MISSISSAUGA, ON, March 19, 2014 /CNW Telbec/ - KP Tissue Inc. ("KPT") (TSX: KPT), which holds a limited partnership interest in Kruger Products L.P. ("KPLP"), releases the financial results for KPT and KPLP for the fourth quarter of 2013 and full year 2013. KPLP is Canada's leading manufacturer of quality tissue products for household and commercial use.
KP Tissue Inc. and Kruger Products L.P.
KPT was created to acquire, and its business is limited to holding, a
limited partnership interest in KPLP. As of December 31, 2013, KPT held
a 16.7% interest in KPLP, accounted for as an investment on the equity
basis. The financial results presented for KPT represent its holding in
KPLP during the fourth quarter of 2013 and during full year 2013. The
following discussion and analysis, unless identified specifically as
representing the financial results of only KPT, relates entirely to the
financial results of KPLP. Accordingly, the results of KPLP apply to
KPT only to the extent of its holding in KPLP.
On January 15, 2014, KPLP paid a distribution to its partners. Following the reinvestment by the partners of KPLP of a portion of such distribution pursuant to KPLP's distribution reinvestment plan, KPT held a 16.7% interest in KPLP.
KPLP Highlights
Q4 2013 Highlights
- Continued to expand overall market share in Canada and maintained number one position
- Revenue of $242.9 million in Q4 2013, the same as in Q4 2012
- EBITDA of $28.3 million in Q4 2013 compared to $23.0 million in Q4 2012, an increase of 22.5 percent
- TAD Project progressing well, EBITDA contribution of $4.1 million in Q4 2013
Full Year Highlights
- Revenue of $955.3 million in fiscal 2013, compared to $922.9 million in fiscal 2012, an increase of 3.5 percent
- EBITDA of $116.2 million in fiscal 2013, compared to $110.9 million in fiscal 2012, an increase of 4.8 percent
- Net income of $48.9 million in fiscal 2013 compared to $41.4 million in fiscal 2012, an increase of 18.2 percent
"In 2013, we realized a number of achievements. First, we completed the extensive construction phase of our TAD Project in the U.S. on-time and on-budget, and then successfully began the ramp up of the manufacturing and sales of our TAD products. In addition, I'm pleased to report that we again strengthened our market share position and continued to be the leader in the Canadian tissue market. Finally, our EBITDA for the year reached $116.2 million, despite significantly higher commodity costs," said Mario Gosselin, CEO of KP Tissue and KPLP.
"Late in 2013, our business was impacted by extreme weather conditions. We also began to implement programs designed to offset the impact of higher pulp and energy costs, and considering the continued rise in pulp prices in year-to-date 2014, we will need to consider additional programs to offset the negative impact. In the current fiscal year, in addition to the TAD Project ramp-up, we will also turn our attention to other high return CAPEX projects.
"We are pleased to report that the TAD Project contributed positive EBITDA of $4.1 million in the fourth quarter. We continue to expect to achieve our TAD EBITDA target of $60 million by 2017, and in 2014 we anticipate TAD EBITDA in the $20 to $25 million range.
"We estimate that Q1 2014 EBITDA will be similar to slightly above Q1 2013 due to current market conditions, including higher input costs. Similar to 2013, we expect a sequential improvement in Q2 2014 results reflecting higher promotional activities during the second quarter," concluded Mr. Gosselin.
KPLP Q4 2013 Financial Results
Revenue in Q4 2013 was $242.9 million, the same as in Q4 2012, including
the impact of 6 fewer days of sales in Q4 2013 compared to Q4 2012. An
increase in Consumer segment revenue resulting from new business
related to the TAD Project and the favourable impact of foreign
exchange on U.S. based sales was offset by a decrease in AFH segment
revenue.
Cost of sales in Q4 2013 were $173.1 million, compared to $172.4 million in Q4 2012. The impact of increases in commodity prices, particularly pulp fibre and natural gas, and the unfavourable impact of foreign exchange was partially offset by the impact of 6 fewer days of sales in Q4 2013 compared to Q4 2012. As a percentage of revenue, cost of sales increased to 71.2 percent in Q4 2013 from 71.0 percent in Q4 2012.
Operating expenses in Q4 2013 were $52.2 million, compared to $59.7 million in Q4 2012. Operating expenses decreased due to: the impact of 6 fewer days in Q4 2013 compared to Q4 2012; lower freight and selling expenses as a result of changes in sales mix; lower advertising and promotion expenses; a lower management fee in Q4 2013; and direct and incremental costs related to the TAD Project and reorganization expenses incurred in Q4 2012.
EBITDA in Q4 2013 was $28.3 million, compared to $23.0 million in Q4 2012 primarily due to the decrease in operating expenses. TAD Project EBITDA was $4.1 million in Q4 2013. EBITDA in Q4 2012 included $1.8 million of direct and incremental expenses without any corresponding revenue for the TAD Project.
Net income in Q4 2013 was $7.6 million, compared to $5.4 million in Q4 2012. Net income increased primarily due to higher EBITDA, partially offset by higher interest expense and a lower income tax credit in Q4 2013.
The cash balance as of December 31, 2013 was $87.7 million, compared to $87.8 million as of September 29, 2013. Cash from operating activities improved while additional cash was used in investing and financing activities.
KPLP Full Year Financial Results
Revenue was $955.3 million in fiscal 2013 compared to $922.9 million in
fiscal 2012. The increase in revenue was primarily due to higher sales
volumes in Canada and new business related to the TAD Project.
EBITDA was $116.2 million in fiscal 2013 compared to $110.9 million in fiscal 2012. The increase in EBITDA was primarily driven by the increase in revenue, offset somewhat by lower operating margins due to higher commodity costs and operating expenses.
Net income was $48.9 million in fiscal 2013 compared to $41.4 million in fiscal 2012. The increase in net income was primarily due to higher EBITDA, the income tax recovery and a net recovery related to restructuring activities, partially offset by increased interest and depreciation expenses.
KPT Highlights
Q4 2013 Highlights
- Net loss of $0.8 million in Q4 2013
- Loss per share of $0.08 in Q4 2013
- Declared quarterly dividend of $0.18 per share, payable April 15, 2014
Full Year Highlights
- Net loss of $0.3 million in Fiscal 2013
- Loss per share of $0.03 in Fiscal 2013
KPT Q4 2013 Financial Results
Included in the net loss of $0.8 million in Q4 2013 was $1.3 million
representing KPT's share of KPLP's profit. The profit was offset by
depreciation expense of $1.7 million related to adjustments to carrying
amounts on acquisition, and income tax expense of $0.4 million.
KPT Full Year Financial Results
Included in the net loss of $0.3 million in Fiscal 2013 was $8.2 million
representing KPT's share of KPLP's profit. The profit was offset
primarily by depreciation expense of $7.1 million related to
adjustments to carrying amounts on acquisition, and income tax expense
of $2.0 million.
KPLP Distribution
KPLP will pay a distribution of $0.18 per KPLP unit to its partners on
or prior to April 15, 2014.
Dividends on Common Shares
The Board of Directors of KP Tissue Inc. declared a quarterly dividend
of $0.18 per share to be paid on April 15, 2014 to shareholders of
record at the close of business on March 31, 2014.
Conference Call Information
KPT will hold its fourth quarter conference call on Wednesday, March 19,
2014 at 8:30 a.m. Eastern Time.
Details of conference call:
Via telephone: 1-888-231-8191 or 647-427-7450
Via the internet at: www.kptissueinc.com
Presentation material referenced during the conference call will be available at www.kptissueinc.com.
Conference Call Rebroadcast
A rebroadcast of the conference call will be available until midnight,
April 16, 2014 by dialing 1-855-859-2056 or 416-849-0833 and entering
passcode 47011329.
The replay of the webcast will remain available on the web site until midnight, April 16, 2014.
About KP Tissue Inc.
KPT was created to acquire, and its business is limited to holding, a
limited partnership interest in KPLP. For more information visit www.kptissueinc.com.
About Kruger Products L.P.
KPLP is Canada's leading manufacturer of quality tissue products for
household, industrial and commercial use. KPLP serves the Canadian
consumer market with such well-known brands as Cashmere®, Purex®,
SpongeTowels®, Scotties®' and White Swan®. In the U.S., KPLP
manufactures the White Cloud® brand, as well as many private label
products. The Away-From-Home division manufactures and distributes
high-quality, cost-effective product solutions to a wide range of
commercial and public entities. KPLP has approximately 2,300 employees
across North America and operates five FSC® CoC- certified mills (FSC®
C104904), four of which are located in Canada and one in the US. For
more information visit www.krugerproducts.ca.
Non-IFRS Measures
This press release uses certain non-IFRS financial measures and ratios
which KPLP believes provide useful information to both management of
KPLP and the readers of the financial information in measuring the
financial performance and financial condition of KPLP. These measures
do not have a standardized meaning prescribed by IFRS and therefore may
not be comparable to similarly titled measures presented by other
companies. An example of such measures is EBITDA. EBITDA is not a
measurement of operating performance computed in accordance with IFRS
and should not be considered as a substitute for operating income, net
income or cash flows from operating activities computed in accordance
with IFRS. "EBITDA" is calculated by KPLP as net income (loss) before
(i) interest expense, (ii) income taxes, (iii) depreciation,
(iv) amortization, (v) impairment of non-financial assets, (vi) loss
(gain) on disposal of property, plant and equipment, (vii) unrealized
foreign exchange loss (gain), and (viii) one-time costs related to
restructuring activities. A reconciliation of EBITDA to the relevant
reported results can be found in the Management's Discussion and
Analysis ("MD&A") of KPT and KPLP for the fourth quarter and fiscal
year ended December 31, 2013 available on SEDAR at www.sedar.com.
Forward-Looking Statements
Certain statements in this press release about KPT's and KPLP's current
and future plans, expectations and intentions, results, levels of
activity, performance, goals or achievements or any other future events
or developments constitute forward-looking statements. The words "may",
"will", "would", "should", "could", "expects", "plans", "intends",
"trends", "indications", "anticipates", "believes", "estimates",
"predicts", "likely" or "potential" or the negative or other variations
of these words or other comparable words or phrases, are intended to
identify forward-looking statements. The forward-looking information is
based on certain key expectations and assumptions made by KPT,
including expectations and assumptions concerning the impact of the TAD
Project on EBITDA. Although KPT believes that the expectations and
assumptions on which such forward-looking information is based are
reasonable, undue reliance should not be placed on the forward-looking
information since no assurance can be given that such expectations and
assumptions will prove to be correct.
Many factors could cause KPLP's actual results, level of activity, performance or achievements or future events or developments (which could in turn affect the economic benefits derived from the Corporation's economic interest in KPLP) to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, the following factors, which are discussed in greater detail in the "Risk Factors - Risks Related to KPLP's Business" section of the KPT Annual Information Form dated March 19, 2014 available on SEDAR at www.sedar.com: Kruger Inc.'s influence over KPLP; KPLP's reliance on Kruger Inc.; consequences of an event of insolvency relating to Kruger Inc.; risks associated with the TAD Project; operational risks; Gatineau Plant land lease; significant increases in prices; reduction in supply of fibre; increased pricing pressure and intense competition; KPLP's inability to innovate effectively; adverse economic conditions; dependence on key retail trade customers; damage to the reputation of KPLP or KPLP's brands; KPLP's sales being less than anticipated; KPLP's failure to implement its business and operating strategies; KPLP's obligation to make regular capital expenditures; KPLP's entering into unsuccessful acquisitions; KPLP's dependence on key personnel; KPLP's inability to retain its existing customers or obtain new customers; KPLP's loss of key suppliers; KPLP's failure to adequately protect its intellectual property rights; KPLP's reliance on third party intellectual property licenses; adverse litigation and other claims affecting KPLP; material expenditures due to comprehensive environmental regulation affecting KPLP's cash flow; KPLP's pension obligations are significant and can be materially higher than predicted if KPLP Management's underlying assumptions are incorrect; labour disputes adversely affecting KPLP's cost structure and KPLP's ability to run its plants; exchange rate and U.S. competitors; KPLP's inability to service all of its indebtedness; exposure to potential consumer product liability, restrictive covenants; interest rate and refinancing risk; information technology and innovation; insurance; and internal controls.
Readers should not place undue reliance on forward-looking statements made herein. The forward-looking information contained herein is expressly qualified in its entirety by this cautionary statement. The forward-looking information contained herein is made as of the date of press release and KPT undertakes no obligation to publicly update such forward-looking information to reflect new information, subsequent or otherwise, unless required by applicable securities laws.
| Kruger Products L.P. | ||||
| Consolidated Statements of Financial Position | ||||
| (thousands of Canadian dollars) | ||||
| December 31, 2013 | December 31, 2012 | |||
| $ | $ | |||
| Assets | ||||
| Current assets | ||||
| Cash and cash equivalents | 87,674 | 121,489 | ||
| Trade and other receivables | 94,789 | 94,308 | ||
| Receivables from related parties | 1,429 | 668 | ||
| Inventories | 151,505 | 116,873 | ||
| Current portion of income tax recoverable | 630 | - | ||
| Prepaid expenses | 4,777 | 4,413 | ||
| 340,804 | 337,751 | |||
| Non-current assets | ||||
| Property, plant & equipment | 616,687 | 580,814 | ||
| Other long-term assets | 10,268 | 6,236 | ||
| Income tax recoverable | 14,132 | 3,443 | ||
| Goodwill | 152,021 | 152,021 | ||
| Intangible assets | 13,483 | 13,828 | ||
| Deferred income taxes | 14,141 | 1,178 | ||
| Total assets | 1,161,536 | 1,095,271 | ||
| Liabilities | ||||
| Current liabilities | ||||
| Trade and other payables | 188,470 | 186,309 | ||
| Payables to related parties | 5,134 | 9,057 | ||
| Distributions payable | 9,455 | - | ||
| Current portion of income tax payable | - | 571 | ||
| Current portion of provisions | 999 | 3,719 | ||
| Current portion of long-term debt | 8,276 | 3,802 | ||
| 212,334 | 203,458 | |||
| Non-current liabilities | ||||
| Long-term debt | 342,013 | 323,885 | ||
| Other long-term liabilities | 323 | 544 | ||
| Provisions | 6,615 | 5,506 | ||
| Pensions | 80,380 | 148,989 | ||
| Post-retirement benefits | 48,746 | 48,302 | ||
| Liabilities to non-unitholders | 690,411 | 730,684 | ||
| Current portion of Partnership units liability | 3,475 | - | ||
| Long-term portion of Partnership units liability | 114,364 | 118,562 | ||
| Total Partnership units liability | 117,839 | 118,562 | ||
| Total liabilities | 808,250 | 849,246 | ||
| Equity | ||||
| Partnership units | 282,672 | 257,516 | ||
| Retained earnings (deficit) | 50,945 | (14,736) | ||
| Accumulated other comprehensive income | 19,669 | 3,245 | ||
| Total equity | 353,286 | 246,025 | ||
| Total equity and liabilities | 1,161,536 | 1,095,271 | ||
| Kruger Products L.P. | |||||||||
| Consolidated Statements of Comprehensive Income (Loss) | |||||||||
| (thousands of Canadian dollars) | |||||||||
| Quarter ended | Year ended | ||||||||
| December 31, 2013 | December 31, 2012 | December 31, 2013 | December 31, 2012 | ||||||
| $ | $ | $ | $ | ||||||
| Revenue | 242,944 | 242,903 | 955,346 | 922,874 | |||||
| Expenses | |||||||||
| Cost of sales | 173,077 | 172,400 | 675,730 | 646,089 | |||||
| Operating expenses | 52,159 | 59,710 | 199,794 | 194,987 | |||||
| Impairment (recovery) of non-financial assets | - | (1,292) | (1,789) | 4,608 | |||||
| Restructuring costs | 1,372 | 791 | 1,372 | 9,391 | |||||
| Operating income | 16,336 | 11,294 | 80,239 | 67,799 | |||||
| Interest expense | 9,951 | 8,273 | 42,251 | 27,829 | |||||
| Income before income taxes | 6,385 | 3,021 | 37,988 | 39,970 | |||||
| Income taxes | (1,287) | (2,380) | (10,940) | (1,428) | |||||
| Net income for the year | 7,672 | 5,401 | 48,928 | 41,398 | |||||
| Other comprehensive income (loss) | |||||||||
| Items that will not be reclassified to net income: | |||||||||
| Remeasurement of pensions | 13,341 | 13,170 | 55,619 | (39,342) | |||||
| Remeasurement of post-retirement benefits | (910) | 4,693 | 599 | (102) | |||||
|
Items that may be subsequently reclassified to net income: |
- | - | |||||||
| Available-for-sale investment | (9) | - | 69 | - | |||||
| Cumulative translation adjustment | 8,487 | 3,245 | 16,355 | (3,969) | |||||
| Total other comprehensive income (loss) for the year | 20,909 | 21,108 | 72,642 | (43,413) | |||||
| Comprehensive income (loss) for the year | 28,581 | 26,509 | 121,570 | (2,015) | |||||
| Kruger Products L.P. | ||||||||
| Consolidated Statements of Cash Flows | ||||||||
| (thousands of Canadian dollars) | ||||||||
| Quarter ended | Year ended | |||||||
| December 31, 2013 | December 31, 2012 | December 31, 2013 | December 31, 2012 | |||||
| $ | $ | $ | $ | |||||
| Cash flows from operating activities | ||||||||
| Net income for the year | 7,672 | 5,401 | 48,928 | 41,398 | ||||
| Items not affecting cash | ||||||||
| Depreciation | 9,697 | 10,755 | 33,561 | 28,331 | ||||
| Amortization | 166 | 146 | 581 | 530 | ||||
| Loss (gain) on sale of fixed assets | (1) | 622 | (5) | 1,060 | ||||
| Change in amortized cost of Partnership units liability | (723) | - | (723) | - | ||||
| Unrealized foreign exchange (gain) loss | 1,426 | 773 | 2,992 | (777) | ||||
| Interest expense | 9,951 | 8,273 | 42,251 | 27,829 | ||||
| Pension and post retirement benefits | 2,373 | 2,140 | 9,959 | 9,393 | ||||
| Provisions | 103 | 154 | 800 | 9,613 | ||||
| Income taxes | (1,287) | (2,380) | (10,940) | (1,428) | ||||
| Impairment (recovery) of non-financial assets | - | (1,292) | (1,789) | 4,608 | ||||
| Total items not affecting cash | 21,705 | 19,191 | 76,687 | 79,159 | ||||
| Net change in non-cash working capital | 10,830 | 29,606 | (34,271) | 39,906 | ||||
| Contributions to pension and post-retirement benefit plans | (8,401) | (7,569) | (30,369) | (29,707) | ||||
| Provisions paid | (832) | (2,336) | (2,841) | (7,245) | ||||
| Income tax payments | (556) | 367 | (2,675) | (360) | ||||
| Net cash from operating activities | 30,418 | 44,660 | 55,459 | 123,151 | ||||
| Cash flows used in investing activities | ||||||||
| Purchase of property, plant & equipment | (8,711) | (6,157) | (20,265) | (17,652) | ||||
| Purchases of through-air-dried (TAD) expansion | (6,564) | (54,056) | (39,631) | (161,155) | ||||
| Interest paid on credit facilities related to TAD | - | (4,320) | - | (6,125) | ||||
| Available-for-sale investment | - | - | (836) | - | ||||
| Government grants received | - | - | 1,078 | - | ||||
| Purchases of software | (143) | (51) | (236) | (51) | ||||
| Proceeds on sale of property, plant and equipment | 1 | 16 | 5 | 199 | ||||
| Net cash used in investing activities | (15,417) | (64,568) | (59,885) | (184,784) | ||||
| Cash flows from (used in) financing activities | ||||||||
| Proceeds from credit facilities | - | 51,830 | 10,813 | 145,957 | ||||
| Repayment of credit facilities | (3,903) | (27,096) | (7,999) | (65,000) | ||||
| Payment of deferred financing fees | (29) | (26) | (641) | (26) | ||||
| Transfer of assets to related parties | - | 2,000 | - | (209) | ||||
| Interest paid on credit facilities | (6,495) | (3,290) | (27,676) | (17,720) | ||||
| Settlement of interest rate swap | - | - | - | (413) | ||||
| Distributions paid | (9,411) | (40,000) | (30,010) | (40,000) | ||||
| Equity issuance costs | - | (11,110) | (1,206) | (11,110) | ||||
| Proceeds from issuing partnership units | 4,082 | 140,000 | 26,362 | 140,000 | ||||
| Net cash from (used in) financing activities | (15,756) | 112,308 | (30,357) | 151,479 | ||||
|
Effect of exchange rate changes on cash and cash equivalents held in foreign currency |
615 | 342 | 968 | (154) | ||||
|
Increase (decrease) in cash and cash equivalents during the year |
(140) | 92,742 | (33,815) | 89,692 | ||||
| Cash and cash equivalents - Beginning of year | 87,814 | 28,747 | 121,489 | 31,797 | ||||
| Cash and cash equivalents - End of year | 87,674 | 121,489 | 87,674 | 121,489 | ||||
| Kruger Products L.P. | ||||||||
| Segment and Geographic Results | ||||||||
| (thousands of Canadian dollars) | ||||||||
| Quarter ended | Year ended | |||||||
| December 31, 2013 | December 31, 2012 | December 31, 2013 | December 31, 2012 | |||||
| $ | $ | $ | $ | |||||
| Segment Information | ||||||||
| Segment Revenue | ||||||||
| Consumer | 202,107 | 199,099 | 792,670 | 745,548 | ||||
| AFH | 38,698 | 41,708 | 154,304 | 156,632 | ||||
| Other | 2,139 | 2,096 | 8,372 | 20,694 | ||||
| Total segment revenue | 242,944 | 242,903 | 955,346 | 922,874 | ||||
| Segment EBITDA | ||||||||
| Consumer | 27,226 | 24,664 | 110,342 | 113,716 | ||||
| AFH | 1,275 | (1,757) | 6,608 | 3,008 | ||||
| Other | (228) | 182 | (722) | (5,782) | ||||
| Total segment EBITDA | 28,273 | 23,089 | 116,228 | 110,942 | ||||
| Reconciliation to Net Income: | ||||||||
| Depreciation and amortization | 9,863 | 10,901 | 34,142 | 28,861 | ||||
| Interest expense | 9,951 | 8,273 | 42,251 | 27,829 | ||||
| Loss (gain) on sale of fixed assets | (1) | 622 | (5) | 1,060 | ||||
| Change in amortized cost of Partnership units liability | (723) | - | (723) | - | ||||
| Restructuring costs | 1,372 | 791 | 1,372 | 9,391 | ||||
| Impairment (recovery) of non-financial assets | - | (1,292) | (1,789) | 4,608 | ||||
| Unrealized foreign exchange loss (gain) | 1,426 | 773 | 2,992 | (777) | ||||
| Income before income taxes | 6,385 | 3,021 | 37,988 | 39,970 | ||||
| Income taxes | (1,287) | (2,380) | (10,940) | (1,428) | ||||
| Net income for the period | 7,672 | 5,401 | 48,928 | 41,398 | ||||
| Geographic Revenue | ||||||||
| Canada | 172,234 | 176,903 | 688,173 | 662,952 | ||||
| U.S. | 63,590 | 58,135 | 239,225 | 231,532 | ||||
| Mexico | 7,120 | 7,865 | 27,948 | 28,390 | ||||
| Total Revenue | 242,944 | 242,903 | 955,346 | 922,874 | ||||
| KP Tissue Inc. | ||||
| Statements of Financial Position | ||||
| (thousands of Canadian dollars) | ||||
| December 31, 2013 | December 31, 2012 | |||
| $ | $ | |||
| Assets | ||||
| Current assets | ||||
| Distributions receivable | 1,583 | - | ||
| Non-current assets | ||||
| Deferred income taxes | - | 105 | ||
| Investment in associate | 161,584 | 139,499 | ||
| Total Assets | 163,167 | 139,604 | ||
| Liabilities | ||||
| Current liabilities | ||||
| Dividend payable | 1,583 | - | ||
| Income taxes payable | 580 | - | ||
| 2,163 | - | |||
| Non-current liabilities | ||||
| Deferred income taxes | 3,033 | - | ||
| Total liabilities | 5,196 | - | ||
| Equity | ||||
| Common shares | 9,068 | 140,000 | ||
| Contributed surplus | 144,819 | - | ||
| Retained earnings (deficit) | 709 | (583) | ||
| Accumulated other comprehensive income | 3,375 | 187 | ||
| Total equity | 157,971 | 139,604 | ||
| Total liabilities and equity | 163,167 | 139,604 | ||
| KP Tissue Inc. | ||||||||
| Statements of Comprenhensive Income (Loss) | ||||||||
| (thousands of Canadian dollars, except share and per share amounts) | ||||||||
| Quarter ended | Year ended | |||||||
| December 31, 2013 | December 31, 2012 | December 31, 2013 | December 31, 2012 | |||||
| $ | $ | $ | $ | |||||
| Equity income | (384) | (989) | 1,113 | (989) | ||||
| Gain on remeasurement of over allotment option | - | - | 375 | - | ||||
| Dilution gain | 59 | - | 240 | - | ||||
| Income (loss) before income taxes | (325) | (989) | 1,728 | (989) | ||||
| Income taxes | ||||||||
| Current | (312) | - | 580 | - | ||||
| Deferred | 696 | (148) | 1,433 | (148) | ||||
| 384 | (148) | 2,013 | (148) | |||||
| Net loss for the period | (709) | (841) | (285) | (841) | ||||
| Other comprehensive income | ||||||||
| Items that will not be reclassified to net income: | ||||||||
| Remeasurements of pensions | 1,944 | 258 | 8,130 | 258 | ||||
| Remeasurements of post-retirement benefits | (133) | - | 88 | - | ||||
| Items that may be subsequently reclassified to net income: | - | |||||||
| Available-for-sale investment | 10 | - | 10 | - | ||||
| Cumulative translation adjustment | 2,028 | 187 | 3,178 | 187 | ||||
| Total other comprehensive income for the period | 3,849 | 445 | 11,406 | 445 | ||||
| Comprehensive income (loss) for the period | 3,140 | (396) | 11,121 | (396) | ||||
| Basic loss per share | (0.08) | (0.11) | (0.03) | (0.11) | ||||
| Weighted average number of shares outstanding | 8,791,225 | 8,000,001 | 8,752,830 | 8,000,001 | ||||
| KP Tissue Inc. | |||||||||
| Statements of Cash Flows | |||||||||
| (thousands of Canadian dollars) | |||||||||
| Quarter ended | Year ended | ||||||||
| December 31, 2013 | December 31, 2012 | December 31, 2013 | December 31, 2012 | ||||||
| $ | $ | $ | $ | ||||||
| Cash flows from (used in) operating activities | |||||||||
| Net loss for the period | (709) | (841) | (285) | (841) | |||||
| Items not affecting cash | |||||||||
| Equity income | 384 | 989 | (1,113) | 989 | |||||
| Gain on remeasurement of over-allotment option | - | - | (375) | - | |||||
| Dilution gain | (59) | - | (240) | - | |||||
| Current income taxes | (312) | - | 580 | - | |||||
| Deferred income taxes | 696 | (148) | 1,433 | (148) | |||||
| Net cash from (used in) operating activities | - | - | - | - | |||||
| Cash flows used in investing activites | |||||||||
| Investment in associate | (168) | (140,000) | (13,887) | (140,000) | |||||
| Distribution received | 1,581 | - | 5,058 | - | |||||
| Net cash used in investing activities | 1,413 | (140,000) | (8,829) | (140,000) | |||||
| Cash flows from (used in) financing activities | |||||||||
| Issuance of common shares | 168 | 140,000 | 13,887 | 140,000 | |||||
| Dividend paid | (1,581) | - | (5,058) | - | |||||
| Net cash from (used in) financing activities | (1,413) | 140,000 | 8,829 | 140,000 | |||||
| Increase (decrease) in cash and cash equivalents during the period | - | - | - | - | |||||
| Cash and cash equivalents - Beginning of period | - | - | - | - | |||||
| Cash and cash equivalents - End of period | - | - | - | - | |||||
SOURCE Maison Brison - English
Wendy Kelley
General Counsel and Corporate Secretary
KP Tissue Inc.
Tel.: 905.812.6936
wendy.kelley@krugerproducts.ca
INVESTORS:
Mike Baldesarra
Director of Investor Relations
KP Tissue Inc.
Tel.: 905.812.6962
IR@KPTissueinc.com