(All amounts are stated in thousands of Canadian dollars, except per share amounts.)
BRAMPTON, Ontario, Aug. 09, 2018 (GLOBE NEWSWIRE) -- Brampton Brick Limited (TSX:BBL.A) today reported net income of $8,043, or $0.73 per share, for the three months ended June 30, 2018, compared to net income of $4,679, or $0.43 per share, for the corresponding quarter in 2017. The aggregate weighted average number of Class A Subordinate Voting shares and Class B Multiple Voting shares outstanding for the second quarter of 2018 and 2017 were 10,972,589 and 10,972,787, respectively.
DISCUSSION OF OPERATIONS
Three months ended June 30, 2018
Revenues increased to $50,852 for the second quarter of 2018 from $47,814 for the same quarter of 2017 due to higher shipments in the Masonry Products business segment. This growth was supported by an increase in multi-family housing construction in Ontario, Canada, during the second quarter of 2018, in spite of unfavourable weather conditions in April 2018 affecting shipments in that period.
Cost of sales for the second quarter ended June 30, 2018 increased to $35,371 from $34,577 for the corresponding quarter in 2017. The comparative increase in the cost of sales on higher shipments was favourably impacted by higher repair and maintenance costs incurred during the second quarter of 2017. In addition, higher production volumes, lower natural gas costs and efficiencies in electric power consumption during the second quarter of 2018 had a favourable impact on per unit manufacturing costs. The lower average U.S. dollar exchange rate during the second quarter of 2018 compared to the same period of 2017 had a favourable impact on a year-over-year comparison of the cost of sales of the U.S. operations.
Selling expenses for the second quarter of 2018 increased to $3,501 compared to $3,163 for the same quarter of 2017. An increase in marketing costs for promotional displays of both masonry and landscape products in the Company’s Eastern market, to expand its geographic market share, as well as the timing of product promotion expenses recognized during the current quarter of 2018 resulted in the increase.
General and administrative expenses for the quarter ended June 30, 2018, decreased to $2,011 from $2,990 for the same period of 2017. This decrease was mainly due to the exercise of certain cash-settled stock options during the second quarter of 2017. Share-based compensation costs amounting to $771 were recognized for the increase in fair market value (“FMV”) at the date of settlement over the FMV at grant date during the corresponding quarter of 2017. In addition, compensation costs recorded on share appreciation rights totaled $39 in the three months ended June 30, 2018 compared to $298 during the corresponding period in the prior year. This decrease was mainly due to timing differences in expense recognition as compensation costs on share appreciation rights of $183 were recorded during the first quarter of 2018 compared to Nil in the corresponding first quarter of 2017. Compensation costs on share appreciation rights are measured at fair value and are impacted by estimated changes in the Company’s exchange-traded share price.
The Company’s share of income from its joint venture interest in Universal Resource Recovery Inc. (“Universal”) amounted to $762 for the quarter ended June 30, 2018. On April 2, 2018, the Company acquired the remaining 50% interest in Universal, a 50% joint venture entity, for a purchase consideration of $6,500. This acquisition increased the Company’s investment in Universal to 100%. The Company intends on developing Universal’s Welland site into a state-of-the-art landscape and concrete masonry production facility, thus expanding the capacity of the Company’s concrete plant network.
The acquisition of the remaining 50% interest in Universal is accounted for as an effective sale of the existing 50% interest in the joint venture and the acquisition of a 100% interest in Universal at fair value on the acquisition date. Based on the fair value of the underlying property in Universal, which was estimated to be $13,000 at the date of acquisition of the remaining 50% interest, the Company recognized a net gain of $762. This gain effectively represented the Company’s partial recovery of the previously recorded impairment charges on its investment in the joint venture.
Operating income for the quarter ended June 30, 2018 increased to $10,681 from $7,036 for the same quarter in 2017.
Finance expense for the three months ended June 30, 2018 was $296 compared to finance expense of $118 for the corresponding quarter in 2017. Excluding the change in the fair value of the interest rate swap, which amounted to an unrealized gain of $24 (2017 – unrealized gain of $227), net interest expense for the current quarter decreased to $320 compared to $345 in the second quarter of 2017, due to lower outstanding debt balances. The decrease in these debt balances was the result of scheduled repayments amounting to $1,950 made during second half of 2017.
Provision for income taxes totaled $2,342 for the second quarter of 2018 compared to $2,239 for the same quarter of 2017. The provision for income taxes in the second quarters of 2018 and 2017, respectively, related to the pre-tax income of the Company’s Canadian operations. The Company has not recorded a deferred tax asset with respect to the potential deferred tax benefit pertaining to losses incurred by its U.S. operations.
Six months ended June 30, 2018
The Company recorded net income of $7,094, or $0.65 per share for the six-month period ended June 30, 2018, compared to net income of $1,778, or $0.16 per share for the corresponding period in 2017. The aggregate weighted average number of Class A Subordinate Voting shares and Class B Multiple Voting shares outstanding for the periods ended June 30, 2018 and June 30, 2017 was 10,973,168 and 10,964,530, respectively.
Revenues for the six months ended June 30, 2018 increased 9% to $75,809 from $69,483 for the same period in 2017, due to higher shipments in the Masonry Products and Landscape Products business segments. The strength in housing starts, as well as the lag in residential construction carried forward from 2017, contributed to an increase in shipments of masonry products, in spite of comparatively unfavourable weather conditions in the first half of 2018. Landscape shipments increased in the first six months of 2018 compared to the same period in 2017 mainly due to strong first-quarter shipments under the Company’s dealer winter booking program, in advance of anticipated seasonal demand. These shipments were deferred from the last quarter of 2017 to the first quarter of 2018 due to production capacity constraints in 2017.
Cost of sales for the six months ended June 30, 2018 increased to $55,812 from $54,301 for the corresponding period in 2017. Higher costs due to the increase in shipments during the first half of 2018 were partially offset in the year-over-year comparison by higher repair and maintenance expenses incurred at the Brampton and Markham plants during the first half of 2017. In addition, lower natural gas costs and efficiencies in electric power consumption during the six-month period of 2018 favourably impacted per unit costs on the higher production volumes. Additionally, the decrease in the average U.S. dollar exchange rate on the Company’s U.S. operations during the six-month period of 2018, compared to the same period of 2017, favourably impacted cost of sales during the first half of 2018.
Selling expenses for the six months ended June 30, 2018 were $6,485 compared to $5,979 for the same period in 2017. This increase in selling expenses was largely due to the reasons described above, in the discussion of operations for the three months ended June 30, 2018. In addition, an increase in marketing costs for new products and the design and engineering expenses related to potential new products, as well as a general increase in personnel costs related to higher shipments were incurred in the first half of 2018.
General and administrative expenses for the six-month period ended June 30, 2018, decreased to $4,132 from $4,876 for the corresponding period of 2017, for the same reasons noted above under the discussion for the three months ended June 30, 2018.
The Company’s share of income from its joint venture interest in Universal totaled $762 for the six months ended June 30, 2018. This transaction is described in detail under the discussion for the three months ended June 30, 2018.
Other income of $112 for the six-month period ended June 30, 2018 compared to other expense of $128 for the corresponding period of 2017 relates primarily to the gain (loss) on translation of foreign currency transactions as a result of currency exchange fluctuations attributed to the U.S. dollar during the period.
Operating income for the six months ended June 30, 2018 increased to $10,182 from $4,275 for the same period in 2017.
Finance expense for the six-month period ended June 30, 2018 totaled $469 compared to finance expense of $578 for the corresponding period in 2017. Excluding the change in the fair value of the interest rate swap, which amounted to an unrealized gain of $110 (2017 – unrealized gain of $85), net interest expense for the first six months of 2018 decreased to $579 compared to $663 for the corresponding period of 2017, due to lower outstanding debt balances. The decrease in these debt balances was the result of scheduled repayments amounting to $1,950 made during second half
of 2017.
Provision for income taxes totaled $2,619 for the first six months of 2018 compared to $1,919 for the same period in 2017. The provision for income taxes in the first half of 2018 and 2017, related to the pre-tax income of the Company’s Canadian operations. The Company has not recorded a deferred tax asset with respect to the potential deferred tax benefit pertaining to losses incurred by its U.S. operations.
The following paragraphs explain each operating business segment in more detail.
MASONRY PRODUCTS
Revenues of the Masonry Products business segment increased by 10% to $34,511 for the quarter ended June 30, 2018, compared to $31,487 for the corresponding quarter of 2017. The increase in shipments was supported by higher demand for new products, the continuing strength in multi-family residential construction and masonry product demand in commercial construction.
Cost of sales for the second quarter of 2018 decreased to $23,734 compared to $24,152 for the corresponding quarter in 2017. The cost of sales from higher shipments was offset by the favourable impact of lower planned repair and maintenance costs during the second quarter of 2018, lower natural gas costs and improved efficiencies in electric power consumption, largely attributed to the Brampton clay brick facility, on higher production volumes. In addition, higher production volumes and cost effective improvements in the product mix at the Farmersburg, Indiana clay brick plant positively contributed to lower per unit production costs. Production volumes in the Company’s masonry concrete plant network were lower during the second quarter of 2018 due to scheduled equipment maintenance, following comparatively higher production levels in the first quarter of 2018, to balance inventory volumes. The resulting decrease in cost of sales was offset, in part, by higher distribution costs to facilitate customer deliveries.
The decrease in general and administrative expenses noted above under the discussion for the three months ended June 30, 2018 also positively impacted masonry products operating costs.
As a result, the operating income for the second quarter of 2018 increased to $7,072, compared to $3,248 for the corresponding quarter of 2017.
For the six months ended June 30, 2018, revenues of the Masonry Products business segment increased by 9% to $56,282 compared to $51,453 for the corresponding period in 2017. The continuing strength in housing starts, a reduction of the backlog of residential construction from 2017 in the Greater Toronto Area during the first quarter of 2018, a growing demand for new products and an integrated product marketing approach contributed to the increase in shipments during the first half of 2018.
Cost of sales for the first six months of 2018 decreased to $40,155 compared to $41,326 for the corresponding period in 2017. The decrease in cost of sales was due to the same reasons noted above for the three month period ended June 30, 2018. In addition, higher production volumes in the masonry concrete manufacturing plants had a positive impact on per unit fixed costs. The decrease in the average value of the U.S. dollar exchange rate related to U.S. operations during the six-month period in 2018 also positively impacted cost of sales.
The decrease in general and administrative expenses noted above under the discussion for the three months ended June 30, 2018 also positively impacted operating costs.
As a result, the operating income for the six months ended June 30, 2018 increased to $8,547, compared to $2,303 for the corresponding period in 2017.
LANDSCAPE PRODUCTS
Revenues of the Landscape Products business segment for the three months ended June 30, 2018 was $16,307, compared to $16,327 for the corresponding quarter of 2017. During the second quarter of 2018, landscape revenues were generally in line with the corresponding quarter in 2017, in spite of unfavourable weather conditions in April 2018, which impacted shipments.
Cost of sales for the quarter ended June 30, 2018 increased to $11,473 from $10,425 for the corresponding quarter of 2017. The increase in production volumes during the second quarter of 2018 favourably impacted per unit production costs and supported an inventory build-up to meet anticipated seasonal demand. However, higher freight costs were incurred during the three months ended June 30, 2018, in order to meet customer demand.
The increase in cost of sales was partially offset by a decrease in general and administrative expenses noted above under the discussion for the three months ended June 30, 2018.
As a result, the operating income for the second quarter of 2018 decreased to $3,061, compared to $3,788 for the same quarter in 2017.
Revenues of the Landscape Products business segment for the six months ended June 30, 2018 increased to $19,493, from $18,030 for the corresponding period of 2017. The increase in revenues during the six-month period of 2018 reflected higher overall demand levels, as well as the increase in first-quarter shipments under the 2017 – 2018 dealer winter booking program that were only delivered in the first three months of 2018, due to production capacity constraints in the Company’s landscape products’ facilities in 2017. The winter booking program is a landscape sales program designed to help the Company’s dealer network pre-order landscape inventory in the fourth quarter of the year to ensure their yard inventory levels are optimized when the season opens in the spring.
Cost of sales for the six months ended June 30, 2018 increased to $15,493 from $12,975 for the corresponding period of 2017. The increase in cost of sales was due to higher shipments and was partially offset by lower per unit costs on higher production volumes. Higher distribution costs to meet customer demand and higher related selling expenses as described under the discussion for the six months ended June 30, 2018, were also incurred. These increases in operating costs were only partially offset by the decrease in the general and administrative expenses as described under the discussion for the three months ended June 30, 2018. In addition, the positive impact on the Company’s U.S. operations from the relative strength in the average Canadian dollar exchange rate during the first half of 2018, also offset, in part, the increase in operating costs.
As a result, the operating income for the first six months of 2018 decreased to $1,087, from $1,972 for the same period in 2017.
CASH FLOWS
Cash used for operating activities increased to $7,755 for the six months ended June 30, 2018, compared to $6,366 for the corresponding period in 2017. Higher inventories, lower collections from trade and other receivables due to timing differences in collections and higher trade payable disbursements were partially offset by improved operating results and lower income tax payments. Income tax payments in the first six months of 2017 included the final income tax remittances for the 2016 taxation year.
Cash utilized for purchases of property, plant and equipment totaled $2,647 in the six-month period of 2018, compared to $3,446 for the same period of 2017. This amount includes additions during the six months of 2018 totaling $3,315 (2017 – 2,575) and net amounts paid relating to additions in the prior period. Additions included $2,242 (2017 – $1,127) for production process equipment and
$636 (2017 – $1,010) for mobile equipment, of which none was financed by finance leases in 2018
(2017 – $323).
Cash paid for the purchase of the remaining 50% interest in Universal, a 50% joint venture entity, totaled $6,500 and is described in more detail under the discussion of operations for the three months ended June 30, 2018.
FINANCIAL CONDITION
The Company’s Masonry Products and Landscape Products business segments are seasonal in nature. The Landscape Products business is affected by seasonality 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.
There were no bank operating advances outstanding as of June 30, 2018 and as of December 31, 2017.
Trade payables totaled $21,791 at June 30, 2018 compared to $20,485 at December 31, 2017.
The ratio of total liabilities to shareholders’ equity was 0.53:1 at June 30, 2018 compared to 0.54:1 at December 31, 2017. This decrease in the ratio was primarily due to an increase in retained earnings on improved operating results, and an increase in accumulated other comprehensive income due to the strength in the exchange rate of the U.S. dollar as at the end of June 30, 2018 over the year-end exchange rate as at December 31, 2017.
As at June 30, 2018, the Company’s current ratio was 2.65:1, representing working capital of $50,242, compared to 2.74:1 and $48,365, respectively, as at December 31, 2017. The decrease in the current ratio was due to a decrease in cash and cash equivalents and an increase in trade payables and other liabilities outstanding, due to higher sales taxes payable on higher revenues in the second quarter of 2018. The decrease in the ratio was partially offset by an increase in trade receivables and inventories. Cash and cash equivalents totaled $5,239 at June 30, 2018, compared to $22,010 at December 31, 2017 and $838 at June 30, 2017.
As noted above, under the discussion of operations for the three months ended June 30, 2018, the Company acquired the remaining 50% interest in Universal, a 50% joint venture entity, increasing its investment to 100%. Upon purchase of this investment on April 2, 2018, the secured, non-interest bearing, loan payable by Universal to its former 50% joint venture owner totaling $5,691, became payable to the Company. As a result, the secured, non-interest bearing, non-current loan receivable from Universal totaled $12,084 as at June 30, 2018 (December 31, 2017 – $6,393). In accordance with IAS 10, Consolidated Financial Statements, inter-company assets and liabilities held by the Company and its wholly-owned subsidiaries offset each other and, therefore, are not presented in the Condensed Interim Consolidated Financial Statements.
The Company’s demand operating facility provides for borrowings of up to $22,000 based on margin formulae for trade receivables, certain other qualified receivables and inventories, less priority claims. It is a demand facility secured by a general security agreement over all assets. The agreement also contains certain financial covenants.
As at June 30, 2018, the borrowing limit based on the margin formulae was $22,000, of which $372 in outstanding letters of credit was utilized.
The Company was in compliance with all financial covenants under its term financing agreement and operating credit facility as at June 30, 2018, and anticipates that it will maintain compliance throughout the year.
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 future development plans for the Universal property, 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, production levels, costs, productivity, 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 2017 annual MD&A, included in the Company’s 2017 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, 2017), 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 Farmersburg, 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 and distributed from facilities in Markham, Hillsdale, Brockville and Brampton, Ontario, in Boisbriand, Quebec 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..
SELECTED FINANCIAL INFORMATION
(unaudited)(in thousands of Canadian dollars)
| CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS | June 30 | December 31 | ||
| 2018 | 2017 | |||
| ASSETS | ||||
| Current assets | ||||
| Cash and cash equivalents | $ 5,239 | $ 22,010 | ||
| Trade and other receivables | 37,135 | 21,287 | ||
| Inventories | 36,642 | 31,666 | ||
| Other assets | 1,554 | 1,065 | ||
| Loan receivable | 96 | 94 | ||
| Current derivative financial instrument | 31 | – | ||
| 80,697 | 76,122 | |||
| Non-current assets | ||||
| Loans receivable | 25 | 6,457 | ||
| Property, plant and equipment | 170,133 | 157,365 | ||
| Non-current derivative financial instrument | 316 | 258 | ||
| Other assets | 214 | 181 | ||
| 170,688 | 164,261 | |||
| Total assets | $ 251,385 | $ 240,383 | ||
| LIABILITIES | ||||
| Current liabilities | ||||
| Trade payables | $ 21,791 | $ 20,485 | ||
| Income tax payable | 129 | 746 | ||
| Current portion of debt | 2,211 | 2,129 | ||
| Current derivative financial instrument | – | 21 | ||
| Current provision on share appreciation rights | 538 | 308 | ||
| Decommissioning provisions | 31 | 31 | ||
| Other liabilities | 5,755 | 4,037 | ||
| 30,455 | 27,757 | |||
| Non-current liabilities | ||||
| Non-current portion of debt | 33,867 | 34,037 | ||
| Non-current derivative financial instrument | 135 | 143 | ||
| Decommissioning provisions | 6,698 | 6,571 | ||
| Deferred tax liabilities | 15,600 | 15,885 | ||
| 56,300 | 56,636 | |||
| Total liabilities | 86,755 | 84,393 | ||
| EQUITY | ||||
| Share capital | $ 33,897 | $ 33,915 | ||
| Contributed surplus | 3,191 | 3,146 | ||
| Accumulated other comprehensive income | 9,782 | 8,240 | ||
| Retained earnings | 117,760 | 110,689 | ||
| 164,630 | 155,990 | |||
| Total liabilities and equity | $ 251,385 | $ 240,383 | ||
(unaudited)(in thousands of Canadian dollars, except per share amounts)
| CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | Three months ended June 30 | Six months ended June 30 | |||||||||||
| 2018 | 2017 | 2018 | 2017 | ||||||||||
| Revenues | $ 50,852 | $ 47,814 | $ 75,809 | $ 69,483 | |||||||||
| Cost of sales | 35,371 | 34,577 | 55,812 | 54,301 | |||||||||
| Selling expenses | 3,501 | 3,163 | 6,485 | 5,979 | |||||||||
| General and administrative expenses | 2,011 | 2,990 | 4,132 | 4,876 | |||||||||
| Loss (gain) on disposal of property, plant and equipment | 80 | (40 | ) | 72 | (76 | ) | |||||||
| Share of income from joint venture interest in Universal | (762 | ) | – | (762 | ) | – | |||||||
| Other (income) expense | (30 | ) | 88 | (112 | ) | 128 | |||||||
| 40,171 | 40,778 | 65,627 | 65,208 | ||||||||||
| Operating income | 10,681 | 7,036 | 10,182 | 4,275 | |||||||||
| Finance expense | (296 | ) | (118 | ) | (469 | ) | (578 | ) | |||||
| Income before income taxes | 10,385 | 6,918 | 9,713 | 3,697 | |||||||||
| (Provision for) recovery of income taxes | |||||||||||||
| Current | (2,483 | ) | (2,308 | ) | (2,905 | ) | (2,156 | ) | |||||
| Deferred | 141 | 69 | 286 | 237 | |||||||||
| (2,342 | ) | (2,239 | ) | (2,619 | ) | (1,919 | ) | ||||||
| Net income for the period | $ 8,043 | $ 4,679 | $ 7,094 | $ 1,778 | |||||||||
| Other comprehensive income (loss) | |||||||||||||
| Items that will be reclassified subsequently to profit or loss when specific conditions are met: | |||||||||||||
| Foreign currency translation gain (loss) | $ 657 | $ (1,096 | ) | $ 1,542 | $ (1,460 | ) | |||||||
| Total comprehensive income for the period | $ 8,700 | $ 3,583 | $ 8,636 | $ 318 | |||||||||
| Net income per Class A Subordinate Voting share and Class B Multiple Voting share | $ 0.73 | $ 0.43 | $ 0.65 | $ 0.16 | |||||||||
| Weighted average Class A Subordinate Voting shares and Class B Multiple Voting shares outstanding (000's) | 10,973 | 10,973 | 10,973 | 10,965 | |||||||||
(unaudited)(in thousands of Canadian dollars)
| CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS | Six months ended June 30 | ||||
| 2018 | 2017 | ||||
| Cash provided by (used for) | |||||
| Operating activities | |||||
| Net income for the period | $ 7,094 | $ 1,778 | |||
| Items not affecting cash and cash equivalents | |||||
| Depreciation | 4,677 | 5,098 | |||
| Current taxes provision | 2,905 | 2,156 | |||
| Deferred taxes recovery | (286) | (237) | |||
| Loss (gain) on disposal of property, plant and equipment | 72 | (76) | |||
| Share of income from joint venture investment in Universal | (762) | – | |||
| Unrealized foreign currency exchange (gain) loss | (192) | 128 | |||
| Net interest expense | 579 | 663 | |||
| Derivative financial instrument gain | (110) | (85) | |||
| Other | 270 | 439 | |||
| 14,247 | 9,864 | ||||
| Changes in non-cash items | |||||
| Trade and other receivables | (15,692) | (11,916) | |||
| Inventories | (4,437) | (3,421) | |||
| Other assets | (492) | (563) | |||
| Trade payables | 507 | 3,487 | |||
| Other liabilities | 1,634 | 1,388 | |||
| (18,480) | (11,025) | ||||
| Income tax payments | (3,522) | (5,205) | |||
| Cash used for operating activities | (7,755) | (6,366) | |||
| Investing activities | |||||
| Purchase of property, plant and equipment | (2,647) | (3,446) | |||
| Purchase of investment in Universal | (6,500) | – | |||
| Cash acquired on purchase of investment in Universal | 769 | – | |||
| Proceeds from repayments of loans receivable | 36 | 34 | |||
| Proceeds from disposal of property, plant and equipment | 62 | 246 | |||
| Cash used for investment activities | (8,280) | (3,166) | |||
| Financing activities | |||||
| Increase in bank operating advances | – | 593 | |||
| Payment of term loans | (5) | (5) | |||
| Interest paid | (613) | (677) | |||
| Payments on obligations under finance leases | (91) | (552) | |||
| Proceeds from exercise of stock options | – | 135 | |||
| Repurchase of Class A Subordinate Voting shares | (41) | – | |||
| Cash used for financing activities | (750) | (506) | |||
| Foreign exchange on cash held in foreign currency | 14 | (47) | |||
| Decrease in cash and cash equivalents | (16,771) | (10,085) | |||
| Cash and cash equivalents at the beginning of the period | 22,010 | 10,923 | |||
| Cash and cash equivalents at the end of the period | $ 5,239 | $ 838 | |||
(unaudited)(in thousands of Canadian dollars)
| CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY | ||||||
Share Capital | Contributed Surplus | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Total Equity | ||
| Balance – January 1, 2017 | $ 33,755 | $ 3,101 | $ 10,829 | $ 104,745 | $ 152,430 | |
| Net income for the period | – | – | – | 1,778 | 1,778 | |
| Other comprehensive loss (net of taxes, $nil) | – | – | (1,460) | – | (1,460 ) | |
| Total comprehensive (loss) income for the period | – | – | (1,460) | 1,778 | 318 | |
| Cash-settled, share-based compensation | – | (167) | (167 ) | |||
| Stock options exercised | 160 | (25) | – | – | 135 | |
| Share-based compensation | – | 142 | – | – | 142 | |
| Balance – June 30, 2017 | $ 33,915 | $ 3,051 | $ 9,369 | $ 106,523 | $ 152,858 | |
| Balance – January 1, 2018 | $ 33,915 | $ 3,146 | $ 8,240 | $ 110,689 | $ 155,990 | |
| Net income for the period | – | – | – | 7,094 | 7,094 | |
| Other comprehensive income (net of taxes, $nil) | – | – | 1,542 | – | 1,542 | |
| Total comprehensive income for the period | – | – | 1,542 | 7,094 | 8,636 | |
| Share-based compensation | – | 45 | – | – | 45 | |
| Repurchase of Class A Subordinate Voting shares | (18) | – | – | (23) | (41 ) | |
| Balance – June 30, 2018 | $ 33,897 | $ 3,191 | $ 9,782 | $ 117,760 | $ 164,630 | |
For more information please contact:
Jeffrey G. Kerbel, President and Chief Executive Officer
OR
Trevor M. Sandler, Vice-President, Finance and Chief Financial Officer
Brampton Brick Limited
Tel: 905-840-1011
Fax: 905-840-1535
e-mail: investor.relations@bramptonbrick.com