TSX: MFI
www.mapleleaffoods.com
TORONTO, Oct. 30, 2013 /PRNewswire/ – Maple Leaf Foods Inc. (TSX: MFI) today
reported its financial results for the third quarter ended September
30, 2013.
-
Adjusted Operating Earnings(1)(2)(3) for the third quarter was $18.6 million compared to $47.9 million last
year. Year-to-date Adjusted Operating Earnings were $12.0 million
compared $102.3 million last year -
Adjusted Earnings per Share(2)(3)(4) was a loss of $0.01 compared to Adjusted Earnings per Share of $0.13
last year. Year-to-date Adjusted Earnings per Share was a loss of $0.25
compared to Adjusted Earnings per Share of $0.21 last year. -
The Bakery Products Group achieved Adjusted EBITDA(2)(5) margins of 13.5%, reflecting contributions from efficiency improvements
and volume growth in the U.K. business
“This is a very challenging period of transition for the Maple Leaf
organization, as the short-term impact of volatile protein market
conditions, combined with the significant cost of change, has been
material,” said Michael H. McCain, President and CEO. “We have five
significant operational start-ups occurring simultaneously, during a
year when commodity markets have not been friendly. However, these
transitory conditions do not detract from the underlying strength of
the business or the strategic direction. Our commercial performance is
solid and we are satisfied with the progress we are making in
implementing our prepared meats strategy. Our bakery business is
performing at record levels as we come into the back half of 2013.
Through exploring strategic alternatives, we are committed to
optimizing the value of this business, either as part of Maple Leaf or
under new ownership.”
Financial Overview
Maple Leaf Foods Inc. (“the Company”) sales of $1,150.2 million for the
third quarter declined 2.5% from last year, or 1.1% after adjusting for
the impacts of divestitures and foreign exchange, due to lower volumes
which were partly offset by higher pricing and improved sales mix. For
the nine months ended September 30, 2013, sales decreased 3.6% from the
prior year to $3,364.2 million, or 2.1% after adjusting for
divestitures and foreign exchange, due to the same factors.
Adjusted Operating Earnings for the third quarter decreased 61.1% to
$18.6 million compared to $47.9 million last year, as earnings in the
Protein Group were impacted by higher costs related to the
implementation of its prepared meats strategy and poor commodity market
conditions, which were only partly offset by stronger Bakery Group
results. For the nine months ended September 30, 2013, Adjusted
Operating Earnings declined 88.2% to $12.0 million compared to $102.3
million last year, due to similar factors noted above.
Net earnings from continuing operations(2) for the third quarter were $nil (a loss of $0.02 per basic share
attributable to common shareholders) compared to $11.4 million ($0.06
per basic share attributable to common shareholders) last year. Net
earnings from continuing operations included $15.1 million ($0.08 per
basic share attributable to common shareholders) of pre-tax expenses
related to restructuring and other related costs (2012: $4.6 million,
or $0.02 per basic share attributable to common shareholders).
Year-to-date net loss from continuing operations was $42.2 million
(loss of $0.34 per basic share attributable to common shareholders)
compared to net earnings of $1.2 million (a loss of $0.02 per basic
share attributable to common shareholders) last year. The year-to-date
net loss included $77.9 million ($0.40 per basic share attributable to
common shareholders) of pre-tax expenses related to restructuring and
other related costs (2012: $34.7 million, or $0.19 per basic share
attributable to common shareholders).
Adjusted Earnings per Share in the third quarter was a loss of $0.01
compared to Adjusted Earnings per Share of $0.13 last year.
Year-to-date Adjusted Earnings per Share declined to a loss of $0.25
compared to Adjusted Earnings per Share of $0.21 last year.
Several items are excluded from the discussions of underlying earnings
performance as they are not representative of on-going operational
activities. Refer to the section entitled Reconciliation of Non-IFRS
Financial Measures at the end of this News Release for a description
and reconciliation of all non-IFRS financial measures.
Business Segment Review
Following is a summary of sales by business segment:
| ($ thousands) | Third Quarter | Year-to-Date | ||||||
| (Unaudited) | 2013 | 2012 | 2013 | 2012 | ||||
| Meat Products Group | $ | 750,947 | $ | 772,460 | 2,180,971 | $ | 2,295,124 | |
| Agribusiness Group(3) | 6,339 | 6,359 | 24,420 | 17,657 | ||||
| Protein Group | $ | 757,286 | $ | 778,819 | $ | 2,205,391 | $ | 2,312,781 |
| Bakery Products Group | 392,924 | 401,294 | 1,158,836 | 1,176,019 | ||||
| Sales | $ | 1,150,210 | $ | 1,180,113 | $ | 3,364,227 | $ | 3,488,800 |
The following table summarizes Adjusted Operating Earnings by business
segment:
| ($ thousands) | Third Quarter | Year-to-Date | ||||||
| (Unaudited) | 2013 | 2012(2) | 2013 | 2012(2) | ||||
| Meat Products Group | $ | (21,624) | $ | 22,875 | $ | (43,568) | $ | 55,783 |
| Agribusiness Group(3) | 1,559 | (3,978) | (28,255) | (10,627) | ||||
| Protein Group | $ | (20,065) | $ | 18,897 | $ | (71,823) | $ | 45,156 |
| Bakery Products Group | 38,547 | 29,903 | 85,355 | 63,506 | ||||
| Non-allocated Costs in Adjusted Operating Earnings(i) | 120 | (934) | (1,499) | (6,404) | ||||
| Adjusted Operating Earnings | $ | 18,602 | $ | 47,866 | $ | 12,033 | $ | 102,258 |
| (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. |
Protein Group
Results for the Protein Group, which include the operations of the
Company’s Meat Products and Agribusiness Groups, should be viewed in
totality due to intercompany transactions and correlated factors within
these operations.
Sales for the third quarter in the Protein Group declined 2.8% to $757.3
million from $778.8 million last year. For the first nine months, sales
decreased 4.6% to $2,205.4 million. The quarter and year-to-date
declines were primarily driven by lower volumes and the divestiture of
the Company’s potato processing operations, partly offset by higher
pricing and sales mix.
Adjusted Operating Earnings in the third quarter was a loss of $20.1
million compared to Adjusted Operating Earnings of $18.9 million last
year, reflecting transitory costs related to commissioning newly
expanded prepared meats facilities and continued weakness in commodity
market conditions.
For the first nine months, Adjusted Operating Earnings decreased to a
loss of $71.8 million compared to Adjusted Operating Earnings of $45.2
million last year, due to similar factors noted above as well as lower
prepared meats volumes in the first quarter of 2013.
Meat Products Group
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.
Meat Products Group sales for the third quarter declined 2.8% to $750.9
million, or 1.0% after adjusting for the impact of divesting the
Company’s potato processing operations and foreign exchange. Lower
volumes in primary pork processing and the prepared meats business were
partly offset by higher pricing in primary processing and favourable
sales mix in the prepared meats business. For the first nine months,
sales declined 5.0%, or 3.0% after adjusting for the impact of
divesting the Company’s potato processing operations and foreign
exchange. Volumes in the prepared meats business decreased by
approximately 8% in the first quarter as consumers responded in the
short-term to higher prices, but subsequently improved in the second
and third quarters.
Adjusted Operating Earnings for the third quarter declined to a loss of
$21.6 million compared to Adjusted Operating Earnings of $22.9 million
last year, due to the factors discussed below.
The Company is in an intense phase of implementing a strategy to
increase scale, productivity and profitability in its prepared meats
network. This includes commissioning activities at three recently
expanded facilities, a new distribution centre servicing Central and
Eastern Canada, and a newly constructed state-of-the-art scale plant in
Hamilton, Ontario. Supporting these activities resulted in transitional
costs of approximately $15 million during the quarter (2012:
approximately $3 million) and approximately $34 million for the nine
months ended September 30, 2013 (2012: approximately $8 million),
particularly related to installing new technologies, transferring
volume, and providing incremental resources required to support these
start-ups. Beyond the transformation initiatives, earnings were
negatively impacted by higher raw material and other inflationary
costs, primarily due to an increase in fresh pork prices. Partly
offsetting these declines were improvements in sales mix, resulting
from several new product launches in the second half of 2012 and the
first half of 2013.
Earnings in primary pork processing continued to be negatively affected
by the devaluation of the Japanese Yen, which lowered profitability on
export sales. North American primary pork processing spreads also
contracted as live hog costs outpaced an increase in pork prices.
Earnings in fresh poultry were consistent as lower primary processing
spreads were offset by lower selling, general, and administrative
costs.
The sale of the Company’s potato processing operations reduced Adjusted
Operating Earnings by approximately $3 million in the third quarter
compared to last year.
For the first nine months, Adjusted Operating Earnings were a loss of
$43.6 million compared to Adjusted Operating Earnings of $55.8 million
last year due to similar factors noted above, as well as lower volumes
in the prepared meats business in the first quarter of 2013. The sale
of the Company’s potato processing operations reduced Adjusted
Operating Earnings for the nine months ended September 30, 2013 by
approximately $10 million compared to last year.
Agribusiness Group
Includes Canadian hog production operations.
Agribusiness Group sales for the third quarter of $6.3 million were
consistent with the prior year. Sales for the first nine months
increased 38.3% to $24.4 million from $17.7 million last year due to
higher hog volumes and higher pricing on toll feed sales.
Adjusted Operating Earnings in the third quarter increased to $1.6
million compared to a loss of $4.0 million last year. Hog production
earnings increased due to the reversal of a provision, reflecting the
termination of a preliminary arrangement with a supplier to receive
hogs on a cost of production basis rather than at market price.
Earnings also benefited from an increase in live hog prices that more
than offset higher feed costs. Partly offsetting these increases was a
lower contribution from hedging programs compared to last year.
Year-to-date Adjusted Operating Earnings decreased to a loss of $28.3
million compared to a loss of $10.6 million last year due to higher
feed costs that outpaced an increase in hog prices, and a lower
contribution from hedging programs. The third quarter provision
reversal noted above did not impact year-to-date results as the costs
associated with the provision were recorded in the first and second
quarters of 2013.
Bakery Products Group
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.
Bakery Products Group sales for the third quarter decreased 2.1% to $
392.9 million, or 1.3% after adjusting for discontinued categories in
the U.K. and the impact of currency translation on sales in the U.S.
and U.K. The impact of lower sales volumes in the fresh bakery business
were partially offset by volume growth in the U.K. and higher pricing
in the fresh, frozen, and U.K. bakery businesses.
Sales for the first nine months decreased 1.5% to $1,158.8 million
compared to $1,176.0 million last year or 0.8% after adjusting for
discontinued categories in the U.K. and currency translation due to
similar factors noted above.
Third quarter Adjusted Operating Earnings increased 28.9% to $38.5
million from $29.9 million last year, driven by higher earnings in the
North American frozen and U.K. bakery businesses.
The North American frozen bakery business benefited from operational
cost reductions and higher pricing, while the U.K. business earnings
benefited from increased volumes in the bagel and croissant categories.
Lower volumes and higher raw material and inflationary costs in the
fresh bakery business were partly offset by operating efficiencies,
driven by the closure of a third Toronto, Ontario bakery, higher
pricing, and lower selling, general, and administrative expenses.
Earnings in the fresh pasta business were consistent with the prior
year.
For the first nine months, Adjusted Operating Earnings increased 34.4%
to $85.4 million from $63.5 million last year. Earnings in the frozen
bakery and U.K. bakery business improved due to similar factors noted
above. In the fresh bakery business, earnings improved as a result of
higher pricing, operational improvements, and lower selling, general,
and administrative spend, partly offset by lower volumes and higher raw
material and other inflationary costs. Earnings in the fresh pasta
business increased mainly due to an inventory write-off in the first
quarter of last year that did not re-occur.
Sale of Rothsay Business
The Company disposed of its Rothsay by-product recycling business during
the fourth quarter, pursuant to an agreement to sell the business to
Darling International Inc. The operating results of the Rothsay
business have been classified as discontinued operations and 2012
amounts have been presented as discontinued operations on a comparable
basis. The Rothsay business was previously reported in the Agribusiness
Group. Earnings per share from discontinued operations were $0.11 for
the third quarter (2012: $0.11) and $0.31 for the nine months ended
September 30, 2013 (2012: $0.32).
Long-term EBITDA Margin Targets
As a result of the disposition of the Rothsay business, the Company has
adjusted its 2015 EBITDA margin target to 10.8%, which reflects a
revised EBITDA margin target of 10.0% for the Protein Group and an
unchanged target of 12.3% for the Bakery Products Group.
Subsequent Events
On October 10, 2013, the Company repaid debentures originally due
October 2016. The book value of the debentures as at December 31, 2012
was $26.3 million, with remaining principle payments as at September
30, 2013 of $24.9 million. The total amount paid was $28.2 million,
including accrued interest of $0.9 million.
On October 21, 2013 the Company announced that it is exploring strategic
alternatives for its Bakery business, including a potential sale of the
Company’s 90% ownership interest in Canada Bread Company, Limited. This
process is expected to conclude in early 2014. Maple Leaf has
established a committee of independent directors to oversee the process
and recommend the use of proceeds in the event of a sale, which may
include a combination of debt repayment, reinvestment in the business
and returning capital to shareholders. There can be no assurance that
the process being undertaken by Maple Leaf will result in the
consummation of any transaction.
On October 24, 2013, the Company announced that it has signed a
definitive agreement to sell substantially all of the net assets of its
fresh pasta and sauce business, a component of the Bakery Products
Group, for gross proceeds of approximately $120 million. Subject to
Competition Bureau review, the transaction is expected to close by the
end of 2013.
On October 28, 2013, the Company sold its Rothsay operations for gross
proceeds of $644.5 million. The assets and liabilities associated with
Rothsay are classified as held for sale as at September 30, 2013.
Other Matters
On October 29 2013, the Company declared a dividend of $0.04 per share
payable December 31, 2013 to shareholders of record at the close of
business on December 6, 2013. Unless indicated otherwise by the Company
in writing on or before the time the dividend is paid, the dividend
will be considered an Eligible Dividend for the purposes of the
“Enhanced Dividend Tax Credit System”.
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 2:30 p.m. EDT on October 30,
2013 to review Maple Leaf Foods’ third quarter financial results. To
participate in the call, please dial 416-340-2216 or 866-226-1792. For
those unable to participate, playback will be made available an hour
after the event at 905-694-9451 / 800-408-3053 (Passcode 3231342).
A webcast presentation of the third quarter financial results will also
be available at http://edge.media-server.com/m/p/p4cgamtu/lan/en
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, Adjusted Earnings per Share, Adjusted EBITDA, Net Debt and
Return on Net Assets (“RONA”). Management believes that these non-IFRS
measures provide useful information to 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 consolidated interim statements
of earnings to Adjusted Operating 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 they
are representative of the on-going operations of the Company.
| Three months ended September 30, 2013 | |||||||||||
| Meat | Bakery | ||||||||||
| ($ thousands) | Products | Agribusiness | Products | Unallocated | |||||||
| (Unaudited) | Group | Group (3) | Group | costs | Consolidated | ||||||
| Net earnings (loss) from continuing operations | $ | 14 | |||||||||
| Income taxes | 1,091 | ||||||||||
| Earnings (loss) before income taxes from continuing operations | $ | 1,105 | |||||||||
| Interest expense | 18,673 | ||||||||||
| Change in the fair value of non-designated | |||||||||||
| interest rate swaps | (655) | ||||||||||
| Other (income) expense | (2,029) | (141) | 755 | (17,040) | (18,455) | ||||||
| Restructuring and other related costs | 11,379 | – | 3,714 | – | 15,093 | ||||||
| Earnings (loss) from Continuing Operations | $ | (21,624) | $ | 1,559 | $ | 38,547 | $ | (2,721) | $ | 15,761 | |
| Decrease (increase) in fair value of biological assets | – | – | – | (894) | (894) | ||||||
| Unrealized (gains) losses on commodity futures contracts | – | – | – | 3,735 | 3,735 | ||||||
| Adjusted Operating Earnings | $ | (21,624) | $ | 1,559 | $ | 38,547 | $ | 120 | $ | 18,602 | |
| Three months ended September 30, 2012(2) | |||||||||||
| Meat | Bakery | ||||||||||
| ($ thousands) | Products | Agribusiness | Products | Unallocated | |||||||
| (Unaudited) | Group | Group (3) | Group | costs | Consolidated | ||||||
| Net earnings (loss) from continuing operations | $ | 11,372 | |||||||||
| Income taxes | 5,487 | ||||||||||
| Earnings (loss) before income taxes from continuing operations | $ | 16,859 | |||||||||
| Interest expense | 18,442 | ||||||||||
| Change in the fair value of non-designated | |||||||||||
| interest rate swaps | (2,247) | ||||||||||
| Other (income) expense | (829) | (3) | 13 | (667) | (1,486) | ||||||
| Restructuring and other related costs | 4,414 | – | 170 | – | 4,584 | ||||||
| Earnings (loss) from Continuing Operations | $ | 22,875 | $ | (3,978) | $ | 29,903 | $ | (12,648) | $ | 36,152 | |
| Decrease (increase) in fair value of biological assets | – | – | – | 13,038 | 13,038 | ||||||
| Unrealized (gains) losses on commodity futures contracts | – | – | – | (1,324) | (1,324) | ||||||
| Adjusted Operating Earnings | $ | 22,875 | $ | (3,978) | $ | 29,903 | $ | (934) | $ | 47,866 | |
| Nine months ended September 30, 2013 | |||||||||||
| Meat | Bakery | ||||||||||
| ($ thousands) | Products | Agribusiness | Products | Unallocated | |||||||
| (Unaudited) | Group | Group (3) | Group | costs | Consolidated | ||||||
| Net earnings (loss) from continuing operations | $ | (42,185) | |||||||||
| Income taxes | (18,625) | ||||||||||
| Earnings (loss) before income taxes from continuing operations | $ | (60,810) | |||||||||
| Interest expense | 52,009 | ||||||||||
| Change in the fair value of non-designated | |||||||||||
| interest rate swaps | (1,930) | ||||||||||
| Other (income) expense | (46,913) | (709) | 5,147 | (20,962) | (63,437) | ||||||
| Restructuring and other related costs | 60,976 | – | 15,168 | 1,745 | 77,889 | ||||||
| Earnings (loss) from Continuing Operations | $ | (43,568) | $ | (28,255) | $ | 85,355 | $ | (9,811) | $ | 3,721 | |
| Decrease (increase) in fair value of biological assets | – | – | – | 4,569 | 4,569 | ||||||
| Unrealized (gains) / losses on commodity futures contracts | – | – | – | 3,743 | 3,743 | ||||||
| Adjusted Operating Earnings | $ | (43,568) | $ | (28,255) | $ | 85,355 | $ | (1,499) | $ | 12,033 | |
| Nine months ended September 30, 2012(2) | |||||||||||
| Meat | Bakery | ||||||||||
| ($ thousands) | Products | Agribusiness | Products | Unallocated | |||||||
| (Unaudited) | Group | Group (3) | Group | costs | Consolidated | ||||||
| Net earnings (loss) from continuing operations | $ | 1,199 | |||||||||
| Income taxes | 5,474 | ||||||||||
| Earnings (loss) before income taxes from continuing operations | $ | 6,673 | |||||||||
| Interest expense | 54,503 | ||||||||||
| Change in the fair value of non-designated | |||||||||||
| interest rate swaps | (7,180) | ||||||||||
| Other (income) expense | (2,996) | (65) | (1,358) | 93 | (4,326) | ||||||
| Restructuring and other related costs | 27,456 | – | 7,259 | – | 34,715 | ||||||
| Earnings (loss) from Continuing Operations | $ | 55,783 | $ | (10,627) | $ | 63,506 | $ | (24,277) | $ | 84,385 | |
| Decrease (increase) in fair value of biological assets | – | – | – | 14,139 | 14,139 | ||||||
| Unrealized (gains) losses on commodity futures contracts | – | – | – | 3,734 | 3,734 | ||||||
| Adjusted Operating Earnings | $ | 55,783 | $ | (10,627) | $ | 63,506 | $ | (6,404) | $ | 102,258 | |
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 from continuing operations 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 from continuing operations as reported under IFRS in
the unaudited consolidated interim statements of earnings to Adjusted
Earnings per Share for the three and nine months ended, as indicated
below. 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 | Nine months ended | |||||||||
| ($ per share) | September 30, | September 30, | ||||||||
| ($ thousands) | 2013 | 2012(2) | 2013 | 2012(2) | ||||||
| Basic earnings (loss) per share from continuing operations | $ | (0.02) | $ | 0.06 | $ | (0.34) | $ | (0.02) | ||
| Restructuring and other related costs(i) | 0.08 | 0.02 | 0.40 | 0.19 | ||||||
| Items included in other income not considered representative of | ||||||||||
| on-going operations(ii) | (0.08) | – | (0.34) | – | ||||||
| Change in the fair value of non-designated interest rate swaps(iii) | – | (0.01) | (0.01) | (0.04) | ||||||
| Change in the fair value of unrealized (gains) losses on commodity | ||||||||||
| futures contracts(iii) | 0.02 | (0.01) | 0.02 | 0.02 | ||||||
| Change in the fair value of biological assets(iii) | – | 0.07 | 0.02 | 0.07 | ||||||
| Adjusted Earnings per Share(iv) | $ | (0.01) | $ | 0.13 | $ | (0.25) | $ | 0.21 | ||
| (i) |
Includes per share impact of restructuring and other related costs, net of tax and non-controlling interest. |
| (ii) |
Includes gains/losses associated with non-operational activities, including gains/losses related to restructuring activities, business combinations, discontinued operations, assets held for sale, and hedge ineffectiveness recognized in earnings, all net of tax. |
| (iii) |
Includes per share 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, net of tax. |
| (iv) | 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 Hamilton fresh bakery and existing bakeries, the expected use
of cash balances, source of funds for ongoing business requirements,
capital investments and debt repayment, and expectations regarding
sufficiency of the allowance for uncollectible accounts. 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., U.K. and Japanese economies; the rate of
exchange of the Canadian dollar to the U.S. dollar, U.K. British pound
and the Japanese yen; 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 whether as a result of the Value Creation
Plan or otherwise; 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 below or elsewhere in this document 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
information, 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, 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 December 31,
2012 including the section entitled “Risk Factors”, that are updated
each quarter in the Management’s Discussion and Analysis, and are
available on SEDAR at www.sedar.com. The Company does not intend to, and the Company disclaims any
obligation to, update any forward-looking information, whether written
or oral, or whether as a result of new information, future events or
otherwise except as required by law.
Maple Leaf Foods Inc. (“Maple Leaf” or the “Company”) is a leading
Canadian value-added meat, meals and bakery company committed to
delivering quality food products to consumers around the world.
Headquartered in Toronto, Canada, the Company employs approximately
20,000 people at its operations across Canada and in the United States,
Europe and Asia.
Footnote Legend
-
Adjusted Operating Earnings, a non-IFRS measure, is used by Management
to evaluate financial operating results. It is defined as earnings
from operations 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 in this news release. -
2012 figures have been restated for the impact of adopting the revised
International Accounting Standard 19 Employee Benefits (“IAS 19”), as
disclosed in Note 28 of the Company’s unaudited condensed consolidated
interim financial statements. -
Figures exclude the results of the Rothsay business, which is reported
as discontinued operations. Refer to Note 19 of the Company’s third
quarter unaudited condensed consolidated interim financial statements. -
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 from continuing operations 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 in this news release. -
Adjusted EBITDA, a non-IFRS measure, is used by Management to evaluate
financial operating results. It is defined as earnings 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.
Condensed Consolidated Interim Financial Statements
(Expressed in Canadian dollars)
(Unaudited)
MAPLE LEAF FOODS INC.
Three and nine months ended September 30, 2013 and 2012
Consolidated Balance Sheets
| (In thousands of Canadian dollars) | As at September 30, | As at September 30, | As at December 31, | As at January 1, | |||||||||
| (Unaudited) | 2013 | 2012 | 2012 | 2012 | |||||||||
| (Restated) | (Restated) | (Restated) | |||||||||||
| ASSETS | |||||||||||||
| Current assets | |||||||||||||
| Cash and cash equivalents | $ | 400,306 | $ | 87,300 | $ | 90,414 | $ | – | |||||
| Accounts receivable | 107,436 | 85,589 | 117,533 | 133,504 | |||||||||
| Notes receivable | 124,005 | 138,661 | 124,457 | 123,545 | |||||||||
| Inventories | 323,766 | 313,485 | 301,804 | 293,231 | |||||||||
| Biological assets | 80,590 | 40,123 | 78,127 | 49,265 | |||||||||
| Income and other taxes recoverable | 38,317 | 43,039 | 41,527 | 43,789 | |||||||||
| Prepaid expenses and other assets | 21,808 | 19,419 | 12,590 | 24,688 | |||||||||
| Assets held for sale | 110,838 | 23,259 | 37,087 | – | |||||||||
| $ | 1,207,066 | $ | 750,875 | $ | 803,539 | $ | 668,022 | ||||||
| Property and equipment | 1,273,264 | 1,122,881 | 1,212,177 | 1,067,246 | |||||||||
| Investment property | 13,011 | 13,740 | 11,979 | 11,232 | |||||||||
| Employee benefits | 126,813 | 101,840 | 107,831 | 133,942 | |||||||||
| Other long-term assets | 16,634 | 11,930 | 13,663 | 11,926 | |||||||||
| Deferred tax asset | 113,958 | 146,484 | 132,558 | 127,456 | |||||||||
| Goodwill | 725,545 | 752,590 | 753,156 | 753,739 | |||||||||
| Intangible assets | 199,576 | 207,264 | 208,793 | 191,896 | |||||||||
| Total assets | $ | 3,675,867 | $ | 3,107,604 | $ | 3,243,696 | $ | 2,965,459 | |||||
| LIABILITIES AND EQUITY | |||||||||||||
| Current liabilities | |||||||||||||
| Bank indebtedness | $ | – | $ | 31,279 | $ | 48,243 | $ | 36,404 | |||||
| Accounts payable and accruals | 597,101 | 459,491 | 446,911 | 507,059 | |||||||||
| Provisions | 36,993 | 27,382 | 26,335 | 44,255 | |||||||||
| Current portion of long-term debt | 641,306 | 6,068 | 6,573 | 5,618 | |||||||||
| Other current liabilities | 15,999 | 17,624 | 14,961 | 20,409 | |||||||||
| Liabilities associated with | |||||||||||||
| assets held for sale | 18,511 | – | – | – | |||||||||
| $ | 1,309,910 | $ | 541,844 | $ | 543,023 | $ | 613,745 | ||||||
| Long-term debt | 892,433 | 1,119,045 | 1,206,945 | 941,956 | |||||||||
| Employee benefits | 264,924 | 429,568 | 420,933 | 350,853 | |||||||||
| Provisions | 37,226 | 28,714 | 25,800 | 28,936 | |||||||||
| Other long-term liabilities | 57,632 | 81,784 | 80,084 | 88,153 | |||||||||
| Deferred tax liability | 13,750 | 8,617 | 8,912 | 11,703 | |||||||||
| Total liabilities | $ | 2,575,875 | $ | 2,209,572 | $ | 2,285,697 | $ | 2,035,346 | |||||
| Shareholders’ equity | |||||||||||||
| Share capital | $ | 902,986 | $ | 902,810 | $ | 902,810 | $ | 902,810 | |||||
| Retained earnings (deficit) | 47,148 | (122,156) | (72,701) | (78,674) | |||||||||
| Contributed surplus | 91,172 | 80,956 | 75,913 | 64,327 | |||||||||
| Accumulated other | |||||||||||||
| comprehensive loss | (10,472) | (13,942) | (13,263) | (17,042) | |||||||||
| Treasury stock | (1,350) | (15,370) | (1,845) | (6,347) | |||||||||
| Total shareholders’ equity | $ | 1,029,484 | $ | 832,298 | $ | 890,914 | $ | 865,074 | |||||
| Non-controlling interest | 70,508 | 65,734 | 67,085 | 65,039 | |||||||||
| Total equity | $ | 1,099,992 | $ | 898,032 | $ | 957,999 | $ | 930,113 | |||||
| Total liabilities and equity | $ | 3,675,867 | $ | 3,107,604 | $ | 3,243,696 | $ | 2,965,459 | |||||
Consolidated Statements of Earnings (Loss)
| (In thousands of Canadian dollars, except share amounts) | ||||||||||||||
| Three months ended September 30, | Nine months ended September 30, | |||||||||||||
| (Unaudited) | 2013 | 2012 | 2013 | 2012 | ||||||||||
| (Restated) | (Restated) | |||||||||||||
| Sales | $ | 1,150,210 | $ | 1,180,113 | $ | 3,364,227 | $ | 3,488,800 | ||||||
| Cost of goods sold | 1,013,074 | 1,015,360 | 2,990,174 | 2,997,684 | ||||||||||
| Gross margin | $ | 137,136 | $ | 164,753 | $ | 374,053 | $ | 491,116 | ||||||
| Selling, general and administrative expenses | 121,375 | 128,601 | 370,332 | 406,731 | ||||||||||
| Earnings from continuing operations | ||||||||||||||
| before the following: | $ | 15,761 | $ | 36,152 | $ | 3,721 | $ | 84,385 | ||||||
| Restructuring and other related costs | (15,093) | (4,584) | (77,889) | (34,715) | ||||||||||
| Change in fair value of non-designated | ||||||||||||||
| interest rate swaps | 655 | 2,247 | 1,930 | 7,180 | ||||||||||
| Other income (expense) | 18,455 | 1,486 | 63,437 | 4,326 | ||||||||||
| Earnings (loss) before interest and | ||||||||||||||
| income taxes from continuing operations | $ | 19,778 | $ | 35,301 | $ | (8,801) | $ | 61,176 | ||||||
| Interest expense | 18,673 | 18,442 | 52,009 | 54,503 | ||||||||||
| Earnings (loss) before income taxes | ||||||||||||||
| from continuing operations | $ | 1,105 | $ | 16,859 | $ | (60,810) | $ | 6,673 | ||||||
| Income taxes | 1,091 | 5,487 | (18,625) | 5,474 | ||||||||||
| Net earnings (loss) from continuing operations | $ | 14 | $ | 11,372 | $ | (42,185) | $ | 1,199 | ||||||
| Net earnings from discontinued operations | 15,507 | 14,671 | 42,974 | 45,057 | ||||||||||
| Net earnings (loss) | $ | 15,521 | $ | 26,043 | $ | 789 | $ | 46,256 | ||||||
| Attributed to: | ||||||||||||||
| Common shareholders | $ | 12,955 | $ | 23,689 | $ | (4,436) | $ | 41,277 | ||||||
| Non-controlling interest | 2,566 | 2,354 | 5,225 | 4,979 | ||||||||||
| $ | 15,521 | $ | 26,043 | $ | 789 | $ | 46,256 | |||||||
| Earnings per share attributable to common shareholders | ||||||||||||||
| Basic earnings (loss) per share | $ | 0.09 | $ | 0.17 | $ | (0.03) | $ | 0.30 | ||||||
| Diluted earnings (loss) per share | $ | 0.09 | $ | 0.16 | $ | (0.03) | $ | 0.30 | ||||||
| Basic earnings (loss) per share | ||||||||||||||
| from continuing operations | $ | (0.02) | $ | 0.06 | $ | (0.34) | $ | (0.02) | ||||||
| Diluted earnings (loss) per share | ||||||||||||||
| from continuing operations | $ | (0.02) | $ | 0.06 | $ | (0.34) | $ | (0.02) | ||||||
| Weighted average number of shares (millions) | 139.9 | 139.5 | 139.9 | 139.5 | ||||||||||
Consolidated Statements of Comprehensive Income (Loss)
| (In thousands of Canadian dollars) | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||
| (Unaudited) | 2013 | 2012 | 2013 | 2012 | |||||||||||||||
| (Restated) | (Restated) | ||||||||||||||||||
| Net earnings (loss) | $ | 15,521 | $ | 26,043 | $ | 789 | $ | 46,256 | |||||||||||
| Other comprehensive income (loss) | |||||||||||||||||||
| Items that will not be reclassified | |||||||||||||||||||
| to profit or loss: | |||||||||||||||||||
| Change in actuarial gains and losses | 25,201 | (43,763) | 142,473 | (68,852) | |||||||||||||||
| Total items that will not be reclassified | |||||||||||||||||||
| to profit or loss | 25,201 | (43,763) | 142,473 | (68,852) | |||||||||||||||
| Items that are or may be reclassified | |||||||||||||||||||
| subsequently to profit or loss: | |||||||||||||||||||
| Change in accumulated foreign currency | |||||||||||||||||||
| translation adjustment | (445) | (3,985) | 4,539 | (3,702) | |||||||||||||||
| Change in unrealized gains and losses | |||||||||||||||||||
| on cash flow hedges | (1,410) | 2,069 | (1,111) | 6,312 | |||||||||||||||
| Total items that are or may be reclassified | |||||||||||||||||||
| subsequently to profit or loss | (1,855) | (1,916) | 3,428 | 2,610 | |||||||||||||||
| $ | 23,346 | $ | (45,679) | $ | 145,901 | $ | (66,242) | ||||||||||||
| Comprehensive income (loss) | $ | 38,867 | $ | (19,636) | $ | 146,690 | $ | (19,986) | |||||||||||
| Attributed to: | |||||||||||||||||||
| Common shareholders | $ | 36,288 | $ | (21,079) | $ | 139,454 | $ | (23,792) | |||||||||||
| Non-controlling interest | 2,579 | 1,443 | 7,236 | 3,806 | |||||||||||||||
Consolidated Statements of Changes in Total Equity
| Attributable to Common Shareholders | |||||||||||||||||||||||||
| Total | |||||||||||||||||||||||||
| accumulated | |||||||||||||||||||||||||
| Retained | other | Non- | |||||||||||||||||||||||
| (In thousands of Canadian dollars) | Share | earnings | 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 (loss) | – | (4,436) | – | – | – | 5,225 | 789 | ||||||||||||||||||
| Other comprehensive | |||||||||||||||||||||||||
| income (loss) | – | 141,099 | – | 2,791 | – | 2,011 | 145,901 | ||||||||||||||||||
| Dividends declared | |||||||||||||||||||||||||
| ($0.12 per share) | – | (16,814) | – | – | – | (3,813) | (20,627) | ||||||||||||||||||
| Stock-based compensation | |||||||||||||||||||||||||
| expense | – | – | 10,246 | – | – | – | 10,246 | ||||||||||||||||||
| Exercise of stock options | 176 | – | – | – | – | – | 176 | ||||||||||||||||||
| Issuance of treasury stock | – | – | (495) | – | 495 | – | – | ||||||||||||||||||
| Modification of DSU plan | – | – | 3,508 | – | – | – | 3,508 | ||||||||||||||||||
| Other | – | – | 2,000 | – | – | – | 2,000 | ||||||||||||||||||
| Balance at September 30, 2013 | $ | 902,986 | $ | 47,148 | $ | 91,172 | $ | (10,472) | $ | (1,350) | $ | 70,508 | $ | 1,099,992 | |||||||||||
| 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 | – | 41,277 | – | – | – | 4,979 | 46,256 | ||||||||||||||||||
| Other comprehensive | |||||||||||||||||||||||||
| income (loss) | – | (68,169) | – | 3,100 | – | (1,173) | (66,242) | ||||||||||||||||||
| 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 | |||||||||||
Consolidated Statements of Cash Flows
| (In thousands of Canadian dollars) | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
| (Unaudited) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
| (Restated) | (Restated) | ||||||||||||||||
| CASH (USED IN) PROVIDED BY: | |||||||||||||||||
| Operating activities | |||||||||||||||||
| Net earnings (loss) | $ | 15,521 | $ | 26,043 | $ | 789 | $ | 46,256 | |||||||||
| Add (deduct) items not affecting cash: | |||||||||||||||||
| Change in fair value of biological assets | (894) | 13,038 | 4,569 | 14,139 | |||||||||||||
| Depreciation and amortization | 35,867 | 33,077 | 105,136 | 97,646 | |||||||||||||
| Stock-based compensation | (515) | 5,490 | 10,246 | 16,229 | |||||||||||||
| Deferred income taxes | (1,275) | (92) | (23,457) | (728) | |||||||||||||
| Income tax current | 7,725 | 10,648 | 19,696 | 21,787 | |||||||||||||
| Interest expense | 18,715 | 18,442 | 52,051 | 54,498 | |||||||||||||
| Gain on sale of property and equipment | (1,452) | (8) | (2,933) | (421) | |||||||||||||
| Gain on sale of assets held for sale | (11,520) | (139) | (57,076) | (459) | |||||||||||||
| Gain on sale of investment property | – | – | (323) | – | |||||||||||||
| Gain on acquisition | – | – | 985 | – | |||||||||||||
| Change in fair value of non-designated | |||||||||||||||||
| interest rate swaps | (655) | (2,247) | (1,930) | (7,180) | |||||||||||||
| Change in fair value of | |||||||||||||||||
| derivative financial instruments | 2,353 | (2,320) | 3,863 | 3,303 | |||||||||||||
| Impairment of assets (net of reversals) | 115 | – | 5,924 | – | |||||||||||||
| Increase in pension liability | 2,081 | 4,982 | 14,710 | 18,083 | |||||||||||||
| Net income taxes paid | (8,941) | (6,993) | (20,978) | (16,512) | |||||||||||||
| Interest paid | (17,656) | (18,045) | (49,470) | (53,423) | |||||||||||||
| Change in provision for restructuring | |||||||||||||||||
| and other related costs | 5,955 | (525) | 47,906 | 6,059 | |||||||||||||
| Other | (9,191) | (5,567) | (20,376) | (7,389) | |||||||||||||
| Change in non-cash operating working capital | 82,145 | (4,661) | 123,719 | (40,233) | |||||||||||||
| Cash provided by operating activities | $ | 118,378 | $ | 71,123 | $ | 213,051 | $ | 151,655 | |||||||||
| Financing activities | |||||||||||||||||
| Dividends paid | $ | (5,620) | $ | (5,617) | $ | (16,814) | $ | (16,590) | |||||||||
| Dividends paid to non-controlling interest | (1,271) | (1,271) | (3,813) | (2,440) | |||||||||||||
| Net increase in long-term debt | 199,418 | 9,136 | 312,910 | 189,136 | |||||||||||||
| Purchase of treasury stock | – | (9,023) | – | (9,023) | |||||||||||||
| Exercise of stock options | – | – | 176 | – | |||||||||||||
| Other | (293) | (484) | – | (1,267) | |||||||||||||
| Cash provided by (used in) financing activities | $ | 192,234 | $ | (7,259) | $ | 292,459 | $ | 159,816 | |||||||||
| Investing activities | |||||||||||||||||
| Additions to long-term assets | $ | (108,076) | $ | (78,172) | $ | (273,508) | $ | (197,611) | |||||||||
| Acquisition of business | – | – | (922) | (31,130) | |||||||||||||
| Capitalization of interest expense | (3,931) | (1,609) | (11,126) | (4,130) | |||||||||||||
| Proceeds from sale of long-term assets | 2,030 | 1,102 | 8,496 | 5,851 | |||||||||||||
| Proceeds from sale of assets held for sale | 61,748 | 2,417 | 129,685 | 7,974 | |||||||||||||
| Other | – | (3) | – | – | |||||||||||||
| Cash used in investing activities | $ | (48,229) | $ | (76,265) | $ | (147,375) | $ | (219,046) | |||||||||
| Increase (decrease) in cash and cash equivalents | $ | 262,383 | $ | (12,401) | $ | 358,135 | $ | 92,425 | |||||||||
| Net cash and cash equivalents, beginning of period | 137,923 | 68,422 | 42,171 | (36,404) | |||||||||||||
| Net cash and cash equivalents, end of period | $ | 400,306 | $ | 56,021 | $ | 400,306 | $ | 56,021 | |||||||||
| Net cash and cash equivalents is comprised of: | |||||||||||||||||
| Cash and cash equivalents | $ | 400,306 | $ | 87,300 | $ | 400,306 | $ | 87,300 | |||||||||
| Bank indebtedness | – | (31,279) | – | (31,279) | |||||||||||||
| Net cash and cash equivalents, end of period | $ | 400,306 | $ | 56,021 | $ | 400,306 | $ | 56,021 | |||||||||
Segmented Financial Information
| Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||
| (Restated) | (Restated) | |||||||||||||||
| Sales | ||||||||||||||||
| Meat Products Group | $ | 750,947 | $ | 772,460 | $ | 2,180,971 | $ | 2,295,124 | ||||||||
| Agribusiness Group | 75,687 | 67,330 | 212,896 | 194,243 | ||||||||||||
| Bakery Products Group | 392,924 | 401,294 | 1,158,836 | 1,176,019 | ||||||||||||
| Total sales | $ | 1,219,558 | $ | 1,241,084 | $ | 3,552,703 | $ | 3,665,386 | ||||||||
| Sales from discontinued operations | (69,348) | (60,971) | (188,476) | (176,586) | ||||||||||||
| Sales from continuing operations | $ | 1,150,210 | $ | 1,180,113 | $ | 3,364,227 | $ | 3,488,800 | ||||||||
| Earnings before restructuring and other related | ||||||||||||||||
| costs and other income | ||||||||||||||||
| Meat Products Group | $ | (21,624) | $ | 22,875 | $ | (43,568) | $ | 55,783 | ||||||||
| Agribusiness Group | 22,562 | 15,699 | 29,668 | 49,486 | ||||||||||||
| Bakery Products Group | 38,547 | 29,903 | 85,355 | 63,506 | ||||||||||||
| Non-allocated costs | (2,721) | (12,648) | (9,811) | (24,277) | ||||||||||||
| Total earnings before restructuring | ||||||||||||||||
| and other related costs and other income | $ | 36,764 | $ | 55,829 | $ | 61,644 | $ | 144,498 | ||||||||
| Earnings before restructuring | ||||||||||||||||
| and other related costs and other income | ||||||||||||||||
| from discontinued operations | (21,003) | (19,677) | (57,923) | (60,113) | ||||||||||||
| Earnings before restructuring | ||||||||||||||||
| and other related costs and other income | ||||||||||||||||
| from continuing operations | $ | 15,761 | $ | 36,152 | $ | 3,721 | $ | 84,385 | ||||||||
| Capital expenditures | ||||||||||||||||
| Meat Products Group | $ | 92,257 | $ | 63,582 | $ | 231,463 | $ | 148,712 | ||||||||
| Agribusiness Group | 3,591 | 3,242 | 11,436 | 8,937 | ||||||||||||
| Bakery Products Group | 12,228 | 11,348 | 30,609 | 39,962 | ||||||||||||
| $ | 108,076 | $ | 78,172 | $ | 273,508 | $ | 197,611 | |||||||||
| Depreciation and amortization | ||||||||||||||||
| Meat Products Group | $ | 17,428 | $ | 14,912 | $ | 49,847 | $ | 44,829 | ||||||||
| Agribusiness Group | 4,043 | 4,023 | 12,295 | 11,949 | ||||||||||||
| Bakery Products Group | 14,396 | 14,142 | 42,994 | 40,868 | ||||||||||||
| $ | 35,867 | $ | 33,077 | $ | 105,136 | $ | 97,646 | |||||||||
| As at September 30, | As at September 30, | As at December 31, | As at January 1, | |||||||||||
| 2013 | 2012 | 2012 | 2012 | |||||||||||
| (Restated) | (Restated) | (Restated) | ||||||||||||
| Total assets | ||||||||||||||
| Meat Products Group | $ | 1,798,777 | $ | 1,554,470 | $ | 1,617,413 | $ | 1,482,741 | ||||||
| Agribusiness Group | 282,061 | 213,808 | 275,167 | 224,108 | ||||||||||
| Bakery Products Group | 1,014,807 | 999,391 | 1,005,432 | 944,032 | ||||||||||
| Non-allocated assets | 580,222 | 339,935 | 345,684 | 314,578 | ||||||||||
| $ | 3,675,867 | $ | 3,107,604 | $ | 3,243,696 | $ | 2,965,459 | |||||||
| Goodwill | ||||||||||||||
| Meat Products Group | $ | 428,235 | $ | 442,692 | $ | 442,925 | $ | 442,336 | ||||||
| Agribusiness Group | – | 13,845 | 13,845 | 13,845 | ||||||||||
| Bakery Products Group | 297,310 | 296,053 | 296,386 | 297,558 | ||||||||||
| $ | 725,545 | $ | 752,590 | $ | 753,156 | $ | 753,739 | |||||||
SOURCE Maple Leaf Foods Inc.
Investor Contact: Nick Boland,
VP Investor Relations: 416-926-2005
Media Contact: 416-926-2020