(presented in US dollars)
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.
Net income attributable to common shareholders for the first quarter of 2013 was $16.0 million or 25 cents in earnings per share compared to $16.6 million or 25 cents per share in the corresponding quarter of 2012, a decrease of 3.4 percent. Operating expense savings and a lower income tax expense each contributed approximately 1.0 cent in earnings per share while a lesser amount attributable to non-controlling interests provided an additional 0.5 cents in earnings per share. This helped to offset the gross profit decline which reduced earnings per share by 2.5 cents.
As discussed in the 2012 first quarter Management's Discussion and Analysis, the 2012 fiscal year consisted of 53 weeks, with the first quarter of that year comprised of 14 weeks, one week more than the current period. The additional week included in the 2012 first quarter was essentially the last week of the 2011 calendar year which contained several statutory holidays. As a consequence, it is estimated that this additional week contributed in excess of 5 percent to first quarter 2012 volumes and net income results.
Revenue for the first quarter of 2013 was $169.9 million, $1.9 million or 1.1 percent less than the first quarter of 2012. Volumes exceeded the prior year quarter by 0.3 percent, in spite of the additional week of revenues in the first quarter of 2012 as noted above and the divestiture of the drink cup product line in the second half of 2012 which unfavorably impacted revenues by 1.1 percent in the current period. Normalizing for these two factors results in a respectable overall volume growth in the quarter approaching 7 percent. Demand was, however, uneven across the Company's product groups. Rigid container volume growth was particularly brisk, exceeding 10 percent, and after adjusting for the additional week in 2012 and the divestiture of the drink cup product line, rigid volumes exceeded 20 percent led by specialty beverage and custom retort containers. Packaging machinery also had a strong quarter, advancing by more than 50 percent. Volumes in lidding and specialty film packaging fell just short of the prior year quarter, however, progressed in the low single-digit percentage range when the 2012 first quarter is normalized to 13 weeks. Modified atmosphere packaging was more challenged as volumes failed to reach the levels of the prior year corresponding quarter, exhibiting a small decline on normalized volumes. Weak demand for biaxially oriented nylon resulted in volumes receding in the low double-digit range as customer order levels in this product line continued their depressed levels from the latter half of 2012. Overall selling prices declined by 1.4 percent in comparison to the first quarter of 2012, while foreign exchange had a negligible impact on revenues in the period.
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