This First Quarter 2013 Management's Discussion and Analysis ("MD&A") dated April 24, 2013 for Methanex Corporation ("the Company") should be read in conjunction with the Company's condensed consolidated interim financial statements for the period ended March 31, 2013 as well as the 2012 Annual Consolidated Financial Statements and MD&A included in the Methanex 2012 Annual Report. Unless otherwise indicated, the financial information presented in this interim report is prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). The Methanex 2012 Annual Report and additional information relating to Methanex is available on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.
Effective January 1, 2013, we adopted new IFRS standards related to consolidation and joint arrangement accounting. Under these new standards, our 63.1% interest in the Atlas entity, which was previously proportionately consolidated in our financial statements, is accounted for using the equity method. This change has been applied retrospectively. As a result, amounts related to Atlas are no longer included in individual line items in our consolidated financial statements and the net assets and net earnings are presented separately. For purposes of analyzing our consolidated financial results in this MD&A, the adjusted EBITDA from our 63.1% interest in the Atlas entity is included in Adjusted EBITDA.
FINANCIAL AND OPERATIONAL DATA
Three Months Ended ----------------------------($ millions, except per share amounts and where Mar 31 Dec 31 Mar 31 noted) 2013 2012 2012--------------------------------------------------------------------------------------------------------------------------------------------------------Production (thousands of tonnes) (attributable to Methanex shareholders) 1,057 1,067 945Sales volumes (thousands of tonnes): Methanex-produced methanol (attributable to Methanex shareholders) 1,024 1,059 926 Purchased methanol 588 664 691 Commission sales (1) 219 176 198----------------------------------------------------------------------------Total sales volumes 1,831 1,899 1,815Methanex average non-discounted posted price ($ per tonne) (2) 474 450 437Average realized price ($ per tonne) (3) 412 389 382Adjusted EBITDA (attributable to Methanex shareholders) (4) 149 119 93Adjusted cash flows from operating activities (attributable to Methanex shareholders) (4) 127 101 89Cash flows from operating activities 118 76 74Adjusted net income (attributable to Methanex shareholders) (4) 88 61 39Net income (loss) attributable to Methanex shareholders 60 (140) 22Adjusted net income per common share (attributable to Methanex shareholders) (4, 5) 0.92 0.64 0.41Basic net income (loss) per common share (attributable to Methanex shareholders) 0.64 (1.49) 0.24Diluted net income (loss) per common share (attributable to Methanex shareholders) 0.63 (1.49) 0.23Common share information (millions of shares): Weighted average number of common shares 95 94 93 Diluted weighted average number of common shares 96 94 95 Number of common shares outstanding, end of period 95 94 94----------------------------------------------------------------------------(1) Commission sales represent volumes marketed on a commission basisrelated to the 36.9% of the Atlas methanol facility and 40% of the Egyptmethanol facility that we do not own.(2) Methanex average non-discounted posted price represents the average ofour non-discounted posted prices in North America, Europe and Asia Pacificweighted by sales volume. Current and historical pricing information isavailable at http://www.methanex.com/.(3) Average realized price is calculated as revenue, excluding commissionsearned and the Egypt non-controlling interest share of revenue but includingan amount representing our share of Atlas revenue, divided by the totalsales volumes of Methanex-produced (attributable to Methanex shareholders)and purchased methanol.(4) 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.(5) For the three month period ended December 31, 2012, stock options havebeen excluded 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.
