Opta Minerals Inc. Reports Second Quarter Results for Fiscal 2015
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E-mailWATERDOWN, ONTARIO -- (Marketwired) -- 08/14/15 -- Opta Minerals Inc. (TSX: OPM), today announced results for the three and six months ended June 30, 2015. All figures are reported in U.S. dollars and are in accordance with International Financial Reporting Standards (IFRS), except where otherwise noted.
3 months 3 months
ended ended
June 30, June 30, Increase
2015 2014 (Decrease) %
Revenue $ 29,674 $ 35,299 $ (5,625) -15.9%
Gross Profit 3,718 6,511 (2,793) -42.9%
12.5% 18.4% -5.9%
EBITDA(1) 448 3,151 (2,703) -85.8%
EBIT(2) (1,136) 1,552 (2,688) -173.2%
Income (Loss) (4,271) 727 (4,998) -687.5%
EPS $ (0.24) $ 0.04 $ (0.28)
6 months 6 months
ended ended
June 30, June 30, Increase
2015 2014 (Decrease) %
Revenue $ 59,131 $ 69,788 $ (10,657) -15.3%
Gross Profit 7,461 11,408 (3,947) -34.6%
12.6% 16.3% -3.7%
EBITDA(1) 1,401 5,421 (4,020) -74.2%
EBIT(2) (1,459) 2,331 (3,790) -162.6%
Income (Loss) (5,028) 473 (5,501) -1163.0%
EPS $ (0.28) $ 0.03 $ (0.31)
1. EBITDA is a non-IFRS measure: refer to Footnotes
2. EBIT is a non-IFRS measure; refer to Footnotes
Bernhard Rumbold, Interim President and CEO of Opta Minerals, noted "The Company is in the middle of restructuring its business which includes closing unprofitable locations, reducing costs, simplifying operations and improving the balance sheet by reducing inventory thereby improving liquidity. We have made significant progress in the second quarter and expect to complete most of our restructuring activities by the end of the year. The restructuring impact is isolated to the Industrial Minerals Group and Corporate office, with limited impact on the Steel and Magnesium Group. The financial results reflect the changes we are making and include a number of one time and non-cash costs as a result of the restructuring. Excluding these restructuring costs EBIT would be $1,091 for the quarter and EBITDA would be $2,180. Further details are provided below. We are very pleased with the efforts to improve the balance sheet and free up resources.
We have seen markets and sales improve in the latter half of the second quarter within the Steel and Magnesium Group and expect this momentum to continue for the balance of the year. We will continue to invest in people and capital within Steel and Magnesium and within segments of Industrial Minerals, such as garnet, where we believe we have a competitive advantage and can earn superior returns.
We continue to pursue strategic alternatives for the Company."
Operational and Financial Highlights:
-- Second quarter revenue in the Steel and Magnesium segment decreased
10.9% from the comparable quarter in 2014. On a year to date basis
revenues have decreased 9.0% over the comparable period in 2014.
Excluding the effects of exchange rate movements in the Canadian dollar
and Euro against the U.S. dollar, revenues have fallen 5.3% and 3.0%
versus the previous quarter and year to date, respectively. The Steel
and Magnesium segment has primarily been impacted by a slow down in the
steel industry.
-- The Industrial Minerals segment revenue decreased approximately 22% on a
quarter and year to date basis and 18% excluding the impact of exchange
as compared to the prior year. The decline is partially due to
restructuring as we eliminate locations and product lines that do not
provide an adequate return. The Company's focus is to complete these
restructuring efforts by the end of the year, but also invest in more
sales resources in areas where we believe there is growth.
-- Gross profit includes charges of $768 in the quarter for additional
inventory reserves and expected remediation costs related to the closure
of facilities and the liquidation of certain inventories. Excluding
these costs, gross margins are 15.1% for the quarter and 13.9% for the
year to date, respectively. Margins have also been impacted by lower
sales prices to liquidate inventory and lower volumes affecting plant
utilization. We believe margins on core products with the Steel Group
are relatively the same as the prior year.
-- Selling, general and administrative expenses (SGA) were $4,860 or 16.4%
as a percent of revenues, compared to $4,249 or 12.0% of revenues in the
prior year quarter. SGA includes approximately $965 in restructuring
costs including severance accrual for the former CEO. Excluding these
restructuring costs SGA were 12.1% for the year as a percent of
revenues, compared to 12.3% in the prior year. SGA is impacted by the
strengthening US dollar with corporate costs primarily in Canadian
dollars. The Company is targeting 10% SGA as a percent of revenues.
-- The Company had a write-down of property, plant and equipment in the
amount of $495 related to the Company's impairment analysis for one
facility in the Industrial Minerals segment.
-- Results include non-cash foreign exchange gains of $317 in the current
quarter compared to foreign exchange losses of $616 in the prior year
comparative quarter. Foreign exchange losses were $465 on a year to date
basis as compared to $365 in the previous year. These were driven by
fluctuations in the US dollar against both the Canadian dollar and Euro.
-- Working capital, excluding the reclassification of long-term borrowings
of $26.3 million, at June 30, 2015 amounted to $18.2 million and total
assets were $104.2 million, as compared to $21.8 million and $117.7
million, respectively, at December 31, 2014. Working capital is
considerably lower than December 31, 2014 driven by the Company's
efforts to significantly lower inventories. The inventory reduction
generates improved cash flow with more available liquid assets in
working capital.
-- Long-term borrowings of $26.3 million have been reclassified to current
borrowings as a result of the default of certain financial covenants
stipulated under the Company's credit agreement. Subsequent to June 30,
2015, the Company obtained a waiver in respect of the covenant default
from the syndicate of banks. As consideration for the waiver the Company
is to comply with certain additional financial covenants. The syndicate
of banks extended the maturity date of the revolving credit facility
from the August 14, 2015 annual renewal date to October 2, 2015.
-- The Company will require the continued support from its current
financial lenders and, effective October 3, 2015, Opta Minerals will
require a further extension of its revolving term credit facility and an
additional waiver of financial covenants, if breached, or an alternative
source of financing. Failure to meet financial covenants or repay the
revolving credit facility on maturity would constitute an event of
default under the credit agreement, unless the lenders agree to a waiver
or further amendment. The Company believes that it will comply with the
additional financial covenants and that an extension is likely, but
there can be no assurance that it will be provided or that alternative
sources of financing on terms favourable to the Company could be
obtained. The limited extension of the revolving term credit facility to
October 2, 2015 has required the inclusion of additional disclosure in
the Company's interim condensed consolidated financial statements as at
and for the six-month period ended June 30, 2015.
-- The debt to equity ratio at June 30, 2015 was 1.07 to 1.00, and at
December 31, 2014 was 1.00 to 1.00.
For further details, please refer to the Company's interim consolidated financial statements and related Management's Discussion and Analysis.
Opta Minerals is a vertically integrated provider of custom process solutions and industrial mineral products used primarily in the steel, foundry, loose abrasive cleaning, water-jet cutting and municipal water filtration industries. The Company has production and distribution facilities in Ontario, Quebec, Saskatchewan, Louisiana, South Carolina, Virginia, Maryland, Indiana, Michigan, New York, Texas, Florida, Ohio, Idaho, France, Slovakia and Germany.
FOOTNOTES:
Earnings before income taxes and interest ("EBIT"); and earnings before interest, income taxes, depreciation and amortization ("EBITDA") as defined below, are both non-IFRS earnings measures that do not have standardized measures prescribed by IFRS, and therefore may not be comparable to similar measures presented by other publicly traded companies.
For the three For the six
Months Ended Months Ended
June 30 June 30
2015 2014 2015 2014
$ $ $ $
Income (Loss) for the Period (4,271) 727 (5,028) 473
Finance Expense 1,829 847 2,692 1,748
Income Tax Expense (Recovery) 1,306 (22) 877 110
Depreciation and Amortization 1,273 1,505 2,551 2,984
Property, Plant and Equipment
Write-down 495 - 495 -
Fair Value Adjustments to
Contingent Consideration (184) 94 (186) 106
EBITDA(1) 448 3,151 1,401 5,421
Subtract:
Depreciation and Amortization 1,273 1,505 2,551 2,984
Property, Plant and Equipment
Write-down 495 - 495 -
Fair Value Adjustments to
Contingent Consideration (184) 94 (186) 106
EBIT(2) (1,136) 1,552 (1,459) 2,331
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Notes
1. The term "EBITDA" refers to earnings before deducting finance expense,
income taxes, depreciation and amortization. The Company believes that
EBITDA is useful supplemental information as it provides an indication
of the results generated by the Company's main business activities prior
to taking into consideration how those activities are financed and taxed
and also prior to taking into consideration non-cash asset depreciation
and amortization. EBITDA is not a recognized measure under International
Finance Reporting Standards (IFRS), and accordingly, investors are
cautioned that EBITDA should not be construed as an alternative to net
earnings or loss determined in accordance with IFRS as an indicator of
the financial performance of the Company or as a measure of the
Company's liquidity and cash flows. The Company's method of calculating
EBITDA may differ from other issuers and accordingly, EBITDA may not be
comparable to similar measures presented by other issuers.
2. The term "EBIT" refers to earnings before income taxes and finance
expense. The Company believes that EBIT is useful supplemental
information as it provides an indication of the results generated by the
Company's main business activities prior to taking into consideration
how those activities are financed or taxed. EBIT is a non-IFRS earnings
measure that does not have standardized measures prescribed by IFRS, and
therefore may not be comparable to similar measures presented by other
publicly traded companies.
Certain statements in this release constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements in this press release include, without limitation, statements relating to: the Company's restructuring activities and the anticipated benefits to be derived therefrom, the expected timing for the completion of the Company's restructuring activities; anticipated improvements within the Steel and Magnesium Group; and proposed investments in people and capital within the Steel and Magnesium Group and certain segments of the Infrastructure Group. Wherever possible, words such as "may", 'would", "could", "should", "will", "anticipate", "believe", "plan", "expect", "intend", "estimate", "aim", "endeavour", "seek", "predict", "potential" and similar expressions have been used to identify these forward-looking statements. These statements reflect management's current beliefs with respect to future events and are based on information currently available to management of the Company. Forward-looking statements involve significant risks, uncertainties and assumptions. Many factors could cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, without limitation: the impact of general economic conditions; the impact of specific industry conditions; the inability of the Company to successfully integrate recently acquired businesses or to achieve the anticipated benefits from such acquisitions; the risk of unexpected costs or liabilities relating to acquisitions; currency fluctuations and exchange rate risks; risks associated with foreign operations; governmental and environmental regulation; competition from other industry participants; cancellations of or the failure to renew purchase orders; production and delivery issues; quality, pricing and availability of raw materials; mining risks; and the other risks identified in the Company's Annual Information Form and other public filings (copies of which may be obtained at www.sedar.com).
Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results, performance or achievements may vary materially from those expressed or implied by this press release. These factors should be considered carefully and reader should not place undue reliance on the forward-looking statements. Although any forward-looking statements contained in this press release are based upon what management currently believes to be reasonable assumptions, the Company cannot assure readers that actual results, performance or achievements will be consistent with these forward-looking statements, and management's assumptions may prove to be incorrect. These forward-looking statements are made as of the date of this press release and, other than as required by law, the Company does not intend, and does not assume any obligation, to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.
Opta Minerals Inc.
Interim Condensed Consolidated Balance Sheets
As At June 30, 2015 and December 31, 2014
(Unaudited)
Expressed in Thousands of US Dollars (except per share amounts and number
of shares)
June 30, December 31,
2015 2014
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Assets
Current
Cash and cash equivalents $ 2,232 $ 2,170
Trade receivables, other receivables and
prepayments 19,846 20,236
Inventories 27,924 34,486
Income taxes receivable 890 996
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50,892 57,888
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Property, Plant and Equipment 19,568 21,926
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Intangible Assets 24,639 26,827
---------------------------------------------------------------------------
Goodwill 9,060 9,447
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Deferred Income Tax Assets - 1,645
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$ 104,159 $ 117,733
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Liabilities
Current
Trade and other payables $ 12,980 $ 17,216
Borrowings 44,811 17,492
Provisions 889 772
Other liabilities 64 492
Income taxes payable 294 136
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59,038 36,108
---------------------------------------------------------------------------
Borrowings 193 30,103
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Derivative Financial Instruments 457 285
---------------------------------------------------------------------------
Provisions 527 447
---------------------------------------------------------------------------
Other Liabilities 67 242
---------------------------------------------------------------------------
Deferred Income Tax Liabilities 1,850 3,040
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62,132 70,225
---------------------------------------------------------------------------
Equity Attributable to the Shareholders of
the Company
Capital Stock
Authorized without limit as to number -
Preference shares (without par value)
Common shares
Issued -
18,129,566 common shares (December 31,
2014 - 18,125,164) 17,911 17,905
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Contributed Surplus 4,817 4,696
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Accumulated Other Comprehensive Loss (2,071) (1,491)
---------------------------------------------------------------------------
Retained Earnings 21,370 26,398
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42,027 47,508
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$ 104,159 $ 117,733
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Opta Minerals Inc.
Interim Condensed Consolidated Statements of (Loss) Income
For the Three Months Ended June 30, 2015 and 2014
(Unaudited)
Expressed in Thousands of US Dollars (except per share amounts)
June 30, June 30,
2015 2014
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Revenue $ 29,674 $ 35,299
Cost of Goods Sold 25,956 28,788
---------------------------------------------------------------------------
Gross Profit 3,718 6,511
---------------------------------------------------------------------------
Expenses
Selling, general and administrative 4,860 4,249
Property, plant and equipment write-down 495 -
Fair value adjustments to contingent
consideration (184) 94
Foreign exchange (gain) loss (317) 616
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4,854 4,959
---------------------------------------------------------------------------
Income(Loss)Before Finance Expense and
Income Taxes (1,136) 1,552
Finance expense 1,829 847
---------------------------------------------------------------------------
Income (Loss) Before Income Taxes (2,965) 705
Income tax expense (recovery) 1,306 (22)
---------------------------------------------------------------------------
Income (Loss) for the Period Attributable
to the Shareholders of the Company $ (4,271) $ 727
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Earnings (Loss) per share for the period -
basic and diluted $ (0.24) $ 0.04
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Opta Minerals Inc.
Interim Condensed Consolidated Statements of (Loss) Income
For the Six Months Ended June 30, 2015 and 2014
(Unaudited)
Expressed in Thousands of US Dollars (except per share amounts)
June 30, June 30,
2015 2014
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Revenue $ 59,131 $ 69,788
Cost of Goods Sold 51,670 58,380
---------------------------------------------------------------------------
Gross Profit 7,461 11,408
---------------------------------------------------------------------------
Expenses
Selling, general and administrative 8,146 8,606
Property, plant and equipment write-down 495 -
Fair value adjustments to contingent
consideration (186) 106
Foreign exchange loss 465 365
---------------------------------------------------------------------------
8,920 9,077
---------------------------------------------------------------------------
Income (Loss) Before Finance Expense and
Income Taxes (1,459) 2,331
Finance expense 2,692 1,748
---------------------------------------------------------------------------
Income (Loss) Before Income Taxes (4,151) 583
Income tax expense 877 110
---------------------------------------------------------------------------
Income (Loss) for the Period Attributable
to the Shareholders of the Company $ (5,028) $ 473
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Earnings (Loss) per share for the period -
basic and diluted $ (0.28) $ 0.03
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Opta Minerals Inc.
Interim Condensed Consolidated Statements of Comprehensive (Loss) Income
For the Three Months Ended June 30, 2015 and 2014
(Unaudited)
Expressed in Thousands of US Dollars
June 30, June 30,
2015 2014
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Income (Loss) for the Period Attributable
to the Shareholders of the Company $ (4,271) $ 727
Other Comprehensive Income, net of income
taxes
Items that may be reclassified
subsequently to profit or loss
Unrealized gain on translation of
foreign operations 130 53
Unrealized gain on derivative financial
instruments designated as cash flow
hedges 67 24
Ineffective portion of derivative
financial instruments 291 -
---------------------------------------------------------------------------
Other comprehensive income, net of
income taxes 488 77
---------------------------------------------------------------------------
Comprehensive (Loss) Income Attributable
to the Shareholders of the Company $ (3,783) $ 804
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Opta Minerals Inc.
Interim Condensed Consolidated Statements of Comprehensive (Loss) Income
For the Six Months Ended June 30, 2014 and 2013
(Unaudited)
Expressed in Thousands of US Dollars
June 30, June 30,
2015 2014
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Income (Loss) for the Period Attributable
to the Shareholders of the Company $ (5,028) $ 473
Other Comprehensive (Loss) Income, net of
income taxes
Items that may be reclassified
subsequently to profit or loss
Unrealized (loss) gain on translation of
foreign operations (742) 147
Unrealized loss on derivative financial
instruments designated as cash flow
hedges (129) (34)
Ineffective portion of derivative
financial instruments 291 -
---------------------------------------------------------------------------
Other comprehensive (loss) income, net
of income taxes (580) 113
---------------------------------------------------------------------------
Comprehensive (Loss) Income Attributable
to the Shareholders of the Company $ (5,608) $ 586
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Opta Minerals Inc.
Interim Condensed Consolidated Statements of Changes in Equity
For the Six Months Ended June 30, 2015 and 2014
(Unaudited)
Expressed in Thousands of US Dollars (except per share amounts and number of
shares)
Number of Contributed
Shares - Surplus - AOCI(i) -
Capital Capital Share-based Cash Flow
Stock Stock Payments Hedge
----------------------------------------------------------------------------
----------------------------------------------------------------------------
At January 1, 2015 18,125,164 $ 17,905 $ 4,696 $ (210)
----------------------------------------------------------------------------
Comprehensive Loss
Loss for the period - - - -
Unrealized loss on
translation of
foreign operations - - - -
Unrealized loss on
derivative
financial
instruments
designated as cash
flow hedges - - - (129)
Ineffective portion
of derivative
financial
instruments - - - 291
----------------------------------------------------------------------------
Total Comprehensive
(Loss) Income - - - 162
----------------------------------------------------------------------------
Transactions with
Shareholders
Employee share
purchase plan 4,402 6 - -
Share-based payment
expense - - 121 -
----------------------------------------------------------------------------
Total Transactions
with Shareholders 4,402 6 121 -
----------------------------------------------------------------------------
At June 30, 2015 18,129,566 $ 17,911 $ 4,817 $ (48)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
At January 1, 2014 18,111,247 $ 17,882 $ 4,358 $ (230)
----------------------------------------------------------------------------
Comprehensive Income
(Loss)
Income for the
period - - - -
Unrealized gain on
translation of
foreign operations - - - -
Unrealized loss on
derivative
financial
instruments
designated as cash
flow hedges - - - (34)
----------------------------------------------------------------------------
Total Comprehensive
Income (Loss) - - - (34)
----------------------------------------------------------------------------
Transactions with
Shareholders
Employee share
purchase plan 7,365 12 - -
Share-based payment
expense - - 206 -
----------------------------------------------------------------------------
Total Transactions
with Shareholders 7,365 12 206 -
----------------------------------------------------------------------------
At June 30, 2014 18,118,612 $ 17,894 $ 4,564 $ (264)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
AOCI(i) -
Foreign
Currency
Translation Retained Total
Reserve Earnings Equity
---------------------------------------------------------------------------
---------------------------------------------------------------------------
At January 1, 2015 $ (1,281) $ 26,398 $ 47,508
---------------------------------------------------------------------------
Comprehensive Loss
Loss for the period - (5,028) (5,028)
Unrealized loss on
translation of
foreign operations (742) - (742)
Unrealized loss on
derivative
financial
instruments
designated as cash
flow hedges - - (129)
Ineffective portion
of derivative
financial
instruments - - 291
---------------------------------------------------------------------------
Total Comprehensive
(Loss) Income (742) (5,028) (5,608)
---------------------------------------------------------------------------
Transactions with
Shareholders
Employee share
purchase plan - - 6
Share-based payment
expense - - 121
---------------------------------------------------------------------------
Total Transactions
with Shareholders - - 127
---------------------------------------------------------------------------
At June 30, 2015 $ (2,023) $ 21,370 $ 42,027
---------------------------------------------------------------------------
---------------------------------------------------------------------------
At January 1, 2014 $ (632) $ 28,280 $ 49,658
---------------------------------------------------------------------------
Comprehensive Income
(Loss)
Income for the
period - 473 473
Unrealized gain on
translation of
foreign operations 147 - 147
Unrealized loss on
derivative
financial
instruments
designated as cash
flow hedges - - (34)
---------------------------------------------------------------------------
Total Comprehensive
Income (Loss) 147 473 586
---------------------------------------------------------------------------
Transactions with
Shareholders
Employee share
purchase plan - - 12
Share-based payment
expense - - 206
---------------------------------------------------------------------------
Total Transactions
with Shareholders - - 218
---------------------------------------------------------------------------
At June 30, 2014 $ (485) $ 28,753 $ 50,462
---------------------------------------------------------------------------
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(i)AOCI - Accumulated Other Comprehensive Income
Opta Minerals Inc.
Interim Condensed Consolidated Statements of Cash Flows
For the Six Months Ended June 30, 2015 and 2014
(Unaudited)
Expressed in Thousands of US Dollars (except per share amounts and number
of shares)
June 30, June 30,
2015 2014
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Cash Provided by (Used in) -
Operating Activities
Income (loss) for the period $ (5,028) $ 473
Items not affecting cash:
Depreciation of property, plant and
equipment 1,544 1,867
Amortization of intangible assets 1,007 1,117
Property, plant and equipment write-
down 495 -
Share-based payment expense 121 206
Loss (gain) on disposal of property,
plant and equipment (20) 4
Fair value adjustments to contingent
consideration (186) 106
Non-cash interest charges 806 -
Deferred income taxes 594 (427)
---------------------------------------------------------------------------
(667) 3,346
Changes in non-cash working capital
Trade receivables, other receivables
and prepayments (271) (5,799)
Inventories 5,762 6,941
Trade and other payables (3,614) (1,849)
Provisions 218 108
Income taxes receivable (payable) 269 115
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1,697 2,862
---------------------------------------------------------------------------
Financing Activities
Proceeds from issuance of common
shares - net of issuance costs 6 12
Proceeds from borrowings - net of
deferred finance charges 1,547 -
Repayment of borrowings (2,169) (2,534)
Repayment of finance lease liabilities (202) (159)
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(818) (2,681)
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Investing Activities
Additions to property, plant and
equipment (464) (961)
Proceeds on disposal of property,
plant and equipment 109 12
Additions to intangible assets - (37)
Additional contingent consideration
paid on acquisitions (393) (260)
---------------------------------------------------------------------------
(748) (1,246)
---------------------------------------------------------------------------
Effect of Foreign Exchange Loss on Cash
and Cash Equivalents (69) (11)
---------------------------------------------------------------------------
Net Increase (Decrease) in Cash and Cash
Equivalents 62 (1,076)
Cash and Cash Equivalents
Beginning of Period 2,170 4,084
---------------------------------------------------------------------------
End of Period $ 2,232 $ 3,008
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Opta Minerals Inc.
Interim Segmented Information
For the Three Months Ended June 30, 2015 and 2014
(Unaudited)
Expressed in Thousands of US Dollars
Three Months Ended June 30, 2015
---------------------------------------------------------------------------
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Steel and Industrial
Magnesium Minerals Corporate Total
---------------------------------------------------------------------------
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External revenue by
market
Canada $ 2,802 $ 2,671 $ - $ 5,473
US 12,299 5,467 - 17,766
Europe 2,174 2,168 - 4,342
Other 117 1,976 - 2,093
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Total revenue from
external customers 17,392 12,282 - 29,674
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---------------------------------------------------------------------------
Segment income (loss)
before corporate
expenses, property,
plant and equipment
write-down, fair
value adjustments to
contingent
consideration,
finance expense and
income taxes 1,961 (57) - 1,904
Property, plant and
equipment write-down - (495) - (495)
Fair value adjustments
to contingent
consideration 184 - - 184
Corporate expenses - - (2,729) (2,729)
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Segment income (loss)
before finance
expense and income
taxes 2,145 (552) (2,729) (1,136)
Finance expense - - - (1,829)
Income tax expense - - - (1,306)
---------------------------------------------------------------------------
Loss for the period - - - (4,271)
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Depreciation of
property, plant and
equipment 468 272 31 771
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Amortization of
intangible assets 483 - 19 502
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Expenditures on
property, plant and
equipment $ 128 $ 206 $ - $ 334
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Opta Minerals Inc.
Interim Segmented Information
For the Six Months Ended June 30, 2015 and 2014
(Unaudited)
Expressed in Thousands of US Dollars
Six Months Ended June 30, 2015
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Steel and Industrial
Magnesium Minerals Corporate Total
---------------------------------------------------------------------------
---------------------------------------------------------------------------
External revenue by
market
Canada $ 6,078 $ 4,865 $ - $ 10,943
US 24,471 10,259 - 34,730
Europe 4,728 4,401 - 9,129
Other 169 4,160 - 4,329
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Total revenue from
external customers 35,446 23,685 - 59,131
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Segment income (loss)
before corporate
expenses, property,
plant and equipment
write-down, fair
value adjustments to
contingent
consideration,
finance expense and
income taxes 3,669 (1,856) - 1,813
Property, plant and
equipment write-down - (495) - (495)
Fair value adjustments
to contingent
consideration 186 - - 186
Corporate expenses - - (2,963) (2,963)
---------------------------------------------------------------------------
Segment income (loss)
before finance
expense and income
taxes 3,855 (2,351) (2,963) (1,459)
Finance expense - - - (2,692)
Income tax expense - - - (877)
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Loss for the period - - - (5,028)
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Total assets as at
June 30, 2015 60,318 41,989 1,852 104,159
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Depreciation of
property, plant and
equipment 939 541 64 1,544
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Amortization of
intangible assets 967 - 40 1,007
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Goodwill and
intangible assets as
at June 30, 2015 33,635 - 64 33,699
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Expenditures on
property, plant and
equipment $ 158 $ 293 $ 13 $ 464
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Opta Minerals Inc.
Interim Segmented Information
For the Three Months Ended June 30, 2015 and 2014
(Unaudited)
Expressed in Thousands of US Dollars
Three Months Ended June 30, 2014
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Steel and Industrial
Magnesium Minerals Corporate Total
---------------------------------------------------------------------------
---------------------------------------------------------------------------
External revenue by
market
Canada $ 3,384 $ 3,176 $ - $ 6,560
US 12,582 7,227 - 19,809
Europe 3,552 3,012 - 6,564
Other 2 2,364 - 2,366
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Total revenue from
external customers 19,520 15,779 - 35,299
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Segment income (loss)
before corporate
expenses, finance
expense and income
taxes 2,984 1,229 - 4,213
Fair value adjustments
to contingent
consideration (94) - - (94)
Corporate expenses - - (2,567) (2,567)
---------------------------------------------------------------------------
Segment income (loss)
before finance
expense and income
taxes 2,890 1,229 (2,567) 1,552
Finance expense - - - (847)
Income tax recovery - - - 22
---------------------------------------------------------------------------
Income for the period - - - 727
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Depreciation of
property, plant and
equipment 459 447 40 946
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Amortization of
intangible assets 540 1 18 559
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Expenditures on
property, plant and
equipment $ 663 $ 61 $ 5 $ 729
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Opta Minerals Inc.
Interim Segmented Information
For the Six Months Ended June 30, 2015 and 2014
(Unaudited)
Expressed in Thousands of US Dollars
Six Months Ended June 30, 2014
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Steel and Industrial
Magnesium Minerals Corporate Total
---------------------------------------------------------------------------
---------------------------------------------------------------------------
External revenue by
market
Canada $ 7,089 $ 5,369 $ - $ 12,458
US 24,909 14,832 - 39,741
Europe 6,943 6,323 - 13,266
Other 2 4,321 - 4,323
---------------------------------------------------------------------------
Total revenue from
external customers 38,943 30,845 - 69,788
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Segment income (loss)
before corporate
expenses, fair value
adjustments to
contingent
consideration,
finance expense and
income taxes 5,486 704 - 6,190
Fair value adjustments
to contingent
consideration (106) - - (106)
Corporate expenses - - (3,753) (3,753)
---------------------------------------------------------------------------
Segment income (loss)
before finance
expense and income
taxes 5,380 704 (3,753) 2,331
Finance expense - - - (1,748)
Income tax expense - - - (110)
---------------------------------------------------------------------------
Income for the period - - - 473
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Total assets as at
June 30, 2014 68,997 53,121 3,713 125,831
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Depreciation of
property, plant and
equipment 884 902 81 1,867
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Amortization of
intangible assets 1,078 1 38 1,117
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Goodwill and
intangible assets as
at June 30, 2014 39,823 646 117 40,586
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Expenditures on
property, plant and
equipment $ 828 $ 127 $ 6 $ 961
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Contacts: Opta Minerals Inc. Bernhard Rumbold Interim President and Chief Executive Officer 905-689-7361, ext. 405 Opta Minerals Inc. Peter Fryters Chief Financial Officer and Treasurer 905-689-7361, ext. 405 [email protected] www.optaminerals.com
Source: Opta Minerals Inc.
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