2013 Financial Outlook
Superior expects 2013 AOCF per share of $1.65 to $1.95, consistent with the financial outlook provided at the third quarter of 2012. The increase in the mid-point of the 2013 financial outlook relative to the 2012 actual results is due to ongoing improvements in the businesses as a result of Superior's business initiative projects, average weather, as measured by degree days being consistent with the five year average, the absence of one-time restructuring costs which are offset in part by the absence of the one-time TransCanada payment received in third quarter 2012. Superior's 2013 financial outlook has been provided on the basis that Superior will continue to prepare and file its future tax returns on a basis consistent with its view of the outcome of the CRA's challenge of its corporate conversion transaction.
For additional details on the assumptions underlying the 2013 financial outlook, see Superior's 2012 Fourth Quarter Financial Discussion and Analysis.
Debt Management Update
Superior's anticipated debt repayment for 2013 and total debt to EBITDA leverage ratio as at December 31, 2013, based on Superior's 2013 financial outlook is detailed in the chart below.
Superior has increased the high-end of its forecasted December 31, 2013 total debt to EBITDA 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 CRA. Superior's targeted total debt to EBITDA remains unchanged at 3.5X to 4.0X.
---------------------------------------------------------------------------- (Dollar Per Share) (Millions of Dollars)----------------------------------------------------------------------------2013 financial outlook AOCF per share - mid-point (1) 1.80 204.2Maintenance capital expenditures, net (0.27) (30.2)Capital lease obligation repayments (0.14) (15.5)----------------------------------------------------------------------------Cash flow available for dividends and debt repayment before growth capital 1.39 158.5Expansion of Port Edward's and Saskatoon facilities (0.25) (28.2)Other growth capital expenditures (0.16) (18.1)Anticipated payments to CRA in relation to tax challenge (2) (0.13) (15.0)Proceeds from dividend reinvestment program 0.12 13.6----------------------------------------------------------------------------Estimated 2013 free cash flow available for dividend and debt repayment 0.97 110.8Dividends (annualized) (0.60) (68.1)----------------------------------------------------------------------------Total estimated debt repayment 0.37 42.7Estimated total debt to EBTIDA as at December 31, 2013 3.8X - 4.2X 3.8X - 4.2X--------------------------------------------------------------------------------------------------------------------------------------------------------Dividends (annualized) 0.60 68.1Calculated payout ratio after all capital expenditures and payment to CRA 61% 61%--------------------------------------------------------------------------------------------------------------------------------------------------------(1) See "Financial Outlook" in Superior's 2012 Fourth Quarter Financial Discussion and Analysis for additional details including assumptions, definitions and risk factors.(2) See "CRA Income Tax Update" for additional details.
