A more detailed discussion with respect to each operating business segment follows:
Revenues of the Masonry Products business segment were $12,312 for the quarter ended March 31, 2013 compared to $14,793 for the same period in 2012. The decrease in volumes was due to unfavourable weather conditions in the first quarter of 2013 compared to milder conditions in the same quarter of 2012.
Higher plant capacity utilization during the first quarter of the current year compared to the prior period resulted in lower per unit production costs. While higher production levels and lower shipments increased inventory volumes, the expected catch-up in construction activity should bring inventory levels back in line by this summer.
Operating income for the quarter ended March 31, 2013 was $6 compared to operating loss of $399 for the same quarter in 2012.
The Landscape Products business segment incurred an operating loss of $2,232 on revenues of $577 for the three month period ended March 31, 2013 compared to an operating loss of $1,888 on revenues of $1,202 for the comparable period in 2012. The decline in operating results was due to a decrease in sales volumes combined with equipment overhaul expenses and new equipment commissioning costs. Historically, the significant majority of planned equipment maintenance is scheduled during the winter months.
Cash flow used for operating activities totaled $4,768 for the period ended March 31, 2013 compared to $1,944 for the same period in the prior year. Significantly higher inventory levels contributed to the increase in cash used for operations in 2013.
Cash utilized for purchases of property, plant and equipment totaled $774 for the quarter, compared to $843 in 2012.
Short term loans advanced to Universal totaled $475 during the quarter compared to $500 in the comparative prior period.
The Company's Masonry Products and Landscape Products business segments are seasonal in nature. The Landscape Products business is affected by seasonality to a greater degree than the Masonry Products business. As a result of this seasonality, operating results are impacted accordingly and cash requirements are generally expected to increase through the first half of the year and decline through the second half of the year.
As at March 31, 2013, bank operating advances were $16,662. This represented an increase of $6,227 from the amount outstanding at December 31, 2012. The increase in bank operating advances was utilized to meet working capital requirements, capital expenditures and repayments of finance lease obligations in the first quarter of 2013. Trade payables totaled $12,088 at March 31, 2013 compared to $11,675 at December 31, 2012. Trade and other receivables and inventories totaled $10,548 and $27,078, respectively, at March 31, 2013 compared to $10,832 and $22,287, respectively, at December 31, 2012.
The ratio of total liabilities to shareholders' equity was 0.55:1 at March 31, 2013 compared to 0.50:1 at December 31, 2012. The increase in this ratio from December 2012 to March 2013 was primarily due to the increase in bank operating advances, as noted above and lower retained earnings resulting from the loss incurred for the three month period ended March 31, 2013. Partially offsetting these factors was a notable increase in the foreign currency translation amount for the quarter over the corresponding quarter in 2012. This amount is reported in Accumulated other comprehensive loss in the condensed interim consolidated financial statements and arose due to the weakening of the Canadian dollar in relation to the US dollar in the first quarter in 2013.
Most Popular Stories
- Twitter Names Woman to Board
- NSA Tracks 5 Billion Cellphone Records a Day
- Nelson Mandela Dies After Momentous Life
- Nelson Mandela Dead at 95
- W.H. Corrects Itself on Unclegate
- Pope Francis Says He'll Fight Child Sex Abuse
- Yemen Attack Kills 52
- Fast-Food Workers Want $15 an Hour
- Roybal-Allard Tours Gordon Brush Plant
- Aspen Contracting Adding 300 Jobs