WINNIPEG, Oct. 24, 2019 /CNW/ - Winpak Ltd. (WPK)
today reports consolidated results in US dollars for the third
quarter of 2019, which ended on September
29, 2019.
|
Quarter
Ended
|
|
Year-To-Date
Ended
|
|
September
29
|
|
September
30
|
|
September
29
|
|
September
30
|
|
2019
|
|
2018 *
|
|
2019
|
|
2018 *
|
|
|
|
|
|
|
|
|
(thousands of US
dollars, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
212,734
|
|
220,647
|
|
656,387
|
|
667,503
|
Net income
|
29,462
|
|
28,651
|
|
90,543
|
|
84,336
|
|
|
|
|
|
|
|
|
Income tax
expense
|
10,099
|
|
9,967
|
|
31,881
|
|
29,893
|
Net finance
income
|
(1,364)
|
|
(613)
|
|
(3,805)
|
|
(692)
|
Depreciation and
amortization
|
10,567
|
|
10,099
|
|
30,930
|
|
29,874
|
EBITDA (1)
|
48,764
|
|
48,104
|
|
149,549
|
|
143,411
|
|
|
|
|
|
|
|
|
Net income
attributable to equity holders of the Company
|
28,578
|
|
27,835
|
|
88,093
|
|
82,238
|
Net income
attributable to non-controlling interests
|
884
|
|
816
|
|
2,450
|
|
2,098
|
Net income
|
29,462
|
|
28,651
|
|
90,543
|
|
84,336
|
|
|
|
|
|
|
|
|
Basic and diluted
earnings per share (cents)
|
44
|
|
43
|
|
136
|
|
127
|
Winpak Ltd. manufactures and distributes high-quality packaging
materials and related packaging machines. The Company's products
are used primarily for the packaging of perishable foods, beverages
and in healthcare applications.
1
|
EBITDA is not a
recognized measure under International Financial Reporting
Standards (IFRS). Management believes that in addition to net
income, this measure provides useful supplemental information to
investors including an indication of cash available for
distribution prior to debt service, capital expenditures and income
taxes. Investors should be cautioned, however, that this measure
should not be construed as an alternative to net income, determined
in accordance with IFRS, as an indicator of the Company's
performance. The Company's method of calculating this measure may
differ from other companies and, accordingly, the results may not
be comparable.
|
|
|
*
|
The Company has
initially applied IFRS 16 "Leases" at December 31, 2018. Under the
transition method chosen by the Company, comparative information
has not been restated.
|
(presented in US dollars)
Forward-looking statements: Certain statements made in the
following report contain forward-looking statements including,
but not limited to, statements concerning possible or assumed
future results of operations of the Company. Forward-looking
statements represent the Company's intentions, plans, expectations
and beliefs, and are not guarantees of future performance. Such
forward-looking statements represent Winpak's current views based
on information as at the date of this report. They involve risks,
uncertainties and assumptions and the Company's actual results
could differ, which in some cases may be material, from those
anticipated in these forward-looking statements. Factors that could
cause results to differ from those expected include, but are not
limited to: the terms, availability and costs of acquiring raw
materials and the ability to pass on price increases to customers;
ability to negotiate contracts with new customers or renew existing
customer contracts with less favorable terms; timely response to
changes in customer product needs and market acceptance of our
products; the potential loss of business or increased costs due to
customer or vendor consolidation; competitive pressures, including
new product development; industry capacity, and changes in
competitors' pricing; ability to maintain or increase productivity
levels; ability to contain or reduce costs; foreign currency
exchange rate fluctuations; changes in governmental regulations,
including environmental, health and safety; changes in Canadian and
foreign income tax rates, income tax laws and regulations. Unless
otherwise required by applicable securities law, Winpak disclaims
any intention or obligation to publicly update or revise this
information, whether as a result of new information, future events
or otherwise. The Company cautions investors not to place undue
reliance upon forward-looking statements.
Financial Performance
Net income attributable to equity holders of the Company for the
third quarter of 2019 of $28.6
million or 44 cents in
earnings per share (EPS) surpassed the comparable 2018 quarter by
$0.7 million or 1 cent per share. The improvement in gross profit
margins contributed 1.0 cent to EPS.
Additionally, net finance income augmented EPS by 1.0 cent. Lower sales volumes and foreign
exchange had the opposite effect, each decreasing EPS by
0.5 cents.
For the nine months ended September 29,
2019, net income attributable to equity holders of the
Company ascended to $88.1 million or
$1.36 per share, exceeding the 2018
corresponding result of $82.2 million
or $1.27 per share by 7.1 percent.
Higher gross profit margins in 2019 were the main factor, advancing
EPS by 7.0 cents while net finance
income and foreign exchange added a further 3.5 cents and 2.0
cents, respectively. Conversely, higher operating expenses
lowered EPS by 2.5 cents and the
contraction in sales volumes subtracted 1.0
cent from EPS.
Operating Segments and Product Groups
The Company provides three distinct types of packaging
technologies: a) rigid packaging and flexible lidding, b) flexible
packaging and c) packaging machinery. Each of the three are deemed
to be a separate operating segment.
The rigid packaging and flexible lidding segment includes the
rigid containers and lidding product groups. Rigid containers
include portion control and single-serve containers, as well as
plastic sheet, custom and retort trays, which are used for
applications such as food, pet food, beverage, dairy, industrial,
and healthcare. Lidding products are available in die-cut, daisy
chain and rollstock formats and are used for applications such as
food, dairy, beverage, industrial and healthcare.
The flexible packaging segment includes the modified atmosphere
packaging, specialty films and biaxially oriented nylon product
groups. Modified atmosphere packaging extends the shelf life of
perishable foods, while at the same time maintains or improves the
quality of the product. The packaging is used for a wide range of
markets and applications, including fresh and processed meats,
poultry, cheese, medical device packaging, high performance pouch
applications and high-barrier films for converting applications.
Specialty films include a full line of barrier and non-barrier
films which are ideal for converting applications such as printing,
laminating, and bag making, including shrink bags. Biaxially
oriented nylon film is stretched by length and width to add
stability for further conversion using printing, metalizing or
laminating processes and is ideal for food packaging applications
such as cheese, fluid and viscous liquids, and industrial
applications such as book covers and balloons.
Packaging machinery includes a full line of horizontal fill/seal
machines for preformed containers and vertical form/fill/seal pouch
machines for pumpable liquid and semi-liquid products and certain
dry products.
Revenue
Revenue in the third quarter of 2019 was $212.7 million, $7.9
million or 3.6 percent less than the third quarter of
2018. Volumes, in total, were down marginally from the prior
year comparable quarter by 1.0 percent. Volumes within the rigid
containers and flexible lidding operating segment receded by 5
percent in the quarter. A significant portion of the reduction in
volumes took place within the rigid containers product group due to
the loss of retort tray business and lower specialty beverage
shipments. Conversely, the lidding product group benefitted from
gains in specialty beverage die-cut lidding. The flexible packaging
operating segment experienced volume growth of 2 percent in the
quarter. For the modified atmosphere packaging product group,
modest volume growth reflected expansion within the Mexican market.
The packaging machinery operating segment had a strong quarter,
exceeding the 2018 third quarter by 20 percent. Selling price and
mix changes unfavorably influenced third quarter revenue by 2.5
percent as indexed customer selling prices followed the decrease in
raw material costs that has taken place in 2019. Foreign exchange
had a nominal impact on revenue in relation to the corresponding
prior year quarter.
For the first nine months of 2019, revenue decreased by 1.7
percent to $656.4 million from
$667.5 million in the corresponding
prior year period. Volumes were virtually unchanged,
declining by 0.5 percent. The rigid containers and flexible lidding
operating segment realized a 6 percent contraction in volumes. The
reduction in retort tray and specialty beverage container shipments
led to a decline in volumes for the rigid container product group.
In contrast, specialty beverage lidding was the main factor behind
the positive performance for the lidding product group. The
flexible packaging operating segment achieved a 4 percent
advancement in volumes. Biaxially oriented nylon volumes outpaced
the prior year by 14 percent due to inroads made at key accounts.
Volumes within the modified atmosphere packaging product group
advanced by 5 percent, reflecting gains at major North American
protein and dairy producers. For the packaging machinery operating
segment, growth was nearly 10 percent. Compared to 2018, selling
price and mix changes had a negative effect on revenue of 0.7
percent. The slight depreciation of the Canadian dollar in
comparison to its US counterpart had a minor negative impact on
revenue.
Gross Profit Margins
Gross profit margins expanded in the current quarter to 31.5
percent of revenue from the 30.3 percent of revenue recorded in the
third quarter of 2018. The customer selling price indexing
mechanisms in place, which represent 70 percent of the Company's
revenue, continued to have a favorable impact on margins as the
related adjustments were eclipsed by the corresponding fall in raw
material costs compared to those incurred a year earlier. In
addition, the Company benefitted from continued operational
improvements in reducing production waste and instituting lower
cost raw material substitutions.
For the first three quarters of 2019, gross profit margins of
31.6 percent of revenue climbed by 1.3 percentage points from the
2018 year-to-date level of 30.3 percent. This caused an increase in
EPS of 7.0 cents. The significant
decline in raw material costs has resulted in a widening gap
between selling prices and raw material costs and was the main
factor influencing the superior margins. This was complemented by
the significant progress that has been made in curtailing the
expenses relating to production waste and inventory
obsolescence.
During the third quarter of 2019, the weighted indexed purchased
cost of Winpak's eight primary raw materials experienced a slight
decrease compared to the second quarter of 2019, falling by 2.5
percent. Over the past twelve months, the decrease in the index was
more significant at 14.0 percent. The decline in the raw material
index was mainly due to the lower costs for polyethylene and
polypropylene resins.
Expenses and Other
Operating expenses, exclusive of foreign exchange, in the third
quarter of 2019 decreased at a similar rate relative to the decline
in sales volumes, thereby having a negligible impact on EPS.
Foreign exchange lowered EPS by 0.5
cents in the quarter due to the negative translation
differences on the revaluation of Canadian dollar monetary assets
and liabilities. The magnitude of cash and cash equivalents
increased during 2019 and as a result, net finance income
supplemented EPS by 1.0 cent for the
quarter.
On a year-to-date basis, operating expenses, adjusted for
foreign exchange, grew at a rate of 1.9 percent in contrast to the
drop in sales volumes, resulting in a decline in EPS of
2.5 cents. During the current year,
additional one-time personnel costs were incurred for a group of
employees due to the closure and relocation of an administration
office. Conversely, foreign exchange had a favorable impact of
2.0 cents on EPS due to the benefit
of converting the Company's net Canadian dollar expenses into US
funds at a lower average exchange rate. Additionally, net finance
income elevated EPS by 3.5 cents,
stemming from higher interest rates and the heightened level of
cash and cash equivalents on hand.
Capital Resources, Cash Flow and Liquidity
The
Company's cash and cash equivalents balance ended the third quarter
of 2019 at $415.2 million, an
increase of $19.7 million from the
end of the previous quarter. Winpak continued to generate robust
cash flows from operating activities before changes in working
capital of $48.3 million. Working
capital consumed cash of $4.7
million. Trade and other receivables grew by $5.1 million due to the timing of receipts. Cash
was utilized for plant and equipment additions of $14.9 million, income tax payments of
$8.6 million, dividends of
$1.5 million and other items totaling
$0.3 million while net finance income
generated $1.4 million.
For the first nine months of 2019, the cash and cash equivalents
balance rose by $70.9 million from
the start of the year. Cash flows generated from operating
activities before changes in working capital were exceptional at
$149.7 million. The net investment in
working capital increased by $2.5
million. Other uses of cash included plant and equipment
additions of $43.8 million, income
tax payments of $29.5 million,
dividend payments of $4.4 million and
other items amounting to $2.6
million. Net finance income provided cash of $4.0 million.
Summary of
Quarterly Results
|
|
Thousands of US
dollars, except per share amounts (US cents)
|
|
|
|
|
|
|
|
|
|
|
Q3
|
Q2
|
Q1
|
Q4
|
Q3
|
Q2
|
Q1
|
Q4
|
|
2019
|
2019
|
2019
|
2018
|
2018
|
2018
|
2018
|
2017*
|
|
|
|
|
|
|
|
|
|
Revenue
|
212,734
|
219,618
|
224,035
|
222,138
|
220,647
|
225,191
|
221,665
|
222,323
|
Net income
attributable to equity holders
|
|
|
|
|
|
|
|
|
of the
Company
|
28,578
|
31,086
|
28,429
|
26,683
|
27,835
|
28,042
|
26,361
|
39,633
|
EPS
|
44
|
48
|
44
|
41
|
43
|
43
|
41
|
61
|
The Company has initially applied IFRS 16 "Leases" at
December 31, 2018 and IFRS 15
"Revenue From Contracts With Customers" and IFRS 9 "Financial
Instruments" at January 1, 2018.
Under the transition methods chosen by the Company, comparative
information has not been restated.
*Includes the one-time income tax recovery of 17 cents per share due to the revaluation of
deferred tax asset and liability balances within the US operations
as a result of US tax reform enacted in December 2017.
Subsequent Event
Effective October 1, 2019, the
Company signed a definitive agreement and closed the acquisition
with respect to all the business (net assets and building) of
privately owned Cheringal Associates, Inc. and Norwood Printing,
Inc. collectively ("Control Group") located in Norwood, New Jersey. The purchase price of US
$42.2 million was paid from cash
resources on hand. Control Group is a market leader in delivering
specialized printed packaging solutions to the pharmaceutical,
healthcare, nutraceutical, cosmetic and personal care markets.
Looking Forward
Business Outlook
The Company is anticipating revenue and earnings results in the
fourth quarter to be comparable to that of the other quarters of
the year. Year-to-date, sales volumes and selling price and mix
changes have been slightly negative; similar sales volume levels
within the Company's operating segments are expected in the last
quarter of 2019. Winpak remains in pursuit of new revenue growth
opportunities and has secured new business which will provide the
impetus for expanding sales volumes in the first quarter of 2020.
The Company continues to realize lower operational costs from
reducing production waste and implementing more economical raw
material formulations, both of which will remain a key focal point.
The acquisition of Control Group will provide a positive
contribution to revenue and earnings in the fourth quarter and
onwards. During the third quarter, the Canadian dollar strengthened
in relation to the US dollar, creating some headwinds on earnings
in the last quarter of the year. Raw material costs for the
Company's core resins have declined in 2019 mainly due to lower
polyethylene and polypropylene pricing. In the fourth quarter,
gross profit margins are expected to contract marginally from lower
selling prices as 70 percent of the Company's revenue is indexed to
the price of raw materials albeit with a three to four-month time
lag. For the final quarter of 2019, resin costs are forecasted to
remain relatively stable with negligible movement on certain
resins.
Capital expenditures in the range of $60
million are projected for 2019. A new extrusion line is
expected to commence production in the first quarter of 2020 at the
Senoia, Georgia specialty films
location. In addition, capacity from a polypropylene thermoforming
line is scheduled to be commercial in the second quarter of next
year at the Sauk Village, Illinois
rigid container facility. The building expansion and new
state-of-the-art biaxially oriented polyamide (BOPA) line in
Winnipeg, Manitoba continues to
proceed with an expected start-up by the end of 2020. To deliver
organic growth opportunities, Winpak will continue to focus on
capital expenditures that augment its technical capabilities in
material science developments and new production technologies and
processes enabling the Company to expand its offering of
recycle-ready products to customers in the North American plastic
packaging market. With Winpak's strong financial position, the
Company will continue to evaluate acquisition prospects that
strategically fit and align with its core competencies in
sophisticated packaging for food, beverage and health care
applications providing long-term shareholder value.
Winpak Ltd.
Interim Condensed Consolidated
Financial Statements
Third Quarter Ended: September 29, 2019
These interim condensed consolidated financial statements have
not been audited or reviewed by the Company's independent external
auditors, KPMG LLP. For a complete set of notes to the condensed
consolidated financial statements, refer to www.sedar.com or the
Company's website, www.winpak.com.
Winpak
Ltd.
|
|
|
|
Condensed
Consolidated Balance Sheets
|
|
|
|
(thousands of US
dollars) (unaudited)
|
|
|
|
|
|
|
|
|
September
29
|
|
December
30
|
|
2019
|
|
2018*
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
415,181
|
|
344,322
|
Trade and other
receivables
|
135,255
|
|
131,851
|
Income taxes
receivable
|
1,143
|
|
1,294
|
Inventories
|
130,160
|
|
132,318
|
Prepaid
expenses
|
3,372
|
|
2,761
|
Derivative financial
instruments
|
153
|
|
-
|
|
685,264
|
|
612,546
|
|
|
|
|
Non-current
assets:
|
|
|
|
Property, plant and
equipment
|
470,046
|
|
453,867
|
Intangible
assets
|
14,067
|
|
14,311
|
Employee benefit plan
assets
|
8,492
|
|
7,507
|
Deferred tax
assets
|
691
|
|
707
|
|
493,296
|
|
476,392
|
Total
assets
|
1,178,560
|
|
1,088,938
|
|
|
|
|
Equity and
Liabilities
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
Trade payables and
other liabilities
|
65,031
|
|
63,687
|
Contract
liabilities
|
1,528
|
|
3,031
|
Provisions
|
149
|
|
-
|
Income taxes
payable
|
2,211
|
|
3,753
|
Derivative financial
instruments
|
95
|
|
2,697
|
|
69,014
|
|
73,168
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
Employee benefit plan
liabilities
|
12,337
|
|
11,108
|
Deferred
income
|
14,474
|
|
14,786
|
Provisions and other
long-term liabilities
|
3,179
|
|
660
|
Deferred tax
liabilities
|
43,229
|
|
41,313
|
|
73,219
|
|
67,867
|
Total
liabilities
|
142,233
|
|
141,035
|
|
|
|
|
Equity:
|
|
|
|
Share
capital
|
29,195
|
|
29,195
|
Reserves
|
38
|
|
(2,264)
|
Retained
earnings
|
976,951
|
|
893,279
|
Total equity
attributable to equity holders of the Company
|
1,006,184
|
|
920,210
|
Non-controlling
interests
|
30,143
|
|
27,693
|
Total
equity
|
1,036,327
|
|
947,903
|
Total equity and
liabilities
|
1,178,560
|
|
1,088,938
|
|
*The Company has
initially applied IFRS 16 "Leases" at December 31, 2018. Under the
transition method chosen by the Company,
|
comparative
information has not been restated.
|
Winpak
Ltd.
|
|
|
|
|
|
|
|
Condensed
Consolidated Statements of Income
|
|
|
|
|
|
|
|
(thousands of US
dollars, except per share amounts) (unaudited)
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Year-To-Date
Ended
|
|
September
29
|
|
September
30
|
|
September 29
|
|
September
30
|
|
2019
|
|
2018*
|
|
2019
|
|
2018*
|
|
|
|
|
|
|
|
|
Revenue
|
212,734
|
|
220,647
|
|
656,387
|
|
667,503
|
Cost of
sales
|
(145,619)
|
|
(153,828)
|
|
(448,883)
|
|
(465,401)
|
Gross
profit
|
67,115
|
|
66,819
|
|
207,504
|
|
202,102
|
|
|
|
|
|
|
|
|
Sales, marketing and
distribution expenses
|
(15,930)
|
|
(16,795)
|
|
(50,849)
|
|
(52,112)
|
General and
administrative expenses
|
(8,041)
|
|
(7,793)
|
|
(24,660)
|
|
(23,468)
|
Research and
technical expenses
|
(4,223)
|
|
(4,223)
|
|
(12,681)
|
|
(12,325)
|
Pre-production
expenses
|
(187)
|
|
-
|
|
(347)
|
|
(115)
|
Other
expenses
|
(537)
|
|
(3)
|
|
(348)
|
|
(545)
|
Income from
operations
|
38,197
|
|
38,005
|
|
118,619
|
|
113,537
|
Finance
income
|
2,175
|
|
1,524
|
|
6,566
|
|
3,539
|
Finance
expense
|
(811)
|
|
(911)
|
|
(2,761)
|
|
(2,847)
|
Income before income
taxes
|
39,561
|
|
38,618
|
|
122,424
|
|
114,229
|
Income tax
expense
|
(10,099)
|
|
(9,967)
|
|
(31,881)
|
|
(29,893)
|
Net income for the
period
|
29,462
|
|
28,651
|
|
90,543
|
|
84,336
|
|
|
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
|
|
|
Equity holders of the
Company
|
28,578
|
|
27,835
|
|
88,093
|
|
82,238
|
Non-controlling
interests
|
884
|
|
816
|
|
2,450
|
|
2,098
|
|
29,462
|
|
28,651
|
|
90,543
|
|
84,336
|
|
|
|
|
|
|
|
|
Basic and diluted
earnings per share - cents
|
44
|
|
43
|
|
136
|
|
127
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed
Consolidated Statements of Comprehensive Income
|
|
|
|
|
|
|
|
(thousands of US
dollars) (unaudited)
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Year-To-Date
Ended
|
|
September
29
|
|
September
30
|
|
September
29
|
|
September
30
|
|
2019
|
|
2018*
|
|
2019
|
|
2018*
|
|
|
|
|
|
|
|
|
Net income for the
period
|
29,462
|
|
28,651
|
|
90,543
|
|
84,336
|
|
|
|
|
|
|
|
|
Items that will not
be reclassified to the statements of income:
|
|
|
|
|
|
|
|
Cash flow hedge
(losses) gains recognized
|
(103)
|
|
(34)
|
|
399
|
|
67
|
Cash flow hedge
losses (gains) transferred to property, plant and
equipment
|
158
|
|
55
|
|
666
|
|
(180)
|
Income tax
effect
|
-
|
|
-
|
|
-
|
|
-
|
|
55
|
|
21
|
|
1,065
|
|
(113)
|
Items that are or may
be reclassified subsequently to the statements of
income:
|
|
|
|
|
|
|
|
Cash flow hedge
(losses) gains recognized
|
(481)
|
|
594
|
|
795
|
|
(726)
|
Cash flow hedge
losses transferred to the statements of income
|
40
|
|
299
|
|
895
|
|
62
|
Income tax
effect
|
117
|
|
(239)
|
|
(453)
|
|
178
|
|
(324)
|
|
654
|
|
1,237
|
|
(486)
|
Other
comprehensive (loss) income for the period - net of income
tax
|
(269)
|
|
675
|
|
2,302
|
|
(599)
|
Comprehensive
income for the period
|
29,193
|
|
29,326
|
|
92,845
|
|
83,737
|
|
|
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
|
|
|
Equity holders of the
Company
|
28,309
|
|
28,510
|
|
90,395
|
|
81,639
|
Non-controlling
interests
|
884
|
|
816
|
|
2,450
|
|
2,098
|
|
29,193
|
|
29,326
|
|
92,845
|
|
83,737
|
|
|
|
|
|
|
|
|
|
*The Company has
initially applied IFRS 16 "Leases" at December 31, 2018. Under
the transition method chosen by the Company,
|
comparative
information has not been restated.
|
Winpak
Ltd.
|
|
|
|
|
|
|
Condensed
Consolidated Statements of Changes in Equity
|
|
|
|
|
|
|
(thousands of US
dollars) (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to
equity holders of the Company
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-
|
|
|
Share
|
|
Retained
|
|
controlling
|
|
|
capital
|
Reserves
|
earnings
|
Total
|
interests
|
Total
equity
|
|
|
|
|
|
|
|
Balance at January
1, 2018*
|
29,195
|
596
|
788,636
|
818,427
|
25,037
|
843,464
|
|
|
|
|
|
|
|
Comprehensive (loss)
income for the period
|
|
|
|
|
|
|
Cash flow hedge
losses, net of tax
|
-
|
(464)
|
-
|
(464)
|
-
|
(464)
|
Cash flow hedge losses
transferred to the statements
|
|
|
|
|
|
|
of income, net of
tax
|
-
|
45
|
-
|
45
|
-
|
45
|
Cash flow hedge gains
transferred to property, plant and
|
|
|
|
|
|
|
equipment
|
-
|
(180)
|
-
|
(180)
|
-
|
(180)
|
Other comprehensive
loss
|
-
|
(599)
|
-
|
(599)
|
-
|
(599)
|
Net income for the
period
|
-
|
-
|
82,238
|
82,238
|
2,098
|
84,336
|
Comprehensive
(loss) income for the period
|
-
|
(599)
|
82,238
|
81,639
|
2,098
|
83,737
|
|
|
|
|
|
|
|
Dividends
|
-
|
-
|
(4,505)
|
(4,505)
|
-
|
(4,505)
|
|
|
|
|
|
|
|
Balance at
September 30, 2018*
|
29,195
|
(3)
|
866,369
|
895,561
|
27,135
|
922,696
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at
December 31, 2018
|
29,195
|
(2,264)
|
893,279
|
920,210
|
27,693
|
947,903
|
|
|
|
|
|
|
|
Comprehensive income
for the period
|
|
|
|
|
|
|
Cash flow hedge gains,
net of tax
|
-
|
981
|
-
|
981
|
-
|
981
|
Cash flow hedge losses
transferred to the statements
|
|
|
|
|
|
|
of income, net of
tax
|
-
|
655
|
-
|
655
|
-
|
655
|
Cash flow hedge losses
transferred to property, plant and
|
|
|
|
|
|
|
equipment
|
-
|
666
|
-
|
666
|
-
|
666
|
Other comprehensive
income
|
-
|
2,302
|
-
|
2,302
|
-
|
2,302
|
Net income for the
period
|
-
|
-
|
88,093
|
88,093
|
2,450
|
90,543
|
Comprehensive income
for the period
|
-
|
2,302
|
88,093
|
90,395
|
2,450
|
92,845
|
|
|
|
|
|
|
|
Dividends
|
-
|
-
|
(4,421)
|
(4,421)
|
-
|
(4,421)
|
|
|
|
|
|
|
|
Balance at
September 29, 2019
|
29,195
|
38
|
976,951
|
1,006,184
|
30,143
|
1,036,327
|
|
*The Company has
initially applied IFRS 16 "Leases" at December 31, 2018. Under the
transition method chosen by the Company,
|
comparative
information has not been restated.
|
Winpak
Ltd.
|
|
|
|
|
|
|
|
Condensed
Consolidated Statements of Cash Flows
|
|
|
|
|
|
|
|
(thousands of US
dollars) (unaudited)
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Year-To-Date
Ended
|
|
September
29
|
|
September
30
|
|
September
29
|
|
September
30
|
|
2019
|
|
2018*
|
|
2019
|
|
2018*
|
|
|
|
|
|
|
|
|
Cash provided by
(used in):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
activities:
|
|
|
|
|
|
|
|
Net income for the
period
|
29,462
|
|
28,651
|
|
90,543
|
|
84,336
|
Items not involving
cash:
|
|
|
|
|
|
|
|
Depreciation
|
10,834
|
|
10,389
|
|
31,720
|
|
30,667
|
Amortization -
deferred income
|
(381)
|
|
(403)
|
|
(1,136)
|
|
(1,185)
|
Amortization -
intangible assets
|
114
|
|
113
|
|
346
|
|
392
|
Employee defined
benefit plan expenses
|
785
|
|
974
|
|
2,549
|
|
2,844
|
Net finance
income
|
(1,364)
|
|
(613)
|
|
(3,805)
|
|
(692)
|
Income tax
expense
|
10,099
|
|
9,967
|
|
31,881
|
|
29,893
|
Other
|
(1,207)
|
|
(1,549)
|
|
(2,390)
|
|
(2,336)
|
Cash flow from
operating activities before the following
|
48,342
|
|
47,529
|
|
149,708
|
|
143,919
|
Change in working
capital:
|
|
|
|
|
|
|
|
Trade and other
receivables
|
(5,126)
|
|
(6,654)
|
|
(3,404)
|
|
(15,426)
|
Inventories
|
1,448
|
|
(4,815)
|
|
2,158
|
|
(14,100)
|
Prepaid
expenses
|
772
|
|
469
|
|
(611)
|
|
(754)
|
Trade payables and
other liabilities
|
(1,847)
|
|
(6,784)
|
|
824
|
|
2,344
|
Contract
liabilities
|
61
|
|
1,811
|
|
(1,503)
|
|
2,902
|
|
|
|
|
|
|
|
|
Employee defined
benefit plan contributions
|
(116)
|
|
(114)
|
|
(2,207)
|
|
(1,945)
|
Income tax
paid
|
(8,637)
|
|
(4,673)
|
|
(29,540)
|
|
(26,307)
|
Interest
received
|
2,086
|
|
1,491
|
|
6,445
|
|
3,452
|
Interest
paid
|
(671)
|
|
(811)
|
|
(2,440)
|
|
(2,593)
|
Net cash from
operating activities
|
36,312
|
|
27,449
|
|
119,430
|
|
91,492
|
|
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
|
|
Acquisition of
property, plant and equipment - net
|
(14,908)
|
|
(22,208)
|
|
(43,770)
|
|
(55,222)
|
Acquisition of
intangible assets
|
(68)
|
|
(38)
|
|
(103)
|
|
(153)
|
|
(14,976)
|
|
(22,246)
|
|
(43,873)
|
|
(55,375)
|
|
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
|
|
Payment of lease
liabilities
|
(112)
|
|
-
|
|
(321)
|
|
-
|
Dividends
paid
|
(1,488)
|
|
(1,484)
|
|
(4,377)
|
|
(4,547)
|
|
(1,600)
|
|
(1,484)
|
|
(4,698)
|
|
(4,547)
|
|
|
|
|
|
|
|
|
Change in cash and
cash equivalents
|
19,736
|
|
3,719
|
|
70,859
|
|
31,570
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents, beginning of period
|
395,445
|
|
319,810
|
|
344,322
|
|
291,959
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents, end of period
|
415,181
|
|
323,529
|
|
415,181
|
|
323,529
|
|
|
|
|
|
|
|
|
*The Company has
initially applied IFRS 16 "Leases" at December 31, 2018. Under the
transition method chosen by the Company,
|
comparative
information has not been restated.
|
SOURCE Winpak Ltd.