Martinrea International Inc.
TSX : MRE

Martinrea International Inc.

May 07, 2009 17:11 ET

Martinrea International Inc.: Releases First Quarter Results 2009

TORONTO, ONTARIO--(Marketwire - May 7, 2009) - Martinrea International Inc. (TSX:MRE), a leader in the production of quality metal parts, assemblies and modules and fluid management systems focused primarily on the automotive sector, announced today the release of its financial results for its first quarter ended March 31, 2009. Martinrea currently employs approximately 4,400 skilled and motivated people in 32 plants in Canada, the United States, Mexico, and Europe. All amounts in this press release are in Canadian dollars, unless otherwise stated, and all tabular amounts are in thousands of Canadian dollars, except earnings per share and number of shares.



REVENUE

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Three months ended
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March 31, March 31, (%)
2009 2008 Change Change
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Revenue 205,072 433,827 (228,755) (52.7%)
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First Quarter 2009 to First Quarter 2008 comparison

Revenue for the first quarter of 2009 decreased from the prior year by 52.7% primarily due to significant production reductions by customers in North American light vehicle platforms as a result of the North American economic recession and customer pricing pressures. This decrease was partially offset by a decline in the value of the Canadian dollar versus the U.S. dollar in the first quarter of 2009 as compared to the first quarter of 2008 which increased the translation of U.S. dollar denominated revenues by $28.8 million. Tooling sales relating to new program launches decreased by $12.4 million in the quarter ended March 31, 2009 compared to the quarter ended March 31, 2008.

First Quarter 2009 to Fourth Quarter 2008 comparison

Revenues for the first quarter of 2009 of $205.1 million decreased by 42.5% or $151.8 million compared to revenues in the fourth quarter of 2008 of $356.9 million. This decrease was primarily due to the significant production reductions by customers in North American light vehicle platforms particularly during the month of January 2009 offset in part by a decline in the value of the Canadian dollar versus the U.S. dollar increasing the translation of U.S. dollar denominated revenues by approximately $3.2 million. During the first quarter of 2009, tooling sales relating to new program launches decreased by $31.2 million compared to the fourth quarter of 2008.



GROSS MARGIN

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Three months ended
----------------------
March 31, March 31,
2009 2008 Change % Change
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Gross Margin 3,705 40,140 (36,435) (90.8%)
% of revenues 1.8% 9.3%
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Due to the adoption of the new CICA Handbook Section 3031, Inventories during 2008, the amortization of property, plant and equipment ("PP&E") that are directly related to production have been reclassified to cost of sales. The comparative amounts for 2008 have also been reclassified to conform to the current year's presentation.

First Quarter 2009 to First Quarter 2008 comparison

Gross margin percentage of 1.8% for the first quarter of 2009 decreased by 7.5% compared to the gross margin percentage in the first quarter of 2008 of 9.3% . Excluding the impact for one-time costs in the first quarter of 2009 for the closure of the Kitchener facility discussed below in "Adjustments to Net Income", the gross margin decline in the first quarter of 2009 as compared to the first quarter of 2008 would have been 6.5% . The gross margin percentage reduction is primarily due to under absorption of manufacturing overhead including the amortization of production PP&E as a result of low production volumes, change in product mix resulting from significant reductions in the light truck and sport utility platforms and continuous pricing pressures from customers that continue to be a normal part of the North American automotive parts industry. The Company will continue its efficiency programs, the utilization of available capacity and the rationalization of operating facilities as necessary.

First Quarter 2009 to Fourth Quarter 2008 comparison

Gross margin percentage of 1.8% for the first quarter of 2009 decreased by 2.3% compared to the gross margin percentage in the fourth quarter of 2008 of 4.1% . Excluding one-time costs of $7.5 million in the fourth quarter of 2008 for development and insolvency costs and $2.0 million in the first quarter of 2009 for Kitchener period costs to facilitate closure as discussed below in "Adjustments to Net Income", the gross margin decline in the first quarter of 2009 as compared to the fourth quarter of 2008 would have been 3.4% . The gross margin percentage reduction is primarily due to under absorption of manufacturing overheads including the amortization of production PP&E as a result of low production volumes, change in product mix resulting from significant reductions in the light truck and sport utility platforms and continuous pricing pressures from customers that continue to be a normal part of the North American automotive parts industry.



SELLING, GENERAL & ADMINISTRATIVE ("SG&A")

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Three months ended
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March 31, March 31, (%)
2009 2008 Change Change
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SG&A 16,942 23,175 (6,233) (26.9%)
% of revenues 8.3% 5.3%
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First Quarter 2009 to First Quarter 2008 comparison

SG&A expenses for the first quarter of 2009 decreased by $6.2 million as a direct result of management's ability to proactively and effectively react to the reduced volumes by implementing strict cost control measures primarily from the reduction of personnel and other cost control measures. SG&A in the first quarter of 2009 also included approximately $1.0 million of period costs associated with the closing of the Kitchener facility as discussed in "Adjustments to Net Income" below.

On a percentage of revenue basis, the percentage increased by 3.0% primarily due to the 52.7% reduction in revenues during the first quarter of 2009 as compared to the first quarter of 2008. Further reductions of SG&A costs may be necessary if revenue continues to decline.

First Quarter 2009 to Fourth Quarter 2008 comparison

SG&A expenses for the first quarter of 2009 decreased by $0.6 million compared to the fourth quarter of 2008 as a result of management's continued efforts in implementing the strict cost reduction measures aimed at bringing the cost structure in line with the reduced volumes. The reduction in SG&A expenses in the first quarter of 2009 as compared to the fourth quarter of 2008 would have been $1.6 million if $1.0 million of period costs associated with the closing of the Kitchener facility as discussed in "Adjustments to Net Income" below were not incurred.

On a percentage of revenue basis, SG&A expenses increased by 3.4% in the first quarter of 2009 as compared to the fourth quarter of 2008 primarily due to the 42.5% reduction in revenue in the first quarter of 2009 as compared to the fourth quarter of 2008. Further reductions of SG&A costs may be necessary if revenue continues to decline.

ADJUSTMENTS TO NET INCOME

As a result of the economic recession in North America that has caused significant production reduction by customers and a number of industry-related developments and risks described in the Company's public filings, and the rationalization of the Company's manufacturing facilities, the Company recorded a number of unusual items and other items primarily during the fourth quarter of 2008 and the first quarter of 2009. The Company believes that it is useful to set out in detail these unusual and other items as they are non-recurring and thus the Company's financial results for the quarter ended March 31, 2009 may not be indicative of future results.



TABLE A
-------

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Three months ended
--------------------
March 31, March 31,
2009 2008 Change
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NET EARNINGS (LOSS) (PER CANADIAN GAAP)(A) (11,774) 9,906 (21,680)

Add back - Unusual Items

Employee Related Severance Costs(1) 1,195 - 1,195

Restructuring Costs(2) 3,202 - 3,202

Restructuring Costs - Kitchener period
costs recorded as cost of sales(2) 2,015 - 2,015

Restructuring Costs - Kitchener period costs
recorded as Selling, general and
administrative expenses(2) 1,030 - 1,030

Other Items:

Gain on Sale of Land(3) (3,963) - (3,963)
----------------------------

TOTAL UNUSUAL AND OTHER ITEMS BEFORE TAX 3,479 - 3,479

Tax Impact of above items (2,243) - (2,243)
----------------------------

TOTAL UNUSUAL AND OTHER ITEMS AFTER TAX(B) 1,236 - 1,236

ADJUSTED NET EARNINGS (LOSS) (NON
CANADIAN GAAP) (A+B) (10,538) 9,906 (20,444)


Number of Shares Outstanding - Basic ('000) 71,826 71,826

Adjusted Basic Earnings (Loss) Per Share (0.15) 0.14

Number of Shares Outstanding - Diluted ('000) 72,426 72,627

Adjusted Diluted Earnings (Loss) Per Share (0.15) 0.14
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(1) Employee Related Severance Costs

On April 23, 2008, Kitchener Frame Limited ("KFL"), a subsidiary of the Company, informed its employees of the impending plant closure of the Kitchener facility. The closure date of the plant was expected to occur on April 23, 2009, with an option of the manufacturing operations being extended until approximately July 2010, pending the extension of a contract from one of its customers. However during the fourth quarter of 2008, Martinrea was notified by its customer that there would be no extension of the contract and that the customer would terminate the existing program as of December 23, 2008 and therefore production of KFL's key products would end on that date. As a result of this notice, the Company completed its closure plan for KFL and KFL's production operations ceased on December 31, 2008. The complete wind up was completed in April 2009. Accordingly the Company incurred a significant amount of severance costs relating to the closure of KFL which were accrued in accordance with the applicable accounting standards in the fourth quarter of 2008. Employee related severance costs of $1.2 million were recorded in the first quarter of 2009 as restructuring costs as described in note 7 of the financial statements for the first quarter of 2009.

In addition, severance costs were also incurred at other facilities as a result of right-sizing.

(2) Restructuring Costs

In response to the significant decline in volumes in the fourth quarter of 2008 which have continued into the first quarter of 2009, lower future forecasted volumes and to realign its operations, the Company has taken certain initiatives to prepare for a profitable and sustainable future. In so doing, certain restructuring costs of $6.2 million were incurred during the first quarter of 2009 in addition to the $12.8 million expensed during the fourth quarter of 2008. These initiatives include strict cost reduction measures across the entire organization, consolidation of certain facilities, closing of the KFL facility in Kitchener as discussed in "Employee Related Severance Costs" above, the rationalization of excess capacity at certain facilities by moving equipment and programs between facilities and other cash preservation measures.

It is anticipated that the Company will incur total restructuring costs of $62.0 to $65.0 million (combining this Item 2 with "Employee Related Severance Costs" in Item 1 above) of which $50.2 million was expensed during 2008 and $7.4 million expensed during the first quarter of 2009 as outlined in note 7 of the interim consolidated financial statements for the first quarter of 2009. It is anticipated that the remaining amounts of $4.7 to $7.7 million will be incurred during the remaining quarters of 2009 as some costs did not meet the recognition criteria stipulated by Canadian GAAP for expense recognition in 2008 or the first quarter of 2009.

(3) Gain on sale of land

In the first quarter of 2009, the Company sold a piece of land and recorded a gain of approximately $4.0 million.



NET EARNINGS / (LOSS)

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Three months ended
----------------------
March 31, March 31,
2009 2008 Change
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Net earnings / (Loss) (11,774) 9,906 (21,680)
Earnings per common share
Basic (0.16) 0.14 (0.30)
Diluted (0.16) 0.14 (0.30)
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First Quarter 2009 to First Quarter 2008 comparison

The net loss for the first quarter of 2009 of $11.8 million as compared to net earnings of $9.9 million in the first quarter of 2008 was primarily attributable to a $228.8 million revenue reduction in the first quarter of 2009 as compared to the first quarter of 2008 discussed above and the deterioration of gross margin percentage discussed above for the first quarter of 2009 as compared to the first quarter of 2008.

The adjusted net loss for the first quarter of 2009 as calculated in Table A was $10.5 million or $0.15 adjusted loss per share on a basic and diluted basis as compared to adjusted net earnings for the first quarter of 2008 of $9.9 million or adjusted earnings per share of $0.14 on a basic and diluted basis. The reduction of adjusted net earnings and adjusted earnings per share in 2009 as compared to 2008 was primarily on account of the $228.8 million revenue reduction in the first quarter of 2009 as compared to the first quarter of 2008 and the deterioration of gross margin percentage discussed above for the first quarter of 2009 as compared to the first quarter of 2008.

First Quarter 2009 to Fourth Quarter 2008 comparison

The net loss for the first quarter of 2009 of $11.8 million was less than the net loss of $286.5 million in the fourth quarter of 2008 primarily due to unusual and other items recorded in the fourth quarter of 2008 that were discussed earlier in the 2008 annual filings. The adjusted net loss for the first quarter of 2009 as calculated in Table A is $10.5 million or $0.15 adjusted loss per share on a basic and diluted basis as compared to adjusted net loss for the fourth quarter of 2008 of $1.2 million or adjusted loss per share of $0.02 on a basic and diluted basis. The increase of the adjusted net loss and adjusted loss per share in the first quarter of 2009 as compared to the fourth quarter of 2008 is primarily attributable to the $151.8 million revenue reduction in the first quarter of 2009 as compared to the fourth quarter of 2008 and the deterioration of gross margin percentage discussed above in the first quarter of 2009 as compared to the fourth quarter of 2008.

CAPITAL EXPENDITURES

First Quarter 2009 to First Quarter 2008 comparison

Capital expenditures for the first quarter of 2009 totaled $4.9 million as compared to $13.0 million for the first quarter of 2008. The reduction of capital expenditures in the first quarter of 2009 is part of the Company's initiative to re-use equipment and reduce capital expenditures where possible without delaying product launches.

First Quarter 2009 to Fourth Quarter 2008 comparison

Capital expenditures in the first quarter of 2009 of $4.9 million were lower than capital expenditures in the fourth quarter of 2008 of $23.9 million primarily due to the fact that capital spending is completely dependent on the milestones reached and timing of product launches.

Fred Jaekel, Martinrea's Chief Executive Officer, stated: "The past six months have seen the most difficult period in the North American automotive industry in a half century or more, with production exceptionally weak, especially in January when several customers shut down operations. In the first quarter, industry production volumes were roughly half of what they were a year ago, and that is reflected in lower revenues. While we have responded well in reducing our costs and making adjustments in our factories, we still lost money in the quarter. At the same time, our negative cash flow from operations excluding restructuring costs was very good in the circumstances, at approximately $1 million. While the current economic crisis has been difficult for the company and for our industry, our people are responding well and I am confident we will not only weather these challenges but will emerge as a very strong competitor in our product areas, both lean and profitable."

"The health of some key customers is a critical issue for all suppliers", Mr. Jaekel continued. "Chrysler, which is one of our four largest customers, filed for Chapter 11 bankruptcy protection in the U.S. last week as it restructures. While we believe this ultimately will create a healthier customer, and even new opportunities with Fiat, we have to deal with the realities of lower production levels and plant shutdowns in the short term, which will affect us in the second quarter. Our largest customer, General Motors, is also restructuring. It has received substantial government financial assistance, and if its viability plans are not acceptable to the U.S. and Canadian governments, it too may file for bankruptcy protection. General Motors also has announced significant plant closings over the next several months, and that also will affect us in the second quarter. We have taken measures to both protect our payments, and have limited our risk significantly, and to adjust to lower volumes, but the reality is that we need more work in our presses and in our plants to be significantly profitable again. An increase in volumes, even if not at the levels of the early years of this decade, will be very good for our revenues and profitability I believe."

Nick Orlando, Martinrea's President and Chief Financial Officer, stated: "We have adjusted very quickly to the lower volumes and stresses being experienced in our industry. We have shown an ability to make significant personnel reductions on a temporary or, if needed, permanent basis, rapidly. All non-essential expenditures have been eliminated. We have reduced capital spending to just what is required, and we have plans in place to deal with the current shutdowns. Our cash position remained strong as at the end of our first quarter. While we had some one-time adjustments in our first quarter from restructuring costs and some severance payments, these were anticipated and our cash outflow was minimal, especially given the cash received from a sale of land we did not need. Our balance sheet and financial position remain strong today to both withstand the challenges we are facing and to take advantage of some opportunities for takeover business or asset acquisitions, as we have done in 2009 to date. As for the second quarter of 2009, while we do not give guidance, we do anticipate revenue to be slightly higher than revenue for the first quarter of 2009 provided current customer production schedules do not change. Operational cash flow excluding restructuring costs may again be negative for the quarter, but should not be greater than $3 million."

Rob Wildeboer, Martinrea's Executive Chairman, stated: "While the challenges we are seeing are well known and reflected in our recent financial results, we are seeing a number of positive developments. First, largely through the actions of our federal and provincial governments and the U.S. government, many supplier concerns relating to payment of receivables have been largely alleviated or reduced. In Canada, exposure to Chrysler Canada has been largely alleviated by the fact there has been no Canadian insolvency filing, and bills continue to be paid. As for Chrysler U.S., our exposure is not large, and our customer has indicated we are a critical supplier to them, which brings with it some comfort receivables will be paid. We also have taken action to reduce exposure through Canadian and U.S. receivables protection programs, both for Chrysler and for GM. All these protective efforts may not be all encompassing, but they certainly reduce our exposure. Second, this crisis is reflective of an industry restructuring where strong suppliers can assist their customers, win new business, win takeover business, make prudent and ultimately profitable acquisitions, and gain new customers. Martinrea has done all of that throughout this industry crisis, with our previously announced new business in late 2008 and our acquisition of SKD assets in 2009. We know there is more out there to win. Third, we are starting to see some more positive signs and trends in recent weeks, such as stock market gains, stabilization in the banking sector, a decline in the rate of decrease of jobs, greater home sales, and so forth, which should improve automotive production volumes over the next year. We do not believe the industry volumes we saw in the first quarter of 2009 are sustainable, as they are well below the scrappage rate. We continue to be very positive about Martinrea's future and for the future of our people."

The common shares of Martinrea trade on The Toronto Stock Exchange under the symbol "MRE".

This press release contains forward-looking statements within the meaning of applicable Canadian Securities laws including statements relating to: the Company's efficiency programs, capacity utilization, continuous improvement, and rationalization of operating facilities; automotive industry outlook and future vehicle production; plant closures, asset transfers and sales, the timing and quantum of severance and termination benefit obligations; future restructuring efforts, goodwill and intangible asset impairment; acquisition opportunities; new business awards; automotive industry consolidation; and the Company's pursuit of its business strategies. The words "expect", "anticipate", "estimate", "may", "will", "should", "intend", "believe", "plan" and similar expressions are intended to identify forward-looking statements. Forward-looking statements are based on estimates and assumptions made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors that the Company believes are appropriate in the circumstances. Many factors could cause the Company's actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, those risks and uncertainties as set out under the heading "Risks and Uncertainties" in the Company's Management Discussion and Analysis dated May 7, 2009 and those risks and uncertainties as set forth in the Company's Annual Information Form and other public filings which can be found at www.sedar.com. Actual results may differ materially from those currently anticipated. Except as required by law, the Company has no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These factors should be considered carefully, and readers should not place undue reliance on the Company's forward-looking statements.

A conference call to discuss those results will be held on Friday, May 8, 2009 at 8:00 a.m. (Toronto time) which can be accessed by dialing (416) 340-2216 or toll free (866) 898-9626. Please call 10 minutes prior to the start of the conference call.

If you have any teleconferencing questions, please call Andre La Rosa at (416) 749-0314.

There will also be a rebroadcast of the call available by dialing (416) 695-5800 or toll free number (800) 408-3053 (conference id - 8001680#). The rebroadcast will be available until Friday, May 22, 2009.



MARTINREA INTERNATIONAL INC.
Interim Consolidated Balance Sheets

As at March 31, 2009 (unaudited) with comparative
figures for December 31, 2008
(in thousands of dollars)

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March 31, December 31,
2009 2008
---------------------------------------------------------------------------

Assets

Current assets:
Cash and cash equivalents $ 48,436 $ 60,965
Accounts receivable 186,592 213,575
Other receivables 12,723 7,637
Income taxes recoverable 17,138 16,035
Inventories (note 3) 141,259 132,084
Prepaid expenses and deposits 6,889 5,131
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413,037 435,427

Future income tax assets 62,870 55,651
Property, plant and equipment (note 4) 437,256 428,979
Intangible assets (note 5) 22,767 20,502
Other long term assets (note 6) 113,671 116,239
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$ 1,049,601 $ 1,056,798
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Liabilities and Shareholders' Equity

Current liabilities:
Accounts payable and accrued liabilities $ 223,303 $ 228,553
Current portion of long-term debt (note 8) 22,474 20,428
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245,777 248,981

Long-term debt (note 8) 101,459 101,364
Pension and other post-retirement benefits 163,339 165,367
Future income tax liabilities 23,535 22,789
Non-controlling interest 1,086 1,218

Shareholders' equity:
Share capital (note 9) 629,052 629,052
Notes receivable for share capital (note 9) (2,700) (2,700)
Contributed surplus (note 10) 35,047 34,478
Accumulated other comprehensive loss (4,681) (13,212)
Retained earnings (142,313) (130,539)
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514,405 517,079

Guarantees (note 14)
Subsequent events (note 16)

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$ 1,049,601 $ 1,056,798
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See accompanying notes to interim consolidated financial statements.

On behalf of the Board:

Fred Jaekel, Director
---------------------------------------
Robert Wildeboer, Director
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MARTINREA INTERNATIONAL INC.
Interim Consolidated Statements of Operations

For the three months ended March 31, 2009 and 2008 (unaudited)
(in thousands of dollars, except per share amounts)

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Three months ended
March 31, March 31,
2009 2008
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Sales $ 205,072 $ 433,827

Cost of sales (excluding amortization of
property, plant and equipment) 189,557 384,571
Amortization of property, plant and equipment
(production) (note 4) 11,810 9,116
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Total cost of sales 201,367 393,687
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Gross profit 3,705 40,140

Expenses:
Selling, general and administrative 16,942 23,175
Foreign exchange loss (gain) 1,461 (844)
Amortization of property, plant and equipment
(non-production) (note 4) 647 765
Amortization of intangible assets (note 5) 1,111 1,035
Restructuring costs (note 7) 4,397 -
Interest on long term debt 1,280 2,094
Other interest expense (income), net 121 (963)
Gain on disposal of property, plant
and equipment (3,963) (3)
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21,996 25,259
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Earnings before income taxes and
non-controlling interest (18,291) 14,881

Income taxes (recovery):
Current (1,588) 4,106
Future (4,797) 854
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(6,385) 4,960

Earnings (loss) before non-controlling
interest (11,906) 9,921

Non-controlling interest (132) 15
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Net earnings (loss) $ (11,774) $ 9,906
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Earnings (loss) per common share (note 11)
Basic $ (0.16) $ 0.14
Diluted $ (0.16) $ 0.14
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See accompanying notes to interim consolidated financial statements.



MARTINREA INTERNATIONAL INC.
Interim Consolidated Statements of Comprehensive Income (Loss)

For the three months ended March 31, 2009 and 2008 (unaudited)
(in thousands of dollars)

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Three months ended
March 31, March 31,
2009 2008
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Net earnings (loss) $ (11,774) $ 9,906

Other comprehensive income, net of tax:

Unrealized gain on translation of financial
statements of self-sustaining operations 8,531 9,834

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Other comprehensive income 8,531 9,834

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Comprehensive income (loss) $ (3,243) $ 19,740
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See accompanying notes to interim consolidated financial statements.



MARTINREA INTERNATIONAL INC.
Interim Consolidated Statements of Changes in Shareholders' Equity

As at March 31, 2009 (unaudited) with comparative figures
for December 31, 2008
(in thousands of dollars)

---------------------------------------------------------------------------
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Accum-
Notes ulated
receiv- other
able compre-
for Contri- hensive
Share share buted income Retained
capital capital Surplus (loss) Earnings Total
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Balance, January
1, 2008 $629,052 $(2,700) $29,337 $ (65,277) $ 131,054 $ 721,466
Change in
accounting
policy
(note 1 and 3) - - - - (505) (505)
----------------------------------------------------------
As restated,
January 1, 2008 629,052 (2,700) 29,337 (65,277) 130,549 720,961

Net loss for
the year - - - - (261,088) (261,088)

Compensation
expense related
to options - - 5,141 - - 5,141

Other comprehensive
income - - - 52,065 - 52,065
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Balance, December
31, 2008 $629,052 $(2,700) $34,478 $ (13,212) $(130,539) $ 517,079

Net loss for
the period - - - - (11,774) (11,774)

Compensation
expense related
to options - - 569 - - 569

Other comprehensive
income - - - 8,531 - 8,531

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Balance, March
31, 2009 $629,052 $(2,700) $35,047 $ (4,681) $(142,313) $ 514,405
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See accompanying notes to interim consolidated financial statements.



MARTINREA INTERNATIONAL INC.
Interim Consolidated Statements of Cash Flows

For the three months ended March 31, 2009 and 2008 (unaudited)
(in thousands of dollars)

Three months ended
March 31, March 31,
2009 2008
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Cash provided by (used in):

Operating activities:
Net earnings (loss) $ (11,774) $ 9,906
Items not involving cash:
Amortization of property, plant
and equipment (note 4) 12,457 9,881
Amortization of intangible assets (note 5) 1,111 1,035
Amortization of deferred financing costs - 107
Future income taxes (4,797) 854
Non-controlling interest (132) 15
Gain on disposal of property, plant
and equipment (3,963) (3)
Stock-based compensation 569 872
Pension and other post employment benefits 2,791 2,130
Contribution made to pension and other
post employment benefits (3,216) (3,857)
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(6,954) 20,940

Changes in non-cash working capital items:
Accounts receivable 31,409 (9,151)
Other receivables (4,948) 6,034
Inventories (2,429) (127)
Prepaid expenses and deposits (1,758) (152)
Accounts payable and accrued liabilities (21,960) (10,697)
Income taxes recoverable (2,779) (23,073)
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(9,419) (16,226)
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Financing activities:
Increase in long-term debt 6,703 1,263
Repayment of long-term debt (5,105) (3,933)
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1,598 (2,670)
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Investing activities:
Acquisition of SKD (note 2) (4,267) -
Purchase of property, plant and equipment (4,897) (12,969)
Proceeds on disposal of property, plant
and equipment 5,203 22
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(3,961) (12,947)
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Effect of exchange rate changes on cash
and cash equivalents (747) 1,015
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Decrease in cash and cash equivalents (12,529) (30,828)

Cash and cash equivalents, beginning of period 60,965 48,008

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Cash and cash equivalents, end of period $ 48,436 $ 17,180
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Supplemental cash flow information:
Cash paid for interest, net $ 771 $ 1,559
Cash paid for income taxes, net $ 266 $ 24,776

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See accompanying notes to interim consolidated financial statements.

Contact Information

  • Martinrea International Inc.
    Nick Orlando
    President and Chief Financial Officer
    (416) 749-0314
    (905) 264-2937 (FAX)