2013 Financial Outlook
Superior expects 2013 AOCF per share of $1.55 to $1.85, consistent with the financial outlook provided on March 7, 2013, which includes the impact of Superior's common share equity issuance which closed on March 27, 2013. Superior's 2013 financial outlook is consistent with Superior's 2012 actual results as the impact of ongoing improvements in the businesses as a result of Superior's business initiative projects, average weather, as measured by degree days being consistent with the five year average, the absence of one-time restructuring costs, will be offset by the absence of the one-time TransCanada payment received in third quarter 2012 and a greater number of common shares outstanding due to the issuance of 12,960,500 shares on March 27, 2013. Superior's 2013 financial outlook has been provided on the basis that Superior will continue to prepare and file its future tax returns on a basis consistent with its view of the outcome of the CRA's challenge of its corporate conversion transaction.
For additional details on the assumptions underlying the 2013 financial outlook, see Superior's 2013 First Quarter Management's Discussion and Analysis.
Debt Management Update
Superior's anticipated debt repayment for 2013 and total debt to EBITDA leverage ratio as at December 31, 2013, based on Superior's 2013 financial outlook is detailed in the chart below.
---------------------------------------------------------------------------- (Dollar Per (Millions of Share) Dollars)----------------------------------------------------------------------------2013 financial outlook AOCF per share - mid- point (1) 1.70 209.2Maintenance capital expenditures, net (0.23) (28.0)Capital lease obligation repayments (0.13) (15.8)Payments to CRA in relation to tax reassessment (2) (0.13) (16.5)----------------------------------------------------------------------------Cash flow available for dividends and debt repayment before growth capital 1.21 148.9Expansion of Port Edward's and Saskatoon facilities (0.22) (26.5)Other growth capital expenditures (0.17) (21.2)Proceeds from dividend reinvestment program 0.04 4.9----------------------------------------------------------------------------Estimated 2013 free cash flow available for dividend and debt repayment 0.86 106.1Proceeds from equity issue, net of issue costs 1.12 137.8Dividends (0.60) (73.8)----------------------------------------------------------------------------Total estimated debt repayment 1.38 170.1Estimated total debt to EBTIDA as at December 31, 2013 3.3X - 3.7X 3.3X - 3.7X--------------------------------------------------------------------------------------------------------------------------------------------------------Dividends 0.60 73.8Calculated payout ratio after all capital and payment to CRA 70% 70%--------------------------------------------------------------------------------------------------------------------------------------------------------(1) See "Financial Outlook" in Superior's 2013 First Quarter Management's Discussion and Analysis for additional details including assumptions, definitions and risk factors.(2) See "CRA Income Tax Update" for additional details.
