BRAMPTON, ONTARIO--(Marketwire - March 12, 2013) -
(All amounts are stated in thousands of Canadian dollars, except per share amounts.)
Brampton Brick Limited (TSX:BBL.A) today reported net income of $1,485, or $0.14 per Class A Subordinate Voting share ("Class A share") and Class B Multiple Voting share ("Class B share"), for the year ended December 31, 2012 compared to a loss of $9,976, or $0.91 per share, in 2011. The aggregate weighted average number of Class A shares and Class B shares outstanding in 2012 was 10,937,717 and 10,936,554 in 2011.
DISCUSSION OF OPERATIONS
Year ended December 31, 2012
For the year ended December 31, 2012, revenues increased by $17,048, or 21%, to $97,061 compared to $80,013 in 2011 due to sales volume increases for both the Masonry Products and Landscape Products business segments.
Cost of sales for the 2012 year amounted to $75,160, compared to $65,566 for 2011. The increase in cost of sales was caused by higher sales volumes and higher yard and delivery expenses as a result of the increase in shipments. Cost of sales for the 2012 year increased by 15% from the prior year, whereas revenues increased by 21%. Due to the relatively high fixed cost nature of the Company's manufacturing facilities, large fluctuations in production levels have a material impact on per unit manufacturing costs and consequently gross margins. As well, the improvement in gross margin was due to a number of specific initiatives undertaken to improve operating efficiencies, including the consolidation of distribution facilities which reduced yard expenses.
Selling expenses for the year ended December 31, 2012 increased by $187, primarily due to an increase in personnel costs and sales commission payments related to the increased revenues, offset in part by a decrease in advertising and marketing expenditures. In 2011, higher advertising and marketing expenditures were incurred to support the introduction of a number of new products and to upgrade the Company's customer support and related service level capabilities.
General and administrative expenses increased by $328, or 5.2%, from the prior year due to an accrual for year-end employee bonuses, and costs incurred to upgrade the Company's information systems.
For the full year, an impairment loss of $1,278 relating to the short-term loan receivable due from Universal Resource Recovery Inc. ("Universal"), the Company's 50/50 joint venture, was recognized. This impairment loss, together with the share of loss from the investment in Universal in the amount of $8,857 recognized in 2011, is discussed below under the caption "Universal Resource Recovery Inc".
Operating income of $6,725 compared to $1,098 in 2011, reflected the improvement in both revenues and contribution margins for the year ended December 31, 2012. This improvement was partially offset by the impairment loss recognized on the loan receivable from Universal.
Finance costs of $3,682 for the year ended December 31, 2012 decreased by $841 from 2011. The decrease in interest expense was attributable to lower debt balances outstanding on the Company's term loans due to principal payments made during the year, and the redemption of all the subordinated secured debentures in the principal amount of $9,000 in the latter half of 2012. As well, the settlement of the interest rate swap contract in the fourth quarter of 2011 resulted in the elimination of the interest rate differential payments.
Provision for income taxes totaling $1,566 for the 2012 year related solely to the pre-tax income of the Company's Canadian operations and is net of a deferred tax recovery of $160 pertaining to the impairment loss on the loan receivable from Universal.
The recovery of income taxes was $2,281 for the 2011 year. Cumulative advances to Universal up to and including December 31, 2011 totaling $16,251 were determined under taxation rules to be an allowable business investment loss, and accordingly, a deferred tax asset amounting to $2,031 was recognized in 2011. The deferred tax asset can be used by the Company to offset future taxes payable and is likely to be used in 2013 by a reduction in income tax instalments during the year.
In 2011 deferred tax assets were recognized on non-capital losses relating solely to the Company's Canadian operations. The Company has not recorded a deferred tax asset with respect to the potential deferred tax benefit pertaining to non-capital losses of $50,963 incurred by its U.S. operations.
Fourth quarter ended December 31, 2012
For the fourth quarter ended December 31, 2012, the Company recorded a loss of $1,708, or $0.16 per Class A share and Class B share, compared to net income of $63, or $0.00 per Class A share and Class B share, for the fourth quarter of 2011. The aggregate weighted average number of Class A shares and Class B shares outstanding for the fourth quarter of 2012 and 2011 was 10,940,354 and 10,936,554, respectively.
For the fourth quarter of 2012, revenues increased significantly by $3,147 to $22,742 from $19,595 for the same period in 2011. The improvement was due to an increase in revenues from masonry product shipments, reflecting stronger residential construction activity in both Canada and the U.S.
Although operations were positively impacted by the increase in revenues and lower unit production costs due to higher plant capacity utilization, losses from operations totaled $1,078 for the fourth quarter of 2012, compared to operating income of $207 for the comparable period of 2011. Three major factors totaling $2,655 impacted operating results for the quarter:
- a write-off of certain obsolete and discontinued merchandise inventory in the amount of $1,019;
- an increase in plant repair and maintenance expenses, including roof repair costs incurred at the Brampton clay brick facility totaling $980; and
- an impairment loss of $656 recognized on the loan receivable from Universal.
Finance costs declined for the fourth quarter compared to the same period in 2011 due to reduced interest costs resulting from lower debt balances outstanding and the redemption of the balance of the subordinated secured debentures in the principal amount of $8,500 in October 2012. These decreases were offset in part by the 2% early redemption fee paid to the debenture holders and the increase in interest expense due to the increased utilization of the Company's operating credit facility.
A more detailed discussion with respect to each operating business segment follows:
MASONRY PRODUCTS
For the year ended December 31, 2012, revenues increased by $14,101, or 24%, to $72,106 from $58,005 in 2011. An increase in clay brick shipping and a significant growth in shipments of masonry concrete products contributed to the increase in revenues.
In 2012, higher concrete block volumes reflected a full year of sales activity as the Company's product offerings continue to gain market acceptance. The Company initially introduced concrete block products into the Ontario market in April 2011.
In the U.S. markets, masonry product shipments increased due to an improving residential housing market, enhanced product acceptance and an expanded product offering profile. Overall, growth in clay brick shipments in our markets improved moderately over 2011.
For the year ended December 31, 2012, this business segment reported operating earnings of $7,246, a significant improvement from $1,362 in 2011. This increase reflected strong revenue growth combined with lower average manufacturing costs as a result of higher production volumes.
For the fourth quarter of 2012, revenues increased by 21% to $18,097, from $14,991 in 2011 due to the same reasons as discussed above for fiscal 2012.
Operating income for the fourth quarter was negatively impacted by $1,566 due to the write-off of certain obsolete and discontinued merchandise inventory totaling $586 and specific plant repair and maintenance expenses, including roof repair costs at the Brampton clay brick facility totaling $980. As a consequence, operating income decreased to $146 for the fourth quarter of 2012 from $634 for the same period in 2011.
LANDSCAPE PRODUCTS
Revenues of the Landscape Products business segment increased to $24,955, for the year ended December 31, 2012, from $22,008 in 2011, an increase of $2,947, or 13.4%.
The increase in revenues was due to favourable weather conditions experienced during the first half of the year which led to an early start to the selling season. This is due in part to the introduction of an expanded product portfolio.
For the year ended December 31, 2012, the Landscape Products business segment recorded operating income of $757 compared to an operating loss of $264 in 2011.
The Landscape Products business segment reported an operating loss of $568 on revenues of $4,645 for the fourth quarter ended December 31, 2012 compared to an operating loss of $427 on revenues of $4,604 in 2011. The decline in operating results were due primarily to an adjustment to inventory of $433.
UNIVERSAL RESOURCE RECOVERY INC.
For the year ended December 31, 2012, the Company advanced $2,670 in short-term loans to Universal. These advances are classified as short-term as management believes the Company will be repaid from the sale proceeds of Universal's assets following the settlement of Universal's senior ranking claims. In relation to this loan receivable, the Company has registered, as security, a mortgage on Universal's property located in Welland, Ontario.
At the same time, Universal's continuing financial difficulties indicated a potential impairment of the Company's loan receivable. Due to increasing liquidity requirements in Universal as at December 31, 2012, an impairment analysis was performed to ascertain the fair value of this loan. Accordingly, a fair value of this non-interest bearing loan advanced to Universal was determined based on the fair value of Universal's assets, net of senior ranking claims. This fair value assessment was based on several independent property and equipment appraisals and management's estimates of the fair values of other assets and other liabilities. This assessment led to the conclusion that the carrying value of the loan was impaired. Consequently, the carrying value of this loan receivable was written-down by $1,278, including $656 in the fourth quarter, to its fair value of $1,392 as at December 31, 2012.
The Company's share of Universal's losses, recognized in accordance with the equity method of accounting for interests in joint ventures, is limited to the value of its investment in Universal. The investment was reduced to zero as at December 31, 2011 as the Company recognized losses incurred by Universal totaling $8,857. Losses of $1,791 were unrecognized as at December 31, 2011.
Universal suspended its commercial operations in June 2011. Effective January 1, 2012, management of Universal is committed to an active program to locate a buyer for the sale of assets held in Universal. Although it was expected that the sale would be recognized within one year from the date of classification of assets as 'held for sale', events beyond management's control have caused a delay in the sale of these assets. Management remains committed to its plan to sell the assets in Universal. For the year ended December 31, 2012, Universal incurred certain fixed costs, including interest on debt and facility occupancy costs amounting to $783. As a result, the Company's total share of cumulative unrecognized losses increased to $2,574 as at December 31, 2012.
The Company and the joint venture partner have each provided a guarantee up to the amount of $6,500 to Universal's banker as additional security for Universal's credit facilities. As at December 31, 2012, the total loan outstanding to Universal's banker was $7,577, of which the Company's share was $3,789.
The Company will continue to fund its share of Universal's cash requirements until proceeds from the sale of Universal's assets are realized.
CASH FLOWS
For the year ended December 31, 2012, cash flow provided by operating activities totaled $16,153 compared to $7,642 in 2011. The improvement in operations combined with an improvement in collections of receivables and a decline of payables disbursements due to timing differences, offset in part by an increase in inventories, contributed to the increase in cash flows from operations.
Cash utilized for purchases of property, plant and equipment totaled $3,101 in 2012, compared to $2,981 in 2011 which included $620 relating to the introduction of new products in 2011. In 2012, capital expenditures included approximately $632 relating to new quarry development costs and new equipment upgrades.
Advances to Universal relating to the loan receivable for the year ended December 31, 2012 amounted to $2,670. Further discussion is contained above under the caption "Universal Resource Recovery Inc".
Cash advances to Universal for the year ended December 31, 2011 totaled $3,295. These advances increased the carrying value of the investment in Universal, as they were utilized by Universal to finance its operational activities and capital expenditures incurred during the start-up period of its waste composting facility located in Welland, Ontario.
Proceeds from the sale of property, plant and equipment totaled $520 of which $461 pertained to the sale of certain obsolete production equipment which was no longer supported by the Company's operational processes.
Bank operating advances increased by $5,288 to $10,435 in 2012. This increase helped to support funding the term loan and the subordinated secured debenture repayments.
During 2012 and 2011, principal repayments on term loans totaled $2,730 and $2,791, respectively. These repayments included $2,500 paid on the term loan in both 2012 and 2011.
In July 2007, the Company had entered into an interest rate swap contract to hedge the risk arising from variability of cash flows relating to its variable rate term bank loan under its credit facility. The fixed interest rate under the swap contract was 5.16%. For the year ended December 31, 2011, the interest rate differential together with the loss on the change in fair value of the swap contract totaled $516 and was recorded in 'finance costs' in the consolidated statement of comprehensive income (loss). This contract was settled for $1,459 in 2011.
In February 2010, the Company completed a three-year term subordinated secured debenture financing in the amount of $9,000, at an effective interest rate of 11.89%.
In August 2012, the Company redeemed $500 of the subordinated secured debentures and in October 2012, the balance of the debentures were redeemed in the principal amount of $8,500. A 2% early redemption fee on the principal amount was paid to all debenture holders as the debentures were to have matured in February 2013. Utilization of the Company's operating line of credit to redeem the debentures is expected to achieve significant savings in interest costs because of the reduction in comparable interest rates.
FINANCIAL CONDITION
The Company's Masonry Products and Landscape Products business segments are seasonal in nature. The Landscape Products business is affected to a greater degree than the Masonry Products business. As a result of this seasonality, operating results are impacted accordingly and cash requirements are generally expected to increase through the first half of the year and decline through the second half of the year.
As at December 31, 2012, bank operating advances were $10,435. This represented an increase of $5,288 from the amount outstanding at December 31, 2011.
Trade payables totaled $11,675 at December 31, 2012 compared to $9,026 at December 31, 2011.
The ratio of total liabilities to shareholders' equity was 0.50:1 at December 31, 2012 compared to 0.51:1 at December 31, 2011. The decrease in this ratio from December 2011 to December 2012 was primarily due to higher retained earnings resulting from the improvement in operating results in 2012 and the decline in debt due to repayments. The decrease to the ratio was offset in part by an increase in the foreign currency translation loss in 'Accumulated other comprehensive loss' due to the strengthening of the Canadian dollar against the U.S. dollar in 2012.
As at December 31, 2012, working capital was $7,325, representing a working capital ratio of 1.25:1 compared to working capital and a working capital ratio at December 31, 2011 of $13,137, and 1.65:1, respectively. The decline in working capital was primarily due to an increase in bank operating advances in 2012. Cash and cash equivalents totaled $1,412 at December 31, 2012 compared to $1,180 at December 31, 2011.
The Company's bank credit agreement provides for borrowings up to $20,000 based on margin formulae for trade receivables and inventories, less priority claims and the mark-to-market exposure on swap contracts, if applicable. It is a demand facility secured primarily by trade receivable and inventories of the Company's Masonry Products and Landscape Products business segments in Canada and the U.S. The agreement also contains certain financial covenants. As at December 31, 2012, the Company was in compliance with all the financial covenants.
On January 21, 2013, the Company amended its bank credit agreement, increasing its borrowing capacity to $22,000. This borrowing amount is based on the same margin formulae described above.
As at December 31, 2012, the borrowing limit was $17,864. The utilization was $10,682 and was comprised of a $8,900 banker's acceptance, 90 day note, a current account overdraft balance of $1,535, and outstanding letters of credit for $247.
The Company expects that future cash flows from operations, cash and cash equivalents on hand and the unutilized balance of its operating credit facility will be sufficient to satisfy its obligations as they become due.
The Company was in compliance with all financial covenants under its term financing agreement and operating credit facility as at December 31, 2012 and anticipates that it will maintain compliance throughout 2013.
FORWARD-LOOKING STATEMENTS
Certain statements contained herein constitute "forward-looking statements". All statements that are not historical facts are forward-looking statements, including, among others, statements regarding the expected repayment of the short-term loan receivable from Universal, forecasts of sufficient cash flows from operations and other sources of financing, anticipated compliance with financial covenants under debt agreements, anticipated sales of masonry and landscape products, and other statements regarding future plans, objectives, results, business outlook and financial performance. There can be no assurance that such forward-looking statements will prove to be accurate.
Such forward-looking statements are based on information currently available to management, and are based on assumptions and analyses made by management in light of its experience and its perception of historical trends, current conditions and expected future developments, including, among others, assumptions regarding pricing, weather and seasonal expectations, production efficiency, and there being no significant disruptions affecting operations or other material adverse changes.
Such forward-looking statements also involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Such risks and uncertainties include, among others: changes in economic conditions, including the demand for the Company's primary products and the level of new home, commercial and other construction; large fluctuations in production levels; fluctuations in energy prices and other production costs; changes in transportation costs; foreign currency exchange and interest rate fluctuations; legislative and regulatory developments; as well as those assumptions, risks, uncertainties and other factors identified and discussed under "Risks and Uncertainties" in the Company's other public filings (including the Annual Information Form for the year ended December 31, 2012), which may be accessed at www.sedar.com.
The forward-looking information contained herein is made as of the date hereof. Other than as specifically required by law, the Company undertakes no obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on forward-looking statements.
Brampton Brick is Canada's second largest manufacturer of clay brick, serving markets in Ontario, Quebec and the Northeast and Midwestern United States from its brick manufacturing plants located in Brampton, Ontario and near Terre Haute, Indiana. To complement the clay brick product line, the Company also manufactures a range of concrete masonry products, including stone veneer products, and concrete brick and block. Concrete interlocking paving stones, retaining walls, garden walls and enviro products are manufactured in Markham, Milton and Brampton, Ontario and Wixom, Michigan. These products are sold to markets in Ontario, Quebec, Michigan, New York, Pennsylvania, Ohio, Kentucky, Illinois and Indiana under the Oaks™ trade name. Products are used for residential construction and for industrial, commercial, and institutional building projects.
| SELECTED FINANCIAL INFORMATION |
| (unaudited) (in thousands of Canadian dollars) |
| December 31 | December 31 | |||||||
| CONSOLIDATED BALANCE SHEETS | 2012 | 2011 | ||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 1,412 | $ | 1,180 | ||||
| Trade and other receivables | 10,832 | 9,964 | ||||||
| Inventories | 22,287 | 20,805 | ||||||
| Taxes recoverable | - | 744 | ||||||
| Loan receivable | 1,392 | - | ||||||
| Other assets | 575 | 597 | ||||||
| 36,498 | 33,290 | |||||||
| Non-current assets | ||||||||
| Property, plant and equipment | 168,848 | 172,629 | ||||||
| Total assets | $ | 205,346 | $ | 205,919 | ||||
| LIABILITIES | ||||||||
| Current liabilities | ||||||||
| Bank operating advances | $ | 10,435 | $ | 5,147 | ||||
| Trade payables | 11,675 | 9,026 | ||||||
| Income taxes payable | 2,110 | 829 | ||||||
| Current portion of debt | 2,928 | 3,091 | ||||||
| Decommissioning provisions | 50 | 50 | ||||||
| Other liabilities | 1,975 | 2,010 | ||||||
| 29,173 | 20,153 | |||||||
| Non-current liabilities | ||||||||
| Non-current portion of debt | 23,554 | 35,166 | ||||||
| Decommissioning provisions | 2,219 | 950 | ||||||
| Deferred tax liabilities | 13,427 | 13,163 | ||||||
| Total liabilities | $ | 68,373 | $ | 69,432 | ||||
| EQUITY | ||||||||
| Equity attributable to shareholders of Brampton Brick Limited | ||||||||
| Share capital | $ | 33,711 | $ | 33,689 | ||||
| Contributed surplus | 1,895 | 1,801 | ||||||
| Accumulated other comprehensive loss | (2,655 | ) | (1,540 | ) | ||||
| Retained earnings | 104,010 | 102,527 | ||||||
| $ | 136,961 | $ | 136,477 | |||||
| Non-controlling interests | 12 | 10 | ||||||
| Total equity | $ | 136,973 | $ | 136,487 | ||||
| Total liabilities and equity | $ | 205,346 | $ | 205,919 | ||||
| SELECTED FINANCIAL INFORMATION | ||||||||||||||||
| (unaudited) (in thousands of Canadian dollars, except per share amounts) | ||||||||||||||||
| Three months ended | Year ended | |||||||||||||||
| CONSOLIDATED STATEMENTS OF COMPREHENSIVE | December 31 | December 31 | ||||||||||||||
| INCOME (LOSS) | 2012 | 2011 | 2012 | 2011 | ||||||||||||
| Revenues | $ | 22,742 | $ | 19,595 | $ | 97,061 | $ | 80,013 | ||||||||
| Cost of sales | 19,217 | 15,955 | 75,160 | 65,566 | ||||||||||||
| Selling expenses | 2,028 | 1,743 | 7,216 | 7,029 | ||||||||||||
| General and administrative expenses | 1,929 | 1,713 | 6,679 | 6,351 | ||||||||||||
| Loss (gain) on disposal of property, plant and equipment | 40 | - | 96 | (63 | ) | |||||||||||
| Other (income) expense | (50 | ) | (23 | ) | (93 | ) | 32 | |||||||||
| Impairment loss on loan receivable | 656 | - | 1,278 | - | ||||||||||||
| 23,820 | 19,388 | 90,336 | 78,915 | |||||||||||||
| Operating (loss) income | (1,078 | ) | 207 | 6,725 | 1,098 | |||||||||||
| Finance (expense) income | ||||||||||||||||
| Finance costs | (902 | ) | (930 | ) | (3,682 | ) | (4,523 | ) | ||||||||
| Finance income | 2 | 2 | 8 | 25 | ||||||||||||
| (900 | ) | (928 | ) | (3,674 | ) | (4,498 | ) | |||||||||
| Share of loss from investment in | ||||||||||||||||
| Universal Resource Recovery Inc. | - | (1,510 | ) | - | (8,857 | ) | ||||||||||
| Income (loss) before income taxes | (1,978 | ) | (2,231 | ) | 3,051 | (12,257 | ) | |||||||||
| (Provision for) recovery of income taxes | ||||||||||||||||
| Current | 274 | 624 | (1,301 | ) | 750 | |||||||||||
| Deferred | (4 | ) | 1,670 | (265 | ) | 1,531 | ||||||||||
| 270 | 2,294 | (1,566 | ) | 2,281 | ||||||||||||
| Net income (loss) for the period | $ | (1,708 | ) | $ | 63 | $ | 1,485 | $ | (9,976 | ) | ||||||
| Net income (loss) attributable to: | ||||||||||||||||
| Shareholders of Brampton Brick Limited | $ | (1,709 | ) | $ | 62 | $ | 1,483 | $ | (9,979 | ) | ||||||
| Non-controlling interests | 1 | 1 | 2 | 3 | ||||||||||||
| Net income (loss) for the period | $ | (1,708 | ) | $ | 63 | $ | 1,485 | $ | (9,976 | ) | ||||||
| Other comprehensive income (loss) | ||||||||||||||||
| Foreign currency translation | $ | 520 | $ | (1,556 | ) | $ | (1,115 | ) | $ | 1,076 | ||||||
| Total comprehensive income (loss) for the period | $ | (1,188 | ) | $ | (1,493 | ) | $ | 370 | $ | (8,900 | ) | |||||
| Total comprehensive income (loss) attributable to: | ||||||||||||||||
| Shareholders of Brampton Brick Limited | $ | (1,189 | ) | $ | (1,494 | ) | $ | 368 | $ | (8,903 | ) | |||||
| Non-controlling interests | 1 | 1 | 2 | 3 | ||||||||||||
| Total comprehensive income (loss) for the period | $ | (1,188 | ) | $ | (1,493 | ) | $ | 370 | $ | (8,900 | ) | |||||
| Net income (loss) per Class A and Class B share | $ | (0.16 | ) | $ | 0.00 | $ | 0.14 | $ | (0.91 | ) | ||||||
| Weighted average Class A and Class B shares outstanding (000's) | |
10,940 |
|
|
|
10,937 |
|
|
|
10,938 |
|
|
|
10,937 |
|
|
| SELECTED FINANCIAL INFORMATION | ||||||||||
| (unaudited) (in thousands of Canadian dollars) | ||||||||||
| Year ended | ||||||||||
| December 31 | ||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | 2012 | 2011 | ||||||||
| Cash provided by (used for) | ||||||||||
| Operating activities | ||||||||||
| Net income (loss) for the year | $ | 1,485 | $ | (9,976 | ) | |||||
| Items not affecting cash and cash equivalents | ||||||||||
| Depreciation | 7,070 | 6,756 | ||||||||
| Current taxes | 1,301 | (750 | ) | |||||||
| Deferred taxes | 265 | (1,531 | ) | |||||||
| Loss (gain) on disposal of property, plant and equipment | 96 | (63 | ) | |||||||
| Unrealized foreign currency exchange gain | (36 | ) | (34 | ) | ||||||
| Impairment loss on loan receivable | 1,278 | - | ||||||||
| Loss on derivative financial instrument | - | 27 | ||||||||
| Net interest expense | 3,674 | 4,471 | ||||||||
| Share of loss in investment in Universal Resource Recovery Inc. | - | 8,857 | ||||||||
| Other | 97 | 144 | ||||||||
| 15,230 | 7,901 | |||||||||
| Changes in non-cash items | ||||||||||
| Trade and other receivables | (884 | ) | (3,804 | ) | ||||||
| Inventories | (1,614 | ) | 3,098 | |||||||
| Other assets | 18 | (21 | ) | |||||||
| Trade payables | 2,582 | (14 | ) | |||||||
| Income tax credits applied | 731 | - | ||||||||
| Other liabilities | 141 | 524 | ||||||||
| 974 | (217 | ) | ||||||||
| Income tax payments made (refunds received) | (7 | ) | 17 | |||||||
| Payments for decommissioning of assets | (44 | ) | (59 | ) | ||||||
| Cash provided by operating activities | 16,153 | 7,642 | ||||||||
| Investing activities | ||||||||||
| Purchase of property, plant and equipment | (3,101 | ) | (2,981 | ) | ||||||
| Loan advances paid to Universal Resource Recovery Inc. | (2,670 | ) | - | |||||||
| Advances to Universal Resource Recovery Inc. | - | (3,295 | ) | |||||||
| Proceeds from disposal of property, plant and equipment | 520 | 63 | ||||||||
| Cash used for investment activities | (5,251 | ) | (6,213 | ) | ||||||
| Financing activities | ||||||||||
| Increase in bank operating advances | 5,288 | 3,323 | ||||||||
| Settlement of derivative financial liability | - | (1,459 | ) | |||||||
| Payment of term loans | (2,730 | ) | (2,791 | ) | ||||||
| Payment of subordinated secured debentures | (9,000 | ) | - | |||||||
| Interest paid | (3,534 | ) | (4,192 | ) | ||||||
| Payments on obligations under finance leases | (638 | ) | (491 | ) | ||||||
| Payment of dividends by subsidiary to non-controlling interests | (75 | ) | (30 | ) | ||||||
| Proceeds from exercise of stock options | 19 | - | ||||||||
| Cash used for financing activities | (10,670 | ) | (5,640 | ) | ||||||
| Foreign exchange on cash held in foreign currency | - | 8 | ||||||||
| Increase (decrease) in cash and cash equivalents | 232 | (4,203 | ) | |||||||
| Cash and cash equivalents at the beginning of the year | 1,180 | 5,383 | ||||||||
| Cash and cash equivalents at the end of the year | $ | 1,412 | $ | 1,180 | ||||||
| SELECTED FINANCIAL INFORMATION | ||||||||
| (unaudited) (in thousands of Canadian dollars) |
| CONSOLIDATED STATEMENT OF CHANGES IN EQUITY | |||||||||||||||||||||
| Attributable to shareholders of Brampton Brick Limited | |||||||||||||||||||||
| Accumulated | |||||||||||||||||||||
| Other | Non- | ||||||||||||||||||||
| Share | Contributed | Comprehensive | Retained | controlling | Total | ||||||||||||||||
| Capital | Surplus | Income (Loss) | Earnings | Total | interests | Equity | |||||||||||||||
| Balance - January 1, 2011 | $ | 33,689 | $ | 1,658 | $ | (2,616 | ) | $ | 112,506 | $ | 145,237 | $ | 112 | $ | 145,349 | ||||||
| Net (loss) income for the year | - | - | - | (9,979 | ) | (9,979 | ) | 3 | (9,976 | ) | |||||||||||
| Other comprehensive income | |||||||||||||||||||||
| (net of taxes, $nil) | - | - | 1,076 | - | 1,076 | - | 1,076 | ||||||||||||||
| Comprehensive income (loss) | |||||||||||||||||||||
| for the year | - | - | 1,076 | (9,979 | ) | (8,903 | ) | 3 | (8,900 | ) | |||||||||||
| Dividends | - | - | - | - | - | (105 | ) | (105 | ) | ||||||||||||
| Share-based compensation | - | 143 | - | - | 143 | - | 143 | ||||||||||||||
| Balance - December 31, 2011 | $ | 33,689 | $ | 1,801 | $ | (1,540 | ) | $ | 102,527 | $ | 136,477 | $ | 10 | $ | 136,487 | ||||||
| Balance - January 1, 2012 | $ | 33,689 | $ | 1,801 | $ | (1,540 | ) | $ | 102,527 | $ | 136,477 | $ | 10 | $ | 136,487 | ||||||
| Net income for the year | - | - | - | 1,483 | 1,483 | 2 | 1,485 | ||||||||||||||
| Other comprehensive loss | |||||||||||||||||||||
| (net of taxes, $nil) | - | - | (1,115 | ) | - | (1,115 | ) | - | (1,115 | ) | |||||||||||
| Comprehensive (loss) income for the year | |
- |
|
- |
|
|
(1,115 |
) |
|
1,483 |
|
|
368 |
|
|
2 |
|
|
370 |
|
|
| Stock options exercised | 22 | (3 | ) | - | - | 19 | - | 19 | |||||||||||||
| Share-based compensation | - | 97 | - | - | 97 | - | 97 | ||||||||||||||
| Balance - December 31, 2012 | $ | 33,711 | $ | 1,895 | $ | (2,655 | ) | $ | 104,010 | $ | 136,961 | $ | 12 | $ | 136,973 | ||||||
Contact Information:
Jeffrey G. Kerbel
President and Chief Executive Officer
905-840-1011
905-840-1535 (FAX)
Brampton Brick Limited
Trevor M. Sandler
Vice-President, Finance and Chief Financial Officer
905-840-1011
905-840-1535 (FAX)
investor.relations@bramptonbrick.com