(TSX: SCL)
- For the full year 2013, revenue, EBITDA, net income
(attributable to shareholders of the Company) and diluted earnings
per share all reached record levels of $1.8
billion, $391 million,
$220 million, and $3.51 per share respectively.
- Fourth quarter revenue of $409.8
million decreased by $116.1
million, or 22%, from the record $525.8 million reported in the third quarter of
2013 and decreased by 7% from the $439.5
million reported in the fourth quarter a year ago.
- EBITDA in the fourth quarter of 2013 was $57.1 million, reduced by $71.1 million, or 55.5%, from the record level of
the third quarter of 2013 and also lower by $44.8 million, or 44.0%, from the fourth quarter
a year ago. Fourth quarter 2013 EBITDA was negatively affected by
one-time charges of $10.7 million for
restructuring costs and amended executive retirement arrangements
that are reported in SG&A expenses.
- Net income (attributable to shareholders of the Company) in the
fourth quarter was $22.4 million (or
$0.37 per share diluted) compared
with net income of $80.3 million (or
$1.13 per share diluted) in the
fourth quarter of the prior year.
TORONTO, Feb. 27, 2014 /CNW/ - Mr. Bill Buckley, Chief Executive Officer of ShawCor
Ltd. remarked "We are of course very pleased to announce the record
full year 2013 financial results. The Company's performance in 2013
was the result of excellent execution in all of our business
operations and in particular in our Asia
Pacific region where we successfully executed the largest
projects in the Company's history".
Mr. Buckley added "Fourth quarter results did
soften from the exceptional levels seen in the third quarter
following completion of the $400
million Inpex Ichthys gas export pipeline project in
Asia Pacific and as a result of
one-time charges. These charges include restructuring costs
and a loss on the sale of the Brazil joint venture, partially offset by a
gain on the sale of land with a resulting impact on net income
(attributable to the shareholders of the Company) of approximately
$11 million. For 2014, we are
expecting reduced revenue and earnings versus 2013; however, the
Company's financial performance is expected to result in strong
cash flow generation. Furthermore, given the Company's current high
level of outstanding bids, the Company is well positioned to
produce backlog growth, if a significant portion of these bids are
converted to production orders, and to consequently generate strong
revenue and earnings growth in 2015 and beyond."
Selected Financial Highlights
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
thousands of Canadian dollars, except per share
amounts and percentages) |
|
|
Three Months ended
December 31, |
|
|
Twelve Months ended
December 31, |
|
|
|
2013 |
|
|
2012(c) |
|
|
2013 |
|
|
2012(c) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
409,759 |
|
$ |
439,499 |
|
$ |
1,847,549 |
|
$ |
1,469,187 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
162,645 |
|
|
181,483 |
|
|
788,603 |
|
|
574,183 |
|
Gross profit % |
|
|
39.7% |
|
|
41.3% |
|
|
42.7% |
|
|
39.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA(a) |
|
|
57,139 |
|
|
101,891 |
|
|
391,223 |
|
|
265,254 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations |
|
|
47,236 |
|
|
92,962 |
|
|
319,774 |
|
|
211,053 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income for the
period(b) |
|
$ |
22,397 |
|
$ |
80,275 |
|
$ |
219,862 |
|
$ |
178,310 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.37 |
|
$ |
1.14 |
|
$ |
3.55 |
|
$ |
2.53 |
|
|
Fully diluted |
|
$ |
0.37 |
|
$ |
1.13 |
|
$ |
3.51 |
|
$ |
2.50 |
(a) |
EBITDA is a non-GAAP measure calculated by adding back to net
income the sum of net finance costs, income taxes,
depreciation/amortization of property, plant and equipment and
intangible assets, gains/losses from assets sold or held for sale,
and impairment of assets. EBITDA does not have a standardized
meaning prescribed by GAAP and is not necessarily comparable to
similar measures provided by other companies. EBITDA is used
by many analysts in the oil and gas industry as one of several
important analytical tools. |
(b) |
Attributable to shareholders of the Company, excluding
non-controlling interests. |
(c) |
Restated due to the adoption of certain new IFRS standards that
became effective as at January 1, 2013, but were implemented
retrospectively to January 1, 2012. |
1.0 KEY
DEVELOPMENTS
Sale of Brazilian Joint Venture Interest
On December 4 ,
2013, the Company announced an agreement for the sale, subject to
regulatory approval, of its Socotherm division's joint venture
interest in Socotherm Brasil to its joint venture partner, Tenaris.
Socotherm Brasil operates a pipe coating facility which is managed
by Tenaris and which is located at the Confab welded pipe mill in
Pindamonhangaba, Brazil.
From the sale, ShawCor expects to realize net
proceeds of approximately US$28.5
million, with a further potential earn out based on future
performance. In the fourth quarter, the Company recorded a
net loss of $8.3 million from the
Brazilian Joint Venture, comprised of a $2.8
million loss on investment in joint venture, a $0.9 million loss on assets held for sale,
$2.7 million in income taxes on the
sale, and a $1.9 million loss
included in non-controlling interest. This non-controlling
interest expense represents the minority interest share of the gain
reported at the Socotherm subsidiary level, notwithstanding the
fact that there is a loss on the sale at a ShawCor consolidated
level.
The sale of Socotherm's joint venture interest
in Socotherm Brasil is consistent with ShawCor's strategy to focus
its pipe coating investments on operations it manages and
controls. Following the sale, ShawCor will continue to serve
Tenaris' global pipe coating needs and the Brazilian pipe coating
market from its global pipe coating plant network.
Development Agreement with Vintri
Technologies Inc.
On December 20,
2013, ShawCor entered into a development agreement with
Calgary, Alberta based Vintri
Technologies Inc. ("Vintri"), whereby Vintri will develop for
ShawCor's Bredero Shaw division, a cloud based plant management and
shop floor data collection system providing accurate asset
identification and traceability. In consideration for the
development agreement, ShawCor has been provided a minority equity
interest in Vintri for nil consideration.
Equity investment in ZEDI Inc.
On February 20,
2014, ShawCor completed an equity investment in Zedi Inc.
("Zedi"), a Calgary, Alberta based
company engaged in end-to-end solutions for production operations
management in the oil and gas industry. Zedi has successfully
developed and deployed remote field monitoring and related data
management solutions for the optimization of oil and gas well
production and has recently completed a management led buyout
through an Alberta court and
shareholder approved plan of arrangement. ShawCor's equity
investment in Zedi will consist of a 25% common share interest plus
convertible preferred shares for a total investment of
approximately $24 million, which will
be accounted for using equity accounting. ShawCor and Zedi
have also entered into a joint development agreement to work
together to develop monitoring and connectivity solutions for
pipeline and OCTG applications.
1.1 OUTLOOK
Following the record results produced by ShawCor
during the full year 2013, the Company expects revenue and earnings
to decrease in 2014 in comparison with the full year of 2013. This
expected reduction in activity is the result of the fact that in
2013, revenue from the Company's Asia
Pacific region has been enhanced by the execution of the
$400 million Inpex Ichthys gas export
pipeline project, the largest single project in the Company's
history and a project size that will not be replicated in 2014.
Further detail on the outlook for the Pipeline and Pipe Services
segment by region and the Petrochemical and Industrial segment is
set out below:
Pipeline and Pipe Services Segment -
North America
In 2014, ShawCor's North American Pipeline
segment businesses are expected to generate solid revenue growth
over 2013 levels. Pipe coating volumes will benefit from a full
year of production at the Socotherm Gulf of Mexico plant where the
order backlog for deepwater insulation coating projects exceeds
$60 million. North American land pipe
coating activity is expected to continue at strong levels,
consistent with the levels produced in 2013. In other pipeline
segment businesses in North
America, the prospects for growth in 2014 are quite
compelling. Continued shale oil and gas developments are creating
growing market demands for the Flexpipe composite pipe and Guardian
OCTG pipe inspection and refurbishment businesses while the
Company's introduction of new real-time radiography technology to
the USA land pipeline market is
enabling market share gains in pipeline girth weld inspection.
Pipeline and Pipe Services Segment -
Latin America
The Company believes that revenue from
Latin America pipe coating
operations has the potential for modest growth in 2014 as a result
of increased offshore and large diameter gas transmission pipeline
opportunities in Mexico, the
launch of insulation coating production at the Socotherm Argentina
operation, and an expected increase in revenue in Brazil, where production will commence in the
first quarter 2014 for the deepwater insulation coating for
flowlines and risers for Petrobras' Sapinhoa field in the Santos
basin. These sources of revenue growth will be partially offset by
the fact that 2013 Latin America revenue had included approximately
$55 million from the Technip project
that was executed through the deployment of two portable concrete
weight coating plants in Trinidad.
Pipeline and Pipe Services Segment -
EMAR
The Company's Europe, Middle
East, Africa, Russia ("EMAR") region expects to begin to
generate significant revenue growth in 2014. In addition to a
continuation of strong project revenues from the pipe coating
facilities in Orkanger, Norway and
Ras Al Khaimah, UAE, revenue gains
are expected in 2014 as the Leith,
Scotland facility executes the
$30 million Edvard Grieg project and
Socotherm ramps up production at the Pozzallo, Sicily pipe coating facility to execute a
large deepwater insulation project for a new West African oil field
development. The Company is also currently bidding on several very
large projects in the EMAR region that could produce revenues in
excess of $300 million that could
potentially start production by the fourth quarter of 2014 and thus
contribute to revenue growth in the 2015 to 2016 period.
Pipeline and Pipe Services Segment -
Asia Pacific
In 2013, the Company generated record revenues
in the Asia Pacific region as a
result of the execution of the Inpex Ichthys gas export pipeline,
Chevron Wheatstone export pipeline and flowlines, and Apache
Julimar flowlines projects. These projects produced over
$510 million in revenue in 2013 and
contributed to a level of activity that will decline by at least
50% in 2014. Beyond 2014, the Company remains confident that the
Asia Pacific region will continue
to provide compelling opportunities, particularly with the
emergence of deepwater oil and gas developments that will require
the Company's operational capability and unique product
technologies.
Petrochemical and Industrial
Segment
ShawCor's Petrochemical and Industrial segment
businesses are significantly exposed to demand in the North
American and European automotive, industrial and nuclear
refurbishment markets. During 2013, demand in the global industrial
markets served by the Petrochemical and Industrial segment
businesses has been stable but the Company has achieved gains in
market share with the result that revenue increased by
approximately 10% year over year. Similar revenue growth in 2014
should be possible provided market conditions remain healthy.
Operating income growth should exceed revenue growth due to the
one-time charges of $3.2 million
incurred in 2013 for staff reductions and other costs related to
the completion of the new facility in Germany for the segment's heat shrink tubular
business. This new facility should also contribute to the segment's
earnings growth potential as a result of the improved operational
efficiencies associated with the consolidation of production
activities in one facility and the expected improvements in
production throughput.
Order Backlog
The Company's order backlog consists of firm
customer orders only and represents the revenue the Company expects
to realize on booked orders over the succeeding twelve months. The
Company reports the twelve month billable backlog because it
provides a leading indicator of significant changes in consolidated
revenue. The order backlog at December 31,
2013 decreased to $617 million
from $646 million at September 30, 2013 and versus $850 million at the end of 2012. The decline in
backlog from the start of 2013 has resulted primarily from the
execution during the year of the $400
million Inpex Ichthys gas export pipeline project. Although
the order backlog may continue to decline over the next few
quarters, the Company's bidding activity remains very high with
outstanding bids currently exceeding $900
million dollars. The bidding activity is also very well
diversified across all of the Company's regions. If a significant
portion of these bids are translated into production orders during
2014, the backlog will increase over the course of the year, which
would provide a strong indication for growth in revenue and
earnings in 2015 and beyond.
2.0 CONSOLIDATED INFORMATION
AND RESULTS FROM OPERATIONS
2.1 Revenue
The following table sets forth revenue by
reportable operating segment for the following periods:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands of Canadian dollars) |
|
Three Months ended |
|
Twelve Months ended |
|
|
December 31,
2013 |
|
September 30,
2013 |
|
December 31,
2012(a) |
|
December 31,
2013 |
|
December 31,
2012(a) |
Pipeline and Pipe Services |
|
$ |
370,477 |
|
$ |
483,174 |
|
$ |
406,572 |
|
$ |
1,687,768 |
|
$ |
1,324,215 |
Petrochemical and Industrial |
|
|
40,409 |
|
|
43,117 |
|
|
33,413 |
|
|
162,449 |
|
|
147,068 |
Elimination |
|
|
(1,127) |
|
|
(443) |
|
|
(486) |
|
|
(2,668) |
|
|
(2,096) |
|
|
$ |
409,759 |
|
$ |
525,848 |
|
$ |
439,499 |
|
$ |
1,847,549 |
|
$ |
1,469,187 |
(a) |
Revenue for the three-month and twelve-month periods ending
December 31, 2012 has been restated due to the adoption of certain
new IFRS standards that became effective as at January 1, 2013, but
were implemented retrospectively to January 1, 2012. |
Fourth Quarter 2013 versus Third Quarter
2013
Consolidated revenue decreased 22%, or
$116.1 million, from $525.8 million during the third quarter of 2013
to $409.8 million during the fourth
quarter of 2013, due to a decrease of $112.7
million in the Pipeline and Pipe Services segment and a
decrease of $2.7 million in the
Petrochemical and Industrial segment.
In the Pipeline and Pipe Services segment,
revenue decreased 23%, or $112.7
million, from $483.2 million
in the third quarter of 2013 to $370.4
million in the fourth quarter of 2013, due to a decrease of
44 %, or $91.0 million, in
Asia Pacific and a decrease of
47%, or $20.0 million, in
Latin America. See section 3.1
- Pipeline and Pipe Services segment for additional
disclosure with respect to the change in revenue in the Pipeline
and Pipe Services segment.
In the Petrochemical and Industrial segment,
revenue was lower by $2.7 million, or
6%, in the fourth quarter of 2013, compared to the third quarter of
2013, mainly due to a decrease in revenue of $2.7 million, or 10%, in the North America region. See section 3.2 -
Petrochemical and Industrial segment for additional
disclosure with respect to the change in revenue in the
Petrochemical and Industrial segment.
Fourth Quarter 2013 versus Fourth Quarter
2012
Consolidated revenue decreased by $29.7 million, or 7%, from $439.5 million during the fourth quarter of 2012,
to $409.8 million during fourth
quarter of 2013, due to a decrease of $36.1
million in the Pipeline and Pipe Services segment, partially
offset by an increase of $7.0 million
in the Petrochemical and Industrial segment.
In the Pipeline and Pipe Services segment,
revenue in the fourth quarter of 2013 was $36.1 million, or 9%, lower than in the fourth
quarter of 2012, due to decreased activity in Latin America, North
America and Asia Pacific,
partially offset by higher revenue in EMAR. See section 3.1 -
Pipeline and Pipe Services segment for additional disclosure
with respect to the change in revenue in the Pipeline and Pipe
Services segment.
In the Petrochemical and Industrial segment,
revenue increased by $7.0 million, or
21%, during the fourth quarter of 2013 compared to the fourth
quarter of 2012, due to higher activity levels in all three
regions. See section 3.2 - Petrochemical and Industrial
segment for additional disclosure with respect to the change in
revenue in the Petrochemical and Industrial segment.
Twelve Months ended December 31, 2013 versus Twelve Months ended
December 31, 2012
Consolidated revenue increased by 26%, or
$378.4 million, from $1,469.2 million for the twelve month period
ended December 31, 2012 to
$1,847.6 million for the twelve month
period ended December 31, 2013, due
to increases of $363.5 million in the
Pipeline and Pipe Services segment and $15.4
million in the Petrochemical and Industrial segment.
Revenue for the Pipeline and Pipe Services
segment in 2013 was $1,687.8 million,
$363.6 million, or 27%, higher than
in 2012, primarily due to higher revenue in Asia Pacific and North America, partially offset by lower
activity in EMAR and Latin
America. See section 3.1 - Pipeline and Pipe Services
segment for additional disclosure with respect to the change in
revenue in the Pipeline and Pipe Services segment.
Revenue for the Petrochemical and Industrial
segment increased by $15.4 million,
or 10%, in 2013 compared to 2012, primarily due to higher activity
levels in all regions. See section 3.2 - Petrochemical and
Industrial segment for additional disclosure with respect to
the change in revenue in the Petrochemical and Industrial
segment.
2.2 Income from Operations
The following table sets forth income from
operations ("Operating Income") and operating margin for the
following periods:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands of Canadian dollars) |
Three Months ended |
|
Twelve Months ended |
|
|
December
31,
2013 |
|
September 30,
2013 |
|
December
31,
2012(a) |
|
December 31,
2013 |
|
|
December 31,
2012(a) |
Operating Income |
|
$ |
47,236 |
|
$ |
104,877 |
|
$ |
92,962 |
|
$ |
|
319,774 |
|
$ |
211,053 |
Operating
Margin(b) |
|
|
11.6% |
|
|
19.9% |
|
|
21.2% |
|
|
|
17.3% |
|
|
14.4% |
(a) |
Operating Income for the three-month and twelve-month periods
endingDecember 31, 2012 has been restated due to the adoption of
certain new IFRS standards that became effective as at January 1,
2013, but were implemented retrospectively to January 1, 2012. |
(b) |
Operating margin is defined as Operating Income divided by
revenue. |
|
|
Fourth Quarter 2013 versus Third Quarter
2013
Operating Income decreased by $57.6 million, from $104.9
million during the third quarter of 2013 to $47.2 million during the fourth quarter of 2013.
Operating Income was impacted by a decrease in gross profit of
$66.4 million and an increase
in SG&A expenses of $6.8 million.
This was partially offset by decreases in research and development
expenses of $0.9 million,
amortization of property, plant, equipment and intangible assets of
$1.4 million, an increase in net
foreign exchange gain of $8.0 million
and a gain on sale of land of $5.2
million.
The decrease in gross profit resulted from a 3.9
percentage point decrease in the gross margin from the third
quarter of 2013 and the lower revenue, as explained above.The
decrease in the gross margin percentage was primarily due to
unfavourable product and project mix and lower facility utilization
and absorption of overheads, as a result of the reduction in
revenue in the Pipeline and Pipe Services segment's Asia Pacific region.
SG&A expenses increased by $6.8 million, from $96.3
million in the third quarter of 2013 to $103.0 million in the fourth quarter of 2013,
primarily due to one-time restructuring costs and amended executive
retirement arrangements of $10.7
million, partially offset by lower management incentive
compensation expenses of $3.6
million. The one-time restructuring costs and amended
executive retirement arrangements were primarily related to
reorganizing the organizational structure to more effectively
manage the Company's business and were comprised of charges of
$2.0 million for the Pipeline and
Pipe Services segment, $3.2 million
for the Petrochemical and Industrial segment and $5.5 million for Finance and Corporate.
Fourth Quarter 2013 versus Fourth Quarter
2012
Operating Income decreased by $45.7 million, from $93.0
million in the fourth quarter of 2012 to $47.2 million during the fourth quarter of 2013.
Operating Income was impacted by a decrease in gross profit of
$18.8 million, increases in SG&A
expenses of $20.0 million, research
and development expenses of $1.3
million, amortization of property, plant, equipment and
intangible assets of $3.9 million,
loss on assets held for sale of $1.1
million and a lower gain on sale of land of $6.9 million. This was partially offset by an
increase in net foreign exchange gain of $5.5 million and a charge for impairment of
property, plant and equipment of $0.8
million recorded in the fourth quarter of 2012.
The decrease in gross profit resulted from lower
revenue of $29.7 million and a 1.6
percentage point decrease in gross margin attributable to
unfavourable product and project mix and lower facility utilization
and absorption of overheads, particularly in the Pipeline and Pipe
Services segment's Asia Pacific
and Latin America regions.
SG&A expenses increased by $20.0 million compared with the fourth quarter of
2012, primarily as a result of higher SG&A costs of
$5.8 million following the
acquisition and full consolidation of Socotherm and one-time
restructuring costs and amended executive retirement arrangements
of $10.7 million, as explained above.
In addition, building rental and equipment costs increased by
$2.7 million, legal and professional
consulting fees were higher by $3.2
million and transportation related expenses increased
$1.2 million, partially offset by
one-time strategic review expenses of $4.0
million incurred in the fourth quarter of 2012.
Twelve Months ended December 31, 2013 versus Twelve Months ended
December 31, 2012
Operating Income increased by $108.7 million from the twelve month period ended
December 31, 2012 to $319.8 million for the full year 2013. The
increase in Operating Income resulted from a year over year
increase in gross profit of $214.4
million, an increase in net foreign exchange gain of
$4.8 million and an impairment charge
of $4.7 million incurred in 2012.
This was partially offset by increases in SG&A expenses of
$76.6 million, research and
development expenses of $3.4 million,
amortization of property, plant, equipment and intangible assets of
$24.5 million, a lower gain on sale
of land of $6.9 million and a loss on
assets held for sale of $3.7
million.
The increase in gross profit resulted from
higher revenue of $378.4 million and
a 3.6 percentage point improvement in gross margin attributable to
favourable project mix and better facility utilization and
absorption of overheads, particularly in the Pipeline and Pipe
Services segment's Asia Pacific
region.
SG&A expenses increased by $76.6 million in 2013 compared to 2012, primarily
as a result of higher SG&A costs of $25.3 million following the acquisition and full
consolidation of Socotherm, one-time restructuring costs and
amended executive retirement arrangements of $10.7 million recorded in the fourth quarter of
2013, as explained above, and $13.6
million incurred to complete the Company's Plan of
Arrangement on March 20, 2013 and
related expenses associated with amended executive retirement
arrangements, recorded in the first quarter of 2013. In addition,
personnel related costs and management incentive compensation
expenses were higher by $12.6
million, building rental, insurance and equipment costs were
higher by $5.4 million, legal and
professional consulting fees were higher by $6.9 million and provisions for bad debts,
warranty and other items increased by $6.0
million, partially offset by one-time strategic review
expenses of $4.0 million incurred in
the fourth quarter of 2012.
2.3 Finance Costs, net
The following table sets forth the components of
finance costs, net for the following periods:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands of Canadian dollars) |
|
Three Months ended |
|
Twelve Months ended |
|
|
December
31,
2013 |
|
|
September 30,
2013 |
|
|
December 31,
2012(a) |
|
|
December 31,
2013 |
|
|
December 31,
2012(a) |
Interest income |
|
$ |
(452) |
|
$ |
- |
|
$ |
(736) |
|
$ |
(1,156) |
|
$ |
(2,767) |
Interest expense, other |
|
|
2,559 |
|
|
1,252 |
|
|
116 |
|
|
5,949 |
|
|
1,407 |
Interest expense on long-term debt |
|
|
3,280 |
|
|
3,275 |
|
|
- |
|
|
10,119 |
|
|
- |
Finance costs (income), net |
|
$ |
5,387 |
|
$ |
4,527 |
|
$ |
(620) |
|
$ |
14,912 |
|
$ |
(1,360) |
(a) |
Finance costs (income) for the three-month and twelve month
periods ending December 31, 2012 has been restated due to the
adoption of certain new IFRS standards that became effective as at
January 1, 2013, but were implemented retrospectively to January 1,
2012. |
Fourth Quarter 2013 versus Third Quarter
2013
In the fourth quarter of 2013, net finance cost
was $5.4 million, compared to a net
finance cost of $4.5 million during
the third quarter of 2013, as a result of higher other interest
expenses on bank loans and overdrafts, partially offset by higher
interest income on short-term deposits.
Fourth Quarter 2013 versus Fourth Quarter
2012
In the fourth quarter of 2013, net finance cost
was $5.4 million, compared to a net
finance income of $0.6 million during
the fourth quarter of 2012. The increase in net finance costs was a
result of interest on the Senior Notes issued on March 20, 2013, higher other interest expenses on
bank loans and overdrafts and lower interest income on short-term
deposits.
Twelve Months ended December 31, 2013 versus Twelve Months ended
December 31, 2012
In the twelve months ended December 31, 2013, net finance cost was
$14.9 million, compared to a net
finance income of $1.4 million during
the comparable period of 2012, as a result of interest on long term
senior notes issued on March 20,
2013, higher other interest expenses on bank loans and
overdrafts and lower interest income on short-term deposits.
2.4 Income Taxes
The following table sets forth the income tax
expenses for the following periods:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands of Canadian dollars) |
|
Three Months ended |
Twelve Months ended |
|
|
December
31,
2013 |
|
September 30,
2013 |
|
December 31,
2012(a) |
|
December
31,
2013 |
|
December 31,
2012(a) |
Income tax expenses |
|
$ |
10,278 |
|
$ |
29,386 |
|
$ |
18,392 |
|
$ |
78,402 |
|
$ |
43,783 |
(a) Income tax
expenses for the three-month and twelve-month periods ending
December 31, 2012 has been restated
due to the adoption of certain new IFRS standards that became
effective as at January 1, 2013, but
were implemented retrospectively to January
1, 2012.
Fourth Quarter 2013 versus Third Quarter
2013
The Company recorded an income tax expense of
$10.3 million (28% of income before
income taxes) in the fourth quarter of 2013, compared to an income
tax expense of $29.4 million (29% of
income before income taxes) in the third quarter of 2013. The
effective tax rate in the fourth quarter of 2013 was higher than
the Company's expected effective income tax rate of 27%, primarily
due to higher losses on investment in joint ventures, which reduced
income before income taxes. The Company's tax rate in the third
quarter was slightly higher than expectations primarily due to the
incurrence of tax losses in jurisdictions where the Company was
unable to record a tax benefit in the quarter.
Fourth Quarter 2013 versus Fourth Quarter
2012
The Company recorded an income tax expense of
$10.3 million (28% of income before
income taxes) in the fourth quarter of 2013, compared to an income
tax expense of $18.4 million (19% of
income before income taxes) in the fourth quarter of 2012. The
effective tax rate in the fourth quarter of 2013 was higher than
the Company's expected effective income tax rate of 27%, primarily
due to higher losses on investment in joint ventures, which reduced
income before income taxes. The Company's tax rate in the fourth
quarter of 2012 was lower than the expected rate of 27% primarily
due to the fact that a significant portion of the Company's income
was earned in the Trinidad Free Zone, Asia Pacific and the Middle East and other jurisdictions where the
expected tax rate is 25% or less.
Twelve Months ended December 31, 2013 versus Twelve Months ended
December 31, 2012
The Company recorded an income tax expense of
$78.4 million (26% of income before
income taxes) during the twelve-month period ended December 31, 2013, compared to an income tax
expense of $43.8 million (20% of
income before income taxes) during the twelve-month period ended
December 31, 2012. The effective
income tax rate for the twelve months ending December 31, 2013 is lower than the expected
income tax rate of 27% due to income being earned in jurisdictions
were the tax rate is 25% or less, with this benefit partially
offset by the incurrence of tax losses in jurisdictions where the
Company was unable to record a tax benefit during the year. In
2012, the low tax rate was due to a higher proportion of the
Company's taxable income having been earned in the Trinidad Free
Zone, Asia Pacific, the
Middle East and other
jurisdictions where the tax rate is 25% or less.
2.5 Foreign Exchange Impact
The following table sets forth the significant
currencies in which the Company operates and the average foreign
exchange rates for these currencies versus Canadian dollars, for
the following periods:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
ended
December 31, |
|
Twelve Months
ended
December 31, |
|
|
|
2013 |
|
|
2012 |
|
|
2013 |
|
|
2012 |
U.S. dollar |
|
|
1.051 |
|
|
0.991 |
|
|
1.032 |
|
|
1.003 |
Euro |
|
|
1.436 |
|
|
1.290 |
|
|
1.373 |
|
|
1.292 |
British Pounds |
|
|
1.709 |
|
|
1.599 |
|
|
1.620 |
|
|
1.588 |
The following table sets forth the impact on
revenue, income from operations and net income, compared with the
prior quarter and the prior year period, as a result of foreign
exchange fluctuations on the translation of foreign currency
operations:
|
|
|
|
|
|
|
|
|
|
|
(in thousands of Canadian
dollars) |
|
|
Q4-2013
Versus
Q3-2013 |
|
|
Q4-2013
versus
Q4-2012 |
|
|
Q4-2013
YTD
versus
Q4-2012
YTD |
Revenue |
|
$ |
5,435 |
|
|
17,220 |
|
|
41,839 |
|
Income from operations |
|
|
629 |
|
|
3,218 |
|
|
13,229 |
|
Net income |
|
$ |
998 |
|
|
4,482 |
|
|
11,963 |
In addition to the translation impact noted
above, the Company recorded a foreign exchange gain of $6.3 million in the fourth quarter of 2013,
compared to a gain of $0.8 million
for the comparable period in the prior year, as a result of the
impact of changes in foreign exchange rates on monetary assets and
liabilities and short term foreign currency intercompany loans
within the group, net of hedging activities.
2.6 Net Income (attributable to
shareholders of the Company)
Fourth Quarter 2013 versus Third Quarter
2013
Net income decreased by $50.6 million, from $73.0
million during the third quarter of 2013 to $22.4 million during the fourth quarter of 2013,
mainly due to the lower Operating Income in the fourth quarter of
2013, as explained in section 2.2 above and a higher loss on
investment in joint ventures of $6.8
million. This was partially offset by lower income tax
expense of $19.1 million.
Fourth Quarter 2013 versus Fourth Quarter
2012
Net income decreased by $57.9 million, from $80.3
million during the fourth quarter of 2012 to $22.4 million during the fourth quarter of 2013,
mainly due to lower Operating Income in the fourth quarter of 2013,
as explained in section 2.2 above, income from investment in
associate recorded in the fourth quarter of 2012 of $6.0 million, a higher net loss on investment in
joint ventures of $4.2 million and
higher net finance costs of $$6.0 million. This was partially
offset by a decrease in income tax expenses of $8.1 million.
Twelve Months ended December 31, 2013 versus Twelve Months ended
December 31, 2012
Net income increased by $41.6 million, from $178.3
million during the twelve-month period ended December 31, 2012 to $219.9 million during the twelve-month period
ended December 31, 2013, mainly due
to higher Operating Income of $108.7
million in 2013, as explained in section 2.2 above.
This was partially offset by increases in net finance costs of
$16.3 million, income tax expense of
$34.6 million and income on
investment in associate of $8.7
million recorded in 2012.
3.0 SEGMENT
INFORMATION
3.1 Pipeline and Pipe Services segment
The following table sets forth, by geographic
location, the Revenue, Operating Income and operating margin for
the Pipeline and Pipe Services segment for the following
periods:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands of Canadian dollars,
except Operating Margin) |
|
Three Months ended |
|
Twelve Months ended |
|
|
December 31,
2013 |
|
September 30,
2013 |
|
December 31,
2012(a) |
|
December 31,
2013 |
|
December 31,
2012(a) |
North America |
|
$ |
182,549 |
|
$ |
181,494 |
|
$ |
141,105 |
|
$ |
671,317 |
|
$ |
604,106 |
Latin America |
|
|
22,132 |
|
|
42,105 |
|
|
69,335 |
|
|
161,627 |
|
|
164,649 |
EMAR |
|
|
51,418 |
|
|
54,180 |
|
|
44,667 |
|
|
191,814 |
|
|
221,471 |
Asia Pacific |
|
|
114,378 |
|
|
205,395 |
|
|
151,465 |
|
|
663,010 |
|
|
333,989 |
Total Revenue |
|
$ |
370,477 |
|
$ |
483,174 |
|
$ |
406,572 |
|
$ |
1,687,768 |
|
$ |
1,324,215 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income |
|
$ |
58,151 |
|
$ |
111,800 |
|
|
101,368 |
|
$ |
365,122 |
|
$ |
236,689 |
|
Operating Margin |
|
|
15.7% |
|
|
23.1% |
|
|
24.9% |
|
|
21.6% |
|
|
17.9% |
(a) |
Restated due to the adoption of certain new IFRS standards that
became effective as at January 1, 2013, but were implemented
retrospectively to January 1, 2012. |
Fourth Quarter 2013 versus Third Quarter
2013
Fourth quarter revenue decreased by $112.7 million to $370.5
million, from $483.2 million
in the third quarter of 2013. This was driven by decreased activity
levels in Asia Pacific,
Latin America and EMAR, partially
offset by North America:
- In North America, revenue
increased by $1.0 million, or 1%, as
a result of increased activity from Socotherm's Gulf of Mexico operation, higher pipe weld
inspection service revenue in the USA and increased tubular management service
revenue in Canada, partially
offset by lower activity levels in large diameter pipe coating in
both Canada and the USA.
- In Latin America, revenue
decreased by $20.0 million, or 47%,
primarily as a result of decreased activity from the Technip
project in Trinidad and decreased
volumes in Socotherm Argentina.
- EMAR revenue decreased by $2.8
million, or 5%, primarily due to decreased activity at the
Socotherm pipe coating facility in Adria, Italy, partially offset by higher activity at
Leith, Scotland and in Orkanger, Norway.
- In Asia Pacific, revenue
decreased $91.0 million, or 44%,
mainly due to decreased volumes on the Inpex Ichthys and Apache
Julimar projects in Kabil, Indonesia and the Chevron Wheatstone flowlines
project in Kuantan, Malaysia.
In the fourth quarter of 2013, Operating Income
was $58.2 million compared to
$111.8 million in the third quarter
of 2013, a decrease of $53.6 million,
or 48%. The decrease in Operating Income was due to a reduction in
gross profit of $64.0 million due to
the decrease in revenue of $112.7
million as explained above, and a 3.7 percentage point
decrease in the gross margin due to unfavourable product and
project mix and lower facilities' utilization and the absorption of
overheads, particularly at the Company's two pipe coating
facilities in Asia Pacific. In
addition to the decrease in gross profit, SG&A expenses were
also higher as explained in section 2.2 above.
Fourth Quarter 2013 versus Fourth Quarter
2012
Revenue was $370.5
million in the fourth quarter of 2013, a decrease of
$36.1 million, or 9%, from
$406.6 million in the comparable
period of 2012. Revenues in Asia
Pacific and Latin America
were lower, partially offset by increased activity in North America and EMAR:
- In North America, revenue
increased by $41.4 million, or 29%,
due to the acquisition of Socotherm Gulf of Mexico, increased
tubular management services in Canada, higher flexible composite pipe volumes
in both Canada and the
USA and increased pipe weld
inspection service revenue in the USA.
- Latin America revenue
decreased by $47.2 million, or 68%,
due to lower activity levels in Mexico and on the Technip project in
Trinidad.
- In EMAR, revenue increased by $6.8
million, or 15%, primarily due to higher activity levels at
the Company's pipe coating facilities in Orkanger, Norway and Socotherm, Italy, partially offset by reduced volumes
from Ras Al Khaimah ("RAK"), UAE
and Leith, Scotland.
- Asia Pacific revenue decreased
by $37.1 million, or 25%, due to the
lower volumes associated with the Chevron Wheatstone project in
Kabil, Indonesia and Kuantan,
Malaysia.
In the fourth quarter of 2013, Operating Income
was $58.2 million compared to
$101.4 million in the fourth
quarter of 2012, a decrease of $43.2
million, or 43%, due to a reduction in gross profit of
$19.7 million as a result of the
decrease in revenue of $36.1 million,
as explained above, and a 1.2 percentage point decrease in gross
margin due to unfavourable project mix, lower facilities'
utilization and the absorption of overheads, particularly at the
Company's two pipe coating facilities in Asia Pacific. In addition to the decrease in
gross profit, SG&A expenses and amortization of property,
plant, equipment and intangibles were also higher combined with a
lower gain on sale of land, as explained in section 2.2 above.
Twelve Months ended December 31, 2013 versus Twelve Months ended
December 31, 2012
For the twelve month period ended December 31, 2013, revenue in the Pipeline and
Pipe Services segment was $1,687.8
million, an increase of $363.6
million, or 28%, from $1,324.2
million in the comparable period in the prior year. Activity
levels in Asia Pacific and
North America were higher in 2013
compared to 2012, partially offset by a decrease in EMAR and
Latin America revenue:
- In North America, revenue
increased by $67.2 million, or 11%,
primarily due to increased flexible composite pipe revenue in the
USA, the acquisition of Socotherm
Gulf of Mexico, increased pipe weld inspection service revenue in
the USA and higher large diameter
project revenues in Canada,
partially offset by lower pipe coating activity in the USA.
- In Latin America, revenue was
lower by $3.0 million, or 2%, mainly
due to lower activity levels in Mexico and Brazil, partially offset by the full year
inclusion of Socotherm Argentina.
- In EMAR, revenue decreased by $29.7
million, or 13%, primarily due to decreased pipe coating
activity levels in RAK and Leith,
Scotland, partially offset by
increased volumes at the Orkanger, Norway facility and the full year inclusion of
Socotherm, Italy.
- Revenue in Asia Pacific
increased by $329.0 million, or 99%,
mainly due to execution of the Inpex Ichthys gas export pipeline
and the Chevron Wheatstone projects in both Kuantan, Malaysia and Kabil, Indonesia.
Operating Income for the twelve month period
ended December 31, 2013 was
$365.1 million compared to
$236.7 million for the twelve month
period ended December 31, 2012, an
increase of $128.4 million, or 54%.
The increase in Operating Income was due to an increase in gross
profit of $203.9 million due to the
increase in revenue of $363.6
million, as explained above, and a 3.6 percentage point
increase in gross margin due to favourable project mix, better
facilities utilization and the absorption of overheads,
particularly at the Company's two pipe coating facilities in
Asia Pacific. The increase in
gross profit was partially offset by higher SG&A expenses and
amortization of property, plant, equipment and intangibles as
explained in section 2.2 above.
3.2 Petrochemical and Industrial segment
The following table sets forth, by geographic
location, the Revenue, Operating Income and Operating Margin for
the Petrochemical and Industrial segment for the following
periods:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands of
Canadian dollars) |
|
Three Months ended |
|
Twelve Months ended |
|
|
December 31,
2013 |
|
September 30,
2013 |
|
December 31,
2012(a) |
|
December 31,
2013 |
|
December 31,
2012(a) |
North America |
|
$ |
25,230 |
|
$ |
27,927 |
|
$ |
20,818 |
|
$ |
101,117 |
|
$ |
92,551 |
EMAR |
|
|
13,622 |
|
|
13,742 |
|
|
11,434 |
|
|
55,457 |
|
|
50,496 |
Asia Pacific |
|
|
1,557 |
|
|
1,448 |
|
|
1,161 |
|
|
5,875 |
|
|
4,021 |
Total Revenue |
|
$ |
40,409 |
|
$ |
43,117 |
|
$ |
33,413 |
|
$ |
162,449 |
|
$ |
147,068 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income |
|
$ |
2,613 |
|
$ |
7,890 |
|
$ |
4,510 |
|
$ |
20,576 |
|
$ |
19,886 |
|
Operating Margin |
|
|
6.5% |
|
|
18.3% |
|
|
13.5% |
|
|
12.7% |
|
|
13.5% |
(a) |
Restated due to the adoption of certain new IFRS standards that
became effective as at January 1, 2013, but were implemented
retrospectively to January 1, 2012. |
Fourth Quarter 2013 versus Third Quarter
2013
Revenue decreased in the fourth quarter of 2013
by $2.7 million, or 6%, to
$40.4 million, compared to the third
quarter of 2013 due to record nuclear cable product shipments to
North American electrical utilities recorded in the third quarter
of 2013.
Operating Income of $2.6
million in the fourth quarter of 2013 was $5.3 million, or 67%, lower than in the third
quarter of 2013. The decrease in Operating Income was primarily due
to lower gross profit of $2.2 million
as a result of lower revenue of $2.7
million, as explained above, and a 3.1 percentage point
decrease in gross margin. In addition, SG&A expenses were
higher primarily due to one-time restructuring costs of
$3.2 million at the DSG Canusa
facilities in Europe, as explained
in section 2.2 above.
Fourth Quarter 2013 versus Fourth Quarter
2012
In the fourth quarter of 2013, revenue totaled
$40.4 million compared to
$33.4 million in the fourth quarter
of 2012, an increase of $7.0 million,
or 21%. The increase was driven by higher wire and cable volumes in
North America and higher heat
shrink tubing product volumes in the EMAR market.
Operating Income in the fourth quarter of 2013
was $2.6 million compared to
$4.5 million in the fourth quarter of
2012, a decrease of $1.9 million, or
42%. Despite higher gross profit of $2.2
million as a result of an increase in revenue of
$7.0 million, as explained above, and
a 0.4 percentage point increase in gross margin, primarily due to
product mix, operating income declined as a result of higher
SG&A expenses primarily due to one-time restructuring costs of
$3.2 million at the DSG Canusa
facilities in Europe, as explained
in section 2.2 above.
Twelve Months ended December 31, 2013 versus Twelve Months ended
December 31, 2012
Revenue increased in the twelve month period
ended December 31, 2013 by
$15.4 million, or 11%, to
$162.4 million, compared to the
comparable period in 2012, due to increased shipments of wire and
cable products to the North American electrical utilities, nuclear
and oil sands markets combined with increased heat shrink tubing
product shipments in all three regions.
Operating Income for the twelve month period
ended December 31, 2013 was
$20.6 million compared to
$19.9 million for the twelve month
period ended December 31, 2012, an
increase of $0.7 million, or 3%. The
increase was primarily due to higher revenue and gross profit,
partially offset by higher SG&A costs resulting from the
one-time restructuring costs of $3.2
million at the DSG Canusa facilities in Europe.
3.3 Financial and
Corporate
Financial and corporate costs include corporate
expenses not allocated to the operating segments and other
non-operating items, including foreign exchange gains and losses on
foreign currency denominated cash and working capital balances. The
corporate division of the Company only earns revenue that is
considered incidental to the activities of the Company. As a
result, it does not meet the definition of a reportable operating
segment as defined under IFRS.
The following table sets forth the Company's
unallocated financial and corporate expenses, before foreign
exchange gains and losses, for the following periods:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands of Canadian dollars) |
Three Months ended |
|
Twelve Months ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2013 |
|
September 30,
2012 |
|
December 31,
2012(a) |
|
December 31,
2013 |
|
December 31,
2012(a) |
Financial and Corporate Expenses |
|
$ |
(19,844) |
|
$ |
(13,100) |
|
$ |
(13,742) |
|
$ |
(70,860) |
|
$ |
(45,631) |
(a) Restated due to
the adoption of certain new IFRS standards that became effective as
at January 1, 2013, but were
implemented retrospectively to January 1,
2012.
Fourth Quarter 2013 versus Third Quarter
2013
Financial and corporate costs increased by
$6.7 million from $13.1million during the third quarter of 2013, to
$19.8 million during the fourth
quarter of 2013, primarily due to one-time restructuring costs and
amended executive retirement arrangements of $5.5 million, as explained in section 2.2 above,
and increased information technology expenses.
Fourth Quarter 2013 versus Fourth Quarter
2012
Financial and corporate costs increased by
$6.1 million from the fourth quarter
of 2012 to $19.8 million in the
fourth quarter of 2013, due to one-time restructuring costs and
amended executive retirement arrangements of $5.5 million, as explained in section 2.2 above,
increased information technology, professional consulting and and
other expenses of $4.4 million. This
was partially offset by one-time strategic review expenses of
$4.0 million incurred in the fourth
quarter of 2012.
Twelve Months ended December 31, 2013 versus Twelve Months ended
December 31, 2012
Financial and corporate costs increased by
$25.2 million from the twelve month
period ended December 31, 2012 to
$70.9 million for the twelve month
period ended December 31, 2013.
The increase was due to one-time costs of restructuring and amended
executive retirement arrangements recorded in the fourth quarter of
2013 of $5.5 million, $13.6 million incurred to complete the Company's
Plan of Arrangement on March 20, 2013
and related expenses associated with amended executive retirement
arrangements and due to increases of $4.7
million in personnel and management incentive compensation
costs and $5.9 million in legal,
professional consulting and research and development expenses.
4.0 FORWARD-LOOKING
INFORMATION
This document includes certain statements that
reflect management's expectations and objectives for the Company's
future performance, opportunities and growth, which statements
constitute "forward-looking information" and "forward looking
statements" (collectively "forward looking information") under
applicable securities laws. Such statements, other than
statements of historical fact, are predictive in nature or depend
on future events or conditions. Forward looking information
involves estimates, assumptions, judgments and uncertainties.
These statements may be identified by the use of forward-looking
terminology such as ″may″, ″will″, ″should″, ″anticipate″,
″expect″, ″believe″, ″predict″, ″estimate″, ″continue″, ″intend″,
″plan″ and variations of these words or other similar
expressions. Specifically, this document includes forward
looking information in the Outlook section and elsewhere in respect
of, among other things, the completion of the sale of the Company's
joint venture interest in Socotherm Brasil and the proceeds
therefrom, the timing of major project activity, the sufficiency of
resources, capacity and capital to meet market demand, to meet
contractual obligations and to execute the Company's development
and growth strategy, the impact of the existing order backlog and
other factors on the Company's revenue and Operating Income in 2014
and in the longer term, the impact of global economic activity on
the demand for the Company's products, the impact of changing
energy demand, supply and prices, the impact and likelihood of
changes in competitive conditions in the markets in which the
Company participates, the impact of changing laws for environmental
compliance on the Company's capital and operating costs, and the
adequacy of the Company's existing accruals in respect thereof and
in respect of litigation matters and other claims generally, the
level of payments under the Company's performance bonds, the
outlook for revenue and Operating Income and the expected
development in the Company's order backlog.
Forward looking information involves known and
unknown risks and uncertainties that could cause actual results to
differ materially from those predicted by the forward-looking
information. We caution readers not to place undue reliance
on forward looking information as a number of factors could cause
actual events, results and prospects to differ materially from
those expressed in or implied by the forward looking
information. Significant risks facing the Company include,
but are not limited to: changes in global or regional economic
activity and changes in energy supply and demand, which impact on
the level of drilling activity and pipeline construction; exposure
to product and other liability claims; shortages of or significant
increases in the prices of raw materials used by the Company;
compliance with environmental, trade and other laws; political,
economic and other risks arising from the Company's international
operations; fluctuations in foreign exchange rates, as well as
other risks and uncertainties, as more fully described under the
heading "Risks and Uncertainties" in the Company's annual
MD&A.
These statements of forward looking information
are based on assumptions, estimates and analysis made by management
in light of its experience and perception of trends, current
conditions and expected developments as well as other factors
believed to be reasonable and relevant in the circumstances.
These assumptions include those in respect of continued global
economic recovery, increased investment in global energy
infrastructure, the Company's ability to execute projects under
contract, the continued supply of and stable pricing for
commodities used by the Company, the availability of personnel
resources sufficient for the Company to operate its businesses, the
maintenance of operations in major oil and gas producing regions
and the ability of the Company to satisfy all covenants under its
credit facilities and the senior notes . The Company believes that
the expectations reflected in the forward looking information are
based on reasonable assumptions in light of currently available
information. However, should one or more risks materialize or
should any assumptions prove incorrect, then actual results could
vary materially from those expressed or implied in the forward
looking information included in this document and the Company can
give no assurance that such expectations will be achieved.
When considering the forward looking information
in making decisions with respect to the Company, readers should
carefully consider the foregoing factors and other uncertainties
and potential events. The Company does not assume the
obligation to revise or update forward looking information after
the date of this document or to revise it to reflect the occurrence
of future unanticipated events, except as may be required under
applicable securities laws.
To the extent any forward looking information in
this document constitutes future oriented financial information or
financial outlooks, within the meaning of securities laws, such
information is being provided to demonstrate the potential of the
Company and readers are cautioned that this information may not be
appropriate for any other purpose. Future oriented financial
information and financial outlooks, as with forward looking
information generally, are based on the assumptions and subject to
the risks noted above.
ShawCor will be hosting a Shareholder and
Analyst Conference Call and Webcast on Friday February 28th, 2013 at
10:00AM EST, which will discuss the
Company's fourth quarter financial results. The Conference call
participant dial-in number(s) are: Operator assisted toll-free
dial-in number: (888) 231-8191;local dial-in number: (647)
427-7450.
Additional information relating to the Company,
including its Annual Information Form, is available on SEDAR at
www.sedar.com.
Please visit our website at www.shawcor.com for
further details.
ShawCor Ltd.
Consolidated Balance Sheets
(Unaudited)
|
|
|
|
|
|
|
|
|
|
(in thousands of Canadian dollars) |
|
|
December 31,
2013 |
|
|
December 31,
2012 |
|
|
January 1,
2012 |
|
|
|
|
|
|
Restated (Note 5) |
|
|
Restated (Note 5) |
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Assets |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
79,395 |
|
$ |
284,981 |
|
$ |
56,537 |
Short-term investments |
|
|
6,618 |
|
|
77,950 |
|
|
10,545 |
Loan receivable |
|
|
1,780 |
|
|
1,565 |
|
|
2,047 |
Accounts receivable |
|
|
363,984 |
|
|
376,788 |
|
|
279,134 |
Income taxes receivable |
|
|
9,919 |
|
|
11,837 |
|
|
15,981 |
Inventories |
|
|
180,876 |
|
|
188,347 |
|
|
146,416 |
Prepaid expenses |
|
|
19,176 |
|
|
41,370 |
|
|
24,453 |
Derivative financial instruments |
|
|
624 |
|
|
3,988 |
|
|
270 |
|
|
|
662,372 |
|
|
986,826 |
|
|
535,383 |
Assets held for sale |
|
|
56,186 |
|
|
27,141 |
|
|
- |
|
|
|
718,558 |
|
|
1,013,967 |
|
|
535,383 |
|
|
|
|
|
|
|
|
|
|
Non-current Assets |
|
|
|
|
|
|
|
|
|
Loans receivable |
|
|
7,462 |
|
|
20,903 |
|
|
12,622 |
Property, plant and equipment |
|
|
413,287 |
|
|
371,584 |
|
|
298,721 |
Intangible assets |
|
|
130,216 |
|
|
101,455 |
|
|
86,362 |
Investments in joint ventures |
|
|
17,276 |
|
|
77,342 |
|
|
30 |
Investments in associate |
|
|
- |
|
|
- |
|
|
30,095 |
Deferred income taxes |
|
|
48,480 |
|
|
36,147 |
|
|
34,747 |
Other assets |
|
|
17,830 |
|
|
11,179 |
|
|
10,115 |
Goodwill |
|
|
298,819 |
|
|
256,296 |
|
|
220,334 |
|
|
|
933,370 |
|
|
874,906 |
|
|
693,026 |
|
|
$ |
1,651,928 |
|
$ |
1,888,873 |
|
$ |
1,228,409 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Liabilities |
|
|
|
|
|
|
|
|
|
Bank indebtedness |
|
$ |
5,290 |
|
$ |
5,751 |
|
$ |
12,281 |
Accounts payable and accrued liabilities |
|
|
230,974 |
|
|
206,051 |
|
|
154,932 |
Provisions |
|
|
49,762 |
|
|
48,807 |
|
|
16,335 |
Income taxes payable |
|
|
61,911 |
|
|
35,736 |
|
|
36,193 |
Derivative financial instruments |
|
|
1,632 |
|
|
1,275 |
|
|
419 |
Deferred revenue |
|
|
84,396 |
|
|
377,091 |
|
|
27,446 |
Obligations under finance lease |
|
|
487 |
|
|
1,927 |
|
|
268 |
|
|
|
434,452 |
|
|
676,638 |
|
|
247,874 |
Liabilities directly associated with the assets
classified as held for sale |
|
|
16,617 |
|
|
11,917 |
|
|
- |
|
|
|
451,069 |
|
|
688,555 |
|
|
247,874 |
|
|
|
|
|
|
|
|
|
|
Non-current Liabilities |
|
|
|
|
|
|
|
|
|
Loans payable |
|
|
126 |
|
|
2,664 |
|
|
- |
Long-term debt |
|
|
374,381 |
|
|
- |
|
|
- |
Obligations under finance lease |
|
|
13,827 |
|
|
12,728 |
|
|
- |
Provisions |
|
|
59,409 |
|
|
40,581 |
|
|
40,523 |
Derivative financial instruments |
|
|
- |
|
|
- |
|
|
2,499 |
Deferred revenue |
|
|
- |
|
|
64,392 |
|
|
- |
Employee future benefits |
|
|
25,678 |
|
|
29,807 |
|
|
26,315 |
Deferred income taxes |
|
|
68,857 |
|
|
61,479 |
|
|
56,984 |
|
|
|
542,278 |
|
|
211,651 |
|
|
126,321 |
|
|
|
993,347 |
|
|
900,206 |
|
|
374,195 |
|
|
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
|
|
|
Share capital |
|
|
303,327 |
|
|
221,687 |
|
|
218,381 |
Contributed surplus |
|
|
13,093 |
|
|
17,525 |
|
|
16,391 |
Retained earnings |
|
|
373,574 |
|
|
799,741 |
|
|
664,475 |
Non-controlling interests |
|
|
2,419 |
|
|
(331) |
|
|
- |
Accumulated other comprehensive loss |
|
|
(33,832) |
|
|
(49,955) |
|
|
(45,033) |
|
|
|
658,581 |
|
|
988,667 |
|
|
854,214 |
|
|
$ |
1,651,928 |
|
$ |
1,888,873 |
|
$ |
1,228,409 |
|
|
|
|
|
|
|
|
|
|
ShawCor Ltd.
Consolidated Statements of Income
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands of Canadian
dollars) |
|
Three Months
Ended
December 31, |
|
Twelve Months
Ended
December 31, |
|
|
|
2013 |
|
|
2012 |
|
|
2013 |
|
|
2012 |
|
|
|
|
|
|
(Restated) |
|
|
|
|
|
(Restated) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
Sale of products |
|
$ |
141,819 |
|
$ |
87,792 |
|
$ |
451,833 |
|
$ |
377,192 |
Rendering of services |
|
|
267,940 |
|
|
351,707 |
|
|
1,395,716 |
|
|
1,091,995 |
|
|
|
409,759 |
|
|
439,499 |
|
|
1,847,549 |
|
|
1,469,187 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Goods Sold and Services
Rendered |
|
$ |
247,114 |
|
$ |
258,016 |
|
$ |
1,058,946 |
|
$ |
895,004 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit |
|
$ |
162,645 |
|
$ |
181,483 |
|
$ |
788,603 |
|
$ |
574,183 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative
expenses |
|
|
103,015 |
|
|
83,008 |
|
|
382,755 |
|
|
306,108 |
Research and development expenses |
|
|
3,390 |
|
|
2,127 |
|
|
15,687 |
|
|
12,242 |
Foreign exchange gains |
|
|
(6,316) |
|
|
(826) |
|
|
(4,936) |
|
|
(109) |
Amortization of property, plant and
equipment |
|
|
16,627 |
|
|
13,514 |
|
|
66,484 |
|
|
44,985 |
Amortization of intangible assets |
|
|
2,727 |
|
|
1,967 |
|
|
10,312 |
|
|
7,319 |
Loss on assets held for sale |
|
|
1,122 |
|
|
- |
|
|
3,683 |
|
|
|
Gain on sale of land and other
items |
|
|
(5,156) |
|
|
(12,101) |
|
|
(5,156) |
|
|
(12,101) |
Impairment of property, plant and
equipment |
|
|
- |
|
|
832 |
|
|
- |
|
|
4,686 |
Income from Operations |
|
$ |
47,236 |
|
$ |
92,962 |
|
$ |
319,774 |
|
$ |
211,053 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income on investments in joint
ventures |
|
|
(5,417) |
|
|
(1,251) |
|
|
(3,874) |
|
|
618 |
Finance (costs) income, net |
|
|
(5,387) |
|
|
620 |
|
|
(14,912) |
|
|
1,360 |
Income on investments in
associate |
|
|
- |
|
|
5,968 |
|
|
- |
|
|
8,694 |
Accounting gain on acquisition |
|
|
- |
|
|
413 |
|
|
- |
|
|
413 |
Income before Income Taxes |
|
$ |
36,432 |
|
|
98,712 |
|
$ |
300,988 |
|
|
222,138 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes |
|
|
10,278 |
|
|
18,392 |
|
$ |
78,402 |
|
|
43,783 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income for the Period |
|
$ |
26,154 |
|
$ |
80,320 |
|
$ |
222,586 |
|
$ |
178,355 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income Attributable
to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders of the Company |
|
$ |
22,397 |
|
$ |
80,275 |
|
$ |
219,862 |
|
$ |
178,310 |
|
Non-controlling interests |
|
|
3,757 |
|
|
45 |
|
|
2,724 |
|
|
45 |
Net Income for the Period |
|
$ |
26,154 |
|
$ |
80,320 |
|
$ |
222,586 |
|
$ |
178,355 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.37 |
|
$ |
1.14 |
|
$ |
3.55 |
|
$ |
2.53 |
|
Diluted |
|
$ |
0.37 |
|
$ |
1.13 |
|
$ |
3.51 |
|
$ |
2.50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Number of Shares
Outstanding (000's) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
59,973 |
|
|
70,209 |
|
|
61,972 |
|
|
70,413 |
|
Diluted |
|
|
60,347 |
|
|
70,876 |
|
|
62,646 |
|
|
71,278 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ShawCor Ltd.
Consolidated Statements of Comprehensive Income
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands of Canadian
dollars) |
|
Three Months
Ended
December 31, |
|
Twelve Months
Ended
December 31, |
|
|
|
2013 |
|
|
2012 |
|
|
2013 |
|
|
2012 |
|
|
|
|
|
|
(Restated) |
|
|
|
|
|
(Restated) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income for the Period |
|
$ |
26,154 |
|
$ |
80,320 |
|
$ |
222,586 |
|
$ |
178,355 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Comprehensive Income
(loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Comprehensive Income (Loss)
to be reclassified |
|
|
|
|
|
|
|
|
|
|
|
|
|
to Net Income in subsequent periods: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange differences on translation of foreign
operations |
|
|
6,443 |
|
|
17,870 |
|
|
10,821 |
|
|
(357) |
|
Loss on cash flow hedge |
|
|
- |
|
|
- |
|
|
(6,880) |
|
|
- |
|
Other comprehensive income (loss)
attributable to investments in associate |
|
|
- |
|
|
136 |
|
|
- |
|
|
(469) |
Net Other Comprehensive Income
(Loss) to be reclassified to net income in subsequent
periods |
|
|
6,443 |
|
|
18,006 |
|
|
3,941 |
|
|
(826) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Comprehensive Income (Loss)
not to be |
|
|
|
|
|
|
|
|
|
|
|
|
|
reclassified to net income in subsequent
periods: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Actuarial gain (loss) on defined employee future
benefit plans |
|
|
16,311 |
|
|
(1,311) |
|
|
16,311 |
|
|
(5,246) |
|
Income tax (expense) recovery |
|
|
(4,103) |
|
|
339 |
|
|
(4,103) |
|
|
1,353 |
Net Other
Comprehensive income (Loss) not to be reclassified to net income in
subsequent periods |
|
|
12,208 |
|
|
(972) |
|
|
12,208 |
|
|
(3,893) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Comprehensive
Income (Loss),
Net of Income Tax |
|
|
18,651 |
|
|
17,034 |
|
|
16,149 |
|
|
(4,719) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Comprehensive Income For the
Period, |
|
$ |
44,805 |
|
$ |
97,354 |
|
$ |
238,735 |
|
$ |
173,636 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive Income Attributable
to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders of the Company |
|
$ |
41,388 |
|
$ |
97,106 |
|
$ |
235,985 |
|
$ |
173,388 |
|
Non-controlling interests |
|
|
3,417 |
|
|
248 |
|
|
2,750 |
|
|
248 |
Total Comprehensive Income for the
Period |
|
$ |
44,805 |
|
$ |
97,354 |
|
$ |
238,735 |
|
$ |
173,636 |
|
|
|
|
|
|
|
|
|
|
|
|
|
ShawCor Ltd.
Consolidated Statements of Changes in Equity
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands of
Canadian dollars)
(Restated) |
|
Share
Capital |
|
Contributed
Surplus |
|
Retained
Earnings |
|
Non-
Controlling
Interests |
|
Accumulated
Other
Comprehensive
Loss |
|
Total
Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance - December 31,
2011 |
$ |
218,381 |
|
$ |
16,391 |
|
$ |
664,475 |
|
|
- |
|
$ |
(45,033) |
|
$ |
854,214 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
- |
|
|
- |
|
|
178,310 |
|
|
45 |
|
|
- |
|
|
178,355 |
Issued on exercise of stock
options |
|
3,988 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
3,988 |
Compensation cost on exercised
options |
|
1,415 |
|
|
(1,415) |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
Compensation cost on exercised
RSUs |
|
79 |
|
|
(79) |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
Stock-based compensation expense |
|
- |
|
|
2,628 |
|
|
- |
|
|
- |
|
|
- |
|
|
2,628 |
Purchase - Normal Course Issuer
Bid |
|
(2,176) |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(2,176) |
Excess of purchase price over stated
value of shares |
|
- |
|
|
- |
|
|
(16,712) |
|
|
- |
|
|
- |
|
|
(16,712) |
Acquisition of non-controlling
interests |
|
- |
|
|
- |
|
|
- |
|
|
(579) |
|
|
- |
|
|
(579) |
Other comprehensive income (loss) |
|
- |
|
|
- |
|
|
- |
|
|
203 |
|
|
(4,922) |
|
|
(4,719) |
Dividends paid to shareholders |
|
- |
|
|
- |
|
|
(26,332) |
|
|
- |
|
|
- |
|
|
(26,332) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance - December 31,
2012 |
$ |
221,687 |
|
$ |
17,525 |
|
$ |
799,741 |
|
$ |
(331) |
|
$ |
(49,955) |
|
$ |
988,667 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
- |
|
|
- |
|
|
219,862 |
|
|
2,724 |
|
|
- |
|
|
222,586 |
Issued on exercise of stock
options |
|
19,599 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
19,599 |
Compensation cost on exercised
options |
|
7,579 |
|
|
(7,579) |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
Compensation cost on exercised
RSUs |
|
24 |
|
|
(24) |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
Stock-based compensation expense |
|
- |
|
|
3,171 |
|
|
- |
|
|
- |
|
|
- |
|
|
3,171 |
Cancellation of Class B shares |
|
54,438 |
|
|
- |
|
|
(553,215) |
|
|
- |
|
|
- |
|
|
(498,777) |
Shares cancellation costs (net income
tax benefit of $1.5 million) |
|
- |
|
|
- |
|
|
(4,312) |
|
|
- |
|
|
- |
|
|
(4,312) |
Other comprehensive income |
|
- |
|
|
- |
|
|
|
|
|
26 |
|
|
16,123 |
|
|
16,149 |
Dividends paid to shareholders |
|
- |
|
|
- |
|
|
(88,502) |
|
|
- |
|
|
- |
|
|
(88,502) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance - December 31,
2013 |
$ |
303,327 |
|
$ |
13,093 |
|
$ |
373,574 |
|
$ |
2,419 |
|
$ |
(33,832) |
|
$ |
658,581 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ShawCor Ltd.
Consolidated Statements of Cash Flows
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands of Canadian
dollars) |
|
Three Months Ended
December 31, |
|
Twelve Months Ended
December 31, |
|
|
|
2013 |
|
|
2012 |
|
|
2013 |
|
|
2012 |
|
|
|
|
|
|
(Restated) |
|
|
|
|
|
(Restated) |
Operating Activities |
|
|
|
|
|
|
|
|
|
|
|
|
Net income for the period |
|
$ |
26,154 |
|
$ |
80,320 |
|
$ |
222,586 |
|
$ |
178,355 |
Add (deduct) items not affecting
cash |
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of property, plant and equipment |
|
|
16,627 |
|
|
13,514 |
|
|
66,484 |
|
|
44,985 |
|
Amortization of intangible assets |
|
|
2,727 |
|
|
1,967 |
|
|
10,312 |
|
|
7,319 |
|
Amortization of long-term prepaid expenses |
|
|
108 |
|
|
200 |
|
|
807 |
|
|
900 |
|
Decommissioning obligations expense
(recovery) |
|
|
107 |
|
|
(1,538) |
|
|
395 |
|
|
(472) |
|
Other provision expenses |
|
|
4,292 |
|
|
7,344 |
|
|
22,136 |
|
|
2,227 |
|
Stock-based and incentive-based compensation |
|
|
6,081 |
|
|
4,681 |
|
|
23,594 |
|
|
15,297 |
|
Deferred income taxes |
|
|
(6,257) |
|
|
1,941 |
|
|
(14,959) |
|
|
(414) |
|
(Gain) loss on disposal of property, plant and
equipment |
|
|
- |
|
|
(22) |
|
|
538 |
|
|
(416) |
|
Gain on sale of land and other items |
|
|
(5,156) |
|
|
(12,101) |
|
|
(5,156) |
|
|
(12,101) |
|
Unrealized (gain) loss on derivative
financial instruments |
|
|
(918) |
|
|
679 |
|
|
3,070 |
|
|
651 |
|
Income on investments in associate |
|
|
- |
|
|
(5,968) |
|
|
- |
|
|
(8,694) |
|
Loss (income) on investments in joint
ventures |
|
|
5,417 |
|
|
1,251 |
|
|
3,874 |
|
|
(618) |
|
Loss on assets held for sale |
|
|
1,122 |
|
|
- |
|
|
3,683 |
|
|
- |
|
Accounting gain on acquisition |
|
|
- |
|
|
(9,445) |
|
|
- |
|
|
(9,445) |
|
Impairment of property, plant and equipment |
|
|
- |
|
|
832 |
|
|
- |
|
|
4,686 |
|
Other |
|
|
5 |
|
|
(3,085) |
|
|
825 |
|
|
(3,351) |
Settlement of decommissioning
liabilities |
|
|
(150) |
|
|
(249) |
|
|
(817) |
|
|
(1,580) |
Settlement of other provisions |
|
|
(3,493) |
|
|
(6,810) |
|
|
(19,449) |
|
|
(7,292) |
(Decrease) increase in deferred
revenue non-current |
|
|
- |
|
|
(86,088) |
|
|
(64,392) |
|
|
64,392 |
Net change in employee future
benefits |
|
|
(16,542) |
|
|
514 |
|
|
(20,994) |
|
|
1,168 |
Change in non-cash working capital and
foreign exchange |
|
|
(5,173) |
|
|
116,175 |
|
|
(200,273) |
|
|
254,915 |
Cash Provided by Operating
Activities |
|
$ |
24,951 |
|
$ |
104,112 |
|
$ |
32,264 |
|
$ |
530,512 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing Activities |
|
|
|
|
|
|
|
|
|
|
|
|
Increase in loan receivable |
|
|
(4,658) |
|
|
(2,784) |
|
|
(2,630) |
|
|
(62,085) |
Decrease (increase) in short term
investments |
|
|
1,730 |
|
|
133,937 |
|
|
71,332 |
|
|
(67,405) |
Purchases of property, plant and
equipment |
|
|
(19,258) |
|
|
(27,194) |
|
|
(76,729) |
|
|
(73,505) |
Proceeds on disposal of property,
plant and equipment |
|
|
8,094 |
|
|
12,875 |
|
|
8,539 |
|
|
14,187 |
Purchases of intangible
assets |
|
|
- |
|
|
(10) |
|
|
(522) |
|
|
(62) |
Investment in joint venture |
|
|
- |
|
|
- |
|
|
(7,398) |
|
|
- |
Investment in associate |
|
|
- |
|
|
(2,824) |
|
|
- |
|
|
(2,824) |
Business acquisition |
|
|
- |
|
|
(54,886) |
|
|
(30,163) |
|
|
(57,091) |
Increase in other assets |
|
|
(183) |
|
|
(956) |
|
|
(495) |
|
|
(956) |
Cash (Used in) Provided by
Investing Activities |
|
$ |
(14,275) |
|
$ |
58,158 |
|
$ |
(38,066) |
|
$ |
(249,741) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing Activities |
|
|
|
|
|
|
|
|
|
|
|
|
(Decrease) increase in bank
indebtedness |
|
|
(36,386) |
|
|
5,630 |
|
|
(461) |
|
|
(6,597) |
Decrease in loans payable |
|
|
(17) |
|
|
(11,184) |
|
|
(772) |
|
|
(4,581) |
Payment of finance lease
obligations |
|
|
- |
|
|
(266) |
|
|
(900) |
|
|
(465) |
Proceeds from long-term debt |
|
|
- |
|
|
- |
|
|
356,280 |
|
|
- |
Proceeds from interest rate swap |
|
|
- |
|
|
- |
|
|
2,111 |
|
|
- |
Issuance of shares |
|
|
729 |
|
|
878 |
|
|
19,599 |
|
|
3,988 |
Repurchase of shares |
|
|
- |
|
|
- |
|
|
(503,089) |
|
|
(18,888) |
Dividend paid to shareholders |
|
|
(7,497) |
|
|
(6,905) |
|
|
(88,502) |
|
|
(26,332) |
Cash Used in Financing
Activities |
|
$ |
(43,171) |
|
$ |
(11,847) |
|
$ |
(215,734) |
|
$ |
(52,875) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of Foreign Exchange on Cash
and Cash Equivalents |
|
$ |
8,775 |
|
$ |
1,065 |
|
$ |
15,950 |
|
$ |
548 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (Decrease) Increase in Cash and
Cash Equivalents |
|
|
(23,720) |
|
|
151,488 |
|
|
(205,586) |
|
|
228,444 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and Cash Equivalents -
Beginning of Period |
|
$ |
103,115 |
|
$ |
133,493 |
|
$ |
284,981 |
|
$ |
56,537 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and Cash Equivalents - End of
Period |
|
$ |
79,395 |
|
$ |
284,981 |
|
$ |
79,395 |
|
$ |
284,981 |
SOURCE ShawCor Ltd.