Opta Minerals Inc. Reports First Quarter Results for Fiscal 2012 by 24hgold

WATERDOWN, ONTARIO--(Marketwire - May 9, 2012) - Opta Minerals Inc. (News - Market indicators), today announced results for the three months ended March 31, 2012. All figures are reported in U.S. dollars and are in accordance with International Financial Reporting Standards (IFRS), except where otherwise noted.

Financial Highlights (presented in $000s USD except per share amounts):

	3 months	3 months
	ended	ended
	March 31,	March 31,	Increase
	2012	2011	(Decrease)	%

Revenue	$28,332	$21,606	$6,726	31.1%
Gross Profit	6,247	5,187	1,060	20.4%
	22.1%	24.0%	(1.9%)
EBITDA¹	4,147	3,460	687	19.9%
EBIT²	2,851	2,444	407	16.7%
Net Earnings	1,510	1,423	87	6.1%
EPS	$0.08	$0.08	$0.00

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 "During the first quarter, Opta Minerals experienced record revenue growth over the comparable period in 2011. Strong earnings in the steel sector were slightly offset by marginal results in the industrial minerals sector. Results improved in both sectors quarter over quarter. We have continued to manage production to demand while focussing on our cost structure. We remain cautiously optimistic with the direction of the economic environment in our business."

Operational Highlights:

Revenue in the Mill and Foundry Products and Services segment increased 38.7% over the comparable quarter in 2011 due largely to the demand for lime blends and the acquisition of Babco Industrial Corp. Revenue in the Abrasive Products Manufacturing and Distribution segment increased 9.1% over the comparable quarter in 2011 due to an increase in demand for metallurgical slags.
Gross profit increased quarter over quarter. Gross profit as a percentage of revenue has declined as a result of some weakness in the industrial minerals sector and product mix.
Selling, general and administrative expenses (SGA) decreased to 12.8% of revenue for the first quarter of 2012 from 14.8% for the comparable quarter in 2011. Most of the decrease was a result of managing our cost structure from initiatives implemented over the past few years.
Net earnings for the first quarter increased 6.1% over the comparable quarter in 2011. Most of the increase was the result of improved demand and volumes in both segments.
The foreign exchange gain was $0.2 million for the quarter as compared to $0.4 million for same quarter in 2011.
For the three months ended March 31, 2012, cash flow from operating activities before changes in working capital generated $2.7 million versus $2.5 million in the first quarter of 2011. The positive cash flow was used to finance working capital.
During the first quarter, the Company purchased 100% of the shares in Babco Industrial Corp., a Saskatchewan Company, for $17.5 million in cash plus contingent consideration based on the achievement of certain future earnings targets. The purchase was financed through a bank term loan acquisition facility.
The Company's working capital at March 31, 2012 amounted to $13.8 million and total assets were $120.7 million, as compared to $14.7 million and $92.4 million respectively at December 31, 2011.
The debt-to-equity ratio at March 31, 2012 was 1.08 to 1.00, versus 0.65 to 1.00 at December 31, 2011.

Opta Minerals President and CEO, David Kruse, plans to host a conference call at 10:00AM Eastern Standard Time on Friday, May 11^th, 2012 to discuss first quarter 2012 results and recent corporate developments. After opening remarks, there will be a question and answer period. This conference call can be accessed with the toll free dial-in number 1-(866) 321-8231 or 1-(416) 642-5213; quote confirmation code 4703879. If you are unable to listen live, the conference call will be archived and can be accessed between May 11^th, 2012 and May 18^th, 2012, with the toll free dial-in number 1-(888) 203-1112 or 1-(647) 436-0148 followed by pass code 4703879.

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, France and Slovakia. 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
	March 31
	2012	2011
	$	$

Net Earnings for the Period	1,510	1,423
Finance Expense	656	413
Provision for Income Taxes	685	608
Depreciation and Amortization	1,296	1,016

EBITDA¹	4,147	3,460
Subtract:
Depreciation and Amortization	1,296	1,016

EBIT²	2,851	2,444

Notes

1)		The term "EBITDA" refers to earnings before deducting interest expense, provision for 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 asset depreciation. 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 interest 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 prio r 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.

This press release may contain "forward looking 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, cancellations of or the failure to renew purchase orders; production and delivery issues; quality, pricing and availability of raw materials; compliance with environmental regulations; exchange rate fluctuations as well as the other risks identified in the "Risk Factors" section of 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 Consolidated Balance Sheets As At March 31, 2012
(Unaudited)
Expressed in Thousands of US Dollars (except per share amounts and number of shares)

			March 31,	December 31,
			2012		2011

Assets
Current
	Cash and cash equivalents	$	1,429	$	698
	Trade and other receivables		15,604		12,515
	Inventories		23,079		21,589
			40,112		34,802
Property, Plant and Equipment			24,894		19,848
Intangible Assets			36,437		27,319
Goodwill			14,343		6,680
Deferred Income Tax Assets			4,907		3,793
		$	120,693	$	92,442
Liabilities
Current
	Trade and other payables		9,196		7,123
	Borrowings		15,517		11,026
	Derivative financial instrument		64		256
	Provisions		330		1,015
	Other liabilities		659		444
	Income taxes payable		535		168
	Preference shares		47		46
			26,348		20,078
Borrowings			32,452		16,526
Derivative Financial Instrument			235		-
Other Liabilities			1,880		1,481
Deferred Income Tax Liabilities			4,439		3,192
Deferred Income Tax Liability on Intangible Assets			11,016		8,650
			76,370		49,927
Equity Attributable to the Shareholders of the Company
Capital Stock
	Authorized without limit as to number -
	Preference shares (without par value)
	common shares
	Issued -
	18,064,642 common shares (December 31, 2011 - 18,061,784)		17,686		17,680
Contributed Surplus			3,630		3,429
Accumulated Other Comprehensive Loss			(2,044)		(2,135)
Retained Earnings			25,051		23,541
			44,323		42,515
		$	120,693	$	92,442

Opta Minerals Inc.

Consolidated Statements of Income
For the Three Months Ended March 31, 2012 and 2011
(Unaudited)
Expressed in Thousands of US Dollars (except per share amounts)

			March 31,		March 31,
			2012		2011

Revenue		$	28,332	$	21,606
Cost of Goods Sold			22,085		16,419
Gross Profit			6,247		5,187
Expenses
	Selling, general and administrative		3,618		3,187
	Other income		(222)		(444)
			3,396		2,743
Operating Profit			2,851		2,444
Finance expense			656		413
Profit Before Income Taxes			2,195		2,031
Income taxes			685		608
Profit for the Period Attributable to the Shareholders of the Company		$	1,510	$	1,423
Earnings per share for the period -
	basic and diluted		0.08		0.08

Opta Minerals Inc.

Consolidated Statements of Comprehensive Income
For the Three Months Ended March 31, 2012 and 2011
(Unaudited)
Expressed in Thousands of US Dollars

			March 31,		March 31,
			2012		2011

Profit for the Period Attributable to the Shareholders of the Company		$	1,510	$	1,423

Other Comprehensive Income
	Unrealized gain on translation of foreign operations		140		272
	Unrealized gain (loss) on derivative financial instrument		(49)		97
Comprehensive Income Attributable to the Shareholders of the Company		$	1,601	$	1,792

Opta Minerals Inc.

Consolidated Statements of Changes in Equity
For the Three Months Ended March 31, 2012 and 2011
(Unaudited)
Expressed in Thousands of US Dollars (except 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, 2012		18,061,784	$	17,680	$	3,429	$	(193)	$	(1,942)	$	23,541	$	42,515
Comprehensive Income
	Profit for the period	-		-		-		-		-		1,510		1,501
	Unrealized gain on translation of foreign operations	-		-		-		-		140		-		140
	Unrealized loss on financial derivative designated as a cash flow hedge	-		-		-		(49)		-		-		(49)
Total Comprehensive Income		-		-		-		(49)		140		1,510		1,601
Transactions with Shareholders
	Employee share purchase plan	2,858		6		-		-		-		-		6
	Share-based payment expense	-		-		201		-		-		-		201
Total Transactions with Shareholders		2,858		6		201		-		-		-		207
At March 31, 2012		18,064,642	$	17,686	$	3,630	$	(242)	$	(1,802)	$	25,051	$	44,323
At January 1, 2011		18,036,974	$	17,632	$	2,781	$	(596)	$	(1,844)	$	19,891	$	37,864
Comprehensive Income
	Profit for the period	-		-		-		-		-		1,423		1,423
	Unrealized gain on translation of foreign operations	-				-		-		272		-		272
	Unrealized gain on financial derivative designated as a cash flow hedge	-		-		-		97		-		-		97
Total Comprehensive Income		-		-		-		97		272		1,423		1,792
Transactions with Shareholders
	Employee share purchase plan	2,180		4		-		-		-		-		4
	Share-based payment expense	-		-		98		-		-		-		98
Total Transactions with Shareholders		2,180		4		98		-		-		-		102
At March 31, 2011		18,039,154	$	17,636	$	2,879	$	(499)	$	(1,572)	$	21,314	$	39,758
*AOCI - Accumulated Other Comprehensive Income

Opta Minerals Inc.

Consolidated Statements of Cash Flows
For the Three Months Ended March 31, 2012 and 2011
(Unaudited)
Expressed in Thousands of US Dollars

			March 31,		March 31,
			2012		2011
Cash Provided by (Used in) -
Operating Activities
	Profit for the period		$	1,510	$	1,423

	Items not affecting cash:
		Depreciation of property, plant and equipment		688		520
		Amortization of intangible assets		608		496
		Share-based payment expense		201		98
		Non-cash finance expense		-		5
		Deferred income taxes		(331)		(86)
				2,676		2,456
	Changes in non-cash working capital
		Trade and other receivables		(2,547)		(458)
		Inventories		(1,046)		(2,115)
		Trade and other payables		1,314		(207)
		Provisions		(685)		116
		Income taxes payable		364		222
				76		14
Financing Activities
	Proceeds from issuance of common shares - net of issuance costs			6		4
	Proceeds from borrowings, net of deferred financing costs			20,682		3,999
	Repayment of finance lease liability			(48)		(32)
	Repayment of borrowings			(1,836)		(659)
				18,804		3,312
Investing Activities
	Acquisition of subsidiary			(17,530)		-
	Additions to property, plant and equipment			(611)		(301)
	Additions to intangible assets			(25)		(59)
				(18,166)		(360)
Foreign Exchange Gain on Cash Held in Foreign Currency				17		58
Increase in Cash and Cash Equivalents				731		3,024
Cash and Cash Equivalents
	Beginning of Period			698		495
	End of Period		$	1,429	$	3,519
Additional Cash Flows Information:
	Interest paid		$	664	$	416
	Income taxes paid			684		438

Opta Minerals Inc.

Segmented Information
For the Three Months Ended March 31, 2012 and 2011 (Unaudited)
Expressed in Thousands of US Dollars

Intersegment revenues are recorded at transaction prices, which approximate cost. The Company's assets, operations and employees are located in Canada, the United States and Europe.

	Three months ended March 31, 2012
	Mill and foundry Products and services		Abrasive Products manu- facturing and Distribution operations		Unallocated		Total





External revenue by market
Canada	$	5,007	$	1,265	$	-	$	6,272
US		13,322		4,720		-		18,042
Europe		3,977		-		-		3,977
Other		1		40		-		41
Total revenue from external customers		22,307		6,025		-		28,332

Segment profit before interest expense and income taxes		3,496		(336)		(309)		2,851
Finance expense		-		-		-		(656)
Income tax expense		-		-		-		(685)
Profit for the period		-		-		-		1,510
Total assets as at March 31, 2012		82,671		32,826		5,196		120,693
Depreciation of property, plant and equipment		360		293		35		688
Amortization of intangible assets		554		6		48		608
Goodwill and intangible assets as at March 31, 2012		46,898		3,552		330		50,780
Expenditures on property, plant and equipment		290		265		56		611

Opta Minerals Inc.

Segmented Information
For the Three Months Ended March 31, 2012 and 2011 (Unaudited)
Expressed in Thousands of US Dollars

External revenue by market is attributed to countries based on location of the customer.

Included in the mill and foundry products and services segment is revenue from one customer that individually exceeds 10% of the Company's revenue.

	Three Months Ended March 31, 2011
	Mill and foundry Products and services		Abrasive Products manu- facturing and Distribution operations		Unallocated		Total





External revenue by market
Canada	$	1,820	$	1,451	$	-	$	3,271
US		10,671		4,070		-		14,741
Europe		3,594		-		-		3,594
Total revenue from external customers		16,085		5,521		-		21,606

Segment profit before interest expense and income taxes		2,784		(614)		274		2,444
Finance expense		-		-		-		(413)
Income tax expense		-		-		-		(608)
Profit for the period		-		-		-		1,423
Total assets as at March 31, 2011		58,349		31,256		3,934		93,539
Depreciation of property, plant and equipment		224		266		30		520
Amortization of intangible assets		453		6		37		496
Goodwill and intangible assets as at March 31, 2011		31,617		3,577		475		35,669
Expenditures on property, plant and equipment		105		142		54		301

Opta Minerals Inc.
David Kruse
President and Chief Executive Officer
905-689-7361, ext 405
or
Opta Minerals Inc.
Peter Fryters
Chief Financial Officer and Secretary
905-689-7361, ext 405
investor_relations@optaminerals.com
www.optaminerals.com

Legends
	Production
	Mine development
	Discovery
	Exploration
	Past producer
On Google Earth, click on the button, to show property information, and access to project page or company page.