Canada Bread Reports Results for the Fourth Quarter and Year End 2012
TORONTO, Feb. 26, 2013 /CNW/ - Canada Bread Company, Limited (TSX: CBY) today reported its financial results for the fourth quarter and year ended December 31, 2012. Fourth quarter and full year highlights include:
- Adjusted Operating Earnings(1) for the fourth quarter increased 35.3% to $35.4 million compared to $26.2 million last year
- Adjusted Operating Earnings for the full year increased 5.5% to $115.9 million compared to $109.8 million last year
- Adjusted EPS(2) for the fourth quarter increased to $1.00 from $0.67 in 2011. For the full year, Adjusted EPS decreased to $3.26 from $3.43. Adjusted EPS in 2011 included a $0.49 tax adjustment related to a prior acquisition.
"We delivered solid earnings growth in the quarter, reflecting intense effort by our team and solid execution on a number of fronts, including cost reduction, innovation and campaigns to engage with consumers." said Richard Lan, President and CEO. "We continue to see significant potential to deliver incremental value. A number of initiatives are planned or underway to further drive profitability in 2013 and beyond."
| (1): Adjusted Operating Earnings, a non-IFRS measure, is defined as earnings from operations before restructuring and other related costs and other income. |
| (2): Adjusted Earnings per Share ("Adjusted EPS"), a non-IFRS measure, is defined as basic earnings per share adjusted for the impact of restructuring and other related costs, net of tax. |
| Please refer to the section entitled Reconciliation of Non-IFRS Financial Measures in this news release. |
Financial Overview
Sales for the fourth quarter decreased 2.4% to $390.7 million compared to $400.3 million last year. After adjusting for the closure of a bakery in the U.K. and currency translation on sales in the U.S. and U.K., sales decreased 0.4%. Higher prices and volumes in the North American and U.K. frozen bakery businesses were offset by lower volumes and unfavourable sales mix in the fresh pasta business. Volumes in the fresh bread business were consistent with last year.
Sales for 2012 decreased 1.8% to $1,567.3 million compared to $1,595.5 million in 2011. After adjusting for the sale of the Company's fresh sandwich product line, the closure of a bakery in the U.K., and currency translation on sales in the U.S. and U.K., sales were consistent with last year.
Adjusted Operating Earnings for the fourth quarter increased 35.3% to $35.4 million compared to $26.2 million last year. Earnings growth in the fresh bread and North American frozen bakery businesses was partly offset by lower earnings in the fresh pasta business, while earnings in the U.K. bakery operations were consistent with last year. Margin expansion in the fresh bread business was primarily due to increased operating efficiencies, lower duplicative overhead costs associated with the new Hamilton bakery, and higher costs in 2011 related to the implementation of SAP in Western Canada that were not repeated. The Company also benefited from positive hedging activities that reduced raw material costs.
Adjusted Operating Earnings increased 5.5% to $115.9 million in 2012, compared to $109.8 million last year.
Adjusted EPS for the fourth quarter were $1.00 compared to $0.67 last year. For the full year, Adjusted EPS decreased to $3.26 compared to $3.43 last year. Adjusted EPS in 2011 included $0.49 per share related to a tax adjustment associated with a prior acquisition.
Business Segment Review
The following table summarizes sales by business segment:
| Fourth Quarter | Year-to-Date | ||||||||
| (Unaudited) | (Audited) | ||||||||
| ($ thousands) | 2012 | 2011 | 2012 | 2011 | |||||
| Fresh Bakery | $ | 254,809 | $ | 261,963 | $ | 1,059,865 | $ | 1,087,335 | |
| Frozen Bakery | 135,892 | 138,317 | 507,435 | 508,121 | |||||
| Sales | $ | 390,701 | $ | 400,280 | $ | 1,567,300 | $ | 1,595,456 | |
The following table summarized Adjusted Operating Earnings by business segment:
| Fourth Quarter | Year-to-Date | ||||||||
| (Unaudited) | (Audited) | ||||||||
| ($ thousands) | 2012 | 2011 | 2012 | 2011 | |||||
| Fresh Bakery | $ | 24,631 | $ | 19,463 | $ | 91,171 | $ | 99,857 | |
| Frozen Bakery | 10,813 | 6,738 | 24,697 | 9,934 | |||||
| Adjusted Operating Earnings | $ | 35,444 | $ | 26,201 | $ | 115,868 | $ | 109,791 | |
Fresh Bakery
Includes fresh bakery products, including breads, rolls, bagels, sweet goods, and fresh pasta and sauces sold to retail, foodservice and convenience channels. It includes national brands such as Dempster's® and Olivieri® and many leading regional brands.
Fresh Bakery sales for the fourth quarter declined 2.7% to $254.8 million from $262.0 million last year due to lower volumes in the fresh pasta business. Volumes in the fresh bread business were consistent with the prior year. For the full year, sales declined 2.5% to $1,059.9 million from $1,087.3 million last year. After adjusting for the sale of the Company's fresh sandwich product line, sales decreased 2.1% as volumes were lower in both the fresh bread and fresh pasta businesses. This was partly offset by the full year impact of price increases implemented during 2011 in the fresh bread business.
Adjusted Operating Earnings were $24.6 million compared to $19.5 million last year. The increase was driven by efficiency gains in the fresh bread business resulting from the closure of the Delta, B.C. plant in late 2011 and the related transfer of production to more efficient bakeries. Earnings also benefited from positive hedging activities that reduced input costs, and from higher costs in 2011 related to the implementation of SAP in Western Canada that were not repeated in 2012. In addition, duplicative overhead costs were incurred last year as the Company continued to operate three bakeries while transferring production to the new, more efficient bakery in Hamilton, Ontario. During 2012, two of these facilities were closed, with associated reduction in costs. Closure of the third Ontario bakery is planned for the second quarter of 2013. Partly offsetting these benefits were lower earnings in the fresh pasta business as supply chain issues resulted in lower volumes and an unfavourable sales mix.
For the full year, Adjusted Operating Earnings decreased 8.7% to $91.2 million compared to $99.9 million last year, as lower earnings in the fresh pasta business were partly offset by earnings improvements in the fresh bread business.
Frozen Bakery
Includes frozen bakery products, including frozen par-baked bakery products, specialty and artisan breads, and bagels sold to retail, foodservice and convenience channels in North America and the U.K. It includes national brands such as Tenderflake® and New York Bakery CoTM.
Frozen Bakery sales for the fourth quarter decreased 1.8% to $135.9 million from $138.3 million in 2011. After adjusting for the closure of a bakery in the U.K. and currency translation on sales in the U.S. and U.K., sales increased 4.1%, primarily due to stronger volumes in the North American and U.K. bakery businesses, as well as higher pricing in the North American business.
Adjusted Operating Earnings for the fourth quarter increased 60.5% to $10.8 million compared to $6.7 million last year. The increase was mainly due to improved performance in the North American operations, which benefited from higher pricing and volumes, as well as positive hedging activities that reduced raw material costs, partially offset by higher administrative expenses.
The U.K. bakery benefited from the closure of the Walsall facility earlier in the year and a new croissant business that began in the fourth quarter. However, these benefits were offset by higher trade spending related to the New York Bakery bagel brand, and increased manufacturing costs at the Maidstone facility.
Adjusted Operating Earnings increased to $24.7 million in 2012 compared to $9.9 million last year, mainly due to improved performance at the North American bakery business.
Subsequent Events
On January 30, 2013, the Company announced plans to close a bakery in Grand Falls, New Brunswick and a bakery in Edmonton, Alberta in the first half of 2013. The Company will incur approximately $6.3 million before taxes in restructuring costs, of which approximately $4.2 million are cash costs.
Other Matters
On February 25, 2013, Canada Bread declared a dividend of $0.50 per share payable on April 1, 2013 to shareholders of record at the close of business on March 8, 2013. Unless indicated otherwise by the Company in writing on or before the time the dividend is paid, this dividend will be considered an Eligible Dividend for the purposes of the "Enhanced Dividend Tax Credit System".
Reconciliation of Non-IFRS Financial Measures
The Company uses the following non-IFRS measures: Adjusted Operating Earnings and Adjusted EPS. Management believes that these non-IFRS measures provide useful information to both Management and investors in measuring the financial performance of the Company for the reasons outlined below. These measures do not have a standardized meaning prescribed by IFRS and therefore they may not be comparable to similarly titled measures presented by other publicly traded companies and should not be construed as an alternative to other financial measures determined in accordance with IFRS.
Adjusted Operating Earnings
The following tables reconcile earnings from operations before restructuring and other related costs and other income (expense) to net earnings as reported under IFRS in the unaudited earnings for the three month and twelve month periods ended as indicated below. Management believes that this is the most appropriate basis on which to evaluate operating results, as restructuring and other related costs and other income (expense) are not representative of operational results during the period.
| (Unaudited) | Three months ended December 31, 2012 | ||||||
| ($ thousands) | Fresh Bakery |
Frozen Bakery |
Consolidated | ||||
| Net earnings | $ | 22,371 | |||||
| Income taxes | 9,182 | ||||||
| Earnings from operations before income taxes | $ | 31,553 | |||||
| Interest expense | 354 | ||||||
| Earnings from operations before interest | |||||||
| and income taxes | $ | 23,477 | $ | 8,430 | $ | 31,907 | |
| Other (income) expense | (109) | (168) | (277) | ||||
| Restructuring and other related costs | 1,263 | 2,551 | 3,814 | ||||
| Adjusted Operating Earnings | $ | 24,631 | $ | 10,813 | $ | 35,444 | |
| (Unaudited) | Three months ended December 31, 2011 | ||||||
| ($ thousands) | Fresh Bakery |
Frozen Bakery |
Consolidated | ||||
| Net earnings | $ | 7,757 | |||||
| Income taxes | 6,152 | ||||||
| Earnings from operations before income taxes | $ | 13,909 | |||||
| Interest expense | 180 | ||||||
| Earnings from operations before interest | |||||||
| and income taxes | $ | 17,160 | $ | (3,071) | $ | 14,089 | |
| Other (income) expense | (57) | 7 | (50) | ||||
| Restructuring and other related costs | 2,360 | 9,802 | 12,162 | ||||
| Adjusted Operating Earnings | $ | 19,463 | $ | 6,738 | $ | 26,201 | |
| Twelve months ended December 31, 2012 | |||||||||
| (Audited) ($ thousands) |
Fresh Bakery |
Frozen Bakery |
Unallocated costs |
Consolidated | |||||
| Net earnings | $ | 74,200 | |||||||
| Income taxes | 30,683 | ||||||||
| Earnings from operations before income taxes | $ | 104,883 | |||||||
| Interest expense | 1,547 | ||||||||
| Earnings from operations before interest | |||||||||
| and income taxes | $ | 88,116 | $ | 18,314 | $ | - | $ | 106,430 | |
| Other (income) expense | (1,676) | 41 | - | (1,635) | |||||
| Restructuring and other related costs | 4,731 | 6,342 | - | 11,073 | |||||
| Adjusted Operating Earnings | $ | 91,171 | $ | 24,697 | $ | - | $ | 115,868 | |
| Twelve months ended December 31, 2011 | |||||||||
| (Audited) ($ thousands) |
Fresh Bakery |
Frozen Bakery |
Unallocated costs |
Consolidated | |||||
| Net earnings | $ | 51,951 | |||||||
| Income taxes | 10,845 | ||||||||
| Earnings from operations before income taxes | $ | 62,796 | |||||||
| Interest expense | 1,052 | ||||||||
| Earnings from operations before interest | |||||||||
| and income taxes | $ | 85,046 | $ | (21,198) | $ | - | $ | 63,848 | |
| Other (income) expense | (49) | (365) | - | (414) | |||||
| Restructuring and other related costs | 14,860 | 31,497 | - | 46,357 | |||||
| Adjusted Operating Earnings | $ | 99,857 | $ | 9,934 | $ | - | $ | 109,791 | |
Adjusted Earnings per Share
The following table reconciles Adjusted EPS to basic earnings per share as reported under IFRS as indicated below. Management believes this is the most appropriate basis on which to evaluate financial results as restructuring and other related costs are not representative of operational results.
| Three months ended December 31, (Unaudited) |
Twelve months ended December 31, (Audited) |
||||||||
| ($ per share) | 2012 | 2011 | 2012 | 2011 | |||||
| Basic earnings per share | $ | 0.88 | $ | 0.31 | $ | 2.92 | $ | 2.04 | |
| Restructuring and other related costs(i) | 0.12 | 0.37 | 0.34 | 1.39 | |||||
| Adjusted Earnings per Share (ii) | $ | 1.00 | $ | 0.67 | $ | 3.26 | $ | 3.43 | |
| (i) Includes per share impact of restructuring and other related costs, net of tax. |
| (ii) May not add due to rounding. |
Forward-Looking Statements
This document contains, and the Company's oral and written public communications often contain, "forward-looking information" within the meaning of applicable securities laws. These statements are based on current expectations, estimates, forecasts and projections about the industries in which the Company operates and beliefs and assumptions made management. Such statements include, but are not limited to, statements with respect to objectives and goals, as well as statements with respect to beliefs, plans, objectives, expectations, anticipations, estimates and intentions. Specific forward-looking information in this document includes, but is not limited to, statements concerning expectations regarding the use of derivatives, futures and options, expectations regarding the timing and amount of capital investments, expectations regarding the timing and cost of old facility closures and new facility openings, the expected use of cash balances, source of funds for ongoing business requirements including renewal of existing securitization facilities, capital investments and debt repayment, expectations regarding LEED® certification, expectations regarding the impact of new accounting standards, expectations regarding sufficiency of the allowance for uncollectible accounts and expectations regarding pension plan performance and future pension liabilities and contributions. Words such as "expect", "anticipate", "intend", "attempt", "may", "will", "plan", "believe", "seek", "estimate", and variations of such words and similar expressions are intended to identify such forward-looking information. These statements are not guarantees of future performance and involve assumptions and risks and uncertainties that are difficult to predict.
In particular, these statements are based on a variety of factors and assumptions that are discussed throughout this document. In addition, expectations concerning the performance of the Company's business in general are based on a number of factors and assumptions including, but not limited to: the condition of the Canadian, U.S. and U.K. economies; the rate of exchange of the Canadian dollar to the U.S. dollar and British pound; the availability and prices of raw materials, energy and supplies; product pricing; the availability of insurance; the competitive environment and related market conditions; improvement of operating efficiencies; continued access to capital; the cost of compliance with environmental and health standards; no adverse results from ongoing litigation; no unexpected actions of domestic and foreign governments and the general assumption that none of the risks identified below or elsewhere will materialize. All of these assumptions have been derived from information currently available to the Company including information obtained by the Company from third-party sources. These assumptions may prove to be incorrect in whole or in part. In addition, actual results may differ materially from those expressed, implied or forecasted in such forward-looking information, which reflect the Company's expectations only as of the date hereof.
Factors that could cause actual results or outcomes to differ materially from the results expressed, implied or forecasted in such forward-looking information are discussed in more detail under the heading "Risk Factors" in the Company's Management's Discussion and Analysis for the year ended December 31, 2012 and are updated each quarter in the Management's Discussion and Analysis, which are available on SEDAR at www.sedar.com. The reader should review such sections in detail. The Company does not intend to, and the Company disclaims any obligation to, update any forward-looking information, whether written or oral, or whether as a result of new information, future events or otherwise except as required by law.
Additional information concerning the Company, including the Company's Annual Information Form, is available on SEDAR at www.sedar.com.
Canada Bread Company Limited, which is 90% owned by Maple Leaf Foods Inc. (TSX:MFI), is a leading manufacturer and distributor of fresh bakery products, frozen par-baked products and fresh pasta and sauces. The Company had 2012 sales of $1.6 billion and employs approximately 6,400 people at its operations across North America and in the United Kingdom.
Consolidated Financial Statements
(Expressed in Canadian dollars)
CANADA BREAD COMPANY,
LIMITED
Three and twelve months ended December 31, 2012 and 2011
| CANADA BREAD COMPANY, LIMITED Consolidated Balance Sheets (In thousands of Canadian dollars) |
||||||||
| As at | As at | |||||||
| December 31, | December 31, | |||||||
| 2012 | 2011 | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 90,415 | $ | 59,223 | ||||
| Accounts receivable | 49,435 | 56,522 | ||||||
| Notes receivable | 44,063 | 45,847 | ||||||
| Inventories | 62,766 | 60,048 | ||||||
| Income taxes recoverable | - | 2,162 | ||||||
| Prepaid expenses and other assets | 4,972 | 5,218 | ||||||
| $ | 251,651 | $ | 229,020 | |||||
| Property and equipment | 410,479 | 425,944 | ||||||
| Investment property | 9,103 | 8,415 | ||||||
| Other long-term assets | 4,994 | 4,456 | ||||||
| Deferred tax asset | 17,874 | 17,917 | ||||||
| Goodwill | 264,243 | 266,013 | ||||||
| Intangible assets | 11,647 | 12,710 | ||||||
| Total assets | $ | 969,991 | $ | 964,475 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current liabilities | ||||||||
| Bank indebtedness | $ | - | $ | 3,153 | ||||
| Accounts payable and accruals | 169,431 | 185,811 | ||||||
| Provisions | 9,928 | 23,066 | ||||||
| Due to Maple Leaf Foods Inc. | 4,830 | 2,451 | ||||||
| Dividends payable | 12,708 | 5,083 | ||||||
| Income taxes payable | 2,008 | - | ||||||
| Current portion of long-term debt | 358 | 2,452 | ||||||
| $ | 199,263 | $ | 222,016 | |||||
| Long-term debt | 2,921 | 1,634 | ||||||
| Deferred tax liability | 19,998 | 21,784 | ||||||
| Employee benefits | 56,011 | 50,434 | ||||||
| Provisions | 6,277 | 5,005 | ||||||
| Total liabilities | $ | 284,470 | $ | 300,873 | ||||
| Shareholders' equity | ||||||||
| Share capital | $ | 142,965 | $ | 142,965 | ||||
| Retained earnings | 555,322 | 530,852 | ||||||
| Accumulated other comprehensive loss | (12,766) | (10,215) | ||||||
| Total shareholders' equity | $ | 685,521 | $ | 663,602 | ||||
| Total liabilities and shareholders' equity | $ | 969,991 | $ | 964,475 | ||||
| CANADA BREAD COMPANY, LIMITED Consolidated Statements of Earnings (In thousands of Canadian dollars, except share amounts) |
||||||||||||
| Three months ended | Twelve months ended | |||||||||||
| December 31, | December 31, | |||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||
| (Unaudited) | (Unaudited) | |||||||||||
| Sales | $ | 390,701 | $ | 400,280 | $ | 1,567,300 | $ | 1,595,456 | ||||
| Cost of goods sold | 308,973 | 328,043 | 1,255,760 | 1,284,432 | ||||||||
| Gross margin | $ | 81,728 | $ | 72,237 | $ | 311,540 | $ | 311,024 | ||||
| Selling, general and | ||||||||||||
| administrative expenses | 46,284 | 46,036 | 195,672 | 201,233 | ||||||||
| Earnings before the following: | $ | 35,444 | $ | 26,201 | $ | 115,868 | $ | 109,791 | ||||
| Restructuring and other related costs | (3,814) | (12,162) | (11,073) | (46,357) | ||||||||
| Other income (expense) | 277 | 50 | 1,635 | 414 | ||||||||
| Earnings before interest and | ||||||||||||
| income taxes | $ | 31,907 | $ | 14,089 | $ | 106,430 | $ | 63,848 | ||||
| Interest expense | 354 | 180 | 1,547 | 1,052 | ||||||||
| Earnings before income taxes | $ | 31,553 | $ | 13,909 | $ | 104,883 | $ | 62,796 | ||||
| Income taxes | 9,182 | 6,152 | 30,683 | 10,845 | ||||||||
| Net earnings | $ | 22,371 | $ | 7,757 | $ | 74,200 | $ | 51,951 | ||||
| Earnings per share attributable to | ||||||||||||
| common shareholders | ||||||||||||
| Basic and diluted earnings per share | $ | 0.88 | $ | 0.31 | $ | 2.92 | $ | 2.04 | ||||
| Weighted average number | ||||||||||||
| of shares (millions) | 25.4 | 25.4 | 25.4 | 25.4 | ||||||||
| CANADA BREAD COMPANY, LIMITED Consolidated Statements of Comprehensive Income (In thousands of Canadian dollars) |
|||||||||||||
| Three months ended | Twelve months ended | ||||||||||||
| December 31, | December 31, | ||||||||||||
| 2012 | 2011 | 2012 | 2011 | ||||||||||
| (Unaudited) | (Unaudited) | ||||||||||||
| Net earnings | $ | 22,371 | $ | 7,757 | $ | 74,200 | $ | 51,951 | |||||
| Other comprehensive income (loss) | |||||||||||||
| Change in accumulated foreign currency | |||||||||||||
| translation adjustment | 2,293 | (5,247) | (1,980) | 3,307 | |||||||||
| Change in unrealized gains and losses | |||||||||||||
| on cash flow hedges | 79 | (473) | (571) | 574 | |||||||||
| Change in actuarial gains and losses | 2,332 | (948) | (6,532) | (14,448) | |||||||||
| $ | 4,704 | $ | (6,668) | $ | (9,083) | $ | (10,567) | ||||||
| Comprehensive income | $ | 27,075 | $ | 1,089 | $ | 65,117 | $ | 41,384 | |||||
| CANADA BREAD COMPANY, LIMITED Consolidated Statements of Changes in Shareholders' Equity (In thousands of Canadian dollars) |
||||||||||||||
| Total | ||||||||||||||
| accumulated | ||||||||||||||
| other | Total | |||||||||||||
| Share | Retained | comprehensive | shareholders' | |||||||||||
| capital | earnings | loss | equity | |||||||||||
| Balance at December 31, 2011 | $ | 142,965 | $ | 530,852 | $ | (10,215) | $ | 663,602 | ||||||
| Net earnings | - | 74,200 | - | 74,200 | ||||||||||
| Other comprehensive loss | - | (6,532) | (2,551) | (9,083) | ||||||||||
| Dividends declared ($1.70 per share) | - | (43,198) | - | (43,198) | ||||||||||
| Balance at December 31, 2012 | $ | 142,965 | $ | 555,322 | $ | (12,766) | $ | 685,521 | ||||||
| Total | ||||||||||||||
| accumulated | ||||||||||||||
| other | Total | |||||||||||||
| Share | Retained | comprehensive | shareholders' | |||||||||||
| capital | earnings | loss | equity | |||||||||||
| Balance at December 31, 2010 | $ | 142,965 | $ | 510,126 | $ | (14,096) | $ | 638,995 | ||||||
| Net earnings | - | 51,951 | - | 51,951 | ||||||||||
| Other comprehensive income (loss) | - | (14,448) | 3,881 | (10,567) | ||||||||||
| Dividends declared ($0.66 per share) | - | (16,777) | - | (16,777) | ||||||||||
| Balance at December 31, 2011 | $ | 142,965 | $ | 530,852 | $ | (10,215) | $ | 663,602 | ||||||
| CANADA BREAD COMPANY, LIMITED Consolidated Statements of Cash Flows (In thousands of Canadian dollars) |
|||||||||||||||
| Three months ended | Twelve months ended | ||||||||||||||
| December 31, | December 31, | ||||||||||||||
| 2012 | 2011 | 2012 | 2011 | ||||||||||||
| (Unaudited) | (Unaudited) | ||||||||||||||
| CASH PROVIDED BY (USED IN): | |||||||||||||||
| Operating activities | |||||||||||||||
| Net earnings | $ | 22,371 | $ | 7,757 | $ | 74,200 | $ 51,951 | ||||||||
| Add (deduct) items not affecting cash: | |||||||||||||||
| Depreciation and amortization | 13,003 | 12,793 | 49,525 | 47,839 | |||||||||||
| Deferred income taxes | 1,526 | (6,003) | 2,080 | (6,295) | |||||||||||
| Income tax current | 7,656 | 11,818 | 28,603 | 17,140 | |||||||||||
| Interest expense | 354 | 180 | 1,547 | 1,052 | |||||||||||
| (Gain) loss on sale of long-lived assets | (341) | (36) | (478) | 232 | |||||||||||
| Change in provision for restructuring and | |||||||||||||||
| other related costs | 983 | 7,952 | (6,772) | 32,232 | |||||||||||
| Decrease in pension liability | (1,376) | - | (3,251) | - | |||||||||||
| Net income taxes paid | (6,043) | 1,684 | (24,265) | (20,203) | |||||||||||
| Interest paid | (329) | 45 | (1,533) | (750) | |||||||||||
| Other | 599 | (2,074) | 903 | (1,817) | |||||||||||
| Change in non-cash operating | |||||||||||||||
| working capital | (9,899) | 14,605 | (11,452) | (18,287) | |||||||||||
| Cash provided by (used in) operating activities | $ | 28,504 | $ | 48,721 | $ | 109,107 | $ | 103,094 | |||||||
| Financing activities | |||||||||||||||
| Dividends paid | $ | (12,733) | $ | (5,085) | $ | (35,573) | $ | (16,777) | |||||||
| Net increase in long-term debt | (99) | - | (921) | - | |||||||||||
| Cash used in financing activities | $ | (12,832) | $ | (5,085) | $ | (36,494) | $ | (16,777) | |||||||
| Investing activities | |||||||||||||||
| Additions to long-term assets | $ | (12,357) | $ | (23,802) | $ | (44,537) | $ | (112,517) | |||||||
| Capitalization of interest expense to | |||||||||||||||
| long-term assets | - | - | - | (119) | |||||||||||
| Proceeds from sale of long-term assets | 1,387 | 536 | 6,269 | 5,830 | |||||||||||
| Change in intangible assets | - | (31) | - | (65) | |||||||||||
| Cash used in investing activities | $ | (10,970) | $ | (23,297) | $ | (38,268) | $ | (106,871) | |||||||
| Increase (decrease) in cash and | |||||||||||||||
| cash equivalents | $ | 4,702 | $ | 20,339 | $ | 34,345 | $ | (20,554) | |||||||
| Net cash and cash equivalents, | |||||||||||||||
| beginning of period | 85,713 | 35,731 | 56,070 | 76,624 | |||||||||||
| Net cash and cash equivalents, end of period | $ | 90,415 | $ | 56,070 | $ | 90,415 | $ | 56,070 | |||||||
| Net cash and cash equivalents is comprised of: | |||||||||||||||
| Cash and cash equivalents | $ | 90,415 | $ | 59,223 | $ | 90,415 | $ | 59,223 | |||||||
| Bank indebtedness | - | (3,153) | - | (3,153) | |||||||||||
| Net cash and cash equivalents, end of period | $ | 90,415 | $ | 56,070 | $ | 90,415 | $ | 56,070 | |||||||
| |
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| CANADA BREAD COMPANY, LIMITED Segmented Financial Information (In thousands of Canadian dollars) |
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| Three months ended | Twelve months ended | ||||||||||||||
| December 31, | December 31, | ||||||||||||||
| 2011 | 2010 | 2011 | 2010 | ||||||||||||
| (Unaudited) | (Unaudited) | ||||||||||||||
| Sales | |||||||||||||||
| Fresh Bakery | $ | 254,809 | $ | 261,963 | $ | 1,059,865 | $ | 1,087,335 | |||||||
| Frozen Bakery | 135,892 | 138,317 | 507,435 | 508,121 | |||||||||||
| $ | 390,701 | $ | 400,280 | $ | 1,567,300 | $ | 1,595,456 | ||||||||
| Earnings before restructuring and | |||||||||||||||
| other related costs and other income | |||||||||||||||
| Fresh Bakery | $ | 24,631 | $ | 19,463 | $ | 91,171 | $ | 99,857 | |||||||
| Frozen Bakery | 10,813 | 6,738 | 24,697 | 9,934 | |||||||||||
| $ | 35,444 | $ | 26,201 | $ | 115,868 | $ | 109,791 | ||||||||
| Capital expenditures | |||||||||||||||
| Fresh Bakery | $ | 8,142 | $ | 20,793 | $ | 32,695 | $ | 95,788 | |||||||
| Frozen Bakery | 4,215 | 3,009 | 11,842 | 16,729 | |||||||||||
| $ | 12,357 | $ | 23,802 | $ | 44,537 | $ | 112,517 | ||||||||
| Depreciation and amortization | |||||||||||||||
| Fresh Bakery | $ | 8,226 | $ | 7,584 | $ | 30,848 | $ | 27,029 | |||||||
| Frozen Bakery | 4,777 | 5,209 | 18,677 | 20,810 | |||||||||||
| $ | 13,003 | $ | 12,793 | $ | 49,525 | $ | 47,839 | ||||||||
| As at | As at | ||||||||||||||
| December 31, | December 31, | ||||||||||||||
| 2012 | 2011 | ||||||||||||||
| Total assets | |||||||||||||||
| Fresh Bakery | $ | 504,062 | $ | 516,485 | |||||||||||
| Frozen Bakery | 356,311 | 368,534 | |||||||||||||
| Non-allocated assets | 109,618 | 79,456 | |||||||||||||
| $ | 969,991 | $ | 964,475 | ||||||||||||
| Goodwill | |||||||||||||||
| Fresh Bakery | $ | 125,892 | $ | 125,892 | |||||||||||
| Frozen Bakery | 138,351 | 140,121 | |||||||||||||
| $ | 264,243 | $ | 266,013 | ||||||||||||
SOURCE: Canada Bread Company, Limited
Investor Contact: Nick Boland,
VP Investor Relations: 416-926-2005
Media Contact: 416-926-2020
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