Business
Superior Plus Announces Second Quarter Results and Construction Products Distribution Acquisition
TSX: SPB CALGARY, Aug. 6 /CNW/ - HIGHLIGHTS
About this update from Superior Plus Corp
[{"type":"text","content":"\n\n\n\nTSX: SPB\n\n\nCALGARY, Aug. 6 /CNW/ -\n\n\nHIGHLIGHTS\n\n- The rapid decline in economic activity in the first half of 2009 was\n the most significant factor which contributed to reduced sales in all\n business segments. Superior's customers continued to conserve and\n reduce inventories due to the prolonged and deep impact of the global\n economic downturn. Superior continues to see positive signs that the\n economy has bottomed and is expected to improve in the last half of\n 2009.\n- Superior's revised forecast for adjusted operating cash flow per\n share is $1.95 - $2.10 in 2009 compared to $2.18 per share in 2008, a\n decrease of approximately 7% based upon the mid-point of the 2009\n financial outlook range.\n- Strong first quarter adjusted operating cash flow of $0.70 per share\n combined with a seasonal weak second quarter adjusted operating cash\n flow of $0.21 per share resulted in year-to-date adjusted operating\n cash flow of $0.91 per share, which was 14% lower than the 2008\n year-to-date period.\n- Gross profits were $134.9 million and $323.2 million for the second\n quarter and year-to-date, a decrease of 12% and 0%, respectively,\n compared to prior year periods. Gross profits in the current year\n were impacted by the recession resulting in reduced sales volumes.\n- Second quarter and year-to-date EBITDA from operations decreased by\n 41% and 10% to $31 million and $111 million, respectively, compared\n to prior year periods reflecting reduced sales volumes.\n- Four quarter trailing EBITDA was $232.4 million resulting in a Senior\n Debt to EBITDA ratio of 2.3x and a Total Debt to EBITDA ratio of 3.4x\n as at June 30, 2009.\n- The Port Edwards expansion project is on schedule and is being\n commissioned during the third quarter of 2009. The project is\n expected to start to provide a positive contribution in the fourth\n quarter with annualized incremental EBITDA of US$20 - $30 million at\n full capacity.\n- On August 6, 2009, Superior entered into a definitive agreement to\n acquire Specialty Products and Insulation Co. ("SPI") for the total\n aggregate purchase price of approximately US$135 million anticipated\n to close in September 2009. For details on the acquisition, please\n refer to press release entitled "Superior Plus Announces Expansion of\n its Construction Products Distributio...