BRAMPTON, ONTARIO--(Marketwired - March 24, 2015) -
(All amounts are stated in thousands of Canadian dollars, except per share amounts.)
Brampton Brick Limited (TSX:BBL.A) today reported net loss of $13,961, or $1.28 per Class A Subordinate Voting share and Class B Multiple Voting share, outstanding for the year ended December 31, 2014 compared to net income of $2,629 or $0.23 per share, for the year ended December 31, 2013. The aggregate weighted average number of Class A Subordinate Voting shares and Class B Multiple Voting shares outstanding was 10,940,354 in both 2014 and 2013.
DISCUSSION OF OPERATIONS
YEAR ENDED DECEMBER 31, 2014
The major unusual factors which impacted financial results for the year ended December 31, 2014 were:
1) An asset impairment charge in the amount of $11,611 recorded against the Company's Indiana clay brick plant;
2) Equipment commissioning and retrofit costs of approximately $1 million related to the Hillsdale and Brockville, Ontario concrete plants charged against operations;
3) Land, buildings and equipment located in Milton, Ontario, were sold or disposed during the year resulting in a net gain on disposal of $1,555;
4) The payment of future interest in the amount of $3,305 on the early repayment of the Company's former term loan, together with the unamortized transaction costs in the amount of $200.
Each of these items is explained in greater detail in the analysis which follows:
Revenues grew 16% to $110,329 for the year ended December 31, 2014, compared to $95,286 for the corresponding period in 2013. Higher shipments in both the Masonry Products and Landscape Products business segments, due to more favourable weather conditions than the prior year for residential construction combined with the additional sales volume gained from the new production facilities located at Hillsdale and Brockville, Ontario, contributed to the increase in revenues for the year.
Cost of sales for the year ended December 31, 2014, amounted to $92,875, compared to $73,051 for the same period in 2013. The higher cost of sales was largely attributable to the increase in shipments during the year, higher energy costs and the costs associated with the commissioning and retrofit work for the two new concrete products manufacturing plants located in Hillsdale and Brockville, Ontario, that were acquired in January 2014. Additionally, production volumes in the Masonry Products business segment were below 2013 levels. Due to the high fixed cost nature of this business segment, lower production volumes resulted in higher costs per unit and consequently higher cost of sales.
Selling expenses for the year ended December 31, 2014, increased by $839 to $9,058 from $8,219 in 2013. This increase is primarily due to an increase in personnel costs and advertising expenses related to the additional plant facilities commissioned in 2014 and the increase in the Company's overall product portfolios.
General and administrative expenses for the year ended December 31, 2014, were $6,771 compared to $6,742 for the same period in 2013.
Gain on disposal of property, plant and equipment for the year ended December 31, 2014, amounted to $1,609 compared to a loss of $334 in 2013. During the second quarter of 2014, certain production equipment located at the Milton plant was written off amounting to $1,600. On October 1, 2014, land and buildings located in Milton, Ontario, with a carrying amount of $2,401 were sold for net proceeds of $5,556, after deducting sales transaction costs, resulting in a gain of $3,155. The net gain from these transactions, relating to the disposal of the Milton plant, was $1,555. These transactions were part of the Company's rationalization plan for its concrete products business. Plant operating synergies and volume related economies of scale were obtained by reallocating production volumes throughout the restructured plant network.
The loss on disposal of property, plant and equipment for the year ended December 31, 2013, in the amount of $334 primarily related to certain equipment that was replaced at the Brampton clay brick plant, in order to increase long-term operational efficiencies and to reduce production costs.
Other income of $11 for 2014 and $140 for 2013 includes the net of gains and losses on the translation of foreign currency transactions translated into the functional currency using exchange rates prevailing at the dates of the transactions.
For 2014, the Company determined that there was no additional impairment on the secured, non- interest bearing, non-current loan receivable ('loan receivable') from Universal Resource Recovery Inc. ('Universal') as critical factors in Universal's property appraisal conducted in late 2013 were deemed to have remained generally unchanged.
For the corresponding period ended December 31, 2013, the Company had evaluated the recoverability of its loan receivable from Universal, in the amount of $7,343, based on the fair value of the underlying Universal assets, as assessed by independent professional real estate and equipment appraisers. The loan receivable was determined to be impaired and its carrying value was written down to $5,200, the fair value representing the Company's share of Universal's underlying assets. The Company recognized an accumulated impairment charge of $2,143, of which $707 was recorded in the fourth quarter of 2013 and $865 was recorded for the full year in 2013.
The asset impairment for the year ended December 31, 2014 was $11,611. As a result of ongoing economic pressures impacting the construction industry, as at December 31, 2014, the Company assessed its cash generating units ("CGUs") to determine whether there was any indication that one of these CGUs may be impaired. Management's assessment of the external and internal indicators of impairment, as per IAS 36, Impairment of Assets, determined there was no indication that the Brampton clay brick plant, the Canadian concrete plants and the Michigan concrete plant were impaired. Management also assessed the indicators of impairment for the Indiana clay brick plant and concluded that impairment testing was necessary.
For the year ended December 31, 2014, the recoverable amount for the Farmersburg, Indiana clay brick plant was estimated using the Company's future forecast for the period of five years from 2015 - 2019. The Company makes various assumptions regarding, among other things, future sales volumes, selling prices, costs of manufacturing and operations including raw materials, labour, overhead, selling and general and administrative expenses, capital expenditures and proceeds of disposition, if any. The impairment testing resulted in a lower recoverable amount for the Indiana plant assets and consequently, an asset impairment of $11,611 was recognized.
As a result, the Company's operating loss increased to $8,366 for the year ended December 31, 2014, compared to operating income of $6,215 in 2013. Excluding the asset impairment of $11,611, the Company's operations produced an operating income of $3,245.
Finance expense for the year ended December 31, 2014, was $5,699 compared to $2,736 in 2013. On January 3, 2014, the Company finalized a new $40,000 demand revolving reducing term loan. The amount of $36,595 drawn down on this loan was utilized to finance the purchase of assets from Atlas Block, a concrete masonry and landscape products company; to repay the outstanding balance of $22,500 on the then existing term loan, including the remaining unamortized transaction costs of $200; and the associated payment of future interest in the amount of $3,305. The loan was classified as a current liability due to it being a demand loan. The rate of interest on the new loan was at the bank's prime rate plus 0.70%, which was significantly more favourable than the predecessor loan which had an interest rate of 8.00%.
On November 21, 2014, the Company's $36,595 demand revolving reducing term loan was separated into a $26,000 committed revolving reducing term loan ("Committed term loan") and a $10,595 demand revolving term loan which were classified as a long-term liability and a current liability, respectively.
The Committed term loan bears interest at the bank's prime rate plus 0.30% until January 29, 2015, and thereafter at the 30 day bankers' acceptance rate plus a stamp fee of 1.80%. The demand revolving term loan bears interest at the bank's prime rate plus 0.50%.
For the year ended December 31, 2014, finance expense increased to $5,699 from $2,736 in 2013. Excluding the non-recurring expense of $3,505, noted above, finance expense incurred was $2,194. This decline in interest expense from the prior period was a result of lower interest rates, partially offset by a higher debt balance.
The recovery of income taxes amounted to $104 for the year ended December 31, 2014, compared to a provision of $850 for the 2013 fiscal year. No deferred tax assets were recorded with respect to the potential deferred tax benefit pertaining to non-capital losses carried forward by the Company's U.S. operations.
FOURTH QUARTER ENDED DECEMBER 31, 2014
For the fourth quarter ended December 31, 2014, the Company recorded a net loss of $10,232, or $0.94 per Class A Subordinate Voting share and Class B Multiple Voting share, compared to a net loss of $1,108, or $0.10 per Class A Subordinate Voting share and Class B Multiple Voting share, for the fourth quarter of 2013. Excluding the asset impairment loss of $11,611, as noted above, and the gain on sale of the Milton assets amounting to $3,155, the net loss for the fourth quarter was $1,776 or $0.16 per share. The aggregate weighted average number of Class A Subordinate Voting shares and Class B Multiple Voting shares outstanding for the fourth quarter of each of 2014 and 2013 was 10,940,354.
For the fourth quarter of 2014, revenues grew 27% to $27,200 from $21,489 for the same period in 2013. The increase in revenues was a result of strong growth across all product lines for the quarter. In particular, the highest quarterly growth was seen in concrete products' shipments in the Canadian market from the new plants located in Hillsdale and Brockville, Ontario.
Additionally, the gain on sale of the Milton assets was reflected in the fourth quarter and resulted in a gain of $3,155.
During the fourth quarter of 2014, no impairment loss was recognized on the loan receivable from Universal. An impairment loss of $707 was recognized in December 2013, as discussed above.
As at December 31, 2014, the Company recorded an asset impairment loss of $11,611 on its plant located in Farmersburg, Indiana, as noted earlier.
The operating loss for the fourth quarter of 2014 was $9,273 compared to operating loss of $1,182 for the corresponding quarter in 2013. Excluding the asset impairment of $11,611, noted earlier, and the gain on the sale of the Milton assets, the operating loss for the fourth quarter of 2014 was $817.
Finance expense decreased for the fourth quarter of 2014 to $466 from $632 in the comparative period of 2013 for the same reasons discussed above for the year ended December 31, 2014.
A more detailed discussion with respect to each operating business segment follows:
MASONRY PRODUCTS
For the year ended December 31, 2014, revenues increased 13% to $79,639 from $70,276 in 2013. Strong growth in Canadian market shipments was basically due to the commissioning of the plants in Hillsdale and Brockville, Ontario, during the year.
Cost of sales increased to $68,413 compared to $54,026 in 2013. This increase was attributable to the increase in sales volumes, the unfavourable impact of lower production volumes on unit costs, higher energy costs, start-up costs to commission the two new plants, noted above, and costs associated with the Company's rationalization plan to reallocate production volumes and improve production efficiencies throughout its restructured concrete plant network.
As noted earlier, an asset impairment loss of $11,611 on the Company's Farmersburg, Indiana plant was recorded in the fourth quarter of this year.
As a result, the operating loss recorded for the year ended December 31, 2014, was $10,455 compared to an operating income of $5,779 in 2013. Excluding the impairment loss of $11,611, the operating income generated by this business segment was $1,156. The decline in operating results was due to the increase in operating costs discussed above.
For the fourth quarter of 2014, revenues increased by 30% to $20,327, from $15,579, in 2013.
The operating loss for the fourth quarter of 2014 was $10,685 compared to operating loss of $96 for the corresponding quarter in 2013. Excluding the impairment loss of $11,611, discussed earlier, operating income was $926.
LANDSCAPE PRODUCTS
Revenues of the Landscape Products business segment increased 23% to $30,690, for the year ended December 31, 2014, from $25,010 in 2013.
An improved and more targeted marketing strategy, and expanded product profile, as well as the additional sales volumes from the Hillsdale and Brockville plants, contributed to the significant increase in sales revenues.
For the year ended December 31, 2014, the Landscape Products business segment recorded operating income of $2,098 compared to $1,303 in 2013. The net gain on sale and disposal of assets located in Milton during the year allocated to this business segment was $1,141. Excluding this gain, the operating income for the year from this business segment was $957. The decline in operating results compared to 2013 was due to the same higher cost factors noted above under the caption 'Masonry Products'.
The operating income of the Landscape Products business segment was $1,413 for the fourth quarter of 2014 on revenues of $6,873 compared to an operating loss of $151 on revenues of $5,910 for the fourth quarter of 2013. Excluding the gain of $2,278 allocated to this business segment, from the sale of the Milton assets recognized in the quarter, the operating loss was $865.
CASH FLOWS
For the year ended December 31, 2014, cash flow provided by operating activities totaled $8,713 compared to $9,695 in 2013. A decline in operating results and higher receivable balances were offset by lower disbursements of outstanding payables and lower amounts in other assets, due to a deposit paid in December 2013 in the amount of $1,890 pertaining to the purchase of substantially all of the assets of Atlas Block.
For the year ended December 31, 2014, income tax payable on taxable income was offset by a refund received on assessment of the 2013 tax filing. Additionally, the capital gains tax payable on the sale of the plant located in Milton, Ontario, was offset by capital losses incurred in prior years. For the year ended December 31, 2013, the income tax payable on taxable income was offset by the utilization of a deferred tax asset in the amount of $2,031, thus reducing the net income tax payments to $1,653 for 2013. This deferred tax asset relates to the cumulative advances to Universal totaling $16,251 which were determined to be an allowable business investment loss and accordingly this deferred tax asset was recognized in 2011.
Cash utilized for purchases of property, plant and equipment totaled $11,377 in 2014, compared to $3,422 in 2013. On January 7, 2014, the Company acquired substantially all of the property, plant and equipment of Atlas Block, for an aggregate purchase price of $11,366, including $2,494 by way of finance leases. In 2013, capital expenditures included approximately $490 relating to new quarry development costs, $646 relating to new products and equipment upgrades and $409 for upgrading the Company's management information systems.
During the current year there were no advances to Universal. Advances to Universal relating to the loan receivable for the year ended December 31, 2013 amounted to $4,673.
Proceeds from disposal of property, plant and equipment amounted to $5,905 for the year ended December 31, 2014, compared to $62 for the prior year. On October 1, 2014, land and buildings located in Milton, Ontario with a carrying amount of $2,401 were sold for net proceeds of $5,556, after deducting sales transaction costs, resulting in a gain of $3,155.
On January 3, 2014, the Company finalized a new $40,000 demand revolving reducing term loan with its banker at the bank's prime rate plus 0.70%. The amount of $36,595 drawn down on this loan was utilized to finance the purchase of substantially all of the assets of Atlas Block, a concrete masonry and landscape products company from the court appointed receiver and to repay the outstanding balance of the then existing term loan of $22,500 and the associated payment of future interest in the amount of $3,305.
On November 21, 2014, the Company's $36,595 demand revolving reducing term loan was separated into a $26,000 committed revolving reducing term loan ("Committed term loan) and a $10,595 demand revolving term loan. These loans were classified as a long-term liability and a current liability, respectively.
The Committed term loan bears interest at the bank's prime rate plus 0.30% until January 29, 2015 and thereafter at the 30 day bankers' acceptance rate plus a stamp fee of 1.80%. The demand revolving term loan bears interest at the bank's prime rate plus 0.50%.
On January 30, 2015, the Company entered into a floating-to-fixed interest rate swap agreement to fix the interest rate on its Committed term loan.
Proceeds from issuance of a demand non-revolving loan amounted to $2,598 in December 2013. These funds were advanced to Universal and used, in part, to fully repay the outstanding balance of Universal's term bank loan and to facilitate the completion of the lease arrangement with Universal's new tenant at its Welland, Ontario facility.
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, 2014, bank operating advances were $1,610 compared to $11,641 as at December 31, 2013.
Trade payables totaled $17,805 at December 31, 2014 compared to $11,514 at December 31, 2013.
The ratio of total liabilities to shareholders' equity was 0.63:1 at December 31, 2014 compared to 0.49:1 at December 31, 2013. The increase in this ratio from December 2013 to December 2014 was primarily due to lower retained earnings resulting from the decrease in operating results in 2014 and was offset, in part, by the increase in the foreign currency translation gain in 'Accumulated other comprehensive income' due to the weakening of the Canadian dollar against the U.S. dollar in 2014, and higher outstanding debt level and payable amounts.
As at December 31, 2014, working capital was $8,878, representing a working capital ratio of 1.23:1 compared to working capital and a working capital ratio at December 31, 2013 of $7,766 and 1.25:1, respectively. The increase in working capital was primarily due to an increase in outstanding receivables and inventories offset, in part, by higher current debt. Cash and cash equivalents totaled $1,419 at December 31, 2014 compared to $1,200 at December 31, 2013.
The Company's bank credit agreement provides for operating borrowings up to $22,000 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 by a general security agreement over all assets. The agreement also contains certain financial covenants.
As at December 31, 2014, the borrowing limit was $21,742. The utilization was $2,111 and was comprised of a current account balance of $1,823, and outstanding letters of credit for $288.
The Company was in compliance with all financial covenants under its term financing agreement and operating credit facility as at December 31, 2014 and anticipates that it will maintain compliance throughout 2015.
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.
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 loan receivable from Universal and the expected self-sufficiency on a cash basis of 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 2014 annual MD&A included in the Company's 2014 Annual Report and those identified and reported in the Company's other public filings (including the Annual Information Form for the year ended December 31, 2014), 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 Limited 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 concrete brick and block as well as stone veneer products. Concrete interlocking paving stones, retaining walls, garden walls and enviro products are manufactured in Markham, Hillsdale, Brockville and Brampton, Ontario and in Wixom, Michigan and sold to markets in Ontario, Quebec, Michigan, New York, Pennsylvania, Ohio, Kentucky, Illinois and Indiana under the Oaks™ trade name. The Company's products are used for residential construction and for industrial, commercial, and institutional building projects.
On January 7, 2014, the Company acquired substantially all of the property, plant and equipment from the court appointed receiver of Atlas Block, a concrete masonry and landscape products company located in Ontario. These assets form part of the Company's Hillsdale and Brockville plants, which were commissioned and became fully operational in mid-2014.
The land and buildings at the Company's Milton facility were sold on October 1, 2014. Production equipment was repurposed around the Company's concrete plant network, to the extent that it was reusable.
| SELECTED FINANCIAL INFORMATION | |||||
| (in thousands of Canadian dollars) | |||||
| December 31 | December 31 | ||||
| CONSOLIDATED BALANCE SHEETS | 2014 | 2013 | |||
| ASSETS | |||||
| Current assets | |||||
| Cash and cash equivalents | $ | 1,419 | $ | 1,200 | |
| Trade and other receivables | 16,663 | 9,891 | |||
| Inventories | 28,548 | 25,032 | |||
| Taxes recoverable | 68 | 281 | |||
| Other assets | 546 | 2,565 | |||
| 47,244 | 38,969 | ||||
| Non-current assets | |||||
| Loan receivable | 5,200 | 5,200 | |||
| Property, plant and equipment | 165,236 | 168,095 | |||
| 170,436 | 173,295 | ||||
| Total assets | $ | 217,680 | $ | 212,264 | |
| LIABILITIES | |||||
| Current liabilities | |||||
| Bank operating advances | $ | 1,610 | $ | 11,641 | |
| Trade payables | 17,805 | 11,514 | |||
| Current portion of debt | 16,416 | 5,704 | |||
| Decommissioning provisions | 30 | 50 | |||
| Other liabilities | 2,505 | 2,294 | |||
| 38,366 | 31,203 | ||||
| Non-current liabilities | |||||
| Non-current portion of debt | 26,064 | 20,980 | |||
| Decommissioning provisions | 5,213 | 2,315 | |||
| Deferred tax liabilities | 14,833 | 15,016 | |||
| Total liabilities | $ | 84,476 | $ | 69,514 | |
| EQUITY | |||||
| Equity attributable to shareholders of Brampton Brick Limited | |||||
| Share capital | $ | 33,711 | $ | 33,711 | |
| Contributed surplus | 2,293 | 2,078 | |||
| Accumulated other comprehensive income | 4,573 | 373 | |||
| Retained earnings | 92,600 | 106,559 | |||
| $ | 133,177 | $ | 142,721 | ||
| Non-controlling interests | 27 | 29 | |||
| Total equity | $ | 133,204 | $ | 142,750 | |
| Total liabilities and equity | $ | 217,680 | $ | 212,264 | |
| SELECTED FINANCIAL INFORMATION | |||||||
| (in thousands of Canadian dollars, except per share amounts) | |||||||
| Year ended | |||||||
| CONSOLIDATED STATEMENTS OF COMPREHENSIVE | December 31 | ||||||
| INCOME (LOSS) | 2014 | 2013 | |||||
| Revenues | $ | 110,329 | $ | 95,286 | |||
| Cost of sales | 92,875 | 73,051 | |||||
| Selling expenses | 9,058 | 8,219 | |||||
| General and administrative expenses | 6,771 | 6,742 | |||||
| (Gain) loss on disposal of property, plant and equipment | (1,609 | ) | 334 | ||||
| Other income | (11 | ) | (140 | ) | |||
| Impairment loss on loan receivable | - | 865 | |||||
| Asset impairment | 11,611 | - | |||||
| 118,695 | 89,071 | ||||||
| Operating (loss) income | (8,366 | ) | 6,215 | ||||
| Finance expense | (5,699 | ) | (2,736 | ) | |||
| (Loss) income before income taxes | (14,065 | ) | 3,479 | ||||
| (Provision for) recovery of income taxes | |||||||
| Current | (79 | ) | 739 | ||||
| Deferred | 183 | (1,589 | ) | ||||
| 104 | (850 | ) | |||||
| Net (loss) income for the year | $ | (13,961 | ) | $ | 2,629 | ||
| Net (loss) income attributable to: | |||||||
| Shareholders of Brampton Brick Limited | $ | (13,959 | ) | $ | 2,549 | ||
| Non-controlling interests | (2 | ) | 80 | ||||
| Net (loss) income for the year | $ | (13,961 | ) | $ | 2,629 | ||
| Other comprehensive income | |||||||
| Items that may be reclassified subsequently to profit or loss: | |||||||
| Foreign currency translation income | $ | 4,200 | $ | 3,028 | |||
| Total comprehensive (loss) income for the year | $ | (9,761 | ) | $ | 5,657 | ||
| Total comprehensive income (loss) attributable to: | |||||||
| Shareholders of Brampton Brick Limited | $ | (9,759 | ) | $ | 5,577 | ||
| Non-controlling interests | (2 | ) | 80 | ||||
| Total comprehensive (loss) income for the year | $ | (9,761 | ) | $ | 5,657 | ||
| Net (loss) income per Class A Subordinate Voting share and Class B Multiple Voting share attributable to shareholders of Brampton Brick Limited | $ | (1.28 | ) | $ | 0.23 | ||
| Weighted average Class A Subordinate Voting shares and Class B Multiple Voting shares outstanding (000's) | 10,940 | 10,940 | |||||
| SELECTED FINANCIAL INFORMATION | |||||||
| (in thousands of Canadian dollars) | |||||||
| Year ended | |||||||
| December 31 | |||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | 2014 | 2013 | |||||
| Cash provided by (used for) | |||||||
| Operating activities | |||||||
| Net (loss) income for the year | $ | (13,961 | ) | $ | 2,629 | ||
| Items not affecting cash and cash equivalents | |||||||
| Depreciation | 8,215 | 7,300 | |||||
| Current taxes | 79 | (739 | ) | ||||
| Deferred taxes | (183 | ) | 1,589 | ||||
| (Gain) loss on disposal of property, plant and equipment | (1,609 | ) | 334 | ||||
| Unrealized foreign currency exchange gain | (80 | ) | (272 | ) | |||
| Impairment loss on loan receivable | - | 865 | |||||
| Impairment loss on property, plant and equipment | 11,611 | - | |||||
| Net interest expense | 5,699 | 2,737 | |||||
| Other | 215 | 183 | |||||
| 9,986 | 14,626 | ||||||
| Changes in non-cash items | |||||||
| Trade and other receivables | (6,584 | ) | 1,020 | ||||
| Inventories | (2,897 | ) | (2,336 | ) | |||
| Other assets | 2,041 | (1,976 | ) | ||||
| Trade payables | 5,921 | (204 | ) | ||||
| Income tax credits applied | 22 | - | |||||
| Other liabilities | 115 | 218 | |||||
| (1,382 | ) | (3,278 | ) | ||||
| Income tax refunds (payments) | 109 | (1,653 | ) | ||||
| Cash provided by operating activities | 8,713 | 9,695 | |||||
| Investing activities | |||||||
| Purchase of property, plant and equipment | (11,377 | ) | (3,422 | ) | |||
| Loan advances to Universal Resource Recovery Inc. | - | (4,673 | ) | ||||
| Proceeds from disposal of property, plant and equipment | 5,905 | 62 | |||||
| Cash used for investment activities | (5,472 | ) | (8,033 | ) | |||
| Financing activities | |||||||
| (Decrease) increase in bank operating advances | (10,031 | ) | 1,206 | ||||
| Proceeds from issuance of the Committed term loan | 26,000 | - | |||||
| Proceeds from issuance of the Demand revolving term loan and other loans | 10,635 | - | |||||
| Proceeds from issuance of the Demand non-revolving loan | - | 2,598 | |||||
| Payment of term loans | (22,754 | ) | (2,571 | ) | |||
| Interest paid | (5,433 | ) | (2,557 | ) | |||
| Payments on obligations under finance leases | (1,224 | ) | (540 | ) | |||
| Payment of dividends by subsidiary to non-controlling interests | - | (63 | ) | ||||
| Cash used for financing activities | (2,807 | ) | (1,927 | ) | |||
| Foreign exchange on cash held in foreign currency | (215 | ) | 53 | ||||
| Increase (decrease) in cash and cash equivalents | 219 | (212 | ) | ||||
| Cash and cash equivalents at the beginning of the year | 1,200 | 1,412 | |||||
| Cash and cash equivalents at the end of the year | $ | 1,419 | $ | 1,200 | |||
| SELECTED FINANCIAL INFORMATION | ||||||||||||||||||||
| (in thousands of Canadian dollars) | ||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY | ||||||||||||||||||||
| Attributable to shareholders of Brampton Brick Limited | ||||||||||||||||||||
| Accumulated | ||||||||||||||||||||
| Other | Non- | |||||||||||||||||||
| Share | Contributed | Comprehensive | Retained | controlling | Total | |||||||||||||||
| Capital | Surplus | (Loss) Income | Earnings | Total | interests | Equity | ||||||||||||||
| Balance - January 1, 2013 | $ | 33,711 | $ | 1,895 | $ | (2,655 | ) | $ | 104,010 | $ | 136,961 | $ | 12 | $ | 136,973 | |||||
| Net income for the year | - | - | - | 2,549 | 2,549 | 80 | 2,629 | |||||||||||||
| Other comprehensive income (net of taxes, $nil) | - | - | 3,028 | - | 3,028 | - | 3,028 | |||||||||||||
| Comprehensive income for the year | - | - | 3,028 | 2,549 | 5,577 | 80 | 5,657 | |||||||||||||
| Dividends paid to non-controlling interests | - | (63 | ) | (63 | ) | |||||||||||||||
| Share-based compensation | - | 183 | - | - | 183 | - | 183 | |||||||||||||
| Balance - December 31, 2013 | $ | 33,711 | $ | 2,078 | $ | 373 | $ | 106,559 | $ | 142,721 | $ | 29 | $ | 142,750 | ||||||
| Balance - January 1, 2014 | $ | 33,711 | $ | 2,078 | $ | 373 | $ | 106,559 | $ | 142,721 | $ | 29 | $ | 142,750 | ||||||
| Net loss for the year | - | - | - | (13,959 | ) | (13,959 | ) | (2 | ) | (13,961 | ) | |||||||||
| Other comprehensive income (net of taxes, $nil) | - | - | 4,200 | - | 4,200 | - | 4,200 | |||||||||||||
| Comprehensive income (loss) for the year | - | - | 4,200 | (13,959 | ) | (9,759 | ) | (2 | ) | (9,761 | ) | |||||||||
| Share-based compensation | - | 215 | - | - | 215 | - | 215 | |||||||||||||
| Balance - December 31, 2014 | $ | 33,711 | $ | 2,293 | $ | 4,573 | $ | 92,600 | $ | 133,177 | $ | 27 | $ | 133,204 | ||||||
Contact Information:
Jeffrey G. Kerbel
President and Chief Executive Officer
905-840-1011
Brampton Brick Limited
Trevor M. Sandler
Vice-President, Finance and Chief Financial Officer
905-840-1011
905-840-1535 (FAX)
investor.relations@bramptonbrick.com