CALGARY, ALBERTA -- (Marketwire) -- 02/14/13 -- Superior Plus Corp. (TSX: SPB)
-- For the year ended December 31, 2012, Superior generated adjusted operating cash flow (AOCF) per share of $1.73, a 5% increase over the prior year of $1.65 per share and consistent with the previously provided financial outlook for 2012 of $1.45 to $1.80 per share.-- Superior is confirming its 2013 financial outlook of AOCF per share of $1.65 to $1.95. See "2013 Financial Outlook" for additional details.-- The December 31, 2012 annual results include $10.7 million in one-time costs due to operational restructuring at Superior's Construction Products Distribution business of $6.5 million and $4.2 million at Superior's Energy Services business.-- On February 11, 2013, Superior received a proposal letter from Canada Revenue Agency ("CRA") which confirms the CRA's intent to challenge the tax consequences of Superior's corporate conversion transaction which occurred on December 31, 2008. The receipt of the proposal letter is consistent with Superior's expectations and previous disclosures on this matter. See "CRA Income Tax Update" for additional details.-- For the quarter ended December 31, 2012, Superior generated AOCF per share of $0.56 which includes $0.02 per share in one-time restructuring costs, compared to $0.58 per share in the comparative period. Superior's results were consistent with the prior year quarter, as improved results at the Construction Products Distribution business and lower interest costs, were offset by reduced results from the Specialty Chemicals business and the Energy Services business.-- Energy Services results for the quarter were impacted by a reduced contribution from the fixed-price energy business, which more than offset the impact of improved margins in the Canadian propane and U.S. refined fuels businesses.-- Specialty Chemicals results for the quarter were lower than the prior year quarter due in part to a $3.7 million one-time insurance settlement included in the prior year quarter results. Excluding the prior year insurance settlement, results were impacted by reduced chloralkali gross profits due to reduced sales volumes and reduced selling prices, particularly for chlorine. Reduced chloralkali gross profits were, offset in part, by improved sodium chlorate gross profits as a result of improved sales volumes.-- The Construction Products Distribution business results for the quarter benefitted from improved sales volumes, offset by weaker gross margins and restructuring costs of $2.3 million recognized in the fourth quarter related to announced branch closures ($6.5 million in restructuring costs incurred year-to-date).-- Superior continues to make excellent progress on its debt reduction and anticipates that its total debt to EBITDA ratio as at December 31, 2013 will be 3.8X to 4.2X. Superior has increased the high-end of this range to 4.2X from the prior range of 4.0X provided at the third quarter of 2012 due to higher anticipated working capital levels and the anticipated payment to the Canada Revenue Agency ("CRA"). See "CRA Income Tax Update" for additional details on the anticipated payment to CRA. Superior's targeted total debt to EBITDA remains unchanged at 3.5X to 4.0X. See "Debt Management Update" for additional details on the forecasted December 31, 2013 total debt to EBITDA ratio.-- Superior's total debt to EBITDA ratio improved to 4.4X as at December 31, 2012, compared to 5.1X at December 31, 2011. Superior's December 31, 2012 total debt to EBITDA ratio was at the high-end of the forecasted range of 4.2X to 4.4X due to a larger than anticipated increase in seasonal working capital requirements within its Energy Services business.-- On January 3, 2013, Superior early redeemed $50.0 million of its 5.85%, October 31, 2015 convertible debentures. The early redemption allows for Superior to benefit from lower average interest rates in addition to actively managing its balance sheet maturities.