For the nine-month period ended December 31, 2012, EBITDA totalled $631.1 million, an increase of $1.1 million or 0.2%, in comparison to $630.0 million for the corresponding period last fiscal year. This increase is due to a favourable dairy ingredients product mix in the Canadian Division, as well as improved operational efficiencies and favourable market factors in the USA Dairy Products Sector. Lower selling prices and sales volumes in the Argentinean Division, mainly in the export market, partially offset this increase. Additionally, the decisions rendered by the California Department of Food & Agriculture to increase the cost of milk in California, as well as increased operational costs in the US, negatively impacted EBITDA, as compared to the corresponding period last fiscal year. The weakening of the Canadian dollar slightly increased EBITDA, as compared to the same period last fiscal year.
OTHER CONSOLIDATED RESULTS ITEMS
Depreciation and amortization for the third quarter of fiscal 2013 totalled $26.8 million, an increase of $1.2 million as compared to $25.6 million for the corresponding period last fiscal year. For the nine-month period ended December 31, 2012, depreciation and amortization expense amounted to $81.1 million, an increase of $5.9 million as compared to $75.2 million for the corresponding period last fiscal year. This increase in depreciation and amortization for both the three and nine-month periods reflects variations in the depreciable asset base and fluctuations in foreign exchange rates between the Canadian and the US dollar.
Net interest expense for the three-month period ended December 31, 2012 increased by $1.7 million in comparison to the same period last fiscal year. For the nine-month period ended December 31, 2012, net interest expense decreased by $0.2 million. Without considering the prior year's unrealized gain in foreign currency denominated intercompany advance in Canada during the quarter, net interest expense would have been approximately at the same level in both years.
Income taxes for the third quarter of fiscal 2013 totalled $49.3 million, reflecting an effective tax rate of 27.5% compared to 26.7% for the same quarter last fiscal year. Income taxes for the nine-month period ended December 31, 2012 totalled $149.3 million, reflecting an income tax rate of 28.1% in comparison to 28.4% for the same period last fiscal year. The income tax rate varies and could increase or decrease based on the amount of taxable income derived and from which source, any amendments to tax laws and income tax rates and changes in assumptions and estimates used for tax assets and liabilities by the Company and its affiliates.
Net earnings totalled $130.0 million for the quarter ended December 31, 2012, compared to $129.8 million for the same quarter last fiscal year. For the nine-month period ended December 31, 2012, net earnings totalled $381.5 million as compared to $383.4 million for the same period last fiscal year. These reflect the various factors analyzed in this press release.
SELECTED QUARTERLY FINANCIAL INFORMATION
(in millions of CDN dollars, except per share amounts)----------------------------------------------------------------------------Fiscal years 2013 2012 2011 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4----------------------------------------------------------------------------Revenues 1,800.6 1,745.4 1,698.3 1,703.5 1,796.5 1,791.4 1,639.0 1,481.3EBITDA 212.5 215.6 203.0 201.0 207.3 213.1 209.6 194.5Net earnings 130.0 129.7 121.8 (2.6) 129.8 127.1 126.6 100.4Adjusted netearnings(1) 130.0 129.7 121.8 122.4 129.8 127.1 126.6 112.0EPS Basic 0.66 0.66 0.61 0.00 0.64 0.63 0.62 0.49 Diluted 0.65 0.65 0.60 0.00 0.64 0.61 0.61 0.48Adjusted EPS(1) Basic 0.66 0.66 0.61 0.62 0.64 0.63 0.62 0.55 Diluted 0.65 0.65 0.60 0.61 0.64 0.61 0.61 0.54---------------------------------------------------------------------------- (1) Adjusted net earnings and adjusted earnings per share (basic and diluted) are non-IFRS measures. Refer to the section "Measurement of Results not in Accordance with International Financial Reporting Standards" on page 7 of the Management's Discussion and Analysis included in the Company's 2012 Annual Report for the definition of these terms.Consolidated selected factors positively (negatively) affecting EBITDA(in millions of CDN dollars)----------------------------------------------------------------------------Fiscal years 2013 2012 Q3 Q2 Q1 Q4----------------------------------------------------------------------------Market factors(1)(2) 8 10 (14) (24)Inventory write-down - - (3) -US currency exchange(1) (3) 2 3 3----------------------------------------------------------------------------(1) As compared to same quarter of previous fiscal year.(2) Market factors include the average block market per pound of cheese and its effect on the absorption of fixed costs and on the realization of inventories, the effect of the relationship between the average block market per pound of cheese and the cost of milk as raw material, as well as the market pricing impact related to sales of dairy ingredients.
