Free cash flow was $5.6 million lower than the comparable quarter in fiscal 2012 and by $9.2 million year-to-date. The decrease for the quarter was due mainly to the lower adjusted EBIT of $3.7 million and additional current income taxes of $2.3 million versus last year comparable quarter. The year-to-date decrease of $9.2 million is also due to the lower adjusted EBIT of $11.9 million and higher current income taxes of $1.2 million offset by deferred financing costs of $2.7 million incurred on the issuance of the 5th series convertible debentures and by higher pension contribution of approximately $0.7 million incurred in fiscal 2012.
Changes in non-cash working capital, income taxes payable and interest payable represent quarter-over-quarter movement in current assets such as accounts receivables and inventories, and current liabilities like accounts payable. Movements in these accounts are due mainly to timing in the collection of receivables, receipts of raw sugar and payment of liabilities. Increases or decreases in such accounts do not therefore constitute available cash for distribution. Such increases or decreases are financed from available cash or from the Company's available credit facilities of $200.0 million. Increases or decreases in short-term bank indebtedness are also due to timing issues from the above, and therefore do not constitute available free cash flow.
Mark-to-market and financial instruments non-cash amount combined impact of negative $0.3 million for the quarter and of positive $1.5 million year-to-date do not represent cash items as these contracts will be settled when the physical transactions occur, which is the reason for the adjustment to free cash flow.
Capital expenditures, net of investment capital, were higher by approximately $0.1 million for the quarter and by approximately $0.5 million year-to-date due mainly to timing of capital projects. Investment capital expenditures are added back as these capital projects are not required for the operation of the refineries, but are undertaken due to their substantial operational savings to be realized upon their completion.
In the second quarter an amount of $0.1 million was received following the exercise of share options by an executive of the Company, the same as the comparable quarter of fiscal 2012.
In the first quarter of fiscal 2012, the Company issued fifth series convertible unsecured subordinated debentures ("Fifth series debentures") for which an amount of approximately $2.7 million of deferred financing charges was incurred.
The Company declared and paid an additional dividend of $33.9 million based on previously earned but undistributed free cash flow of approximately $64.7 million generated in the last five fiscal years ended September 29, 2012. In addition the Company pays a quarterly dividend of 9.0 cents per common share, for a total amount of approximately $8.5 million per quarter in fiscal 2013 as opposed to a dividend of 8.5 cents per share totaling $8.0 million per quarter in the first two quarters of fiscal 2012.
There are no significant changes in the contractual obligations table disclosed in the Management's Discussion and Analysis of the September 29, 2012 Annual Report.
At March 30, 2013, the Company had commitments to purchase a total of 908,000 metric tonnes of raw sugar, of which 56,300 metric tonnes had been priced for a total dollar commitment of $27.3 million.
Most Popular Stories
- Twitter Names Woman to Board
- Obamacare Doing Just Fine, Ky. Governor Says
- Rand Paul Signs up for Obamacare
- Hispanic Employment Improves in November
- How to Arm Yourself Against CryptoLocker Virus
- Thalia Gets Star on Hollywood Walk of Fame
- Trapped Florida Whales Head for Deeper Waters
- Aspen Contracting Adding 300 Jobs
- Dow Jumps 200 Points on Jobs Data
- U.S. Chamber to Run Ads in Idaho, W.Va.