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7. Earnings Per Share
Basic net income per share is calculated by dividing the net income available to common shareholders by the weighted average number of common shares outstanding during the period. As a result of the exchange transaction and the application of reverse acquisition accounting, the CPPI shares relating to the non-controlling interest shareholders were not included until March 2, 2012. This transaction led to an increase in the weighted average number of shares outstanding, with 71,269,790 shares outstanding as at December 31, 2012. The issuance of the new shares as a result of the exchange was accompanied by a corresponding increase in CPPI's investment in the Partnership and as a result there is no dilution of CPPI's net income per share.
3 months ended December 31, 12 months ended December 30, 2012 2011 2012 2011----------------------------------------------------------------------------Weighted average 71,269,790 35,776,483 65,257,263 35,776,483 number of common shares--------------------------------------------------------------------------------------------------------------------------------------------------------
8. Net Change in Non-Cash Working Capital
3 months ended December 12 months ended December 31, 31,(millions of Canadian dollars) 2012 2011 2012 2011----------------------------------------------------------------------------Accounts receivable $ (1.7) $ 41.8 $ 10.9 $ 32.5Inventories (1.5) (9.4) 7.4 (18.1)Prepaid expenses and other assets 6.9 3.6 (2.5) 5.2Accounts payable and accrued liabilities (1.3) (34.8) (3.6) (32.7)----------------------------------------------------------------------------Net decrease (increase) in non-cash working capital $ 2.4 $ 1.2 $ 12.2 $ (13.1)--------------------------------------------------------------------------------------------------------------------------------------------------------
9. Segment Information
The Company has two reportable segments which operate as separate business units and represent separate product lines.
Sales between pulp and paper segments are accounted for at prices that approximate fair value. These include sales of slush pulp from the pulp segment to the paper segment.
(millions of Canadian Elimination dollars) Pulp Paper Unallocated Adjustment Consolidated----------------------------------------------------------------------------3 months ended December 31, 2012Sales to external customers $ 168.2 33.7 - - $ 201.9Sales to other segments $ 18.0 - - (18.0) $ -Operating income (loss) $ 6.8 6.9 (2.8) - $ 10.9Amortization $ 19.0 1.0 - - $ 20.0Capital expenditures(1) $ 12.3 0.3 0.2 - $ 12.8----------------------------------------------------------------------------3 months ended December 31, 2011Sales to external customers $ 179.1 33.5 0.1 - $ 212.7Sales to other segments $ 19.9 - - (19.9) $ -Operating income (loss) $ 16.7 3.4 (3.6) - $ 16.5Amortization $ 20.4 1.0 - - $ 21.4Capital expenditures(1) $ 66.0 0.7 0.1 - $ 66.8--------------------------------------------------------------------------------------------------------------------------------------------------------12 months ended December 31, 2012Sales to external customers $ 675.0 134.6 0.8 - $ 810.4Sales to other segments $ 67.2 - - (67.2) $ -Operating income (loss) $ 19.2 19.4 (14.0) - $ 24.6Amortization $ 63.2 3.8 0.1 - $ 67.1Capital expenditures(1) $ 86.9 1.1 0.7 - $ 88.7Identifiable assets $ 670.9 64.6 22.5 - $ 758.0----------------------------------------------------------------------------12 months ended December 31, 2011Sales to external customers $ 802.9 136.6 1.5 - $ 941.0Sales to other segments $ 87.9 - - (87.9) $ -Operating income (loss) $ 157.5 9.5 (13.6) - $ 153.4Amortization $ 63.0 3.6 0.2 - $ 66.8Capital expenditures(1) $ 152.2 2.8 1.1 - $ 156.1Identifiable assets $ 702.5 63.8 24.9 - $ 791.2--------------------------------------------------------------------------------------------------------------------------------------------------------(1) Capital expenditures represent cash paid for capital assets during theperiod and include capital expenditures financed by federal government-funded Green Transformation Program and other government grants.
