HispanicBusiness

Forward-looking statements: Certain statements made in the following report contain forward-looking statements including, but not limited to, statements concerning possible or assumed future results of operations of the Company. Forward-looking statements represent the Company's intentions, plans, expectations and beliefs, and are not guarantees of future performance. Such forward-looking statements represent Winpak's current views based on information as at the date of this report. They involve risks, uncertainties and assumptions and the Company's actual results could differ, which in some cases may be material, from those anticipated in these forward-looking statements. Unless otherwise required by applicable securities law, we disclaim any intention or obligation to publicly update or revise this information, whether as a result of new information, future events or otherwise. The Company cautions investors not to place undue reliance upon forward-looking statements.

Financial Performance

Net income attributable to common shareholders for the fourth quarter of 2012 was $22.3 million or 34 cents in earnings per share compared to $18.5 million or 28 cents per share in the corresponding quarter of 2011, an increase of 20.8 percent. Significantly improved gross profit margins added approximately 2.5 cents in earnings per share while volume growth supplemented earnings by 1.5 cents per share. A lower effective income tax rate contributed a further 1.5 cents in earnings per share. Foreign exchange negatively impacted earnings per share in the quarter by 1.0 cent but was more than offset by a combination of operating expense leverage and less income attributable to non-controlling interests.

For the year ended December 30, 2012, net income attributable to common shareholders totalled $72.4 million or $1.11 in earnings per share, comparing favorably with the prior year result of $63.8 million or 98 cents in earnings per share, an advancement of 13.5 percent. Higher sales volumes added 4.0 cents to earnings per share while an expansion in gross profit margins raised earnings per share by an additional 4.0 cents. A lower effective income tax rate and a lesser amount attributable to non-controlling interests further added to earnings per share by 3.0 cents and 1.0 cent respectively. Finally, foreign exchange favorably impacted earnings per share by 1.0 cent.

Revenue

Revenue for the final quarter of 2012 grew to a quarterly high of $173.2 million, $1.7 million or 1.0 percent greater than the fourth quarter of 2011. Volumes exceeded the prior year comparable quarter by 4.6 percent, a notable improvement over the two most recent quarters where volumes were essentially flat. The volume improvement was actually greater when factoring out the impact of the divestiture of the Company's drink cup product line at the start of the quarter, which negatively impacted volume growth by 0.7 percentage points. Rigid container demand led the way with low double-digit volume growth with a return to more normal ordering patterns in specialty beverages along with continued strength in condiment container packaging. Volumes in lidding, specialty film and modified atmosphere packaging advanced in the low single-digit percentage range in the quarter versus the prior year corresponding period. As in the prior two quarters, both packaging machinery and biaxially oriented nylon continued to experience weak demand, with low double-digit and low single-digit percentage declines in revenue respectively. Fortunately, these latter two product lines combine to make up less than ten percent of total Company revenues. A moderate decline in raw material costs from a year earlier led to an overall decline in selling prices, which reduced revenue by 4.1 percent in comparison to the final quarter of 2011. A negligible strengthening of the Canadian dollar enhanced revenue by an additional 0.5 percent.