|
WATERDOWN, ONTARIO--(Marketwired - Aug 13, 2014) - Opta Minerals Inc. (OPM.TO), today announced results for the three and six months ended June 30, 2014. All figures are reported in U.S. dollars and are in accordance with International Financial Reporting Standards (IFRS), except where otherwise noted.
|
3 months |
|
3 months |
|
|
|
|
|
|
6 months |
|
6 months |
|
|
|
|
|
|
|
ended |
|
ended |
|
|
|
|
|
|
ended |
|
ended |
|
|
|
|
|
|
|
June 30, |
|
June 30, |
|
Increase |
|
|
|
June 30, |
|
June 30, |
|
Increase |
|
|
|
|
2014 |
|
2013 |
|
(Decrease) |
|
% |
|
2014 |
|
2013 |
|
(Decrease) |
|
% |
|
|
|
|
(restated) |
|
|
|
|
|
|
|
|
(restated) |
|
|
|
|
|
|
Revenue |
$ |
35,299 |
|
$ |
37,462 |
|
$ |
(2,163 |
) |
-5.8 |
% |
$ |
69,788 |
|
$ |
73,687 |
|
$ |
(3,899 |
) |
-5.3 |
% |
Gross Profit |
|
6,511 |
|
|
5,587 |
|
|
924 |
|
16.5 |
% |
|
11,408 |
|
|
12,842 |
|
|
(1,434 |
) |
-11.2 |
% |
|
|
18.4 |
% |
|
14.9 |
% |
|
3.5 |
% |
|
|
|
16.3 |
% |
|
17.4 |
% |
|
-1.1 |
% |
|
|
EBITDA1 |
|
3,151 |
|
|
2,085 |
|
|
1,066 |
|
51.1 |
% |
|
5,421 |
|
|
5,557 |
|
|
(136 |
) |
-2.4 |
% |
EBIT2 |
|
1,552 |
|
|
585 |
|
|
967 |
|
165.3 |
% |
|
2,331 |
|
|
2,587 |
|
|
(256 |
) |
-9.9 |
% |
Income (Loss) |
|
727 |
|
|
(552 |
) |
|
1,279 |
|
-231.7 |
% |
|
473 |
|
|
218 |
|
|
255 |
|
117.0 |
% |
EPS |
$ |
0.04 |
|
$ |
(0.03 |
) |
$ |
0.07 |
|
|
|
$ |
0.03 |
|
$ |
0.01 |
|
$ |
0.02 |
|
|
|
1 EBITDA is a non-IFRS measure: refer to Footnotes
2 EBIT is a non-IFRS measure; refer to Footnotes
David Kruse, President and CEO of Opta Minerals, noted "We are extremely pleased with our operating results this quarter, a significant improvement from the first quarter and from the comparative period in 2013. Volumes and revenue have increased over the first quarter of 2014 in both the Industrials Minerals and Steel and Magnesium segments. Gross profit, EBIT, net income, EPS and EBITDA are all higher with SGA down over the previous year's second quarter demonstrating improved economic conditions as well as cost reductions primarily related to the integration of WGI. Interest expense has been reduced with overall lower net borrowings. We expect revenues in future quarters to improve further with recently awarded new business commencing in the third quarter. We have dramatically reduced inventory levels from the December 31, 2013 year end which has had a positive impact on our investment in working capital and cash flow. The key priorities for the balance of the year continue to be revenue growth and cash generation.
The Company announced on June 19, 2014 that the Board of Directors is conducting a review of strategic alternatives available to the Company with a view to enhancing value for all shareholders. This process is continuing."
Operational and Financial Highlights:
- Second quarter revenue in the Steel and Magnesium segment increased 5.9% from the comparable quarter in 2013. On a year to date basis revenues have increased 2.2% over the comparable period in 2013. The Steel and Magnesium segment has benefited from increased volumes in the current quarter offset by certain prior year repricing. The Industrial Minerals segment decreased 17.0% over the comparable quarter in 2013 and 13.3% on a year to date basis as compared to the previous year. However, revenues have increased over the first quarter of 2014. The decrease in the quarter and year to date compared to the prior year was a combination of adverse weather early in the year and competitive conditions. The Company is currently focused on a number of opportunities to grow revenue and improve margins.
- Gross profit increased quarter over quarter due to higher overall gross profit margins of 18.4% compared to 14.9% in the prior year quarter. Margins improved in the second quarter from both the first quarter and the same period last year, an encouraging trend. Gross profit year to date, however, remains below the same period a year ago due to lower volume within the Industrial segment and certain repricing.
- Selling, general and administrative expenses (SGA) as a percent of revenues were 12.0% compared to 14.0% in the prior years second quarter. SGA as a percent of revenues were 12.3% compared to 14.5% on a year over year basis. With the integration of WGI completed, the Company has reduced SGA as synergies have been achieved from this acquisition. The Company is targeting 10% SGA as a percent of revenues and expects to achieve this primarily by a growth in revenues with limited increases in SGA.
- The Company's working capital at June 30, 2014 amounted to $23.2 million and total assets were $125.8 million, as compared to $23.3 million and $130.1 million, respectively, at December 31, 2013. While overall working capital is approximately the same as at December 31, 2013, the mix has changed with the June 30, 2014 working capital reflecting higher trade and other receivables, lower trade and other payables offset by significantly lower inventories. This shift generates improved cash flow with more available liquid assets in working capital.
- The debt to equity ratio at June 30, 2014 was 1.10 to 1.00, and at December 31, 2013 was 1.17 to 1.00.
Opta Minerals is a vertically integrated provider of custom process solutions and industrial mineral products used primarily in the steel, foundry, loose abrasive cleaning, water-jet cutting and municipal water filtration industries. The Company has production and distribution facilities in Ontario, Quebec, Saskatchewan, Louisiana, South Carolina, Virginia, Maryland, Indiana, Michigan, New York, Texas, Florida, Ohio, Idaho, France, Slovakia and Germany. Opta has one of the broadest product lines in the industry.
FOOTNOTES:
Earnings before income taxes and interest ("EBIT"); and earnings before interest, income taxes, depreciation and amortization ("EBITDA") as defined below, are both non-IFRS earnings measures that do not have standardized measures prescribed by IFRS, and therefore may not be comparable to similar measures presented by other publicly traded companies.
|
For the three |
|
For the six |
|
|
Months Ended |
|
Months Ended |
|
|
June 30 |
|
June 30 |
|
|
2014 |
|
2013 |
|
2014 |
|
2013 |
|
|
$ |
|
$ |
|
$ |
|
$ |
|
|
|
|
(restated |
) |
|
|
(restated |
) |
Income (Loss) for the Period |
727 |
|
(552 |
) |
473 |
|
218 |
|
Finance Expense |
847 |
|
1,154 |
|
1,748 |
|
2,114 |
|
Income Tax Expense (Recovery) |
(22 |
) |
(17 |
) |
110 |
|
255 |
|
Depreciation and Amortization |
1,505 |
|
1,500 |
|
2,984 |
|
3,044 |
|
Fair Value Adjustments to Contingent Consideration |
94 |
|
- |
|
106 |
|
(74 |
) |
|
|
EBITDA1 |
3,151 |
|
2,085 |
|
5,421 |
|
5,557 |
|
Subtract: |
|
|
|
|
|
|
|
|
Depreciation and Amortization |
1,505 |
|
1,500 |
|
2,984 |
|
3,044 |
|
Fair Value Adjustments to Contingent Consideration |
94 |
|
- |
|
106 |
|
(74 |
) |
|
|
EBIT2 |
1,552 |
|
585 |
|
2,331 |
|
2,587 |
|
Notes
1) The term "EBITDA" refers to earnings before deducting finance expense, income taxes, depreciation and amortization. The Company believes that EBITDA is useful supplemental information as it provides an indication of the results generated by the Company's main business activities prior to taking into consideration how those activities are financed and taxed and also prior to taking into consideration non-cash asset depreciation and amortization. EBITDA is not a recognized measure under International Finance Reporting Standards (IFRS), and accordingly, investors are cautioned that EBITDA should not be construed as an alternative to net earnings or loss determined in accordance with IFRS as an indicator of the financial performance of the Company or as a measure of the Company's liquidity and cash flows. The Company's method of calculating EBITDA may differ from other issuers and accordingly, EBITDA may not be comparable to similar measures presented by other issuers.
2) The term "EBIT" refers to earnings before income taxes and finance expense. The Company believes that EBIT is useful supplemental information as it provides an indication of the results generated by the Company's main business activities prior to taking into consideration how those activities are financed or taxed. EBIT is a non-IFRS earnings measure that does not have standardized measures prescribed by IFRS, and therefore may not be comparable to similar measures presented by other publicly traded companies.
Certain statements in this release constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements in this press release include, without limitation, statements relating to the Company's focus on opportunities to grow revenue and improve margins, its targets with respect to SGA as a percent of revenues, its focus on reducing costs everywhere in the business to improve profitability and the Company's continuing review of strategic alternatives with a view to enhancing value for all shareholders, as well as other statements which reflect the current expectations of management of the Company regarding the
Company's future growth, results of operations, performance, business prospects and opportunities. Wherever possible, words such as "may", 'would", "could", "should", "will", "anticipate", "believe", "plan", "expect", "intend", "estimate", "aim", "endeavour", "seek", "predict", "potential" and similar expressions have been used to identify these forward-looking statements. These statements reflect management's current beliefs with respect to future events and are based on information currently available to management of the Company. Forward-looking statements involve significant risks, uncertainties and assumptions. Many factors could cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, without limitation: the impact of general economic conditions; the impact of specific industry conditions; the inability of the Company to successfully integrate recently acquired businesses or to achieve the anticipated benefits from such acquisitions; the risk of unexpected costs or liabilities relating to acquisitions; currency fluctuations and exchange rate risks; risks associated with foreign operations; governmental and environmental regulation; competition from other industry participants; cancellations of or the failure to renew purchase orders; production and delivery issues; quality, pricing and availability of raw materials; mining risks; and the other risks identified in the Company's Annual Information Form and other public filings (copies of which may be obtained at www.sedar.com). Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results, performance or achievements may vary materially from those expressed or implied by this press release. These factors should be considered carefully and reader should not place undue reliance on the forward-looking statements. Although any forward-looking statements contained in this press release are based upon what management currently believes to be reasonable assumptions, the Company cannot assure readers that actual results, performance or achievements will be consistent with these forward-looking statements, and management's assumptions may prove to be incorrect. These forward-looking statements are made as of the date of this press release and, other than as required by law, the Company does not intend, and does not assume any obligation, to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.
Opta Minerals Inc. |
|
Interim Condensed Consolidated Balance Sheets |
As At June 30, 2014 |
(Unaudited) |
Expressed in Thousands of US Dollars (except per share amounts and number of shares) |
|
June 30, |
|
December 31, |
|
|
2014 |
|
2013 |
|
|
|
Assets |
|
|
|
|
|
|
Current |
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
3,008 |
|
$ |
4,084 |
|
|
Trade receivables, other receivables and prepayments |
|
20,543 |
|
|
14,676 |
|
|
Inventories |
|
32,708 |
|
|
39,525 |
|
|
Income taxes receivable |
|
416 |
|
|
544 |
|
|
|
56,675 |
|
|
58,829 |
|
Property, Plant and Equipment |
|
27,089 |
|
|
28,030 |
|
Intangible Assets |
|
29,912 |
|
|
31,071 |
|
Goodwill |
|
10,674 |
|
|
10,659 |
|
Deferred Income Tax Assets |
|
1,481 |
|
|
1,471 |
|
|
$ |
125,831 |
|
$ |
130,060 |
|
|
|
Liabilities |
|
|
|
|
|
|
Current |
|
|
|
|
|
|
|
Trade and other payables |
$ |
12,035 |
|
$ |
13,961 |
|
|
Borrowings |
|
20,485 |
|
|
20,721 |
|
|
Provisions |
|
601 |
|
|
520 |
|
|
Other liabilities |
|
369 |
|
|
348 |
|
|
|
33,490 |
|
|
35,550 |
|
Borrowings |
|
35,078 |
|
|
37,539 |
|
Derivative Financial Instruments |
|
358 |
|
|
311 |
|
Provisions |
|
121 |
|
|
91 |
|
Other Liabilities |
|
195 |
|
|
371 |
|
Deferred Income Tax Liabilities |
|
6,127 |
|
|
6,540 |
|
|
|
75,369 |
|
|
80,402 |
|
Equity Attributable to the Shareholders of the Company |
|
|
|
|
|
|
Capital Stock |
|
|
|
|
|
|
|
Authorized without limit as to number - |
|
|
|
|
|
|
|
|
Preference shares (without par value) |
|
|
|
|
|
|
|
|
Common shares |
|
|
|
|
|
|
|
Issued - |
|
|
|
|
|
|
|
|
18,118,612 common shares (December 31, 2013 - 18,111,247) |
|
17,894 |
|
|
17,882 |
|
Contributed Surplus |
|
4,564 |
|
|
4,358 |
|
Accumulated Other Comprehensive Loss |
|
(749 |
) |
|
(862 |
) |
Retained Earnings |
|
28,753 |
|
|
28,280 |
|
|
|
50,462 |
|
|
49,658 |
|
|
$ |
125,831 |
|
$ |
130,060 |
|
|
|
Opta Minerals Inc. |
|
|
|
Interim Condensed Consolidated Statements of Income (Loss) |
|
For the Three Months Ended June 30, 2014 and 2013 |
|
(Unaudited) |
|
Expressed in Thousands of US Dollars (except per share amounts) |
|
|
|
|
|
|
June 30, |
|
June 30, |
|
|
2014 |
|
2013 |
|
|
|
|
|
(Restated |
) |
Revenue |
$ |
35,299 |
|
$ |
37,462 |
|
Cost of Goods Sold |
|
28,788 |
|
|
31,875 |
|
|
|
Gross Profit |
|
6,511 |
|
|
5,587 |
|
|
|
Expenses |
|
|
|
|
|
|
|
Selling, general and administrative |
|
4,249 |
|
|
5,242 |
|
|
Fair value adjustments to contingent consideration |
|
94 |
|
|
- |
|
|
Other expenses (income) |
|
616 |
|
|
(240 |
) |
|
|
4,959 |
|
|
5,002 |
|
|
|
Income Before Finance Expense and Income Taxes |
|
1,552 |
|
|
585 |
|
Finance expense |
|
847 |
|
|
1,154 |
|
|
|
Income (Loss) Before Income Taxes |
|
705 |
|
|
(569 |
) |
Income tax recovery |
|
22 |
|
|
17 |
|
|
|
Income (loss) for the Period Attributable to the Shareholders of the Company |
$ |
727 |
|
$ |
(552 |
) |
|
|
Earnings (loss) per share for the period - basic and diluted |
$ |
0.04 |
|
$ |
(0.03 |
) |
|
|
Opta Minerals Inc. |
|
|
|
Interim Condensed Consolidated Statements of Income |
|
For the Six Months Ended June 30, 2014 and 2013 |
|
(Unaudited) |
|
Expressed in Thousands of US Dollars (except per share amounts) |
|
|
|
|
|
|
June 30, |
|
June 30, |
|
|
2014 |
|
2013 |
|
|
|
|
|
(Restated |
) |
Revenue |
$ |
69,788 |
|
$ |
73,687 |
|
Cost of Goods Sold |
|
58,380 |
|
|
60,845 |
|
|
|
Gross Profit |
|
11,408 |
|
|
12,842 |
|
|
|
Expenses |
|
|
|
|
|
|
|
Selling, general and administrative |
|
8,606 |
|
|
10,683 |
|
|
Fair value adjustments to contingent consideration |
|
106 |
|
|
(74 |
) |
|
Other expenses (income) |
|
365 |
|
|
(354 |
) |
|
|
9,077 |
|
|
10,255 |
|
|
|
Income Before Finance Expense and Income Taxes |
|
2,331 |
|
|
2,587 |
|
Finance expense |
|
1,748 |
|
|
2,114 |
|
|
|
Income Before Income Taxes |
|
583 |
|
|
473 |
|
Income tax expense |
|
110 |
|
|
255 |
|
|
|
Income for the Period Attributable to the Shareholders of the Company |
$ |
473 |
|
$ |
218 |
|
|
|
Earnings per share for the period - basic and diluted |
$ |
0.03 |
|
$ |
0.01 |
|
|
|
Opta Minerals Inc. |
|
|
|
Interim Condensed Consolidated Statements of Comprehensive Income (Loss) |
|
For the Three Months Ended June 30, 2014 and 2013 |
|
(Unaudited) |
|
Expressed in Thousands of US Dollars |
|
|
|
|
June 30, |
|
June 30, |
|
|
2014 |
|
2013 |
|
|
|
|
|
(Restated |
) |
|
|
Income (Loss) for the Period Attributable to the Shareholders of the Company |
$ |
727 |
|
$ |
(552 |
) |
Other Comprehensive Income, net of income taxes |
|
|
|
|
|
|
|
|
Items that may be reclassified subsequently to profit or loss |
|
|
|
|
|
|
|
Unrealized gain on translation of foreign operations |
|
53 |
|
|
607 |
|
|
Unrealized gain on derivative financial instruments designated as cash flow hedges |
|
24 |
|
|
445 |
|
|
Other comprehensive income, net of income taxes |
|
77 |
|
|
1,052 |
|
|
|
Comprehensive Income Attributable to the Shareholders of the Company |
$ |
804 |
|
$ |
500 |
|
|
Opta Minerals Inc. |
|
Interim Condensed Consolidated Statements of Comprehensive Income |
For the Six Months Ended June 30, 2014 and 2013 |
(Unaudited) |
Expressed in Thousands of US Dollars |
|
|
|
June 30, |
|
June 30, |
|
|
2014 |
|
2013 |
|
|
|
|
|
(Restated |
) |
Income for the Period Attributable to the Shareholders of the Company |
$ |
473 |
|
$ |
218 |
|
Other Comprehensive Income (Loss), net of income taxes |
|
|
|
|
|
|
Items that may be reclassified subsequently to profit or loss |
|
|
|
|
|
|
Unrealized gain on translation of foreign operations |
|
147 |
|
|
263 |
|
Unrealized gain (loss) on derivative financial instruments designated as cash flow hedges |
|
(34 |
) |
|
221 |
|
Other comprehensive income, net of income taxes |
|
113 |
|
|
484 |
|
|
|
Comprehensive Income Attributable to the Shareholders of the Company |
$ |
586 |
|
$ |
702 |
|
|
Opta Minerals Inc. |
|
Interim Condensed Consolidated Statements of Changes in Equity |
For the Six Months Ended June 30, 2014 and 2013 |
(Unaudited) |
Expressed in Thousands of US Dollars (except per share amounts and number of shares) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of Shares - Capital Stock |
|
Capital Stock |
|
Contributed Surplus - Share-based Payments |
|
AOCI* - Cash Flow Hedge |
|
AOCI* - Foreign Currency Translation Reserve |
|
Retained Earnings |
|
Total Equity |
|
|
|
At January 1, 2014 |
18,111,247 |
|
$ 17,882 |
|
$ |
4,358 |
|
$ |
(230 |
) |
$ |
(632 |
) |
$ 28,280 |
|
$ 49,658 |
|
Comprehensive Income (Loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income for the period |
- |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
473 |
|
473 |
|
|
Unrealized gain on translation of foreign operations |
- |
|
- |
|
|
- |
|
|
- |
|
|
147 |
|
- |
|
147 |
|
|
Unrealized loss on derivative financial instruments designated as cash flow hedges |
- |
|
- |
|
|
- |
|
|
(34 |
) |
|
- |
|
- |
|
(34 |
) |
Total Comprehensive Income (Loss) |
- |
|
- |
|
|
- |
|
|
(34 |
) |
|
147 |
|
473 |
|
586 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transactions with Shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee share purchase plan |
7,365 |
|
12 |
|
|
- |
|
|
- |
|
|
- |
|
- |
|
12 |
|
|
Share-based payment expense |
- |
|
- |
|
|
206 |
|
|
- |
|
|
- |
|
- |
|
206 |
|
Total Transactions with Shareholders |
7,365 |
|
12 |
|
|
206 |
|
|
- |
|
|
- |
|
- |
|
218 |
|
At June 30, 2014 |
18,118,612 |
|
$ 17,894 |
|
$ |
4,564 |
|
$ |
(264 |
) |
$ |
(485 |
) |
$ 28,753 |
|
$ 50,462 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At January 1, 2013 |
18,084,559 |
|
$ 17,822 |
|
$ |
3,925 |
|
$ |
(293 |
) |
$ |
(1,556 |
) |
$ 28,461 |
|
$ 48,359 |
|
Comprehensive Income - restated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income for the period |
- |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
218 |
|
218 |
|
|
Unrealized gain on translation of foreign operations |
- |
|
- |
|
|
- |
|
|
- |
|
|
263 |
|
- |
|
263 |
|
|
Unrealized gain on derivative financial instruments designated as cash flow hedges |
- |
|
- |
|
|
- |
|
|
221 |
|
|
- |
|
- |
|
221 |
|
Total Comprehensive Income |
- |
|
- |
|
|
- |
|
|
221 |
|
|
263 |
|
218 |
|
702 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transactions with Shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee share purchase plan |
8,946 |
|
26 |
|
|
- |
|
|
- |
|
|
- |
|
- |
|
26 |
|
|
Share options exercised |
8,077 |
|
15 |
|
|
(15 |
) |
|
- |
|
|
- |
|
- |
|
- |
|
|
Share-based payment expense |
- |
|
- |
|
|
205 |
|
|
- |
|
|
- |
|
- |
|
205 |
|
Total Transactions with Shareholders |
17,023 |
|
41 |
|
|
190 |
|
|
- |
|
|
- |
|
- |
|
231 |
|
At June 30, 2013 |
18,101,582 |
|
$ 17,863 |
|
$ |
4,115 |
|
$ |
(72 |
) |
$ |
(1,293 |
) |
$ 28,679 |
|
$ 49,292 |
|
|
* AOCI - Accumulated Other Comprehensive Income |
|
|
Opta Minerals Inc. |
|
|
|
Interim Condensed Consolidated Statements of Cash Flows |
|
For the Six Months Ended June 30, 2014 and 2013 |
|
(Unaudited) |
|
Expressed in Thousands of US Dollars (except per share amounts and number of shares) |
|
|
|
|
June 30, |
|
June 30, |
|
|
2014 |
|
2013 |
|
|
|
|
|
(Restated |
) |
Cash Provided by (Used in) - |
|
|
|
|
|
|
Operating Activities |
|
|
|
|
|
|
Income for the period |
$ |
473 |
|
$ |
218 |
|
|
|
Items not affecting cash: |
|
|
|
|
|
|
Depreciation of property, plant and equipment |
|
1,867 |
|
|
1,778 |
|
Amortization of intangible assets |
|
1,117 |
|
|
1,266 |
|
Share-based payment expense |
|
206 |
|
|
190 |
|
Loss (gain) on disposal of property, plant and equipment |
|
4 |
|
|
(5 |
) |
Fair value adjustments to contingent consideration |
|
106 |
|
|
(74 |
) |
Deferred income taxes |
|
(427 |
) |
|
(462 |
) |
|
|
3,346 |
|
|
2,911 |
|
Changes in non-cash working capital |
|
|
|
|
|
|
Trade receivables, other receivables and prepayments |
|
(5,799 |
) |
|
(3,718 |
) |
Inventories |
|
6,941 |
|
|
(3,375 |
) |
Trade and other payables |
|
(1,849 |
) |
|
2,853 |
|
Provisions |
|
108 |
|
|
14 |
|
Income taxes receivable |
|
115 |
|
|
(660 |
) |
|
|
2,862 |
|
|
(1,975 |
) |
Financing Activities |
|
|
|
|
|
|
Proceeds from issuance of common shares - net of issuance costs |
|
12 |
|
|
41 |
|
Proceeds from borrowings - net of deferred finance charges |
|
- |
|
|
7,318 |
|
Repayment of borrowings - net of deferred finance charges |
|
(2,534 |
) |
|
(2,582 |
) |
Repayment of finance lease liabilities |
|
(159 |
) |
|
(437 |
) |
|
|
(2,681 |
) |
|
4,340 |
|
Investing Activities |
|
|
|
|
|
|
Additions to property, plant and equipment |
|
(961 |
) |
|
(2,030 |
) |
Proceeds on disposal of property, plant and equipment |
|
12 |
|
|
9 |
|
Additions to intangible assets |
|
(37 |
) |
|
(99 |
) |
Acquisition of subsidiaries |
|
- |
|
|
(175 |
) |
Additional contingent consideration paid on acquisitions |
|
(260 |
) |
|
(296 |
) |
|
|
(1,246 |
) |
|
(2,591 |
) |
Effect of Foreign Exchange Loss on Cash and Cash Equivalents |
|
(11 |
) |
|
(22 |
) |
|
|
Net Decrease in Cash and Cash Equivalents |
|
(1,076 |
) |
|
(248 |
) |
|
|
Cash and Cash Equivalents |
|
|
|
|
|
|
Beginning of Period |
|
4,084 |
|
|
3,966 |
|
End of Period |
$ |
3,008 |
|
$ |
3,718 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Opta Minerals Inc. |
|
|
|
Interim Segmented Information |
|
For the Three Months Ended June 30, 2014 and 2013 |
|
(Unaudited) |
|
Expressed in Thousands of US Dollars |
|
|
|
|
Three Months Ended June 30, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel and |
|
Industrial |
|
|
|
|
|
|
Magnesium |
|
Minerals |
|
Corporate |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External revenue by market |
|
|
|
|
|
|
|
|
|
|
|
|
Canada |
$ |
3,384 |
|
$ |
3,176 |
|
$ |
- |
|
$ |
6,560 |
|
US |
|
12,582 |
|
|
7,227 |
|
|
- |
|
|
19,809 |
|
Europe |
|
3,552 |
|
|
3,012 |
|
|
- |
|
|
6,564 |
|
Other |
|
2 |
|
|
2,364 |
|
|
- |
|
|
2,366 |
|
Total revenue from external customers |
|
19,520 |
|
|
15,779 |
|
|
- |
|
|
35,299 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment income before corporate expenses, fair value adjustments to contingent consideration, finance expense and income taxes |
|
2,984 |
|
|
1,229 |
|
|
- |
|
|
4,213 |
|
Fair value adjustments to contingent consideration |
|
(94 |
) |
|
- |
|
|
- |
|
|
(94 |
) |
Corporate expenses |
|
- |
|
|
- |
|
|
(2,567 |
) |
|
(2,567 |
) |
Segment income (loss) before finance expense and income taxes |
|
2,890 |
|
|
1,229 |
|
|
(2,567 |
) |
|
1,552 |
|
Finance expense |
|
- |
|
|
- |
|
|
- |
|
|
(847 |
) |
Income tax recovery |
|
- |
|
|
- |
|
|
- |
|
|
22 |
|
Income for the period |
|
- |
|
|
- |
|
|
- |
|
|
727 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation of property, plant and equipment |
|
459 |
|
|
447 |
|
|
40 |
|
|
946 |
|
Amortization of intangible assets |
|
540 |
|
|
1 |
|
|
18 |
|
|
559 |
|
Expenditures on property, plant and equipment |
$ |
663 |
|
$ |
61 |
|
$ |
5 |
|
$ |
729 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Opta Minerals Inc. |
|
|
|
Interim Segmented Information |
|
For the Six Months Ended June 30, 2014 and 2013 |
|
(Unaudited) |
|
Expressed in Thousands of US Dollars |
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel and |
|
Industrial |
|
|
|
|
|
|
Magnesium |
|
Minerals |
|
Corporate |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External revenue by market |
|
|
|
|
|
|
|
|
|
|
|
|
Canada |
$ |
7,089 |
|
$ |
5,369 |
|
$ |
- |
|
$ |
12,458 |
|
US |
|
24,909 |
|
|
14,832 |
|
|
- |
|
|
39,741 |
|
Europe |
|
6,943 |
|
|
6,323 |
|
|
- |
|
|
13,266 |
|
Other |
|
2 |
|
|
4,321 |
|
|
- |
|
|
4,323 |
|
Total revenue from external customers |
|
38,943 |
|
|
30,845 |
|
|
- |
|
|
69,788 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment income before corporate expenses, fair value adjustments to contingent consideration, finance expense and income taxes |
|
5,486 |
|
|
704 |
|
|
- |
|
|
6,190 |
|
Fair value adjustments to contingent consideration |
|
(106 |
) |
|
- |
|
|
- |
|
|
(106 |
) |
Corporate expenses |
|
- |
|
|
- |
|
|
(3,753 |
) |
|
(3,753 |
) |
Segment income (loss) before finance expense and income taxes |
|
5,380 |
|
|
704 |
|
|
(3,753 |
) |
|
2,331 |
|
Finance expense |
|
- |
|
|
- |
|
|
- |
|
|
(1,748 |
) |
Income tax expense |
|
- |
|
|
- |
|
|
- |
|
|
(110 |
) |
Income for the period |
|
- |
|
|
- |
|
|
- |
|
|
473 |
|
Total assets as at June 30, 2014 |
|
68,997 |
|
|
53,121 |
|
|
3,713 |
|
|
125,831 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation of property, plant and equipment |
|
884 |
|
|
902 |
|
|
81 |
|
|
1,867 |
|
Amortization of intangible assets |
|
1,078 |
|
|
1 |
|
|
38 |
|
|
1,117 |
|
Goodwill and intangible assets as at June 30, 2014 |
|
39,823 |
|
|
646 |
|
|
117 |
|
|
40,586 |
|
Expenditures on property, plant and equipment |
$ |
828 |
|
$ |
127 |
|
$ |
6 |
|
$ |
961 |
|
|
|
Opta Minerals Inc. |
|
|
|
Interim Segmented Information |
|
For the Three Months Ended June 30, 2014 and 2013 |
|
(Unaudited) |
|
Expressed in Thousands of US Dollars |
|
|
|
|
Three Months Ended June 30, 2013 |
|
|
|
|
|
|
|
|
|
|
|
(Restated |
) |
|
Steel and |
|
Industrial |
|
|
|
|
|
|
Magnesium |
|
Minerals |
|
Corporate |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External revenue by market |
|
|
|
|
|
|
|
|
|
|
|
|
Canada |
$ |
3,242 |
|
$ |
3,559 |
|
$ |
- |
|
$ |
6,801 |
|
US |
|
11,431 |
|
|
9,723 |
|
|
- |
|
|
21,154 |
|
Europe |
|
3,768 |
|
|
3,526 |
|
|
- |
|
|
7,294 |
|
Other |
|
- |
|
|
2,213 |
|
|
- |
|
|
2,213 |
|
Total revenue from external customers |
|
18,441 |
|
|
19,021 |
|
|
- |
|
|
37,462 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment income (loss) before corporate expenses, finance expense and income taxes |
|
3,301 |
|
|
(1,208 |
) |
|
- |
|
|
2,093 |
|
Corporate expenses |
|
- |
|
|
- |
|
|
(1,508 |
) |
|
(1,508 |
) |
Segment income (loss) before finance expense and income taxes |
|
3,301 |
|
|
(1,208 |
) |
|
(1,508 |
) |
|
585 |
|
Finance expense |
|
- |
|
|
- |
|
|
- |
|
|
(1,154 |
) |
Income tax recovery |
|
- |
|
|
- |
|
|
- |
|
|
17 |
|
Loss for the period |
|
- |
|
|
- |
|
|
- |
|
|
(552 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation of property, plant and equipment |
|
367 |
|
|
471 |
|
|
51 |
|
|
889 |
|
Amortization of intangible assets |
|
519 |
|
|
46 |
|
|
46 |
|
|
611 |
|
Expenditures on property, plant and equipment |
$ |
962 |
|
$ |
328 |
|
$ |
31 |
|
$ |
1,321 |
|
|
|
Opta Minerals Inc. |
|
|
|
Interim Segmented Information |
|
For the Six Months Ended June 30, 2014 and 2013 |
|
(Unaudited) |
|
Expressed in Thousands of US Dollars |
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2013 |
|
|
|
|
|
|
|
|
|
|
|
(Restated |
) |
|
Steel and |
|
Industrial |
|
|
|
|
|
|
Magnesium |
|
Minerals |
|
Corporate |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External revenue by market |
|
|
|
|
|
|
|
|
|
|
|
|
Canada |
$ |
6,681 |
|
$ |
6,774 |
|
$ |
- |
|
$ |
13,455 |
|
US |
23,793 |
|
|
17,508 |
|
|
- |
|
|
41,301 |
|
Europe |
|
7,619 |
|
|
6,880 |
|
|
- |
|
|
14,499 |
|
Other |
|
- |
|
|
4,432 |
|
|
- |
|
|
4,432 |
|
Total revenue from external customers |
38,093 |
|
|
35,594 |
|
|
- |
|
|
73,687 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment income (loss) before corporate expenses, fair value adjustments to contingent consideration, finance expense and income taxes |
|
6,787 |
|
|
(1,240 |
) |
|
- |
|
|
5,547 |
|
Fair value adjustments to contingent consideration |
|
74 |
|
|
- |
|
|
- |
|
|
74 |
|
Corporate expenses |
|
- |
|
|
- |
|
|
(3,034 |
) |
|
(3,034 |
) |
Segment income (loss) before finance expense and income taxes |
|
6,861 |
|
|
(1,240 |
) |
|
(3,034 |
) |
|
2,587 |
|
Finance expense |
|
- |
|
|
- |
|
|
- |
|
|
(2,114 |
) |
Income tax expense |
|
- |
|
|
- |
|
|
- |
|
|
(255 |
) |
Income for the period |
|
- |
|
|
- |
|
|
- |
|
|
218 |
|
Total assets as at June 30, 2013 |
71,324 |
|
|
64,632 |
|
|
3,749 |
|
|
139,705 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation of property, plant and equipment |
|
730 |
|
|
947 |
|
|
101 |
|
|
1,778 |
|
Amortization of intangible assets |
|
1,078 |
|
|
93 |
|
|
95 |
|
|
1,266 |
|
Goodwill and intangible assets as at June 30, 2013 |
|
41,666 |
|
|
4,709 |
|
|
174 |
|
|
46,549 |
|
Expenditures on property, plant and equipment |
$ |
1,126 |
|
$ |
745 |
|
$ |
159 |
|
$ |
2,030 |
|
|
|