Unless otherwise indicated, the forward looking information in this document is made as of March 13, 2013 and, except as required by applicable law, will not be publicly updated or revised. This cautionary statement expressly qualifies the forward looking information in this document.
Premium Brands Holdings Corporation Consolidated Balance Sheets (in thousands of Canadian dollars) December 29, December 31, 2012 2011Current assets: Cash and cash equivalents 4,020 4,860 Accounts receivable 80,599 78,830 Other assets 193 103 Inventories 81,186 79,977 Prepaid expenses 6,657 13,455---------------------------------------------------------------------------- 172,655 177,225Capital assets 175,070 167,982Intangible assets 71,994 77,087Goodwill 154,451 150,417Other assets 2,266 2,250Deferred income taxes 31,286 39,952---------------------------------------------------------------------------- 607,722 614,913--------------------------------------------------------------------------------------------------------------------------------------------------------Current liabilities: Cheques outstanding 1,934 2,504 Bank indebtedness 11,179 18,061 Dividend payable 6,188 5,958 Accounts payable and accrued liabilities 83,240 80,162 Current portion of long-term debt (1) 127,310 20,536 Current portion of provisions 3,848 2,924---------------------------------------------------------------------------- 233,699 130,145Long-term debt 14,768 162,661Convertible unsecured subordinated debentures 133,842 89,396Puttable interest in subsidiaries 15,649 15,210Deferred revenue 1,443 1,943Provisions 503 8,360Pension obligation 1,873 1,345Other - 100---------------------------------------------------------------------------- 401,777 409,160Equity attributable to shareholders: Accumulated earnings 147,916 133,370 Accumulated dividends declared (154,878) (130,497)----------------------------------------------------------------------------Retained earnings (deficit) (6,962) 2,873Share capital 209,093 198,057Equity component of convertible debentures 1,785 1,916Reserves 448 1,442Non-controlling interest 1,581 1,465---------------------------------------------------------------------------- 205,945 205,753---------------------------------------------------------------------------- 607,722 614,913--------------------------------------------------------------------------------------------------------------------------------------------------------1. As a result of the Company's write-down of certain redundant property, its senior lenders (the Lenders) could potentially require the early payment of approximately $117.3 million of the Company's long-term debt (the Debt). The Lenders have provided a written waiver to the Company stating that they have no intention of doing this, however, because this confirmation occurred after December 29, 2012, the Company must under IFRS classify the Debt in its December 29, 2012 consolidated financial statements as being current. This is despite there being no change in: (i) the quarterly principal payments associated the Debt; and (ii) the Debt's maturity date of September 9, 2014. Premium Brands Holdings Corporation Consolidated Statements of Operations (Unaudited and in thousands of dollars except per share amounts) 13 weeks 14 weeks 52 weeks 53 weeks ended ended ended ended December 29, December 31, December 29, December 31, 2012 2011 2012 2011Revenue 244,049 245,237 968,775 788,932Cost of goods sold 195,701 196,823 766,424 614,631----------------------------------------------------------------------------Gross profit before depreciation and amortization 48,348 48,414 202,351 174,301Selling, general and administrative expenses before depreciation and amortization 33,337 34,034---------------------------------------------------------------------------- 15,011 14,380 134,095 119,357Depreciation of capital assets 4,007 3,916 15,490 12,091Amortization of intangible assets 1,135 1,201 4,836 3,573Amortization of other assets 1 1 5 5Interest and other financing costs 4,479 4,194 17,579 14,496Amortization of financing costs 74 212 380 405Acquisition transaction costs 4 702 197 1,594Change in value of puttable interest in subsidiaries 450 150 1,655 1,828Accretion of provisions 2 209 631 244Unrealized loss (gain) on foreign currency contracts (400) 495 (100) (220)Unrealized gain on interest rate swap contracts (100) 100 (300) 100Restructuring costs 1,714 74 5,705 2,819Acquisition bargain purchase gain - (100) - (1,455)Equity loss in associate - - - 277Other (69) - (69) -----------------------------------------------------------------------------Earnings before income taxes 3,714 3,226 22,247 19,187Provision for income taxes Current 165 121 2,216 1,526 Deferred 1,048 1,580 4,757 4,562---------------------------------------------------------------------------- 1,213 1,701 6,973 6,088----------------------------------------------------------------------------Earnings 2,501 1,525 15,274 13,099--------------------------------------------------------------------------------------------------------------------------------------------------------Earnings for the period attributable to: Shareholders 2,447 1,464 15,058 12,803 Non-controlling interest 54 61 216 296---------------------------------------------------------------------------- 2,501 1,525 15,274 13,099--------------------------------------------------------------------------------------------------------------------------------------------------------Earnings per share Basic 0.12 0.07 0.73 0.68 Diluted 0.12 0.07 0.73 0.68 Premium Brands Holdings Corporation Consolidated Statements of Cash Flows (Unaudited and in thousands of dollars) 13 weeks 14 weeks 52 weeks 53 weeks ended ended ended ended December 29, December 31, December 29, December 31, 2012 2011 2012 2011Cash flows from operating activities: Earnings 2,501 1,525 15,274 13,099 Items not involving cash: Depreciation of capital assets 4,007 3,916 15,490 12,091 Amortization of intangible and other assets 1,136 1,202 4,841 3,578 Amortization of financing costs 74 212 380 405 Change in value of puttable interest in subsidiaries 450 150 1,655 1,828 Loss on sales of capital assets 20 24 264 23 Gain on disposal of goodwill - (521) - (521) Accrued interest income (7) (8) (29) (51) Net unrealized gain on foreign currency contracts and interest rate swaps (500) 595 (400) (120) Equity loss in associate - - - 277 Deferred revenue (105) (328) (492) (544) Accretion of convertible debentures, long- term debt and provisions 643 721 3,048 2,402 Writedown of capital assets 6,900 - 6,900 - Reversal of provision for contingent consideration (7,226) - (7,226) - Acquisition bargain purchase gain - (100) - (1,455) Deferred income taxes 1,048 1,580 4,757 4,562---------------------------------------------------------------------------- 8,941 8,968 44,462 35,574 Change in non-cash working capital 1,673 3,542 6,368 (6,050)---------------------------------------------------------------------------- 10,614 12,510 50,830 29,524----------------------------------------------------------------------------Cash flows from financing activities: Long-term debt - net (9,708) 3,813 (41,872) 33,553 Bank indebtedness and cheques outstanding 9,803 7,637 (7,451) 12,068 Convertible debentures - net of issuance costs - - 54,600 54,600 Deferred revenue - - - 1,118 Purchase of 7.00% debentures under normal course issuer bid (459) - (720) - Dividends paid to shareholders, net of dividends received from cancelled shares (6,187) (5,025) (24,151) (21,149) Share issuance and financing costs - (322) (2) (703)---------------------------------------------------------------------------- (6,551) 6,103 (19,596) 79,487----------------------------------------------------------------------------Cash flows from investing activities: Capital asset additions (3,637) (14,295) (30,435) (23,493) Business acquisitions - (2,167) - (76,848) Repayment of share purchase loans and notes receivable 18 55 228 118 Promissory note from associate - - - (300) Payment for customer supply agreement - (2,187) - (2,187) Purchase of trade name - (355) - (355) Net proceeds from sales of assets 30 999 315 1,018 Payments to shareholders of non- wholly owned subsidiaries (83) (227) (1,310) (672) Purchase of shares of non-wholly owned subsidiary pursuant to puttable interest - - - (2,286) Payment of provisions (263) - (838) - Other - 168 - ----------------------------------------------------------------------------- (3,935) (18,009) (32,040) (105,005)----------------------------------------------------------------------------Increase (decrease) in cash and cash equivalents 128 604 (806) 4,006Effects of exchange on cash and cash equivalents (3) (34) (34) (14)Cash and cash equivalents - beginning of period 3,895 4,290 4,860 868----------------------------------------------------------------------------Cash and cash equivalents - end of period 4,020 4,860 4,020 4,860--------------------------------------------------------------------------------------------------------------------------------------------------------
Contacts:
Premuim Brands Holdings Corporation
George Paleologou
President and CEO
(604) 656-3100
Premuim Brands Holdings Corporation
Will Kalutycz
CFO
(604) 656-3100
www.pbh.com
