3. Seasonality of Operations
Energy Services
Sales typically peak in the first quarter when approximately one-third of annual propane and other refined fuels sales volumes and gross profits are generated due to the demand from heating end-use customers. They then decline through the second and third quarters rising seasonally again in the fourth quarter with heating demand. Similarly, net working capital is typically at seasonally high levels during the first and fourth quarters, and normally declines to seasonal low in the second and third quarters. Net working capital is also significantly influenced by wholesale propane prices and other refined fuels.
Construction Products Distribution
Sales typically peak during the second and third quarters with the seasonal increase in building and renovation activities. They then decline through the fourth quarters and into the subsequent first quarter. Similarly, net working capital is typically at seasonally highs levels during the second and third quarters, and normally decline to seasonal lows in the fourth and first quarters.
4. Trade and Other Receivables
A summary of trade and other receivables is as follows:
Note March 31, 2013 December 31, 2012----------------------------------------------------------------------------Trade receivables, net of allowances 12 369.5 355.9Accounts receivable - other 42.0 32.3Finance lease receivable 0.8 0.8----------------------------------------------------------------------------Trade and other receivables 412.3 389.0--------------------------------------------------------------------------------------------------------------------------------------------------------
5. Inventories
The cost of inventories recognized as an expense during the three months ended March 31, 2013 was $744.5 million (March 31, 2012 - $756.2 million). Superior recorded an inventory write down during the three months ended March 31, 2013 and 2012 of $nil million and $0.7 million, respectively. Superior recorded no reversals of inventory write downs during the three months ended March 31, 2013 and 2012.
6. Property, Plant and Equipment
---------------------------------------------------------------------------- Specialty Energy Chemicals Services Plant & Retailing Land Buildings Equipment Equipment----------------------------------------------------------------------------Cost----------------------------------------------------------------------------Balance at December 31, 2012 29.7 148.6 738.3 589.8----------------------------------------------------------------------------Balance at March 31, 2013 29.9 149.8 749.4 594.5----------------------------------------------------------------------------Accumulated Depreciation----------------------------------------------------------------------------Balance at December 31, 2012 - 43.4 346.3 306.0----------------------------------------------------------------------------Balance at March 31, 2013 - 45.1 356.9 313.2--------------------------------------------------------------------------------------------------------------------------------------------------------Carrying Amount----------------------------------------------------------------------------Balance at December 31, 2012 29.7 105.2 392.0 283.8----------------------------------------------------------------------------Balance at March 31, 2013 29.9 104.7 392.5 281.3------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ Construction Products Distribution Leasehold Equipment Improvements Total----------------------------------------------------------------------------Cost----------------------------------------------------------------------------Balance at December 31, 2012 43.3 9.7 1,559.4----------------------------------------------------------------------------Balance at March 31, 2013 43.7 9.7 1,577.0----------------------------------------------------------------------------Accumulated Depreciation----------------------------------------------------------------------------Balance at December 31, 2012 25.6 8.2 729.5----------------------------------------------------------------------------Balance at March 31, 2013 26.9 8.1 750.2--------------------------------------------------------------------------------------------------------------------------------------------------------Carrying Amount----------------------------------------------------------------------------Balance at December 31, 2012 17.7 1.5 829.9----------------------------------------------------------------------------Balance at March 31, 2013 16.8 1.6 826.8--------------------------------------------------------------------------------------------------------------------------------------------------------
