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FORWARD-LOOKING INFORMATION WARNING
This First Quarter 2013 press release contains forward-looking statements with respect to us and the chemical industry. Refer to Forward-Looking Information Warning in the attached First Quarter 2013 Management's Discussion and Analysis for more information.
(1) Adjusted EBITDA, Adjusted net income and Adjusted net income per commonshare are non-GAAP measures which do not have any standardized meaningprescribed by GAAP. These measures represent the amounts that areattributable to Methanex Corporation shareholders and are calculated byexcluding the mark-to-market impact of share-based compensation as a resultof changes in our share price and items considered by management to be non-operational, including asset impairment charges. Refer to the AdditionalInformation - Supplemental Non-GAAP Measures section of the attached InterimReport for the three months ended March 31, 2013 for reconciliations to themost comparable GAAP measures.
Interim Report for the Three Months Ended March 31, 2013
At April 24, 2013 the Company had 94,942,159 common shares issued and outstanding and stock options exercisable for 3,418,808 additional common shares.
Share Information
Methanex Corporation's common shares are listed for trading on the Toronto Stock Exchange under the symbol MX and on the Nasdaq Global Market under the symbol MEOH.
Transfer Agents & Registrars
CIBC Mellon Trust Company320 Bay Street Toronto, OntarioCanada M5H 4A6Toll free in North America: 1-800-387-0825
Investor Information
All financial reports, news releases and corporate information can be accessed on our website at www.methanex.com.
FIRST QUARTER MANAGEMENT'S DISCUSSION AND ANALYSIS
Except where otherwise noted, all currency amounts are stated in United States dollars.
FINANCIAL AND OPERATIONAL HIGHLIGHTS
-- A reconciliation from net income (loss) attributable to Methanex shareholders to Adjusted net income(1) and the calculation of Adjusted net income per common share(1) is as follows:
Three Months Ended ----------------------------------------($ millions except number of shares Mar 31 Dec 31 Mar 31 and per share amounts) 2013 2012 2012--------------------------------------------------------------------------------------------------------------------------------------------------------Net income (loss) attributable to Methanex shareholders $ 60 $ (140) $ 22 Mark-to-market impact of share- based compensation, net of tax 28 8 17 Asset impairment charge, net of tax - 193 -----------------------------------------------------------------------------Adjusted net income (1) $ 88 $ 61 $ 39----------------------------------------------------------------------------Diluted weighted average shares outstanding (millions) 96 94 95Adjusted net income per common share (1) $ 0.92 $ 0.64 $ 0.41------------------------------------------------------------------------------ We recorded Adjusted EBITDA(1) of $149 million for the first quarter of 2013 compared with $119 million for the fourth quarter of 2012. The increase in Adjusted EBITDA(1) was primarily due to an increase in average realized price to $412 per tonne for the first quarter of 2013 from $389 per tonne for the fourth quarter of 2012.-- Production for the first quarter of 2013 was 1,057,000 tonnes compared with 1,067,000 tonnes for the fourth quarter of 2012. Refer to the Production Summary section.-- Sales of Methanex-produced methanol were 1,024,000 tonnes in the first quarter of 2013 compared with 1,059,000 in the fourth quarter of 2012.-- During the first quarter of 2013, we announced our commitment to restart the Waitara Valley facility and complete a debottlenecking project at the Motunui site. We expect these initiatives will allow our New Zealand operations to operate at their full annual production capacity of up to 2.4 million tonnes, depending on natural gas composition.-- We continue to make good progress with our project to relocate an idle Chile facility to Geismar, Louisiana. During the first quarter of 2013, we signed an agreement with Chesapeake Energy to supply the facility's natural gas requirements for a ten-year period.-- We announced today that we have reached a final investment decision to proceed with the relocation of a second Chile facility to the Geismar site. We expect this project will add a further 1.0 million tonnes of annual operating capacity and is expected to be operational in early 2016.-- We also announced today that the Board of Directors has approved an 8 percent increase to our quarterly dividend to shareholders, from $0.185 per share to $0.20 per share, effective with the dividend payable June 30, 2013.(1) These items are non-GAAP measures that do not have any standardizedmeaning prescribed by GAAP and therefore are unlikely to be comparable tosimilar measures presented by other companies. Refer to the AdditionalInformation - Supplemental Non-GAAP Measures section for a description ofeach non-GAAP measure and reconciliations to the most comparable GAAPmeasures.
