Opta Minerals Inc. Reports Third Quarter Results for Fiscal 2015
/EINPresswire.com/ -- WATERDOWN, ONTARIO -- (Marketwired) -- 11/11/15 -- Opta Minerals Inc. (TSX: OPM), today announced results for the three and nine months ended September 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
Sept 30, Sept 30, Increase
2015 2014 (Decrease) %
Revenue $ 28,784 $ 35,879 $ (7,095) -19.8%
Gross Profit 4,269 5,275 (1,006) -19.1%
14.8% 14.7% 0.1%
EBITDA(1) 3,205 2,242 963 43.0%
EBIT(2) 1,815 432 1,383 320.1%
Income (Loss) 686 519 167 32.2%
EPS $ 0.04 $ 0.03 $ 0.01
9 months 9 months
ended ended
Sept 30, Sept 30, Increase
2015 2014 (Decrease) %
Revenue $ 87,915 $ 105,667 $ (17,752) -16.8%
Gross Profit 11,730 16,683 (4,953) -29.7%
13.3% 15.8% -2.5%
EBITDA(1) 4,606 7,663 (3,057) -39.9%
EBIT(2) 356 2,763 (2,407) -87.1%
Income (Loss) (4,342) 992 (5,334) -537.7%
EPS $ (0.24) $ 0.05 $ (0.29)
(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 continues with restructuring the business and we have seen improvements from our efforts. We are continuing to work at closing unprofitable locations, reducing costs, simplifying operations and improving the balance sheet by reducing inventory thereby improving liquidity. We are striving to have our restructuring work substantially complete by the end of the year.
Markets remain soft but slightly better than the first half 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. We will be holding off on the recruitment of a permanent CEO until this matter is closed."
Operational and Financial Highlights:
-- On a consolidated basis revenues for the quarter have fallen 19.8% from
$35.9 million to $28.8 million. On a year to date basis revenues have
fallen 16.8% from $105.7 million to $87.9 million. Excluding the effects
of exchange rate movements in the Canadian dollar and Euro against the
U.S. dollar, revenues have fallen in the quarter and year to date 8.4%
and 7.4%, respectively. The balance of the shortfall is primarily due to
lower volumes sold to existing customers due to a general market
slowdown in the steel industry and in other markets we serve. Excluding
the current quarter foreign exchange gain and the comparative prior year
quarter foreign exchange loss, adjusted EBIT would be similar.
-- Third quarter revenue in the Steel and Magnesium segment decreased 15.5%
from the comparable quarter in 2014. On a year to date basis revenues
have decreased 11.3% over the comparable period in 2014. Excluding the
effects of exchange rate movements, revenues have fallen 9.2% and 6.9%
versus the previous quarter and year to date, respectively. The Steel
and Magnesium segment continues to be impacted by a slow down in the
steel industry affecting our throughput to customers.
-- The Industrial Minerals segment revenue decreased approximately 26.2% in
the quarter and 24.2% year to date. The decline is partially due to
restructuring as we eliminate locations and product lines that do not
provide an adequate return and partially due to the exchange rate
movements noted earlier. The Company remains focused on its
restructuring efforts along with focused growth in key areas of the
business such as garnet.
-- Gross profit includes charges of approximately $422 in the quarter and
$1.2 million year to date for inventory reserves and expected
remediation costs related to the closure of facilities and the
liquidation of certain inventories. Excluding these costs, gross margins
are 16.3% for the quarter and 14.7% for the year to date, respectively.
Margins have also been impacted by lower sales prices to liquidate
inventory and lower volumes affecting plant utilization.
-- Selling, general and administrative expenses (SGA) were $3,308 or 11.5%
as a percent of revenues, compared to $4,132 or 11.5% of revenues in the
prior year quarter. On a year to date basis SGA is $11,454 or 13.0% of
revenues compared to $12,738 or 12.1% for the comparable period in 2014.
Year to date SGA includes severance and other costs related to
restructuring as well as other one time items totaling approximately
$1.1 million. Excluding these items, SGA is 11.7% for the year. SGA is
impacted by the strengthening US dollar with corporate costs primarily
in Canadian dollars and cost reductions which have occurred during the
year. The Company is targeting 10% SGA as a percent of revenues.
-- Results include non-cash foreign exchange gains of $991 in the current
quarter compared to foreign exchange losses of $416 in the prior year
comparative quarter. Foreign exchange gains were $526 on a year to date
basis as compared to $781 in losses 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 $23.5 million, at September 30, 2015 amounted to $17.8 million and
total assets were $97.2 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.
-- Long-term borrowings of $23.5 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 September
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 again extended the maturity date of the revolving
credit facility from October 2, 2015 to November 30, 2015.
-- The Company will require the continued support from its current
financial lenders and, effective December 1, 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
November 30, 2015 has required the inclusion of additional disclosure in
the Company's interim condensed consolidated financial statements as at
and for the three and nine-month periods ended September 30, 2015.
-- The debt to equity ratio at September 30, 2015 was 0.89 to 1.00, and at
December 31, 2014 was 1.00 to 1.00.
For further details, please refer to the Company's interim condensed 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 / or 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 nine
Months Ended Months Ended
Sept 30 Sept 30
2015 2014 2015 2014
$ $ $ $
Income (Loss) for the Period 686 519 (4,342) 992
Finance Expense 873 1,035 3,565 2,783
Income Tax Expense (Recovery) 256 (1,122) 1,133 (1,012)
Depreciation and Amortization 1,253 1,515 3,804 4,499
Property, Plant and Equipment Write-
down - 180 495 180
Fair Value Adjustments to Contingent
Consideration 137 115 (49) 221
EBITDA(1) 3,205 2,242 4,606 7,663
Subtract:
Depreciation and Amortization 1,253 1,515 3,804 4,499
Property, Plant and Equipment Write-
down - 180 495 180
Fair Value Adjustments to Contingent
Consideration 137 115 (49) 221
EBIT(2) 1,815 432 356 2,763
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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; 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 September 30, 2015 and December 31, 2014
(Unaudited)
Expressed in Thousands of US Dollars (except per share amounts and number
of shares)
September 30, December 31,
2015 2014
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Assets
Current
Cash and cash equivalents $ 1,626 $ 2,170
Trade receivables, other receivables and
prepayments 18,153 20,236
Inventories 25,432 34,486
Income taxes receivable 907 996
----------------------------------------------------------------------------
46,118 57,888
----------------------------------------------------------------------------
Property, Plant and Equipment 18,676 21,926
----------------------------------------------------------------------------
Intangible Assets 23,829 26,827
----------------------------------------------------------------------------
Goodwill 8,574 9,447
----------------------------------------------------------------------------
Deferred Income Tax Assets - 1,645
----------------------------------------------------------------------------
$ 97,197 $ 117,733
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Liabilities
Current
Trade and other payables $ 11,814 $ 17,216
Borrowings 38,072 17,492
Derivative financial instruments 390 -
Provisions 839 772
Other liabilities 245 492
Income taxes payable 456 136
----------------------------------------------------------------------------
51,816 36,108
----------------------------------------------------------------------------
Borrowings 148 30,103
----------------------------------------------------------------------------
Derivative Financial Instruments - 285
----------------------------------------------------------------------------
Provisions 572 447
----------------------------------------------------------------------------
Other Liabilities 21 242
----------------------------------------------------------------------------
Deferred Income Tax Liabilities 1,841 3,040
----------------------------------------------------------------------------
54,398 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
----------------------------------------------------------------------------
Contributed Surplus 4,839 4,696
----------------------------------------------------------------------------
Accumulated Other Comprehensive Loss (2,007) (1,491)
----------------------------------------------------------------------------
Retained Earnings 22,056 26,398
----------------------------------------------------------------------------
42,799 47,508
----------------------------------------------------------------------------
$ 97,197 $ 117,733
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Opta Minerals Inc.
Interim Condensed Consolidated Statements of Income (Loss)
For the Three Months Ended September 30, 2015 and 2014
(Unaudited)
Expressed in Thousands of US Dollars (except per share amounts)
September 30, September 30,
2015 2014
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Revenue $ 28,784 $ 35,879
Cost of Goods Sold 24,515 30,604
----------------------------------------------------------------------------
Gross Profit 4,269 5,275
----------------------------------------------------------------------------
Expenses
Selling, general and administrative 3,308 4,132
Property, plant and equipment write-
downs - 180
Fair value adjustments to contingent
consideration 137 115
Foreign exchange (gain) loss (991) 416
----------------------------------------------------------------------------
2,454 4,843
----------------------------------------------------------------------------
IncomeBefore Finance Expense and Income
Taxes 1,815 432
Finance expense 873 1,035
----------------------------------------------------------------------------
Income (Loss) Before Income Taxes 942 (603)
Income tax expense (recovery) 256 (1,122)
----------------------------------------------------------------------------
Incomefor the Period Attributable to the
Shareholders of the Company $ 686 $ 519
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Earnings per share for the period - basic
and diluted $ 0.04 $ 0.03
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Opta Minerals Inc.
Interim Condensed Consolidated Statements of (Loss) Income
For the Nine Months Ended September 30, 2015 and 2014
(Unaudited)
Expressed in Thousands of US Dollars (except per share amounts)
September 30, September 30,
2015 2014
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Revenue $ 87,915 $ 105,667
Cost of Goods Sold 76,185 88,984
----------------------------------------------------------------------------
Gross Profit 11,730 16,683
----------------------------------------------------------------------------
Expenses
Selling, general and administrative 11,454 12,738
Property, plant and equipment write-
downs 495 180
Fair value adjustments to contingent
consideration (49) 221
Foreign exchange (gain) loss (526) 781
----------------------------------------------------------------------------
11,374 13,920
----------------------------------------------------------------------------
IncomeBefore Finance Expense and Income
Taxes 356 2,763
Finance expense 3,565 2,783
----------------------------------------------------------------------------
Loss Before Income Taxes (3,209) (20)
Income tax expense (recovery) 1,133 (1,012)
----------------------------------------------------------------------------
Income (Loss)for the Period Attributable
to the Shareholders of the Company $ (4,342) $ 992
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Earnings (Loss) per share for the period -
basic and diluted $ (0.24) $ 0.05
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Opta Minerals Inc.
Interim Condensed Consolidated Statements of Comprehensive Income (Loss)
For the Three Months Ended September 30, 2015 and 2014
(Unaudited)
Expressed in Thousands of US Dollars
September 30, September 30,
2015 2014
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Income for the Period Attributable to the
Shareholders of the Company $ 686 $ 519
Other Comprehensive Income (Loss), net of
income taxes
Items that may be reclassified
subsequently to profit or loss
Unrealized gain (loss) on translation of
foreign operations 16 (607)
Unrealized gain on derivative financial
instruments designated as cash flow
hedges 4 46
Ineffective portion of derivative
financial instruments 44 -
----------------------------------------------------------------------------
Other comprehensive income (loss), net
of income taxes 64 (561)
----------------------------------------------------------------------------
Comprehensive Income (Loss) Attributable
to the Shareholders of the Company $ 750 $ (42)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Opta Minerals Inc.
Interim Condensed Consolidated Statements of Comprehensive (Loss) Income
For the Nine Months Ended September 30, 2014 and 2013
(Unaudited)
Expressed in Thousands of US Dollars
September 30, September 30,
2015 2014
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Income (Loss) for the Period Attributable
to the Shareholders of the Company $ (4,342) $ 992
Other Comprehensive (Loss) Income, net of
income taxes
Items that may be reclassified
subsequently to profit or loss
Unrealized loss on translation of
foreign operations (726) (460)
Unrealized (loss) gain on derivative
financial instruments designated as
cash flow hedges (125) 12
Ineffective portion of derivative
financial instruments 335 -
----------------------------------------------------------------------------
Other comprehensive loss, net of income
taxes (516) (448)
----------------------------------------------------------------------------
Comprehensive (Loss) Income Attributable
to the Shareholders of the Company $ (4,858) $ 544
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Opta Minerals Inc.
Interim Condensed Consolidated Statements of Changes in Equity
For the Nine Months Ended September 30, 2015 and 2014
(Unaudited)
Expressed in Thousands of US Dollars (except per share amounts and number of
shares)
Contributed
Number of Surplus -
Shares - Share- AOCI(i) -
Capital Capital 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 - - - (125)
Ineffective portion
of derivative
financial
instruments - - - 335
----------------------------------------------------------------------------
Total Comprehensive
(Loss) Income - - - 210
----------------------------------------------------------------------------
Transactions with
Shareholders
Employee share
purchase plan 4,402 6 - -
Share-based payment
expense - - 143 -
----------------------------------------------------------------------------
Total Transactions
with Shareholders 4,402 6 143 -
----------------------------------------------------------------------------
At September 30,
2015 18,129,566 $ 17,911 $ 4,839 $ -
----------------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
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 - - - 12
----------------------------------------------------------------------------
Total Comprehensive
Income (Loss) - - - 12
----------------------------------------------------------------------------
Transactions with
Shareholders
Employee share
purchase plan 11,140 18 - -
Share-based payment
expense - - 280 -
----------------------------------------------------------------------------
Total Transactions
with Shareholders 11,140 18 280 -
----------------------------------------------------------------------------
At September 30,
2014 18,122,387 $ 17,900 $ 4,638 $ (218)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Opta Minerals Inc.
Interim Condensed Consolidated Statements of Changes in Equity
For the Nine Months Ended September 30, 2015 and 2014
(Unaudited)
Expressed in Thousands of US Dollars (except per share amounts and
number of shares)
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 - (4,342) (4,342)
Unrealized loss on
translation of
foreign operations (726) - (726)
Unrealized loss on
derivative
financial
instruments
designated as cash
flow hedges - - (125)
Ineffective portion
of derivative
financial
instruments - - 335
--------------------------------------------------------------------
Total Comprehensive
(Loss) Income (726) (4,342) (4,858)
--------------------------------------------------------------------
Transactions with
Shareholders
Employee share
purchase plan - - 6
Share-based payment
expense - - 143
--------------------------------------------------------------------
Total Transactions
with Shareholders - - 149
--------------------------------------------------------------------
At September 30,
2015 $ (2,007) $ 22,056 $ 42,799
--------------------------------------------------------------------
--------------------------------------------------------------------
--------------------------------------------------------------------
At January 1, 2014 $ (632) $ 28,280 $ 49,658
--------------------------------------------------------------------
Comprehensive Income
(Loss)
Income for the
period - 992 992
Unrealized gain on
translation of
foreign operations (460) - (460)
Unrealized loss on
derivative
financial
instruments
designated as cash
flow hedges - - 12
--------------------------------------------------------------------
Total Comprehensive
Income (Loss) (460) 992 544
--------------------------------------------------------------------
Transactions with
Shareholders
Employee share
purchase plan - - 18
Share-based payment
expense - - 280
--------------------------------------------------------------------
Total Transactions
with Shareholders - - 298
--------------------------------------------------------------------
At September 30,
2014 $ (1,092) $ 29,272 $ 50,500
--------------------------------------------------------------------
--------------------------------------------------------------------
(i)AOCI - Accumulated Other Comprehensive Income
Opta Minerals Inc.
Interim Condensed Consolidated Statements of Cash Flows
For the Nine Months Ended September 30, 2015 and 2014
(Unaudited)
Expressed in Thousands of US Dollars (except per share amounts and number
of shares)
September 30, September 30,
2015 2014
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Cash Provided by (Used in) -
Operating Activities
Income (loss) for the period $ (4,342) $ 992
Items not affecting cash:
Depreciation of property, plant and
equipment 2,299 2,827
Amortization of intangible assets 1,505 1,672
Property, plant and equipment write-
down 495 180
Share-based payment expense 143 280
Loss (gain) on disposal of property,
plant and equipment (4) 51
Fair value adjustments to contingent
consideration (49) 221
Non-cash interest charges 920 -
Deferred income taxes 553 (1,220)
----------------------------------------------------------------------------
1,520 5,003
Changes in non-cash working capital
Trade receivables, other receivables
and prepayments 698 (7,631)
Inventories 7,383 7,112
Trade and other payables (4,554) 1,445
Provisions 225 140
Income taxes receivable (payable) 443 (437)
----------------------------------------------------------------------------
5,715 5,632
----------------------------------------------------------------------------
Financing Activities
Proceeds from issuance of common
shares - net of issuance costs 6 18
Repayment of borrowings (4,713) (3,379)
Repayment of finance lease liabilities (267) (247)
----------------------------------------------------------------------------
(4,974) (3,608)
----------------------------------------------------------------------------
Investing Activities
Additions to property, plant and
equipment (905) (1,804)
Proceeds on disposal of property,
plant and equipment 115 25
Additions to intangible assets (42) (56)
Additional contingent consideration
paid on acquisitions (393) (260)
----------------------------------------------------------------------------
(1,225) (2,095)
----------------------------------------------------------------------------
Effect of Foreign Exchange Loss on Cash
and Cash Equivalents (60) (106)
----------------------------------------------------------------------------
Net Decrease in Cash and Cash Equivalents (544) (177)
Cash and Cash Equivalents
Beginning of Period 2,170 4,084
----------------------------------------------------------------------------
End of Period $ 1,626 $ 3,907
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Opta Minerals Inc.
Interim Segmented Information
For the Three Months Ended September 30, 2015 and 2014
(Unaudited)
Expressed in Thousands of US Dollars
Three Months Ended September 30,2015
----------------------------------------------------------------------------
Steel and Industrial
Magnesium Minerals Corporate Total
----------------------------------------------------------------------------
External revenue by market
Canada $ 2,860 $ 2,409 $ - $ 5,269
US 12,979 4,660 - 17,639
Europe 2,282 2,105 - 4,387
Other 87 1,402 - 1,489
----------------------------------------------------------------------------
Total revenue from external
customers 18,208 10,576 - 28,784
----------------------------------------------------------------------------
Segment income (loss) before
corporate expenses,
property, fair value
adjustments to contingent
consideration, finance
expense and income taxes 3,405 (1,229) - 2,176
Fair value adjustments to
contingent consideration (137) - - (137)
Corporate expenses and
foreign exchange gain
(loss) - - (224) (224)
----------------------------------------------------------------------------
Segment income (loss) before
finance expense and income
taxes 3,268 (1,229) (224) 1,815
Finance expense - - - (873)
Income tax expense - - - (256)
----------------------------------------------------------------------------
Income for the period - - - 686
----------------------------------------------------------------------------
Depreciation of property,
plant and equipment 460 267 28 755
----------------------------------------------------------------------------
Amortization of intangible
assets 476 4 18 498
----------------------------------------------------------------------------
Expenditures on property,
plant and equipment $ 217 $ 224 $ - $ 441
----------------------------------------------------------------------------
Opta Minerals Inc.
Interim Segmented Information
For the Nine Months Ended September 30, 2015 and 2014
(Unaudited)
Expressed in Thousands of US Dollars
Nine Months Ended September 30, 2015
----------------------------------------------------------------------------
Steel and Industrial
Magnesium Minerals Corporate Total
----------------------------------------------------------------------------
External revenue by market
Canada $ 8,938 $ 7,274 $ - $ 16,212
US 37,450 14,919 - 52,369
Europe 7,010 6,506 - 13,516
Other 256 5,562 - 5,818
----------------------------------------------------------------------------
Total revenue from external
customers 53,654 34,261 - 87,915
Segment income (loss) before
corporate expenses,
property, plant and
equipment write-downs, fair
value adjustments to
contingent consideration,
finance expense and income
taxes 7,074 (3,085) - 3,989
Property, plant and
equipment write-downs - (495) - (495)
Fair value adjustments to
contingent consideration 49 - - 49
Corporate expenses and
foreign exchange gain
(loss) - - (3,187) (3,187)
----------------------------------------------------------------------------
Segment income (loss) before
finance expense and income
taxes 7,123 (3,580) (3,187) 356
Finance expense - - - (3,565)
Income tax expense - - - (1,133)
----------------------------------------------------------------------------
Loss for the period - - - (4,342)
----------------------------------------------------------------------------
Total assets as at September
30, 2015 57,280 37,960 1,957 97,197
----------------------------------------------------------------------------
Depreciation of property,
plant and equipment 1,399 808 92 2,299
----------------------------------------------------------------------------
Amortization of intangible
assets 1,443 4 58 1,505
----------------------------------------------------------------------------
Goodwill and intangible
assets as at September 30,
2015 32,327 - 76 32,403
----------------------------------------------------------------------------
Expenditures on property,
plant and equipment $ 375 $ 517 $ 13 $ 905
----------------------------------------------------------------------------
Opta Minerals Inc.
Interim Segmented Information
For the Three Months Ended September 30, 2015 and 2014
(Unaudited)
Expressed in Thousands of US Dollars
Three Months Ended September 30, 2014
----------------------------------------------------------------------------
Steel and Industrial
Magnesium Minerals Corporate Total
----------------------------------------------------------------------------
External revenue by market
Canada $ 3,733 $ 3,032 $ - $ 6,765
US 14,885 6,818 - 21,703
Europe 2,911 2,637 - 5,548
Other 23 1,840 - 1,863
----------------------------------------------------------------------------
Total revenue from external
customers 21,552 14,327 - 35,879
----------------------------------------------------------------------------
Segment income (loss) before
corporate expenses,
property, plant and
equipment write-downs, fair
value adjustments to
contingent consideration,
finance expense and income
taxes 2,948 (974) - 1,974
Property, plant and
equipment write-downs - (180) - (180)
Fair value adjustments to
contingent consideration (115) - - (115)
Corporate expenses and
foreign exchange gain
(loss) - - (1,247) (1,247)
----------------------------------------------------------------------------
Segment income (loss) before
finance expense and income
taxes 2,833 (1,154) (1,247) 432
Finance expense - - - (1,035)
Income tax recovery - - - 1,122
----------------------------------------------------------------------------
Income for the period - - - 519
----------------------------------------------------------------------------
Depreciation of property,
plant and equipment 488 430 42 960
----------------------------------------------------------------------------
Amortization of intangible
assets 535 - 20 555
----------------------------------------------------------------------------
Expenditures on property,
plant and equipment $ 627 $ 145 $ 71 $ 843
----------------------------------------------------------------------------
Opta Minerals Inc.
Interim Segmented Information
For the Nine Months Ended September 30, 2015 and 2014
(Unaudited)
Expressed in Thousands of US Dollars
Nine Months Ended September 30, 2014
----------------------------------------------------------------------------
Steel and Industrial
Magnesium Minerals Corporate Total
----------------------------------------------------------------------------
External revenue by market
Canada $ 10,822 $ 8,401 $ - $ 19,223
US 39,794 21,650 - 61,444
Europe 9,854 8,960 - 18,814
Other 25 6,161 - 6,186
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Total revenue from external
customers 60,495 45,172 - 105,667
----------------------------------------------------------------------------
Segment income (loss) before
corporate expenses,
property, plant and
equipment write-downs, fair
value adjustments to
contingent consideration,
finance expense and income
taxes 8,434 (270) - 8,164
Property, plant and
equipment write-downs - (180) - (180)
Fair value adjustments to
contingent consideration (221) - - (221)
Corporate expenses and
foreign exchange gain
(loss) - - (5,000) (5,000)
----------------------------------------------------------------------------
Segment income (loss) before
finance expense and income
taxes 8,213 (450) (5,000) 2,763
Finance expense - - - (2,783)
Income tax expense - - - 1,012
----------------------------------------------------------------------------
Income for the period - - - 992
----------------------------------------------------------------------------
Total assets as at September
30, 2014 69,544 50,877 4,423 124,844
----------------------------------------------------------------------------
Depreciation of property,
plant and equipment 1,372 1,332 123 2,827
----------------------------------------------------------------------------
Amortization of intangible
assets 1,613 1 58 1,672
----------------------------------------------------------------------------
Goodwill and intangible
assets as at September 30,
2014 37,903 617 112 38,632
----------------------------------------------------------------------------
Expenditures on property,
plant and equipment $ 1,455 $ 272 $ 77 $ 1,804
----------------------------------------------------------------------------
Contacts:
Opta Minerals Inc.
Bernhard Rumbold
Interim President and Chief Executive Officer
Opta Minerals Inc.
Peter Fryters
Chief Financial Officer and Treasurer
905-689-7361 ext. 405
investor_relations@optaminerals.com
www.optaminerals.com
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