Ccl Industries Inc. Class A · TSX:CCL.A
Ccl Industries Inc. Class A — Q1 2010 Earnings Presentation
20 slides from Ccl Industries Inc. Class A's earnings presentation, May 6, 2010
Slide 1: Our Global Advantages: Investor Update, First Quarter Review
OUR GLOBAL ADVANTAGES Investor Update First Quarter Review May 6th, 2010 CCL Industries Inc.
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking information and forward-looking statements, as defined under applicable securities laws, (hereinafter collectively referred to as “forward-looking statements”) 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 31 (Millions of Cdn$) Excluding Currency 2010 2009 Change Translation Sales $ 307.1 $ 314.1 (2.2%) +9% Operating Income 43.6 39.3 +10.9% Corporate Expense (4.8) (4.4) +9.1% 38.8 34.9 Interest expense, net 6.5 8.2 (20.7%) 32.3 26.7 Restructuring & other
Slide 4: Earnings per Class B Share
Earnings per Class B Share Periods Ended March 31st First Quarter Per Class B Share 2010 2009 Change Net earnings - Basic $ 0.71 $ 0.52 +36.5% Diluted earnings $ 0.70 $ 0.51 +37.3% Net loss from restructuring & other items $ - $ (0.04) Adjusted Basic Earnings $ 0.71 $ 0.56 +26.8% (a non-GAAP measure
Slide 5: Impact of Changes in Exchange Rates
Impact of Changes in Exchange Rates 1Q10 Act 2009 Act 2008 Act Impact of Currency vs. vs. vs. on E.P.S. 1Q09 Act 2008 Act 2007 Act Currency translation $ 0.06 $ 0.01 $- Currency transactions $ 0.02 $ (0.04) $ 0.01 Total Negative (Positive) Impact $ 0.08 $ (0.03) $ 0.01 Drivers: • In the quarter, the
Slide 6: Balance Sheet (selected items)
Balance Sheet (selected items) As at March 31st (Millions of Cdn$, except Book Value per Share) 2010 2009 Change Net working capital (receivables, inventory, prepaids, taxes receivable, payables, accruals and taxes payable) $ 74.5 $ 53.5 +39.3% Property, plant & equipment (net) $ 724.9 $ 848.9 (14.6
Slide 7: Debt Summary
Debt Summary As At March 31st (Millions of Cdn$) Increase 2010 2009 (Decrease) Long-term debt - senior notes (2010 - US$ 438.1 MM, 2009 - US$ 447.5 MM) $ 445.0 $ 564.4 $ (119.4) Long-term debt - all other 40.5 46.7 (6.2) Total debt 485.5 611.1 (125.6) Cash and cash equivalents (126.6) (106.9) (19.7)
Slide 8: Cash Flow Highlights
Cash Flow Highlights Three Months Ended March 31st (Millions of Cdn$) Inflows (Outflows) 2010 2009 Net earnings $ 23.3 16.8 Depreciation and amortization 23.7 24.6 Net change in non-cash working capital (39.7) (37.0) Capital spending on property, plant & equipment (21.2) (36.5) Future income taxes (
Slide 9: Capital Spending Highlights
Capital Spending Highlights Three Months Ended March 31st, 2010 (Millions of Cdn$) Capital Divisions Spending *Depreciation Difference Label $ 20.9 $ 16.7 $ 4.2 Container 0.2 3.5 $ (3.3) Tube 0.1 1.9 $ (1.8) Corporate - 0.1 $ (0.1) $ 21.2 $ 22.2 $ (1.0) * excludes amortization of intangibles and oth
Slide 10: Income from Operations
Income from Operations First Quarter Ended March 31st (Millions of Cdn$) 2010 2009 Change Label $ 43.2 $ 39.1 +10.5% Container (1.7) (0.3) n.m. Tube 2.1 0.5 n.m. Operating income 43.6 39.3 +10.9% Corporate expense (4.8) (4.4) +9.1% 38.8 34.9 Interest expense (net) (6.5) (8.2) (20.7%) Earnings before
Slide 11: Sales Analysis
Sales Analysis First Quarter Ended March 31st Acquisitions Organic FX & Disposals Total Label +8% (11%) - (3%) Container +14% (8%) - +6% Tube +13% (16%) - (3%) CCL Consolidated +9% (11%) - (2%) May 6, 2010
Slide 12: Label
Label First Quarter Ended March 31st Millions of Cdn$) Excluding Currency 2010 2009 Change Translation Sales $ 248.9 $ 257.5 (3.3%) / +8% Operating income $ 43.2 $ 39.1 +10.5% Return on sales 17.4% 15.2% EBITDA $ 61.4 $ 57.4 +7.0% % of Sales 24.7% 22.3% The following commentary is based on constant
Slide 13: Label: North America
Label First Quarter Ended March 31st (Millions of Cdn$) North America (39% of sales) • Slow start at Home and Personal Care (HPC) but rapid acceleration as the quarter progressed; strong order entry bodes well for Q2. • Growth rate moderated to mid single digits in Healthcare & Specialty as H1N1 sal
Slide 14: Label: Europe
Label First Quarter Ended March 31st (Millions of Cdn$) Europe (46% of sales) • Sales to HPC customers up well into double digits resulting in profits compared to Q1 2009 loss. • Healthcare & Specialty sales up mid single digit; while profits increased at a more rapid pace driven by mix. • Sales of
Slide 15: Label: Latin America
Label First Quarter Ended March 31st (Millions of Cdn$) Latin America (8% of sales) • Mid teens sales growth driving increases in profitability. • Mexico & Brazil growth at similar rates. Margins improved more rapidly in Mexico as our new plant continued to make productivity gains. • Currency pictur
Slide 16: Label: Asia and Australia/South Africa
Label First Quarter Ended March 31st (Millions of Cdn$) Asia (5% of sales) + AUS/ZA (2% of sales) • Growth rate remained outstanding in Asia; well into double digits. • All segments posted improved results in existing plants. • Start up expenses in new facilities in Thailand (Beverage & Specialty),
Slide 17: Label Outlook
Label Outlook First Quarter Ended March 31st (Millions of Cdn$) • Very solid order picture in Q1, continuing so far in Q2 . • Comps for Q2 are favourable in Europe where recessionary conditions were in place throughout the spring and early summer of 2009. Comps for the second half of 2010 will be ag
Slide 18: Container
Container First Quarter Ended March 31st (Millions of Cdn$) Excluding Currency Translation 2010 2009 Change Sales $ 40.3 $ 38.1 5.8% 14% Operating income $ (1.7) $ (0.3) n.m. Return on sales (4.2%) (0.8%) EBITDA $ 1.9 $ 3.3 (42.4%) % of Sales 4.7% 8.7% The following commentary is based on constant C
Slide 19: Container
Container First Quarter Ended March 31st (Millions of Cdn$) • All of the loss in our Canadian operation: FX on the U.S. dollar transactions and losses on natural gas hedges impacted profit comparisons negatively by $1.3 million. • Mexican operations posted solid profits, U.S. rebounded from a loss t
Slide 20: Tube
Tube First Quarter ended March 31st (Millions of Cdn$) Excluding Currency 2010 2009 Change Translation Sales $ 17.9 $ 18.4 (2.7%) +13% Operating income $ 2.1 $ 0.5 Return on sales 11.7% 2.7% EBITDA $ 4.0 $ 2.9 +37.9% % of Sales 22.3% 15.8% The following commentary is based on constant Canadian dolla