OTTAWA, May 31, 2018 /CNW/ - The Royal Canadian Mint (the "Mint" or the "Company") is pleased to release its financial results for the 13 weeks ended March 31, 2018, which provide insight into our activities, the markets influencing our businesses and our expectations for the year ahead.
"Our diversified businesses helped deliver solid first quarter results while the Mint weathers the impact of a softer global market for bullion," said Sandra L. Hanington, President and CEO of the Royal Canadian Mint. "We continue to innovate and win business on the world stage as we execute our strategy to enable a strong, sustainable future."
The financial results are for the 13 weeks ended March 31, 2018, and should be read in conjunction with the Company's Quarterly Report available at www.mint.ca. All monetary amounts are expressed in Canadian dollars, unless otherwise indicated.
Financial and Operational Highlights
- Consolidated profit before income tax and other items was $6.8 million for the quarter (2017 – $11.9 million).
- Consolidated profit for the period was $4.8 million for the quarter (2017 – $11.1 million).
- Consolidated revenue declined to $340.9 million in the first quarter of 2018 (2017 - $502.8 million) as lower overall bullion global market demand led to lower bullion volumes.
- Gold volumes were 108.5 thousand ounces (2017 – 228.2 thousand) while silver volumes were 4.8 million ounces (2017 – 5.0 million).
- Bullion ancillary services revenue increased 36% quarter over quarter as these services continue to expand.
- Shipment of 504.5 million foreign coins and blanks in the quarter (2017 – 269.7 million) resulted in an increase in revenue from the Foreign Circulation business as compared to the first quarter of 2017.
- As expected, sales of numismatic products were slower in the first quarter of 2018 having decreased to $28.0 million (2017 - $46.9 million) after a strong year in 2017 driven by Canada 150 product sales.
- Canadian circulation coin production was 69 million pieces in the quarter (2017 – 100 million pieces).
- Operating expenses decreased quarter over quarter to $22.4 million (2017 - $27.4 million) as the Mint continues to carefully manage expenses.
| Consolidated results and financial performance |
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| (in CAD $ millions for the 13 weeks ended March 31, 2018 and April 1, 2017) |
||||
| 13 weeks ended |
||||
| March 31, 2018 |
April 1, 2017 |
$ Change |
% Change |
|
| Revenue |
$ 340.9 |
$ 502.8 |
$ (161.9) |
(32) |
| Profit before income tax and other items (1) |
6.8 |
11.9 |
(5.1) |
(43) |
| Profit for the period |
4.8 |
11.1 |
(6.3) |
(57) |
| (1) |
A reconciliation from Profit for the period to Profit before income tax and other items is included on page 12 of the Mint's 2018 First Quarter Report. |
|||
| As at |
||||
| March 31, 2018 |
December 31, 2017 |
$ Change |
% Change |
|
| Cash |
$ 51.4 |
$ 56.3 |
$ (4.9) |
(9) |
| Inventories |
70.6 |
85.5 |
(14.9) |
(17) |
| Capital assets |
174.9 |
176.2 |
(1.3) |
(1) |
| Total assets |
376.5 |
377.8 |
(1.3) |
- |
| Working capital |
91.5 |
82.1 |
9.4 |
11 |
To read more of the Mint's First Quarter Report for 2018, please visit www.mint.ca.
About the Royal Canadian Mint
The Royal Canadian Mint is the Crown Corporation responsible for the minting and distribution of Canada's circulation coins. An ISO 9001 certified company, the Mint is recognized as one of the largest and most versatile mints in the world, offering a wide range of specialized, high quality coinage products and related services on an international scale. For more information on the Mint, its products and services, visit www.mint.ca.
FORWARD LOOKING STATEMENTS
This Earnings Release contains forward-looking statements that reflect management's expectations regarding the Mint's objectives, plans, strategies, future growth, results of operations, performance, and business prospects and opportunities. Forward-looking statements are typically identified by words or phrases such as "plans", "anticipates", "expects", "believes", "estimates", "intends", and other similar expressions. These forward-looking statements are not facts, but only estimates regarding expected growth, results of operations, performance, business prospects and opportunities (assumptions). While management considers these assumptions to be reasonable based on available information, they may prove to be incorrect. These estimates of future results are subject to a number of risks, uncertainties and other factors that could cause actual results to differ materially from what the Mint expects. These risks, uncertainties and other factors include, but are not limited to, those risks and uncertainties set forth in the Risks to Performance section of the Narrative Discussion as well as in Note 9 – Financial Instruments and Financial Risk Management to our Unuaudited Condensed Consolidated Financial Statements.
The forward-looking statements included in this Earnings Release are made only as of May 29, 2018, and the Mint does not undertake to publicly update these statements to reflect new information, future events or changes in circumstances or for any other reason after this date.
SOURCE Royal Canadian Mint
Alex Reeves, Senior Advisor, External Communications, Tel: (613) 949-5777, [email protected]
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