19. Related Party Transactions
Transactions between Superior and its subsidiaries, which are related parties, have been eliminated on consolidation and are not disclosed in this note.
For the three and twelve months ended December 31, 2012, Superior incurred $0.1 million (December 31, 2011 -$0.4 million) and $0.7 million (December 31, 2011- $1.7 million) in legal fees respectively, with Norton Rose Canada LLP, a related party with Superior as a member of Superior's Board of Directors is a Partner at the law firm.
20. Reportable Segment Information
Superior has adopted IFRS 8 Operating Segments, which requires operating segments to be identified on the basis of internal reports about components of the Company that are regularly reviewed by the chief operating decision-maker in order to allocate resources to the segments and to assess their performance. Segment revenues reported below represents revenues generated from external customers.
----------------------------------------------------------------------------For the three months Construction ended December 31, Energy Specialty Products Total 2012 Services Chemicals Distribution Corporate Consolidated----------------------------------------------------------------------------Revenues 602.2 138.6 193.2 - 934.0Cost of sales (includes product and services) (472.6) (87.6) (145.6) - (705.8)----------------------------------------------------------------------------Gross Profit 129.6 51.0 47.6 - 228.2Expenses Selling, distribution and administrative costs 97.7 35.3 41.3 3.6 177.9 Finance expense 1.2 0.1 0.2 16.7 18.2 Impairment of property, plant, and equipment 4.7 - - - 4.7 Unrealized (gains) losses on derivative financial instruments (1.7) (1.6) - 17.4 14.1---------------------------------------------------------------------------- 101.9 33.8 41.5 37.7 214.9----------------------------------------------------------------------------Net earnings (loss) before income taxes 27.7 17.2 6.1 (37.7) 13.3Income tax recovery - - - 0.9 0.9----------------------------------------------------------------------------Net Earnings (Loss) 27.7 17.2 6.1 (36.8) 14.2------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------For the three months Construction ended December 31, Energy Specialty Products Total 2011 Services Chemicals Distribution Corporate Consolidated----------------------------------------------------------------------------Revenues 727.6 137.7 178.1 - 1,043.4Cost of sales (includes product and services) (595.6) (82.8) (130.4) - (808.8)----------------------------------------------------------------------------Gross Profit 132.0 54.9 47.7 - 234.6Expenses Selling, distribution and administrative costs 107.8 35.4 42.2 3.3 188.7 Finance expense 1.0 0.1 0.3 19.3 20.7 Impairment of intangible assets and goodwill 300.6 - - - 300.6 Unrealized (gains) losses on derivative financial instruments 20.2 - - (20.5) (0.3)---------------------------------------------------------------------------- 429.6 35.5 42.5 2.1 509.7----------------------------------------------------------------------------Net earnings (loss) before income taxes (297.6) 19.4 5.2 (2.1) (275.1)Income tax recovery - - - 43.7 43.7----------------------------------------------------------------------------Net Earnings (Loss) (297.6) 19.4 5.2 41.6 (231.4)------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------For the twelve Construction months ended Energy Specialty Products Total December 31, 2012 Services Chemicals Distribution Corporate Consolidated----------------------------------------------------------------------------Revenues 2,301.6 543.8 778.9 - 3,624.3Cost of sales (includes product and services) (1,854.2) (328.8) (595.0) - (2,778.0)----------------------------------------------------------------------------Gross Profit 447.4 215.0 183.9 - 846.3Expenses Selling, distribution and administrative costs 369.0 139.3 169.4 16.3 694.0 Finance expense 4.5 0.3 0.7 72.1 77.6 Impairment of property, plant, and equipment 4.7 - - - 4.7 Unrealized (gains) lossses on derivative financial instruments (43.8) (1.6) - 13.3 (32.1)---------------------------------------------------------------------------- 334.4 138.0 170.1 101.7 744.2----------------------------------------------------------------------------Net earnings (loss) before income taxes 113.0 77.0 13.8 (101.7) 102.1Income tax expense - - - (9.0) (9.0)----------------------------------------------------------------------------Net Earnings (Loss) 113.0 77.0 13.8 (110.7) 93.1------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------For the twelve Construction months ended Energy Specialty Products Total December 31, 2011 Services Chemicals Distribution Corporate Consolidated----------------------------------------------------------------------------Revenues 2,686.1 527.7 711.8 - 3,925.6Cost of sales (includes product and services) (2,225.7) (335.3) (537.1) - (3,098.1)----------------------------------------------------------------------------Gross Profit 460.4 192.4 174.7 - 827.5Expenses Selling, distribution and administrative costs 405.4 130.6 158.8 11.9 706.7 Finance expense 3.9 0.3 1.2 80.1 85.5 Impairment of intangible assets and goodwill 300.6 - 78.0 - 378.6 Unrealized losses (gains) on derivative financial instruments (15.6) 5.4 - 19.9 9.7---------------------------------------------------------------------------- 694.3 136.3 238.0 111.9 1,180.5----------------------------------------------------------------------------Net earnings (loss) before income taxes (233.9 56.1 (63.3) (111.9) (353.0)Income tax recovery - - - 50.4 50.4----------------------------------------------------------------------------Net Earnings (Loss) (233.9) 56.1 (63.3) (62.1) (302.6)--------------------------------------------------------------------------------------------------------------------------------------------------------Net working capital, Total assets, Total liabilities, Acquisitions andPurchase of property, plant and equipment---------------------------------------------------------------------------- Construction Energy Specialty Products Total Services Chemicals Distribution Corporate Consolidated----------------------------------------------------------------------------As at December 31, 2012 Net working capital (1) 188.1 16.3 105.5 (22.1) 287.8 Total assets 729.6 585.6 199.6 521.5 2,036.3 Total liabilities 298.9 171.7 84.2 1,098.7 1,653.4----------------------------------------------------------------------------As at December 31, 2011 Net working capital (1) 239.8 25.7 129.8 (18.0) 377.3 Total assets 1,008.3 618.8 218.8 347.5 2,193.4 Total liabilities 369.2 208.3 68.8 1,197.5 1,843.8----------------------------------------------------------------------------For the three months ended December 31, 2012 Acquisitions - - - - - Purchase of property, plant and equipment 12.1 9.6 0.4 - 22.1----------------------------------------------------------------------------For the three months ended December 31, 2011 Acquisitions 1.1 - - - 1.1 Purchase of property, plant and equipment 8.2 5.7 0.6 0.1 14.6----------------------------------------------------------------------------For the twelve months ended December 31, 2012 Acquisitions 5.5 - - - 5.5 Purchase of property, plant and equipment 21.9 20.3 1.6 - 43.8----------------------------------------------------------------------------For the twelve months ended December 31, 2011 Acquisitions 14.8 - - - 14.8 Purchase of property, plant and equipment 19.9 16.1 2.1 0.1 38.2--------------------------------------------------------------------------------------------------------------------------------------------------------(1) Net working capital reflects amounts as at the quarter end and is comprised of trade and other receivables, prepaid expenses and inventories, less trade and other payable, deferred revenue and dividends and interest payable.21. Geographical Information United Total Canada States Other Consolidated----------------------------------------------------------------------------Revenues for the three months ended December 31, 2012 368.4 542.3 23.3 934.0Revenues for the twelve months ended December 31, 2012 1,428.5 2,094.6 101.2 3,624.3Property, plant and equipment as at December 31, 2012 460.6 324.4 44.9 829.9Intangible assets as at December 31, 2012 15.8 23.8 - 39.6Goodwill as at December 31, 2012 188.3 0.8 - 189.1Total assets as at December 31, 2012 1,320.6 649.6 66.1 2,036.3----------------------------------------------------------------------------Revenues for the three months ended December 31, 2011 461.1 558.1 24.2 1,043.4Revenues for the twelve months ended December 31, 2011 1,743.7 2,091.8 90.1 3,925.6Property, plant and equipment as at December 31, 2011 486.5 349.3 49.2 885.0Intangible assets as at December 31, 2011 26.9 38.7 - 65.6Goodwill as at December 31, 2011 185.6 0.5 - 186.1Total assets as at December 31, 2011 1,337.9 788.3 67.1 2,193.4----------------------------------------------------------------------------
22. Subsequent Events
On November 30, 2012, Superior announced that it would redeem $50.0 million principal amount of its previously issued 5.85% convertible subordinated debentures due October 31, 2015 on January 3, 2013. As previously announced, Superior used proceeds from its bank facility to fund the redemption. The debentures, in accordance with their terms, were redeemed at the redemption price of $1,000 in cash per $1,000 principal amount of the debentures plus accrued and unpaid interest up to but excluding the redemption date. The record date for the partial redemption was December 31, 2012.
Contacts:
Superior Plus Corp.
Wayne Bingham
Executive Vice-President and Chief Financial Officer
(403) 218-2951
(403) 218-2973 (FAX)
wbingham@superiorplus.com
Superior Plus Corp.
Jay Bachman
Vice-President, Investor Relations and Treasurer
(403) 218-2957 or Toll Free: 1-866-490-PLUS (7587)
(403) 218-2973 (FAX)
jbachman@superiorplus.com
www.superiorplus.com
