|
WATERDOWN, ONTARIO--(Marketwired - Aug. 8, 2013) - Opta Minerals Inc. (News - Market indicators), today announced results for the three and six months ended June 30, 2013. 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 |
|
|
|
|
2013 |
|
2012 |
|
(Decrease) |
|
% |
|
2013 |
|
2012 |
|
(Decrease) |
|
% |
|
|
|
Revenue |
$ |
37,462 |
|
$ |
31,214 |
|
$ |
6,248 |
|
20.0 |
% |
$ |
73,687 |
|
$ |
59,546 |
|
$ |
14,141 |
|
23.7 |
% |
Gross Profit |
|
5,587 |
|
|
6,870 |
|
|
(1,283 |
) |
-18.7 |
% |
|
12,842 |
|
|
13,117 |
|
|
(275 |
) |
-2.1 |
% |
|
|
14.9 |
% |
|
22.0 |
% |
|
-7.1 |
% |
|
|
|
17.4 |
% |
|
22.0 |
% |
|
-4.6 |
% |
|
|
EBITDA(1) |
|
1,963 |
|
|
2,904 |
|
|
(941 |
) |
-32.4 |
% |
|
5,680 |
|
|
7,051 |
|
|
(1,371 |
) |
-19.4 |
% |
EBIT(2) |
|
427 |
|
|
1,524 |
|
|
(1,097 |
) |
-72.0 |
% |
|
2,600 |
|
|
4,375 |
|
|
(1,775 |
) |
-40.6 |
% |
Net Earnings (Loss) |
|
(655 |
) |
|
1,322 |
|
|
(1,977 |
) |
-149.5 |
% |
|
280 |
|
|
2,832 |
|
|
(2,552 |
) |
-90.1 |
% |
EPS |
$ |
(0.03 |
) |
$ |
0.07 |
|
$ |
(0.10 |
) |
|
|
$ |
0.02 |
|
$ |
0.15 |
|
$ |
(0.13 |
) |
|
|
(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 "Revenues in the second quarter and on a year to date basis have increased over the comparable periods in 2012 primarily due to the acquisitions of Babco Industrial Corp. (Babco) and WGI Heavy Minerals, Incorporated (WGI) last year. However, our base business has softened from the prior year due to reduced sales to a number of our customers as a result of generally weak economic conditions. Earnings have been negatively impacted by these slowdowns in the first half of the year. The impact was more pronounced in the second quarter especially in the Steel and Magnesium segment as the output in the steel industry during the quarter continued to track below the prior year. As expected, results have also been affected by restructuring costs related to the acquisition of WGI and higher finance costs as a result of the integration of WGI.
"We anticipate that the steel industry will improve in the second half of 2013 which should positively impact our revenues in both the Steel and Magnesium and Industrial Minerals segments. Also, the integration of WGI is now substantially complete and as a result we expect lower SGA costs in the second half of the year and reduced one time charges. The Company is also focused on further cost reductions in order to restore margins on certain products to historical levels. Working capital will continue to be closely monitored for the balance of the year."
Operational Highlights:
- Net earnings for the three months ended June 30, 2013 was a loss of $0.7 million as compared to earnings of $1.3 million in the comparable quarter in 2012. On a year to date basis the Company realized earnings of $0.3 million as compared to $2.8 million in 2012 over the same period. Economic conditions across all sectors have affected both revenues and margins in the first half of the year. Lower revenues within the Steel Group in the second quarter have had a significant impact on the Company's net earnings. The Company has also expensed approximately $1.4 million in severance costs and various professional fees related to the WGI acquisition, new banking agreements and amendments and implementation of tax planning strategies. Finance expense is also higher as a result of borrowings related to the acquisitions of WGI and Babco.
- Revenue in the Steel and Magnesium segment decreased 12.6% over the comparable quarter in 2012. On a year to date basis revenues have declined 5.6% notwithstanding the acquisition of Babco in mid-February 2012. Revenue in the Steel and Magnesium segment has primarily been impacted by overall lower steel output in North America compared to the previous year. The Industrial Minerals segment increased 88.3% over the comparable quarter in 2012 and 85.6% on a year to date basis as compared to the previous year. The increase is due to the acquisition of WGI, partially offset by lower revenues in the base industrial minerals business related to generally weak economic conditions in the abrasive industry, as well as, lower output in the steel industry because this group's revenues are also affected by the steel industry.
- Despite increases in revenues, gross profit decreased quarter over quarter due to lower overall gross profit margins of 14.9% compared to 22.0% in the prior year quarter. For the six months ended June 30, 2013 gross profit margins are 17.4% compared to 22.0% in the comparable 2012 period. Gross profit margins have declined due to the acquisition of WGI which has inherently lower margins, reduced steel revenues especially in the most recent quarter which has higher inherent margins than the Industrial Minerals group, and lower margins in the industrial minerals segment compared to the prior year because of competitive pressures, and economic conditions affecting revenues and throughput.
- Selling, general and administrative expenses (SGA) as a percent of revenues were 14.4% in the second quarter and for the first six months of 2013. Included in SGA in the second quarter were $0.5 million in severance costs related to the restructuring and integration of the WGI acquisition. For the six months ended June 30 2013 there were one time costs associated with professional fees for income tax restructuring of $0.2 million and severance costs of $0.6 million. SGA in the prior year comparable quarter was 15.6% of revenues due to a large provision for a bad debt of $0.9 million. The Company expects to reduce SGA during the second half of 2013 as synergies are achieved from the integration of the WGI acquisition.
- The foreign exchange gain was $0.2 million for the quarter as compared to a foreign exchange loss of $0.5 million for the same quarter in 2012. On a year to date basis there was a gain of $0.4 million as compared to a loss of $0.3 million in the prior year. The results reflect movement between the three currencies we principally do business in; the U.S. dollar, the Canadian dollar and the Euro. The depreciation of the Canadian dollar against the U.S. dollar had the largest impact. The foreign exchange results are included in other expenses (income) in the interim condensed consolidated statements of income.
- Finance expense was $1.2 million for the quarter and $2.0 million year to date. Finance expense includes $0.3 million in the quarter and $0.5 million year to date in legal and amendment fees related to recent amendments to our banking agreements. A portion of the increase in the quarter and year to date is also due to higher average debt levels compared to last year, offset by lower interest rates.
- For the six months ended June 30, 2013, cash flow from operating activities before changes in working capital generated $3.0 million versus $4.3 million in the first half of 2012. The positive cash flow along with increased borrowings in the first half of the year was used to fund working capital increases and capital expenditures.
- The Company's working capital is $22.9 million at June 30, 2013 as compared to $25.0 million at December 31, 2012.
- The debt to equity ratio at June 30, 2013 and at December 31, 2012 was 1.27 to 1.00. During the second quarter, the Company obtained a waiver and amended certain bank covenant ratios for the second, third and fourth quarters.
- Total assets were $146.2 million as compared to $142.8 million at December 31, 2012.
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 |
|
2013 |
|
2012 |
|
2013 |
2012 |
|
$ |
|
$ |
|
$ |
$ |
|
Net Earnings for the Period |
(655 |
) |
1,322 |
|
280 |
2,832 |
Finance Expense |
1,154 |
|
763 |
|
2,040 |
1,419 |
Income Taxes |
(72 |
) |
(561 |
) |
280 |
124 |
Depreciation and Amortization |
1,536 |
|
1,380 |
|
3,080 |
2,676 |
|
EBITDA(1) |
1,963 |
|
2,904 |
|
5,680 |
7,051 |
Subtract: |
|
|
|
|
|
|
Depreciation and Amortization |
1,536 |
|
1,380 |
|
3,080 |
2,676 |
|
EBIT(2) |
427 |
|
1,524 |
|
2,600 |
4,375 |
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 belief that the steel industry will improve in the second half of 2013 resulting in increased revenues in both the Steel and Magnesium and Industrial Minerals segments, its expectation of lower SGA costs in the second half of the year, its focus on selective price increases and further cost reductions to restore margins to historical levels, improving working capital position, generating cash flow and paying down debt and its overall expectation that the second half of fiscal 2013 will be better than the first half, 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, 2013 |
(Unaudited) |
Expressed in Thousands of US Dollars (except number of shares) |
|
|
June 30, |
|
December 31, |
|
|
2013 |
|
2012 |
|
|
|
|
|
|
Assets |
|
|
|
|
Current |
|
|
|
|
|
Cash and cash equivalents |
$ |
3,718 |
|
$ |
3,966 |
|
|
Trade and other receivables |
|
23,007 |
|
|
19,894 |
|
|
Inventories |
|
35,381 |
|
|
32,516 |
|
|
Income taxes receivable |
|
284 |
|
|
- |
|
|
|
62,390 |
|
|
56,376 |
|
Property, Plant and Equipment |
|
29,332 |
|
|
29,770 |
|
Intangible Assets |
|
32,602 |
|
|
34,462 |
|
Goodwill |
|
14,085 |
|
|
14,311 |
|
Deferred Income Tax Assets |
|
7,786 |
|
|
7,846 |
|
|
$ |
146,195 |
|
$ |
142,765 |
|
Liabilities |
|
|
|
|
|
|
Current |
|
|
|
|
|
|
|
Trade and other payables |
|
16,068 |
|
|
13,598 |
|
|
Borrowings |
|
22,530 |
|
|
16,533 |
|
|
Provisions |
|
243 |
|
|
249 |
|
|
Other liabilities |
|
619 |
|
|
612 |
|
|
Income taxes payable |
|
- |
|
|
360 |
|
|
|
39,460 |
|
|
31,352 |
|
Borrowings |
|
40,767 |
|
|
45,351 |
|
Derivative Financial Instruments |
|
98 |
|
|
396 |
|
Provisions |
|
247 |
|
|
227 |
|
Other Liabilities |
|
870 |
|
|
1,274 |
|
Deferred Income Tax Liabilities |
|
4,571 |
|
|
4,468 |
|
Deferred Income Tax Liability on Intangible Assets |
|
10,475 |
|
|
10,985 |
|
|
|
96,488 |
|
|
94,053 |
|
Equity Attributable to the Shareholders of the Company |
|
|
|
|
|
|
Capital Stock |
|
|
|
|
|
|
|
Authorized without limit as to number - |
|
|
|
|
|
|
|
Preference shares (without par value) |
|
|
|
|
|
|
|
common shares |
|
|
|
|
|
|
|
Issued - |
|
|
|
|
|
|
|
18,101,582 common shares (December 31, 2012 - 18,084,559) |
|
17,770 |
|
|
17,729 |
|
Contributed Surplus |
|
4,208 |
|
|
4,018 |
|
Accumulated Other Comprehensive Loss |
|
(1,365 |
) |
|
(1,849 |
) |
Retained Earnings |
|
29,094 |
|
|
28,814 |
|
|
|
49,707 |
|
|
48,712 |
|
|
$ |
146,195 |
|
$ |
142,765 |
|
|
|
|
|
|
|
|
Opta Minerals Inc. |
|
Interim Condensed Consolidated Statements of Income |
For the Three Months Ended June 30, 2013 and 2012 |
(Unaudited) |
Expressed in Thousands of US Dollars (except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
June 30, |
|
|
2013 |
|
2012 |
|
|
|
|
|
|
Revenue |
$ |
37,462 |
|
$ |
31,214 |
|
Cost of Goods Sold |
|
31,875 |
|
|
24,344 |
|
|
|
5,587 |
|
|
6,870 |
|
Expenses |
|
|
|
|
|
|
|
Selling, general and administrative |
|
5,400 |
|
|
4,862 |
|
|
Other expenses (income) |
|
(240 |
) |
|
484 |
|
|
|
5,160 |
|
|
5,346 |
|
Profit Before Finance Expense and Income Taxes |
|
427 |
|
|
1,524 |
|
Finance expense |
|
1,154 |
|
|
763 |
|
Profit (Loss) Before Income Taxes |
|
(727 |
) |
|
761 |
|
Income taxes (recovery) |
|
(72 |
) |
|
(561 |
) |
Profit (Loss) for the Period Attributable to the Shareholders of the Company |
$ |
(655 |
) |
$ |
1,322 |
|
Earnings (loss) per share for the period - |
|
|
|
|
|
|
|
basic and diluted |
|
(0.03 |
) |
|
0.07 |
|
|
|
|
|
|
|
|
|
Opta Minerals Inc. |
|
Interim Condensed Consolidated Statements of Income |
For the Six Months Ended June 30, 2013 and 2012 |
(Unaudited) |
Expressed in Thousands of US Dollars (except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
June 30, |
|
2013 |
|
2012 |
|
|
|
|
Revenue |
$ |
73,687 |
|
$ |
59,546 |
Cost of Goods Sold |
|
60,845 |
|
|
46,429 |
|
|
12,842 |
|
|
13,117 |
Expenses |
|
|
|
|
|
|
Selling, general and administrative |
|
10,596 |
|
|
8,480 |
|
Other expenses (income) |
|
(354 |
) |
|
262 |
|
|
10,242 |
|
|
8,742 |
Profit Before Finance Expense and Income Taxes |
|
2,600 |
|
|
4,375 |
Finance expense |
|
2,040 |
|
|
1,419 |
Profit Before Income Taxes |
|
560 |
|
|
2,956 |
Income taxes |
|
280 |
|
|
124 |
Profit for the Period Attributable to the Shareholders of the Company |
$ |
280 |
|
$ |
2,832 |
Earnings per share for the period - |
|
|
|
|
|
|
basic and diluted |
|
0.02 |
|
|
0.15 |
|
|
|
|
|
|
|
Opta Minerals Inc. |
|
|
|
Interim Condensed Consolidated Statements of Comprehensive Income |
|
For the Three Months Ended June 30, 2013 and 2012 |
|
(Unaudited) |
|
Expressed in Thousands of US Dollars |
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
June 30, |
|
|
2013 |
|
2012 |
|
|
|
|
|
|
Profit (Loss) for the Period Attributable to the Shareholders of the Company |
$ |
(655 |
) |
$ |
1,322 |
|
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 |
|
|
(348 |
) |
|
Unrealized gain (loss) on financial derivative designated as a cash flow hedge |
|
445 |
|
|
(124 |
) |
|
Other comprehensive income (loss), net of income taxes |
|
1,052 |
|
|
(472 |
) |
Comprehensive Income Attributable to the Shareholders of the Company |
$ |
397 |
|
$ |
850 |
|
|
|
|
|
|
|
|
Opta Minerals Inc. |
|
|
|
Interim Condensed Consolidated Statements of Comprehensive Income |
|
For the Six Months Ended June 30, 2013 and 2012 |
|
(Unaudited) |
|
Expressed in Thousands of US Dollars |
|
|
|
|
|
|
|
|
|
|
June 30, |
June 30, |
|
|
2013 |
2012 |
|
|
|
|
|
Profit (Loss) for the Period Attributable to the Shareholders of the Company |
$ |
280 |
$ |
2,832 |
|
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 |
|
263 |
|
(208 |
) |
|
Unrealized gain (loss) on financial derivative designated as a cash flow hedge |
|
221 |
|
(173 |
) |
|
Other comprehensive income (loss), net of income taxes |
|
484 |
|
(381 |
) |
Comprehensive Income Attributable to the Shareholders of the Company |
$ |
764 |
$ |
2,451 |
|
|
|
|
|
|
|
Opta Minerals Inc. |
|
|
|
Interim Condensed Consolidated Statements of Changes in Equity |
|
For the Six Months Ended June 30, 2013 and 2012 |
|
(Unaudited) |
|
Expressed in Thousands of US Dollars (except number of shares) |
|
|
|
|
|
|
|
|
|
|
|
AOCI* - |
|
|
|
|
|
|
|
Contributed |
|
|
Foreign |
|
|
|
|
|
Number of |
|
Surplus - |
AOCI* - |
|
Currency |
|
|
|
|
|
Shares - |
Capital |
Share-based |
Cash Flow |
|
Translation |
|
Retained |
Total |
|
|
Capital Stock |
Stock |
Payments |
Hedge |
|
Reserve |
|
Earnings |
Equity |
|
At January 1, 2013 |
18,084,559 |
$ |
17,729 |
$ |
4,018 |
$ |
(293 |
) |
$ |
(1,556 |
) |
$ |
28,814 |
$ |
48,712 |
|
Comprehensive Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the period |
- |
|
- |
|
- |
|
- |
|
|
- |
|
|
280 |
|
380 |
|
|
Unrealized gain on translation of foreign operations |
- |
|
- |
|
- |
|
- |
|
|
263 |
|
|
- |
|
263 |
|
|
Unrealized gain on financial derivative designated as a cash flow hedge |
- |
|
- |
|
- |
|
221 |
|
|
- |
|
|
- |
|
221 |
|
Total Comprehensive Income |
- |
|
- |
|
- |
|
221 |
|
|
263 |
|
|
280 |
|
764 |
|
Transactions with Shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee share purchase plan |
8,946 |
|
26 |
|
- |
|
- |
|
|
- |
|
|
- |
|
26 |
|
|
Stock options exercised |
8,077 |
|
15 |
|
- |
|
- |
|
|
- |
|
|
- |
|
15 |
|
|
Share-based payment expense |
- |
|
- |
|
190 |
|
- |
|
|
- |
|
|
- |
|
190 |
|
Total Transactions with Shareholders |
17,023 |
|
41 |
|
190 |
|
- |
|
|
- |
|
|
- |
|
231 |
|
At June 30, 2013 |
18,101,582 |
|
17,770 |
|
4,208 |
|
(72 |
) |
|
(1,293 |
) |
|
29,094 |
|
49,707 |
|
At January 1, 2012 |
18,061,784 |
|
17,680 |
|
3,429 |
|
(193 |
) |
|
(1,942 |
) |
|
23,541 |
|
42,515 |
|
Comprehensive Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the period |
- |
|
- |
|
- |
|
- |
|
|
- |
|
|
2,832 |
|
2,832 |
|
|
Unrealized loss on translation of foreign operations |
- |
|
- |
|
- |
|
- |
|
|
(208 |
) |
|
- |
|
(208 |
) |
|
Unrealized loss on financial derivative designated as a cash flow hedge |
- |
|
- |
|
- |
|
(173 |
) |
|
- |
|
|
- |
|
(173 |
) |
Total Comprehensive Income |
- |
|
- |
|
- |
|
(173 |
) |
|
(208 |
) |
|
2,832 |
|
2,451 |
|
Transactions with Shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee share purchase plan |
6,268 |
|
14 |
|
- |
|
- |
|
|
- |
|
|
- |
|
14 |
|
|
Share-based payment expense |
- |
|
- |
|
343 |
|
- |
|
|
- |
|
|
- |
|
343 |
|
Total Transactions with Shareholders |
6,268 |
|
14 |
|
343 |
|
- |
|
|
- |
|
|
- |
|
357 |
|
At June 30, 2012 |
18,068,642 |
$ |
17,694 |
$ |
3,772 |
$ |
(366 |
) |
$ |
(2,150 |
) |
$ |
26,373 |
$ |
45,323 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Opta Minerals Inc. |
|
Interim Condensed Consolidated Statements of Cash Flows For the Six Months Ended June 30, 2013 and 2012 |
|
(Unaudited) |
|
Expressed in Thousands of US Dollars |
|
|
June 30, |
|
June 30, |
|
|
2013 |
|
2012 |
|
|
|
|
|
|
Cash Provided by (Used in) - |
|
|
|
|
|
|
|
|
|
|
Operating Activities |
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the period |
$ |
280 |
|
$ |
2,832 |
|
|
|
Items not affecting cash: |
|
|
|
|
|
|
|
|
|
Depreciation of property, plant and equipment |
|
1,778 |
|
|
1,419 |
|
|
|
|
Amortization of intangible assets |
|
1,302 |
|
|
1,257 |
|
|
|
|
Share-based payment expense |
|
190 |
|
|
343 |
|
|
|
|
Non-cash finance expense |
|
(74 |
) |
|
- |
|
|
|
|
Gain on disposal of property, plant and equipment |
|
(5 |
) |
|
- |
|
|
|
|
Deferred income taxes |
|
(437 |
) |
|
(1,554 |
) |
|
|
|
|
3,034 |
|
|
4,297 |
|
|
|
Changes in non-cash working capital |
|
|
|
|
|
|
|
|
|
Trade and other receivables |
|
(3,718 |
) |
|
(4,369 |
) |
|
|
|
Inventories |
|
(3,375 |
) |
|
(1,446 |
) |
|
|
|
Trade and other payables |
|
2,730 |
|
|
827 |
|
|
|
|
Provisions |
|
(14 |
) |
|
(647 |
) |
|
|
|
Income taxes payable |
|
(660 |
) |
|
610 |
|
|
|
|
(1,975 |
) |
|
(728 |
) |
|
|
|
|
|
|
|
|
|
Financing Activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from issuance of common shares - net of issuance costs |
|
41 |
|
|
14 |
|
|
|
Proceeds from borrowings |
|
7,318 |
|
|
20,988 |
|
|
|
Repayment of finance lease liability |
|
(437 |
) |
|
(121 |
) |
|
|
Repayment of borrowings |
|
(2,582 |
) |
|
(1,835 |
) |
|
|
|
4,340 |
|
|
19.046 |
|
|
|
|
|
|
|
|
|
|
Investing Activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition of subsidiaries |
|
(175 |
) |
|
(17,530 |
) |
|
|
Additions to property, plant and equipment |
|
(2,030 |
) |
|
(1.217 |
) |
|
|
Proceeds on disposal of property, plant and equipment |
|
9 |
|
|
- |
|
|
|
Additional contingent consideration paid on acquisitions |
|
(296 |
) |
|
- |
|
|
|
Additions to intangible assets |
|
(99 |
) |
|
(25 |
) |
|
|
(2,591 |
) |
|
(18,772 |
) |
Foreign Exchange Loss on Cash Held in Foreign Currency |
|
(22 |
) |
|
(11 |
) |
Decrease in Cash and Cash Equivalents |
|
(248 |
) |
|
(465 |
) |
Cash and Cash Equivalents |
|
|
|
|
|
|
|
Beginning of Period |
|
3,966 |
|
|
698 |
|
|
End of Period |
$ |
3,718 |
|
$ |
233 |
|
|
|
|
|
|
|
|
|
Additional Cash Flow Information: |
|
|
|
|
|
|
|
Interest paid |
$ |
1,633 |
|
$ |
1,435 |
|
|
Income taxes paid |
|
1,359 |
|
|
1,033 |
|
|
|
|
|
|
|
|
|
Opta Minerals Inc.
Segmented Information |
For the Three Months Ended June 30, 2013 and 2012 |
Expressed in Thousands of US Dollars |
Inter-segment 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 June 30, 2013 |
|
|
|
|
|
|
|
|
|
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 profit (loss) before corporate expenses, finance expense and income taxes |
|
3,214 |
|
(1,308) |
|
- |
|
|
1,906 |
|
Corporate expenses |
|
- |
|
- |
|
(1,479 |
) |
|
(1,479 |
) |
Segment profit (loss) before finance expense and income taxes |
|
3,214 |
|
(1,308) |
|
(1,479 |
) |
|
427 |
|
Finance expense |
|
- |
|
- |
|
- |
|
|
(1,154 |
) |
Income taxes |
|
- |
|
- |
|
- |
|
|
72 |
|
Loss for the period |
|
- |
|
- |
|
- |
|
|
(655 |
) |
Depreciation of property, plant and equipment |
|
367 |
|
471 |
|
51 |
|
|
889 |
|
Amortization of intangible assets |
|
555 |
|
46 |
|
46 |
|
|
647 |
|
Expenditures on property, plant and equipment |
$ |
962 |
$ |
328 |
$ |
31 |
|
$ |
1,321 |
|
|
|
|
|
|
|
|
|
|
|
|
External revenue by market is attributed to countries based on location of the customer.
Included in the Steel and Magnesium segment (formerly Mill and Foundry Products and Services) is revenue from two customers that individually each exceeds10% of the Company's revenue.
The Company evaluates the performance of its operating segments primarily based on income before corporate expenses, finance expense and income taxes.
Opta Minerals Inc. |
|
|
|
Segmented Information |
|
For the Three Months Ended June 30, 2013 and 2012 |
|
Expressed in Thousands of US Dollars |
|
|
|
|
Three Months Ended June 30, 2012 |
|
|
|
|
|
|
|
|
|
Steel and |
Industrial |
|
|
|
|
|
Magnesium |
Minerals |
Corporate |
|
Total |
|
External revenue by market |
|
|
|
|
|
|
Canada |
$ |
4,225 |
$ |
4,268 |
$ |
- |
|
$ |
8,493 |
|
US |
|
12,823 |
|
5,768 |
|
- |
|
|
18,591 |
|
Europe |
|
4,062 |
|
14 |
|
- |
|
|
4,076 |
|
Other |
|
- |
|
54 |
|
- |
|
|
54 |
|
Total revenue from external customers |
|
21,110 |
|
10,104 |
|
- |
|
|
31,214 |
|
Segment profit before corporate expenses, finance expense and income taxes |
|
3,010 |
|
605 |
|
- |
|
|
3,615 |
|
Corporate expenses |
|
- |
|
- |
|
(2,091 |
) |
|
(2,092 |
) |
Segment profit before finance expense and income taxes |
|
3,010 |
|
605 |
|
(2,091 |
) |
|
1,524 |
|
Finance expense |
|
- |
|
- |
|
- |
|
|
(763 |
) |
Income taxes |
|
- |
|
- |
|
- |
|
|
561 |
|
Profit for the period |
|
- |
|
- |
|
- |
|
|
1,322 |
|
Depreciation of property, plant and equipment |
|
363 |
|
330 |
|
38 |
|
|
731 |
|
Amortization of intangible assets |
|
554 |
|
47 |
|
48 |
|
|
649 |
|
Expenditures on property, plant and equipment |
$ |
388 |
$ |
155 |
$ |
63 |
|
$ |
606 |
|
|
|
|
|
|
|
|
|
|
|
|
Opta Minerals Inc.
Segmented Information |
For the Six Months Ended June 30, 2013 and 2012 |
Expressed in Thousands of US Dollars |
Inter-segment 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.
|
Six Months Ended June 30, 2013 |
|
|
|
|
|
|
|
|
|
|
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 profit (loss) before corporate expenses, finance expense and income taxes |
|
6,801 |
|
(1,196 |
) |
|
- |
|
|
5,605 |
|
Corporate expenses |
|
- |
|
- |
|
|
(3,005 |
) |
|
(3,005 |
) |
Segment profit (loss) before finance expense and income taxes |
|
6,801 |
|
(1,196 |
) |
|
(3,005 |
) |
|
2,600 |
|
Finance expense |
|
- |
|
- |
|
|
- |
|
|
(2,040 |
) |
Income taxes |
|
- |
|
- |
|
|
- |
|
|
(280 |
) |
Profit for the period |
|
- |
|
- |
|
|
- |
|
|
280 |
|
Total assets as at June 30, 2013 |
|
72,451 |
|
70,099 |
|
|
3,645 |
|
|
146,195 |
|
Depreciation of property, plant and equipment |
|
730 |
|
947 |
|
|
101 |
|
|
1,778 |
|
Amortization of intangible assets |
|
1,114 |
|
93 |
|
|
95 |
|
|
1,302 |
|
Goodwill and intangible assets as at June 30, 2013 |
|
42,219 |
|
4,294 |
|
|
174 |
|
|
46,687 |
|
Expenditures on property, plant and equipment |
$ |
1,126 |
$ |
745 |
|
$ |
159 |
|
$ |
2,030 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Opta Minerals Inc. |
|
Segmented Information |
For the Six Months Ended June 30, 2013 and 2012 |
Expressed in Thousands of US Dollars |
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2012 |
|
|
|
|
|
|
Steel and |
Industrial |
|
|
|
Magnesium |
Minerals |
Corporate |
Total |
External revenue by market |
|
|
|
|
Canada |
$ |
7,209 |
$ |
7,556 |
$ |
- |
$ |
14,765 |
US |
|
25,123 |
|
11,510 |
|
- |
|
36,633 |
Europe |
|
8,039 |
|
14 |
|
- |
|
8,053 |
Other |
|
1 |
|
94 |
|
- |
|
95 |
Total revenue from external customers |
|
40,372 |
|
19,174 |
|
- |
|
59,546 |
Segment profit before corporate expenses, finance expense and income taxes |
|
7,087 |
|
1,213 |
|
- |
|
8,300 |
Corporate expenses |
|
- |
|
- |
|
(3,925) |
|
(3,925) |
Segment profit before finance expense and income taxes |
|
7,087 |
|
1,213 |
|
(3,925) |
|
4,375 |
Finance expense |
|
- |
|
- |
|
- |
|
(1,419) |
Income taxes |
|
- |
|
- |
|
- |
|
(124) |
Profit for the period |
|
- |
|
- |
|
- |
|
2,832 |
Total assets as of June 30, 2012 |
|
76,002 |
|
40,083 |
|
3,722 |
|
119,807 |
Depreciation of property, plant and equipment |
|
693 |
|
653 |
|
73 |
|
1,419 |
Amortization of intangible assets |
|
1,061 |
|
100 |
|
96 |
|
1,257 |
Goodwill and intangible assets as at June 30, 2012 |
|
44,610 |
|
4,095 |
|
273 |
|
48,978 |
Expenditures on property, plant and equipment |
$ |
680 |
$ |
418 |
$ |
119 |
$ |
1,217 |
Opta Minerals Inc. David Kruse President and Chief Executive Officer or Opta Minerals Inc. Peter Fryters Chief Financial Officer and Treasurer 905-689-7361, ext 405 investor_relations@optaminerals.com www.optaminerals.com
| |