Superior Plus Corp. Confirms 2015 Second Quarter Results
(firmenpresse) - CALGARY, ALBERTA -- (Marketwired) -- 07/30/15 -- Superior Plus Corp. (TSX: SPB)
Highlights
Energy Services
Specialty Chemicals
Construction Products Distribution
Corporate Related
CRA Income Tax Update
As previously disclosed, On April 2, 2013, Superior received, from the CRA, Notices of Reassessment for Superior''s 2009 and 2010 taxation years reflecting the CRA''s intent to challenge the tax consequences of the Conversion. On November 7, 2014, Superior received the Notices of Reassessment for the 2011 to 2013 taxation years. The CRA''s position is based on the acquisition of control rules and the general anti-avoidance rules in the Income Tax Act (Canada).
The table below summarizes Superior''s estimated tax liabilities and payment requirements associated with the received and anticipated Notices of Reassessment. Upon receipt of the Notices of Reassessment, 50% of the taxes payable pursuant to such Notices of Reassessment, must be remitted to the CRA.
On May 8, 2013 and August 7, 2013, respectively, Superior filed a Notice of Objection and a Notice of Appeal with respect to the Notice of Reassessments received on April 2, 2013. On February 4, 2015, Superior filed a Notice of Objection with respect to the Notice of Reassessments received on November 7, 2014. Superior anticipates that if the case proceeds in the Tax Court of Canada, the case could be heard within two years, with a decision rendered six to twelve months after completion of the court hearings. If a decision of the Tax Court of Canada were to be appealed, the appeal process could reasonably be expected to take an additional two years. If Superior receives a positive decision then any taxes, interest and penalties paid to the CRA will be refunded plus interest. If Superior is unsuccessful, then any remaining taxes payable plus interest and penalties will have to be remitted to the CRA.
Superior remains confident in the appropriateness of its tax filing position and the expected tax consequences of the Conversion and intends to vigorously defend such position and to file its future tax returns on a basis consistent with its view of the outcome of the Conversion.
Interim tax payments made by Superior will be recorded to the balance sheet and will not materially impact either adjusted operating cash flow or net earnings.
Based on the midpoint of Superior''s 2015 financial outlook of AOCF per share of $1.75, if the tax pools from the Conversion were not available to Superior, the impact would be an increase to cash income taxes of approximately $12.0 million or $0.09 per share for 2015. As previously stated, Superior intends to file its future income tax returns on a basis consistent with its view of the outcome of the Conversion.
2015 Financial Outlook
As previously disclosed on July 23, 2015, Superior''s 2015 financial outlook of AOCF per share has been reduced to $1.65 to $1.85 from $1.80 to $2.10 per share as provided in the first quarter of 2015. The reduction in the 2015 financial outlook is due to a reduced outlook for the Specialty Chemicals business for the second half of 2015 in addition to lower than expected results for the second quarter of 2015. The reduction in the outlook and second quarter results for the Specialty Chemicals business is due to weaker than anticipated hydrochloric acid pricing and sales volumes and a reduction in second quarter sodium chlorate sales volumes due to longer than anticipated pulp mill plant maintenance closures.
For additional details on the assumptions underlying the 2015 financial outlook, see Superior''s 2015 second quarter MD&A.
Debt Management Update
Superior remains focused on managing both its total debt and its total debt to EBITDA. Superior is currently forecasting a total debt to EBITDA ratio at December 31, 2015 of 3.4 X to 3.8X compared to the previously provided range of 3.0X to 3.4X forecast at the first quarter of 2015. The change to Superior''s forecasted debt and leverage levels is due to a reduction in Superior''s 2015 financial outlook. See "2015 Financial Outlook" for additional details.
Superior''s anticipated debt repayment for 2015 and total debt to EBITDA leverage ratio as at December 31, 2015, based on Superior''s 2015 financial outlook is detailed in the chart below.
Superior''s total debt (including convertible debentures) to Compliance EBITDA before restructuring costs was 3.4X as at June 30, 2015 (3.4X after restructuring costs), lower than the 3.5X as at December 31, 2014 (3.6X after restructuring costs). Debt levels and the total leverage ratio as at June 30, 2015 were lower than December 31, 2014 levels due debt repayment as a result of free cash flow generation in the first and second quarters of 2015. Superior continues to focus on reducing its total leverage through ongoing debt reduction, including reducing working capital requirements and improving business operations.
2015 Detailed Second Quarter Results
Superior''s 2015 Second Quarter Management''s Discussion and Analysis is attached and is also available on Superior''s website at under the Investor Relations section.
2015 Second Quarter Conference Call
Superior will be conducting a conference call and webcast for investors, analysts, brokers and media representatives to discuss the 2015 Second Quarter Results at 8:30 a.m. MDT on Friday, July 31, 2015. To participate in the call, dial:1-800-396-7098. An archived recording of the call will be available for replay until midnight, September 30, 2015. To access the recording, dial: 1-800-408-3053 and enter pass code 7316441 followed by the # key. Internet users can listen to the call live, or as an archived call, on Superior''s website at .
Supplemental Financial Information
Diluted AOCF Per Share
There were no dilutive instruments for the three months ended June 30, 2015 and 2014. For the six months ended June 30, 2015, the dilutive impact of the 7.50%, October 31, 2016 convertible debentures was 6.1 million shares (132.5 million total shares on a dilutive basis) with a resulting impact on AOCF of $2.6 million ($121.1 million total on a dilutive basis). For the six months ended June 30, 2014, the dilutive impact of the 7.50%, October 31, 2016 convertible debentures was 6.6 million shares (132.8 million total shares on a dilutive basis) with a resulting impact on AOCF of $2.8 million ($121.9 million total on a dilutive basis).
Forward Looking Information
Certain information included herein is forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking information may include statements regarding the objectives, business strategies to achieve those objectives, expected financial results (including those in the area of risk management), economic or market conditions, and the outlook of or involving Superior, Superior LP and its businesses. Such information is typically identified by words such as "anticipate", "believe", "continue", "could", "estimate", "expect", "plan", "intend", "forecast", "future", "guidance", "may", "predict", "project", "should", "strategy", "target", "will" or similar expressions suggesting future outcomes.
Forward-looking information in this document includes: future financial position, consolidated and business segment outlooks, expected EBITDA from operations, expected adjusted operating cash flow (AOCF) and adjusted operating cash flow per share, expected leverage ratios and debt repayment, debt management summary, expectations in terms of the cost of operations, capital spend and maintenance and the variability of these costs, timing, costs and benefits of restructuring activities, nomination of sodium chlorate volumes under supply agreements and the related costs and potential benefits, future supply and demand fundamentals for North American sodium chlorate, business strategy and objectives, development plans and programs, business expansion and cost structure and other improvement projects, expected product margins and sales volumes, expected timing of commercial production and the costs and benefits associated therewith, anticipated timing and impact of Tronox zero nomination for 2016, market conditions in Canada and the U.S., expected tax consequences of the Conversion, the challenge by the CRA of the tax consequences of the Conversion (and the expected timing and impact of such process including any payment of taxes and the quantum of such payments), future income taxes, the impact of proposed changes to Canadian tax legislation or U.S. tax legislation, future economic conditions, future exchange rates, exposure to such rates and incremental earnings associated with such rates, dividend strategy, payout ratio, expected weather, expectations in respect to the global economic environment, our trading strategy and the risk involved in these strategies, the impact of certain hedges on future reported earnings and cash flows, commodity prices and costs, the impact of contracts for commodities, demand for propane, heating oil and similar products, demand for chemicals including sodium chlorate and chloralkali, effect of operational and technological improvements, anticipated costs and benefits of business enterprise system upgrade plans, future working capital levels, expected governmental regulatory regimes and legislation and their expected impact on regulatory and legislative compliance costs, expectations for the outcome of existing or potential legal and contractual claims, our ability to obtain financing on acceptable terms, anticipated relocation costs, expected life of facilities and statements regarding net working capital and capital expenditure requirements of Superior or Superior Plus LP.
Forward-looking information is provided for the purpose of providing information about management''s expectations and plans about the future and may not be appropriate for other purposes. Forward-looking information herein is based on various assumptions and expectations that Superior believes are reasonable in the circumstances. No assurance can be given that these assumptions and expectations will prove to be correct. Those assumptions and expectations are based on information currently available to Superior, including information obtained from third party industry analysts and other third party sources, and the historic performance of Superior''s businesses. Such assumptions include anticipated financial performance, current business and economic trends, the amount of future dividends paid by Superior, business prospects, availability and utilization of tax basis, regulatory developments, currency, exchange and interest rates, trading data, cost estimates, our ability to obtain financing on acceptable terms, the assumptions set forth under the "Financial Outlook" sections of our second quarter management''s discussion and analysis ("MD&A") and are subject to the risks and uncertainties set forth below.
By its very nature, forward-looking information involves numerous assumptions, risks and uncertainties, both general and specific. Should one or more of these risks and uncertainties materialize or should underlying assumptions prove incorrect, as many important factors are beyond our control, Superior''s or Superior LP''s actual performance and financial results may vary materially from those estimates and intentions contemplated, expressed or implied in the forward-looking information. These risks and uncertainties include incorrect assessments of value when making acquisitions, increases in debt service charges, the loss of key personnel, fluctuations in foreign currency and exchange rates, inadequate insurance coverage, liability for cash taxes, counterparty risk, compliance with environmental laws and regulations, reduced customer demand, operational risks involving our facilities, force majeure, labour relations matters, our ability to access external sources of debt and equity capital, and the risks identified in (i) our MD&A under the heading "Risk Factors" and (ii) Superior''s most recent Annual Information Form. The preceding list of assumptions, risks and uncertainties is not exhaustive.
When relying on our forward-looking information to make decisions with respect to Superior, investors and others should carefully consider the preceding factors, other uncertainties and potential events. Any forward-looking information is provided as of the date of this document and, except as required by law, neither Superior nor Superior LP undertakes to update or revise such information to reflect new information, subsequent or otherwise. For the reasons set forth above, investors should not place undue reliance on forward-looking information.
Management''s Discussion and Analysis of 2015 Second Quarter Results
July 30, 2015
The following Management Discussion & Analysis (MD&A) is a review of the financial performance and position of Superior Plus Corp. (Superior) as at and for the three months ended June 30, 2015 and 2014. The information in this MD&A is current to July 30, 2015. This MD&A should be read in conjunction with Superior''s audited consolidated financial statements and notes to those statements as at and for the twelve months ended December 31, 2014 and its December 31, 2014 MD&A. Additional information regarding Superior, including the Annual Information Form, is available on SEDAR at , and on Superior''s website, .
The accompanying unaudited condensed consolidated financial statements of Superior were prepared by and are the responsibility of Superior''s management. Superior''s unaudited condensed consolidated financial statements were prepared in accordance with International Accounting Standard 34 Interim Financial Reporting as issued by the International Accounting Standards Board (IASB). Dollar amounts in this MD&A are expressed in Canadian dollars and millions except where otherwise noted.
Overview of Superior
Superior is a diversified business corporation. Superior holds 99.9% of Superior Plus LP (Superior LP), a limited partnership formed between Superior General Partner Inc. (Superior GP) as general partner and Superior as limited partner. Superior owns 100% of the shares of Superior GP and Superior GP holds 0.1% of Superior LP. The cash flow of Superior is solely dependent on the results of Superior LP and is derived from the allocation of Superior LP''s income to Superior by means of partnership allocations. Superior, through its ownership of Superior LP and Superior GP, has three operating segments: the Energy Services segment, which includes a Canadian propane distribution business, a U.S. refined fuels distribution business, a fixed-price energy services business and a supply portfolio management business; the Specialty Chemicals segment; and the Construction Products Distribution segment.
Second quarter AOCF was $23.3 million, a decrease of $9.2 million or 28% from the prior year quarter AOCF of $32.5 million (before restructuring costs of $9.3 million). The decrease in AOCF was primarily due to lower operating results at Specialty Chemicals and Energy Services, partially offset by higher operating results at Construction Products Distribution (CPD), lower interest and corporate costs. AOCF per share of $0.18 per share was $0.08 or 31% lower than the prior year quarter of $0.26 per share (before restructuring costs) due to the decrease in AOCF and modestly higher weighted average share outstanding. The weighted average shares outstanding increased 0.5 million due to the conversion of $5.3 million of debentures.
Adjusted operating cash flow for the six months ended June 30, 2015 was $118.5 million, a decrease of $11.7 million or 9% from the prior year AOCF of $130.2 million (before restructuring costs of $11.1 million). The decrease in AOCF was primarily due to lower operating results at Specialty Chemicals and Energy Services, higher interest costs and higher cash taxes, partially offset by higher operating results at Construction Products Distribution (CPD), lower corporate costs. AOCF per share of $0.94 per share was $0.09 or 9% lower than the prior year quarter of $1.03 per share (before restructuring costs) due to the decrease in AOCF and a modest increase in weighted average shares outstanding as noted above.
Second Quarter Comparison to Prior Year Quarter
Net earnings for the second quarter were $40.9 million, an increase of $35.0 million or 593% from the prior year quarter. The increase in net earnings was due primarily to higher unrealized gains on derivative financial instruments and a recovery on income taxes, offset in part by lower revenue and gross profit, and higher operating costs and finance expenses. Unrealized gains on derivative financial instruments were higher due primarily to unrealized gains recorded on Superior''s embedded debenture derivatives as a result of the decrease in Superior''s share price, compared to unrealized losses in the prior year quarter. Total income tax recovery for the second quarter was $3.2 million compared to income tax expense of $3.0 million in the prior year quarter. The income tax recovery was due primarily to the impact of the change in the statutory tax rates in Alberta on deferred tax.
Revenue of $743.9 million was $151.5 million lower than in the prior year''s quarter due primarily to decreased Energy Services and Specialty Chemicals revenue, partially offset by increased Construction Products Distribution (CPD) revenue. Energy Services revenue decreased due to lower propane, heating oil, natural gas, and refined fuels commodity prices. Specialty Chemicals revenue decreased due to lower volumes. CPD revenues increased due to higher volumes and the impact of foreign exchange on U.S. denominated revenues. Gross profit of $192.8 million was $3.2 million lower than the prior year quarter gross profit of $196.0 million due primarily to decreased revenues. See "Prior Period Adjustment Details" for discussion of the adjustments impacting Q2 2014 gross profit.
Operating expenses of $187.4 million in the second quarter were $8.1 million higher than operating expenses in the prior year quarter primarily due to the impact of the weaker Canadian dollar on the translation of U.S. denominated operating expenses, offset in part by decreased operating expenses associated with head count reduction at Energy Services. Finance expenses were higher due primarily to the interest on the high-yield debenture issuance.
Year-to-Date Comparison to Prior Year-to-Date
The net earnings for the six months ended June 30, 2015 was $31.1 million, a $24.9 million or 44% decrease from the prior year. The decrease was due primarily to lower revenue, higher operating expenses and interest costs, unrealized losses on derivative financial instruments and modestly higher income tax expense.
Revenue for the six months ended June 30, 2015 of $1,750.5 million was $427.2 million or 20% lower than the prior year due primarily to decreased Energy Services revenue, decreased Specialty Chemicals revenue, partially offset by increased CPD revenue. Energy Services revenue was lower due to the decrease in the wholesale cost of propane, natural gas, and refined fuels. Specialty Chemicals revenue decreased due to lower volumes, offset in part by the favourable impact of foreign exchange. CPD revenue increased due primarily to the favourable impact of foreign exchange and higher volumes. Gross profit of $482.5 million was $3.7 million lower than the adjusted prior year quarter gross profit of $486.2 million. See "Prior Period Adjustment Details" for discussion of the adjustments impacting the six months ended June 30, 2014 gross profit.
Operating expenses for the six months ended June 30, 2015 of $395.3 million were $11.2 million higher than operating expenses in the prior year quarter primarily due to the negative impact of weaker Canadian dollar on the translation of U.S. denominated operating expenses, offset in part by the decreased operating expenses associated with head count reduction at Energy Services. Finance expenses were higher due to the interest on high-yield debentures.
Prior Period Adjustments Details
During the first and second quarters of 2014, Superior recognized $9.5 million and $0.7 million, respectively ($0.08 and $0.01 per share, respectively) in adjustments related to its supply portfolio management business and its U.S. refined fuels business. The adjustment in the supply portfolio management business was primarily due to the over-accrual of freight charges during the fourth quarter of 2013 and throughout the first quarter of 2014. The adjustment in the U.S. refined fuels business was due to inaccurate inventory costing in prior periods as a result of not properly recognizing book to physical inventory adjustments.
Superior has recognized an adjustment, as detailed below, of $0.7 million in its second quarter 2014 results, and $10.2 million for the six months ended June 30, 2014 within the Energy Services business.
A summary of the adjustments related to the first and second quarters of 2014 is as follows:
OPERATING RESULTS
Energy Services
Energy Services'' condensed operating results for 2015 and 2014:
Revenues for the second quarter of 2015 were $361.5 million, a decrease of $156.9 million or 30% from revenues of $518.4 million in 2014. The decrease in revenues was primarily due to lower commodity prices as compared to the prior year quarter. The average wholesale cost of propane in the second quarter of 2015 was 62% lower than the prior year quarter. Total gross profit for the second quarter of 2015 was $95.9 million, an increase of $3.7 million or 4% as compared to the prior year quarter. The increase in gross profit was primarily due to higher U.S. refined fuels distribution gross profits, offset in part by lower contribution from other services. A summary and detailed review of gross profit is provided below.
Canadian Propane Distribution
Canadian propane distribution gross profit for the second quarter was $47.7 million, consistent with the prior year quarter. Average weather across Canada for the second quarter, as measured by degree days, was 12% warmer than the prior year and 8% warmer than the five-year average. Due to the seasonal nature of heating related volumes, weather in the second quarter did not have a material impact on sales volumes.
Residential sales volumes were consistent with the prior year as colder than average temperatures experienced in Eastern Canada more than offset the impact of warmer than average temperatures in Western Canada. Industrial sales volumes decreased by 18 million litres or 12% due to lower oil field demand due to reduced customer activity as a result of the decline in crude oil prices and warmer than average temperatures in Western Canada. Commercial sales volumes decreased 9 million litres or 17% due to warmer than average temperatures in Western Canada relative to the record or near record low average temperatures experienced through the majority of Canada in the prior year quarter, which more than offset the benefit of colder temperatures in Eastern Canada.
Average propane sales margins for the second quarter increased to 20.9 cents per litre from 18.6 cents per litre in the prior year quarter. Average sales margins in the second quarter of 2015 benefitted from a low price environment for the wholesale cost of propane, improved sales mix and the impact of ongoing pricing management initiatives.
U.S. Refined Fuels Distribution
U.S. refined fuels distribution gross profit for the second quarter was $30.7 million, an increase of $4.3 million or 16% from the prior year quarter. The increase in gross profit was due primarily to higher average sales margins, offset in part by lower volumes. Average weather in the Northeastern U.S., as measured by heating degree days, for the second quarter was 10% warmer than the prior year quarter and 4% warmer than the 5-year average. Similar to the Canadian propane business, the impact of weather on the second quarter results is typically not material due to the seasonal nature of heating related volumes.
Sales volumes of 338 million litres were 9 million litres or 3% lower than the prior year quarter due primarily to decreased commercial volumes. Commercial sales volumes were lower due to warmer weather and decreased agricultural volumes as a result of unfavourable weather conditions.
Average U.S. refined fuels sales margins of 9.1 cents per litre increased from 7.6 cents per litre in the prior year quarter. Sales margins were positively impacted by the lower wholesale cost of propane and heating oil, ongoing price and supply management initiatives, the implementation of a standardized delivery charge for residential propane customers, and favourable foreign exchange translation contribution.
Other Services
Other services gross profit was $7.2 million in the second quarter, a decrease of $1.0 million from the prior year quarter due primarily to a significant reduction in service technicians in the U.S. refined fuels business as part of the restructuring activities in 2013 and 2014.
Supply Portfolio Management
Supply portfolio management gross profits were $6.7 million in the second quarter, a decrease of $0.3 million from the prior year quarter. Results in the current year quarter benefitted from the reduced wholesale cost of propane compared to the prior year quarter. Market trading opportunities were consistent with the prior year quarter. Superior anticipates that annual profitability for the supply portfolio management business in 2015 will be consistent with 2014.
Fixed-price energy services gross profit was $3.6 million in the second quarter, an increase of $0.5 million from the prior year quarter. Natural gas gross profit was $2.4 million, an increase of $0.3 million from the prior year quarter due to higher margins. Natural gas gross profit per unit was 51.1 cents per gigajoule (GJ), an increase of 6.4 cents per GJ from the prior year quarter due to positive balancing gains related to favourable supply prices in the current quarter. Sales volumes of natural gas were 4.7 million GJ, consistent with the prior year quarter. Electricity gross profit in the second quarter of 2015 was $1.2 million, modestly higher than the prior year quarter.
Operating Costs - Energy Services
Energy Services cash operating and administrative costs were $81.4 million in the second quarter of 2015, an increase of $7.1 million or 10% from the prior year quarter. The increase in expenses was primarily due to the impact from a stronger U.S. dollar on the translation of U.S. denominated expenses and the inclusion of a $3.7 million one-time litigation and insurance settlement recognized in the prior year quarter, offset in part by the reduced headcount and operational improvements from The Superior Way initiatives.
Financial Outlook
EBITDA from operations for 2015 for the Energy Services business is anticipated to be consistent to modestly higher than in 2014, consistent with the forecast provided in the first quarter 2015. EBITDA from the Canadian propane and U.S. refined fuels businesses will benefit from ongoing operational improvements. Operating costs as a percentage of gross profits are anticipated to continue to improve in 2015 due to a full year run rate of business initiatives and The Superior Way project. Gross profits in the Canadian Propane and U.S. refined fuels business are anticipated to be consistent with 2014 with the exception of industrial related gross profits in the Canadian propane business.
Superior is forecasting a modest reduction in gross profits related to oil and gas sales volumes within the Canadian propane business as a result of ongoing volatility in crude oil. Gross profit from the supply portfolio management business is anticipated to be similar to 2014 whereas gross profit from the fixed-price energy business will be higher in 2015 than in 2014 due to the absence of losses that resulted from the temperatures experienced in the first quarter of 2014. Average weather, as measured by degree days, for the remainder of 2015 is anticipated to be consistent with the 5-year average period. Operating conditions for 2015 are anticipated to be similar to 2014 with the exception of the decline in the wholesale cost of propane which Superior anticipates will persist throughout 2015.
Specialty Chemicals
Specialty Chemicals'' condensed operating results for 2015 and 2014:
Chemical revenue for the second quarter of $142.0 million was $24.3 million or 15% lower than in the prior year quarter due primarily to a decrease in sodium chlorate sales volumes and average gross margins and a decrease in chloralkali average realized sales prices including the impact of foreign currency hedge contracts. Sodium chlorate sales volumes were 22% lower than the prior year quarter due to reduced customer demand as a result of extended pulp producer maintenance downtime in the second quarter relative to maintenance in prior years. Chloralkali sales prices, before the impact of foreign currency hedging contracts, for chlorine were higher than the prior year, for caustic were consistent to modestly higher than the prior year, and for hydrochloric acid were materially lower than the prior year.
Second quarter gross profit of $51.2 million was $12.4 million lower than in the prior year quarter due primarily to lower sodium chlorate and chloralkali gross profits. Sodium chlorate gross profits decreased due to higher electricity costs and a reduction in average realized selling prices. Realized average selling prices include the impact of existing foreign currency hedge contracts. Selling prices excluding the impact of foreign currency hedging contracts were higher than the prior year. Gross margin per tonne was also negatively impacted by a higher mix of international sales volumes. Chloralkali gross profits were lower than the prior year quarter due to higher electricity costs and a higher proportion of lower margin hydrochloric acid sales volumes compared to higher margin caustic sales volumes in the prior year quarter.
Cash operating and administrative costs of $41.2 million were $2.3 million or 6% higher than in the prior year quarter due to impact of a weaker Canadian dollar on the translation of U.S. dollar denominated expenses and general inflationary increases.
Superior''s foreign currency hedge contracts for the 2015 fiscal year were entered into in prior years when the Canadian dollar was stronger relative to the U.S. dollar. As a result, Superior''s effective U.S. exchange rate for 2015 is approximately 1.04 per Canadian dollar for 1.00 U.S. dollar. Beginning in 2016, lower value foreign currency contracts roll-off and Superior''s effective U.S. exchange rate will significantly improve which is expected to result in incremental consolidated earnings of $15 to $20 million in 2016 relative to 2015. See "Financial Instruments - Risk Management" in Superior''s 2015 second quarter MD&A for a summary of Superior''s foreign currency hedge contracts.
Strategic Supply Agreement
As previously disclosed, Specialty Chemicals has provided notification that it will not be nominating any volume for fiscal 2016 related to its 130,000MT sodium chlorate supply agreement with Tronox. During the second quarter, Tronox provided formal notification to Superior that it will be commencing with a decommissioning of the facility upon completion of Superior''s 2015 supply requirements. The decommissioning of the facility will result in the acceleration of certain fees, requiring Superior to make a payment to Tronox of approximately US $3.3 million in the first quarter of 2016.
With Tronox determining that it will cease sodium chlorate manufacturing at the Hamilton, Mississippi facility, the supply and demand fundamentals for North American sodium chlorate would largely be balanced when current exports are taken into consideration. The potential for an improved supply and demand balance beginning in 2016 provides an improved environment for Superior to recover production cost increases, particularly electricity cost increases, that Superior has had to absorb over the last several years.
Financial Outlook
Superior expects EBITDA from operations for 2015 to be approximately $30 million lower than in 2014. Superior''s forecast for its Specialty Chemicals business at the end of the first quarter of 2015 was for results in 2015 to be modestly lower than in 2014. The reduction in the 2015 forecast is a result of lower than anticipated actual results in the second quarter of 2015, in addition to a reduction in the anticipated contribution for the third and fourth quarters of 2015. The reduction in the forecast for the second half of 2015 is due in part to lower than previously anticipated sodium chlorate gross profits as a result of a modest reduction in sales volumes and lower chloralkali gross profits as a result of a decrease in hydrochloric acid contribution.
The reduction in sodium chlorate sales volumes is due largely to the impact of a stronger U.S. dollar which has increased the selling price of pulp, resulting in upwards pressure on the price of paper and other pulp derivatives which is causing reduced demand and therefore reduced demand for pulp and sodium chlorate.
Chloralkali gross profits are now anticipated to be weaker than previously disclosed due to additional weakness in hydrochloric acid sales volumes and pricing. Superior has determined that its previous forecast for hydrochloric acid selling prices and volumes was not conservative enough. Since the first quarter of 2015, there has been intense pressure on both pricing and sales volumes. Although pricing has generally been consistent with management''s expectations, there have been greater than anticipated volume declines as inventories from other geographies are being sold into Superior''s markets.
Sales prices and sales volumes of caustic and chlorine are consistent with the previously provided forecast and are anticipated to be modestly higher than the prior year. Supply and demand fundamentals in the chloralkali markets in which Superior operates are anticipated to remain similar to 2014 with the exception of hydrochloric acid as noted above.
In addition to the significant assumptions detailed above, refer to "Risk Factors to Superior" for a detailed review of the significant business risks affecting Superior''s Specialty Chemicals'' segment.
Construction Products Distribution
Construction Products Distribution''s condensed operating results for 2015 and 2014:
Revenues of $238.9 million for the second quarter of 2015 were $29.9 million or 14% higher than in the prior year quarter due to increased gypsum and commercial and industrial insulation (C&I) revenues. Gypsum revenues were higher than the prior year quarter due to improved U.S. sales volumes as a result of ongoing improvements in the U.S. residential construction sector, higher average selling prices and the impact of a stronger U.S. dollar on the translation of U.S. denominated revenues. Canadian revenues were higher than the prior year quarter due to improved weather and operating conditions compared to the prior quarter which was partially offset by a modestly decline in gross margins due to competitive pressures. Commercial and industrial insulation (C&I) revenues increased over the prior year quarter due to higher industrial market activity, improvements in U.S. end-use markets, an increase in market share due to investments in sales and marketing and the impact of a stronger U.S. dollar on the translation of U.S. denominated revenues.
Gross profits of $59.5 million in the second quarter were $8.9 million or 18% higher than in the prior year quarter primarily due to improved sales volumes, higher average selling prices and the impact of the stronger U.S. dollar. Average sales margins were higher than the prior year quarter due to ongoing pricing and procurement initiatives, improved market conditions and the timing of the recognition of rebates in 2015 compared to 2014, which more than offset the impact of a higher mix of large industrial projects.
Cash operating and administrative costs were $46.8 million in the second quarter, an increase of $4.2 million or 10% from the prior year quarter. The increase was primarily due to higher sales volumes and the impact of the stronger U.S. dollar on the translation of U.S. denominated operating costs.
System Integration
CPD has approved and begun a systems integration project that will replace two legacy ERP systems with a single, standardized solution. The updated system will provide enhanced procurement, pricing and operational effectiveness, enabling CPD to further improve margins and operating costs once complete. CPD anticipates that the project will be completed over the next two years at a total cost of approximately US$22 million which is split between capital investment of US$12 million and one-time operating costs of US$10 million (US$3 million 2015 and US$7 million 2016). Operating Superior anticipates that approximately 60% of these costs will be incurred in 2015 with the remainder in 2016. Total costs incurred to date are US$2.7 million consisting of US$2.1 million in capital and US$0.6 million in operating expense.
Financial Outlook
Superior anticipates that EBITDA from operations in 2015 will be higher than in 2014 due to continued improvements in the U.S. residential market, the product expansion of drywall into ceiling-only branches and benefits resulting from ongoing pricing and procurement initiatives. Superior anticipates that the U.S. commercial market will be modestly improved in 2015 compared to 2014 and that the Canadian residential market will continue to be challenging.
In addition to the Construction Products Distribution segment''s significant assumptions detailed above, refer to "Risk Factors to Superior" for a detailed review of the significant business risks affecting Superior''s Construction Products Distribution segment.
Efficiency, process improvement and growth related expenditures were $12.4 million in the second quarter compared to $14.8 million in the prior year quarter. The decrease compared to prior year is due primarily to the completion of expansion projects at Specialty Chemicals in late 2014. Efficiency, process improvement and growth-related expenditures in 2015 are primarily related to Energy Services'' purchases of rental assets and truck related expenditures. Other capital expenditures were $5.1 million in the second quarter compared to $10.5 million in the prior year quarter, consisting primarily of required maintenance and general capital across all of Superior''s segments. Proceeds on the disposition of capital were $0.6 million in the second quarter and consisted of Superior''s disposition of surplus tanks, cylinders and property. During the second quarter Superior entered into new leases with a capital equivalent value of $9.6 million primarily related to delivery vehicles for the Energy Services and Construction Products Distribution segments. Expenditures related to the acquisition of Warner''s Gas Service Inc. in the second quarter of 2015 amounted to $1.6 million. See Note 4 to the unaudited condensed consolidated financial statements for further details.
Corporate and Interest Costs
Corporate costs for the second quarter were $2.2 million, compared to $6.0 million in the prior year quarter. The $3.8 million decrease was primarily due to reduced long-term incentive plan costs relative to the prior year quarter as a result of fluctuations in Superior''s share price. Additionally, corporate costs in the prior year quarter included one-time costs associated with the potential CPD sales process.
Interest expense on borrowing and finance lease obligations for the second quarter was $11.1 million, compared to $11.6 million in the prior year quarter. The modest decrease was due to lower average interest rates and lower average debt levels. Superior''s average interest rate was positively impacted by settlements on interest rate swaps which more than offset the impact of higher rates due to Superior''s 7-year, $200 million, 6.50% senior unsecured note offering which closed on December 9, 2014. Superior anticipates that interest costs will be consistent with the prior year for the remaining two quarters of 2015 due to reduced debt levels and lower effective interest rates.
Superior Plus Office Relocation
As previously disclosed, Superior will be relocating its corporate office to Toronto, Ontario from the current location of Calgary, Alberta during the second half of 2015. The relocation of the corporate office will provide closer proximity for Superior''s corporate executive team to Superior''s operating businesses. Superior''s President and Chief Executive Officer and Chief Legal Officer, along with other members of Superior''s corporate team will be relocating to Toronto as part of the corporate office relocation.
Retirement of Wayne Bingham
As disclosed on June 17, 2015, Mr. Wayne Bingham, Chief Financial Officer (CFO), is expected to retire no later than February 2016. Mr. Bingham joined Superior in the capacity of CFO in October 2006. Mr. Bingham will remain with Superior until February 2016 or until his retirement date to assist in the transition of the new CFO as well as the corporate office relocation to Toronto which is anticipated in the fourth quarter of 2015. Superior has commenced a search for a successor to Mr. Bingham.
Non-GAAP Restructuring Costs
Superior''s restructuring costs incurred during 2014 were categorized together and excluded from segmented results. Below is a table summarizing these costs for comparative purposes:
Restructuring costs incurred during 2014 and 2013 consisted of both costs included in, and excluded from, the restructuring provision. Superior incurred $9.3 million of restructuring costs during the second quarter 2014 related to employee severance costs and consulting costs at Energy Services. Total restructuring costs incurred during 2014 and 2013 in order to complete the restructuring projects were $26.6 million.
Income Taxes
Total income tax recovery for the second quarter was $3.2 million and consists of $0.6 million in cash income tax expense and $3.7 million in deferred income tax recovery, compared to a total income tax expense of $3.0 million in the prior year quarter, which consisted of $0.5 million in cash income tax expense and a $2.5 million deferred income tax expense.
Cash income tax expense for the second quarter was $0.6 million and consisted of income tax expense in the U.S. of $0.6 million (2014 Q2 - $0.5 million of U.S. cash tax expense). Deferred income tax recovery for the second quarter was $3.7 million (2014 Q2 - $3.0 million deferred income tax expense), resulting in a corresponding net deferred income tax asset of $257.6 million as at June 30, 2015. The deferred income tax recovery was due to the impact of the increase in statutory rates in Alberta on deferred tax.
Canada Revenue Agency (CRA) Income Tax Update
As previously disclosed, on April 2, 2013, Superior received, from the CRA, Notices of Reassessment for Superior''s 2009 and 2010 taxation years reflecting the CRA''s intent to challenge the tax consequences of Superior''s corporate conversion transaction ("Conversion") which occurred on December 31, 2008. Subsequently on November 7, 2014, Superior received the Notices of Reassessment for the 2011 to 2013 taxation years. The CRA''s position is based on the acquisition of control rules and the general anti-avoidance rules in the Income Tax Act (Canada).
The table below summarizes Superior''s estimated tax liabilities and payment requirements associated with the received and anticipated Notices of Reassessment. Upon receipt of the Notices of Reassessment, 50% of the taxes payable pursuant to such Notice of Reassessment must be remitted to the CRA.
On May 8, 2013 and August 7, 2013, respectively, Superior filed a Notice of Objection and a Notice of Appeal with respect to the Notice of Reassessments received on April 2, 2013. On February 4, 2015, Superior filed a Notice of Objection with respect to the Notice of Reassessments received on November 7, 2014. Superior anticipates that if the case proceeds in the Tax Court of Canada, the case could be heard within two years, with a decision rendered six to twelve months after completion of the court hearings. If a decision of the Tax Court of Canada were to be appealed, the appeal process could reasonably be expected to take an additional two years. If Superior receives a positive decision then any taxes, interest and penalties paid to the CRA will be refunded plus interest. If Superior is unsuccessful, then any remaining taxes payable plus interest and penalties will have to be remitted to the CRA.
Superior remains confident in the appropriateness of its tax filing position and the expected tax consequences of the Conversion and intends to vigorously defend such position and to file its future tax returns on a basis consistent with its view of the outcome of the Conversion.
Interim tax payments made by Superior will be recorded to the balance sheet and will not materially impact either AOCF or net earnings.
Based on the midpoint of Superior''s 2015 financial outlook of AOCF per share of $1.75, if the tax pools from the Conversion were not available to Superior, the impact would be an increase to cash income taxes of approximately $12.0 million or $0.09 per share for 2015. As previously stated, Superior intends to file its future income tax returns on a basis consistent with its view of the outcome of the Conversion.
Financial Outlook
As previously disclosed on July 23, 2015, Superior''s 2015 financial outlook of AOCF per share has been reduced to $1.65 to $1.85 from $1.80 to $2.10 per share as provided in the first quarter of 2015. The reduction in the 2015 financial outlook is due to a reduced outlook for the Specialty Chemicals business for the second half of 2015 in addition to lower than expected results for the second quarter of 2015. The reduction in the outlook and second quarter results for the Specialty Chemicals business is due to weaker than anticipated hydrochloric acid pricing and sales volumes and a reduction in second quarter sodium chlorate sales volumes due to longer than anticipated pulp mill plant maintenance closures.
Achieving Superior''s adjusted operating cash flow depends on the operating results of its three operating segments.
In addition to the operating results of Superior''s three operating segments, significant assumptions underlying Superior''s 2015 outlook are:
Energy Services
Specialty Chemicals
Construction Products Distribution
Debt Management Update
Superior remains focused on managing both its total debt and its total debt to EBITDA. Superior is currently forecasting a total debt to EBITDA ratio at December 31, 2015 of 3.4 X to 3.8X compared to the previously provided range of 3.0X to 3.4X forecast at the first quarter of 2015.
Superior''s anticipated debt repayment for 2015 and total debt to EBITDA leverage ratio as at December 31, 2015, based on Superior''s 2015 financial outlook is detailed in the chart below.
In addition to Superior''s significant assumptions detailed above, refer to "Risk Factors to Superior" for a detailed review of Superior''s significant business risks.
Liquidity and Capital Resources
Superior''s revolving syndicated bank facility (credit facility), term loans and finance lease obligations (collectively borrowing) before deferred financing fees totaled $656.1 million as at June 30, 2015, an increase of $122.9 million from December 31, 2014 .The increase in borrowing was primarily due to the redemption of the $172.5 million 5.75% debentures, offset in part by cash flow from operating activities.
On June 20, 2014, and November 26, 2014 Superior extended the maturity date of its credit facility to June 27, 2018. Financial covenant ratios were unchanged with a consolidated secured debt to consolidated EBITDA ratio and a consolidated debt to consolidated EBITDA ratio of 3.0x and 5.0x, respectively. Superior maintains the flexibility to expand the facility up to $750.0 million. See "Summary of Cash Flow" for details on Superior''s sources and uses of cash.
On December 9, 2014, Superior completed an offering of $200.0 million 6.50% senior unsecured notes (senior notes). The senior notes were issued at par value and mature on December 9, 2021. The senior notes contain certain early redemption options under which Superior has the option to redeem all or a portion of the senior notes at various redemption prices, which include the principal amount plus accrued and unpaid interest, if any, to the applicable redemption date. Interest is payable semi-annually on June 9 and December 9, commencing June 9, 2015. Under the terms of the agreement, Superior must maintain a fixed-charge coverage ratio of no less than 2.0 to 1.0. As at June 30, 2015, the fixed-charge coverage ratio for purposes of this agreement was 4.5 to 1.0.
As at June 30, 2015, debentures (before deferred issuance fees and discount values) issued by Superior totaled $316.3 million, $177.9 million lower than December 31, 2014 due to the $172.5 million redemption of the 5.75% debentures plus costs and interest. See Note 13 to the unaudited condensed consolidated financial statements for additional details on Superior''s debentures.
Consolidated net working capital was $247.9 million as at June 30, 2015, a decrease of $16.9 million from net working capital of $264.8 million as at December 31, 2014. The decrease was due primarily to the seasonal decline in net working capital requirements at Energy Services, offset in part by higher net working capital requirements at CPD related to the pickup in U.S. construction activity. Superior''s net working capital requirements are financed from its credit facility.
As at June 30, 2015, when calculated in accordance with the credit facility, the consolidated secured debt to compliance EBITDA ratio was 1.6 to 1.0 (December 31, 2014 - 1.2 to 1.0) and the consolidated debt to compliance EBITDA ratio was 2.3 to 1.0 (December 31, 2014 - 1.9 to 1.0). For both of these covenants, debentures are excluded. These ratios are within the requirements of Superior''s debt covenants. In accordance with the credit facility, Superior must maintain a consolidated secured debt to compliance EBITDA ratio of not more than 3.0 to 1.0 and not more than 3.5 to 1.0 as a result of acquisitions.
In addition, Superior must maintain a consolidated debt to compliance EBITDA ratio of not more than 5.0 to 1.0, excluding debentures. Superior''s total debt to compliance EBITDA ratio was 3.4 to 1.0 as at June 30, 2015. Also, Superior is subject to several distribution tests and the most restrictive stipulates that distributions (including debenture holders and related payments) cannot exceed compliance EBITDA less cash income taxes, plus $35.0 million on a trailing 12-month rolling basis. On a 12-month rolling basis as at June 30, 2015, Superior''s available distribution amount was $150.0 million under the above noted distribution test.
As of June 30, 2015, US$30 million of U.S. notes, issued October 29, 2003 by way of private placement, were outstanding. On March 30, 2010, certain financial covenant ratios of the U.S. Note Agreement were amended to make them consistent with the financial covenant ratios under the amended credit facility other than the exclusion of any obligations owing under an accounts receivable securitization program from the calculation of consolidated secured debt for purposes of the consolidated secured debt to compliance EBITDA ratio calculation.
On June 29, 2015, Standard & Poor''s confirmed Superior and Superior LP''s long-term corporate credit rating of BB and the senior secured debt rating of BBB-. The outlook rating for Superior remains stable. On June 26, 2015, Dominion Bond Rating Service confirmed Superior LP''s senior secured rating of BB (high) and Superior LP''s senior unsecured rating of BB (low). The trend for both ratings is stable.
As at June 30, 2015, Superior had an estimated defined benefit pension solvency deficiency of approximately $9.0 million (December 31, 2014 - $12.3 million) and a going concern surplus of approximately $28.0 million (December 31, 2014 - surplus of $22.6 million). Funding requirements required by applicable pension legislation are based upon going concern and solvency actuarial assumptions. These assumptions differ from the going concern actuarial assumptions used in Superior''s financial statements. Superior has sufficient liquidity through its existing credit facility and anticipated future operating cash flow to fund this deficiency over the prescribed period.
In the normal course of business, Superior is subject to lawsuits and claims. Superior believes the resolution of these matters will not have a material adverse effect, individually or in the aggregate, on Superior''s liquidity, consolidated financial position or results of operations. Superior records costs as they are incurred or when they become determinable.
Shareholders'' Capital
The weighted average number of common shares issued and outstanding at the end of the second quarter was 126.4 million shares, which was a 0.2 million increase from the prior year quarter related to conversions of the 7.50% debentures in 2015.
As at July 30, 2015, June 30, 2015 and December 31, 2014, the following common shares and securities convertible into common shares were issued and outstanding:
Dividends Paid to Shareholders
Dividends paid to Superior''s shareholders depend on its cash flow from operating activities with consideration for Superior''s changes in working capital requirements, investing activities and financing activities. See "Summary of Adjusted Operating Cash Flow" and "Summary of Cash Flow" for additional details.
On October 30, 2014, Superior announced that its monthly dividend would be increased by 20% to $0.06 per share or $0.72 per share on an annualized basis from the previous dividend of $0.05 or $0.60 per share on an annualized basis. Dividends paid to shareholders for 2015 were $45.5 million or $0.36 per share compared to $37.9 million or $0.30 per share in 2014. The increase of $7.6 million was due to the higher dividend rate. See "Debt Management Update" for further details. Dividends to shareholders are declared at the discretion of Superior''s Board of Directors.
Summary of Cash Flows
Superior''s primary sources and uses of cash are detailed below(1):
Financial Instruments - Risk Management
Derivative and non-financial derivatives are used by Superior to manage its exposure to fluctuations in foreign currency exchange rates, interest rates, share-based compensation and commodity prices. Superior assesses the inherent risks of these instruments by grouping derivative and non-financial derivatives related to the exposures these instruments mitigate. Superior''s policy is not to use derivative or non-financial derivative instruments for speculative purposes. Superior does not formally designate its derivatives as hedges and, as a result, Superior does not apply hedge accounting and is required to designate its derivatives and non-financial derivatives as held for trading. Refer to Superior''s 2014 Annual MD&A for further details on financial instrument risk management.
As at June 30, 2015, Superior has substantively hedged its estimated U.S. dollar exposure for 2015 and 78% for 2016. Due to the hedge position, a change in the Canadian to U.S, dollar exchange rate for 2015 would not have a material impact to Superior. A summary of Superior''s U.S. dollar forward contracts for 2015 and beyond is provided in the table below.
For additional details on Superior''s financial instruments, including the amount and classification of gains and losses recorded in Superior''s second quarter condensed consolidated financial statements, summary of fair values, notional balances, effective rates and terms, and significant assumptions used in the calculation of the fair value of Superior''s financial instruments, see Note 14 to the unaudited condensed consolidated financial statements.
Changes in Internal Controls over Financial Reporting
Superior''s Management is responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 "Certification of Disclosure in Issuers'' Annual and Interim Filings". The objective of this instrument is to improve the quality, reliability and transparency of information that is filed or submitted under securities legislation.
Superior''s President and Chief Executive Officer (CEO) and the Executive Vice President and Chief Financial Officer (CFO), with the assistance of Superior employees, have designed DC&P and ICFR to provide reasonable assurance that material information relating to Superior''s business is communicated to them, reported on a timely basis, financial reporting is reliable, and the financial statements for external purposes are in accordance with IFRS.
During the second quarter of 2015, there were no changes made to Superior''s ICFR that materially affected, or are reasonably likely to materially affect, Superior''s ICFR.
Critical Accounting Policies and Estimates
Superior''s unaudited condensed consolidated financial statements have been prepared in accordance with IFRS. The significant accounting policies are described in the unaudited condensed consolidated financial statements for the period ended June 30, 2015. Certain of these accounting policies, as well as estimates made by management in applying such policies, are recognized as critical because they require management to make subjective or complex judgments about matters that are inherently uncertain. Our critical accounting estimates relate to the allowance for doubtful accounts, employee future benefits, future income tax assets and liabilities, the valuation of derivatives and non-financial derivatives and asset impairments and the assessment of potential provision retirement obligations.
Recent Accounting Pronouncements
Certain new standards, interpretations, amendments or improvements to existing standards were issued by the IASB or the International Financial Reporting Interpretations Committee (IFRIC) that are mandatory for accounting periods beginning on January 1, 2015 or later. The affected standards are consistent with those disclosed in Superior''s 2014 annual consolidated financial statements.
New and revised IFRS standards issued but not yet effective
IFRS 9 - Financial Instruments: Classification and Measurement
IFRS 9 was issued in November 2009 and is intended to replace IAS 39 - Financial Instruments: Recognition and Measurement. IFRS 9 uses a single approach to determine whether a financial asset is measured at amortized cost or fair value, replacing the multiple rules in IAS 39. The approach in IFRS 9 is based on how an entity manages its financial instruments in the context of its business model and the contractual cash flow characteristics of the financial assets. The new standard also requires a single impairment method to be used, replacing the multiple impairment methods in IAS 39. Requirements for financial liabilities were added in October 2010 and they largely carried forward existing requirements in IAS 39 except that fair value changes due to credit risk for liabilities designated at fair value through profit and loss would generally be recorded in other comprehensive income. Another revised version of IFRS 9 was issued in July 2014 to include impairment requirements for financial assets and limited amendments to the classification and measurement requirements by introducing the fair value through other comprehensive income measurement category for certain simple debt instruments. This standard must be applied for accounting periods beginning on or after January 1, 2018, with earlier adoption permitted. Superior is assessing the effect of IFRS 9 on its financial results and financial position; changes, if any, are not expected to be material.
IFRS 15 - Revenue from Contracts with Customers
In May 2014, IFRS 15 was issued, establishing a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. IFRS 15 supersedes the current revenue recognition guidance including IAS 18 - Revenue, IAS 11 - Construction Contracts and the related interpretation when it becomes effective. Under IFRS 15, an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. An entity is required to recognize revenue when the performance obligation is satisfied. Either a full or modified retrospective application is required for annual periods beginning on or after January 1, 2018 with early adoption permitted. Superior is currently assessing the impact of IFRS 15 and plans to adopt the new standard on the required effective date.
IAS 16 and IAS 38 - Property, Plant and Equipment and Intangible Assets
The amendments to IAS 16 prohibit entities from using a revenue-based depreciation method for items of property, plant, and equipment. The amendments to IAS 38 introduce a rebuttable presumption that revenue is not an appropriate basis for amortization of an intangible asset. This presumption can only be rebutted in the event when the intangible asset is expressed as a measure of revenue or, when it can be demonstrated that revenue and consumption of the economic benefits of the intangible assets are highly correlated. This standard must be applied for accounting periods beginning on or after January 1, 2016, with earlier adoption permitted. Superior currently amortizes property, plant and equipment and intangible assets using the straight-line method and therefore, does not anticipate the application of these amendments to IAS 16 and IAS 18 having a material impact on Superior''s consolidated financial statements.
Non-GAAP Financial Measures
Throughout the MD&A, Superior has used the following terms that are not defined by GAAP, but are used by management to evaluate performance of Superior and its business. Since Non-GAAP financial measures do not have standardized meaning prescribed by GAAP and are therefore unlikely to be comparable to similar measures presented by other companies, securities regulations require that Non-GAAP financial measures are clearly defined, qualified and reconciled to their nearest GAAP financial measures. Except as otherwise indicated, these Non-GAAP financial measures are calculated and disclosed on a consistent basis from period to period. Specific adjusting items may only be relevant in certain periods.
The intent of Non-GAAP financial measures is to provide additional useful information to investors and analysts and the measures do not have any standardized meaning under IFRS. The measures should not, therefore, be considered in isolation or used in substitute for measures of performance prepared in accordance with IFRS. Other issuers may calculate Non-GAAP financial measures differently.
Investors should be cautioned that EBITDA and AOCF should not be construed as alternatives to net earnings, cash flow from operating activiti
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 30.07.2015 - 11:47 Uhr
Sprache: Deutsch
News-ID 1375891
Anzahl Zeichen: 0
contact information:
Contact person:
Town:
CALGARY, ALBERTA
Phone:
Kategorie:
Specialty Chemicals
Anmerkungen:
Diese Pressemitteilung wurde bisher 324 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Superior Plus Corp. Confirms 2015 Second Quarter Results
"
steht unter der journalistisch-redaktionellen Verantwortung von
Superior Plus Corp. (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
