|
WATERDOWN, ONTARIO--(Marketwired - Nov 12, 2014) - Opta Minerals Inc. (OPM.TO) today announced results for the three and nine months ended September 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 ended |
|
3 months ended |
|
|
|
|
|
9 months ended |
|
9 months ended |
|
|
|
|
|
|
September 30, 2014 |
|
September 30, 2013 |
|
Increase
(Decrease) |
|
% |
|
September 30, 2014 |
|
September 30, 2013 |
|
Increase (Decrease) |
|
% |
|
|
|
|
(restated) |
|
|
|
|
|
|
|
(restated) |
|
|
|
|
|
Revenue |
$ |
35,879 |
|
$ |
34,927 |
|
$ |
952 |
|
2.7 |
% |
$ |
105,667 |
|
$ |
108,614 |
|
$ |
(2,947 |
) |
-2.7 |
% |
Gross Profit |
|
5,275 |
|
|
5,743 |
|
|
(468 |
) |
-8.1 |
% |
|
16,683 |
|
|
18,585 |
|
|
(1,902 |
) |
-10.2 |
% |
|
|
14.7 |
% |
|
16.4 |
% |
|
-1.7 |
% |
|
|
|
15.8 |
% |
|
17.1 |
% |
|
-1.3 |
% |
|
|
EBITDA(1) |
|
2,242 |
|
|
3,217 |
|
|
(975 |
) |
-30.3 |
% |
|
7,663 |
|
|
8,774 |
|
|
(1,111 |
) |
-12.7 |
% |
EBIT(2) |
|
432 |
|
|
(1,639 |
) |
|
2,071 |
|
-126.4 |
% |
|
2,763 |
|
|
948 |
|
|
1,815 |
|
191.5 |
% |
Income (Loss) |
|
519 |
|
|
(1,370 |
) |
|
1,889 |
|
-137.9 |
% |
|
992 |
|
|
(1,152 |
) |
|
2,144 |
|
-186.1 |
% |
EPS |
$ |
0.03 |
|
$ |
(0.08 |
) |
$ |
0.11 |
|
|
|
$ |
0.05 |
|
$ |
(0.06 |
) |
$ |
0.11 |
|
|
|
|
|
(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 pleased with new business growth which has driven higher revenues in the third quarter compared to the second quarter and the comparable quarter of the previous year. New customer growth has come from both groups with a primary new account within the Steel and Magnesium segment. We have a number of other internal growth initiatives that are being pursued in both segments. Offsetting new business, economic conditions and a fierce competitive environment have prevented the Industrial Minerals segment from growing revenues and profits. We are working on new ways to compete in these tough markets and reassessing all aspects of the Industrial Minerals business. To this end post quarter the company has reduced headcount and certain other expenses in both Infrastructure and the corporate head office. These reductions were unfortunate but necessary and will reduce costs by approximately $1 million annually. We continue to reduce inventory levels from the December 31, 2013 year end balances which is freeing up cash flow for new growth initiatives. Key priorities remain the same to focus on revenue growth and cash generation.
"The Company continues to look at strategic alternatives for the business as announced on June 19, 2014."
Operational and Financial Highlights:
- Third quarter revenue in the Steel and Magnesium segment increased 17.1% from the comparable quarter in 2013. On a year to date basis revenues have increased 7.1% over the comparable period in 2013. The Steel and Magnesium segment has benefited from new business in the quarter and generally higher volumes from existing customers. The Industrial Minerals segment decreased 13.3% over the comparable quarter and on a year to date basis as compared to the previous year. The decrease is primarily due to economic and competitive activity in the markets we serve.
- Gross profit and gross margin percentage are below the same quarter of the prior year. Margins are lower in the Steel group due to certain repricing that occurred in the fourth quarter of 2013. Industrial Minerals segment margins are being impacted by lower volumes, product mix and competitive pressure.
- Selling, general and administrative expenses (SGA) as a percent of revenues were 11.5% compared to 12.7% in the prior years third quarter and 12.0% in the second quarter. 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. SGA for the quarter and year to date includes certain one time expenses related to the review of strategic options for the Company, settlement of a lawsuit and a higher than usual bad debt related to a customer bankruptcy for a total in the quarter and year to date of $264 and $326, respectively.
- Results include foreign exchange losses of $416 in the current quarter and $781 year to date compared to foreign exchange gains of $341 and $695 in the prior comparable quarter and year to date, respectively. Excluding these foreign exchange gains and losses, EBITDA is positive on a year to date basis compared to the previous year as a result of growth in the Steel business and acquisition based integration synergies.
- During the quarter the company also had a write-down of assets related to the closure of a facility for $180K. In the third quarter of 2013 the Industrial Minerals segment wrote down goodwill and certain intangibles of $3.9 million.
- The Company's working capital at September 30, 2014 is $22.7 million and total assets were $124.8 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 September 30, 2014 working capital reflecting higher trade and other receivables, 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 September 30, 2014 was 1.04 to 1.00, compared to 1.17 to 1.00 at December 31, 2013. Ratios are improving as debt continues to fall.
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 Months Ended |
|
For the nine Months Ended |
|
|
September 30 |
|
September 30 |
|
|
2014 |
|
2013 |
|
2014 |
|
2013 |
|
|
$ |
|
$ |
|
$ |
|
$ |
|
|
|
|
(restated) |
|
|
|
(restated) |
|
Loss for the Period |
519 |
|
(1,370 |
) |
992 |
|
(1,152 |
) |
Finance Expense |
1,035 |
|
854 |
|
2,783 |
|
2,968 |
|
Income Tax Recovery |
(1,122 |
) |
(1,123 |
) |
(1,012 |
) |
(868 |
) |
Depreciation and Amortization |
1,515 |
|
1,565 |
|
4,499 |
|
4,609 |
|
Goodwill and Intangible Asset Write-downs |
- |
|
3,862 |
|
- |
|
3,862 |
|
Property, Plant and Equipment Write-downs |
180 |
|
- |
|
180 |
|
- |
|
Fair Value Adjustments to Contingent Consideration |
115 |
|
(571 |
) |
221 |
|
(645 |
) |
|
|
EBITDA(1) |
2,242 |
|
3,217 |
|
7,663 |
|
8,774 |
|
Subtract: |
|
|
|
|
|
|
|
|
Depreciation and Amortization |
1,515 |
|
1,565 |
|
4,499 |
|
4,609 |
|
Goodwill and Intangible Asset Write-downs |
- |
|
3,862 |
|
- |
|
3,862 |
|
Property, Plant and Equipment Write-downs |
180 |
|
- |
|
180 |
|
- |
|
Fair Value Adjustments to Contingent Consideration |
115 |
|
(571 |
) |
221 |
|
(645 |
) |
|
|
EBIT(2) |
432 |
|
(1,639 |
) |
2,763 |
|
948 |
|
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: internal growth initiatives that are being pursued by the Company; the Company's focus on revenue growth and cash generation; 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 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 September 30, 2014 |
(Unaudited) |
Expressed in Thousands of US Dollars (except per share amounts and number of shares) |
|
|
September 30, |
|
December 31, |
|
|
2014 |
|
2013 |
|
|
|
|
(Restated) |
|
Assets |
|
|
|
|
|
|
Current |
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
3,907 |
|
$ |
4,084 |
|
|
Trade receivables, other receivables and prepayments |
|
21,978 |
|
|
14,676 |
|
|
Inventories |
|
32,027 |
|
|
39,525 |
|
|
Income taxes receivable |
|
968 |
|
|
544 |
|
|
|
58,880 |
|
|
58,829 |
|
Property, Plant and Equipment |
|
26,060 |
|
|
28,030 |
|
Intangible Assets |
|
28,302 |
|
|
31,071 |
|
Goodwill |
|
10,330 |
|
|
10,659 |
|
Deferred Income Tax Assets |
|
1,272 |
|
|
1,471 |
|
|
$ |
124,844 |
|
$ |
130,060 |
|
|
|
Liabilities |
|
|
|
|
|
|
Current |
|
|
|
|
|
|
|
Trade and other payables |
$ |
14,905 |
|
$ |
13,961 |
|
|
Borrowings |
|
20,175 |
|
|
20,721 |
|
|
Provisions |
|
603 |
|
|
520 |
|
|
Other liabilities |
|
522 |
|
|
348 |
|
|
|
36,205 |
|
|
35,550 |
|
Borrowings |
|
32,546 |
|
|
37,539 |
|
Derivative Financial Instruments |
|
296 |
|
|
311 |
|
Provisions |
|
151 |
|
|
91 |
|
Other Liabilities |
|
142 |
|
|
371 |
|
Deferred Income Tax Liabilities |
|
5,004 |
|
|
6,540 |
|
|
|
74,344 |
|
|
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 - |
|
|
|
|
|
|
|
|
18,122,387 common shares (December 31, 2013 - 18,111,247) |
|
17,900 |
|
|
17,882 |
|
Contributed Surplus |
|
4,638 |
|
|
4,358 |
|
Accumulated Other Comprehensive Loss |
|
(1,310 |
) |
|
(862 |
) |
Retained Earnings |
|
29,272 |
|
|
28,280 |
|
|
|
50,500 |
|
|
49,658 |
|
|
$ |
124,844 |
|
$ |
130,060 |
|
|
Opta Minerals Inc. |
|
Interim Condensed Consolidated Statements of Income (Loss) |
For the Three Months Ended September 30, 2014 and 2013 |
(Unaudited) |
Expressed in Thousands of US Dollars (except per share amounts) |
|
|
|
|
September 30, |
|
September 30, |
|
|
2014 |
|
2013 |
|
|
|
|
(Restated) |
|
Revenue |
$ |
35,879 |
|
$ |
34,927 |
|
Cost of Goods Sold |
|
30,604 |
|
|
29,184 |
|
|
|
Gross Profit |
|
5,275 |
|
|
5,743 |
|
|
|
Expenses |
|
|
|
|
|
|
|
Selling, general and administrative |
|
4,132 |
|
|
4,432 |
|
|
Goodwill and intangible asset write-downs |
|
- |
|
|
3,862 |
|
|
Property, plant and equipment write-downs |
|
180 |
|
|
- |
|
|
Fair value adjustments to contingent consideration |
|
115 |
|
|
(571 |
) |
|
Other expenses (income) |
|
416 |
|
|
(341 |
) |
|
|
4,843 |
|
|
7,382 |
|
|
|
Income (Loss) Before Finance Expense and Income Taxes |
|
432 |
|
|
(1,639 |
) |
Finance expense |
|
1,035 |
|
|
854 |
|
|
|
Loss Before Income Taxes |
|
(603 |
) |
|
(2,493 |
) |
Income tax recovery |
|
(1,122 |
) |
|
(1,123 |
) |
|
|
Income (Loss) for the Period Attributable to the Shareholders of the Company |
$ |
519 |
|
$ |
(1,370 |
) |
|
|
Income (Loss) per share for the period - basic and diluted |
$ |
0.03 |
|
$ |
(0.08 |
) |
|
Opta Minerals Inc. |
|
Interim Condensed Consolidated Statements of Income (Loss) |
For the Nine Months Ended September 30, 2014 and 2013 |
(Unaudited) |
Expressed in Thousands of US Dollars (except per share amounts) |
|
|
September 30, |
|
September 30, |
|
|
2014 |
|
2013 |
|
|
|
|
(Restated) |
|
Revenue |
$ |
105,667 |
|
$ |
108,614 |
|
Cost of Goods Sold |
|
88,984 |
|
|
90,029 |
|
|
|
Gross Profit |
|
16,683 |
|
|
18,585 |
|
|
|
Expenses |
|
|
|
|
|
|
|
Selling, general and administrative |
|
12,738 |
|
|
15,115 |
|
|
Goodwill and intangible asset write-downs |
|
- |
|
|
3,862 |
|
|
Property, plant and equipment write-downs |
|
180 |
|
|
- |
|
|
Fair value adjustments to contingent consideration |
|
221 |
|
|
(645 |
) |
|
Other expenses (income) |
|
781 |
|
|
(695 |
) |
|
|
13,920 |
|
|
17,637 |
|
|
|
Income Before Finance Expense and Income Taxes |
|
2,763 |
|
|
948 |
|
Finance expense |
|
2,783 |
|
|
2,968 |
|
|
|
Loss Before Income Taxes |
|
(20 |
) |
|
(2,020 |
) |
Income tax recovery |
|
(1,012 |
) |
|
(868 |
) |
|
|
Income (Loss) for the Period Attributable to the Shareholders of the Company |
$ |
992 |
|
$ |
(1,152 |
) |
|
|
Income (Loss) per share for the period - basic and diluted |
$ |
0.05 |
|
$ |
(0.06 |
) |
|
Opta Minerals Inc. |
|
Interim Condensed Consolidated Statements of Comprehensive Income (Loss) |
For the Three Months Ended September 30, 2014 and 2013 |
(Unaudited) |
Expressed in Thousands of US Dollars |
|
|
|
|
September 30, |
|
September 30, |
|
|
2014 |
|
2013 |
|
|
|
|
(Restated) |
|
|
|
Income (Loss) for the Period Attributable to the Shareholders of the Company |
$ |
519 |
|
$ |
(1,370 |
) |
Other Comprehensive Income (Loss), net of income taxes |
|
|
|
|
|
|
|
|
Items that may be reclassified subsequently to profit or loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gain (loss) on translation of foreign operations |
|
(607 |
) |
|
194 |
|
|
Unrealized gain (loss) on derivative financial instruments designated as cash flow hedges |
|
46 |
|
|
(67 |
) |
|
Other comprehensive income (loss), net of income taxes |
|
(561 |
) |
|
127 |
|
|
|
Comprehensive Loss Attributable to the Shareholders of the Company |
$ |
(42 |
) |
$ |
(1,243 |
) |
|
Opta Minerals Inc. |
|
Interim Condensed Consolidated Statements of Comprehensive Income (Loss) |
For the Nine Months Ended September 30, 2014 and 2013 |
(Unaudited) |
Expressed in Thousands of US Dollars |
|
|
September 30, |
|
September 30, |
|
|
2014 |
|
2013 |
|
|
|
|
|
|
(Restated |
) |
Income (Loss) for the Period Attributable to the Shareholders of the Company |
$ |
992 |
|
$ |
(1,152 |
) |
Other Comprehensive Income (Loss), net of income taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Items that may be reclassified subsequently to profit or loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gain (loss) on translation of foreign operations |
|
(460 |
) |
|
457 |
|
|
Unrealized gain on derivative financial instruments designated as cash flow hedges |
|
12 |
|
|
154 |
|
|
Other comprehensive income (loss), net of income taxes |
|
(448 |
) |
|
611 |
|
|
|
Comprehensive Income (Loss) Attributable to the Shareholders of the Company |
$ |
544 |
|
$ |
(541 |
) |
|
Opta Minerals Inc. |
|
Interim Condensed Consolidated Statements of Changes in Equity |
For the Nine Months Ended September 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 |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
992 |
|
|
992 |
|
|
Unrealized loss on translation of foreign operations |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(460 |
) |
|
- |
|
|
(460 |
) |
|
Unrealized gain on derivative financial instruments designated as cash flow hedges |
|
- |
|
|
- |
|
|
- |
|
|
12 |
|
|
- |
|
|
- |
|
|
12 |
|
Total Comprehensive Income (Loss) |
|
- |
|
|
- |
|
|
- |
|
|
12 |
|
|
(460 |
) |
|
992 |
|
|
544 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transactions with Shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee share purchase plan |
|
11,140 |
|
|
18 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
18 |
|
|
Share-based payment expense |
|
- |
|
|
- |
|
|
280 |
|
|
- |
|
|
- |
|
|
- |
|
|
280 |
|
Total Transactions with Shareholders |
|
11,140 |
|
|
18 |
|
|
280 |
|
|
- |
|
|
- |
|
|
- |
|
|
298 |
|
At September 30, 2014 |
|
18,122,387 |
|
$ |
17,900 |
|
$ |
4,638 |
|
$ |
(218 |
) |
$ |
(1,092 |
) |
$ |
29,272 |
|
$ |
50,500 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At January 1, 2013 |
|
18,084,559 |
|
$ |
17,822 |
|
$ |
3,925 |
|
$ |
(293 |
) |
$ |
(1,556 |
) |
$ |
28,461 |
|
$ |
48,359 |
|
Comprehensive Income (Loss)-restated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss for the period |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(1,152 |
) |
|
(1,152 |
) |
|
Unrealized gain on translation of foreign operations |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
457 |
|
|
- |
|
|
457 |
|
|
Unrealized gain on derivative financial instruments designated as cash flow hedges |
|
- |
|
|
- |
|
|
- |
|
|
154 |
|
|
- |
|
|
- |
|
|
154 |
|
Total Comprehensive Income (Loss) |
|
- |
|
|
- |
|
|
- |
|
|
154 |
|
|
457 |
|
|
(1,152 |
) |
|
(541 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transactions with Shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee share purchase plan |
|
13,347 |
|
|
36 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
36 |
|
|
Share options exercised |
|
8,077 |
|
|
15 |
|
|
(15 |
) |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
Share-based payment expense |
|
- |
|
|
- |
|
|
319 |
|
|
- |
|
|
- |
|
|
- |
|
|
319 |
|
Total Transactions with Shareholders |
|
21,424 |
|
|
51 |
|
|
304 |
|
|
- |
|
|
- |
|
|
- |
|
|
355 |
|
At September 30, 2013 |
|
18,105,983 |
|
$ |
17,873 |
|
$ |
4,229 |
|
$ |
(139 |
) |
$ |
(1,099 |
) |
$ |
27,309 |
|
$ |
48,173 |
|
*AOCI - Accumulated Other Comprehensive Income (Loss)
Opta Minerals Inc. |
|
Interim Condensed Consolidated Statements of Cash Flows |
For the Nine Months Ended September 30, 2014 and 2013 |
(Unaudited) |
Expressed in Thousands of US Dollars |
|
|
September 30, |
|
September 30, |
|
|
2014 |
|
2013 |
|
|
|
|
(Restated) |
|
Cash Provided by (Used in) - |
|
|
|
|
|
|
|
Operating Activities |
|
|
|
|
|
|
|
|
Income (loss) for the period |
$ |
992 |
|
$ |
(1,152 |
) |
|
|
|
|
Items not affecting cash: |
|
|
|
|
|
|
|
|
|
Depreciation of property, plant and equipment |
|
2,827 |
|
|
2,722 |
|
|
|
|
Amortization of intangible assets |
|
1,672 |
|
|
1,887 |
|
|
|
|
Goodwill and intangible asset write-downs |
|
- |
|
|
3,862 |
|
|
|
|
Property, plant and equipment write-downs |
|
180 |
|
|
- |
|
|
|
|
Share-based payment expense |
|
280 |
|
|
304 |
|
|
|
|
Loss (gain) on disposal of property, plant and equipment |
|
51 |
|
|
(8 |
) |
|
|
|
Fair value adjustments to contingent consideration |
|
221 |
|
|
(645 |
) |
|
|
|
Deferred income taxes |
|
(1,220 |
) |
|
(2,310 |
) |
|
|
5,003 |
|
|
4,660 |
|
|
|
Changes in non-cash working capital |
|
|
|
|
|
|
|
|
|
Trade receivables, other receivables and prepayments |
|
(7,631 |
) |
|
2,610 |
|
|
|
|
Inventories |
|
7,112 |
|
|
(7,099 |
) |
|
|
|
Trade and other payables |
|
1,445 |
|
|
1,977 |
|
|
|
|
Provisions |
|
140 |
|
|
40 |
|
|
|
|
Income taxes receivable |
|
(437 |
) |
|
(587 |
) |
|
|
5,632 |
|
|
1,601 |
|
|
Financing Activities |
|
|
|
|
|
|
|
|
Proceeds from issuance of common shares - net of issuance costs |
|
18 |
|
|
51 |
|
|
|
Proceeds from borrowings |
|
- |
|
|
5,464 |
|
|
|
Repayment of borrowings - net of deferred finance charges |
|
(3,379 |
) |
|
(3,847 |
) |
|
|
Repayment of finance lease liabilities |
|
(247 |
) |
|
(528 |
) |
|
|
(3,608 |
) |
|
1,140 |
|
|
Investing Activities |
|
|
|
|
|
|
|
|
Additions to property, plant and equipment |
|
(1,804 |
) |
|
(2,691 |
) |
|
|
Proceeds on disposal of property, plant and equipment |
|
25 |
|
|
15 |
|
|
|
Additions to intangible assets |
|
(56 |
) |
|
(111 |
) |
|
|
Acquisition of subsidiaries |
|
- |
|
|
(415 |
) |
|
|
Additional contingent consideration paid on acquisitions |
|
(260 |
) |
|
(296 |
) |
|
|
(2,095 |
) |
|
(3,498 |
) |
Effect of Foreign Exchange Gain (Loss) on Cash and Cash Equivalents |
|
(106 |
) |
|
19 |
|
|
|
Net Decrease in Cash and Cash Equivalents |
|
(177 |
) |
|
(738 |
) |
|
|
Cash and Cash Equivalents |
|
|
|
|
|
|
|
Beginning of Period |
|
4,084 |
|
|
3,966 |
|
|
End of Period |
$ |
3,907 |
|
$ |
3,228 |
|
|
Opta Minerals Inc. |
|
Interim Segmented Information |
For the Three Months Ended September 30, 2014 and 2013 |
(Unaudited) |
Expressed in Thousands of US Dollars |
|
|
|
|
Three Months Ended September 30, 2014 |
|
|
Steel and |
Industrial |
|
|
|
|
|
|
Magnesium |
Minerals |
|
Corporate |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
External revenue by market |
|
|
|
|
|
|
|
|
|
|
|
Canada |
$ |
3,733 |
$ |
3,032 |
|
$ |
- |
|
$ |
6,765 |
|
US |
|
14,885 |
|
6,818 |
|
|
- |
|
|
21,703 |
|
Europe |
|
2,911 |
|
2,637 |
|
|
- |
|
|
5,548 |
|
Other |
|
23 |
|
1,840 |
|
|
- |
|
|
1,863 |
|
Total revenue from external customers |
|
21,552 |
|
14,327 |
|
|
- |
|
|
35,879 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment income (loss) before corporate expenses, property, plant and equipment write-downs, fair value adjustments to contingent consideration, finance expense and income taxes |
|
2,948 |
|
(974 |
) |
|
- |
|
|
1,974 |
|
Property, plant and equipment write-downs |
|
- |
|
(180 |
) |
|
- |
|
|
(180 |
) |
Fair value adjustments to contingent consideration |
|
(115) |
|
- |
|
|
- |
|
|
(115 |
) |
Corporate expenses |
|
- |
|
- |
|
|
(1,247 |
) |
|
(1,247 |
) |
Segment income (loss) before finance expense and income taxes |
|
2,833 |
|
(1,154 |
) |
|
(1,247 |
) |
|
432 |
|
Finance expense |
|
- |
|
- |
|
|
- |
|
|
(1,035 |
) |
Income tax recovery |
|
- |
|
- |
|
|
- |
|
|
1,122 |
|
Income for the period |
|
- |
|
- |
|
|
- |
|
|
519 |
|
Depreciation of property, plant and equipment |
|
488 |
|
430 |
|
|
42 |
|
|
960 |
|
Amortization of intangible assets |
|
535 |
|
- |
|
|
20 |
|
|
555 |
|
Expenditures on property, plant and equipment |
$ |
627 |
$ |
145 |
|
$ |
71 |
|
$ |
843 |
|
|
Opta Minerals Inc. |
|
Interim Segmented Information |
For the Nine Months Ended September 30, 2014 and 2013 |
(Unaudited) |
Expressed in Thousands of US Dollars |
|
|
Nine Months Ended September 30, 2014 |
|
|
Steel and |
Industrial |
|
|
|
|
|
|
Magnesium |
Minerals |
|
Corporate |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
External revenue by market |
|
|
|
|
|
|
|
|
|
|
|
Canada |
$ |
10,822 |
$ |
8,401 |
|
$ |
- |
|
$ |
19,223 |
|
US |
|
39,794 |
|
21,650 |
|
|
- |
|
|
61,444 |
|
Europe |
|
9,854 |
|
8,960 |
|
|
- |
|
|
18,814 |
|
Other |
|
25 |
|
6,161 |
|
|
- |
|
|
6,186 |
|
Total revenue from external customers |
|
60,495 |
|
45,172 |
|
|
- |
|
|
105,667 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment income (loss) before corporate expenses, property, plant and equipment write-downs, fair value adjustments to contingent consideration, finance expense and income taxes |
|
8,434 |
|
(270 |
) |
|
- |
|
|
8,164 |
|
Property, plant and equipment write-downs |
|
- |
|
(180 |
) |
|
- |
|
|
(180 |
) |
Fair value adjustments to contingent consideration |
|
(221) |
|
- |
|
|
- |
|
|
(221 |
) |
Corporate expenses |
|
- |
|
- |
|
|
(5,000 |
) |
|
(5,000 |
) |
Segment income (loss) before finance expense and income taxes |
|
8,213 |
|
(450 |
) |
|
(5,000 |
) |
|
2,763 |
|
Finance expense |
|
- |
|
- |
|
|
- |
|
|
(2,783 |
) |
Income tax recovery |
|
- |
|
- |
|
|
- |
|
|
1,012 |
|
Income for the period |
|
- |
|
- |
|
|
- |
|
|
992 |
|
Total assets as at September 30, 2014 |
|
69,544 |
|
50,877 |
|
|
4,423 |
|
|
124,844 |
|
Depreciation of property, plant and equipment |
|
1,372 |
|
1,332 |
|
|
123 |
|
|
2,827 |
|
Amortization of intangible assets |
|
1,613 |
|
1 |
|
|
58 |
|
|
1,672 |
|
Goodwill and intangible assets as at September 30, 2014 |
|
37,903 |
|
617 |
|
|
112 |
|
|
38,632 |
|
Expenditures on property, plant and equipment |
$ |
1,455 |
$ |
272 |
|
$ |
77 |
|
$ |
1,804 |
|
|
Opta Minerals Inc. |
|
Interim Segmented Information |
For the Three Months Ended September 30, 2014 and 2013 |
(Unaudited) |
Expressed in Thousands of US Dollars |
|
|
Three Months Ended September 30, 2013 |
|
|
(Restated) |
|
|
Steel and |
Industrial |
|
|
|
|
|
|
Magnesium |
Minerals |
|
Corporate |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
External revenue by market |
|
|
|
|
|
|
|
|
|
|
|
Canada |
$ |
3,163 |
$ |
3,485 |
|
$ |
- |
|
$ |
6,648 |
|
US |
|
12,192 |
|
8,044 |
|
|
- |
|
|
20,236 |
|
Europe |
|
3,039 |
|
3,660 |
|
|
- |
|
|
6,699 |
|
Other |
|
12 |
|
1,332 |
|
|
- |
|
|
1,344 |
|
Total revenue from external customers |
|
18,406 |
|
16,521 |
|
|
- |
|
|
34,927 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment income (loss) before corporate expenses, goodwill and intangible asset write-downs, fair value adjustments to contingent consideration, finance expense and income taxes |
|
3,553 |
|
(337 |
) |
|
- |
|
|
3,216 |
|
Goodwill and intangible asset write-downs |
|
- |
|
(3,862 |
) |
|
- |
|
|
(3,862 |
) |
Fair value adjustments to contingent consideration |
|
571 |
|
- |
|
|
- |
|
|
571 |
|
Corporate expenses |
|
- |
|
- |
|
|
(1,564 |
) |
|
(1,564 |
) |
Segment income (loss) before finance expense and income taxes |
|
4,124 |
|
(4,199 |
) |
|
(1,564 |
) |
|
(1,639 |
) |
Finance expense |
|
- |
|
- |
|
|
- |
|
|
(854 |
) |
Income tax recovery |
|
- |
|
- |
|
|
- |
|
|
1,123 |
|
Loss for the period |
|
- |
|
- |
|
|
- |
|
|
(1,370 |
) |
Depreciation of property, plant and equipment |
|
421 |
|
473 |
|
|
50 |
|
|
944 |
|
Amortization of intangible assets |
|
535 |
|
45 |
|
|
41 |
|
|
621 |
|
Expenditures on property, plant and equipment |
$ |
263 |
$ |
332 |
|
$ |
66 |
|
$ |
661 |
|
|
Opta Minerals Inc. |
|
Interim Segmented Information |
For the Nine Months Ended September 30, 2014 and 2013 |
(Unaudited) |
Expressed in Thousands of US Dollars |
|
|
Nine Months Ended September 30, 2013 |
|
|
|
|
|
|
|
(Restated) |
|
|
Steel and |
Industrial |
|
|
|
|
|
|
Magnesium |
Minerals |
|
Corporate |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
External revenue by market |
|
|
|
|
|
|
|
|
|
|
|
Canada |
$ |
9,844 |
$ |
10,259 |
|
$ |
- |
|
$ |
20,103 |
|
US |
|
35,985 |
|
25,552 |
|
|
- |
|
|
61,537 |
|
Europe |
|
10,658 |
|
10,540 |
|
|
- |
|
|
21,198 |
|
Other |
|
12 |
|
5,764 |
|
|
- |
|
|
5,776 |
|
Total revenue from external customers |
|
56,499 |
|
52,115 |
|
|
- |
|
|
108,614 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment income (loss) before corporate expenses, goodwill and intangible asset write-downs, fair value adjustments to contingent consideration, finance expense and income taxes |
|
10,340 |
|
(1,577 |
) |
|
- |
|
|
8,763 |
|
Goodwill and intangible asset write-downs |
|
- |
|
(3,862 |
) |
|
- |
|
|
(3,862 |
) |
Fair value adjustments to contingent consideration |
|
645 |
|
- |
|
|
- |
|
|
645 |
|
Corporate expenses |
|
- |
|
- |
|
|
(4,598 |
) |
|
(4,598 |
) |
Segment income (loss) before finance expense and income taxes |
|
10,985 |
|
(5,439 |
) |
|
(4,598 |
) |
|
948 |
|
Finance expense |
|
- |
|
- |
|
|
- |
|
|
(2,968 |
) |
Income tax recovery |
|
- |
|
- |
|
|
- |
|
|
868 |
|
Loss for the period |
|
- |
|
- |
|
|
- |
|
|
(1,152 |
) |
Total assets as at September 30, 2013 |
|
67,327 |
|
62,197 |
|
|
4,346 |
|
|
133,870 |
|
Depreciation of property, plant and equipment |
|
1,151 |
|
1,420 |
|
|
151 |
|
|
2,722 |
|
Amortization of intangible assets |
|
1,613 |
|
138 |
|
|
136 |
|
|
1,887 |
|
Goodwill and intangible assets as at September 30, 2013 |
|
41,874 |
|
1,058 |
|
|
139 |
|
|
43,071 |
|
Expenditures on property, plant and equipment |
$ |
1,389 |
$ |
1,077 |
|
$ |
225 |
|
$ |
2,691 |
|
|
|