BRAMPTON, ONTARIO--(Marketwire - Nov. 8, 2012) -
(All amounts are stated in thousands of Canadian dollars, except per share amounts.)
Brampton Brick Limited BBL today reported net income of $2,215, or $0.20 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, 2012 compared to a loss of $5,074, or $0.46 per share, for the third quarter in 2011. The aggregate weighted average number of Class A shares and Class B shares outstanding for the third quarter in 2012 was 10,937,380 and 10,936,554 for the same period in 2011.
DISCUSSION OF OPERATIONS
Three months ended September 30, 2012
For the quarter ended September 30, 2012, revenues were $27,270 compared to $26,307 in 2011. The increase of $963 was primarily due to higher shipments in the Masonry Products business segment.
Cost of sales during the current quarter declined slightly to $19,813, from $20,597 in 2011. Higher levels of plant capacity utilization reduced the average production cost per unit, as fixed plant overhead is apportioned over a larger number of production units. In the third quarter, clay brick shipments declined compared to the third quarter of 2011. In the first half of 2012, commercial and residential construction projects commenced earlier due to favourable weather conditions. This decline was offset, in part, by increases in sales volumes of concrete products.
Yard and delivery expenses during the current quarter also declined compared to 2011 due to operating efficiencies realized from the consolidation of distribution facilities.
Selling and general and administrative expenses during the current quarter in 2012 were comparable to the third quarter of 2011.
The impairment loss recognized on the loan receivable is discussed below under the caption 'Universal Resource Recovery Inc.'
Overall, the revenue increase combined with lower product manufacturing costs in the third quarter contributed to an increase in operating income of $1,366, or 52%, from $2,610 in 2011 to $3,976 in 2012.
Finance costs of $887 for the third quarter of 2012 declined by $496 from the comparable period in 2011. During the quarter ended September 30, 2012, the decrease in interest expense was attributable to lower debt balances outstanding on the Company's term loans and a payment of $500 to redeem part of the subordinated secured debentures. As well, the settlement of the interest rate swap contract on October 3, 2011, resulted in the elimination of the interest rate differential payments.
The Company's share of loss from its joint venture investment is discussed below under the caption 'Universal Resource Recovery Inc.'
The provision for income taxes of $876 and $466 for the third quarter of 2012 and 2011 respectively, relates solely to the pre-tax income of the Company's Canadian operations. The Company did not record a deferred tax asset with respect to the potential future income tax benefit pertaining to the losses incurred by its U.S. operations.
Nine months ended September 30, 2012
For the nine months ended September 30, 2012, the Company recorded net income of $3,193, or $0.29 per share, compared to a net loss of $10,039, or $0.92 loss per share, for the same period in 2011. The aggregate weighted average number of Class A shares and Class B shares outstanding for the nine month period in 2012 was 10,936,831 and 10,936,554 for the same period in 2011.
Revenues for the period ended September 30, 2012 totaled $74,319, an increase of $13,901 from the same period in 2011. Significantly higher sales volumes of masonry products and landscape products, due in part to favourable weather conditions in the first part of this year, together with the continued growth in sales of concrete masonry products, including concrete block, contributed to the increase in revenues.
Cost of sales for the nine months increased by 13% from 2011, compared to a corresponding 23% increase in revenues for the same period. The improvement in gross margin was due to increased production volumes of both masonry and landscape products in 2012 and a number of initiatives undertaken to improve operating efficiencies. Due to the relatively high fixed cost nature of the Company's manufacturing facilities, large fluctuations in production levels have a material impact on per unit manufacturing costs and consequently gross margins.
Selling expenses for the nine months decreased by $98 in 2012 from the comparative period in 2011. These expenses were higher in 2011 due to increased advertising and marketing expenditures incurred to support the introduction of a number of new products and to upgrade the Company's service level capabilities.
General and administrative expenses increased by $112 from the prior year due to non-recurring employment related expenses and an accrual for year-end employee bonuses.
The impairment loss recognized on the loan receivable is discussed below under the caption 'Universal Resource Recovery Inc.'
Operating income of $7,803 reflected the improvement in both revenues and contribution margins for the nine month period ended September 30, 2012. For the comparable period in 2011, operating income was only $891.
Finance costs for the nine month period in 2012 decreased by $813 for the same reasons noted under the discussion for the three months ended September 30, 2012.
The Company's share of loss from its joint venture investment is discussed below under the caption 'Universal Resource Recovery Inc.'
As noted under the discussion for the three months ended September 30, 2012, the Company records a recovery of, or a tax provision for, income taxes with respect to its Canadian operations only. In 2011, a current income tax recovery of $126 was recorded to recognize non-capital losses pertaining to the Company's Canadian operations which were carried back to prior taxation years. The Company has not recorded a deferred tax asset with respect to the potential future income tax benefit pertaining to the losses incurred by its U.S. operations.
On June 20, 2012, Ontario's budget bill 114, approving the provincial general corporate income tax rate freeze at 11.5%, was substantively enacted. Previously enacted corporate income tax rate reductions for 2012 and 2013 to 11.0% and 10.0%, respectively, were repealed. However, there was no change to the current 10% income tax rate on income from manufacturing and processing. Consequently, for the Company's Canadian operations, the combined federal (15%) and provincial (10%) current and deferred income tax rate remains at 25%.
A more detailed discussion with respect to each operating business segment follows:
MASONRY PRODUCTS
For the three month period ended September 30, 2012, the Masonry Products business segment reported operating income of $3,207 on revenues of $18,581 compared to $1,165 on revenues of $17,794 for the same period in 2011.
During the third quarter of 2012, increases in sales volumes of concrete masonry products contributed to the increase in overall segment revenues. The strong growth in clay brick shipments in the first half of the year levelled off during the third quarter of 2012. Greater product acceptance due to various marketing and product promotion initiatives in 2011, translated into higher sales volumes of masonry concrete products, including concrete block.
For the nine month period ended September 30, 2012, this business segment recorded an operating income of $7,100 compared to $728 in 2011. Revenues for the nine month period increased to $54,009 from $43,014, representing a 26% increase over 2011.
For the nine month period in 2012, brick shipments into the Canadian market were higher than last year due in part to favourable weather conditions in both the first and second quarters of this year. In the U.S. market, brick shipments have increased over 2011 levels, although this market continues to be impacted by a historically low level of residential construction activity. In addition, the sale of new products, including concrete block, which was introduced into the Ontario market in April 2011, generated incremental revenues during the nine month period in 2012. The associated increase in production volumes positively affected gross margin and overall operating income for the period.
LANDSCAPE PRODUCTS
For the three month period ended September 30, 2012, the Landscape Products business segment reported operating income of $1,029 on revenues of $8,689 compared to $1,445 on revenues of $8,513 for the same period in 2011. The decrease in operating income is attributable to an increase in plant repair and maintenance expenses and a write-down of certain merchandise inventory.
For the nine month period ended September 30, 2012, this business segment recorded operating income of $1,325 compared to $163 in 2011. Revenues for the nine month period increased to $20,310 from $17,404, or by 17%, over 2011.
The higher sales volume through the first nine months of the year was due to a number of factors. Favourable weather conditions led to an early start to the selling season. The Company benefitted from an improvement in market share, due in part to the introduction of an expanded product portfolio. As well, in 2012, there has been a greater emphasis on sales of higher margin products.
UNIVERSAL RESOURCE RECOVERY INC. ("UNIVERSAL")
Universal is a joint venture which is accounted for by the Company using the equity method of accounting. The carrying value of the investment in Universal on the consolidated balance sheet is increased by advances from the Company and is increased or decreased by the Company's share of profit or loss of Universal. If the Company's share of losses equals or exceeds the carrying value of the investment in Universal, the Company does not recognize further losses, unless it had incurred legal or constructive obligations or made payments on behalf of Universal, of which there were none as at December 31, 2011 and as at September 30, 2012.
Universal suspended its commercial operations in June 2011. As at December 31, 2011, the carrying value of the investment in Universal on the Company's consolidated balance sheet was reduced to zero due to losses incurred from Universal's operations. Consequently, losses totaling $1,791, which exceeded the carrying value of the Universal investment as at December 31, 2011, were not recognized by the Company.
For the third quarter of 2012, Universal continued to incur certain fixed costs, including interest on debt and facility occupancy costs amounting to $215. This increased the total of the unrecognized losses for the nine month period in 2012 to $574. The Company's total share of cumulative unrecognized losses increased to $2,365 as at September 30, 2012.
For the third quarter of 2011, the Company's share of loss from Universal totaled $5,840. This loss comprised of an operational loss of $537 and an impairment charge of $5,303, increasing the share of loss from the Company's investment in Universal for the nine months ended September 30, 2011 to $7,347.
The following table summarizes changes in the Company's carrying value of its investment in Universal, as well as cumulative unrecognized losses for the periods shown below:
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2011 2012
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January 1 July 1 to October 1 to January 1 July 1 to
to June 30 September 30 December 31 to June 30 September 30
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Company's investment in Universal
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Opening
balance $ 5,562 $ 5,930 $ 940 $ - $ -
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Share of
loss (1,507) (5,840) (1,510(i)) - -
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Shareholder
advances 1,875 850 570 - -
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Ending
balance $ 5,930 $ 940 $ - $ - $ -
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Cumulative unrecognized losses in Universal
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Opening
balance $ - $ - $ - $(1,791) $(2,150)
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For the
period - - (1,791) (359) (215)
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Ending
balance $ - $ - $(1,791) $(2,150) $(2,365)
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(i) As at December 31, 2011, the Company's share of loss was limited to
$1,510, as the investment in Universal was reduced to zero.
Effective January 1, 2012, management of Universal committed to an active program to locate a buyer for the sale of assets held in Universal. Although it is expected that the sale will be recognized within one year from the date of classification of assets as 'held for sale', events beyond management's control may cause a delay in the sale of these assets. Management remains committed to its plan to sell the assets in Universal.
For the three months ended September 30, 2012, advances from the Company to Universal relating to the short-term loan receivable amounted to $705, increasing the total advanced to $2,045 for the nine month period ended September 30, 2012. These advances were classified as a short-term loan receivable as management believes the Company will be repaid from the sale proceeds of Universal's assets following the settlement of Universal's senior ranking claims. In relation to this short-term loan receivable, the Company has registered, as security, a mortgage on Universal's property located in Welland, Ontario, behind the bank's security. This short-term loan receivable was used by Universal primarily to fund its scheduled bank debt repayments, which amounted to $1,326 for the nine months ended September 30, 2012, as well as for debt financing expenses and certain fixed facility occupancy costs.
Universal's continuing financial difficulties indicated a potential impairment of the Company's short-term loan receivable. Due to increasing liquidity requirements in Universal as at September 30, 2012, an impairment analysis was performed to ascertain the fair value of this loan. An assessment of the present value of estimated future cash flows concluded that the carrying value exceeded its net recoverable value. Accordingly, for the three month period in 2012, an impairment loss of $260 was recorded by the Company. This increased the total impairment loss to $622 for the nine month period in 2012. This loss reduced the Company's short-term loan receivable to its fair value of $1,423 as at September 30, 2012.
The Company will continue to fund its share of Universal's cash requirements until proceeds from the sale of Universal's assets are realized.
CASH FLOWS
Cash flow provided by operating activities for the period ended September 30, 2012 increased significantly to $12,781 compared to $3,186 in 2011. The increase in cash flow provided by operations was primarily due to the improvement in the operating results in 2012.
Cash utilized for purchases of property, plant and equipment totaled $2,220 for the nine month period in 2012, compared to $2,484 in 2011.
During the second quarter of 2012, sale proceeds relating primarily to the sale of certain obsolete production equipment, which was no longer supported by the Company's operational processes, totaled $461.
Advances to Universal relating to the short-term loan receivable for the nine months ended September 30, 2012, amounted to $2,045. Further discussion is contained above under the caption 'Universal Resource Recovery Inc.'
Cash advances to Universal for the nine month period ended September 30, 2011 totaled $2,725. These advances increased the carrying value of the investment in Universal, as they were utilized by Universal to finance its operational activities and capital expenditures incurred during the start-up period of its waste composting facility located in Welland, Ontario.
On February 26, 2010, the Company completed a subordinated secured debenture financing in the amount of $9,000 at an effective interest rate of 11.89%. A payment of $500 was made to a debenture holder in August 2012, representing a partial redemption of the subordinated secured debentures.
The balance of the subordinated secured debentures in the principal amount of $8,500, were redeemed on October 11, 2012. A 2% early redemption fee on the principal amount was also paid to debenture holders, as the debentures were to have matured in February 2013. The payment of both the principal and early redemption fee was funded from the Company's operating credit facility, bearing interest at prevailing bankers acceptance rates, plus a credit spread of 2.00%. Utilization of the Company's operating line of credit to redeem the debentures is expected to achieve significant savings in interest costs because of the reduction in comparable interest rates.
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.
As at September 30, 2012, bank operating advances were $1,500. This represented a decrease of $3,647 from the amount outstanding at December 31, 2011. The repayment of bank operating advances was funded by cash flows from operations during the nine month period. Trade payables totaled $11,911 at September 30, 2012 compared to $9,026 at December 31, 2011.
The ratio of total liabilities to shareholders' equity attributable to owners of the parent was 0.50:1 at September 30, 2012 compared to 0.51:1 at December 31, 2011. The decrease in this ratio from December 2011 to September 2012 was primarily due to improved operating results, offset in part by the increase in foreign exchange losses due to the strengthening of the Canadian dollar on translation of the financial statements of the Company's U.S. subsidiaries.
As at September 30, 2012, working capital was $8,759, representing a working capital ratio of 1.30:1. Comparable figures for working capital and the working capital ratio at December 31, 2011 were $13,137 and 1.65:1, respectively. The decline from December 31, 2011 is due to the inclusion in current liabilities of the subordinated debentures amounting to $8,451 which were redeemed and paid to debenture holders in October 2012. Excluding the subordinated debentures from current liabilities, the working capital ratio would be 1.81:1. During the month of August 2012, a portion of the subordinated debentures outstanding in the amount of $500 was paid. Cash and cash equivalents totaled $1,247 at September 30, 2012 compared with $1,180 at December 31, 2011.
On October 4, 2011, the Company concluded arrangements from a Canadian bank to provide its operating credit requirements. The new facility provides for borrowings up to $20,000 based on margin formulae for trade receivables and inventories, less priority claims and the mark-to-market exposure on swap contracts, if applicable. It is a demand facility secured primarily by trade receivables and inventories of the Company's Masonry Products and Landscape Products business segments in Canada and the U.S. The agreement also contains certain financial covenants.
On September 7, 2012, the Company issued bankers acceptance notes amounting to $1,500 under its operating credit facility. These notes have a 30-day term and are renewed upon maturity, as required. The rate of interest on the bankers acceptance notes as at September 30, 2012 is based on prevailing bankers acceptance rates plus a credit spread of 2.00%.
As at September 30, 2012, the borrowing limit was $19,066 and the utilization was $1,744, including $1,500 representing bankers acceptance notes and $244 representing outstanding letters of credit.
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.
The Company was in compliance with all financial covenants with respect to its financial arrangements as at September 30, 2012 and anticipates that it will maintain compliance throughout the year.
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 expected repayment of the short-term loan receivable from Universal, 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, 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 2011 annual MD&A included in the Company's 2011 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, 2011), 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 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 near Terre Haute, Indiana. To complement the clay brick product line, the Company also manufactures a range of concrete masonry products, including stone veneer products marketed under the Stoneworks(TM) trade name and concrete brick and block. Concrete interlocking paving stones, retaining walls, garden walls and enviro products are manufactured in Markham, Milton and Brampton, Ontario and Wixom, Michigan. These products are sold to markets in Ontario, Quebec, Michigan, New York, Pennsylvania, Ohio, Kentucky, Illinois and Indiana under the Oaks(TM) trade name. Products are used for residential construction and for industrial, commercial, and institutional building projects. The Company also holds a 50% joint-venture interest in Universal Resource Recovery Inc., a waste composting facility located in Welland, Ontario, which is currently not operating.
Selected Financial Information
(unaudited) (in thousands of Canadian dollars)
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CONDENSED INTERIM CONSOLIDATED BALANCE September 30 December 31
SHEET 2012 2011
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ASSETS
Current assets
Cash and cash equivalents $ 1,247 $ 1,180
Trade and other receivables 13,420 9,964
Inventories 21,142 20,805
Income taxes recoverable 274 744
Loan receivable 1,423 -
Other assets 890 597
---------------- ----------------
38,396 33,290
Non-current assets
Property, plant and equipment 168,319 172,629
---------------- ----------------
Total assets $ 206,715 $ 205,919
---------------- ----------------
---------------- ----------------
LIABILITIES
Current liabilities
Bank operating advances $ 1,500 $ 5,147
Trade payables 11,911 9,026
Income taxes payable 2,379 829
Current portion of debt 11,447 3,091
Decommissioning provisions 78 50
Other liabilities 2,322 2,010
---------------- ----------------
29,637 20,153
---------------- ----------------
---------------- ----------------
Non-current liabilities
Non-current portion of debt 24,542 35,166
Decommissioning provisions 954 950
Deferred income tax liabilities 13,422 13,163
---------------- ----------------
Total liabilities $ 68,555 $ 69,432
---------------- ----------------
---------------- ----------------
EQUITY
Equity attributable to owners of the
parent
Share capital $ 33,711 $ 33,689
Contributed surplus 1,894 1,801
Accumulated other comprehensive loss (3,175) (1,540)
Retained earnings 105,719 102,527
---------------- ----------------
$ 138,149 $ 136,477
---------------- ----------------
---------------- ----------------
Non-controlling interests 11 10
---------------- --------------
Total equity $ 138,160 $ 136,487
---------------- ----------------
---------------- ----------------
Total liabilities and equity $ 206,715 $ 205,919
---------------- ----------------
---------------- ----------------
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(unaudited) (in thousands of Canadian dollars, except per share amounts)
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CONDENSED INTERIM
CONSOLIDATED
STATEMENT OF
COMPREHENSIVE INCOME Three months ended Nine months ended
(LOSS) September 30 September 30
2012 2011 2012 2011
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Revenues $ 27,270 $ 26,307 $ 74,319 $ 60,418
Cost of sales 19,813 20,597 55,943 49,611
Selling expenses 1,660 1,545 5,188 5,286
General and
administrative
expenses 1,592 1,581 4,750 4,638
Loss (gain) on sale
of property, plant
and equipment 1 (62) 56 (63)
Other (income)
expense (32) 36 (43) 55
Impairment loss on
loan receivable 260 - 622 -
------------- ------------- ------------- -------------
23,294 23,697 66,516 59,527
Operating income 3,976 2,610 7,803 891
Finance (expense)
income
Finance costs (887) (1,383) (2,780) (3,593)
Finance income 2 5 6 23
------------- ------------- ------------- -------------
(885) (1,378) (2,774) (3,570)
------------- ------------- ------------- -------------
Share of loss from
investment in
Universal Resource
Recovery Inc. - (5,840) - (7,347)
------------- ------------- ------------- -------------
Income (loss) before
income taxes 3,091 (4,608) 5,029 (10,026)
(Provision for)
recovery of income
taxes
Current (917) (570) (1,575) 126
Deferred 41 104 (261) (139)
------------- ------------- ------------- -------------
(876) (466) (1,836) (13)
------------- ------------- ------------- -------------
Net income (loss) for
the period $ 2,215 $ (5,074) $ 3,193 $ (10,039)
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
Net income (loss)
attributable to:
Owners of the parent $ 2,215 $ (5,074) $ 3,192 $ (10,041)
Non-controlling
interests - - 1 2
------------- ------------- ------------- -------------
Net income (loss) for
the period $ 2,215 $ (5,074) $ 3,193 $ (10,039)
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
Other comprehensive
income (loss)
Foreign currency
translation $ (1,677) $ 4,172 $ (1,635) $ 2,632
------------- ------------- ------------- -------------
Total comprehensive
income (loss) for
the period $ 538 $ (902) $ 1,558 $ (7,407)
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
Total comprehensive
income (loss)
attributable to:
Owners of the parent $ 538 $ (902) $ 1,557 $ (7,409)
Non-controlling
interests - - 1 2
------------- ------------- ------------- -------------
Total comprehensive
income (loss) for
the period $ 538 $ (902) $ 1,558 $ (7,407)
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
Net income (loss) per
Class A and Class B
share $ 0.20 $ (0.46) $ 0.29 $ (0.92)
Weighted average
Class A and Class
Bshares outstanding
(000's) 10,937 10,937 10,937 10,937
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(unaudited) (in thousands of Canadian dollars)
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Nine months ended
September 30
CONDENSED INTERIM CONSOLIDATED STATEMENT OF CASH
FLOWS 2012 2011
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Cash provided by (used for)
Operating activities
Net income (loss) for the period $ 3,193 $ (10,039)
Items not affecting cash and cash equivalents
Depreciation 5,234 5,040
Current income taxes 1,575 (126)
Deferred income taxes 261 139
Loss (gain) on sale of property, plant and
equipment 56 (63)
Unrealized foreign currency exchange loss
(gain) 13 (67)
Impairment loss on loan receivable 622 -
Loss on derivative financial instrument - 27
Net interest expense 2,774 3,548
Share of loss in investment in Universal
Resource Recovery Inc. - 7,347
Other 96 115
----------- ------------
13,824 5,921
Changes in non-cash items
Trade and other receivables (3,486) (6,984)
Inventories (530) 3,148
Other assets (300) (397)
Trade payables 2,516 78
Income tax credits applied 449 11
Other liabilities 351 1,468
----------- ------------
(1,000) (2,676)
Income tax payments (3) -
Payments for decommissioning of assets (40) (59)
----------- ------------
Cash provided by operating activities 12,781 3,186
----------- ------------
Investing activities
Purchase of property, plant and equipment (2,220) (2,484)
Loan receivable (2,045) -
Advances to Universal Resource Recovery Inc. - (2,725)
Proceeds from sale of property, plant and
equipment 509 63
----------- ------------
Cash used for investment activities (3,756) (5,146)
----------- ------------
Financing activities
Decrease (increase) in bank operating advances (3,647) 4,558
Payment of term loans (1,759) (1,730)
Payment of subordinated secured debentures (500) -
Interest paid (2,567) (3,300)
Payments on obligations under finance leases (415) (316)
Payment of dividends by subsidiary to non-
controlling interests (75) -
Proceeds from exercise of stock options 19 -
----------- ------------
Cash used for financing activities (8,944) (788)
----------- ------------
Foreign exchange on cash held in foreign currency (14) 19
Increase (decrease) in cash and cash equivalents 67 (2,729)
Cash and cash equivalents at the beginning of the
period 1,180 5,383
----------- ------------
Cash and cash equivalents at the end of the period $ 1,247 $ 2,654
----------- ------------
----------- ------------
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(unaudited) (in thousands of Canadian dollars)
CONDENSED INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Attributable to owners of the parent
----------------------------------------------------
Accumulated
Other
Share Contributed Comprehensive
Capital Surplus Income (loss)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Balance - January 1,
2011 $ 33,689 $ 1,658 $ (2,616)
(Loss) income for the
period - - -
Other comprehensive
income (net of taxes,
$nil) - - 2,632
----------------------------------------------------
Comprehensive income
(loss) for the period - - 2,632
----------------------------------------------------
Share-based
compensation - 115 -
----------------------------------------------------
Balance - September 30,
2011 $ 33,689 $ 1,773 $ 16
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Attributable to owners
of the parent
----------------------------------------------------
Non-
Retained controlling Total
Earnings Total interests Equity
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Balance - January 1,
2011 $ 112,506 $ 145,237 $ 112 145,349
(Loss) income for the
period (10,041) (10,041) 2 (10,039)
Other comprehensive
income (net of taxes,
$nil) - 2,632 - 2,632
----------------------------------------------------
Comprehensive income
(loss) for the period (10,041) (7,409) 2 (7,407)
----------------------------------------------------
Share-based
compensation - 115 - 115
----------------------------------------------------
Balance - September 30,
2011 $ 102,465 $ 137,943 $ 114 $ 138,057
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Attributable to owners of the parent
-----------------------------------------------------
Accumulated
Other
Share Contributed Comprehensive
Capital Surplus Income (loss)
-----------------------------------------------------
-----------------------------------------------------
Balance - January 1,
2012 $ 33,689 $ 1,801 $ (1,540)
Net income for the
period - - -
Other comprehensive
loss (net of taxes,
$nil) - - (1,635)
-----------------------------------------------------
Comprehensive (loss)
income for the period - - (1,635)
-----------------------------------------------------
Issue of Class A
Subordinate Voting
Shares under the
Employee Stock Option
Incentive Plan 19 - -
-----------------------------------------------------
Transfer to share
capital on exercise of
stock options 3 (3) -
-----------------------------------------------------
Share-based
compensation - 96 -
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Balance - September 30,
2012 $ 33,711 $ 1,894 $ (3,175)
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Attributable to owners
of the parent
-----------------------------------------------------
Non-
Retained controlling Total
Earnings Total interests Equity
-----------------------------------------------------
-----------------------------------------------------
Balance - January 1,
2012 $ 102,527 $ 136,477 $ 10 136,487
Net income for the
period 3,192 3,192 1 3,193
Other comprehensive
loss (net of taxes,
$nil) - (1,635) - (1,635)
-----------------------------------------------------
Comprehensive (loss)
income for the period 3,192 1,557 1 1,558
-----------------------------------------------------
Issue of Class A
Subordinate Voting
Shares under the
Employee Stock Option
Incentive Plan - 19 - 19
-----------------------------------------------------
Transfer to share
capital on exercise of
stock options - - - -
-----------------------------------------------------
Share-based
compensation - 96 - 96
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Balance - September 30,
2012 $ 105,719 $ 138,149 $ 11 $ 138,160
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FOR FURTHER INFORMATION PLEASE CONTACT:
Brampton Brick Limited
Jeffrey G. Kerbel
President and Chief Executive Officer
905-840-1011
905-840-1535 (FAX)
Brampton Brick Limited
Trevor M. Sandler
Vice-President, Finance and Chief Financial Officer
905-840-1011
905-840-1535 (FAX)
investor.relations@bramptonbrick.com
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