Maple Leaf Foods Reports Results for Third Quarter 2012
TSX: MFI
www.mapleleaffoods.com
-
Adjusted Operating Earnings(1) for the third quarter were
$76.3 million compared to$73.3 million last year -
Net earnings for the third quarter were
$32.6 million , compared to$43.0 million in the third quarter last year -
Adjusted Earnings per Share(2) were
$0.29 compared to$0.34 last year ($0.27 excluding a$9.8 million tax adjustment associated with a prior acquisition)
"Our third quarter marked a return to operating profit growth in 2012 as
we continue to enhance performance in our base business and execute our
value creation strategies," said
(1): Adjusted Operating Earnings, a non-IFRS measure, is defined as earnings from operations before restructuring and other related costs and associated gains, other income (expense) and the impact of the change in fair value of non-designated interest rate swaps, unrealized (gains) losses on commodity futures contracts and the change in fair value of biological assets.
(2): Adjusted Earnings per Share ("Adjusted EPS"), a non-IFRS measure, is defined as basic earnings per share adjusted for the impact of restructuring and other related costs and associated gains, the impact of the change in fair value of non-designated interest rate swaps, hedge ineffectiveness recognized in earnings, unrealized (gains) losses on commodity futures contracts, and the change in fair value of biological assets, net of tax and non-controlling interest.
Please refer to the section entitled Reconciliation of Non-IFRS Financial Measures at the end of this news release.
Financial Overview
Business Segment Review
Following is a summary of sales by business segment:
(Unaudited) | Third Quarter | Year-to-Date | |||||||||||||||
($ thousands) | 2012 | 2011 | 2012 | 2011 | |||||||||||||
Meat Products Group | $ | 761,172 | $ | 777,194 | $ | 2,262,680 | $ | 2,257,647 | |||||||||
Agribusiness Group | 76,463 | 67,934 | 221,303 | 196,145 | |||||||||||||
Protein Group | $ | 837,635 | $ | 845,128 | $ | 2,483,983 | $ | 2,453,792 | |||||||||
Bakery Products Group | 401,294 | 417,025 | 1,176,019 | 1,194,504 | |||||||||||||
Sales | $ | 1,238,929 | $ | 1,262,153 | $ | 3,660,002 | $ | 3,648,296 | |||||||||
The following table summarizes Adjusted Operating Earnings by business segment:
(Unaudited) | Third Quarter | Year-to-Date | |||||||||||||||||
($ thousands) | 2012 | 2011 | 2012 | 2011 | |||||||||||||||
Meat Products Group | $ | 28,837 | $ | 20,766 | $ | 73,139 | $ | 68,515 | |||||||||||
Agribusiness Group | 17,620 | 25,440 | 55,776 | 67,151 | |||||||||||||||
Protein Group | $ | 46,457 | $ | 46,206 | $ | 128,915 | $ | 135,666 | |||||||||||
Bakery Products Group | 30,808 | 28,094 | 66,224 | 70,165 | |||||||||||||||
Non-allocated costs in Adjusted Operating Earnings(i) |
(934) | (953) | (6,404) | (4,261) | |||||||||||||||
Adjusted Operating Earnings | $ | 76,331 | $ | 73,347 | $ | 188,735 | $ | 201,570 |
(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 third quarter increased 38.9% to
Branded sales growth and innovation, as well as operating cost reductions drove margin expansion in the prepared meats business. The Company's network transformation initiatives also contributed to results, although earnings growth was partly offset by lower sales volumes. The Company continues to manage cost inflation through price increases as required.
Sales of higher value products under the Maple Leaf Prime chicken brand and improvements in industry poultry processor margins drove higher earnings in the fresh poultry operations.
Earnings in primary pork processing were consistent with last year as
higher pricing and margins in international exports were offset by
weaker industry margins 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 third quarter of 2012 decreased
30.7% 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 third quarter of 2012 increased 9.7%
to
Other Matters
On
An investor presentation related to the Company's third 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 third quarter financial results will also be available at http://www.media-server.com/m/p/joy9ce24
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 nine months ended, as indicated below. Management believes that this basis is the most appropriate 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.
Three months ended September 30, 2012 | ||||||||||||||||||||
Meat | Bakery | |||||||||||||||||||
(Unaudited) | Products | Agribusiness | Products | Unallocated | ||||||||||||||||
($ thousands) | Group | Group | Group | costs | Consolidated | |||||||||||||||
Net earnings | $ | 32,581 | ||||||||||||||||||
Income taxes | 12,806 | |||||||||||||||||||
Earnings from operations before income taxes | $ | 45,387 | ||||||||||||||||||
Interest expense | 18,442 | |||||||||||||||||||
Change in the fair value of non-designated | ||||||||||||||||||||
interest rate swaps | (2,247) | |||||||||||||||||||
Other income | (829) | (66) | 13 | (667) | (1,549) | |||||||||||||||
Restructuring and other related costs | 4,414 | - | 170 | - | 4,584 | |||||||||||||||
Earnings from Operations | $ | 28,837 | $ | 17,620 | $ | 30,808 | $ | (12,648) | $ | 64,617 | ||||||||||
Decrease in fair value of biological assets | - | - | - | 13,038 | 13,038 | |||||||||||||||
Unrealized gains on commodity futures contracts | - | - | - | (1,324) | (1,324) | |||||||||||||||
Adjusted Operating Earnings | $ | 28,837 | $ | 17,620 | $ | 30,808 | $ | (934) | $ | 76,331 | ||||||||||
Three months ended September 30, 2011 | ||||||||||||||||||||
Meat | Bakery | |||||||||||||||||||
(Unaudited) | Products | Agribusiness | Products | Unallocated | ||||||||||||||||
($ thousands) | Group | Group | Group | costs | Consolidated | |||||||||||||||
Net earnings | $ | 43,007 | ||||||||||||||||||
Income taxes | 4,192 | |||||||||||||||||||
Earnings from operations before income taxes | $ | 47,199 | ||||||||||||||||||
Interest expense | 17,927 | |||||||||||||||||||
Change in the fair value of non-designated | ||||||||||||||||||||
interest rate swaps | 10,423 | |||||||||||||||||||
Other income | (4,059) | (680) | (286) | (123) | (5,148) | |||||||||||||||
Restructuring and other related costs | 2,966 | - | 1,598 | 318 | 4,882 | |||||||||||||||
Earnings from Operations | $ | 20,766 | $ | 25,440 | $ | 28,094 | $ | 983 | $ | 75,283 | ||||||||||
Increase in fair value of biological assets | - | - | - | (3,227) | (3,227) | |||||||||||||||
Unrealized losses on commodity futures contracts | - | - | - | 1,291 | 1,291 | |||||||||||||||
Adjusted Operating Earnings | $ | 20,766 | $ | 25,440 | $ | 28,094 | $ | (953) | $ | 73,347 | ||||||||||
Nine months ended September 30, 2012 | ||||||||||||||||||||
Meat | Bakery | |||||||||||||||||||
(Unaudited) | Products | Agribusiness | Products | Unallocated | ||||||||||||||||
($ thousands) | Group | Group | Group | costs | Consolidated | |||||||||||||||
Net earnings | $ | 65,870 | ||||||||||||||||||
Income taxes | 27,809 | |||||||||||||||||||
Earnings from operations before income taxes | $ | 93,679 | ||||||||||||||||||
Interest expense | 54,498 | |||||||||||||||||||
Change in the fair value of non-designated | ||||||||||||||||||||
interest rate swaps | (7,180) | |||||||||||||||||||
Other income | (2,996) | (589) | (1,358) | 93 | (4,850) | |||||||||||||||
Restructuring and other related costs | 27,456 | - | 7,259 | - | 34,715 | |||||||||||||||
Earnings from Operations | $ | 73,139 | $ | 55,776 | $ | 66,224 | $ | (24,277) | $ | 170,862 | ||||||||||
Decrease in fair value of biological assets | - | - | - | 14,139 | 14,139 | |||||||||||||||
Unrealized losses on commodity futures contracts | - | - | - | 3,734 | 3,734 | |||||||||||||||
Adjusted Operating Earnings | $ | 73,139 | $ | 55,776 | $ | 66,224 | $ | (6,404) | $ | 188,735 | ||||||||||
Nine months ended September 30, 2011 | ||||||||||||||||||||
Meat | Bakery | |||||||||||||||||||
(Unaudited) | Products | Agribusiness | Products | Unallocated | ||||||||||||||||
($ thousands) | Group | Group | Group | costs | Consolidated | |||||||||||||||
Net earnings | $ | 78,136 | ||||||||||||||||||
Income taxes | 17,059 | |||||||||||||||||||
Earnings from operations before income taxes | $ | 95,195 | ||||||||||||||||||
Interest expense | 52,952 | |||||||||||||||||||
Change in the fair value of non-designated | ||||||||||||||||||||
interest rate swaps | 11,382 | |||||||||||||||||||
Other income | (4,088) | (743) | (364) | (32) | (5,227) | |||||||||||||||
Restructuring and other related costs | 12,296 | - | 34,195 | 1,111 | 47,602 | |||||||||||||||
Earnings from Operations | $ | 68,515 | $ | 67,151 | $ | 70,165 | $ | (3,927) | $ | 201,904 | ||||||||||
Decrease in fair value of biological assets | - | - | - | 1,094 | 1,094 | |||||||||||||||
Unrealized gains on commodity futures contracts | - | - | - | (1,428) | (1,428) | |||||||||||||||
Adjusted Operating Earnings | $ | 68,515 | $ | 67,151 | $ | 70,165 | $ | (4,261) | $ | 201,570 |
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 basis is the most appropriate 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.
Three months ended | Nine months ended | |||||||||||||||||||
(Unaudited) | September 30, | September 30, | ||||||||||||||||||
($ per share) | 2012 | 2011 | 2012 | 2011 | ||||||||||||||||
Basic earnings per share | $ | 0.22 | $ | 0.29 | $ | 0.44 | $ | 0.53 | ||||||||||||
Restructuring and other related costs(i) | 0.02 | 0.03 | 0.19 | 0.24 | ||||||||||||||||
Gains associated with restructuring and other related activities(i) | - | (0.02) | - | (0.02) | ||||||||||||||||
Change in the fair value of non-designated interest rate swaps(ii) | (0.01) | 0.05 | (0.04) | 0.06 | ||||||||||||||||
Change in the fair value of unrealized (gains) losses on commodity | ||||||||||||||||||||
futures contracts(ii) | (0.01) | 0.01 | 0.02 | (0.01) | ||||||||||||||||
Change in the fair value of biological assets(ii) | 0.07 | (0.02) | 0.07 | 0.01 | ||||||||||||||||
Adjusted Earnings per Share(iii) | $ | 0.29 | $ | 0.34 | $ | 0.67 | $ | 0.81 |
(i) |
Includes per share impact of restructuring and other related costs and
associated gains, 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 nine months ended
Consolidated Balance Sheets
As at September 30, | As at September 30, | As at December 31, | ||||||||||||||
(In thousands of Canadian dollars) | 2012 | 2011 | 2011 | |||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
ASSETS | ||||||||||||||||
Current assets | ||||||||||||||||
Cash and cash equivalents | $ | 87,300 | $ | - | $ | - | ||||||||||
Accounts receivable | 85,508 | 99,375 | 133,504 | |||||||||||||
Notes receivable | 138,742 | 147,322 | 98,545 | |||||||||||||
Inventories | 313,485 | 302,864 | 293,231 | |||||||||||||
Biological assets | 40,123 | 49,154 | 49,265 | |||||||||||||
Income and other taxes recoverable | 43,039 | 47,530 | 43,789 | |||||||||||||
Prepaid expenses and other assets | 19,419 | 16,855 | 24,688 | |||||||||||||
Assets held for sale | 23,259 | - | - | |||||||||||||
$ | 750,875 | $ | 663,100 | $ | 643,022 | |||||||||||
Property and equipment | 1,122,881 | 1,059,553 | 1,067,246 | |||||||||||||
Investment property | 13,740 | 11,584 | 11,232 | |||||||||||||
Employee benefits | 101,840 | 128,613 | 133,942 | |||||||||||||
Other long-term assets | 11,930 | 12,751 | 11,926 | |||||||||||||
Deferred tax asset | 146,484 | 138,204 | 127,456 | |||||||||||||
Goodwill | 752,590 | 754,935 | 753,739 | |||||||||||||
Intangible assets | 207,264 | 186,070 | 191,896 | |||||||||||||
Total assets | $ | 3,107,604 | $ | 2,954,810 | $ | 2,940,459 | ||||||||||
LIABILITIES AND EQUITY | ||||||||||||||||
Current liabilities | ||||||||||||||||
Bank indebtedness | $ | 31,279 | $ | 17,729 | $ | 36,404 | ||||||||||
Accounts payable and accruals | 459,491 | 488,399 | 482,059 | |||||||||||||
Provisions | 27,382 | 43,065 | 44,255 | |||||||||||||
Current portion of long-term debt | 6,068 | 221,792 | 5,618 | |||||||||||||
Other current liabilities | 17,624 | 73,153 | 20,409 | |||||||||||||
$ | 541,844 | $ | 844,138 | $ | 588,745 | |||||||||||
Long-term debt | 1,119,045 | 715,986 | 941,956 | |||||||||||||
Employee benefits | 429,568 | 364,555 | 350,853 | |||||||||||||
Provisions | 28,714 | 25,388 | 28,936 | |||||||||||||
Other long-term liabilities | 81,784 | 77,504 | 88,153 | |||||||||||||
Deferred tax liability | 8,617 | 26,444 | 11,703 | |||||||||||||
Total liabilities | $ | 2,209,572 | $ | 2,054,015 | $ | 2,010,346 | ||||||||||
Shareholders' equity | ||||||||||||||||
Share capital | $ | 902,810 | $ | 902,810 | $ | 902,810 | ||||||||||
Retained deficit | (122,156) | (82,034) | (78,674) | |||||||||||||
Contributed surplus | 80,956 | 71,820 | 64,327 | |||||||||||||
Accumulated other comprehensive loss | (13,942) | (18,332) | (17,042) | |||||||||||||
Treasury stock | (15,370) | (38,915) | (6,347) | |||||||||||||
Total shareholders' equity | $ | 832,298 | $ | 835,349 | $ | 865,074 | ||||||||||
Non-controlling interest | 65,734 | 65,446 | 65,039 | |||||||||||||
Total equity | $ | 898,032 | $ | 900,795 | $ | 930,113 | ||||||||||
Total liabilities and equity | $ | 3,107,604 | $ | 2,954,810 | $ | 2,940,459 | ||||||||||
Consolidated Statements of Earnings
(In thousands of Canadian dollars, except share amounts) | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
(Unaudited) | 2012 | 2011 | 2012 | 2011 | |||||||||||||
Sales | $ | 1,238,929 | $ | 1,262,153 | $ | 3,660,002 | $ | 3,648,296 | |||||||||
Cost of goods sold | 1,052,334 | 1,062,392 | 3,102,720 | 3,067,773 | |||||||||||||
Gross margin | $ | 186,595 | $ | 199,761 | $ | 557,282 | $ | 580,523 | |||||||||
Selling, general and administrative expenses | 121,978 | 124,478 | 386,420 | 378,619 | |||||||||||||
Earnings before the following: | $ | 64,617 | $ | 75,283 | $ | 170,862 | $ | 201,904 | |||||||||
Restructuring and other related costs | (4,584) | (4,882) | (34,715) | (47,602) | |||||||||||||
Change in fair value of non-designated | |||||||||||||||||
interest rate swaps | 2,247 | (10,423) | 7,180 | (11,382) | |||||||||||||
Other income | 1,549 | 5,148 | 4,850 | 5,227 | |||||||||||||
Earnings before interest and income taxes | $ | 63,829 | $ | 65,126 | $ | 148,177 | $ | 148,147 | |||||||||
Interest expense | 18,442 | 17,927 | 54,498 | 52,952 | |||||||||||||
Earnings before income taxes | $ | 45,387 | $ | 47,199 | $ | 93,679 | $ | 95,195 | |||||||||
Income taxes | 12,806 | 4,192 | 27,809 | 17,059 | |||||||||||||
Net earnings | $ | 32,581 | $ | 43,007 | $ | 65,870 | $ | 78,136 | |||||||||
Attributed to: | |||||||||||||||||
Common shareholders | $ | 30,159 | $ | 39,943 | $ | 60,687 | $ | 73,708 | |||||||||
Non-controlling interest | 2,422 | 3,064 | 5,183 | 4,428 | |||||||||||||
$ | 32,581 | $ | 43,007 | $ | 65,870 | $ | 78,136 | ||||||||||
Earnings per share attributable to | |||||||||||||||||
common shareholders | |||||||||||||||||
Basic earnings per share | $ | 0.22 | $ | 0.29 | $ | 0.44 | $ | 0.53 | |||||||||
Diluted earnings per share | $ | 0.21 | $ | 0.28 | $ | 0.42 | $ | 0.52 | |||||||||
Weighted average number of shares (millions) | 139.5 | 138.0 | 139.5 | 138.8 | |||||||||||||
Consolidated Statements of Comprehensive Loss
(In thousands of Canadian dollars) | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||
(Unaudited) | 2012 | 2011 | 2012 | 2011 | |||||||||||||||||
Net earnings | $ | 32,581 | $ | 43,007 | $ | 65,870 | $ | 78,136 | |||||||||||||
Other comprehensive (loss) income | |||||||||||||||||||||
Change in accumulated foreign currency | |||||||||||||||||||||
translation adjustment | (3,985) | 10,991 | (3,702) | 10,085 | |||||||||||||||||
Change in unrealized gains and losses | |||||||||||||||||||||
on cash flow hedges | 2,069 | (7,056) | 6,312 | (4,872) | |||||||||||||||||
Change in actuarial gains and losses | (50,301) | (134,959) | (88,466) | (134,959) | |||||||||||||||||
$ | (52,217) | $ | (131,024) | $ | (85,856) | $ | (129,746) | ||||||||||||||
Comprehensive loss | $ | (19,636) | $ | (88,017) | $ | (19,986) | $ | (51,610) | |||||||||||||
Attributed to: | |||||||||||||||||||||
Common shareholders | $ | (21,079) | $ | (91,276) | $ | (23,792) | $ | (55,598) | |||||||||||||
Non-controlling interest | 1,443 | 3,259 | 3,806 | 3,988 | |||||||||||||||||
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, 2011 | $ | 902,810 | $ | (78,674) | $ | 64,327 | $ | (17,042) | $ | (6,347) | $ | 65,039 | $ | 930,113 | ||||||||||||||||||
Net earnings | - | 60,687 | - | - | - | 5,183 | 65,870 | |||||||||||||||||||||||||
Other comprehensive | ||||||||||||||||||||||||||||||||
(loss) income | - | (87,579) | - | 3,100 | - | (1,377) | (85,856) | |||||||||||||||||||||||||
Dividends declared | ||||||||||||||||||||||||||||||||
($0.12 per share) | - | (16,590) | - | - | - | (3,202) | (19,792) | |||||||||||||||||||||||||
Stock-based compensation | ||||||||||||||||||||||||||||||||
expense | - | - | 16,229 | - | - | - | 16,229 | |||||||||||||||||||||||||
Other | - | - | 400 | - | - | 91 | 491 | |||||||||||||||||||||||||
Re-purchase of treasury stock | - | - | - | - | (9,023) | - | (9,023) | |||||||||||||||||||||||||
Balance at September 30, 2012 | $ | 902,810 | $ | (122,156) | $ | 80,956 | $ | (13,942) | $ | (15,370) | $ | 65,734 | $ | 898,032 | ||||||||||||||||||
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, 2010 | $ | 902,810 | $ | (5,267) | $ | 59,002 | $ | (22,585) | $ | (10,078) | $ | 62,890 | $ | 986,772 | ||||||||||||||||||
Net earnings | - | 73,708 | - | - | - | 4,428 | 78,136 | |||||||||||||||||||||||||
Other comprehensive | ||||||||||||||||||||||||||||||||
income (loss) | - | (133,559) | - | 4,253 | - | (440) | (129,746) | |||||||||||||||||||||||||
Dividends declared | ||||||||||||||||||||||||||||||||
($0.12 per share) | - | (16,916) | - | - | - | (1,322) | (18,238) | |||||||||||||||||||||||||
Stock-based compensation | ||||||||||||||||||||||||||||||||
expense | - | - | 12,818 | - | - | - | 12,818 | |||||||||||||||||||||||||
Decrease in non-controlling interest | - | - | - | - | - | (110) | (110) | |||||||||||||||||||||||||
Re-purchase of treasury stock | - | - | - | - | (28,837) | - | (28,837) | |||||||||||||||||||||||||
Balance at September 30, 2011 | $ | 902,810 | $ | (82,034) | $ | 71,820 | $ | (18,332) | $ | (38,915) | $ | 65,446 | $ | 900,795 | ||||||||||||||||||
Consolidated Statements of Cash Flows
(In thousands of Canadian dollars) | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||
(Unaudited) | 2012 | 2011 | 2012 | 2011 | |||||||||||||||||
CASH PROVIDED BY (USED IN): | |||||||||||||||||||||
Operating activities | |||||||||||||||||||||
Net earnings | $ | 32,581 | $ | 43,007 | $ | 65,870 | $ | 78,136 | |||||||||||||
Add (deduct) items not affecting cash: | |||||||||||||||||||||
Change in fair value of biological assets | 13,038 | (3,227) | 14,139 | 1,094 | |||||||||||||||||
Depreciation and amortization | 33,077 | 32,356 | 97,646 | 97,622 | |||||||||||||||||
Stock-based compensation | 5,490 | 4,270 | 16,229 | 12,818 | |||||||||||||||||
Deferred income taxes | 2,158 | 8,677 | 6,022 | 11,946 | |||||||||||||||||
Income tax current | 10,648 | (4,485) | 21,787 | 5,113 | |||||||||||||||||
Interest expense | 18,442 | 17,927 | 54,498 | 52,952 | |||||||||||||||||
Gain on sale of property and equipment | (8) | (3,884) | (421) | (3,766) | |||||||||||||||||
Gain on disposal of assets held for sale | (139) | - | (459) | - | |||||||||||||||||
Change in fair value of non-designated | |||||||||||||||||||||
interest rate swaps | (2,247) | 10,423 | (7,180) | 11,382 | |||||||||||||||||
Change in fair value of | |||||||||||||||||||||
derivative financial instruments | (2,320) | 4,754 | 3,303 | 2,832 | |||||||||||||||||
(Increase) decrease in pension asset | (3,806) | 2,011 | (8,281) | 3,819 | |||||||||||||||||
Net income taxes paid | (6,993) | (505) | (16,512) | (18,799) | |||||||||||||||||
Interest paid | (18,045) | (12,740) | (53,423) | (36,588) | |||||||||||||||||
Change in provision for restructuring and | |||||||||||||||||||||
other related costs | (525) | (7,429) | 6,059 | 20,638 | |||||||||||||||||
Other | (5,567) | (1,890) | (7,389) | (3,714) | |||||||||||||||||
Change in non-cash operating working capital | (4,661) | 39,844 | (40,233) | (69,530) | |||||||||||||||||
Cash provided by operating activities | $ | 71,123 | $ | 129,109 | $ | 151,655 | $ | 165,955 | |||||||||||||
Financing activities | |||||||||||||||||||||
Dividends paid | $ | (5,617) | $ | (5,600) | $ | (16,590) | $ | (16,916) | |||||||||||||
Dividends paid to non-controlling interest | (1,271) | (564) | (2,440) | (1,322) | |||||||||||||||||
Net increase (decrease) in long-term debt | 9,136 | (55,724) | 189,136 | 32,041 | |||||||||||||||||
Increase in financing costs | - | (272) | - | (6,396) | |||||||||||||||||
Purchase of treasury stock | (9,023) | (28,837) | (9,023) | (28,837) | |||||||||||||||||
Other | (484) | (396) | (1,267) | (1,145) | |||||||||||||||||
Cash provided by (used in) financing activities | $ | (7,259) | $ | (91,393) | $ | 159,816 | $ | (22,575) | |||||||||||||
Investing activities | |||||||||||||||||||||
Additions to long term-assets | $ | (78,172) | $ | (52,328) | $ | (197,611) | $ | (160,583) | |||||||||||||
Capitalization of interest expense | (1,609) | (1,154) | (4,130) | (4,491) | |||||||||||||||||
Acquisition of business | - | - | (31,130) | - | |||||||||||||||||
Proceeds from sale of long-term assets | 1,102 | 11,068 | 5,851 | 18,743 | |||||||||||||||||
Proceeds from disposal of assets held for sale | 2,417 | - | 7,974 | - | |||||||||||||||||
Other | (3) | 1,032 | - | 1,080 | |||||||||||||||||
Cash used in investing activities | $ | (76,265) | $ | (41,382) | $ | (219,046) | $ | (145,251) | |||||||||||||
Increase (decrease) in cash and cash equivalents | $ | (12,401) | $ | (3,666) | $ | 92,425 | $ | (1,871) | |||||||||||||
Net cash and cash equivalents, beginning of period | 68,422 | (14,063) | (36,404) | (15,858) | |||||||||||||||||
Net cash and cash equivalents, end of period | $ | 56,021 | $ | (17,729) | $ | 56,021 | $ | (17,729) | |||||||||||||
Net cash and cash equivalents is comprised of: | |||||||||||||||||||||
Cash and cash equivalents | $ | 87,300 | $ | - | $ | 87,300 | $ | - | |||||||||||||
Bank indebtedness | (31,279) | (17,729) | (31,279) | (17,729) | |||||||||||||||||
Net cash and cash equivalents, end of period | $ | 56,021 | $ | (17,729) | $ | 56,021 | $ | (17,729) | |||||||||||||
Segmented Financial Info
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||||||
Sales | ||||||||||||||||||||
Meat Products Group | $ | 761,172 | $ | 777,194 | $ | 2,262,680 | $ | 2,257,647 | ||||||||||||
Agribusiness Group | 76,463 | 67,934 | 221,303 | 196,145 | ||||||||||||||||
Bakery Products Group | 401,294 | 417,025 | 1,176,019 | 1,194,504 | ||||||||||||||||
$ | 1,238,929 | $ | 1,262,153 | $ | 3,660,002 | $ | 3,648,296 | |||||||||||||
Earnings before restructuring and other | ||||||||||||||||||||
related costs and other income | ||||||||||||||||||||
Meat Products Group | $ | 28,837 | $ | 20,766 | $ | 73,139 | $ | 68,515 | ||||||||||||
Agribusiness Group | 17,620 | 25,440 | 55,776 | 67,151 | ||||||||||||||||
Bakery Products Group | 30,808 | 28,094 | 66,224 | 70,165 | ||||||||||||||||
Non-allocated costs | (12,648) | 983 | (24,277) | (3,927) | ||||||||||||||||
$ | 64,617 | $ | 75,283 | $ | 170,862 | $ | 201,904 | |||||||||||||
Capital expenditures | ||||||||||||||||||||
Meat Products Group | $ | 63,582 | $ | 19,296 | $ | 148,712 | $ | 51,946 | ||||||||||||
Agribusiness Group | 3,242 | 3,546 | 8,937 | 8,708 | ||||||||||||||||
Bakery Products Group | 11,348 | 29,486 | 39,962 | 99,929 | ||||||||||||||||
$ | 78,172 | $ | 52,328 | $ | 197,611 | $ | 160,583 | |||||||||||||
Depreciation and amortization | ||||||||||||||||||||
Meat Products Group | $ | 14,912 | $ | 15,784 | $ | 44,829 | $ | 47,416 | ||||||||||||
Agribusiness Group | 4,023 | 3,805 | 11,949 | 11,653 | ||||||||||||||||
Bakery Products Group | 14,142 | 12,767 | 40,868 | 38,553 | ||||||||||||||||
$ | 33,077 | $ | 32,356 | $ | 97,646 | $ | 97,622 |
As at September 30, | As at September 30, | As at December 31, | ||||||||||||||||
2012 | 2011 | 2011 | ||||||||||||||||
Total assets | ||||||||||||||||||
Meat Products Group | $ | 1,554,470 | $ | 1,468,653 | $ | 1,465,576 | ||||||||||||
Agribusiness Group | 213,808 | 215,731 | 223,013 | |||||||||||||||
Bakery Products Group | 999,391 | 953,572 | 937,292 | |||||||||||||||
Non-allocated assets | 339,935 | 316,854 | 314,578 | |||||||||||||||
$ | 3,107,604 | $ | 2,954,810 | $ | 2,940,459 | |||||||||||||
Goodwill | ||||||||||||||||||
Meat Products Group | $ | 442,692 | $ | 442,336 | $ | 442,336 | ||||||||||||
Agribusiness Group | 13,845 | 13,845 | 13,845 | |||||||||||||||
Bakery Products Group | 296,053 | 298,754 | 297,558 | |||||||||||||||
$ | 752,590 | $ | 754,935 | $ | 753,739 |
SOURCE
Investor Contact: Nick Boland,
VP Investor Relations: 416-926-2005
Media Contact: 416-926-2020