BRAMPTON, ONTARIO, Nov 05 (MARKET WIRE) --
(All amounts are stated in thousands of Canadian dollars, except per
share amounts, unless otherwise indicated.)
Brampton Brick Limited (the "Company") (TSX: BBL.A) today reported a loss
of $77 or $0.01 per Class A Subordinate Voting share ("Class A share")
and Class B Multiple Voting share ("Class B share"), for the third
quarter ended September 30, 2009 on a weighted average 10,937,000 Class A
shares and Class B shares outstanding. For the third quarter of 2008, net
income was $2,499, or $0.23 per share, on a weighted average 10,952,000
Class A shares and Class B shares outstanding.
For the nine month period ended September 30, 2009, the Company reported
a loss of $9,578, or $0.88 per share, on a weighted average 10,937,000
Class A shares and Class B shares outstanding compared to net income of
$1,433, or $0.13 per share, on a weighted average 10,925,000 Class A
shares and Class B shares outstanding, for the corresponding period in
2008.
Effective with the adoption of the new Canadian Institute of Chartered
Accountants Handbook Section 3064, Goodwill and Intangible Assets, on
January 1, 2009, operating costs in the amount of $1,832 pertaining to
the pre-production period of the new Indiana clay brick plant and the
Company's share of the unamortized balance of start-up costs related to
Universal Resource Recovery Inc. ("Universal") in the amount of $179 were
adjusted to opening retained earnings. As at December 31, 2008 these
costs were included in the Consolidated Balance Sheet under Other assets.
This change has been applied retroactively and the prior year comparative
financial statements have been restated accordingly. Commencing in 2009
any such costs are charged to operations as incurred.
RESULTS OF OPERATIONS
Three months ended September 30
For the third quarter ended September 30, 2009, the Company incurred a
loss of $77, or $0.01 per share, compared to net income of $2,499, or
$0.23 per share, for the corresponding period in 2008.
Net sales from continuing operations for the quarter were $19,234
compared to $27,427 in 2008. The net decrease of $8,193 was primarily due
to lower clay brick shipments which resulted in a decrease of $8,396 in
net sales attributable to the Masonry Products business segment. Net
sales of the Landscape Products business segment increased marginally
from $8,019 in the third quarter of 2008 to $8,042 in the third quarter
this year. Net sales of the new waste composting operations of Universal,
which commenced in the second half of 2008, amounted to $337 for the
three months ended September 30, 2009 compared to $157 for the same
period last year.
Operating income from continuing operations, before interest and other
items, amounted to $1,118 in the third quarter of 2009 compared to $4,271
in the third quarter of 2008.
Lower cost of goods sold, corresponding to the decrease in sales volumes,
and a reduction in selling, general and administrative expenses were
partially offset by higher amortization charges. Selling, general and
administrative expenses decreased primarily due to lower marketing
expenditures and lower personnel costs. The increase in amortization
charges relates to the new Indiana clay brick plant and to the operations
of Universal. Waste processing and transportation costs associated with
Universal's operations were $528 in the third quarter of 2009 compared to
$261 in 2008. These amounts are included in cost of goods sold.
Interest on long-term debt increased by $339 to $777 due to higher term
debt outstanding during the quarter compared to the same period in 2008.
Other interest reflected an expense of $175 for the quarter compared to
income of $159 in the prior period due to lower interest income earned on
the promissory note receivable and the cost of the net cash settlement
under the interest rate swap contract which is now reflected in this line
item.
During the three month period ended September 30, 2009, the Company
recorded a foreign currency exchange gain of $161 primarily as a result
of the impact of fluctuations in the rate of exchange between the
Canadian and U.S. dollar during the quarter on foreign currency
denominated monetary items. For the same period in 2008, the Company
reported a foreign currency exchange loss of $69.
During the quarter, the Company recorded an unrealized gain of $142,
reflecting the change in fair value during the period, on the $20,000
interest rate swap contract which is no longer designated as an effective
cash flow hedge.
The provision for income taxes in the third quarter of 2009 reflected an
effective income tax rate of 114.9%, primarily as a result of the
valuation allowances that have been recorded against the future income
tax benefit that would otherwise have been reflected with respect to the
non-capital losses of the Company's U.S. operations and Universal.
Nine Months ended September 30
For the nine months ended September 30, 2009, the Company incurred a loss
of $9,578, or $0.88 per share, compared to net income of $1,433, or $0.13
per share, for the nine months ended September 30, 2008.
Operating results for the nine month period included the following
unusual charges:
1. A provision of $1,998 to reflect the unrealized loss on the interest
rate swap contract.
2. A loss of $269 on the sale of a portion of the promissory note
receivable.
3. A loss of $190 on the sale of the remaining surplus properties in
Quebec.
The Company has recorded an income tax recovery in the estimated amount
of $807 in respect of these items. Consequently, the impact on the loss
to September 30, 2009 was $1,650, or $0.15 per share. Each of these items
is described in greater detail below.
In addition, the loss incurred by the new Indiana clay brick plant for
the nine month period in 2009 amounted to approximately $3,502, including
pre-production costs in the estimated amount of $1,478 charged against
operations, compared to $816 in 2008. The Company's share of the loss
incurred by Universal was $1,499 compared to $453 last year.
Net sales from continuing operations for the nine month period were
$44,969, which represented a decrease of $22,239 from the same period in
2008. Substantially lower sales in the Masonry Products business segment
and a small reduction in sales in the Landscape Products business
accounted for the decrease. Net sales attributable to the new waste
composting operations, which commenced in the third quarter of 2008,
amounted to $2,003 compared to $157 in 2008.
Lower cost of goods sold and a significant decrease in selling, general
and administrative expenses were partially offset by higher amortization
charges. The reasons for each of these variances were substantially the
same as reported above for the third quarter results, except that
year-to-date operating results were also negatively impacted by
substantially lower production volumes in both the Masonry Products and
Landscape Products business segments. This resulted in an increase in
unabsorbed manufacturing costs charged against operations. Waste
processing and transportation costs related to Universal's operations
included in cost of goods sold amounted to $2,599 for the nine month
period compared to $414 in 2008.
For the nine months ended September 30, 2009, the Company incurred an
operating loss, before interest and other items, of $7,006 compared to
operating income of $4,895 for the nine months ended September 30, 2008.
On April 9, 2009, the Company sold an undivided, co-ownership interest,
representing approximately 59.9%, in the promissory note receivable,
including future interest payments, for cash proceeds of $3,793 resulting
in a loss of $269.
On June 17, 2009, the remaining surplus properties located in Quebec were
sold for cash proceeds of $1,200, resulting in a loss of $190.
On June 29, 2009, the Company entered into a new $30,000 fixed-rate, term
financing agreement with a new lender and repaid its $20,000 term bank
loan. The Company holds an interest rate swap contract which was
previously designated as an effective cash flow hedge against the term
bank loan. The repayment of this term bank loan resulted in the swap
contract no longer being an effective cash flow hedge. Consequently, the
Company has recorded a charge of $1,998 to reflect the unrealized loss on
the interest rate swap contract.
The variances in interest on long-term debt, other interest income
(expense), foreign currency exchange gain (loss) and other income
(expense) for the nine month period reflect substantially the same
factors as outlined above for the three month period.
The recovery of income taxes relates primarily to the Company's Canadian
Masonry Products and Landscape Products operations. As noted above,
valuation allowances have been recorded in both the current and prior
period against the future income tax benefit that would otherwise have
been reflected with respect to the non-capital losses incurred in the
U.S. operations and by Universal. The losses incurred by the new Indiana
clay brick plant, which commenced commercial production during the second
quarter of 2009, and by Universal, which commenced operations in the
second half of 2008, were much higher in the current period than in the
corresponding prior period.
For the nine months ended September 30, 2008, discontinued operations
incurred a loss of $355, or $0.03 per share.
More detailed discussion with respect to each operating business segment
follows:
MASONRY PRODUCTS
Net sales of the Masonry Products business segment were $10,855 for the
three months ended September 30, 2009, compared to $19,251 for the same
period in 2008. Operating income was $535 compared to $4,340 last year.
For the nine month period to September 30, 2009, this business segment
incurred an operating loss of $4,198 on net sales of $26,396 compared to
operating income of $9,701 on net sales of $50,198 in 2008. The decrease
in net sales was due to lower clay brick shipments which, in turn, was
attributable to a substantial decline in residential construction
activity in both the Canadian and U.S. markets.
In addition to the impact of significantly lower net sales, lower
absorption of fixed manufacturing costs due to much lower production
volumes in the Canadian operations and a higher loss incurred in the U.S.
operations, also contributed to the decrease in the operating income.
Selling, general and administrative expenses applicable to this business
segment were lower in both the three and nine month periods of 2009 than
in 2008, primarily due to lower sales commissions and lower personnel
costs.
LANDSCAPE PRODUCTS
The Landscape Products business segment reported operating income of
$1,039 on net sales of $8,042 for the three month period ended September
30, 2009 compared to operating income of $118 on net sales of $8,019 in
2008. The improvement in operating results was primarily due to lower
cost of goods sold which, in turn, was due to improved manufacturing
efficiencies and other cost reduction initiatives.
Net sales increased in the Canadian market as a result of higher sales
volumes. Net sales in the U.S. market were lower due to the economic
factors which continue to impact upon the Michigan market.
For the nine month period, net sales decreased marginally from $16,853 in
2008 to $16,570 in 2009 and the operating loss was reduced from $4,306 in
2008 to $1,450 in 2009.
The $2,856 improvement in operating results was due to improved
manufacturing efficiencies and other cost reduction initiatives as well
as lower marketing expenditures and lower personnel costs.
OTHER OPERATIONS
Other operations include the Company's 50% joint venture interest in
Universal. This investment is accounted for using the proportionate
consolidation method. Commercial operations commenced in August 2008.
For the three month period ended September 30, 2009, the Company's share
of Universal's net sales and operating loss amounted to $337 and $445,
respectively, compared to net sales of $157 and an operating loss of $161
for the same period in 2008.
For the nine month period, the Company's share of Universal's net sales
were $2,003 and the share of the operating loss was $1,349 compared to
$157 and $452, respectively, in 2008.
Composting operations at Universal's site in Welland were temporarily
suspended in early May 2009, in order to construct and install capital
improvements and to modify operating processes to address various issues
which arose during the commissioning and start-up phase of these new
operations. Composting operations resumed in early August 2009.
DISCONTINUED OPERATIONS
Discontinued operations represent the Company's former joint venture
interest in Sharpsmart Canada Limited, which was sold in April 2008, and
its interest in certain small quantity generator accounts which were
disposed of effective September 1, 2008.
For the three month period ended September 30, 2008, discontinued
operations reported net income of $41, or $0.01 per share. For the nine
month period, the loss from discontinued operations was $355, or $0.03
per share.
CASH FLOWS
Cash flow provided by operating activities of continuing operations
totaled $3,814 for the quarter ended September 30, 2009 compared to
$11,311 for the same period last year. The decline in operating results
for the quarter and changes in non-cash operating items relative to the
comparative period in the prior year were the primary factors
contributing to the decline. Fiscal 2008 results reflected cash generated
by a significant reduction in working capital which was attributable to
the economic slow-down.
Cash utilized for purchases of property, plant and equipment totaled
$2,765 for the three month period ended September 30, 2009, including
payments of $2,115 with respect to the Indiana clay brick plant and $489
pertaining to the Company's 50% share of capital expenditures incurred by
Universal. Comparative amounts for the same period in 2008 were $17,693,
$11,868 and $4,511, respectively.
For the nine month period ended September 30, 2009, cash used for
operating activities of continuing operations totaled $3,434 compared to
cash provided by operations of $9,806 in 2008. The variance was largely
the result of the increase in the loss from operations and changes in
non-cash operating items.
Cash utilized for purchases of property, plant and equipment totaled
$9,381 compared to $42,197 in 2008. Expenditures pertaining to the
Indiana clay brick plant were $7,012 in 2009 and $30,168 in 2008.
Expenditures pertaining to the Company's 50% share of capital
expenditures incurred by Universal in the periods were $1,297 and $7,725,
respectively.
The sale on April 9, 2009, of an undivided, co-ownership interest,
representing approximately 59.9%, in the proceeds of the promissory note
receivable, including future interest payments, generated cash proceeds
of $3,793. The proceeds were utilized to reduce bank operating advances.
The Company has provided a guarantee to secure repayment of the proceeds
to the purchaser when due.
The promissory note receivable arose on the sale of the medical waste
assets and business operations in October 2007. The outstanding principal
amount of $6,667 bears interest at a fixed rate of 3.5% per annum and has
been discounted for accounting purposes at an effective rate of 5.0% per
annum. The balance is to be paid in annual principal instalments of
$3,333.5 each, plus interest, in October 2009 and October 2010. The
principal and interest are secured by a letter of credit from a major
financial institution. The principal and interest due in October 2009, of
which the Company's share was $1,433, were received as scheduled.
The sale of the remaining surplus properties in Quebec held for sale
generated cash proceeds of $1,200. The proceeds were utilized to reduce
bank operating advances.
On June 29, 2009, the Company completed a new $30,000 term financing
arrangement. Proceeds of the new financing were utilized to repay a
$20,000 term bank loan with the balance utilized to reduce bank operating
advances.
Due to current economic conditions, the Board of Directors of the Company
had previously determined and announced its decision to not declare a
dividend in 2009. In each of the past four years the Company had paid
semi-annual dividends of $0.10 per Class A share and $0.10 per Class B
share.
FINANCIAL CONDITION
The nature of the Company's products and primary markets dictates that
its Masonry Products and Landscape Products business segments are
seasonal. Historically, sales are much lower in the first and fourth
quarters of the year than in the second and third quarters. The Landscape
Products business is affected to a greater degree than the Masonry
Products business. As a result of this seasonality, operating results are
impacted accordingly and cash requirements are generally expected to
increase through the first half of the year and decline through the
second half of the year.
The ratio of total liabilities to shareholders' equity was 0.55:1 at
September 30, 2009 compared to 0.47:1 at December 31, 2008. The increase
in this ratio to September 30, 2009 was primarily due to the increase in
long-term financing and lower retained earnings resulting from the loss
incurred in 2009.
As at September 30, 2009, working capital was $12,870 compared to $4,715
at December 31, 2008.
As noted above, the Company completed a new $30,000 long-term financing
arrangement with a new lender on June 29, 2009. A portion of the proceeds
of the new financing were utilized to repay a $20,000 term bank loan with
the balance to be utilized for general corporate purposes.
The term of the new loan is seven years with payments of interest only
for the first two years. Principal repayments commence in July 2011 at
$500 per month in the months of July to November inclusive ($2,500 per
year) to 2015, and a balloon payment of $17,500 in June 2016. The rate of
interest is fixed at 8.00%.
The term loan is secured primarily by real estate and production
equipment of the Company's Masonry Products and Landscape Products
business segments in both Canada and U.S.
The new term loan was initially recorded for accounting purposes at its
fair value, which net of various transaction costs in the amount of $611
amounted to $29,389, and is being carried at its amortized cost. The
transaction costs are being amortized over the term of the loan resulting
in an effective interest rate of 8.40%.
The term loan agreement contains various financial covenants and the
Company was in compliance with all financial covenants as at September
30, 2009.
Due to the seasonality of the Company's primary business segments and the
low level of residential construction activity, the Company anticipates
that it may not be able to maintain compliance with the minimum interest
coverage requirement, as stipulated in the agreement, as at December 31,
2009 and March 31, 2010. Consequently, the Company sought and obtained an
amendment to this financial covenant. Based upon its current forecast,
the Company anticipates that it will be able to maintain compliance with
the amended interest coverage requirement and with all other financial
covenants.
In August 2009, the Company entered into a new credit agreement with its
banker pertaining to its $16,000 operating credit facility. This is a
demand facility which is secured primarily by accounts receivable and
inventories of the Company's Masonry Products and Landscape Products
business segments in both Canada and the U.S. The actual amount that the
Company may borrow under this facility is determined based on standard
margin formulas for accounts receivable and inventories. The borrowing
limit is reduced by the amount of the mark-to-market exposure on the
interest rate swap contract. At September 30, 2009 this amount was $1,998.
Excluding Universal, the Company had aggregate operating credit
facilities as at September 30, 2009 totaling up to $17,450, of which
$1,083 had been utilized, including $363 for outstanding letters of
credit.
The Company expects that future cash flows from operations, cash and cash
equivalents on hand and the unutilized balances of its operating credit
facilities will be sufficient to satisfy its obligations as they become
due.
Aggregate capital expenditures incurred in connection with the
construction of the new brick plant in Indiana were U.S. $53,330, of
which U.S. $51,954 had been paid to September 30, 2009. The remaining
balance, which is comprised primarily of final holdbacks, is expected to
be funded from future cash flows from operations and the Company's credit
facilities, as required. Construction is now completed.
Universal's credit agreement provides for an aggregate amount of $20,000,
including term, operating and letter of credit facilities. As at
September 30, 2009, the entire amount of the $15,000 term loan facility
had been drawn and letters of credit in the amount of $1,123 had been
issued. The Company's proportionate shares were $7,500 and $562,
respectively.
Borrowings under these facilities are secured by substantially all of the
assets and undertakings of Universal. In addition, the Company and the
joint venture partner have each provided a guarantee of $6,500.
The actual amount that may be borrowed by Universal under its demand
operating facility is the lesser of (i) 75% of under 90 day accounts
receivable minus the face value of letters of credit in excess of $1,000,
and (ii) $3,000.
During the second quarter ended June 30, 2009, Universal's term loan
facility was amended to commence monthly principal repayments in January
2010. Previously, the repayments were scheduled to commence in May 2009.
Interest is based on bank prime plus Universal's credit spread, which may
vary based on its ratio of debt to tangible net worth. Currently the
credit spread is 1.75%.
Universal's credit agreement contains various financial covenants and it
was in compliance with the financial covenants as at September 30, 2009.
As a result of the losses incurred to date in 2009, which were due to the
additional costs incurred during the commissioning and start-up phase of
this new operation and the temporary suspension of composting operations
for a portion of the year, Universal anticipates that it will not be in
compliance with the debt service coverage requirement which becomes
effective for the year ending December 31, 2009. Failure to achieve
compliance would give the lender the right to demand repayment and to
realize upon its security. Universal has entered into discussions with
its lender to seek temporary relief with respect to this financial
covenant.
Universal anticipates that it will require approximately $1,363 to fund
the balance of its capital expenditure requirements. This amount is
expected to be funded by Universal from future cash flows from operations
and the unutilized balance of its operating credit facility and, to the
extent required, from further advances from the joint venture partners.
OTHER
The Company is also pleased to announce that Mr. Frank Buck has joined
Brampton Brick as Senior Vice-President, Strategic Development for the
Masonry Products business segment. His responsibilities include the
development and implementation of sales and marketing strategies for both
the Canadian and U.S. markets. He has over 30 years of experience in the
building products industry, including nine years in the brick industry in
Canada and the U.S. This background will provide valuable experience as
the Company continues to develop its strategies to expand its markets and
achieve growth in both its traditional clay brick products as well as the
many new concrete masonry products.
The Company's Masonry Products and Landscape Products business segments
are cyclical. Demand for masonry products fluctuates in accordance with
the level of new residential and commercial construction activity. Demand
for landscape products fluctuates in accordance with the level of
industrial, commercial and institutional construction activity and
consumer spending.
These business segments are also seasonal. Historically, sales are
greatest in the second and third quarters of each year and are less in
the first and fourth quarters. The Landscape Products business segment is
affected to a greater extent than the Masonry Products business segment.
To date, economic conditions have continued to have a significant impact
upon residential and commercial construction activity and on consumer
spending. Demand for the Company's products has been affected
accordingly.
In recent months there has been a notable increase in new home sales,
compared to the latter part of 2008 and the early part of 2009, in the
Company's primary market of Southern Ontario. While this upturn may be
expected to have some impact on new home construction in the fourth
quarter of 2009, the Company believes that the majority of the impact
will occur in 2010. Consequently, the Company continues to monitor sales
forecasts and cash flows and adjust operating plans, production levels,
manpower requirements and discretionary expenditures, as required, in
order to minimize the financial impact of the slowdown on operating
results and cash flows.
Construction of the Indiana clay brick manufacturing plant is now
completed. Testing and commissioning of the production equipment was
carried out throughout much of the first quarter. Commercial production
began in April.
During the third quarter, Universal completed its plan to address various
issues affecting composting operations which arose during the initial
commissioning and start-up phase. Composting operations resumed in
August.
Certain statements contained herein constitute "forward-looking
statements". Such forward-looking statements involve known and unknown
risks, uncertainties and other factors including, but not limited to,
those identified under "Risks and Uncertainties" in the Company's 2008
Annual Report, 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.
Brampton Brick is Canada's second largest manufacturer of clay brick and
manufactures concrete paving stones, retaining walls, garden walls and
enviro products in Canada and U.S. under the Oaks Concrete Products trade
name. The Company also manufactures a range of concrete masonry products
including stone veneer, window sills and concrete brick. Products are
used for residential construction and for industrial, commercial, and
institutional building projects. Da Vinci Stone Craft Ltd., a wholly
owned subsidiary, manufactures fireplace surrounds and accessory
products. The Company also holds a 50% joint-venture interest in
Universal Resource Recovery Inc. which operates a waste composting
facility in Welland, Ontario.
Selected Financial Information
(unaudited) (in thousands of dollars, except per share amounts)
----------------------------------------------------------------------------
Three months ended Nine months ended
CONSOLIDATED STATEMENTS OF September 30 September 30
OPERATIONS 2009 2008 2009 2008
----------------------------------------------------------------------------
Net sales from continuing
operations $ 19,234 $ 27,427 $ 44,969 $ 67,208
Cost of goods sold 12,481 18,024 35,312 45,859
Selling, general and
administrative expenses 2,620 3,029 8,186 10,026
Amortization 3,015 2,103 8,477 6,428
------------------------------------------------
18,116 23,156 51,975 62,313
Operating income (loss)
from continuing operations
before the undernoted
items 1,118 4,271 (7,006) 4,895
Interest on long-term debt (777) (438) (1,735) (832)
Other interest income
(expense) (net) (175) 159 (236) 330
Foreign currency exchange
gain (loss) 161 (69) 452 (375)
Other income (expense) (174) 23 (222) 48
------------------------------------------------
(965) (325) (1,741) (829)
------------------------------------------------
Income (loss) from
continuing operations
before the following items 153 3,946 (8,747) 4,066
(Loss) gain on sale of
property held for sale - - (190) 136
Loss on sale of promissory
note - - (269) -
(Loss) gain on discontinued
hedge accounting 142 - (1,998) -
------------------------------------------------
Income (loss) from
continuing operations
before income taxes and
non-controlling interests 295 3,946 (11,204) 4,202
(Provision for) recovery of
income taxes
Current (344) (1,301) 742 (2,261)
Future 5 (169) 880 (74)
------------------------------------------------
(339) (1,470) 1,622 (2,335)
------------------------------------------------
(Loss) income from
continuing operations before non-controlling
interests (44) 2,476 (9,582) 1,867
Non-controlling interests (33) (18) 4 (79)
------------------------------------------------
(Loss) net income from
continuing operations (77) 2,458 (9,578) 1,788
(Loss) net income from
discontinued operations - 41 - (355)
------------------------------------------------
(Loss) net income for the
period $ (77) $ 2,499 $ (9,578) $ 1,433
------------------------------------------------
------------------------------------------------
(Loss) net income per Class
A and Class B share
From continuing operations $ (0.01) $ 0.22 $ (0.88) $ 0.16
------------------------------------------------
------------------------------------------------
For the period $ (0.01) $ 0.23 $ (0.88) $ 0.13
------------------------------------------------
------------------------------------------------
Weighted average Class A
and Class B shares
outstanding (000's) 10,937 10,952 10,937 10,925
(unaudited) (in thousands of dollars, except per share amounts)
----------------------------------------------------------------------------
Three months ended Nine months ended
CONSOLIDATED STATEMENTS September 30 September 30
OF CASH FLOWS 2009 2008 2009 2008
----------------------------------------------------------------------------
Cash provided by (used for)
activities of continuing
operations
Operating activities
(Loss) net income from
continuing operations
for the period $ (77) $ 2,458 $ (9,578) $ 1,788
Items not affecting cash
and cash equivalents
Amortization and
accretion 3,021 2,116 8,507 6,465
Future income taxes (5) 169 (880) 74
Non-controlling
interests 33 18 (4) 79
Unrealized foreign
currency exchange (gain)
loss 26 (69) (270) (175)
Loss (gain) on disposal
of property, plant and
equipment - (1) 2 (4)
Loss (gain) on property
held for sale - - 190 (136)
Loss on sale of
promissory note - - 269 -
Loss (gain) on
discontinued hedge
accounting (142) - 1,998 -
Other 61 22 167 179
------------------------------------------------
2,917 4,713 401 8,270
Changes in non-cash
operating items
Accounts receivable 1,130 3,117 (3,417) (7,620)
Inventories (1,316) 2,795 852 5,306
Accounts payable and
accrued liabilities 1,025 (973) 925 2,038
Income taxes payable
(net) 393 2,169 (1,874) 2,248
Other (276) (510) (68) (436)
------------------------------------------------
956 6,598 (3,582) 1,536
Payments of asset
retirement obligation (59) - (253) -
------------------------------------------------
Cash provided by (used
for) operating activities
of continuing operations 3,814 11,311 (3,434) 9,806
Investing activities
Purchase of property,
plant and equipment (2,765) (17,693) (9,381) (42,197)
Proceeds from disposal
of property, plant and
equipment - - 3 12
Proceeds from sale of
promissory note - - 3,793 -
Proceeds from sale of
property held for sale - - 1,200 216
Inter-company advances
repaid by discontinued
operations - - - 715
------------------------------------------------
Cash used for investment
activities
of continuing operations (2,765) (17,693) (4,385) (41,254)
Financing activities
Increase (decrease) in
bank operating advances (10) (851) (1,861) 1,029
Increase in term loans - 6,925 32,388 20,175
Repayment of term loans - (17) (20,264) (289)
Payments on obligations
under capital leases (85) (70) (286) (180)
Payment of dividends by
subsidiary
to non-controlling
interests - - - (700)
Payment of dividends to
shareholders - - - (1,096)
Proceeds from exercise
of stock options - - - 634
Class A shares
repurchased - (134) - (339)
------------------------------------------------
Cash provided by (used
for) financing activities
of continuing operations (95) 5,853 9,977 19,234
Net cash used for
discontinued operations - (181) (62) (70)
Foreign exchange on cash
held in foreign currency (40) 52 218 218
------------------------------------------------
Increase (decrease) in
cash and cash equivalents 914 (658) 2,314 (12,066)
Cash and cash equivalents
at the beginning of the
period 3,488 2,452 2,088 13,860
------------------------------------------------
Cash and cash equivalents
at the end of the period $ 4,402 $ 1,794 $ 4,402 $ 1,794
------------------------------------------------
------------------------------------------------
(in thousands of dollars) (unaudited)
----------------------------------------------------------------------------
September 30 December 31
CONSOLIDATED BALANCE SHEETS 2009 2008
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ASSETS
Current assets
Cash and cash equivalents $ 4,402 $ 2,088
Accounts receivable 8,999 5,691
Inventories 17,209 18,062
Income taxes recoverable 974 10
Future income taxes 6 40
Other current assets 787 988
Promissory note receivable, current 1,433 3,358
----------------------------
33,810 30,237
Property, plant and equipment (net) 155,628 107,849
Construction in progress - 49,149
----------------------------
155,628 156,998
Other assets
Promissory note receivable, long-term 1,317 3,244
Future income taxes 828 605
Other - 1,047
----------------------------
2,145 4,896
----------------------------
$ 191,583 $ 192,131
----------------------------
----------------------------
LIABILITIES
Current liabilities
Bank operating advances $ 720 $ 2,581
Accounts payable and accrued liabilities 13,589 15,146
Income taxes payable 1,608 2,579
Long-term debt, current portion 4,132 4,137
Derivative financial instruments, current 801 834
Asset retirement obligation 90 245
----------------------------
20,940 25,522
Long-term debt, less current portion 37,429 25,521
Derivative financial instruments, non-current 1,197 2,267
Future income taxes 6,698 6,552
Asset retirement obligation 717 496
----------------------------
66,981 60,358
Non-controlling interests 2,522 2,526
SHAREHOLDERS' EQUITY 122,080 129,247
----------------------------
$ 191,583 $ 192,131
----------------------------
----------------------------
(unaudited) (in thousands of dollars)
----------------------------------------------------------------------------
Three months ended Nine months ended
CONSOLIDATED STATEMENTS September 30 September 30
OF RETAINED EARNINGS 2009 2008 2009 2008
----------------------------------------------------------------------------
Balance at the beginning of
the period as previously
reported $ 90,977 $ 109,068 $ 102,489 $ 111,587
Impact of accounting
standard changes under
CICA Handbook Section 3064
applied retroactively - - (2,011) (231)
------------------------------------------------
Balance at the beginning of
the period as restated $ 90,977 $ 109,068 $ 100,478 $ 111,356
(Loss) net income for the
period (77) 2,499 (9,578) 1,433
Premiums paid on repurchase
of capital stock - (74) - (200)
Dividends - - - (1,096)
------------------------------------------------
Balance at the end of the
period $ 90,900 $ 111,493 $ 90,900 $ 111,493
------------------------------------------------
------------------------------------------------
(unaudited) (in thousands of dollars)
----------------------------------------------------------------------------
Three months ended Nine months ended
CONSOLIDATED STATEMENTS OF September 30 September 30
COMPREHENSIVE (LOSS) NET INCOME 2009 2008 2009 2008
----------------------------------------------------------------------------
(Loss) net income for the
period $ (77) $ 2,499 $ (9,578) $ 1,433
Other comprehensive income
(loss)
(Loss) gain on cash flow
hedges, net of taxes - (104) 702 54
Losses on derivatives
designated as cash flow hedges
in prior periods transferred
to net income,
net of taxes, in the current
period - - 1,562 -
------------------------------------------------
Comprehensive (loss) net income
for the period $ (77) $ 2,395 $ (7,314) $ 1,487
------------------------------------------------
------------------------------------------------
Contacts:
Brampton Brick Limited
Ken Mondor
Vice-President, Finance
905-840-1011
905-840-1535 (FAX)
investor.relations@bramptonbrick.com
Copyright 2009, Market Wire, All rights reserved.
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