Maple Leaf Foods Reports Fourth Quarter and Full Year 2023 Financial Results
Delivers on its commitment to turn around its Plant Protein business
Maple Leaf records consolidated year over year sales and Adjusted EBITDA growth in 2023
TSX: MFI
www.mapleleaffoods.com
"In 2023 we made great progress in advancing our strategic Blueprint, delivering top-line growth of 2.7%, recording an increase of
"In the fourth quarter, our Meat Protein results fell below our expectations, as a result of global pork market dislocations that have persisted longer and deeper than we anticipated, and a challenging consumer demand environment, plus we still have a short distance to go to bring home the full benefits from our London Poultry and
Fourth Quarter 2023 Highlights
-
Total Company sales growth of 0.6% to$1,192.7 million , with an Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA")(i) margin of 10.1%. -
Meat Protein Group sales grew to$1,159.0 million , an increase of 0.8% year over year. Adjusted EBITDA was$122.0 million , Adjusted EBITDA margin was 10.5%, an improvement of 390 basis points from the fourth quarter of 2022. - London Poultry plant and
Bacon Centre of Excellence delivered approximately$25 million incremental Adjusted EBITDA. -
Plant Protein Group sales were$36.5 million . Plant Protein Group Adjusted EBITDA improved by$20.5 million year over year to a gain of$0.1 million , achieving the Company's Adjusted EBITDA target of neutral or better in the latter half of 2023. - Capital expenditures were
$40.8 million .
2023 Highlights
-
Total Company sales grew by 2.7% to$4,867.9 million , with an Adjusted EBITDA margin of 8.8%. -
Meat Protein Group sales grew to$4,736.2 million , an increase of 3.1%. Adjusted EBITDA was$463.0 million and Adjusted EBITDA Margin was 9.8%. - Plant Protein Group Sales were
$147.0 million . Plant Protein Group Adjusted EBITDA improved by 68.8% to a loss of$32.9 million . - Capital expenditures of
$196.6 million . - The Company had Net Debt(i) of
$1,747.5 million and undrawn committed credit of$447.2 million as at year end, and is focused on deleveraging the Balance Sheet.
(i) Refer to the section titled Non-IFRS Financial Measures in this news release. |
Financial Highlights
|
|
|
|
|
|
|
As at or for the |
|||||
Measure(i) (Unaudited) |
Three months ended |
Twelve months ended |
||||||||||
|
2023 |
|
2022 |
|
Change |
|
2023 |
|
2022 |
|
Change |
|
Sales |
|
$ 1,192.7 |
|
$ 1,185.5 |
|
0.6 % |
|
$ 4,867.9 |
|
$ 4,739.1 |
|
2.7 % |
Net (Loss) |
|
$ (9.3) |
|
$ (41.5) |
|
77.5 % |
|
$ (125.0) |
|
$ (311.9) |
|
59.9 % |
Basic Loss per Share |
|
$ (0.08) |
|
$ (0.34) |
|
76.5 % |
|
$ (1.03) |
|
$ (2.52) |
|
59.1 % |
Adjusted Operating Earnings(ii) |
|
$ 57.5 |
|
$ 1.8 |
|
nm (iii) |
|
$ 193.2 |
|
$ 65.7 |
|
194.0 % |
Adjusted (Loss) Earnings per Share(ii) |
|
$ 0.08 |
|
$ (0.28) |
|
nm (iii) |
|
$ 0.09 |
|
$ (0.26) |
|
nm (iii) |
Adjusted EBITDA - |
|
$ 122.0 |
|
$ 76.1 |
|
60.3 % |
|
$ 463.0 |
|
$ 378.7 |
|
22.3 % |
Adjusted EBITDA - |
|
$ 0.1 |
|
$ (20.4) |
|
nm (iii) |
|
$ (32.9) |
|
$ (105.4) |
|
68.8 % |
Free Cash Flow(ii) |
|
$ 63.4 |
|
$ 20.7 |
|
206.3 % |
|
$ 89.0 |
|
$ (20.9) |
|
nm (iii) |
|
|
|
|
|
|
|
|
$ — |
|
$ 9.6 |
|
nm (iii) |
Net Debt(ii) |
|
|
|
|
|
|
|
$ (1,747.5) |
|
$ (1,619.3) |
|
7.9 % |
Adjusted EBT (ii) |
|
$ 16.4 |
|
$ (21.8) |
|
nm (iii) |
|
$ 34.2 |
|
$ 4.4 |
|
677.3 % |
(i) All financial measures in millions of dollars except Basic and Adjusted Earnings per Share. |
(ii) Refer to the section titled Non-IFRS Financial Measures in this news release. |
(iii) Not meaningful . |
Fourth Quarter 2023
Sales for the fourth quarter increased 0.6% to
Net loss for the fourth quarter of 2023 was
Adjusted Operating Earnings for the fourth quarter of 2023 were
Adjusted EBITDA Margin for the fourth quarter increased to 10.1% from 4.7% last year, consistent with the factors noted above.
Adjusted Earnings Before Taxes ("Adjusted EBT") for the fourth quarter of 2023 were
Basic Earnings per Share was a loss of $0.08 for the fourth quarter of 2023 compared to a loss of
Adjusted Earnings per Share in the fourth quarter of 2023 was
Full Year 2023
Sales for 2023 were
Net loss for 2023 was
Adjusted Operating Earnings for 2023 were
Adjusted Earnings Before Taxes ("Adjusted EBT") for 2023 were
For further discussion on key metrics and a discussion of results by operating segment, refer to the section titled Operating Review.
Note: Several items are excluded from the discussions of underlying earnings performance as they are not representative of ongoing operational activities. Refer to the section entitled Non-IFRS Financial Measures at the end of this news release for a description and reconciliation of all non-IFRS financial measures. |
Operating Review
During the year ended
Fourth Quarter 2023
The following table summarizes the Company's sales, gross profit, SG&A expenses, Adjusted Operating Earnings, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted EBT by operating segment for the fourth quarters ended
|
Three months ended |
Three months ended |
||||||
($ millions)(i) (Unaudited) |
Meat |
Plant |
Non- |
Total |
Meat |
Plant |
Non- |
Total |
Sales |
$ 1,159.0 |
36.5 |
(2.8) |
$ 1,192.7 |
$ 1,149.6 |
40.0 |
(4.1) |
$ 1,185.5 |
Gross profit (loss) |
$ 124.0 |
5.1 |
6.4 |
$ 135.5 |
$ 82.2 |
(10.3) |
28.7 |
$ 100.6 |
Selling, General and Administrative expenses |
$ 91.3 |
9.9 |
— |
$ 101.3 |
$ 80.0 |
15.8 |
— |
$ 95.9 |
Adjusted Operating (Loss) Earnings (iii) |
$ 62.3 |
(4.8) |
— |
$ 57.5 |
$ 28.0 |
(26.2) |
— |
$ 1.8 |
Adjusted EBITDA (iii) |
$ 122.0 |
0.1 |
(1.9) |
$ 120.2 |
$ 76.1 |
(20.4) |
(0.5) |
$ 55.3 |
Adjusted EBITDA Margin (iii) |
10.5 % |
0.3 % |
n/a |
10.1 % |
6.6 % |
(51.0) % |
n/a |
4.7 % |
Adjusted EBT (iii) |
$ 23.2 |
(5.0) |
(1.9) |
$ 16.4 |
$ 6.7 |
(28.0) |
(0.5) |
$ (21.7) |
(i) |
Totals may not add due to rounding. |
(ii) |
Non-allocated includes eliminations of inter-segment sales and associated cost of goods sold, changes in the fair value of biological assets and derivatives, and non-allocated costs which are comprised of expenses not separately identifiable to reportable segments or are not part of the measures used by the Company when assessing a segment's operating results. |
(iii) |
Refer to the section titled Non-IFRS Financial Measures in this news release. |
Sales for the fourth quarter increased 0.8% to
Gross profit for the fourth quarter of 2023 was
SG&A expenses for the fourth quarter of 2023 were
Adjusted Operating Earnings for the fourth quarter of 2023 were
Adjusted EBITDA Margin for the fourth quarter was 10.5% compared to 6.6% last year, consistent with the factors noted above as well as benefits from
Adjusted EBT for the fourth quarter of 2023 were
Sales for the fourth quarter were
Gross profit for the fourth quarter of 2023 was
SG&A expenses for the fourth quarter of 2023 were
Adjusted Operating Earnings for the fourth quarter of 2023 were a loss of
Adjusted EBITDA for the fourth quarter of 2023 was
Full Year 2023
The following table summarizes the Company's sales, gross profit, SG&A expenses, Adjusted Operating Earnings, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted EBT by operating segment for the years ended
|
2023 |
2022 |
||||||
($ millions)(i) |
Meat |
Plant |
Non- |
Total |
Meat |
Plant |
Non- |
Total |
Sales |
$ 4,736.2 |
147.0 |
(15.3) |
$ 4,867.9 |
$ 4,593.6 |
169.3 |
(23.9) |
$ 4,739.1 |
Gross profit (loss) |
$ 478.2 |
(2.2) |
(24.6) |
$ 451.4 |
$ 474.7 |
(36.5) |
(14.0) |
$ 424.1 |
Selling, General and Administrative expenses |
$ 355.4 |
49.7 |
— |
$ 405.1 |
$ 338.9 |
92.8 |
— |
$ 431.7 |
Adjusted Operating (Loss) Earnings(iii) |
$ 245.2 |
(51.9) |
— |
$ 193.2 |
$ 190.3 |
(124.5) |
— |
$ 65.7 |
Adjusted EBITDA(iii) |
$ 463.0 |
(32.9) |
(2.5) |
$ 427.6 |
$ 378.7 |
(105.4) |
(0.5) |
$ 272.9 |
Adjusted EBITDA Margin(iii) |
9.8 % |
(22.4) % |
n/a |
8.8 % |
8.2 % |
(62.2) % |
n/a |
5.8 % |
Adjusted EBT (iii) |
$ 89.5 |
(52.8) |
(2.5) |
$ 34.2 |
$ 139.0 |
(134.1) |
(0.5) |
$ 4.4 |
(i) |
Totals may not add due to rounding. |
(ii) |
Non-allocated includes eliminations of inter-segment sales and associated cost of goods sold, changes in the fair value of biological assets and derivatives, and non-allocated costs which are comprised of expenses not separately identifiable to reportable segments or are not part of the measures used by the Company when assessing a segment's operating results. |
(iii) |
Refer to the section titled Non-IFRS Financial Measures in this news release. |
Sales for 2023 increased 3.1% to
Gross profit for 2023 was largely flat year over year at
SG&A expenses for 2023 were
Adjusted Operating Earnings for 2023 were
Adjusted EBITDA for 2023 were
Adjusted EBT for 2023 were
Sales for 2023 were
Gross profit for 2023 was a loss of
SG&A expenses for 2023 were
Adjusted Operating Earnings for 2023 were a loss of
Adjusted EBITDA for 2023 was a loss of
Other Matters
On
Conference Call
A conference call will be held at 8:00 a.m. ET on
A webcast of the fourth quarter conference call will also be available at: https://www.mapleleaffoods.com.
The Company's full consolidated financial statements ("Consolidated Financial Statements") and related Management's Discussion and Analysis are available on the Company's website.
An investor presentation related to the Company's fourth quarter financial results is available at www.mapleleaffoods.com and can be found under Presentations and Webcasts on the Investors page.
Outlook
The Company recognizes that macro-economic challenges and global conflict continue to define the post-pandemic environment. This is resulting in higher interest rates, inflation, supply chain tensions, and pressures on agricultural, commodity and foreign exchange markets. As a result, consumers and business alike are adapting their behaviours which contributes to shifts in demand and product mix. The Company leverages its data-driven insights to stay close to these dynamics, and it is confident in the resilience of its brands, business model and strategy to manage through these transitory conditions.
In the near term, the Company is realigning its organizational structure to align with the refresh of its strategic blueprint by bringing together its Meat and Plant Protein businesses. This shift supports a clear and consistent focus on driving profitable growth in
For the full year 2024, the Company expects:
- Low-to mid-single digit revenue growth
- Adjusted EBITDA margin expansion from 2023, supported by the benefits of:
- The profitable growth of its leading portfolio of Meat and Plant Protein brands
- Returns from investments in the London Poultry Plant and the
Bacon Centre of Excellence - Leadership in Sustainable Meats
- Driving operational and cost efficiency
- Profitable growth in the Plant Protein category, having achieved the target of Adjusted EBITDA neutral exiting 2023
- To achieve its Meat Protein target of 14% to 16% Adjusted EBITDA Margin when markets normalize
- To generate strong free cash flow and delever its balance sheet by:
- Improving profitability
- Generating the targeted returns on its capital investments at the London Poultry Plant and the
Bacon Centre of Excellence , including reducing start-up expenses, maximizing efficiencies and onboarding new customers - Exercising disciplined capital management, with total capital expenditures this year expected to be in a more typical range of
$170 -$190 million largely focused on maintenance capital and optimization of its existing network
Non-IFRS Financial Measures
The Company uses the following non-IFRS measures: Adjusted Operating Earnings, Adjusted Earnings per Share, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBT,
Adjusted Operating Earnings, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted EBT
Adjusted Operating Earnings, Adjusted EBITDA and Adjusted EBITDA Margin are non-IFRS measures used by Management to evaluate financial operating results. Adjusted Operating Earnings is defined as earnings before income taxes adjusted for items that are not considered representative of ongoing operational activities of the business and certain items where the economic impact of the transactions will be reflected in earnings in future periods when the underlying asset is sold or transferred. Adjusted EBITDA is defined as Adjusted Operating Earnings plus depreciation and intangible asset amortization, adjusted for items included in other expense that are considered representative of ongoing operational activities of the business. Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by sales. Adjusted EBT is used annually by the Company to evaluate its performance and is a component of calculating bonus entitlements under the Company's short term incentive plan. It is defined as Adjusted EBITDA, less depreciation and amortization, and interest expense. Interest expense is allocated to the operating segments for this metric on a legal entity basis.
The tables below provide a reconciliation of earnings (loss) before income taxes as reported under IFRS in the Consolidated Financial Statements to Adjusted Operating Earnings, Adjusted EBITDA and Adjusted EBT for the three and twelve months ended
|
Three months ended |
Three months ended |
||||||
($ millions)(i) |
Meat |
Plant |
Non- |
Total |
Meat |
Plant |
Non- |
Total |
(Loss) earnings before income taxes |
$ 32.8 |
(4.8) |
(36.7) |
$ (8.7) |
$ (0.4) |
(29.4) |
0.2 |
$ (29.6) |
Interest expense and other financing costs |
— |
— |
41.2 |
41.2 |
— |
— |
23.0 |
23.0 |
Other expense (income) |
(1.0) |
0.1 |
1.8 |
0.9 |
0.5 |
(0.4) |
5.5 |
5.5 |
Restructuring and other related costs |
0.9 |
(0.1) |
— |
0.8 |
2.1 |
3.6 |
— |
5.7 |
Earnings (loss) from operations |
$ 32.7 |
(4.8) |
6.4 |
$ 34.2 |
$ 2.2 |
(26.2) |
28.7 |
$ 4.7 |
Start-up expenses from |
29.7 |
— |
— |
29.7 |
25.8 |
— |
— |
25.8 |
Change in fair value of biological assets |
— |
— |
(8.9) |
(8.9) |
— |
— |
(27.0) |
(27.0) |
Unrealized (gain) loss on derivative contracts |
— |
— |
2.5 |
2.5 |
— |
— |
(1.7) |
(1.7) |
Adjusted Operating Earnings |
$ 62.3 |
(4.8) |
— |
$ 57.5 |
$ 28.0 |
(26.2) |
— |
$ 1.8 |
Depreciation and amortization |
58.6 |
5.0 |
— |
63.6 |
48.6 |
5.4 |
— |
54.0 |
Items included in other income (expense) representative of ongoing operations(iv) |
1.0 |
(0.1) |
(1.9) |
(0.9) |
(0.5) |
0.4 |
(0.5) |
(0.6) |
Adjusted EBITDA |
$ 122.0 |
0.1 |
(1.9) |
$ 120.2 |
$ 76.1 |
(20.4) |
(0.5) |
$ 55.3 |
Adjusted EBITDA Margin |
10.5 % |
0.3 % |
n/a |
10.1 % |
6.6 % |
(51.0) % |
n/a |
4.7 % |
Interest expense and other financing costs |
(41.2) |
(0.1) |
— |
(41.2) |
(20.9) |
(2.2) |
— |
(23.0) |
Interest income |
1.1 |
— |
— |
1.1 |
— |
— |
— |
— |
Depreciation and amortization |
(58.6) |
(5.0) |
— |
(63.6) |
(48.6) |
(5.4) |
— |
(54.0) |
Adjusted EBT |
$ 23.2 |
(5.0) |
(1.9) |
$ 16.4 |
$ 6.7 |
(28.0) |
(0.5) |
$ (21.7) |
(i) |
Totals may not add due to rounding. |
(ii) |
Non-allocated includes eliminations of inter-segment sales and associated cost of goods sold, and non-allocated costs which are comprised of income and expenses not separately identifiable to reportable segments or are not part of the measures used by the Company when assessing a segment's operating results. |
(iii) |
Start-up expenses are temporary costs as a result of operating new facilities that are or have been classified as |
(iv) |
Primarily includes certain costs associated with sustainability projects, gains and losses on the impairment and sale of long-term assets, gains and losses on investments, and other miscellaneous expenses. |
|
|
|
Twelve months ended |
Twelve months ended |
||||||
($ millions)(i) |
Meat |
Plant |
Non- |
Total |
Meat |
Plant |
Non- |
Total |
Earnings (loss) before income taxes |
$ 105.3 |
(68.0) |
(179.9) |
$ (142.6) |
$ 123.2 |
(344.6) |
(77.6) |
$ (299.0) |
Interest expense and other financing costs |
— |
— |
150.9 |
150.9 |
— |
— |
56.0 |
56.0 |
Impairment of goodwill |
— |
— |
— |
— |
— |
190.9 |
— |
190.9 |
Other expense |
9.2 |
0.7 |
4.5 |
14.4 |
5.0 |
1.8 |
7.5 |
14.4 |
Restructuring and other related costs |
8.3 |
15.4 |
— |
23.7 |
7.5 |
22.6 |
— |
30.1 |
Earnings (loss) from operations |
$ 122.8 |
(51.9) |
(24.6) |
$ 46.3 |
$ 135.8 |
(129.3) |
(14.0) |
$ (7.6) |
Start-up expenses from |
122.3 |
— |
— |
122.3 |
54.5 |
4.8 |
— |
59.3 |
Change in fair value of biological assets |
— |
— |
19.6 |
19.6 |
— |
— |
15.1 |
15.1 |
Unrealized gain on derivative contracts |
— |
— |
5.0 |
5.0 |
— |
— |
(1.1) |
(1.1) |
Adjusted Operating Earnings |
$ 245.2 |
(51.9) |
— |
$ 193.2 |
$ 190.3 |
(124.5) |
— |
$ 65.7 |
Depreciation and amortization |
227.0 |
19.7 |
— |
246.7 |
193.5 |
18.9 |
— |
212.4 |
Items included in other income (expense) representative of ongoing operations(iv) |
(9.2) |
(0.7) |
(2.5) |
(12.4) |
(5.0) |
0.2 |
(0.5) |
(5.3) |
Adjusted EBITDA |
$ 463.0 |
(32.9) |
(2.5) |
$ 427.6 |
$ 378.7 |
(105.4) |
(0.5) |
$ 272.9 |
Adjusted EBITDA Margin |
9.8 % |
(22.4 %) |
n/a |
8.8 % |
8.2 % |
(62.2 %) |
n/a |
5.8 % |
Interest expense and other financing costs |
(150.6) |
(0.2) |
— |
(150.9) |
(46.3) |
(9.8) |
— |
(56.0) |
Interest income |
4.2 |
— |
— |
4.2 |
— |
— |
— |
— |
Depreciation and amortization |
(227.0) |
(19.7) |
— |
(246.7) |
(193.5) |
(18.9) |
— |
(212.4) |
Adjusted EBT |
$ 89.5 |
(52.8) |
(2.5) |
$ 34.2 |
$ 139.0 |
(134.1) |
(0.5) |
$ 4.4 |
(i) |
Totals may not add due to rounding. |
(ii) |
Non-allocated includes eliminations of inter-segment sales and associated cost of goods sold, and non-allocated costs which are comprised of income and expenses not separately identifiable to reportable segments or are not part of the measures used by the Company when assessing a segment's operating results. |
(iii) |
Start-up expenses are temporary costs as a result of operating new facilities that are or have been classified as |
(iv) |
Primarily includes certain costs associated with sustainability projects, gains and losses on the sale of long-term assets, legal settlements, and other miscellaneous expenses. |
Adjusted Earnings per Share
Adjusted Earnings per Share, a non-IFRS measure, is used by Management to evaluate financial operating results. It is defined as basic earnings per share and is adjusted on the same basis as Adjusted Operating Earnings. The table below provides a reconciliation of basic earnings per share as reported under IFRS in the Consolidated Financial Statements to Adjusted Earnings per Share for the years ended
($ per share) (Unaudited) |
Three months ended |
Twelve months ended |
||||||
2023 |
2022 |
2023 |
2022 |
|||||
Basic loss per share |
|
$ (0.08) |
|
$ (0.34) |
|
$ (1.03) |
|
$ (2.52) |
Impairment of goodwill |
|
— |
|
— |
|
— |
|
1.54 |
Restructuring and other related costs(i) |
|
— |
|
0.04 |
|
0.18 |
|
0.20 |
Items included in other expense not considered |
|
0.01 |
|
0.03 |
|
0.04 |
|
0.06 |
Start-up expenses from |
|
0.18 |
|
0.16 |
|
0.75 |
|
0.36 |
Change in fair value of biological assets |
|
(0.05) |
|
(0.16) |
|
0.12 |
|
0.09 |
Change in unrealized and deferred loss (gain) on |
|
0.02 |
|
(0.01) |
|
0.03 |
|
(0.01) |
Adjusted Earnings per Share (iv) |
|
$ 0.08 |
|
$ (0.28) |
|
$ 0.09 |
|
$ (0.26) |
(i) |
Includes per share impact of restructuring and other related costs, net of tax. |
(ii) |
Primarily includes legal fees and settlements, gains or losses on investment property, and transaction related costs, net of tax. |
(iii) |
Start-up expenses are temporary costs as a result of operating new facilities that are or have been classified as |
(iv) |
Totals may not add due to rounding. |
($ thousands) |
|
2023 |
|
2022 |
Property and equipment and intangibles at |
|
$ 2,663,985 |
|
$ 2,554,483 |
Other capital and intangible assets at |
|
2,654,419 |
|
1,811,164 |
|
|
$ 9,566 |
|
$ 743,319 |
Additions |
|
41,931 |
|
163,665 |
Transfers from |
|
(51,497) |
|
(897,418) |
|
|
$ — |
|
$ 9,566 |
Other capital and intangible assets at |
|
2,596,839 |
|
2,654,419 |
Property and equipment and intangibles at |
|
$ 2,596,839 |
|
$ 2,663,985 |
|
|
|
|
|
|
|
$ — |
|
$ 9,461 |
(i) |
Other capital and intangible assets consists of property and equipment and intangibles that do not meet the definition of |
(ii) |
Does not include |
(iii) |
Assumed to be fully funded by debt to the extent that the Company has Net Debt outstanding. |
Net Debt
The following table reconciles Net Debt to amounts reported under IFRS in the Company's Consolidated Financial Statements and calculates the Net Debt to Adjusted EBITDA ratio as at
|
|
As at |
||
($ thousands) |
|
2023 |
|
2022 |
Cash and cash equivalents |
|
$ 203,363 |
|
$ 91,076 |
Current portion of long-term debt |
|
$ (400,735) |
|
$ (921) |
Long-term debt |
|
(1,550,080) |
|
(1,709,493) |
Total debt |
|
$ (1,950,815) |
|
$ (1,710,414) |
Net Debt |
|
$ (1,747,452) |
|
$ (1,619,338) |
Adjusted EBITDA |
|
427,588 |
|
272,874 |
Net Debt to Adjusted EBITDA |
|
4.1 |
|
5.9 |
Free Cash Flow
Free Cash Flow, a non-IFRS measure, is used by Management to evaluate cash flow after investing in the maintenance of the Company's asset base. It is defined as cash provided by operations, less
($ thousands) |
Three months ended |
|
Twelve months ended |
||||||
2023 |
2022 |
|
2023 |
|
2022 |
||||
Cash provided by operating activities |
|
$ 83,012 |
|
$ 42,320 |
|
|
$ 176,883 |
|
$ 49,318 |
|
|
(19,235) |
|
(21,528) |
|
|
(86,602) |
|
(69,889) |
Interest paid and capitalized related to |
|
(377) |
|
(88) |
|
|
(1,267) |
|
(323) |
Free Cash Flow |
|
$ 63,400 |
|
$ 20,704 |
|
|
$ 89,014 |
|
$ (20,894) |
(i) |
|
Return on Net Assets ("RONA")
RONA is calculated by dividing tax effected earnings from operations (adjusted for items which are not considered representative of the underlying operations of the business) by average monthly net assets. Net assets are defined as total assets (excluding cash and deferred tax assets) less non-interest bearing liabilities (excluding deferred tax liabilities). Management believes that RONA is an appropriate basis upon which to evaluate long-term financial performance.
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 law. These statements are based on current expectations, estimates, projections, beliefs, judgements and assumptions based on information available at the time the applicable forward-looking statement was made and in light of the Company's experience combined with its perception of historical trends. Such statements include, but are not limited to, statements with respect to objectives and goals, in addition to statements with respect to beliefs, plans, targets, goals, objectives, expectations, anticipations, estimates, and intentions. Forward-looking statements are typically identified by words such as "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "could", "would", "believe", "plan", "intend", "design", "target", "undertake", "view", "indicate", "maintain", "explore", "entail", "schedule", "objective", "strategy", "likely", "potential", "outlook", "aim", "propose", "goal", and similar expressions suggesting future events or future performance. These statements are not guarantees of future performance and involve assumptions, risks and uncertainties that are difficult to predict.
By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. The Company believes the expectations reflected in the forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon.
Specific forward-looking information in this document may include, but is not limited to, statements with respect to:
- assumptions about the post-pandemic economic recovery, including the implications of inflationary pressures on customer and consumer behaviour, supply chains and competitive dynamics;
- expected future cash flows and the sufficiency thereof, sources of capital at attractive rates, future contractual obligations, future financing options, renewal of credit facilities, compliance with credit facility covenants, and availability of capital to fund growth plans, operating obligations and dividends;
- future performance, including future financial objectives, goals and targets, category growth analysis, expected capital spend and expected SG&A expenditures, global pork market dynamics,
Japan export market margin outlook, labour markets, inflationary pressures (including the ability to price for inflation); - potential for a recurrence of a cybersecurity incident on the Company's systems, business and operations, as well as the ability to mitigate the financial and operational impacts, the success of remediation and recovery efforts, the implications of data exfiltration, and other ongoing risks associated with cybersecurity;
- the execution of the Company's business strategy, including the development and expected timing of business initiatives, brand expansion and repositioning, plant protein category investment and performance, market access in
China andJapan , capital allocation decisions (including investment in share repurchases under the NCIB) and investment in potential growth opportunities and the expected returns associated therewith; - the impact of international trade conditions and markets on the Company's business, including access to markets, implications associated with the spread of foreign animal disease (such as African Swine Fever ("ASF")) and other animal diseases such as Avian Influenza, as well as other social, economic and political factors that affect trade, including global conflicts;
- competitive conditions and the Company's ability to position itself competitively in the markets in which it competes;
- capital projects, including planning, construction, estimated expenditures, schedules, approvals, expected capacity, in-service dates and anticipated benefits of construction of new facilities and expansions of existing facilities;
- the Company's dividend policy, including future levels and sustainability of cash dividends, the tax treatment thereof and future dividend payment dates;
- the impact of commodity prices and foreign exchange impacts on the Company's operations and financial performance, including the use and effectiveness of hedging instruments;
- operating risks, including the execution, monitoring and continuous improvement of the Company's food safety programs, animal health initiatives, cost reduction initiatives, and service levels (including service level penalties);
- the implementation, cost and impact of environmental sustainability initiatives, the ability of the Company to achieve its sustainability objectives, changing climate and sustainability laws and regulation, changes in customer and consumer expectations related to sustainability matters, as well as the anticipated future cost of remediating environmental liabilities;
- the adoption of new accounting standards and the impact of such adoption on the financial position of the Company;
- expectations regarding pension plan performance, including future pension plan assets, liabilities and contributions; and
- developments and implications of actual or potential legal actions.
Various factors or assumptions are typically applied by the Company in drawing conclusions or making the forecasts, projections, predictions or estimations set out in the forward-looking statements. These factors and assumptions are based on information currently available to the Company, including information obtained by the Company from third-party sources and include but are not limited to the following:
- expectations regarding the adaptations in operations, supply chain, customer and consumer behaviour, economic patterns (including but not limited to global pork markets), foreign exchange rates, international trade dynamics and access to capital, including possible presence or absence of structural changes associated with economic recovery since the pandemic;
- the competitive environment, associated market conditions and market share metrics, category growth or contraction, the expected behaviour of competitors and customers and trends in consumer preferences;
- the success of the Company's business strategy and the relationship between pricing, inflation, volume and sales of the Company's products;
- prevailing commodity prices (especially in pork and feed markets), interest rates, tax rates and exchange rates;
- potential impacts related to cybersecurity matters, including security costs, the potential for a future incident, the risks associated with data exfiltration, the availability of insurance, the effectiveness of remediation and prevention activities, third party activities, ongoing impacts, customer, consumer and supplier responses and regulatory considerations;
- the economic condition of and the sociopolitical dynamics between
Canada , theU.S. ,Japan andChina , and the ability of the Company to access markets and source ingredients and other inputs in light of global sociopolitical disruption, and the ongoing impact of global conflicts on inflation, trade and markets; - the spread of foreign animal disease (including ASF and Avian Influenza), preparedness strategies to manage such spread, and implications for all protein markets;
- the availability of and access to capital to fund future capital requirements and ongoing operations;
- expectations regarding participation in and funding of the Company's pension plans;
- the availability of insurance coverage to manage certain liability exposures;
- the extent of future liabilities and recoveries related to legal claims;
- prevailing regulatory, tax and environmental laws; and
- future operating costs and performance, including the Company's ability to achieve operating efficiencies and maintain sales volumes, turnover of inventories and turnover of accounts receivable.
Readers are cautioned that these assumptions may prove to be incorrect in whole or in part. The Company's actual results may differ materially from those anticipated in any forward-looking statements.
Factors that could cause actual results or outcomes to differ materially from the results expressed, implied, or projected in the forward-looking statements contained in this document include, among other things, risks associated with the following:
- presence or absence of adaptations or structural changes arising since the economic recovery from the pandemic which may have implications for the operations and financial performance of the Company, as well the ongoing implications for macro socio-economic trends;
- macro economic trends, including inflation, consumer behaviour, recessionary indicators, labour availability and labour market dynamics and international trade trends (including global pork markets);
- the results of the Company's execution of its business plans, the degree to which benefits are realized or not, and the timing associated realizing those benefits, including the implications on cash flow;
- competition, market conditions, and the activities of competitors and customers, including the expansion or contraction of key categories, inflationary pressures, pork market dynamics and
Japan export margins; - cybersecurity and maintenance and operation of the Company's information systems, processes and data, recovery, restoration and long term impacts of the cybersecurity event, the risk of future cybersecurity events, actions of third parties, risks of data exfiltration, effectiveness of business continuity planning and execution, and availability of insurance;
- the health status of livestock, including the impact of potential pandemics;
- international trade and access to markets and supplies, as well as social, political and economic dynamics, including global conflicts;
- operating performance, including manufacturing operating levels, fill rates and penalties;
- availability of and access to capital, and compliance with credit facility covenants;
- decision respecting the return of capital to shareholders;
- the execution of capital projects and investment maintenance capital;
- food safety, consumer liability and product recalls;
- climate change, climate regulation and the Company's sustainability performance;
- strategic risk management;
- acquisitions and divestitures;
- fluctuations in the debt and equity markets;
- fluctuations in interest rates and currency exchange rates;
- pension assets and liabilities;
- cyclical nature of the cost and supply of hogs and the competitive nature of the pork market generally;
- the effectiveness of commodity and interest rate hedging strategies;
- impact of changes in the market value of the biological assets and hedging instruments;
- the supply management system for poultry in
Canada ; - availability of plant protein ingredients;
- intellectual property, including product innovation, product development, brand strategy and trademark protection;
- consolidation of operations and focus on protein;
- the use of contract manufacturers;
- reputation;
- weather;
- compliance with government regulation and adapting to changes in laws;
- actual and threatened legal claims;
- consumer trends and changes in consumer tastes and buying patterns;
- environmental regulation and potential environmental liabilities;
- consolidation in the retail environment;
- employment matters, including complying with employment laws across multiple jurisdictions, the potential for work stoppages due to non-renewal of collective agreements, recruiting and retaining qualified personnel, reliance on key personnel and succession planning;
- pricing of products;
- managing the Company's supply chain;
- changes in International Financial Reporting Standards and other accounting standards that the Company is required to adhere to for regulatory purposes; and
- other factors as set out under the heading "Risk Factors" in the Company's Management Discussion and Analysis for the year ended
December 31, 2023 .
The Company cautions readers that the foregoing list of factors is not exhaustive.
Readers are further cautioned that some of the forward-looking information, such as statements concerning future capital expenditures, Adjusted EBITDA Margin expansion, and the Company's ability to achieve its financial targets or projections may be considered to be financial outlooks for purposes of applicable securities legislation. These financial outlooks are presented to evaluate potential future earnings and anticipated future uses of cash flows and may not be appropriate for other purposes. Readers should not assume these financial outlooks will be achieved.
More information about risk factors can be found under the heading "Risk Factors" in the Company's Annual Management's Discussion and Analysis for the year ended
All forward-looking statements included herein speak only as of the date hereof. Unless required by law, the Company does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. All forward-looking statements contained herein are expressly qualified by this cautionary statement.
About
(i) |
See the Company's 2022 Integrated Report that is available on the |
|
|
Consolidated Balance Sheets
(In thousands of Canadian dollars) (Audited) |
As at |
As at |
As at |
|||
ASSETS |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ 203,363 |
|
$ 91,076 |
|
$ 162,031 |
Accounts receivable |
|
183,798 |
|
167,611 |
|
167,082 |
Notes receivable |
|
33,220 |
|
48,556 |
|
33,294 |
Inventories |
|
542,392 |
|
485,979 |
|
409,677 |
Biological assets |
|
114,917 |
|
144,169 |
|
138,209 |
Income and other taxes recoverable |
|
88,896 |
|
57,497 |
|
1,830 |
Prepaid expenses and other assets |
|
44,865 |
|
50,266 |
|
24,988 |
Assets held for sale |
|
— |
|
604 |
|
— |
Total current assets |
|
|
|
|
|
$ 937,111 |
Property and equipment |
|
2,251,710 |
|
2,303,424 |
|
2,189,165 |
Right-of-use assets |
|
154,610 |
|
159,199 |
|
161,662 |
Investments |
|
15,749 |
|
23,712 |
|
22,326 |
Investment property |
|
57,144 |
|
5,289 |
|
5,289 |
Employee benefits |
|
26,785 |
|
12,531 |
|
— |
Other long-term assets |
|
22,336 |
|
12,493 |
|
9,780 |
Deferred tax asset |
|
40,854 |
|
42,541 |
|
39,907 |
|
|
477,353 |
|
477,353 |
|
658,673 |
Intangible assets |
|
345,129 |
|
360,561 |
|
365,318 |
Total long-term assets |
|
|
|
|
|
$ 3,452,120 |
Total assets |
|
|
|
|
|
$ 4,389,231 |
LIABILITIES AND EQUITY |
|
|
|
|
|
|
Accounts payable and accruals |
|
$ 548,444 |
|
$ 485,114 |
|
$ 526,189 |
Current portion of provisions |
|
9,846 |
|
42,589 |
|
842 |
Current portion of long-term debt |
|
400,735 |
|
921 |
|
5,176 |
Current portion of lease obligations |
|
38,031 |
|
38,321 |
|
31,375 |
Income taxes payable |
|
2,382 |
|
2,311 |
|
23,853 |
Other current liabilities |
|
32,974 |
|
64,684 |
|
81,265 |
Total current liabilities |
|
|
|
$ 633,940 |
|
$ 668,700 |
Long-term debt |
|
1,550,080 |
|
1,709,493 |
|
1,247,073 |
Lease obligations |
|
142,286 |
|
144,569 |
|
144,391 |
Employee benefits |
|
64,196 |
|
64,280 |
|
97,629 |
Provisions |
|
2,041 |
|
3,799 |
|
44,650 |
Other long-term liabilities |
|
1,124 |
|
1,841 |
|
1,057 |
Deferred tax liability |
|
296,203 |
|
221,606 |
|
147,060 |
Total long-term liabilities |
|
|
|
|
|
$ 1,681,860 |
Total liabilities |
|
|
|
|
|
$ 2,350,560 |
Shareholders' equity |
|
|
|
|
|
|
Share capital |
|
$ 873,477 |
|
$ 850,086 |
|
$ 847,016 |
Retained earnings |
|
597,429 |
|
809,616 |
|
1,212,244 |
Contributed surplus |
|
3,227 |
|
— |
|
5,371 |
Accumulated other comprehensive income (loss) |
|
47,829 |
|
29,547 |
|
286 |
|
|
(7,183) |
|
(25,916) |
|
(26,246) |
Total shareholders' equity |
|
|
|
|
|
$ 2,038,671 |
Total liabilities and equity |
|
|
|
|
|
$ 4,389,231 |
(i) Restated, refer to Note 4 of the Company's Audited Consolidated Financial Statements. |
Consolidated Statements of Net (Loss) Earnings
|
Three months ended |
Twelve months ended |
||||||
(In thousands of Canadian dollars, except share amounts) |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|
(Unaudited) |
|
(Unaudited) |
|
(Audited) |
|
(Audited) |
Sales |
|
$ 1,192,749 |
|
$ 1,185,522 |
|
$ 4,867,928 |
|
$ 4,739,063 |
Cost of goods sold |
|
1,057,274 |
|
1,084,947 |
|
4,416,554 |
|
4,314,925 |
Gross profit |
|
$ 135,475 |
|
$ 100,575 |
|
$ 451,374 |
|
$ 424,138 |
Selling, general and administrative expenses |
|
101,262 |
|
95,850 |
|
405,067 |
|
431,715 |
Earnings (loss) before the following: |
|
$ 34,213 |
|
$ 4,725 |
|
$ 46,307 |
|
$ (7,577) |
Restructuring and other related costs |
|
819 |
|
5,694 |
|
23,729 |
|
30,083 |
Other expense (income) |
|
885 |
|
5,547 |
|
14,352 |
|
14,356 |
Impairment of goodwill |
|
— |
|
— |
|
— |
|
190,911 |
Earnings (loss) before interest and income taxes |
|
$ 32,509 |
|
$ (6,516) |
|
$ 8,226 |
|
$ (242,927) |
Interest expense and other financing costs |
|
41,227 |
|
23,045 |
|
150,851 |
|
56,041 |
(Loss) before income taxes |
|
$ (8,718) |
|
$ (29,561) |
|
$ (142,625) |
|
$ (298,968) |
Income tax expense (recovery) |
|
602 |
|
11,931 |
|
(17,649) |
|
12,925 |
Net loss |
|
$ (9,320) |
|
$ (41,492) |
|
$ (124,976) |
|
$ (311,893) |
(Loss) earnings per share attributable to common shareholders: |
|
|
|
|
|
|
|
|
Basic (loss) earnings per share |
|
$ (0.08) |
|
$ (0.34) |
|
$ (1.03) |
|
$ (2.52) |
Diluted (loss) earnings per share |
|
$ (0.08) |
|
$ (0.34) |
|
$ (1.03) |
|
$ (2.52) |
Weighted average number of shares (millions): |
|
|
|
|
|
|
|
|
Basic |
|
122.3 |
|
122.5 |
|
121.8 |
|
123.6 |
Diluted |
|
122.3 |
|
122.5 |
|
121.8 |
|
123.6 |
Consolidated Statements of Other Comprehensive Income (Loss)
(In thousands of Canadian dollars) |
Three months ended |
Twelve months ended |
||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|
|
(Unaudited) |
|
(Unaudited) |
|
(Audited) |
|
(Audited) |
Net loss |
|
$ (9,320) |
|
$ (41,492) |
|
$ (124,976) |
|
$ (311,893) |
Other comprehensive income (loss) |
|
|
|
|
|
|
|
|
Actuarial (losses) gains that will not be reclassified to profit
2022: |
|
$ (19,580) |
|
$ 17,910 |
|
$ 12,313 |
|
$ 40,095 |
Change in revaluation surplus (Net of tax of |
|
$ 22,782 |
|
$ — |
|
$ 40,815 |
|
$ — |
Total items that will not be reclassified to profit or loss |
|
$ 3,202 |
|
$ 17,910 |
|
$ 53,128 |
|
$ 40,095 |
Items that are or may be reclassified subsequently to profit or loss: |
|
|
|
|
|
|
|
|
Change in fair value of investments (Net of tax of |
|
$ (5,504) |
|
$ — |
|
$ (5,504) |
|
$ — |
Change in accumulated foreign currency translation adjustment (Net of tax of |
|
(8,759) |
|
(6,096) |
|
(8,939) |
|
28,972 |
Change in foreign exchange on long-term debt designated as a net investment hedge |
|
7,194 |
|
6,313 |
|
6,592 |
|
(20,037) |
Change in cash flow hedges (Net of tax of |
|
(2,091) |
|
3,896 |
|
(8,469) |
|
20,326 |
Total items that are or may be reclassified subsequently to profit or loss |
|
$ (9,160) |
|
$ 4,113 |
|
$ (16,320) |
|
$ 29,261 |
Total other comprehensive income (loss) |
|
$ (5,958) |
|
$ 22,023 |
|
$ 36,808 |
|
$ 69,356 |
Comprehensive (loss) income |
|
$ (15,278) |
|
$ (19,469) |
|
$ (88,168) |
|
$ (242,537) |
Consolidated Statements of Changes in Total Equity
|
|
|
|
Accumulated other comprehensive income (loss) |
|
|
|||
(In thousands of Canadian dollars) |
Share capital |
Retained earnings |
Contributed surplus |
Foreign |
Unrealized |
Unrealized |
Revaluation |
stock |
Total equity |
Balance at |
$ 850,086 |
809,616 |
— |
10,972 |
12,885 |
2,945 |
2,745 |
(25,916) |
|
Net loss |
— |
(124,976) |
— |
— |
— |
— |
— |
— |
(124,976) |
Other comprehensive income (loss)(ii) |
— |
12,313 |
— |
(2,347) |
(8,469) |
(5,504) |
40,815 |
— |
36,808 |
Dividends declared ( |
10,178 |
(102,722) |
— |
— |
— |
— |
— |
— |
(92,544) |
Share-based compensation expense |
— |
— |
11,979 |
— |
— |
— |
— |
— |
11,979 |
Deferred taxes on share-based compensation |
— |
— |
1,100 |
— |
— |
— |
— |
— |
1,100 |
Exercise of stock options |
7,395 |
— |
(1,363) |
— |
— |
— |
— |
— |
6,032 |
Shares re-purchased |
(4,498) |
— |
(11,595) |
— |
— |
— |
— |
— |
(16,093) |
Sale of investment property |
— |
6,213 |
— |
— |
— |
— |
(6,213) |
— |
— |
Sale of treasury stock |
— |
— |
— |
— |
— |
— |
— |
9,841 |
9,841 |
Settlement of share-based compensation |
1,305 |
(3,015) |
(17,883) |
— |
— |
— |
— |
8,892 |
(10,701) |
Change in obligation for repurchase of shares |
9,011 |
— |
20,989 |
— |
— |
— |
— |
— |
30,000 |
Balance at |
$ 873,477 |
597,429 |
3,227 |
8,625 |
4,416 |
(2,559) |
37,347 |
(7,183) |
|
|
|
|
|||||||
|
|
|
Accumulated other comprehensive income (loss) |
|
|
||||
(In thousands of Canadian dollars) |
Share capital |
Retained earnings |
Contributed surplus |
Foreign |
Unrealized |
Unrealized |
Revaluation |
stock |
Total equity |
Balance at |
$ 847,016 |
1,212,244 |
5,371 |
2,037 |
(7,441) |
2,945 |
$ 2,745 |
(26,246) |
|
Net loss |
— |
(311,893) |
— |
— |
— |
— |
— |
— |
(311,893) |
Other comprehensive income (loss)(ii) |
— |
40,095 |
— |
8,935 |
20,326 |
— |
— |
— |
69,356 |
Dividends declared ( |
— |
(99,084) |
— |
— |
— |
— |
— |
— |
(99,084) |
Share-based compensation expense |
— |
— |
20,121 |
— |
— |
— |
— |
— |
20,121 |
Modification of stock compensation plan |
— |
— |
(3,595) |
— |
— |
— |
— |
— |
(3,595) |
Deferred taxes on share-based compensation |
— |
— |
(1,350) |
— |
— |
— |
— |
— |
(1,350) |
Exercise of stock options |
7,433 |
— |
(1,289) |
— |
— |
— |
— |
— |
6,144 |
Shares re-purchased |
(17,400) |
(10,758) |
(30,719) |
— |
— |
— |
— |
— |
(58,877) |
Shares purchased by RSU trust |
— |
— |
— |
— |
— |
— |
— |
(7,500) |
(7,500) |
Settlement of share-based compensation |
— |
— |
(15,560) |
— |
— |
— |
— |
7,830 |
(7,730) |
Change in obligation for repurchase of shares |
13,037 |
(20,988) |
27,021 |
— |
— |
— |
— |
— |
19,070 |
Balance at |
$ 850,086 |
809,616 |
— |
10,972 |
12,885 |
2,945 |
2,745 |
(25,916) |
|
(i) |
Items that are or may be subsequently reclassified to profit or loss. |
(ii) |
Included in other comprehensive income (loss) is the change in actuarial gains and losses that will not be reclassified to profit or loss and has been reclassified to retained earnings. |
(iii) |
Restated, refer to Note 4 of the Company's Audited Consolidated Financial Statements. |
Consolidated Statements of Cash Flows
(In thousands of Canadian dollars) |
Three months ended |
Twelve months ended |
||||||
2023 |
2022 |
2023 |
2022 |
|||||
CASH PROVIDED BY (USED IN): |
(Unaudited) |
(Unaudited) |
(Audited) |
(Audited) |
||||
Operating activities |
|
|
|
|
|
|
|
|
Net earnings |
|
$ (9,320) |
|
$ (41,492) |
|
$ (124,976) |
|
$ (311,893) |
Add (deduct) items not affecting cash: |
|
|
|
|
|
|
|
|
Change in fair value of biological assets |
|
(8,852) |
|
(26,996) |
|
19,556 |
|
15,108 |
Depreciation and amortization |
|
67,394 |
|
61,905 |
|
271,394 |
|
233,937 |
Share-based compensation |
|
4,246 |
|
2,902 |
|
11,979 |
|
19,387 |
Deferred income tax (recovery) expense |
|
75,126 |
|
50,791 |
|
86,959 |
|
57,406 |
Current income tax (recovery) expense |
|
(74,524) |
|
(38,860) |
|
(104,608) |
|
(44,481) |
Interest expense and other financing costs |
|
41,227 |
|
23,045 |
|
150,851 |
|
56,041 |
(Gain) loss on sale of long-term assets |
|
(2,451) |
|
280 |
|
(516) |
|
1,966 |
Impairment of property and equipment, ROU assets, and goodwill |
|
15 |
|
3,353 |
|
9,011 |
|
212,363 |
Change in fair value of non-designated derivatives |
|
2,160 |
|
14,451 |
|
(4,632) |
|
(4,956) |
Impairment of investments |
|
1,953 |
|
— |
|
1,953 |
|
— |
Change in net pension obligation |
|
168 |
|
1,826 |
|
2,400 |
|
8,764 |
Net income taxes refunded (paid) |
|
42,039 |
|
(304) |
|
39,028 |
|
(30,162) |
Interest paid, net of capitalized interest |
|
(41,614) |
|
(20,483) |
|
(150,425) |
|
(54,897) |
Change in provision for restructuring and other related costs |
|
(4,590) |
|
(653) |
|
(33,542) |
|
995 |
Change in derivatives margin |
|
(2,425) |
|
4,710 |
|
(6,409) |
|
2,012 |
Cash settlement of derivatives |
|
(2,036) |
|
(3,931) |
|
3,361 |
|
(3,931) |
Other |
|
275 |
|
9,958 |
|
(5,617) |
|
(403) |
Change in non-cash operating working capital |
|
(5,779) |
|
1,818 |
|
11,116 |
|
(107,938) |
Cash provided by operating activities |
|
$ 83,012 |
|
$ 42,320 |
|
$ 176,883 |
|
$ 49,318 |
Investing activities |
|
|
|
|
|
|
|
|
Additions to long-term assets |
|
$ (41,786) |
|
$ (97,950) |
|
$ (198,181) |
|
$ (355,734) |
Interest paid and capitalized |
|
(485) |
|
(5,578) |
|
(2,969) |
|
(22,217) |
Proceeds from sale of long-term assets |
|
7,515 |
|
484 |
|
18,039 |
|
607 |
Purchase of investments |
|
— |
|
(600) |
|
(200) |
|
(600) |
(Payments of) Proceeds from legal settlement |
|
(5,256) |
|
929 |
|
(5,256) |
|
929 |
Cash used in investing activities |
|
$ (40,012) |
|
$ (102,715) |
|
$ (188,567) |
|
$ (377,015) |
Financing activities |
|
|
|
|
|
|
|
|
Dividends paid |
|
$ (20,632) |
|
$ (24,551) |
|
$ (92,544) |
|
$ (99,084) |
Net (decrease) in long-term debt |
|
(15,937) |
|
106,571 |
|
253,064 |
|
447,045 |
Payment of lease obligation |
|
(8,223) |
|
(6,943) |
|
(32,951) |
|
(33,892) |
Receipt of lease inducement |
|
— |
|
1 |
|
— |
|
6,848 |
Exercise of stock options |
|
603 |
|
1,545 |
|
6,032 |
|
6,144 |
Repurchase of shares |
|
— |
|
(31,313) |
|
(16,093) |
|
(58,877) |
Payment of financing fees |
|
(46) |
|
(38) |
|
(3,378) |
|
(3,942) |
Sale (purchase) of treasury shares |
|
— |
|
— |
|
9,841 |
|
(7,500) |
Cash (used in) provided by financing activities |
|
$ (44,235) |
|
$ 45,272 |
|
$ 123,971 |
|
$ 256,742 |
(Decrease) increase in cash and cash equivalents |
|
(1,235) |
|
(15,123) |
|
112,287 |
|
(70,955) |
Cash and cash equivalents, beginning of period |
|
204,598 |
|
106,199 |
|
91,076 |
|
162,031 |
Cash and cash equivalents, end of period |
|
$ 203,363 |
|
$ 91,076 |
|
$ 203,363 |
|
$ 91,076 |
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