WATERDOWN, ONTARIO--(Marketwired - Aug. 14, 2015) - Opta Minerals Inc. (TSX:OPM), today announced results for the three and six months ended June 30, 2015. All figures are reported in U.S. dollars and are in accordance with International Financial Reporting Standards (IFRS), except where otherwise noted.
| 3 months | 3 months | 6 months | 6 months | |||||||||||
| ended | ended | ended | ended | |||||||||||
| June 30, | June 30, | Increase | June 30, | June 30, | Increase | |||||||||
| 2015 | 2014 | (Decrease) | % | 2015 | 2014 | (Decrease) | % | |||||||
| Revenue | $ | 29,674 | $ | 35,299 | $ | (5,625) | -15.9% | $ | 59,131 | $ | 69,788 | $ | (10,657) | -15.3% |
| Gross Profit | 3,718 | 6,511 | (2,793) | -42.9% | 7,461 | 11,408 | (3,947) | -34.6% | ||||||
| 12.5% | 18.4% | -5.9% | 12.6% | 16.3% | -3.7% | |||||||||
| EBITDA1 | 448 | 3,151 | (2,703) | -85.8% | 1,401 | 5,421 | (4,020) | -74.2% | ||||||
| EBIT2 | (1,136) | 1,552 | (2,688) | -173.2% | (1,459) | 2,331 | (3,790) | -162.6% | ||||||
| Income (Loss) | (4,271) | 727 | (4,998) | -687.5% | (5,028) | 473 | (5,501) | -1163.0% | ||||||
| EPS | $ | (0.24) | $ | 0.04 | $ | (0.28) | $ | (0.28) | $ | 0.03 | $ | (0.31) | ||
- EBITDA is a non-IFRS measure: refer to Footnotes
- EBIT is a non-IFRS measure; refer to Footnotes
Bernhard Rumbold, Interim President and CEO of Opta Minerals, noted "The Company is in the middle of restructuring its business which includes closing unprofitable locations, reducing costs, simplifying operations and improving the balance sheet by reducing inventory thereby improving liquidity. We have made significant progress in the second quarter and expect to complete most of our restructuring activities by the end of the year. The restructuring impact is isolated to the Industrial Minerals Group and Corporate office, with limited impact on the Steel and Magnesium Group. The financial results reflect the changes we are making and include a number of one time and non-cash costs as a result of the restructuring. Excluding these restructuring costs EBIT would be $1,091 for the quarter and EBITDA would be $2,180. Further details are provided below. We are very pleased with the efforts to improve the balance sheet and free up resources.
We have seen markets and sales improve in the latter half of the second quarter within the Steel and Magnesium Group and expect this momentum to continue for the balance of the year. We will continue to invest in people and capital within Steel and Magnesium and within segments of Industrial Minerals, such as garnet, where we believe we have a competitive advantage and can earn superior returns.
We continue to pursue strategic alternatives for the Company."
Operational and Financial Highlights:
- Second quarter revenue in the Steel and Magnesium segment decreased 10.9% from the comparable quarter in 2014. On a year to date basis revenues have decreased 9.0% over the comparable period in 2014. Excluding the effects of exchange rate movements in the Canadian dollar and Euro against the U.S. dollar, revenues have fallen 5.3% and 3.0% versus the previous quarter and year to date, respectively. The Steel and Magnesium segment has primarily been impacted by a slow down in the steel industry.
- The Industrial Minerals segment revenue decreased approximately 22% on a quarter and year to date basis and 18% excluding the impact of exchange as compared to the prior year. The decline is partially due to restructuring as we eliminate locations and product lines that do not provide an adequate return. The Company's focus is to complete these restructuring efforts by the end of the year, but also invest in more sales resources in areas where we believe there is growth.
- Gross profit includes charges of $768 in the quarter for additional inventory reserves and expected remediation costs related to the closure of facilities and the liquidation of certain inventories. Excluding these costs, gross margins are 15.1% for the quarter and 13.9% for the year to date, respectively. Margins have also been impacted by lower sales prices to liquidate inventory and lower volumes affecting plant utilization. We believe margins on core products with the Steel Group are relatively the same as the prior year.
- Selling, general and administrative expenses (SGA) were $4,860 or 16.4% as a percent of revenues, compared to $4,249 or 12.0% of revenues in the prior year quarter. SGA includes approximately $965 in restructuring costs including severance accrual for the former CEO. Excluding these restructuring costs SGA were 12.1% for the year as a percent of revenues, compared to 12.3% in the prior year. SGA is impacted by the strengthening US dollar with corporate costs primarily in Canadian dollars. The Company is targeting 10% SGA as a percent of revenues.
- The Company had a write-down of property, plant and equipment in the amount of $495 related to the Company's impairment analysis for one facility in the Industrial Minerals segment.
- Results include non-cash foreign exchange gains of $317 in the current quarter compared to foreign exchange losses of $616 in the prior year comparative quarter. Foreign exchange losses were $465 on a year to date basis as compared to $365 in the previous year. These were driven by fluctuations in the US dollar against both the Canadian dollar and Euro.
- Working capital, excluding the reclassification of long-term borrowings of $26.3 million, at June 30, 2015 amounted to $18.2 million and total assets were $104.2 million, as compared to $21.8 million and $117.7 million, respectively, at December 31, 2014. Working capital is considerably lower than December 31, 2014 driven by the Company's efforts to significantly lower inventories. The inventory reduction generates improved cash flow with more available liquid assets in working capital.
- Long-term borrowings of $26.3 million have been reclassified to current borrowings as a result of the default of certain financial covenants stipulated under the Company's credit agreement. Subsequent to June 30, 2015, the Company obtained a waiver in respect of the covenant default from the syndicate of banks. As consideration for the waiver the Company is to comply with certain additional financial covenants. The syndicate of banks extended the maturity date of the revolving credit facility from the August 14, 2015 annual renewal date to October 2, 2015.
- The Company will require the continued support from its current financial lenders and, effective October 3, 2015, Opta Minerals will require a further extension of its revolving term credit facility and an additional waiver of financial covenants, if breached, or an alternative source of financing. Failure to meet financial covenants or repay the revolving credit facility on maturity would constitute an event of default under the credit agreement, unless the lenders agree to a waiver or further amendment. The Company believes that it will comply with the additional financial covenants and that an extension is likely, but there can be no assurance that it will be provided or that alternative sources of financing on terms favourable to the Company could be obtained. The limited extension of the revolving term credit facility to October 2, 2015 has required the inclusion of additional disclosure in the Company's interim condensed consolidated financial statements as at and for the six-month period ended June 30, 2015.
- The debt to equity ratio at June 30, 2015 was 1.07 to 1.00, and at December 31, 2014 was 1.00 to 1.00.
For further details, please refer to the Company's interim consolidated financial statements and related Management's Discussion and Analysis.
Opta Minerals is a vertically integrated provider of custom process solutions and industrial mineral products used primarily in the steel, foundry, loose abrasive cleaning, water-jet cutting and municipal water filtration industries. The Company has production and distribution facilities in Ontario, Quebec, Saskatchewan, Louisiana, South Carolina, Virginia, Maryland, Indiana, Michigan, New York, Texas, Florida, Ohio, Idaho, France, Slovakia and Germany.
FOOTNOTES:
Earnings before income taxes and interest ("EBIT"); and earnings before interest, income taxes, depreciation and amortization ("EBITDA") as defined below, are both non-IFRS earnings measures that do not have standardized measures prescribed by IFRS, and therefore may not be comparable to similar measures presented by other publicly traded companies.
| For the three | For the six | ||||||
| Months Ended | Months Ended | ||||||
| June 30 | June 30 | ||||||
| 2015 | 2014 | 2015 | 2014 | ||||
| $ | $ | $ | $ | ||||
| Income (Loss) for the Period | (4,271 | ) | 727 | (5,028 | ) | 473 | |
| Finance Expense | 1,829 | 847 | 2,692 | 1,748 | |||
| Income Tax Expense (Recovery) | 1,306 | (22 | ) | 877 | 110 | ||
| Depreciation and Amortization | 1,273 | 1,505 | 2,551 | 2,984 | |||
| Property, Plant and Equipment Write-down | 495 | - | 495 | - | |||
| Fair Value Adjustments to Contingent Consideration | (184 | ) | 94 | (186 | ) | 106 | |
| EBITDA1 | 448 | 3,151 | 1,401 | 5,421 | |||
| Subtract: | |||||||
| Depreciation and Amortization | 1,273 | 1,505 | 2,551 | 2,984 | |||
| Property, Plant and Equipment Write-down | 495 | - | 495 | - | |||
| Fair Value Adjustments to Contingent Consideration | (184 | ) | 94 | (186 | ) | 106 | |
| EBIT2 | (1,136 | ) | 1,552 | (1,459 | ) | 2,331 | |
Notes
- The term "EBITDA" refers to earnings before deducting finance expense, income taxes, depreciation and amortization. The Company believes that EBITDA is useful supplemental information as it provides an indication of the results generated by the Company's main business activities prior to taking into consideration how those activities are financed and taxed and also prior to taking into consideration non-cash asset depreciation and amortization. EBITDA is not a recognized measure under International Finance Reporting Standards (IFRS), and accordingly, investors are cautioned that EBITDA should not be construed as an alternative to net earnings or loss determined in accordance with IFRS as an indicator of the financial performance of the Company or as a measure of the Company's liquidity and cash flows. The Company's method of calculating EBITDA may differ from other issuers and accordingly, EBITDA may not be comparable to similar measures presented by other issuers.
- The term "EBIT" refers to earnings before income taxes and finance expense. The Company believes that EBIT is useful supplemental information as it provides an indication of the results generated by the Company's main business activities prior to taking into consideration how those activities are financed or taxed. EBIT is a non-IFRS earnings measure that does not have standardized measures prescribed by IFRS, and therefore may not be comparable to similar measures presented by other publicly traded companies.
Certain statements in this release constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements in this press release include, without limitation, statements relating to: the Company's restructuring activities and the anticipated benefits to be derived therefrom, the expected timing for the completion of the Company's restructuring activities; anticipated improvements within the Steel and Magnesium Group; and proposed investments in people and capital within the Steel and Magnesium Group and certain segments of the Infrastructure Group. Wherever possible, words such as "may", 'would", "could", "should", "will", "anticipate", "believe", "plan", "expect", "intend", "estimate", "aim", "endeavour", "seek", "predict", "potential" and similar expressions have been used to identify these forward-looking statements. These statements reflect management's current beliefs with respect to future events and are based on information currently available to management of the Company. Forward-looking statements involve significant risks, uncertainties and assumptions. Many factors could cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, without limitation: the impact of general economic conditions; the impact of specific industry conditions; the inability of the Company to successfully integrate recently acquired businesses or to achieve the anticipated benefits from such acquisitions; the risk of unexpected costs or liabilities relating to acquisitions; currency fluctuations and exchange rate risks; risks associated with foreign operations; governmental and environmental regulation; competition from other industry participants; cancellations of or the failure to renew purchase orders; production and delivery issues; quality, pricing and availability of raw materials; mining risks; and the other risks identified in the Company's Annual Information Form and other public filings (copies of which may be obtained at www.sedar.com).
Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results, performance or achievements may vary materially from those expressed or implied by this press release. These factors should be considered carefully and reader should not place undue reliance on the forward-looking statements. Although any forward-looking statements contained in this press release are based upon what management currently believes to be reasonable assumptions, the Company cannot assure readers that actual results, performance or achievements will be consistent with these forward-looking statements, and management's assumptions may prove to be incorrect. These forward-looking statements are made as of the date of this press release and, other than as required by law, the Company does not intend, and does not assume any obligation, to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.
| Opta Minerals Inc. | ||||||||
| Interim Condensed Consolidated Balance Sheets | ||||||||
| As At June 30, 2015 and December 31, 2014 | ||||||||
| (Unaudited) | ||||||||
| Expressed in Thousands of US Dollars (except per share amounts and number of shares) | ||||||||
| June 30, 2015 |
December 31, 2014 |
|||||||
| Assets | ||||||||
| Current | ||||||||
| Cash and cash equivalents | $ | 2,232 | $ | 2,170 | ||||
| Trade receivables, other receivables and prepayments | 19,846 | 20,236 | ||||||
| Inventories | 27,924 | 34,486 | ||||||
| Income taxes receivable | 890 | 996 | ||||||
| 50,892 | 57,888 | |||||||
| Property, Plant and Equipment | 19,568 | 21,926 | ||||||
| Intangible Assets | 24,639 | 26,827 | ||||||
| Goodwill | 9,060 | 9,447 | ||||||
| Deferred Income Tax Assets | - | 1,645 | ||||||
| $ | 104,159 | $ | 117,733 | |||||
| Liabilities | ||||||||
| Current | ||||||||
| Trade and other payables | $ | 12,980 | $ | 17,216 | ||||
| Borrowings | 44,811 | 17,492 | ||||||
| Provisions | 889 | 772 | ||||||
| Other liabilities | 64 | 492 | ||||||
| Income taxes payable | 294 | 136 | ||||||
| 59,038 | 36,108 | |||||||
| Borrowings | 193 | 30,103 | ||||||
| Derivative Financial Instruments | 457 | 285 | ||||||
| Provisions | 527 | 447 | ||||||
| Other Liabilities | 67 | 242 | ||||||
| Deferred Income Tax Liabilities | 1,850 | 3,040 | ||||||
| 62,132 | 70,225 | |||||||
| Equity Attributable to the Shareholders of the Company | ||||||||
| Capital Stock | ||||||||
| Authorized without limit as to number - | ||||||||
| Preference shares (without par value) | ||||||||
| Common shares | ||||||||
| Issued - | ||||||||
| 18,129,566 common shares (December 31, 2014 - 18,125,164) | 17,911 | 17,905 | ||||||
| Contributed Surplus | 4,817 | 4,696 | ||||||
| Accumulated Other Comprehensive Loss | (2,071 | ) | (1,491 | ) | ||||
| Retained Earnings | 21,370 | 26,398 | ||||||
| 42,027 | 47,508 | |||||||
| $ | 104,159 | $ | 117,733 | |||||
| Opta Minerals Inc. | |||||||
| Interim Condensed Consolidated Statements of (Loss) Income | |||||||
| For the Three Months Ended June 30, 2015 and 2014 | |||||||
| (Unaudited) | |||||||
| Expressed in Thousands of US Dollars (except per share amounts) | |||||||
| June 30, 2015 |
June 30, 2014 |
||||||
| Revenue | $ | 29,674 | $ | 35,299 | |||
| Cost of Goods Sold | 25,956 | 28,788 | |||||
| Gross Profit | 3,718 | 6,511 | |||||
| Expenses | |||||||
| Selling, general and administrative | 4,860 | 4,249 | |||||
| Property, plant and equipment write-down | 495 | - | |||||
| Fair value adjustments to contingent consideration | (184 | ) | 94 | ||||
| Foreign exchange (gain) loss | (317 | ) | 616 | ||||
| 4,854 | 4,959 | ||||||
| Income(Loss)Before Finance Expense and Income Taxes | (1,136 | ) | 1,552 | ||||
| Finance expense | 1,829 | 847 | |||||
| Income (Loss) Before Income Taxes | (2,965 | ) | 705 | ||||
| Income tax expense (recovery) | 1,306 | (22 | ) | ||||
| Income (Loss) for the Period Attributable to the Shareholders of the Company | $ | (4,271 | ) | $ | 727 | ||
| Earnings (Loss) per share for the period - basic and diluted | $ | (0.24 | ) | $ | 0.04 | ||
| Opta Minerals Inc. | ||||||
| Interim Condensed Consolidated Statements of (Loss) Income | ||||||
| For the Six Months Ended June 30, 2015 and 2014 | ||||||
| (Unaudited) | ||||||
| Expressed in Thousands of US Dollars (except per share amounts) | ||||||
| June 30, 2015 |
June 30, 2014 |
|||||
| Revenue | $ | 59,131 | $ | 69,788 | ||
| Cost of Goods Sold | 51,670 | 58,380 | ||||
| Gross Profit | 7,461 | 11,408 | ||||
| Expenses | ||||||
| Selling, general and administrative | 8,146 | 8,606 | ||||
| Property, plant and equipment write-down | 495 | - | ||||
| Fair value adjustments to contingent consideration | (186 | ) | 106 | |||
| Foreign exchange loss | 465 | 365 | ||||
| 8,920 | 9,077 | |||||
| Income (Loss) Before Finance Expense and Income Taxes | (1,459 | ) | 2,331 | |||
| Finance expense | 2,692 | 1,748 | ||||
| Income (Loss) Before Income Taxes | (4,151 | ) | 583 | |||
| Income tax expense | 877 | 110 | ||||
| Income (Loss) for the Period Attributable to the Shareholders of the Company | $ | (5,028 | ) | $ | 473 | |
| Earnings (Loss) per share for the period - basic and diluted | $ | (0.28 | ) | $ | 0.03 | |
| Opta Minerals Inc. | ||||||
| Interim Condensed Consolidated Statements of Comprehensive (Loss) Income | ||||||
| For the Three Months Ended June 30, 2015 and 2014 | ||||||
| (Unaudited) | ||||||
| Expressed in Thousands of US Dollars | ||||||
| June 30, 2015 |
June 30, 2014 |
|||||
| Income (Loss) for the Period Attributable to the Shareholders of the Company | $ | (4,271 | ) | $ | 727 | |
| Other Comprehensive Income, net of income taxes | ||||||
| Items that may be reclassified subsequently to profit or loss | ||||||
| Unrealized gain on translation of foreign operations | 130 | 53 | ||||
| Unrealized gain on derivative financial instruments designated as cash flow hedges | 67 | 24 | ||||
| Ineffective portion of derivative financial instruments | 291 | - | ||||
| Other comprehensive income, net of income taxes | 488 | 77 | ||||
| Comprehensive (Loss) Income Attributable to the Shareholders of the Company | $ | (3,783 | ) | $ | 804 | |
| Opta Minerals Inc. | |||||||
| Interim Condensed Consolidated Statements of Comprehensive (Loss) Income | |||||||
| For the Six Months Ended June 30, 2014 and 2013 | |||||||
| (Unaudited) | |||||||
| Expressed in Thousands of US Dollars | |||||||
| June 30, 2015 |
June 30, 2014 |
||||||
| Income (Loss) for the Period Attributable to the Shareholders of the Company | $ | (5,028 | ) | $ | 473 | ||
| Other Comprehensive (Loss) Income, net of income taxes | |||||||
| Items that may be reclassified subsequently to profit or loss | |||||||
| Unrealized (loss) gain on translation of foreign operations | (742 | ) | 147 | ||||
| Unrealized loss on derivative financial instruments designated as cash flow hedges | (129 | ) | (34 | ) | |||
| Ineffective portion of derivative financial instruments | 291 | - | |||||
| Other comprehensive (loss) income, net of income taxes | (580 | ) | 113 | ||||
| Comprehensive (Loss) Income Attributable to the Shareholders of the Company | $ | (5,608 | ) | $ | 586 | ||
| Opta Minerals Inc. |
| Interim Condensed Consolidated Statements of Changes in Equity |
| For the Six Months Ended June 30, 2015 and 2014 |
| (Unaudited) |
| Expressed in Thousands of US Dollars (except per share amounts and number of shares) |
| AOCI* - | ||||||||||||||||||
| Number of | Contributed | Foreign | ||||||||||||||||
| Shares - | Surplus - | AOCI* - | Currency | |||||||||||||||
| Capital | Capital | Share-based | Cash Flow | Translation | Retained | Total | ||||||||||||
| Stock | Stock | Payments | Hedge | Reserve | Earnings | Equity | ||||||||||||
| At January 1, 2015 | 18,125,164 | $ | 17,905 | $ | 4,696 | $ | (210 | ) | $ | (1,281 | ) | $ | 26,398 | $ | 47,508 | |||
| Comprehensive Loss | ||||||||||||||||||
| Loss for the period | - | - | - | - | - | (5,028 | ) | (5,028 | ) | |||||||||
| Unrealized loss on translation of foreign operations | - | - | - | - | (742 | ) | - | (742 | ) | |||||||||
| Unrealized loss on derivative financial instruments designated as cash flow hedges | - | - | - | (129 | ) | - | - | (129 | ) | |||||||||
| Ineffective portion of derivative financial instruments | - | - | - | 291 | - | - | 291 | |||||||||||
| Total Comprehensive (Loss) Income | - | - | - | 162 | (742 | ) | (5,028 | ) | (5,608 | ) | ||||||||
| Transactions with Shareholders | ||||||||||||||||||
| Employee share purchase plan | 4,402 | 6 | - | - | - | - | 6 | |||||||||||
| Share-based payment expense | - | - | 121 | - | - | - | 121 | |||||||||||
| Total Transactions with Shareholders | 4,402 | 6 | 121 | - | - | - | 127 | |||||||||||
| At June 30, 2015 | 18,129,566 | $ | 17,911 | $ | 4,817 | $ | (48 | ) | $ | (2,023 | ) | $ | 21,370 | $ | 42,027 | |||
| At January 1, 2014 | 18,111,247 | $ | 17,882 | $ | 4,358 | $ | (230 | ) | $ | (632 | ) | $ | 28,280 | $ | 49,658 | |||
| Comprehensive Income (Loss) | ||||||||||||||||||
| Income for the period | - | - | - | - | - | 473 | 473 | |||||||||||
| Unrealized gain on translation of foreign operations | - | - | - | - | 147 | - | 147 | |||||||||||
| Unrealized loss on derivative financial instruments designated as cash flow hedges | - | - | - | (34 | ) | - | - | (34 | ) | |||||||||
| Total Comprehensive Income (Loss) | - | - | - | (34 | ) | 147 | 473 | 586 | ||||||||||
| Transactions with Shareholders | ||||||||||||||||||
| Employee share purchase plan | 7,365 | 12 | - | - | - | - | 12 | |||||||||||
| Share-based payment expense | - | - | 206 | - | - | - | 206 | |||||||||||
| Total Transactions with Shareholders | 7,365 | 12 | 206 | - | - | - | 218 | |||||||||||
| At June 30, 2014 | 18,118,612 | $ | 17,894 | $ | 4,564 | $ | (264 | ) | $ | (485 | ) | $ | 28,753 | $ | 50,462 | |||
*AOCI - Accumulated Other Comprehensive Income
| Opta Minerals Inc. | ||||||||
| Interim Condensed Consolidated Statements of Cash Flows | ||||||||
| For the Six Months Ended June 30, 2015 and 2014 | ||||||||
| (Unaudited) | ||||||||
| Expressed in Thousands of US Dollars (except per share amounts and number of shares) | ||||||||
| June 30, 2015 |
June 30, 2014 |
|||||||
| Cash Provided by (Used in) - | ||||||||
| Operating Activities | ||||||||
| Income (loss) for the period | $ | (5,028 | ) | $ | 473 | |||
| Items not affecting cash: | ||||||||
| Depreciation of property, plant and equipment | 1,544 | 1,867 | ||||||
| Amortization of intangible assets | 1,007 | 1,117 | ||||||
| Property, plant and equipment write-down | 495 | - | ||||||
| Share-based payment expense | 121 | 206 | ||||||
| Loss (gain) on disposal of property, plant and equipment | (20 | ) | 4 | |||||
| Fair value adjustments to contingent consideration | (186 | ) | 106 | |||||
| Non-cash interest charges | 806 | - | ||||||
| Deferred income taxes | 594 | (427 | ) | |||||
| (667 | ) | 3,346 | ||||||
| Changes in non-cash working capital | ||||||||
| Trade receivables, other receivables and prepayments | (271 | ) | (5,799 | ) | ||||
| Inventories | 5,762 | 6,941 | ||||||
| Trade and other payables | (3,614 | ) | (1,849 | ) | ||||
| Provisions | 218 | 108 | ||||||
| Income taxes receivable (payable) | 269 | 115 | ||||||
| 1,697 | 2,862 | |||||||
| Financing Activities | ||||||||
| Proceeds from issuance of common shares - net of issuance costs | 6 | 12 | ||||||
| Proceeds from borrowings - net of deferred finance charges | 1,547 | - | ||||||
| Repayment of borrowings | (2,169 | ) | (2,534 | ) | ||||
| Repayment of finance lease liabilities | (202 | ) | (159 | ) | ||||
| (818 | ) | (2,681 | ) | |||||
| Investing Activities | ||||||||
| Additions to property, plant and equipment | (464 | ) | (961 | ) | ||||
| Proceeds on disposal of property, plant and equipment | 109 | 12 | ||||||
| Additions to intangible assets | - | (37 | ) | |||||
| Additional contingent consideration paid on acquisitions | (393 | ) | (260 | ) | ||||
| (748 | ) | (1,246 | ) | |||||
| Effect of Foreign Exchange Loss on Cash and Cash Equivalents | (69 | ) | (11 | ) | ||||
| Net Increase (Decrease) in Cash and Cash Equivalents | 62 | (1,076 | ) | |||||
| Cash and Cash Equivalents | ||||||||
| Beginning of Period | 2,170 | 4,084 | ||||||
| End of Period | $ | 2,232 | $ | 3,008 | ||||
| Opta Minerals Inc. | ||||||||||||
| Interim Segmented Information | ||||||||||||
| For the Three Months Ended June 30, 2015 and 2014 | ||||||||||||
| (Unaudited) | ||||||||||||
| Expressed in Thousands of US Dollars | ||||||||||||
| Three Months Ended June 30, 2015 | ||||||||||||
| Steel and | Industrial | |||||||||||
| Magnesium | Minerals | Corporate | Total | |||||||||
| External revenue by market | ||||||||||||
| Canada | $ | 2,802 | $ | 2,671 | $ | - | $ | 5,473 | ||||
| US | 12,299 | 5,467 | - | 17,766 | ||||||||
| Europe | 2,174 | 2,168 | - | 4,342 | ||||||||
| Other | 117 | 1,976 | - | 2,093 | ||||||||
| Total revenue from external customers | 17,392 | 12,282 | - | 29,674 | ||||||||
| Segment income (loss) before corporate expenses, property, plant and equipment write-down, fair value adjustments to contingent consideration, finance expense and income taxes | 1,961 | (57 | ) | - | 1,904 | |||||||
| Property, plant and equipment write-down | - | (495 | ) | - | (495 | ) | ||||||
| Fair value adjustments to contingent consideration | 184 | - | - | 184 | ||||||||
| Corporate expenses | - | - | (2,729 | ) | (2,729 | ) | ||||||
| Segment income (loss) before finance expense and income taxes | 2,145 | (552 | ) | (2,729 | ) | (1,136 | ) | |||||
| Finance expense | - | - | - | (1,829 | ) | |||||||
| Income tax expense | - | - | - | (1,306 | ) | |||||||
| Loss for the period | - | - | - | (4,271 | ) | |||||||
| Depreciation of property, plant and equipment | 468 | 272 | 31 | 771 | ||||||||
| Amortization of intangible assets | 483 | - | 19 | 502 | ||||||||
| Expenditures on property, plant and equipment | $ | 128 | $ | 206 | $ | - | $ | 334 | ||||
| Opta Minerals Inc. | ||||||||||||
| Interim Segmented Information | ||||||||||||
| For the Six Months Ended June 30, 2015 and 2014 | ||||||||||||
| (Unaudited) | ||||||||||||
| Expressed in Thousands of US Dollars | ||||||||||||
| Six Months Ended June 30, 2015 | ||||||||||||
| Steel and | Industrial | |||||||||||
| Magnesium | Minerals | Corporate | Total | |||||||||
| External revenue by market | ||||||||||||
| Canada | $ | 6,078 | $ | 4,865 | $ | - | $ | 10,943 | ||||
| US | 24,471 | 10,259 | - | 34,730 | ||||||||
| Europe | 4,728 | 4,401 | - | 9,129 | ||||||||
| Other | 169 | 4,160 | - | 4,329 | ||||||||
| Total revenue from external customers | 35,446 | 23,685 | - | 59,131 | ||||||||
| Segment income (loss) before corporate expenses, property, plant and equipment write-down, fair value adjustments to contingent consideration, finance expense and income taxes | 3,669 | (1,856 | ) | - | 1,813 | |||||||
| Property, plant and equipment write-down | - | (495 | ) | - | (495 | ) | ||||||
| Fair value adjustments to contingent consideration | 186 | - | - | 186 | ||||||||
| Corporate expenses | - | - | (2,963 | ) | (2,963 | ) | ||||||
| Segment income (loss) before finance expense and income taxes | 3,855 | (2,351 | ) | (2,963 | ) | (1,459 | ) | |||||
| Finance expense | - | - | - | (2,692 | ) | |||||||
| Income tax expense | - | - | - | (877 | ) | |||||||
| Loss for the period | - | - | - | (5,028 | ) | |||||||
| Total assets as at June 30, 2015 | 60,318 | 41,989 | 1,852 | 104,159 | ||||||||
| Depreciation of property, plant and equipment | 939 | 541 | 64 | 1,544 | ||||||||
| Amortization of intangible assets | 967 | - | 40 | 1,007 | ||||||||
| Goodwill and intangible assets as at June 30, 2015 | 33,635 | - | 64 | 33,699 | ||||||||
| Expenditures on property, plant and equipment | $ | 158 | $ | 293 | $ | 13 | $ | 464 | ||||
| Opta Minerals Inc. | ||||||||||||
| Interim Segmented Information | ||||||||||||
| For the Three Months Ended June 30, 2015 and 2014 | ||||||||||||
| (Unaudited) | ||||||||||||
| Expressed in Thousands of US Dollars | ||||||||||||
| Three Months Ended June 30, 2014 | ||||||||||||
| Steel and | Industrial | |||||||||||
| Magnesium | Minerals | Corporate | Total | |||||||||
| External revenue by market | ||||||||||||
| Canada | $ | 3,384 | $ | 3,176 | $ | - | $ | 6,560 | ||||
| US | 12,582 | 7,227 | - | 19,809 | ||||||||
| Europe | 3,552 | 3,012 | - | 6,564 | ||||||||
| Other | 2 | 2,364 | - | 2,366 | ||||||||
| Total revenue from external customers | 19,520 | 15,779 | - | 35,299 | ||||||||
| Segment income (loss) before corporate expenses, finance expense and income taxes | 2,984 | 1,229 | - | 4,213 | ||||||||
| Fair value adjustments to contingent consideration | (94 | ) | - | - | (94 | ) | ||||||
| Corporate expenses | - | - | (2,567 | ) | (2,567 | ) | ||||||
| Segment income (loss) before finance expense and income taxes | 2,890 | 1,229 | (2,567 | ) | 1,552 | |||||||
| Finance expense | - | - | - | (847 | ) | |||||||
| Income tax recovery | - | - | - | 22 | ||||||||
| Income for the period | - | - | - | 727 | ||||||||
| Depreciation of property, plant and equipment | 459 | 447 | 40 | 946 | ||||||||
| Amortization of intangible assets | 540 | 1 | 18 | 559 | ||||||||
| Expenditures on property, plant and equipment | $ | 663 | $ | 61 | $ | 5 | $ | 729 | ||||
| Opta Minerals Inc. | ||||||||||||
| Interim Segmented Information | ||||||||||||
| For the Six Months Ended June 30, 2015 and 2014 | ||||||||||||
| (Unaudited) | ||||||||||||
| Expressed in Thousands of US Dollars | ||||||||||||
| Six Months Ended June 30, 2014 | ||||||||||||
| Steel and | Industrial | |||||||||||
| Magnesium | Minerals | Corporate | Total | |||||||||
| External revenue by market | ||||||||||||
| Canada | $ | 7,089 | $ | 5,369 | $ | - | $ | 12,458 | ||||
| US | 24,909 | 14,832 | - | 39,741 | ||||||||
| Europe | 6,943 | 6,323 | - | 13,266 | ||||||||
| Other | 2 | 4,321 | - | 4,323 | ||||||||
| Total revenue from external customers | 38,943 | 30,845 | - | 69,788 | ||||||||
| Segment income (loss) before corporate expenses, fair value adjustments to contingent consideration, finance expense and income taxes | 5,486 | 704 | - | 6,190 | ||||||||
| Fair value adjustments to contingent consideration | (106 | ) | - | - | (106 | ) | ||||||
| Corporate expenses | - | - | (3,753 | ) | (3,753 | ) | ||||||
| Segment income (loss) before finance expense and income taxes | 5,380 | 704 | (3,753 | ) | 2,331 | |||||||
| Finance expense | - | - | - | (1,748 | ) | |||||||
| Income tax expense | - | - | - | (110 | ) | |||||||
| Income for the period | - | - | - | 473 | ||||||||
| Total assets as at June 30, 2014 | 68,997 | 53,121 | 3,713 | 125,831 | ||||||||
| Depreciation of property, plant and equipment | 884 | 902 | 81 | 1,867 | ||||||||
| Amortization of intangible assets | 1,078 | 1 | 38 | 1,117 | ||||||||
| Goodwill and intangible assets as at June 30, 2014 | 39,823 | 646 | 117 | 40,586 | ||||||||
| Expenditures on property, plant and equipment | $ | 828 | $ | 127 | $ | 6 | $ | 961 | ||||
Contact Information:
Bernhard Rumbold
Interim President and Chief Executive Officer
905-689-7361, ext. 405
Opta Minerals Inc.
Peter Fryters
Chief Financial Officer and Treasurer
905-689-7361, ext. 405
investor_relations@optaminerals.com
www.optaminerals.com