Maple Leaf Foods Reports Results for Second Quarter 2012
TSX: MFI
www.mapleleaffoods.com
-
Adjusted Operating Earnings(1) for the second quarter were
$71.9 million compared to$77.5 million last year -
Net earnings for the second quarter were
$32.5 million , compared to$24.6 million in the second quarter last year -
Adjusted Earnings per Share(2) were
$0.28 compared to$0.30 last year
"Our results rallied significantly from a weak first quarter due to
improved profitability in both our fresh bakery and prepared meats
businesses," said
(1): Adjusted Operating Earnings, a non-IFRS measure, is defined as earnings from operations before restructuring and other related costs and associated gains, other income (expense) and the impact of the change in fair value of non-designated interest rate swaps, unrealized (gains) losses on commodity futures contracts and the change in fair value of biological assets.
(2): Adjusted Earnings per Share ("Adjusted EPS"), a non-IFRS measure, is defined as basic earnings per share adjusted for the impact of restructuring and other related costs and associated gains, the impact of the change in fair value of non-designated interest rate swaps, hedge ineffectiveness recognized in earnings, unrealized (gains) losses on commodity futures contracts, and the change in fair value of biological assets, net of tax and non-controlling interest.
Please refer to the section entitled Reconciliation of Non-IFRS Financial Measures at the end of this news release.
Financial Overview
Business Segment Review
Following is a summary of sales by business segment:
(Unaudited) | Second Quarter | Year-to-Date | ||
($ thousands) | 2012 | 2011 | 2012 | 2011 |
Meat Products Group | $775,971 | $762,212 | $1,501,508 | $1,480,453 |
Agribusiness Group | 79,543 | 70,918 | 144,840 | 128,211 |
Protein Group | $855,514 | $833,130 | $1,646,348 | $1,608,664 |
Bakery Products Group | 404,736 | 405,071 | 774,725 | 777,479 |
Sales | $1,260,250 | $1,238,201 | $2,421,073 | $2,386,143 |
The following table summarizes Adjusted Operating Earnings by business segment:
(Unaudited) | Second Quarter | Year-to-Date | ||
($ thousands) | 2012 | 2011 | 2012 | 2011 |
Meat Products Group | $22,229 | $21,102 | $44,303 | $47,749 |
Agribusiness Group | 19,065 | 27,706 | 38,156 | 41,711 |
Protein Group | $41,294 | $48,808 | $82,459 | $89,460 |
Bakery Products Group | 32,150 | 29,884 | 35,415 | 42,071 |
Non-allocated Costs in Adjusted Operating Earnings(i) |
(1,559) | (1,156) | (5,470) | (3,308) |
Adjusted Operating Earnings | $71,885 | $77,536 | $112,404 | $128,223 |
(i) |
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. |
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 second quarter increased 5% to
Earnings in the prepared meats business benefited from price increases implemented in 2011 and early 2012 to manage rising inflationary costs and a higher margin sales mix due to strong product innovation and sales execution. Also contributing to stronger earnings were benefits from the Company's network transformation initiatives, including the closure of two sub-scale facilities last year and continued simplification of the prepared meats product portfolio.
Earnings increased in fresh poultry operations, benefiting from improvements in industry poultry processor margins. The business also benefited from continued growth in higher value products under the Maple Leaf Prime Chicken brand.
Earnings declined in primary pork processing, reflecting unfavourable
market conditions in
Consists of Canadian hog production, animal by-product recycling
operations including bio-diesel manufacturing and distribution.
Sales in the
Adjusted Operating Earnings for the second quarter of 2012 decreased 31%
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 for the second quarter of 2012 increased 8%
to
Frozen bakery earnings continued to improve due to higher pricing and
volumes in the North American business, an improved sales mix in the
Margin Targets
The Company previously disclosed a 2012 Earnings Before Interest, Tax, Depreciation and Amortization ("EBITDA") margin target of 9.5%. As a result of short-term weakness in primary pork industry margins and a challenging first quarter performance in the bakery business, the Company now expects EBITDA margin to be up to one percent lower than previously estimated. EBITDA margin in the bakery business is expected to average 11.5% for the last three quarters of the year, however lower first quarter performance may reduce the previously disclosed full year EBITDA margin of 11.5% by up to 1.5%. The protein business is expected to achieve a run rate of 8.5% by the end of the year however the full year margin may be up to 0.5% lower than the previously disclosed 2012 target of 8.5% primarily due to compressed primary pork processing margins in 2012. The Company's 2015 EBITDA margin targets of 12.5% remain unchanged.
Capital Expenditure Estimate
The Company currently estimates its capital expenditures for the full
year of 2012 will be approximately
Other Matters
On
An investor presentation related to the Company's second 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 second quarter financial results will also be available at http://www.media-server.com/m/p/ckjwbc92
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 EPS. 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
The following tables reconcile earnings from operations before restructuring and other related costs and associated gains, other income (expense) and the impact of the change in fair value of non-designated interest rate swaps, unrealized (gains) losses on commodity futures contracts and the change in fair value of biological assets to net earnings as reported under IFRS in the unaudited earnings for the three and six months 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, other income (expense) and the change in fair value of non-designated interest rate swaps, unrealized (gains) losses on commodity futures contracts and the change in fair value of biological assets are not representative of operational results during the period.
(Unaudited) | Three months ended June 30, 2012 | ||||||
($ thousands) |
Meat Products Group |
Agribusiness Group |
Bakery Products Group |
Unallocated costs |
Consolidated | ||
Net earnings | $32,526 | ||||||
Income taxes | 12,922 | ||||||
Earnings from operations before income taxes | $45,448 | ||||||
Interest expense | 18,413 | ||||||
Change in the fair value of non-designated interest rate swaps | 220 | ||||||
Other (income) expense | (2,259) | (433) | (1,349) | 624 | (3,417) | ||
Restructuring and other related costs | 8,571 | - | 1,205 | - | 9,776 | ||
Earnings from Operations | 22,229 | 19,065 | 32,150 | (3,004) | 70,440 | ||
Decrease in fair value of biological assets | - | - | - | 3,233 | 3,233 | ||
Unrealized gains on commodity futures contracts | - | - | - | (1,788) | (1,788) | ||
Adjusted Operating Earnings | $22,229 | $19,065 | $32,150 | $(1,559) | $71,885 |
(Unaudited) | Three months ended June 30, 2011 | ||||||
($ thousands) |
Meat Products Group |
Agribusiness Group |
Bakery Products Group |
Unallocated costs |
Consolidated | ||
Net earnings | $24,582 | ||||||
Income taxes | 10,441 | ||||||
Earnings from operations before income taxes | 35,023 | ||||||
Interest expense | 17,074 | ||||||
Change in the fair value of non-designated interest rate swaps | 5,623 | ||||||
Other (income) expense | (25) | 26 | - | 76 | 77 | ||
Restructuring and other related costs | 4,048 | - | 12,547 | - | 16,595 | ||
Earnings from Operations | 21,102 | 27,706 | 29,884 | (4,300) | 74,392 | ||
Decrease in fair value of biological assets | - | - | - | 9,828 | 9,828 | ||
Unrealized gains on commodity futures contracts | - | - | - | (6,684) | (6,684) | ||
Adjusted Operating Earnings | $21,102 | $27,706 | $29,884 | $(1,156) | $77,536 |
(Unaudited) | Six months ended June 30, 2012 | ||||||
($ thousands) |
Meat Products Group |
Agribusiness Group |
Bakery Products Group |
Unallocated costs |
Consolidated | ||
Net earnings | $33,289 | ||||||
Income taxes | 15,002 | ||||||
Earnings from operations before income taxes | 48,291 | ||||||
Interest expense | 36,056 | ||||||
Change in the fair value of non-designated interest rate swaps | (4,933) | ||||||
Other (income) expense | (2,167) | (523) | (1,371) | 760 | (3,301) | ||
Restructuring and other related costs | 23,043 | - | 7,089 | - | 30,132 | ||
Earnings from Operations | 44,303 | 38,156 | 35,415 | (11,629) | 106,245 | ||
Decrease in fair value of biological assets | - | - | - | 1,101 | 1,101 | ||
Unrealized losses on commodity futures contracts | - | - | - | 5,058 | 5,058 | ||
Adjusted Operating Earnings | $44,303 | $38,156 | $35,415 | $(5,470) | $112,404 |
(Unaudited) | Six months ended June 30, 2011 | ||||||
($ thousands) |
Meat Products Group |
Agribusiness Group |
Bakery Products Group |
Unallocated costs |
Consolidated | ||
Net earnings | $35,129 | ||||||
Income taxes | 12,867 | ||||||
Earnings from operations before income taxes | 47,996 | ||||||
Interest expense | 35,025 | ||||||
Change in the fair value of non-designated interest rate swaps | 958 | ||||||
Other (income) expense | (29) | (63) | (78) | 92 | (78) | ||
Restructuring and other related costs | 9,330 | - | 32,597 | 793 | 42,720 | ||
Earnings from Operations | 47,749 | 41,711 | 42,071 | (4,910) | 126,621 | ||
Decrease in fair value of biological assets | - | - | - | 4,321 | 4,321 | ||
Unrealized gains on commodity futures contracts | - | - | - | (2,719) | (2,719) | ||
Adjusted Operating Earnings | $47,749 | $41,711 | $42,071 | $(3,308) | $128,223 |
Adjusted Earnings per Share
The following table reconciles Adjusted Earnings per Share to basic earnings per share as reported under IFRS as indicated below. Management believes this is the most appropriate basis on which to evaluate financial results as restructuring and other related costs and associated gains, the changes in the fair value of non-designated interest rate swaps, hedge ineffectiveness recognized in earnings, unrealized (gains) losses on commodity futures contracts and the change in fair value of biological assets net of tax and non-controlling interests are not representative of operational results.
(Unaudited) |
Three months ended June 30, |
Six months ended June 30, |
||||
($ per share) | 2012 | 2011 | 2012 | 2011 | ||
Basic earnings per share | $0.21 | $0.17 | $0.22 | $0.24 | ||
Restructuring and other related costs(i) | 0.06 | 0.08 | 0.16 | 0.21 | ||
Change in the fair value of non-designated interest rate swaps(ii) | 0.00 | 0.03 | (0.03) | 0.00 | ||
Change in the fair value of unrealized (gains) losses on commodity futures contracts(ii) | (0.01) | (0.03) | 0.03 | (0.01) | ||
Change in the fair value of biological assets (ii) | 0.02 | 0.05 | 0.01 | 0.02 | ||
Adjusted Earnings per Share (iii) | $0.28 | $0.30 | $0.39 | $0.47 |
(i) | Includes per share impact of restructuring and other related costs, net of tax and non-controlling interest. |
(ii) |
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. |
(iii) | May not add due to rounding. |
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 improving business trends,
expectations regarding actions to reduce costs, restore and/or promote
volumes and/or increase prices, improve efficiencies, expected
duplicative overhead costs incurred due to the concurrent operation of
the new
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 and six months ended
Consolidated Balance Sheets
As at June 30, | As at June 30, | As at December 31, | |||||||||||
(In thousands of Canadian dollars) | 2012 | 2011 | 2011 | ||||||||||
(Unaudited) | (Unaudited) | ||||||||||||
ASSETS | |||||||||||||
Current assets | |||||||||||||
Cash and cash equivalents | $ | 83,631 | $ | - | $ | - | |||||||
Accounts receivable | 108,014 | 102,499 | 133,504 | ||||||||||
Notes receivable | 124,323 | 173,537 | 98,545 | ||||||||||
Inventories | 319,722 | 286,704 | 293,231 | ||||||||||
Biological assets | 53,259 | 44,881 | 49,265 | ||||||||||
Income and other taxes recoverable | 45,831 | 41,130 | 43,789 | ||||||||||
Prepaid expenses and other assets | 18,946 | 21,669 | 24,688 | ||||||||||
Assets held for sale | 25,502 | - | - | ||||||||||
$ | 779,228 | $ | 670,420 | $ | 643,022 | ||||||||
Property and equipment | 1,090,473 | 1,050,192 | 1,067,246 | ||||||||||
Investment property | 12,305 | 11,436 | 11,232 | ||||||||||
Employee benefits | 119,002 | 169,126 | 133,942 | ||||||||||
Other long-term assets | 11,244 | 12,745 | 11,926 | ||||||||||
Deferred tax asset | 130,892 | 95,992 | 127,456 | ||||||||||
Goodwill | 754,150 | 751,535 | 753,739 | ||||||||||
Intangible assets | 203,821 | 174,983 | 191,896 | ||||||||||
Total assets | $ | 3,101,115 | $ | 2,936,429 | $ | 2,940,459 | |||||||
LIABILITIES AND EQUITY | |||||||||||||
Current liabilities | |||||||||||||
Bank indebtedness | $ | 15,209 | $ | 14,063 | $ | 36,404 | |||||||
Accounts payable and accruals | 482,917 | 458,381 | 482,059 | ||||||||||
Provisions | 31,942 | 51,484 | 44,255 | ||||||||||
Current portion of long-term debt | 5,739 | 205,337 | 5,618 | ||||||||||
Other current liabilities | 17,543 | 71,605 | 20,409 | ||||||||||
$ | 553,350 | $ | 800,870 | $ | 588,745 | ||||||||
Long-term debt | 1,122,186 | 746,202 | 941,956 | ||||||||||
Employee benefits | 382,811 | 222,098 | 350,853 | ||||||||||
Provisions | 28,963 | 26,337 | 28,936 | ||||||||||
Other long-term liabilities | 77,459 | 96,379 | 88,153 | ||||||||||
Deferred tax liability | 8,749 | 24,890 | 11,703 | ||||||||||
Total liabilities | $ | 2,173,518 | $ | 1,916,776 | $ | 2,010,346 | |||||||
Shareholders' equity | |||||||||||||
Share capital | $ | 902,810 | $ | 902,810 | $ | 902,810 | |||||||
Retained earnings (deficit) | (96,872) | 17,182 | (78,674) | ||||||||||
Contributed surplus | 75,066 | 67,550 | 64,327 | ||||||||||
Accumulated other comprehensive loss | (12,530) | (20,672) | (17,042) | ||||||||||
Treasury stock | (6,347) | (10,078) | (6,347) | ||||||||||
Total shareholders' equity | $ | 862,127 | $ | 956,792 | $ | 865,074 | |||||||
Non-controlling interest | 65,470 | 62,861 | 65,039 | ||||||||||
Total equity | $ | 927,597 | $ | 1,019,653 | $ | 930,113 | |||||||
Total liabilities and equity | $ | 3,101,115 | $ | 2,936,429 | $ | 2,940,459 |
Consolidated Statements of Earnings
(In thousands of Canadian dollars, except share amounts) | Three months ended June 30, | Six months ended June 30, | |||||||||||||
(Unaudited) | 2012 | 2011 | 2012 | 2011 | |||||||||||
Sales | $ | 1,260,250 | $ | 1,238,201 | $ | 2,421,073 | $ | 2,386,143 | |||||||
Cost of goods sold | 1,060,504 | 1,038,693 | 2,050,386 | 2,005,381 | |||||||||||
Gross margin | $ | 199,746 | $ | 199,508 | $ | 370,687 | $ | 380,762 | |||||||
Selling, general and administrative expenses | 129,306 | 125,116 | 264,442 | 254,141 | |||||||||||
Earnings before the following: | $ | 70,440 | $ | 74,392 | $ | 106,245 | $ | 126,621 | |||||||
Restructuring and other related costs | (9,776) | (16,595) | (30,132) | (42,720) | |||||||||||
Change in fair value of non-designated interest rate swaps | (220) | (5,623) | 4,933 | (958) | |||||||||||
Other income (expense) | 3,417 | (77) | 3,301 | 78 | |||||||||||
Earnings before interest and income taxes | $ | 63,861 | $ | 52,097 | $ | 84,347 | $ | 83,021 | |||||||
Interest expense | 18,413 | 17,074 | 36,056 | 35,025 | |||||||||||
Earnings before income taxes | $ | $ 45,448 | $ | 35,023 | $ | $ 48,291 | $ | 47,996 | |||||||
Income taxes | 12,922 | 10,441 | 15,002 | 12,867 | |||||||||||
Net earnings | $ | 32,526 | $ | 24,582 | $ | 33,289 | $ | 35,129 | |||||||
Attributed to: | |||||||||||||||
Common shareholders | $ | 29,849 | $ | 23,103 | $ | 30,528 | $ | 33,765 | |||||||
Non-controlling interest | 2,677 | 1,479 | 2,761 | 1,364 | |||||||||||
$ | 32,526 | $ | 24,582 | $ | 33,289 | $ | 35,129 | ||||||||
Earnings per share attributable to common shareholders | |||||||||||||||
Basic earnings per share | $ | 0.21 | $ | 0.17 | $ | 0.22 | $ | 0.24 | |||||||
Diluted earnings per share | $ | 0.21 | $ | 0.16 | $ | 0.21 | $ | 0.24 | |||||||
Weighted average number of shares (millions) | 139.5 | 139.2 | 139.5 | 139.2 |
Consolidated Statements of Comprehensive (Loss) Income
(In thousands of Canadian dollars) | Three months ended June 30, | Six months ended June 30, | ||||||||||||||
(Unaudited) | 2012 | 2011 | 2012 | 2011 | ||||||||||||
Net earnings | $ | 32,526 | $ | 24,582 | $ | 33,289 | $ | 35,129 | ||||||||
Other comprehensive (loss) income | ||||||||||||||||
Change in accumulated foreign currency translation adjustment | 2,500 | 305 | 283 | (906) | ||||||||||||
Change in unrealized gains and losses on cash flow hedges | 537 | (2,854) | 4,243 | 2,184 | ||||||||||||
Change in actuarial gains and losses | (30,511) | - | (38,165) | - | ||||||||||||
$ | (27,474) | $ | (2,549) | $ | (33,639) | $ | 1,278 | |||||||||
Comprehensive (loss) income | $ | 5,052 | $ | 22,033 | $ | (350) | $ | 36,407 | ||||||||
Attributed to: | ||||||||||||||||
Common shareholders | $ | 2,345 | $ | 20,529 | $ | (2,713) | $ | 35,678 | ||||||||
Non-controlling interest | 2,707 | 1,504 | 2,363 | 729 |
Consolidated Statements of Changes in Total Equity
Attributable to Common Shareholders | ||||||||||||||||||||||||||
(In thousands of Canadian dollars) |
Share capital |
Retained earnings |
Contributed surplus |
Total accumulated other comprehensive loss |
Treasury stock |
Non- controlling interest |
Total equity |
|||||||||||||||||||
Balance at | ||||||||||||||||||||||||||
December 31, 2011 | $ | 902,810 | $ | (78,674) | $ | 64,327 | $ | (17,042) | $ | (6,347) | $ | 65,039 | $ | 930,113 | ||||||||||||
Net earnings | - | 30,528 | - | - | - | 2,761 | 33,289 | |||||||||||||||||||
Other comprehensive (loss) income | - | (37,753) | - | 4,512 | - | (398) | (33,639) | |||||||||||||||||||
Dividends declared ($0.08 per share) | - | (10,973) | - | - | - | (1,932) | (12,905) | |||||||||||||||||||
Stock-based compensation expense | - | - | 10,739 | - | - | - | 10,739 | |||||||||||||||||||
Balance at June 30, 2012 | $ | 902,810 | $ | (96,872) | $ | 75,066 | $ | (12,530) | $ | (6,347) | $ | 65,470 | $ | 927,597 | ||||||||||||
Attributable to Common Shareholders | ||||||||||||||||||||||||||
(In thousands of Canadian dollars) |
Share capital |
Retained earnings |
Contributed surplus |
Total accumulated other comprehensive loss |
Treasury stock |
Non- controlling interest |
Total equity |
|||||||||||||||||||
Balance at | ||||||||||||||||||||||||||
December 31, 2010 | $ | 902,810 | $ | (5,267) | $ | 59,002 | $ | (22,585) | $ | (10,078) | $ | 62,890 | $ | 986,772 | ||||||||||||
Net earnings | - | 33,765 | - | - | - | 1,364 | 35,129 | |||||||||||||||||||
Other comprehensive income (loss) | - | - | - | 1,913 | - | (635) | 1,278 | |||||||||||||||||||
Dividends declared ($0.08 per share) | - | (11,316) | - | - | - | (758) | (12,074) | |||||||||||||||||||
Stock-based compensation expense | - | - | 8,548 | - | - | - | 8,548 | |||||||||||||||||||
Balance at June 30, 2011 | $ | 902,810 | $ | 17,182 | $ | 67,550 | $ | (20,672) | $ | (10,078) | $ | 62,861 | $ | 1,019,653 |
Consolidated Statements of Cash Flows
(In thousands of Canadian dollars) | Three months ended June 30, | Six months ended June 30, | ||||||||||||||
(Unaudited) | 2012 | 2011 | 2012 | 2011 | ||||||||||||
CASH PROVIDED BY (USED IN): | ||||||||||||||||
Operating activities | ||||||||||||||||
Net earnings | $ | 32,526 | $ | 24,582 | $ | 33,289 | $ | 35,129 | ||||||||
Add (deduct) items not affecting cash: | ||||||||||||||||
Change in fair value of biological assets | 3,233 | 9,828 | 1,101 | 4,321 | ||||||||||||
Depreciation and amortization | 33,180 | 32,398 | 64,569 | 65,266 | ||||||||||||
Stock-based compensation | 5,303 | 4,271 | 10,739 | 8,548 | ||||||||||||
Deferred income taxes | 3,637 | 2,129 | 3,863 | 3,269 | ||||||||||||
Income tax current | 9,285 | 8,312 | 11,139 | 9,598 | ||||||||||||
Interest expense | 18,413 | 17,074 | 36,056 | 35,025 | ||||||||||||
(Gain) loss on sale of property and equipment | (433) | 142 | (413) | 118 | ||||||||||||
Gain on disposal of assets held for sale | (320) | - | (320) | - | ||||||||||||
Change in fair value of non-designated interest rate swaps |
220 | 5,623 | (4,933) | 958 | ||||||||||||
Change in fair value of derivative financial instruments | (326) | (6,295) | 5,623 | (1,922) | ||||||||||||
(Increase) decrease in pension asset | (4,298) | (648) | (4,475) | 1,808 | ||||||||||||
Net income taxes paid | (3,920) | (8,296) | (9,519) | (18,294) | ||||||||||||
Interest paid | (18,585) | (20,484) | (35,378) | (23,848) | ||||||||||||
Change in provision for restructuring and other related costs | 1,141 | 7,415 | 6,584 | 28,067 | ||||||||||||
Other | (874) | 387 | (1,822) | (1,820) | ||||||||||||
Change in non-cash operating working capital | 27,299 | (47,642) | (35,571) | (109,730) | ||||||||||||
Cash provided by operating activities | $ | 105,481 | $ | 28,796 | $ | 80,532 | $ | 36,493 | ||||||||
Financing activities | ||||||||||||||||
Dividends paid | $ | (5,393) | $ | (5,722) | $ | (10,973) | $ | (11,316) | ||||||||
Dividends paid to non-controlling interest | (661) | (152) | (1,169) | (402) | ||||||||||||
Net increase in long-term debt | 30,000 | 9,960 | 180,000 | 87,765 | ||||||||||||
Increase in financing costs | - | (3,986) | - | (6,124) | ||||||||||||
Other | (321) | (750) | (783) | (749) | ||||||||||||
Cash provided by (used in) financing activities | $ | 23,625 | $ | (650) | $ | 167,075 | $ | 69,174 | ||||||||
Investing activities | ||||||||||||||||
Additions to long term-assets | $ | (63,633) | $ | (57,920) | $ | (119,439) | $ | (108,255) | ||||||||
Capitalization of interest expense | (1,307) | (1,960) | (2,521) | (3,337) | ||||||||||||
Acquisition of business | - | - | (31,130) | - | ||||||||||||
Proceeds from sale of long-term assets | 2,203 | 2,238 | 4,749 | 7,675 | ||||||||||||
Proceeds from disposal of assets held for sale | 5,557 | - | 5,557 | - | ||||||||||||
Other | 3 | (503) | 3 | 45 | ||||||||||||
Cash used in investing activities | $ | (57,177) | $ | (58,145) | $ | (142,781) | $ | (103,872) | ||||||||
Increase (decrease) in cash and cash equivalents | $ | 71,929 | $ | (29,999) | $ | 104,826 | $ | 1,795 | ||||||||
Net cash and cash equivalents, beginning of period | (3,507) | 15,936 | (36,404) | (15,858) | ||||||||||||
Net cash and cash equivalents, end of period | $ | 68,422 | $ | (14,063) | $ | 68,422 | $ | (14,063) | ||||||||
Net cash and cash equivalents is comprised of: | ||||||||||||||||
Cash and cash equivalents | $ | 83,631 | $ | - | $ | 83,631 | $ | - | ||||||||
Bank indebtedness | (15,209) | (14,063) | (15,209) | (14,063) | ||||||||||||
Net cash and cash equivalents, end of period | $ | 68,422 | $ | (14,063) | $ | 68,422 | $ | (14,063) |
Segmented Financial Information
Three months ended June 30, | Six months ended June 30, | ||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||
Sales | |||||||||||||
Meat Products Group | $ | 775,971 | $ | 762,212 | $ | 1,501,508 | $ | 1,480,453 | |||||
Agribusiness Group | 79,543 | 70,918 | 144,840 | 128,211 | |||||||||
Bakery Products Group | 404,736 | 405,071 | 774,725 | 777,479 | |||||||||
$ | 1,260,250 | $ | 1,238,201 | $ | 2,421,073 | $ | 2,386,143 | ||||||
Earnings before restructuring and other related costs and other income |
|||||||||||||
Meat Products Group | $ | 22,229 | $ | 21,102 | $ | 44,303 | $ | 47,749 | |||||
Agribusiness Group | 19,065 | 27,706 | 38,156 | 41,711 | |||||||||
Bakery Products Group | 32,150 | 29,884 | 35,415 | 42,071 | |||||||||
Non-allocated costs | (3,004) | (4,300) | (11,629) | (4,910) | |||||||||
$ | 70,440 | $ | 74,392 | $ | 106,245 | $ | 126,621 | ||||||
Capital expenditures | |||||||||||||
Meat Products Group | $ | 46,159 | $ | 18,232 | $ | 85,131 | $ | 32,650 | |||||
Agribusiness Group | 2,614 | 2,529 | 5,694 | 5,162 | |||||||||
Bakery Products Group | 14,860 | 37,159 | 28,614 | 70,443 | |||||||||
$ | 63,633 | $ | 57,920 | $ | 119,439 | $ | 108,255 | ||||||
Depreciation and amortization | |||||||||||||
Meat Products Group | $ | 15,151 | $ | 15,814 | $ | 29,917 | $ | 31,632 | |||||
Agribusiness Group | 3,983 | 3,908 | 7,926 | 7,848 | |||||||||
Bakery Products Group | 14,046 | 12,676 | 26,726 | 25,786 | |||||||||
$ | 33,180 | $ | 32,398 | $ | 64,569 | $ | 65,266 |
As at June 30, | As at June 30, | As at December 31, | ||||||||
2012 | 2011 | 2011 | ||||||||
Total assets | ||||||||||
Meat Products Group | $ | 1,548,254 | $ | 1,530,055 | $ | 1,465,576 | ||||
Agribusiness Group | 222,849 | 250,125 | 223,013 | |||||||
Bakery Products Group | 991,870 | 903,669 | 937,292 | |||||||
Non-allocated assets | 338,142 | 252,580 | 314,578 | |||||||
$ | 3,101,115 | $ | 2,936,429 | $ | 2,940,459 | |||||
Goodwill | ||||||||||
Meat Products Group | $ | 442,726 | $ | 442,336 | $ | 442,336 | ||||
Agribusiness Group | 13,845 | 13,939 | 13,845 | |||||||
Bakery Products Group | 297,579 | 295,260 | 297,558 | |||||||
$ | 754,150 | $ | 751,535 | $ | 753,739 |
SOURCE
Investor Contact: Nick Boland,
VP Investor Relations: 416-926-2005
Media Contact: 416-926-2020