Ccl Industries Inc. Class A · TSX:CCL.A
Ccl Industries Inc. Class A — Q1 2014 Earnings Presentation
16 slides from Ccl Industries Inc. Class A's earnings presentation, May 1, 2014
Slide 1: Investor Update 1st Quarter 2014 Review
CCL Industries Inc. Investor Update 1st Quarter 2014 Review May 1, 2014
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking information and forward-looking statements (hereinafter collectively referred to as “forward-looking statements”), as defined under applicable securities laws, that involve a number of risks and uncertainties. Forward-looking statements include a
Slide 3: Statement of Earnings
Statement of Earnings First Quarter Ended March 31st (Millions of Cdn$) Excluding Currency 2014 2013 Change Translation Sales $ 609.7 $ 363.6 +68% +60% Operating income* 88.6 61.9 +43% +35% Corporate expense 6.3 7.5 82.3 54.4 Finance cost, net 6.7 5.2 75.6 49.2 Restructuring and other items 0.9 1.3
Slide 4: Earnings per Class B Share
Earnings per Class B Share Periods Ended March 31st Twelve Three Months Months Per Class B Share 2014 2013 Change Net earnings - basic $ 1.54 $ 1.01 +52% Net loss from restructuring and other items 0.02 0.03 Adjusted basic earnings* $ 1.56 $ 1.04 +50% Adjusted basic earnings variance (after tax) due
Slide 5: Cash Flow Highlights
Cash Flow Highlights Periods Ended March 31st (Millions of Cdn$) Statement of Cash Flows Three Months Ended March 31st Free Cash Flow* 2014 2013 Net earnings $ 52.6 $ 34.1 194.7 Adjustments for: Depreciation & amortization 35.5 26.6 Net finance cost 6.7 5.2 97.3 Equity accounted investments (0.1) (0
Slide 6: Cash & Debt Summary
Cash & Debt Summary (Millions of Cdn$) March December March 2014 2013 2013 Senior Notes LTD (2014 - US$239.0MM) $ 264.2 $ 254.2 $ 324.1 Non-revolving LTD (2014 - US$270.0MM and EUR61.6MM) 392.3 388.1 - Revolving LTD (2014 - US$153.0MM) 169.1 59.6 - Debt - all other 10.4 10.1 9.4 Total debt 836.0 712
Slide 7: Capital Spending Highlights
Capital Spending Highlights Three Months Ended March 31st (Millions of Cdn$) Capital (1) Divisions Spending Depreciation Difference Label $ 46.5 $ 26.8 $ 19.7 Container $ 9.6 3.5 6.1 Avery $ 3.8 3.0 0.8 $ 59.9 $ 33.3 $ 26.6 ( 1) excludes amortization of intangibles and other assets • $25 million int
Slide 8: Label
Label First Quarter Ended March 31st (Millions of Cdn$) Excluding Currency 2014 2013 Change Translation Sales $ 423.8 $ 312.2 +36% +27% Operating income* $ 69.5 $ 56.6 +23% +14% Return on sales 16.4% 18.1% EBITDA* $ 97.9 $ 79.4 +23% +15% % of Sales 23.1% 25.4% The following commentary is based on co
Slide 9: Label North America (47% of Label sales)
Label First Quarter Ended March 31st (Millions of Cdn$) North America (47% of Label sales) • Healthcare & Specialty improved sequentially; still impacted by FDA quarantines. Slow AgChem season driven by weather • Home & Personal Care improved on market share gains in labels and tubes. Sancoa closed
Slide 10: Label Europe (36% of Label sales)
Label First Quarter Ended March 31st (Millions of Cdn$) Europe (36% of Label sales) (incl Eastern Europe) • Healthcare & Specialty sales improved, profitability declined on mix changes and FX issues in the UK but remained above average • Home & Personal Care posted strong sales gains and significant
Slide 11: Label Emerging Markets (17% of Label sales)
Label First Quarter Ended March 31st (Millions of Cdn$) Emerging Markets (17% of Label sales) (Asia, Latin America, Australia & South Africa) • Double digit sales gains in Latin America led by Mexico. Profitability impacted by inflationary cost pressures and the translation effect of the lower Brazi
Slide 12: Label Joint Ventures
Label Joint Ventures Periods Ended March 31st (Millions of Cdn$) Three Months Results at 100% 2014 2013 Sales $ 18.7 $ 16.0 Net income (loss) $ 0.1 $ 0.8 EBITDA $ 2.4 $ 2.3 % of Sales 12.8% 14.4% CCL equity share* $ 0.1 $ 0.4 • Ruble devaluation to the euro impacted profits in Russia • Soft quarter
Slide 13: Avery
Avery First Quarter March 31st (Millions of Cdn$) Excluding Currency 2014 2013 Change Translation Sales $ 132.9 $ - NM NM Operating income* $ 13.1 $ - NM NM Return on sales 9.9% - EBITDA* $ 16.5 $ - NM NM % of Sales 12.4% - • Seasonally slow quarter in North America, results significantly exceeded e
Slide 14: Container
Container First Quarter Ended March 31st (Millions of Cdn$) Excluding Currency 2014 2013 Change Translation Sales $ 53.0 $ 51.4 +3% (2%) Operating income* $ 6.0 $ 5.3 +13% +6% Return on sales 11.3% 10.3% EBITDA* $ 9.5 $ 8.9 +7% +0% % of Sales 17.9% 17.3% The following commentary is based on constant
Slide 15: Operating Income
Operating Income* First Quarter Ended March 31st (Millions of Cdn$) Excluding Currency 2014 2013 Change Translation Label $ 69.5 $ 56.6 +23% +14% Avery 13.1 - NM NM Container 6.0 5.3 +13% +6% Operating income* $ 88.6 $ 61.9 +43% +35% Sales $ 609.7 $ 363.6 +68% +60% Return on sales 14.5% 17.0% EBITDA
Slide 16: 2014 Outlook
2014 Outlook • Improving outlook in North America & Europe, but slower Emerging Markets growth plus FX transaction challenges • Avery back-to-school period a major factor to determine incremental profit conversion from cost synergies • Container transition underway; new line to be operational Q2 in