012 Adjusted Operating Earnings have been restated for the impact of adopting the revised International Accounting Standard 19 Employee Benefits ("IAS 19"), as disclosed in Note 24 of the Company's 2013 first quarter unaudited condensed consolidated interim financial statements |
(2) | Non-allocated costs comprise expenses not separately identifiable to business segment groups, and do not form part of the measures used by the Company when assessing the segments' operating results. |
Results for the Company's Meat Products and Agribusiness Groups should
be viewed in combination due to intercompany transactions and
correlated factors within these operations.
Sales for the
Includes value-added prepared meats, lunch kits; and fresh pork, poultry
and turkey products sold to retail, foodservice, industrial and
convenience channels. Includes leading Canadian brands such as Maple
Leaf ®, Schneiders ® and many leading sub-brands.
Adjusted Operating Earnings for the first quarter declined to a loss of
Earnings in primary pork processing were primarily impacted by a rapid devaluation of the Japanese Yen that reduced margins on pork exports, lower contributions from hedging programs, and lower returns from by-product sales. Industry processing margins continued to be negative during the quarter, although improved compared to last year. Earnings in the poultry business were affected by lower industry processing margins, partly offset by higher pricing in value-added channels.
Consists of Canadian hog production and animal by-product recycling
operations, including biodiesel manufacturing and distribution.
Sales in the
Adjusted Operating Earnings in the first quarter declined 70.4% to
Includes fresh and frozen bakery products, including breads, rolls,
bagels, specialty and artisan breads, sweet goods, and fresh pasta and
sauces sold to retail, foodservice and convenience channels. It
includes national brands such as Dempster's®, Tenderflake®, Olivieri®
and New York Bakery CoTM, and many leading regional brands.
Adjusted Operating Earnings increased to
The substantial earnings increase in the fresh bakery business was
mostly the result of improved operating efficiencies, contribution from
the new
Higher margins in the North American frozen bakery business were largely
due to price increases implemented during the quarter, while increased
earnings in the fresh pasta business resulted from an inventory
write-off in the first quarter of last year that did not re-occur.
Although the
Long-Term EBITDA(1) Margin Targets
When the Company's value creation plan was announced in 2010, Management
projected that improvements resulting from the plan would achieve an
estimated Earnings Before Interest, Tax, Depreciation and Amortization
("EBITDA") margin of 12.5% in 2015. As a result of the subsequent
adoption of International Accounting Standard 19 Employee Benefits (IAS
19), effective
The impact of adopting revised IAS 19 is fully described in Note 24 of the Company's 2013 first quarter unaudited condensed consolidated interim financial statements.
(1) EBITDA is calculated as earnings from operations and before interest and income taxes plus depreciation and intangible asset amortization, adjusted for items that are not considered representative of on-going operational activities of the business, and items where the economic impact of the transactions will be reflected in earnings in future periods when the underlying asset is sold or transferred.
Subsequent Events
On
On
Other Matters
On
An investor presentation related to the Company's first quarter
financial results is available at www.mapleleaffoods.com and can be found under Investor Relations on the Quarterly Results
page. A conference call will be held at
A webcast presentation of the first quarter financial results will also be available at http://investor.mapleleaf.ca via a link: http://www.media-server.com/m/p/zc2zs4i3.
The Company's full financial statements and related Management's Discussion and Analysis are available for download on the Company's website.
Reconciliation of Non-IFRS Financial Measures
The Company uses the following non-IFRS measures: Adjusted Operating Earnings and Adjusted Earnings per Share. Management believes that these non-IFRS 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 IFRS, 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 IFRS.
Adjusted Operating Earnings
Adjusted Operating Earnings, a non-IFRS measure, is used by Management to evaluate financial operating results. It is defined as earnings before income taxes adjusted for items that are not considered representative of on-going operational activities of the business, and items where the economic impact of the transactions will be reflected in earnings in future periods when the underlying asset is sold or transferred. The table below provides a reconciliation of net earnings as reported under IFRS in the unaudited condensed consolidated interim statements of earnings for the three month periods as indicated below to Adjusted Operating Earnings. Management believes that this basis is the most appropriate on which to evaluate operating results, as they are representative of the on-going operations of the Company.
Three months ended March 31, 2013 | |||||||||||
Meat | Bakery | ||||||||||
(Unaudited) | Products | Agribusiness | Products | Unallocated | |||||||
($ thousands) | Group | Group | Group | costs | Consolidated | ||||||
Net loss | $ | (14,742) | |||||||||
Income taxes | (10,463) | ||||||||||
Earnings from operations before income taxes | $ | (25,205) | |||||||||
Interest expense | 16,500 | ||||||||||
Change in the fair value of non-designated | |||||||||||
interest rate swaps | (617) | ||||||||||
Other (income) expense | (43,394) | 862 | 2,514 | (793) | (40,811) | ||||||
Restructuring and other related costs | 35,213 | - | 10,411 | 1,745 | 47,369 | ||||||
Earnings from Operations | $ | (10,452) | $ | 5,380 | $ | 14,124 | $ | (11,816) | $ | (2,764) | |
Decrease in fair value of biological assets | - | - | - | 5,277 | 5,277 | ||||||
Unrealized losses on commodity futures contracts | - | - | - | 5,041 | 5,041 | ||||||
Adjusted Operating Earnings | $ | (10,452) | $ | 5,380 | $ | 14,124 | $ | (1,498) | $ | 7,554 |
Three months ended March 31, 2012(1) | |||||||||||
Meat | Bakery | ||||||||||
(Unaudited) | Products | Agribusiness | Products | Unallocated | |||||||
($ thousands) | Group | Group | Group | costs | Consolidated | ||||||
Net loss | $ | (5,775) | |||||||||
Income taxes | (169) | ||||||||||
Earnings from operations before income taxes | $ | (5,944) | |||||||||
Interest expense | 17,643 | ||||||||||
Change in the fair value of non-designated | |||||||||||
interest rate swaps | (5,153) | ||||||||||
Other (income) expense | 92 | (90) | (22) | 135 | 115 | ||||||
Restructuring and other related costs | 14,472 | - | 5,884 | - | 20,356 | ||||||
Earnings from Operations | $ | 15,129 | $ | 18,154 | $ | 2,359 | $ | (8,625) | $ | 27,017 | |
Increase in fair value of biological assets | - | - | - | (2,132) | (2,132) | ||||||
Unrealized losses on commodity futures contracts | - | - | - | 6,846 | 6,846 | ||||||
Adjusted Operating Earnings | $ | 15,129 | $ | 18,154 | $ | 2,359 | $ | (3,911) | $ | 31,731 |
(1) |
2012 Net loss and Adjusted Operating Earnings have been restated for the
impact of adopting the revised International Accounting Standard 19
Employee Benefits ("IAS 19"), as disclosed in Note 24 of the Company's
2013 first quarter unaudited condensed consolidated interim financial
statements |
Adjusted Earnings per Share
Adjusted Earnings per Share, a non-IFRS measure, is used by Management to evaluate on-going financial operating results. It is defined as basic earnings per share attributable to common shareholders, and is adjusted for items that are not considered representative of on-going operational activities of the business, and items where the economic impact of the transactions will be reflected in earnings in future periods when the underlying asset is sold or transferred. The table below provides a reconciliation of basic earnings per share as reported under IFRS in the unaudited condensed consolidated interim statements of earnings for the three month periods as indicated below to Adjusted Earnings per Share. Management believes this basis is the most appropriate on which to evaluate financial results as they are representative of the on-going operations of the Company.
Three months ended | |||||
(Unaudited) | March 31, | ||||
($ per share) | 2013 | 2012(5) | |||
Basic loss per share | $ | (0.11) | $ | (0.04) | |
Restructuring and other related costs(1) | 0.25 | 0.11 | |||
Items not considered representative of on-going operations(2) | (0.25) | - | |||
Change in the fair value of non-designated interest rate swaps(3) | (0.01) | (0.03) | |||
Change in the fair value of unrealized (gains) losses on commodity | |||||
futures contracts(3) | 0.03 | 0.03 | |||
Change in the fair value of biological assets(3) | 0.03 | (0.01) | |||
Adjusted Earnings per Share(4) | $ | (0.06) | $ | 0.06 |
(1) | Includes per share impact of restructuring and other related costs, net of tax and non-controlling interest. |
(2) | Includes gains/losses associated with non-operational activities, including gains/losses related to restructuring activities, business combinations, discontinued operations, and assets held for sale, all net of tax. |
(3) | Includes per share impact of the change in fair value of non-designated interest rate swaps, hedge ineffectiveness recognized in earnings, unrealized (gains) losses on commodity futures contracts and the change in fair value of biological assets, net of tax. |
(4) | May not add due to rounding. |
(5) | 2012 basic loss and Adjusted Earnings per Share have been restated for the impact of adopting the revised International Accounting Standard 19 Employee Benefits ("IAS 19"), as disclosed in Note 24 of the Company's 2013 first quarter unaudited condensed consolidated interim financial statements. |
Forward-Looking Statements
This document contains, and the Company's oral and written public communications often contain, "forward-looking information" within the meaning of applicable securities law. These statements 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, objectives, expectations, anticipations, estimates and intentions. Specific forward-looking information in this document includes, but is not limited to, statements with respect to the anticipated benefits, timing, actions, costs and investments associated with the Company's Value Creation Plan, expectations regarding Net Debt to EBITDA ratios during the implementation of the Plan, expectations regarding the use of derivatives, futures and options, expectations regarding improving efficiencies, the expected use of cash balances, source of funds for ongoing business requirements including renewal of existing securitization facilities, capital investments and debt repayment, expectations regarding acquisitions and divestitures, the timing of new plant openings and old plant closures, job losses and LEED® certification, expectations regarding the impact of new accounting standards, expectations regarding sufficiency of the allowance for uncollectible accounts and expectations regarding pension plan performance and future pension plan liabilities and contributions. 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 information. These statements are not guarantees of future performance and involve assumptions and risks and uncertainties that are difficult to predict.
In addition, these statements and expectations concerning the
performance of the Company's business in general are based on a number
of factors and assumptions including, but not limited to: the condition
of the Canadian, U.S.,
Factors that could cause actual results or outcomes to differ materially
from the results expressed, implied or forecasted by forward-looking
information is discussed more fully in the Company's Annual
Management's Discussion and Analysis for the period ended
Condensed Consolidated Interim Financial Statements
(Expressed in Canadian dollars)
(Unaudited)
Three months ended
Consolidated Balance Sheets
(In thousands of Canadian dollars) | As at March 31, | As at March 31, | As at December 31, | As at January 1, | |||||
(Unaudited) | 2013 | 2012 | 2012 | 2012 | |||||
(Restated) | (Restated) | (Restated) | |||||||
ASSETS | |||||||||
Current assets | |||||||||
Cash and cash equivalents | $ | 92,438 | $ | 1,279 | $ | 90,414 | $ | - | |
Accounts receivable | 108,776 | 98,993 | 116,503 | 133,504 | |||||
Notes receivable | 119,555 | 127,321 | 125,487 | 98,545 | |||||
Inventories | 325,363 | 326,483 | 301,804 | 293,231 | |||||
Biological assets | 79,934 | 53,003 | 78,127 | 49,265 | |||||
Income and other taxes recoverable | 39,731 | 50,258 | 41,527 | 43,789 | |||||
Prepaid expenses and other assets | 21,362 | 20,085 | 12,590 | 24,688 | |||||
Assets held for sale | 22,847 | 30,660 | 37,087 | - | |||||
$ | 810,006 | $ | 708,082 | $ | 803,539 | $ | 643,022 | ||
Property and equipment | 1,243,101 | 1,070,342 | 1,212,177 | 1,067,246 | |||||
Investment property | 12,019 | 12,346 | 11,979 | 11,232 | |||||
Employee benefits | 133,152 | 139,531 | 107,831 | 133,942 | |||||
Other long-term assets | 12,731 | 11,466 | 13,663 | 11,926 | |||||
Deferred tax asset | 127,288 | 123,857 | 132,558 | 127,456 | |||||
Goodwill | 754,746 | 753,322 | 753,156 | 753,739 | |||||
Intangible assets | 208,033 | 199,411 | 208,793 | 191,896 | |||||
Total assets | $ | 3,301,076 | $ | 3,018,357 | $ | 3,243,696 | $ | 2,940,459 | |
LIABILITIES AND EQUITY | |||||||||
Current liabilities | |||||||||
Bank indebtedness | $ | 33,491 | $ | 4,786 | $ | 48,243 | $ | 36,404 | |
Accounts payable and accruals | 447,589 | 451,609 | 446,911 | 482,059 | |||||
Provisions | 41,720 | 38,291 | 26,335 | 44,255 | |||||
Current portion of long-term debt | 6,823 | 5,677 | 6,573 | 5,618 | |||||
Other current liabilities | 17,842 | 19,421 | 14,961 | 20,409 | |||||
$ | 547,465 | $ | 519,784 | $ | 543,023 | $ | 588,745 | ||
Long-term debt | 1,256,708 | 1,085,649 | 1,206,945 | 941,956 | |||||
Employee benefits | 371,344 | 366,560 | 420,933 | 350,853 | |||||
Provisions | 34,921 | 28,977 | 25,800 | 28,936 | |||||
Other long-term liabilities | 75,647 | 84,888 | 80,084 | 88,153 | |||||
Deferred tax liability | 9,449 | 8,440 | 8,912 | 11,703 | |||||
Total liabilities | $ | 2,295,534 | $ | 2,094,298 | $ | 2,285,697 | $ | 2,010,346 | |
Shareholders' equity | |||||||||
Share capital | $ | 902,986 | $ | 902,810 | $ | 902,810 | $ | 902,810 | |
Deficit | (31,151) | (91,099) | (72,701) | (78,674) | |||||
Contributed surplus | 82,673 | 69,763 | 75,913 | 64,327 | |||||
Accumulated other | |||||||||
comprehensive loss | (13,958) | (15,255) | (13,263) | (17,042) | |||||
Treasury stock | (1,845) | (6,347) | (1,845) | (6,347) | |||||
Total shareholders' equity | $ | 938,705 | $ | 859,872 | $ | 890,914 | $ | 865,074 | |
Non-controlling interest | 66,837 | 64,187 | 67,085 | 65,039 | |||||
Total equity | $ | 1,005,542 | $ | 924,059 | $ | 957,999 | $ | 930,113 | |
Total liabilities and equity | $ | 3,301,076 | $ | 3,018,357 | $ | 3,243,696 | $ | 2,940,459 | |
Consolidated Statements of Earnings (Loss)
(In thousands of Canadian dollars, except share amounts) | Three months ended March 31, | |||||||||
(Unaudited) | 2013 | 2012 | ||||||||
(Restated) | ||||||||||
Sales | $ | 1,112,833 | $ | 1,160,823 | ||||||
Cost of goods sold | 985,518 | 989,882 | ||||||||
Gross margin | $ | 127,315 | $ | 170,941 | ||||||
Selling, general and administrative expenses | 130,079 | 143,924 | ||||||||
Earnings before the following: | $ | (2,764) | $ | 27,017 | ||||||
Restructuring and other related costs | (47,369) | (20,356) | ||||||||
Change in fair value of non-designated interest rate swaps | 617 | 5,153 | ||||||||
Other income (expense) | 40,811 | (115) | ||||||||
(Loss) earnings before interest and income taxes | $ | (8,705) | $ | 11,699 | ||||||
Interest expense | 16,500 | 17,643 | ||||||||
Loss before income taxes | $ | (25,205) | $ | (5,944) | ||||||
Income taxes | (10,463) | (169) | ||||||||
Net loss | $ | (14,742) | $ | (5,775) | ||||||
Attributed to: | ||||||||||
Common shareholders | $ | (14,938) | $ | (5,791) | ||||||
Non-controlling interest | 196 | 16 | ||||||||
$ | (14,742) | $ | (5,775) | |||||||
Loss per share attributable to common shareholders | ||||||||||
Basic loss per share | $ | (0.11) | $ | (0.04) | ||||||
Diluted loss per share | $ | (0.11) | $ | (0.04) | ||||||
Weighted average number of shares (millions) | 139.9 | 139.5 | ||||||||
Consolidated Statements of Comprehensive Income (Loss)
(In thousands of Canadian dollars) | Three months ended March 31, | ||||||||||
(Unaudited) | 2013 | 2012 | |||||||||
(Restated) | |||||||||||
Net loss | $ | (14,742) | $ | (5,775) | |||||||
Other comprehensive income (loss) | |||||||||||
Item that will not be reclassified to profit or loss: | |||||||||||
Change in actuarial gains and losses | 62,734 | (1,116) | |||||||||
Total item that will not be reclassified to profit or loss | 62,734 | (1,116) | |||||||||
Items that are or may be reclassified subsequently to profit or loss: | |||||||||||
Change in accumulated foreign currency translation adjustment | 753 | (2,217) | |||||||||
Change in unrealized gains and losses on cash flow hedges | (1,271) | 3,706 | |||||||||
Total items that are or may be reclassified subsequently to profit or loss | (518) | 1,489 | |||||||||
$ | 62,216 | $ | 373 | ||||||||
Comprehensive income (loss) | $ | 47,474 | $ | (5,402) | |||||||
Attributed to: | |||||||||||
Common shareholders | $ | 46,451 | $ | (5,058) | |||||||
Non-controlling interest | 1,023 | (344) | |||||||||
Consolidated Statements of Changes in Total Equity
Attributable to Common Shareholders | ||||||||||||||||||
Total accumulated other | Non- | |||||||||||||||||
(In thousands of Canadian dollars) | Share | Retained | Contributed | comprehensive | Treasury | controlling | Total | |||||||||||
(Unaudited) | capital | deficit | surplus | loss | stock | interest | equity | |||||||||||
Balance at | ||||||||||||||||||
December 31, 2012 | $ | 902,810 | $ | (72,701) | $ | 75,913 | $ | (13,263) | $ | (1,845) | $ | 67,085 | $ | 957,999 | ||||
(restated) | ||||||||||||||||||
Net earnings | - | (14,938) | - | - | - | 196 | (14,742) | |||||||||||
Other comprehensive income (loss) | - | 62,084 | - | (695) | - | 827 | 62,216 | |||||||||||
Dividends declared ($0.04 per share) | - | (5,596) | - | - | - | (1,271) | (6,867) | |||||||||||
Stock-based compensation expense | - | - | 5,560 | - | - | - | 5,560 | |||||||||||
Exercise of stock options | 176 | - | - | - | - | - | 176 | |||||||||||
Other | - | - | 1,200 | - | - | - | 1,200 | |||||||||||
Balance at March 31, 2013 | $ | 902,986 | $ | (31,151) | $ | 82,673 | $ | (13,958) | $ | (1,845) | $ | 66,837 | $ | 1,005,542 | ||||
Attributable to Common Shareholders | ||||||||||||||||||
Total accumulated other | Non- | |||||||||||||||||
(In thousands of Canadian dollars) | Share | Retained | Contributed | comprehensive | Treasury | controlling | Total | |||||||||||
(Unaudited) | capital | deficit | surplus | loss | stock | interest | equity | |||||||||||
(Restated) | ||||||||||||||||||
Balance at | ||||||||||||||||||
January 1, 2012 | $ | 902,810 | $ | (78,674) | $ | 64,327 | $ | (17,042) | $ | (6,347) | $ | 65,039 | $ | 930,113 | ||||
(restated) | ||||||||||||||||||
Net earnings (loss) | - | (5,791) | - | - | - | 16 | (5,775) | |||||||||||
Other comprehensive income (loss) | - | (1,054) | - | 1,787 | - | (360) | 373 | |||||||||||
Dividends declared ($0.04 per share) | - | (5,580) | - | - | - | (508) | (6,088) | |||||||||||
Stock-based compensation expense | - | - | 5,436 | - | - | - | 5,436 | |||||||||||
Balance at March 31, 2012 | $ | 902,810 | $ | (91,099) | $ | 69,763 | $ | (15,255) | $ | (6,347) | $ | 64,187 | $ | 924,059 | ||||
Consolidated Statements of Cash Flows
(In thousands of Canadian dollars) | Three months ended March 31, | |||||||||||
(Unaudited) | 2013 | 2012 | ||||||||||
(Restated) | ||||||||||||
CASH (USED IN) PROVIDED BY: | ||||||||||||
Operating activities | ||||||||||||
Net loss | $ | (14,742) | $ | (5,775) | ||||||||
Add (deduct) items not affecting cash: | ||||||||||||
Change in fair value of biological assets | 5,278 | (2,132) | ||||||||||
Depreciation and amortization | 33,852 | 31,389 | ||||||||||
Stock-based compensation | 5,560 | 5,436 | ||||||||||
Deferred income taxes | (14,738) | (2,024) | ||||||||||
Income tax current | 4,275 | 1,855 | ||||||||||
Interest expense | 16,500 | 17,643 | ||||||||||
(Gain) loss on sale of property and equipment | (956) | 20 | ||||||||||
Gain on sale of assets held for sale | (45,388) | - | ||||||||||
Gain on acquisition | 985 | - | ||||||||||
Change in fair value of non-designated interest rate swaps | (617) | (5,153) | ||||||||||
Change in fair value of derivative financial instruments | 4,967 | 5,949 | ||||||||||
Impairment of assets | 5,134 | - | ||||||||||
Increase in pension liability | 7,748 | 8,611 | ||||||||||
Net income taxes paid | (7,074) | (5,599) | ||||||||||
Interest paid | (15,431) | (16,793) | ||||||||||
Change in provision for restructuring and other related costs | 38,105 | 5,443 | ||||||||||
Other | (4,990) | (949) | ||||||||||
Change in non-cash operating working capital | (20,857) | (62,870) | ||||||||||
Cash used in operating activities | $ | (2,389) | $ | (24,949) | ||||||||
Financing activities | ||||||||||||
Dividends paid | $ | (5,596) | $ | (5,580) | ||||||||
Dividends paid to non-controlling interest | (1,271) | (508) | ||||||||||
Net increase in long-term debt | 43,525 | 150,000 | ||||||||||
Exercise of stock options | 176 | - | ||||||||||
Other | - | (462) | ||||||||||
Cash provided by financing activities | $ | 36,834 | $ | 143,450 | ||||||||
Investing activities | ||||||||||||
Additions to long term-assets | $ | (76,055) | $ | (55,806) | ||||||||
Acquisition of business | (922) | (31,130) | ||||||||||
Capitalization of interest expense | (3,250) | (1,214) | ||||||||||
Proceeds from sale of long-term assets | 62,558 | 2,546 | ||||||||||
Cash used in investing activities | $ | (17,669) | $ | (85,604) | ||||||||
Increase in cash and cash equivalents | $ | 16,776 | $ | 32,897 | ||||||||
Net cash and cash equivalents, beginning of period | 42,171 | (36,404) | ||||||||||
Net cash and cash equivalents, end of period | $ | 58,947 | $ | (3,507) | ||||||||
Net cash and cash equivalents is comprised of: | ||||||||||||
Cash and cash equivalents | $ | 92,438 | $ | 1,279 | ||||||||
Bank indebtedness | (33,491) | (4,786) | ||||||||||
Net cash and cash equivalents, end of period | $ | 58,947 | $ | (3,507) | ||||||||
Segmented Financial Information
Three months ended March 31, | ||||||||
2013 | 2012 | |||||||
Sales | ||||||||
Meat Products Group | $ | 676,957 | $ | 725,535 | ||||
Agribusiness Group | 67,450 | 65,298 | ||||||
Bakery Products Group | 368,426 | 369,990 | ||||||
$ | 1,112,833 | $ | 1,160,823 | |||||
Earnings before restructuring and other related | ||||||||
costs and other income | ||||||||
Meat Products Group | $ | (10,452) | $ | 15,129 | ||||
Agribusiness Group | 5,380 | 18,154 | ||||||
Bakery Products Group | 14,124 | 2,359 | ||||||
Non-allocated costs | (11,816) | (8,625) | ||||||
$ | (2,764) | $ | 27,017 | |||||
Capital expenditures | ||||||||
Meat Products Group | $ | 66,144 | $ | 38,972 | ||||
Agribusiness Group | 2,444 | 3,080 | ||||||
Bakery Products Group | 7,467 | 13,754 | ||||||
$ | 76,055 | $ | 55,806 | |||||
Depreciation and amortization | ||||||||
Meat Products Group | $ | 15,568 | $ | 14,766 | ||||
Agribusiness Group | 4,156 | 3,943 | ||||||
Bakery Products Group | 14,128 | 12,680 | ||||||
$ | 33,852 | $ | 31,389 | |||||
As at March 31, | As at March 31, | As at December 31, | As at January 1, | |||||||
2013 | 2012 | 2012 | 2012 | |||||||
Total assets | ||||||||||
Meat Products Group | $ | 1,695,950 | $ | 1,499,693 | $ | 1,617,413 | $ | 1,465,576 | ||
Agribusiness Group | 274,205 | 260,019 | 275,167 | 223,013 | ||||||
Bakery Products Group | 992,721 | 920,479 | 1,005,432 | 937,292 | ||||||
Non-allocated assets | 338,200 | 338,166 | 345,684 | 314,578 | ||||||
$ | 3,301,076 | $ | 3,018,357 | $ | 3,243,696 | $ | 2,940,459 | |||
Goodwill | ||||||||||
Meat Products Group | $ | 442,925 | $ | 442,805 | $ | 442,925 | $ | 442,336 | ||
Agribusiness Group | 13,845 | 13,845 | 13,845 | 13,845 | ||||||
Bakery Products Group | 297,976 | 296,672 | 296,386 | 297,558 | ||||||
$ | 754,746 | $ | 753,322 | $ | 753,156 | $ | 753,739 | |||
SOURCE
Investor Contact: Nick Boland,
VP Investor Relations: 416-926-2005
Media Contact: 416-926-2020