Ccl Industries Inc. Class A · TSX:CCL.A
Ccl Industries Inc. Class A — Q3 2013 Earnings Presentation
21 slides from Ccl Industries Inc. Class A's earnings presentation, Nov 11, 2013
Slide 1: Investor Update 3rd Quarter 2013 Review
CCL Industries Inc. Investor Update 3rd Quarter 2013 Review November 11, 2013
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 - Third Quarter
Statement of Earnings Third Quarter Ended September 30th (Millions of Cdn$) Excluding Currency 2013 2012 Change Translation Sales $ 606.6 $ 316.6 +92% +87% Operating income* 67.8 39.3 +73% +67% Corporate expense 9.3 6.1 +52% 58.5 33.2 Finance cost, net 7.7 5.3 +45% 50.8 27.9 Restructuring and other
Slide 4: Statement of Earnings - Nine Months
Statement of Earnings Nine Months Ended September 30th (Millions of Cdn$) Excluding Currency 2013 2012 Change Translation Sales $ 1,331.7 $ 995.1 +34% +32% Operating income* 179.9 139.8 +29% +26% Corporate expense 23.7 19.1 +24% 156.2 120.7 Finance cost, net 18.9 15.8 +20% 137.3 104.9 Restructuring
Slide 5: Earnings per Class B Share
Earnings per Class B Share Periods Ended September 30th Three Months Nine Months Per Class B Share 2013 2012 Change 2013 2012 Change Net earnings - basic $ 0.68 $ 0.64 +6% $ 2.46 $ 2.32 +6% Net loss from restructuring and other items 0.36 - 0.42 - Avery and DES finance costs - - 0.02 - Non-cash acqu
Slide 6: Cash Flow Highlights
Cash Flow Highlights Periods Ended September 30th (Millions of Cdn$) Free Cash Flow* 187.6 Statement of Cash Flows Nine Months Ended September 30th 2013 2012 132.2 Net earnings $ 84.1 $ 77.6 Adjustments for: 100.5 Depreciation & amortization 86.6 76.2 Net finance cost 18.9 15.8 Equity accounted inve
Slide 7: Cash & Debt Summary
Cash & Debt Summary As At September 30th (Millions of Cdn$) Increase 2013 2012 (Decrease) Senior Notes LTD (2013 - US$ 239.0MM, 2012 - US$ 319.0 MM) $ 246.2 $ 313.6 $ (67.4) Non-revolving LTD 2013 - US$ 290.2 and EUR 61.6MM) 384.7 - 384.7 Revolving LTD (2013 - US$ 158.1MM) 162.9 - 162.9 Debt - all o
Slide 8: Capital Spending Highlights
Capital Spending Highlights Nine Months Ended September 30th (Millions of Cdn$) Capital Divisions Spending Depreciation( 1 ) Difference Label $ 77.0 $ 67.8 $ 9.2 Container $ 5.0 10.6 (5.6) Avery $ 3.8 2.8 1.0 Corporate - 0.2 (0.2) $ 85.8 $ 81.4 $ 4.4 (1) excludes amort izat ion of int angibles and o
Slide 9: Segment Reporting Changes
Segment Reporting Changes • CCL Label now includes former DES operations in 4 market sectors – Healthcare & Specialty (includes one DES plant in North America) – Home & Personal Care (includes one DES plant in North America) – Food & Beverage – CCL Design (majority of DES business) • Avery…former “O
Slide 10: Label - Third Quarter
Label Third Quarter Ended September 30th (Millions of Cdn$) Excluding Currency 2013 2012 Change Translation Sales $ 360.3 $ 270.8 +33% +28% Operating income* $ 48.7 $ 35.6 +37% +31% Return on sales 13.5% 13.1% EBITDA* $ 76.5 $ 57.7 +33% +28% % of Sales 21.2% 21.3% The following commentary is based o
Slide 11: Label - North America
Label Third Quarter Ended September 30th (Millions of Cdn$) North America (45% of Label sales) • Healthcare & Specialty sector continued soft through the summer • Home & Personal Care gained share in soft market conditions reported by many customers • Food & Beverage mixed: strong growth in Wine & S
Slide 12: Label - Europe
Label Third Quarter Ended September 30th (Millions of Cdn$) Europe (36% of Label sales) (incl Eastern Europe) • Healthcare & Specialty growth impacted by mix and FX issues reducing profitability • Home & Personal Care posted sales gains and significant profit improvement from operational initiatives
Slide 13: Label - Emerging Markets
Label Third Quarter Ended September 30th (Millions of Cdn$) Emerging Markets (19% of Label sales) (Asia, Latin America, Australia & South Africa) • Strong double digit revenue gains in Latin America; aided by easy comps in Brazil. Profitability increased markedly but held by sequential FX deteriorat
Slide 14: Label - Nine Months Ended September 30th
Label Nine Months Ended September 30th (Millions of Cdn$) Excluding Currency 2013 2012 Change Translation Sales $ 982.5 $ 855.0 +15% +13% Operating income* $ 150.3 $ 129.4 +16% +14% Return on sales 15.3% 15.1% EBITDA* $ 224.6 $ 194.7 +15% +13% % of Sales 22.9% 22.8% The following commentary is based
Slide 15: Label Joint Ventures
Label Joint Ventures Periods Ended September 30th (Millions of Cdn$) Three Months Nine Months Results at 100% 2013 2012 2013 2012 Sales $ 18.2 $ 16.0 $ 52.7 $ 44.0 Net income (loss) $ 0.9 $ 0.4 $ 2.2 $ 2.1 EBITDA $ 2.7 $ 2.5 $ 7.8 $ 6.5 % of Sales 14.8% 15.6% 14.8% 14.8% CCL equity share* $ 0.5 $ 0.
Slide 16: Avery
Avery Third Quarter/Nine Months Ended September 30th (Millions of Cdn$) 2013 Sales $ 201.8 Operating income* $ 16.2 Return on sales 8.0% EBITDA* $ 34.0 % of Sales 16.8% • Seasonally strong “back-to-school” quarter drove exceptional cash flow • Revenue declined mid single digits, profitability improv
Slide 17: Container - Third Quarter
Container Third Quarter Ended September 30th (Millions of Cdn$) Excluding Currency 2013 2012 Change Translation Sales $ 44.5 $ 45.8 (3%) (7%) Operating income* $ 2.9 $ 3.7 (22%) (29%) Return on sales 6.5% 8.1% EBITDA* $ 6.4 $ 7.1 (10%) (14%) % of Sales 14.4% 15.5% The following commentary is based o
Slide 18: Container - Nine Months
Container Nine Months Ended September 30th (Millions of Cdn$) Excluding Currency 2013 2012 Change Translation Sales $ 147.4 $ 140.1 +5% +3% Operating income* $ 13.4 $ 10.4 +29% +25% Return on sales 9.1% 7.4% EBITDA* $ 24.0 $ 20.7 +16% +13% % of Sales 16.3% 14.8% The following commentary is based on
Slide 19: Operating Income - Third Quarter
Operating Income* Third Quarter Ended September 30th (Millions of Cdn$) Excluding Currency 2013 2012 Change Translation Label $ 48.7 $ 35.6 +37% +31% Avery 16.2 - +100% - Container 2.9 3.7 (22%) (29%) Operating income* $ 67.8 $ 39.3 +73% +67% Sales $ 606.6 $ 316.6 +92% +87% Return on sales 11.2% 12.
Slide 20: Operating Income - Nine Months
Operating Income* Nine Months Ended September 30th (Millions of Cdn$) Excluding Currency 2013 2012 Change Translation Label $ 150.3 $ 129.4 +16% +14% Avery 16.2 - - - Container 13.4 10.4 +100% +25% Operating income* $ 179.9 $ 139.8 +29% +26% Sales $ 1,331.7 $ 995.1 +34% +32% Return on sales 13.5% 14
Slide 21: Summary & Outlook
Summary & Outlook • Pleased with the acquisition integration process and financial performance; particularly cash flow. Reminder that Q3 will now be the seasonal high quarter for the year due to “back to school” • Expect to post a further $10-12 million in Q4 restructuring charges including the Mass