|
WATERDOWN, ONTARIO--(Marketwired - Nov 11, 2015) -
Opta Minerals Inc. (
OPM.TO
), today announced results for the three and nine months ended
September 30, 2015. All figures are reported in U.S. dollars and
are in accordance with International Financial Reporting
Standards (IFRS), except where otherwise noted.
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3 months
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3 months
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9 months
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9 months
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ended
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ended
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ended
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ended
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Sept 30,
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Sept 30,
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Increase
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Sept 30,
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Sept 30,
|
Increase
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2015
|
2014
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(Decrease)
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%
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2015
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|
2014
|
(Decrease)
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%
|
|
|
|
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|
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|
Revenue |
$
|
28,784
|
$
|
35,879
|
$ |
(7,095 |
) |
-19.8% |
$
|
87,915
|
|
$
|
105,667
|
$ |
(17,752 |
) |
-16.8% |
Gross Profit |
|
4,269
|
|
5,275
|
|
(1,006 |
) |
-19.1% |
|
11,730
|
|
|
16,683
|
|
(4,953 |
) |
-29.7% |
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14.8%
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14.7%
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|
0.1%
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|
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13.3%
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15.8%
|
|
-2.5%
|
|
|
EBITDA
1 |
|
3,205
|
|
2,242
|
|
963 |
|
43.0% |
|
4,606
|
|
|
7,663
|
|
(3,057 |
) |
-39.9% |
EBIT
2 |
|
1,815
|
|
432
|
|
1,383 |
|
320.1% |
|
356
|
|
|
2,763
|
|
(2,407 |
) |
-87.1% |
Income (Loss) |
|
686
|
|
519
|
|
167 |
|
32.2% |
|
(4,342
|
)
|
|
992
|
|
(5,334 |
) |
-537.7% |
EPS |
$
|
0.04
|
$
|
0.03
|
$ |
0.01 |
|
|
$
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(0.24
|
)
|
$
|
0.05
|
$ |
(0.29 |
) |
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1
EBITDA is a non-IFRS measure: refer to Footnotes |
2
EBIT is a non-IFRS measure; refer to Footnotes |
|
Bernhard Rumbold, Interim President and CEO of Opta Minerals,
noted, "The Company continues with restructuring the business and
we have seen improvements from our efforts. We are continuing to
work at closing unprofitable locations, reducing costs,
simplifying operations and improving the balance sheet by
reducing inventory thereby improving liquidity. We are striving
to have our restructuring work substantially complete by the end
of the year.
Markets remain soft but slightly better than the first half of
the year. We will continue to invest in people and capital within
Steel and Magnesium and within segments of Industrial Minerals,
such as garnet, where we believe we have a competitive advantage
and can earn superior returns.
We continue to pursue strategic alternatives for the Company.
We will be holding off on the recruitment of a permanent CEO
until this matter is closed."
Operational and Financial Highlights:
- On a consolidated basis revenues for the quarter have
fallen 19.8% from $35.9 million to $28.8 million. On a year to
date basis revenues have fallen 16.8% from $105.7 million to
$87.9 million. Excluding the effects of exchange rate movements
in the Canadian dollar and Euro against the U.S. dollar,
revenues have fallen in the quarter and year to date 8.4% and
7.4%, respectively. The balance of the shortfall is primarily
due to lower volumes sold to existing customers due to a
general market slowdown in the steel industry and in other
markets we serve. Excluding the current quarter foreign
exchange gain and the comparative prior year quarter foreign
exchange loss, adjusted EBIT would be similar.
- Third quarter revenue in the Steel and Magnesium segment
decreased 15.5% from the comparable quarter in 2014. On a year
to date basis revenues have decreased 11.3% over the comparable
period in 2014. Excluding the effects of exchange rate
movements, revenues have fallen 9.2% and 6.9% versus the
previous quarter and year to date, respectively. The Steel and
Magnesium segment continues to be impacted by a slow down in
the steel industry affecting our throughput to customers.
- The Industrial Minerals segment revenue decreased
approximately 26.2% in the quarter and 24.2% year to date. The
decline is partially due to restructuring as we eliminate
locations and product lines that do not provide an adequate
return and partially due to the exchange rate movements noted
earlier. The Company remains focused on its restructuring
efforts along with focused growth in key areas of the business
such as garnet.
- Gross profit includes charges of approximately $422 in the
quarter and $1.2 million year to date for inventory reserves
and expected remediation costs related to the closure of
facilities and the liquidation of certain inventories.
Excluding these costs, gross margins are 16.3% for the quarter
and 14.7% for the year to date, respectively. Margins have also
been impacted by lower sales prices to liquidate inventory and
lower volumes affecting plant utilization.
- Selling, general and administrative expenses (SGA) were
$3,308 or 11.5% as a percent of revenues, compared to $4,132 or
11.5% of revenues in the prior year quarter. On a year to date
basis SGA is $11,454 or 13.0% of revenues compared to $12,738
or 12.1% for the comparable period in 2014. Year to date SGA
includes severance and other costs related to restructuring as
well as other one time items totaling approximately $1.1
million. Excluding these items, SGA is 11.7% for the year. SGA
is impacted by the strengthening US dollar with corporate costs
primarily in Canadian dollars and cost reductions which have
occurred during the year. The Company is targeting 10% SGA as a
percent of revenues.
- Results include non-cash foreign exchange gains of $991 in
the current quarter compared to foreign exchange losses of $416
in the prior year comparative quarter. Foreign exchange gains
were $526 on a year to date basis as compared to $781 in losses
in the previous year. These were driven by fluctuations in the
US dollar against both the Canadian dollar and Euro.
- Working capital, excluding the reclassification of
long-term borrowings of $23.5 million, at September 30, 2015
amounted to $17.8 million and total assets were $97.2 million,
as compared to $21.8 million and $117.7 million, respectively,
at December 31, 2014. Working capital is considerably lower
than December 31, 2014 driven by the Company's efforts to
significantly lower inventories.
- Long-term borrowings of $23.5 million have been
reclassified to current borrowings as a result of the default
of certain financial covenants stipulated under the Company's
credit agreement. Subsequent to September 30, 2015, the Company
obtained a waiver in respect of the covenant default from the
syndicate of banks. As consideration for the waiver the Company
is to comply with certain additional financial covenants. The
syndicate of banks again extended the maturity date of the
revolving credit facility from October 2, 2015 to November 30,
2015.
- The Company will require the continued support from its
current financial lenders and, effective December 1, 2015, Opta
Minerals will require a further extension of its revolving term
credit facility and an additional waiver of financial
covenants, if breached, or an alternative source of financing.
Failure to meet financial covenants or repay the revolving
credit facility on maturity would constitute an event of
default under the credit agreement, unless the lenders agree to
a waiver or further amendment. The Company believes that it
will comply with the additional financial covenants and that an
extension is likely, but there can be no assurance that it will
be provided or that alternative sources of financing on terms
favourable to the Company could be obtained. The limited
extension of the revolving term credit facility to November 30,
2015 has required the inclusion of additional disclosure in the
Company's interim condensed consolidated financial statements
as at and for the three and nine-month periods ended September
30, 2015.
- The debt to equity ratio at September 30, 2015 was 0.89 to
1.00, and at December 31, 2014 was 1.00 to 1.00.
For further details, please refer to the Company's interim
condensed consolidated financial statements and related
Management's Discussion and Analysis.
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 / or distribution facilities in Ontario, Quebec,
Saskatchewan, Louisiana, South Carolina, Virginia, Maryland,
Indiana, Michigan, New York, Texas, Florida, Ohio, Idaho, France,
Slovakia and Germany.
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.
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For the three
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For the nine
|
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Months Ended
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|
Months Ended
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Sept 30
|
|
Sept 30
|
|
|
2015
|
2014
|
|
2015
|
|
2014
|
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|
$
|
$
|
|
$
|
|
$
|
|
|
|
|
|
|
|
|
|
Income (Loss) for the Period
|
686 |
519 |
|
(4,342 |
) |
992 |
|
Finance Expense |
873 |
1,035 |
|
3,565 |
|
2,783 |
|
Income Tax Expense (Recovery) |
256 |
(1,122 |
) |
1,133 |
|
(1,012 |
) |
Depreciation and Amortization |
1,253 |
1,515 |
|
3,804 |
|
4,499 |
|
Property, Plant and Equipment Write-down |
- |
180 |
|
495 |
|
180 |
|
Fair Value Adjustments to Contingent Consideration |
137 |
115 |
|
(49 |
) |
221 |
|
|
|
|
|
|
|
|
|
EBITDA
1
|
3,205
|
2,242
|
|
4,606
|
|
7,663
|
|
Subtract: |
|
|
|
|
|
|
|
Depreciation and Amortization |
1,253 |
1,515 |
|
3,804 |
|
4,499 |
|
Property, Plant and Equipment Write-down |
- |
180 |
|
495 |
|
180 |
|
Fair Value Adjustments to Contingent Consideration |
137 |
115 |
|
(49 |
) |
221 |
|
|
|
|
|
|
|
|
|
EBIT
2
|
1,815
|
432
|
|
356
|
|
2,763
|
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|
|
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|
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Notes
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|
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 restructuring
activities and the anticipated benefits to be derived therefrom;
the expected timing for the completion of the Company's
restructuring activities; and proposed investments in people and
capital within the Steel and Magnesium Group and certain segments
of the Infrastructure Group. 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 September 30, 2015 and December 31,
2014
|
|
(Unaudited)
|
|
Expressed in Thousands of US Dollars (except per
share amounts and number of shares)
|
|
|
|
|
September 30,
2015
|
|
December 31,
2014 |
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
Current
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$
|
1,626
|
|
$ |
2,170 |
|
|
Trade receivables, other receivables and
prepayments |
|
18,153
|
|
|
20,236 |
|
|
Inventories |
|
25,432
|
|
|
34,486 |
|
|
Income taxes receivable |
|
907
|
|
|
996 |
|
|
|
46,118
|
|
|
57,888 |
|
Property, Plant and Equipment
|
|
18,676
|
|
|
21,926 |
|
Intangible Assets
|
|
23,829
|
|
|
26,827 |
|
Goodwill
|
|
8,574
|
|
|
9,447 |
|
Deferred Income Tax Assets
|
|
-
|
|
|
1,645 |
|
|
$
|
97,197
|
|
$ |
117,733 |
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
Current
|
|
|
|
|
|
|
|
Trade and other payables |
$
|
11,814
|
|
$ |
17,216 |
|
|
Borrowings |
|
38,072
|
|
|
17,492 |
|
|
Derivative financial instruments |
|
390
|
|
|
- |
|
|
Provisions |
|
839
|
|
|
772 |
|
|
Other liabilities |
|
245
|
|
|
492 |
|
|
Income taxes payable |
|
456
|
|
|
136 |
|
|
|
51,816
|
|
|
36,108 |
|
Borrowings
|
|
148
|
|
|
30,103 |
|
Derivative Financial Instruments
|
|
-
|
|
|
285 |
|
Provisions
|
|
572
|
|
|
447 |
|
Other Liabilities
|
|
21
|
|
|
242 |
|
Deferred Income Tax Liabilities
|
|
1,841
|
|
|
3,040 |
|
|
|
54,398
|
|
|
70,225 |
|
Equity Attributable to the Shareholders of the
Company
|
|
|
|
|
|
|
Capital Stock
|
|
|
|
|
|
|
|
Authorized without limit as to number - |
|
|
|
|
|
|
|
|
Preference shares (without par value) |
|
|
Common shares |
|
Issued - |
|
|
|
|
|
|
|
|
18,129,566 common shares (December 31, 2014 -
18,125,164) |
|
17,911
|
|
|
17,905 |
|
Contributed Surplus
|
|
4,839
|
|
|
4,696 |
|
Accumulated Other Comprehensive Loss
|
|
(2,007
|
)
|
|
(1,491 |
) |
Retained Earnings
|
|
22,056
|
|
|
26,398 |
|
|
|
42,799
|
|
|
47,508 |
|
|
$
|
97,197
|
|
$ |
117,733 |
|
|
|
|
|
|
|
|
|
Opta Minerals Inc.
|
|
Interim Condensed Consolidated Statements of
Income (Loss)
|
For the Three Months Ended September 30, 2015 and
2014
|
(Unaudited)
|
Expressed in Thousands of US Dollars (except per
share amounts)
|
|
|
September 30,
2015
|
|
September 30,
2014 |
|
|
|
|
|
|
Revenue
|
$
|
28,784
|
|
$ |
35,879 |
|
|
|
|
|
|
|
|
Cost of Goods Sold
|
|
24,515
|
|
|
30,604 |
|
|
|
|
|
|
|
|
Gross Profit
|
|
4,269
|
|
|
5,275 |
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative |
|
3,308
|
|
|
4,132 |
|
|
Property, plant and equipment write-downs |
|
-
|
|
|
180 |
|
|
Fair value adjustments to contingent consideration |
|
137
|
|
|
115 |
|
|
Foreign exchange (gain) loss |
|
(991
|
)
|
|
416 |
|
|
|
2,454
|
|
|
4,843 |
|
|
|
|
|
|
|
|
Income
Before Finance Expense and Income Taxes
|
|
1,815
|
|
|
432 |
|
|
|
|
|
|
|
|
Finance expense |
|
873
|
|
|
1,035 |
|
|
|
|
|
|
|
|
Income (Loss) Before Income Taxes |
|
942
|
|
|
(603 |
) |
|
|
|
|
|
|
|
Income tax expense (recovery) |
|
256
|
|
|
(1,122 |
) |
|
|
|
|
|
|
|
Income
for the Period Attributable to the Shareholders
of the Company
|
$
|
686
|
|
$ |
519 |
|
|
|
|
|
|
|
|
Earnings per share for the period - basic and
diluted |
$
|
0.04
|
|
$ |
0.03 |
|
|
|
|
|
|
|
|
|
|
Opta Minerals Inc.
|
|
|
|
Interim Condensed Consolidated Statements of
(Loss) Income
|
|
For the Nine Months Ended September 30, 2015 and
2014
|
|
(Unaudited)
|
|
Expressed in Thousands of US Dollars (except per
share amounts)
|
|
|
|
|
September 30,
2015
|
|
September 30,
2014 |
|
|
|
|
|
|
Revenue
|
$
|
87,915
|
|
$ |
105,667 |
|
|
|
|
|
|
|
|
Cost of Goods Sold
|
|
76,185
|
|
|
88,984 |
|
|
|
|
|
|
|
|
Gross Profit
|
|
11,730
|
|
|
16,683 |
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative |
|
11,454
|
|
|
12,738 |
|
|
Property, plant and equipment write-downs |
|
495
|
|
|
180 |
|
|
Fair value adjustments to contingent consideration |
|
(49
|
)
|
|
221 |
|
|
Foreign exchange (gain) loss |
|
(526
|
)
|
|
781 |
|
|
|
11,374
|
|
|
13,920 |
|
|
|
|
|
|
|
|
Income
Before Finance Expense and Income Taxes
|
|
356
|
|
|
2,763 |
|
|
|
|
|
|
|
|
Finance expense |
|
3,565
|
|
|
2,783 |
|
|
|
|
|
|
|
|
Loss Before Income Taxes |
|
(3,209
|
)
|
|
(20 |
) |
|
|
|
|
|
|
|
Income tax expense (recovery) |
|
1,133
|
|
|
(1,012 |
) |
|
|
|
|
|
|
|
Income (Loss)
for the Period Attributable to the Shareholders
of the Company
|
$
|
(4,342
|
)
|
$ |
992 |
|
|
|
|
|
|
|
|
Earnings (Loss) per share for the period -
basic and diluted |
$
|
(0.24
|
)
|
$ |
0.05 |
|
|
|
|
|
|
|
|
|
|
Opta Minerals Inc.
|
|
|
|
Interim Condensed Consolidated Statements of
Comprehensive Income (Loss)
|
|
For the Three Months Ended September 30, 2015 and
2014
|
|
(Unaudited)
|
|
Expressed in Thousands of US Dollars
|
|
|
|
|
September 30,
2015
|
September 30,
2014 |
|
|
|
|
|
Income for the Period Attributable to the
Shareholders of the Company
|
$
|
686
|
$ |
519 |
|
|
|
|
|
|
|
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 |
|
16
|
|
(607 |
) |
|
Unrealized gain on derivative financial instruments
designated as cash flow hedges |
|
4
|
|
46 |
|
|
Ineffective portion of derivative financial
instruments |
|
44
|
|
- |
|
|
Other comprehensive income (loss), net of income taxes |
|
64
|
|
(561 |
) |
|
|
|
|
|
|
Comprehensive Income (Loss) Attributable to the
Shareholders of the Company
|
$
|
750
|
$ |
(42 |
) |
|
|
|
|
|
|
|
Opta Minerals Inc.
|
|
Interim Condensed Consolidated Statements of
Comprehensive (Loss) Income
|
For the Nine Months Ended September 30, 2014 and
2013
|
(Unaudited)
|
Expressed in Thousands of US Dollars
|
|
|
September 30,
2015
|
September 30,
2014 |
|
|
|
Income (Loss) for the Period Attributable to the
Shareholders of the Company
|
$
|
(4,342)
|
$ |
992 |
|
|
|
|
|
Other Comprehensive (Loss) Income, net of income
taxes
|
|
|
|
|
|
|
|
|
|
|
Items that may be reclassified subsequently to
profit or loss
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized loss on translation of foreign operations |
|
(726)
|
|
(460) |
|
Unrealized (loss) gain on derivative financial instruments
designated as cash flow hedges |
|
(125)
|
|
12 |
|
Ineffective portion of derivative financial
instruments |
|
335
|
|
- |
|
Other comprehensive loss, net of income taxes |
|
(516)
|
|
(448) |
|
|
|
|
|
Comprehensive (Loss) Income Attributable to the
Shareholders of the Company
|
$
|
(4,858)
|
$ |
544 |
|
|
|
|
|
null
|
Opta Minerals Inc.
|
|
Interim Condensed Consolidated Statements of
Changes in Equity
|
For the Nine Months Ended September 30, 2015 and
2014
|
(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, 2015
|
18,125,164
|
$
|
17,905
|
$
|
4,696
|
$
|
(210)
|
$
|
(1,281)
|
$
|
26,398
|
$
|
47,508
|
Comprehensive Loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss for the period |
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(4,342)
|
|
(4,342)
|
Unrealized loss on translation of foreign operations |
-
|
|
-
|
|
-
|
|
-
|
|
(726)
|
|
-
|
|
(726)
|
Unrealized loss on derivative financial instruments
designated as cash flow hedges |
-
|
|
-
|
|
-
|
|
(125)
|
|
-
|
|
-
|
|
(125)
|
Ineffective portion of derivative financial
instruments |
-
|
|
-
|
|
-
|
|
335
|
|
-
|
|
-
|
|
335
|
Total Comprehensive (Loss) Income
|
-
|
|
-
|
|
-
|
|
210
|
|
(726)
|
|
(4,342)
|
|
(4,858)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transactions with Shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee share purchase plan |
4,402
|
|
6
|
|
-
|
|
-
|
|
-
|
|
-
|
|
6
|
Share-based payment expense |
-
|
|
-
|
|
143
|
|
-
|
|
-
|
|
-
|
|
143
|
Total Transactions with Shareholders
|
4,402
|
|
6
|
|
143
|
|
-
|
|
-
|
|
-
|
|
149
|
At September 30, 2015
|
18,129,566
|
$
|
17,911
|
$
|
4,839
|
$
|
-
|
$
|
(2,007)
|
$
|
22,056
|
$
|
42,799
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 gain on translation of foreign operations |
- |
|
- |
|
- |
|
- |
|
(460) |
|
- |
|
(460) |
Unrealized loss 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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*AOCI - Accumulated Other Comprehensive Income |
|
|
|
Opta Minerals Inc. |
|
|
|
Interim Condensed Consolidated Statements of Cash Flows |
|
For the Nine Months Ended September 30, 2015 and 2014 |
|
(Unaudited) |
|
Expressed in Thousands of US Dollars (except per share amounts and number of shares) |
|
|
|
|
September 30,
2015 |
|
September 30,
2014 |
|
|
|
|
|
|
Cash Provided by (Used in) - |
|
|
|
|
|
|
|
Operating Activities |
|
|
|
|
|
|
|
|
Income (loss) for the period |
$ |
(4,342 |
) |
$ |
992 |
|
|
|
|
|
|
|
|
|
|
Items not affecting cash: |
|
|
|
|
|
|
|
|
|
Depreciation of property, plant and equipment |
|
2,299 |
|
|
2,827 |
|
|
|
|
Amortization of intangible assets |
|
1,505 |
|
|
1,672 |
|
|
|
|
Property, plant and equipment write-down |
|
495 |
|
|
180 |
|
|
|
|
Share-based payment expense |
|
143 |
|
|
280 |
|
|
|
|
Loss (gain) on disposal of property, plant and equipment |
|
(4 |
) |
|
51 |
|
|
|
|
Fair value adjustments to contingent consideration |
|
(49 |
) |
|
221 |
|
|
|
|
Non-cash interest charges |
|
920 |
|
|
- |
|
|
|
|
Deferred income taxes |
|
553 |
|
|
(1,220 |
) |
|
|
1,520 |
|
|
5,003 |
|
|
|
Changes in non-cash working capital |
|
|
|
|
|
|
|
|
|
Trade receivables, other receivables and prepayments |
|
698 |
|
|
(7,631 |
) |
|
|
|
Inventories |
|
7,383 |
|
|
7,112 |
|
|
|
|
Trade and other payables |
|
(4,554 |
) |
|
1,445 |
|
|
|
|
Provisions |
|
225 |
|
|
140 |
|
|
|
|
Income taxes receivable (payable) |
|
443 |
|
|
(437 |
) |
|
|
5,715 |
|
|
5,632 |
|
|
Financing Activities |
|
|
|
|
|
|
|
|
Proceeds from issuance of common shares - net of issuance costs |
|
6 |
|
|
18 |
|
|
|
Repayment of borrowings |
|
(4,713 |
) |
|
(3,379 |
) |
|
|
Repayment of finance lease liabilities |
|
(267 |
) |
|
(247 |
) |
|
|
(4,974 |
) |
|
(3,608 |
) |
|
Investing Activities |
|
|
|
|
|
|
|
|
Additions to property, plant and equipment |
|
(905 |
) |
|
(1,804 |
) |
|
|
Proceeds on disposal of property, plant and equipment |
|
115 |
|
|
25 |
|
|
|
Additions to intangible assets |
|
(42 |
) |
|
(56 |
) |
|
|
Additional contingent consideration paid on acquisitions |
|
(393 |
) |
|
(260 |
) |
|
|
(1,225 |
) |
|
(2,095 |
) |
|
|
|
|
|
|
|
Effect of Foreign Exchange Loss on Cash and Cash Equivalents |
|
(60 |
) |
|
(106 |
) |
|
|
|
|
|
|
|
Net Decrease in Cash and Cash Equivalents |
|
(544 |
) |
|
(177 |
) |
|
|
|
|
|
|
|
Cash and Cash Equivalents |
|
|
|
|
|
|
|
Beginning of Period |
|
2,170 |
|
|
4,084 |
|
|
End of Period |
$ |
1,626 |
|
$ |
3,907 |
|
|
|
|
|
|
|
|
|
Opta Minerals Inc. |
|
Interim Segmented Information |
For the Three Months Ended September 30, 2015 and 2014 |
(Unaudited) |
Expressed in Thousands of US Dollars |
|
|
Three Months Ended September 30,2015 |
|
|
|
|
|
|
|
|
|
|
|
Steel and |
|
Industrial |
|
|
|
|
|
|
Magnesium |
|
Minerals |
|
Corporate |
|
Total |
|
|
|
|
|
|
|
|
|
|
External revenue by market |
|
|
|
|
|
|
|
|
|
|
|
|
Canada |
$ |
2,860 |
|
$ |
2,409 |
|
$ |
- |
|
$ |
5,269 |
|
US |
|
12,979 |
|
|
4,660 |
|
|
- |
|
|
17,639 |
|
Europe |
|
2,282 |
|
|
2,105 |
|
|
- |
|
|
4,387 |
|
Other |
|
87 |
|
|
1,402 |
|
|
- |
|
|
1,489 |
|
Total revenue from external customers |
|
18,208 |
|
|
10,576 |
|
|
- |
|
|
28,784 |
|
Segment income (loss) before corporate expenses, property, fair value adjustments to contingent consideration, finance expense and income taxes |
|
3,405 |
|
|
(1,229 |
) |
|
- |
|
|
2,176 |
|
Fair value adjustments to contingent consideration |
|
(137 |
) |
|
- |
|
|
- |
|
|
(137 |
) |
Corporate expenses and foreign exchange gain (loss) |
|
- |
|
|
- |
|
|
(224 |
) |
|
(224 |
) |
Segment income (loss) before finance expense and income taxes |
|
3,268 |
|
|
(1,229 |
) |
|
(224 |
) |
|
1,815 |
|
Finance expense |
|
- |
|
|
- |
|
|
- |
|
|
(873 |
) |
Income tax expense |
|
- |
|
|
- |
|
|
- |
|
|
(256 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income for the period |
|
- |
|
|
- |
|
|
- |
|
|
686 |
|
Depreciation of property, plant and equipment |
|
460 |
|
|
267 |
|
|
28 |
|
|
755 |
|
Amortization of intangible assets |
|
476 |
|
|
4 |
|
|
18 |
|
|
498 |
|
Expenditures on property, plant and equipment |
$ |
217 |
|
$ |
224 |
|
$ |
- |
|
$ |
441 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Opta Minerals Inc. |
|
Interim Segmented Information |
For the Nine Months Ended September 30, 2015 and 2014 |
(Unaudited) |
Expressed in Thousands of US Dollars |
|
Nine Months Ended September 30, 2015 |
|
|
|
|
|
|
|
|
|
|
Steel and |
Industrial |
|
|
|
|
|
|
Magnesium |
Minerals |
|
Corporate |
|
Total |
|
External revenue by market |
|
|
|
|
|
|
|
|
|
|
|
Canada |
$ |
8,938 |
$ |
7,274 |
|
$ |
- |
|
$ |
16,212 |
|
US |
|
37,450 |
|
14,919 |
|
|
- |
|
|
52,369 |
|
Europe |
|
7,010 |
|
6,506 |
|
|
- |
|
|
13,516 |
|
Other |
|
256 |
|
5,562 |
|
|
- |
|
|
5,818 |
|
Total revenue from external customers |
|
53,654 |
|
34,261 |
|
|
- |
|
|
87,915 |
|
Segment income (loss) before corporate expenses, property, plant and equipment write-downs, fair value adjustments to contingent consideration, finance expense and income taxes |
|
7,074 |
|
(3,085 |
) |
|
- |
|
|
3,989 |
|
Property, plant and equipment write-downs |
|
- |
|
(495 |
) |
|
- |
|
|
(495 |
) |
Fair value adjustments to contingent consideration |
|
49 |
|
- |
|
|
- |
|
|
49 |
|
Corporate expenses and foreign exchange gain (loss) |
|
- |
|
- |
|
|
(3,187 |
) |
|
(3,187 |
) |
Segment income (loss) before finance expense and income taxes |
|
7,123 |
|
(3,580 |
) |
|
(3,187 |
) |
|
356 |
|
Finance expense |
|
- |
|
- |
|
|
- |
|
|
(3,565 |
) |
Income tax expense |
|
- |
|
- |
|
|
- |
|
|
(1,133 |
) |
Loss for the period |
|
- |
|
- |
|
|
- |
|
|
(4,342 |
) |
Total assets as at September 30, 2015 |
|
57,280 |
|
37,960 |
|
|
1,957 |
|
|
97,197 |
|
Depreciation of property, plant and equipment |
|
1,399 |
|
808 |
|
|
92 |
|
|
2,299 |
|
Amortization of intangible assets |
|
1,443 |
|
4 |
|
|
58 |
|
|
1,505 |
|
Goodwill and intangible assets as at September 30, 2015 |
|
32,327 |
|
- |
|
|
76 |
|
|
32,403 |
|
Expenditures on property, plant and equipment |
$ |
375 |
$ |
517 |
|
$ |
13 |
|
$ |
905 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Opta Minerals Inc. |
|
Interim Segmented Information |
For the Three Months Ended September 30, 2015 and 2014 |
(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 and foreign exchange gain (loss) |
|
- |
|
|
- |
|
|
(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, 2015 and 2014 |
(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 and foreign exchange gain (loss) |
|
- |
|
|
- |
|
|
(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 expense |
|
- |
|
|
- |
|
|
- |
|
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|