MISSISSAUGA, ONTARIO--(Marketwired - Aug. 12, 2015) - KP Tissue Inc. ("KPT") (TSX:KPT) reports the Q2 2015 Financial and Operational Results of KPT and Kruger Products L.P. (KPLP):
- Revenue increased by 5.3% to $279.3 million in Q2 2015 compared to $265.3 million in Q2 2014
- EBITDA increased by 4.1% to $30.2 million in Q2 2015 from $29.0 million in Q2 2014
- Maintained number one overall consumer market share in Canada
- Achieved TAD Product EBITDA contribution of $11.2 million in Q2 2015 compared to $7.8 million in Q2 2014
"We are pleased with EBITDA of $30.2 million for the quarter, considering the persistent negative impact of foreign exchange, high commodity prices and the competitive environment in the North American tissue market. Despite these challenges, we remained the clear overall market leader in the Canadian Consumer tissue market. We achieved higher EBITDA contribution from our TAD products, and from the Away-From-Home segment with the integration of the Metro Paper acquisition. Further, our incremental cost reduction initiatives are partially offsetting the impact of the adverse market conditions," said Mario Gosselin, CEO of KP Tissue and KPLP.
"The EBITDA outlook for the third quarter is for a slight improvement over the second quarter of 2015. When compared with Q3 last year, we expect that Q3 2015 EBITDA will be lower primarily due to the negative impact of foreign exchange," concluded Mr. Gosselin.
KP Tissue Inc.
KPT currently holds a 16.4% interest in KPLP. The highlights, discussion and analysis in this earnings release, unless identified specifically as representing the financial results of only KPT, relates entirely to the financial results of KPLP.
KPLP Q2 2015 Financial Results
Revenue in Q2 2015 was $279.3 million, compared to $265.3 million in Q2 2014, an increase of $14.0 million or 5.3%. The increase in revenue was due to additional sales volume in the Consumer segment in Canada and Mexico, and a significant increase in AFH segment revenue resulting from the acquisition of Metro Paper. In the Consumer U.S. business, sales volume declined due to comparatively higher promotional activities in Q2 2014, which was partially offset by the favourable impact of foreign exchange on U.S. dollar sales.
Cost of sales in Q2 2015 was $240.4 million, compared to $226.3 million in Q2 2014 primarily due to the negative impact of foreign exchange fluctuations. Pulp market prices (NBSK) decreased while Eucalyptus (BEK) was up compared to the same period in 2014. Cost of sales was also negatively impacted in the quarter by a $3.4 million pension revaluation for past service costs. Cost reduction initiatives and lower natural gas prices and freight costs partially offset the above increases in cost of sales. As a percentage of revenue, cost of sales was 86.1% in Q2 2015 compared to 85.3% in Q2 2014.
Selling, general and administrative (SG&A) expenses in Q2 2015 were $21.3 million, compared to $19.9 million in Q2 2014 primarily due to higher selling expenses as a result of increased sales volume and the unfavourable impact of foreign exchange. As a percentage of revenue, SG&A expenses were 7.6% in Q2 2015 compared to 7.5% in Q2 2014.
EBITDA in Q2 2015 was $30.2 million compared to $29.0 million in Q2 2014 as the positive impact of increased sales was partially offset by higher SG&A and the net negative impact of foreign exchange in Q2 2015 compared to Q2 2014. TAD Product EBITDA increased to $11.2 million in Q2 2015 from $7.8 million in Q2 2014 due to improved sales mix, favourable foreign exchange on U.S. sales and the continued ramp-up in manufacturing operational efficiencies.
Net income in Q2 2015 was $3.2 million compared to $8.1 million in Q2 2014. The decrease was primarily due to a pension revaluation related to past service costs of $3.4 million, a change in the tax expense of $1.1 million, an increase in interest expense of $1.1 million and a decrease in the unrealized foreign exchange gain of $0.7 million, partially offset by higher EBITDA of $1.2 million.
The cash balance as of June 28, 2015 was $35.3 million compared to $32.0 million as of March 29, 2015. Cash generated from operating activities resulting from EBITDA in Q2 2015, was partially offset by higher working capital requirements, as well as capital spending and interest payments in the quarter.
KPT Q2 2015 Financial Results
KPT incurred a net loss of $0.9 million in Q2 2015. Included in the net loss was $0.5 million representing KPT's share of KPLP's income. The income was reduced by the net of depreciation expense of $1.4 million related to adjustments to carrying amounts on acquisition, and an income tax expense of $0.1 million.
KPLP Distribution
KPLP will pay a distribution of $0.18 per KPLP unit to its partners on or prior to October 15, 2015.
Dividends on Common Shares
The Board of Directors of KP Tissue Inc. declared a quarterly dividend of $0.18 per share to be paid on October 15, 2015 to shareholders of record at the close of business on September 30, 2015.
Additional Information
For additional information please refer to Management's Discussion and Analysis ("MD&A") of KPT and KPLP for the second quarter ended June 28, 2015 available on SEDAR at www.sedar.com or our website at www.kptissueinc.com.
Conference Call Information
KPT will hold its second quarter conference call on Wednesday, August 12, 2015 at 8:30 a.m. Eastern Time.
Details of Conference Call
Via telephone: 1-877-223-4471 or 647-788-4922
Via the internet at: www.kptissueinc.com
Presentation material referenced during the conference call will be available at www.kptissueinc.com.
Conference Call Rebroadcast
A rebroadcast of the conference call will be available until midnight, September 11, 2015 by dialing 800-585-8367 or 416-621-4642 and entering passcode 82096316.
The replay of the webcast will remain available on the web site until midnight, September 11, 2015.
About KP Tissue Inc. (KPT)
KPT was created to acquire, and its business is limited to holding, a limited partnership interest in KPLP, which is accounted for as an investment on the equity basis. KPT currently holds a 16.4% interest in KPLP. For more information visit www.kptissueinc.com.
About Kruger Products L.P. (KPLP)
KPLP is Canada's leading manufacturer of quality tissue products for household, industrial and commercial use. KPLP serves the Canadian consumer market with such well-known brands as Cashmere®, Purex®, SpongeTowels®, Scotties®' and White Swan®. In the U.S., KPLP manufactures the White Cloud® brand, as well as many private label products. The Away-From-Home division manufactures and distributes high-quality, cost-effective product solutions to a wide range of commercial and public entities. KPLP has approximately 2,500 employees across North America and operates five FSC® CoC- certified mills (FSC® C104904), four of which are located in Canada and one in the US. For more information visit www.krugerproducts.ca.
Non-IFRS Measures
This press release uses certain non-IFRS financial measures and ratios which KPLP believes provide useful information to both management of KPLP and the readers of the financial information in measuring the financial performance and financial condition of KPLP. These measures do not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similarly titled measures presented by other companies. An example of such measures is EBITDA. EBITDA is not a measurement of operating performance computed in accordance with IFRS and should not be considered as a substitute for operating income, net income or cash flows from operating activities computed in accordance with IFRS. "EBITDA" is calculated by KPLP as net income (loss) before (i) interest expense, (ii) income taxes, (iii) depreciation, (iv) amortization, (v) impairment of non-financial assets, (vi) loss (gain) on disposal of property, plant and equipment, (vii) unrealized foreign exchange loss (gain), (viii) one-time costs related to restructuring activities, (ix) change in the amortized cost of the Partnership unit liability, and (x) one-time costs due to pension revaluations related to past service. A reconciliation of EBITDA to the relevant reported results can be found in the Management's Discussion and Analysis ("MD&A") of KPT and KPLP for the second quarter ended June 28, 2015 available on SEDAR at www.sedar.com.
Forward-Looking Statements
Certain statements in this press release about KPT's and KPLP's current and future plans, expectations and intentions, results, levels of activity, performance, goals or achievements or any other future events or developments constitute forward-looking statements. The words "may", "will", "would", "should", "could", "expects", "plans", "intends", "trends", "indications", "anticipates", "believes", "estimates", "predicts", "likely" or "potential" or the negative or other variations of these words or other comparable words or phrases, are intended to identify forward-looking statements. The forward-looking information is based on certain key expectations and assumptions made by KPT, including expectations and assumptions concerning the impact of the TAD Project on EBITDA. Although KPT believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information since no assurance can be given that such expectations and assumptions will prove to be correct.
Many factors could cause KPLP's actual results, level of activity, performance or achievements or future events or developments (which could in turn affect the economic benefits derived from the Corporation's economic interest in KPLP) to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, the following factors, which are discussed in greater detail in the "Risk Factors - Risks Related to KPLP's Business" section of the KPT Annual Information Form dated March 12, 2015 available on SEDAR at www.sedar.com: Kruger Inc.'s influence over KPLP; KPLP's reliance on Kruger Inc.; consequences of an event of insolvency relating to Kruger Inc.; risks associated with the TAD Project; operational risks; Gatineau Plant land lease; significant increases in input costs; reduction in supply of fibre; increased pricing pressure and intense competition; KPLP's inability to innovate effectively; adverse economic conditions; dependence on key retail trade customers; damage to the reputation of KPLP or KPLP's brands; KPLP's sales being less than anticipated; KPLP's failure to implement its business and operating strategies; KPLP's obligation to make regular capital expenditures; KPLP's entering into unsuccessful acquisitions; KPLP's dependence on key personnel; KPLP's inability to retain its existing customers or obtain new customers; KPLP's loss of key suppliers; KPLP's failure to adequately protect its intellectual property rights; KPLP's reliance on third party intellectual property licenses; adverse litigation and other claims affecting KPLP; material expenditures due to comprehensive environmental regulation affecting KPLP's cash flow; KPLP's pension obligations are significant and can be materially higher than predicted if KPLP Management's underlying assumptions are incorrect; labour disputes adversely affecting KPLP's cost structure and KPLP's ability to run its plants; exchange rate and U.S. competitors; KPLP's inability to service all of its indebtedness; exposure to potential consumer product liability, restrictive covenants; interest rate and refinancing risk; information technology and innovation; insurance; and internal controls.
Readers should not place undue reliance on forward-looking statements made herein. The forward-looking information contained herein is expressly qualified in its entirety by this cautionary statement. The forward-looking information contained herein is made as of the date of press release and KPT undertakes no obligation to publicly update such forward-looking information to reflect new information, subsequent or otherwise, unless required by applicable securities laws.
| Kruger Products L.P. | ||||
| Unaudited Condensed Consolidated Statement of Financial Position | ||||
| (thousands of Canadian dollars) | ||||
| June 28, 2015 | December 31, 2014 | |||
| $ | $ | |||
| Assets | ||||
| Current assets | ||||
| Cash and cash equivalents | 35,273 | 51,788 | ||
| Trade and other receivables | 105,819 | 107,092 | ||
| Receivables from related parties | 221 | 301 | ||
| Advances to partners | 3,162 | 3,474 | ||
| Inventories | 161,961 | 150,328 | ||
| Current portion of income tax recoverable | 1,151 | 1,302 | ||
| Prepaid expenses and other current assets | 11,395 | 7,351 | ||
| 318,982 | 321,636 | |||
| Non-current assets | ||||
| Property, plant & equipment | 672,950 | 652,762 | ||
| Other long-term assets | 7,780 | 7,738 | ||
| Income tax recoverable | 16,252 | 15,309 | ||
| Goodwill | 160,939 | 160,939 | ||
| Intangible assets | 13,919 | 14,052 | ||
| Deferred income taxes | 20,808 | 19,565 | ||
| Total assets | 1,211,630 | 1,192,001 | ||
| Liabilities | ||||
| Current liabilities | ||||
| Trade and other payables | 158,899 | 173,228 | ||
| Payables to related parties | 3,637 | 4,387 | ||
| Distributions payable | 9,750 | 9,781 | ||
| Current portion of provisions | 3,602 | 2,967 | ||
| Current portion of long-term debt | 9,351 | 8,879 | ||
| 185,239 | 199,242 | |||
| Non-current liabilities | ||||
| Long-term debt | 377,314 | 358,646 | ||
| Other long-term liabilities | 94 | 156 | ||
| Provisions | 6,913 | 6,441 | ||
| Pensions | 108,382 | 98,533 | ||
| Post-retirement benefits | 56,173 | 53,357 | ||
| Liabilities to non-unitholders | 734,115 | 716,375 | ||
| Current portion of Partnership units liability | 6,949 | 6,949 | ||
| Long-term portion of Partnership units liability | 117,387 | 121,174 | ||
| Total Partnership units liability | 124,336 | 128,123 | ||
| Total liabilities | 858,451 | 844,498 | ||
| Equity | ||||
| Partnership units | 308,584 | 299,616 | ||
| Retained earnings (deficit) | (15,503 | ) | 4,424 | |
| Accumulated other comprehensive income | 60,098 | 43,463 | ||
| Total equity | 353,179 | 347,503 | ||
| Total equity and liabilities | 1,211,630 | 1,192,001 | ||
| Kruger Products L.P. | |||||||||
| Unaudited Condensed Consolidated Statement of Comprehensive Income (Loss) | |||||||||
| (thousands of Canadian dollars) | |||||||||
| 13-week | 13-week | 26-week | 26-week | ||||||
| period ended | period ended | period ended | period ended | ||||||
| June 28, 2015 | June 29, 2014 | June 28, 2015 | June 29, 2014 | ||||||
| $ | $ | $ | $ | ||||||
| Revenue | 279,337 | 265,284 | 544,713 | 499,892 | |||||
| Expenses | |||||||||
| Cost of sales | 240,413 | 226,352 | 462,953 | 425,223 | |||||
| Selling, general and administrative expenses | 21,277 | 19,882 | 42,896 | 40,408 | |||||
| Restructuring costs | - | 51 | 1,054 | 2,835 | |||||
| Operating income | 17,647 | 18,999 | 37,810 | 31,426 | |||||
| Interest expense | 12,473 | 11,393 | 22,815 | 22,301 | |||||
| Other (income) expense | 1,167 | (158 | ) | 5,949 | 4,870 | ||||
| Income before income taxes | 4,007 | 7,764 | 9,046 | 4,255 | |||||
| Income taxes | 832 | (355 | ) | 1,161 | (641 | ) | |||
| Net income for the period | 3,175 | 8,119 | 7,885 | 4,896 | |||||
| Other comprehensive income (loss) | |||||||||
| Items that will not be reclassified to net income: | |||||||||
| Remeasurements of pensions | 11,368 | (30,593 | ) | (6,038 | ) | (29,512 | ) | ||
| Remeasurements of post-retirement benefits | 1,503 | (2,646 | ) | (2,149 | ) | (3,493 | ) | ||
| Items that may be subsequently reclassified to net income: | |||||||||
| Available-for-sale investment | 222 | (113 | ) | (29 | ) | (138 | ) | ||
| Cumulative translation adjustment | (7,213 | ) | (10,027 | ) | 16,664 | 779 | |||
| Total other comprehensive income (loss) for the period | 5,880 | (43,379 | ) | 8,448 | (32,364 | ) | |||
| Comprehensive income (loss) for the period | 9,055 | (35,260 | ) | 16,333 | (27,468 | ) | |||
| Kruger Products L.P. | |||||||||
| Unaudited Condensed Consolidated Statement of Cash Flows | |||||||||
| (thousands of Canadian dollars) | |||||||||
| 13-week | 13-week | 26-week | 26-week | ||||||
| period ended | period ended | period ended | period ended | ||||||
| June 28, 2015 | June 29, 2014 | June 28, 2015 | June 29, 2014 | ||||||
| $ | $ | $ | $ | ||||||
| Cash flows from (used in) operating activities | |||||||||
| Net income for the period | 3,175 | 8,119 | 7,885 | 4,896 | |||||
| Items not affecting cash | |||||||||
| Depreciation | 9,234 | 9,387 | 18,978 | 18,194 | |||||
| Amortization | 174 | 187 | 337 | 331 | |||||
| Loss (gain) on sale of fixed assets | (26 | ) | 298 | 139 | 298 | ||||
| Change in amortized cost of Partnership units liability | 1,850 | 1,514 | 3,162 | 4,864 | |||||
| Unrealized foreign exchange (gain) loss | (946 | ) | (1,596 | ) | 2,352 | 83 | |||
| Interest expense | 12,473 | 11,393 | 22,815 | 22,301 | |||||
| Pension and post retirement benefits | 6,096 | 2,308 | 8,776 | 5,004 | |||||
| Provisions | 358 | 237 | 1,691 | 2,421 | |||||
| Income taxes | 832 | (355 | ) | 1,161 | (641 | ) | |||
| Total items not affecting cash | 30,045 | 23,373 | 59,411 | 52,855 | |||||
| Net change in non-cash working capital | (6,075 | ) | 9,734 | (29,484 | ) | (17,268 | ) | ||
| Contributions to pension and post-retirement benefit plans | (3,768 | ) | (8,366 | ) | (7,402 | ) | (16,216 | ) | |
| Provisions paid | (442 | ) | (336 | ) | (707 | ) | (837 | ) | |
| Income tax payments | (451 | ) | (513 | ) | (1,006 | ) | (886 | ) | |
| Net cash from operating activities | 22,484 | 32,011 | 28,697 | 22,544 | |||||
| Cash flows from (used in) investing activities | |||||||||
| Purchases of property, plant & equipment | (8,192 | ) | (9,222 | ) | (17,654 | ) | (19,578 | ) | |
| Purchases of software | (39 | ) | (759 | ) | (204 | ) | (768 | ) | |
| Proceeds on sale of property, plant and equipment | 96 | 1 | 282 | 1 | |||||
| Acqusition of business | - | (23,360 | ) | - | (23,360 | ) | |||
| Net cash used in investing activities | (8,135 | ) | (33,340 | ) | (17,576 | ) | (43,705 | ) | |
| Cash flows from (used in) financing activities | |||||||||
| Repayment of credit facilities | (306 | ) | (306 | ) | (510 | ) | (510 | ) | |
| Interest paid on credit facilities | (3,324 | ) | (3,233 | ) | (10,539 | ) | (10,397 | ) | |
| Distributions and advances paid | (7,111 | ) | (6,934 | ) | (17,522 | ) | (15,804 | ) | |
| Proceeds from issuing partnership units | - | 321 | 195 | 574 | |||||
| Net cash used in financing activities | (10,741 | ) | (10,152 | ) | (28,376 | ) | (26,137 | ) | |
| Effect of exchange rate changes on cash and cash equivalents held in foreign currency | (292 | ) | (771 | ) | 740 | 108 | |||
| Increase (decrease) in cash and cash equivalents during the period | 3,316 | (12,252 | ) | (16,515 | ) | (47,190 | ) | ||
| Cash and cash equivalents - Beginning of period | 31,957 | 52,736 | 51,788 | 87,674 | |||||
| Cash and cash equivalents - End of period | 35,273 | 40,484 | 35,273 | 40,484 | |||||
| Kruger Products L.P. | |||||||||
| Segment and Geographic Results | |||||||||
| (thousands of Canadian dollars) | |||||||||
| 13-week | 13-week | 26-week | 26-week | ||||||
| period ended | period ended | period ended | period ended | ||||||
| June 28, 2015 | June 29, 2014 | June 28, 2015 | June 29, 2014 | ||||||
| $ | $ | $ | $ | ||||||
| Segment Information | |||||||||
| Segment Revenue | |||||||||
| Consumer | 217,045 | 216,900 | 427,195 | 415,278 | |||||
| AFH | 57,438 | 44,264 | 105,997 | 77,746 | |||||
| Other | 4,854 | 4,120 | 11,521 | 6,868 | |||||
| Total segment revenue | 279,337 | 265,284 | 544,713 | 499,892 | |||||
| Segment EBITDA | |||||||||
| Consumer | 29,122 | 29,541 | 59,419 | 54,490 | |||||
| AFH | 2,055 | 137 | 3,023 | (387 | ) | ||||
| Other | (995 | ) | (680 | ) | (1,143 | ) | (942 | ) | |
| Total segment EBITDA | 30,182 | 28,998 | 61,299 | 53,161 | |||||
| Reconciliation to Net Income: | |||||||||
| Depreciation and amortization | 9,408 | 9,574 | 19,315 | 18,525 | |||||
| Interest expense | 12,473 | 11,393 | 22,815 | 22,301 | |||||
| Change in amortized cost of Partnership units liability | 1,850 | 1,514 | 3,162 | 4,864 | |||||
| Gain (loss) on sale of fixed assets | (26 | ) | 298 | 139 | 298 | ||||
| Pension revaluation - past service cost | 3,416 | - | 3,416 | - | |||||
| Restructuring costs | - | 51 | 1,054 | 2,835 | |||||
| Unrealized foreign exchange (gain) loss | (946 | ) | (1,596 | ) | 2,352 | 83 | |||
| Income before income taxes | 4,007 | 7,764 | 9,046 | 4,255 | |||||
| Income taxes | 832 | (355 | ) | 1,161 | (641 | ) | |||
| Net income for the period | 3,175 | 8,119 | 7,885 | 4,896 | |||||
| Geographic Revenue | |||||||||
| Canada | 180,809 | 172,981 | 344,202 | 334,141 | |||||
| U.S. | 90,427 | 86,310 | 183,805 | 153,068 | |||||
| Mexico | 8,101 | 5,993 | 16,706 | 12,683 | |||||
| Total Revenue | 279,337 | 265,284 | 544,713 | 499,892 | |||||
| KP Tissue Inc. | |||||
| Unaudited Condensed Statement of Financial Position | |||||
| (thousands of Canadian dollars) | |||||
| June 28, 2015 | December 31, 2014 | ||||
| $ | $ | ||||
| Assets | |||||
| Current assets | |||||
| Distributions receivable | 1,602 | 1,601 | |||
| Receivable from Partnership | 30 | - | |||
| 1,632 | 1,601 | ||||
| Non-current assets | |||||
| Investment in associate | 150,751 | 153,732 | |||
| Total Assets | 152,383 | 155,333 | |||
| Liabilities | |||||
| Current liabilities | |||||
| Dividend payable | 1,602 | 1,601 | |||
| Payable to Partnership | - | 53 | |||
| Advances from Partnership | 526 | 584 | |||
| Income taxes payable | 89 | 495 | |||
| 2,217 | 2,733 | ||||
| Non-current liabilities | |||||
| Deferred income taxes | 1,734 | 2,005 | |||
| Total liabilities | 3,951 | 4,738 | |||
| Equity | |||||
| Common shares | 10,740 | 10,138 | |||
| Contributed surplus | 144,819 | 144,819 | |||
| Deficit | (18,096 | ) | (12,220 | ) | |
| Accumulated other comprehensive income | 10,969 | 7,858 | |||
| Total equity | 148,432 | 150,595 | |||
| Total liabilities and equity | 152,383 | 155,333 | |||
| KP Tissue Inc. | |||||||||
| Unaudited Condensed Statement of Comprehensive Income (Loss) | |||||||||
| (thousands of Canadian dollars, except share and per share amounts) | |||||||||
| 13-week | 13-week | 26-week | 26-week | ||||||
| period ended | period ended | period ended | period ended | ||||||
| June 28, 2015 | June 29, 2014 | June 28, 2015 | June 29, 2014 | ||||||
| $ | $ | $ | $ | ||||||
| Equity loss | (909 | ) | (96 | ) | (1,567 | ) | (2,179 | ) | |
| Dilution gain | 37 | 14 | 122 | 58 | |||||
| Loss before income taxes | (872 | ) | (82 | ) | (1,445 | ) | (2,121 | ) | |
| Income taxes | 75 | 190 | 139 | (167 | ) | ||||
| Net loss for the period | (947 | ) | (272 | ) | (1,584 | ) | (1,954 | ) | |
| Other comprehensive income (loss) | |||||||||
| net of tax expense (recovery) | |||||||||
| Items that will not be reclassified to net loss: | |||||||||
| Remeasurements of pensions | 1,631 | (4,437 | ) | (864 | ) | (4,280 | ) | ||
| Remeasurements of post-retirement benefits | 151 | (232 | ) | (216 | ) | (355 | ) | ||
| Items that may be subsequently reclassified to net loss: | |||||||||
| Available-for-sale investment | 32 | (17 | ) | (4 | ) | (21 | ) | ||
| Cumulative translation adjustment | (296 | ) | (1,897 | ) | 3,115 | 152 | |||
| Total other comprehensive income (loss) for the period | 1,518 | (6,583 | ) | 2,031 | (4,504 | ) | |||
| Comprehensive income (loss) for the period | 571 | (6,855 | ) | 447 | (6,458 | ) | |||
| Basic loss per share | (0.11 | ) | (0.03 | ) | (0.18 | ) | (0.22 | ) | |
| Weighted average number of shares outstanding | 8,894,391 | 8,825,516 | 8,883,295 | 8,815,777 | |||||
| KP Tissue Inc. | |||||||||
| Unaudited Condensed Statement of Cash Flows | |||||||||
| (thousands of Canadian dollars) | |||||||||
| 13-week | 13-week | 26-week | 26-week | ||||||
| period ended | period ended | period ended | period ended | ||||||
| June 28, 2015 | June 29, 2014 | June 28, 2015 | June 29, 2014 | ||||||
| $ | $ | $ | $ | ||||||
| Cash flows from (used in) operating activities | |||||||||
| Net loss for the period | (947 | ) | (272 | ) | (1,584 | ) | (1,954 | ) | |
| Items not affecting cash | |||||||||
| Equity loss | 909 | 96 | 1,567 | 2,179 | |||||
| Dilution gain | (37 | ) | (14 | ) | (122 | ) | (58 | ) | |
| Income taxes | 75 | 190 | 139 | (167 | ) | ||||
| Total items not affecting cash | 947 | 272 | 1,584 | 1,954 | |||||
| Tax payments | (307 | ) | (234 | ) | (1,097 | ) | (693 | ) | |
| Tax distribution received | - | - | 571 | 459 | |||||
| Advances received | 307 | 234 | 526 | 234 | |||||
| Net cash from (used in) operating activities | - | - | - | - | |||||
| Cash flows from (used in) investing activites | |||||||||
| Investment in associate | - | (321 | ) | (195 | ) | (574 | ) | ||
| Partnership unit distributions received | 1,209 | 1,585 | 2,804 | 3,168 | |||||
| Net cash from investing activities | 1,209 | 1,264 | 2,609 | 2,594 | |||||
| Cash flows from (used in) financing activities | |||||||||
| Issuance of common shares | - | 321 | 195 | 574 | |||||
| Dividends paid | (1,209 | ) | (1,585 | ) | (2,804 | ) | (3,168 | ) | |
| Net cash used in financing activities | (1,209 | ) | (1,264 | ) | (2,609 | ) | (2,594 | ) | |
| Increase (decrease) in cash and cash equivalents during the period | - | - | - | - | |||||
| Cash and cash equivalents - Beginning of period | - | - | - | - | |||||
| Cash and cash equivalents - End of period | - | - | - | - | |||||
Contact Information:
Francois Paroyan
General Counsel and Corporate Secretary
KP Tissue Inc.
905.812.6936
francois.paroyan@krugerproducts.ca
Investors:
Mike Baldesarra
Director of Investor Relations
KP Tissue Inc.
905.812.6962
IR@KPTissueinc.com