Advertisement
Adjusted Net Income and Adjusted Net Income per Common Share
Adjusted net income and Adjusted net income per common share are non-GAAP measures because they exclude the mark-to-market impact of share-based compensation and items that are considered by management to be non-operational, including asset impairment charges. The following table shows a reconciliation of net income (loss) attributable to Methanex shareholders to Adjusted net income and the calculation of Adjusted net income per common share:
Three Months Ended ---------------------------------($ millions except number of shares and per Mar 31 Dec 31 Mar 31 share amounts) 2013 2012 2012--------------------------------------------------------------------------------------------------------------------------------------------------------Net income (loss) attributable to Methanex shareholders $ 60 $ (140) $ 22 Mark-to-market impact of share-based compensation 31 8 18 Asset impairment charge - 297 - Income tax expense (recovery) related to above items (3) (104) (1)----------------------------------------------------------------------------Adjusted net income $ 88 $ 61 $ 39----------------------------------------------------------------------------Diluted weighted average shares outstanding 96 94 95Adjusted net income per common share (1) $ 0.92 $ 0.64 $ 0.41----------------------------------------------------------------------------(1) For the three months ended December 31, 2012, stock options have beenexcluded from the calculation of diluted net loss per common share(attributable to Methanex shareholders) as their effect would be anti-dilutive. However, for the calculation of adjusted net income per commonshare (attributable to Methanex shareholders) stock options have beenincluded in the denominator and the diluted weighted average number ofcommon shares is 95 million.
Adjusted Cash Flows from Operating Activities (attributable to Methanex shareholders)
Adjusted cash flows from operating activities differs from the most comparable GAAP measure, cash flows from operating activities, because it includes cash flows associated with our 63.1% equity share of the Atlas facility and does not include cash flows associated with the 40% non-controlling interest in the methanol facility in Egypt or changes in non-cash working capital.
The following table shows a reconciliation of cash flows from operating activities to adjusted cash flows from operating activities:
Three Months Ended ------------------------------ Mar 31 Dec 31 Mar 31($ millions) 2013 2012 2012--------------------------------------------------------------------------------------------------------------------------------------------------------Cash flows from operating activities $ 118 $ 76 $ 74Add (deduct): Cash flows related to associate (Atlas) (1) 9 10 (3) Cash flows related to non-controlling interests (2) (15) (13) (23) Changes in non-cash working capital 15 28 41----------------------------------------------------------------------------Adjusted cash flows from operating activities (attributable to Methanex shareholders) $ 127 $ 101 $ 89----------------------------------------------------------------------------(1) Cash flows related to associate represents the amount related to our63.1% equity share of the Atlas facility that is accounted for using theequity method.(2) Cash flows related to non-controlling interests represents the amountattributable to non-controlling interests that are consolidated in thefinancial statements.
