Brampton Brick Reports Earnings for the Fourth Quarter and Year Ended December 31, 2004.BRAMPTON, Ontario Brampton (IPA: ˈbræmptən, ˈbræmtən) is a city in the GTA of Ontario, Canada and the seat of Peel Region. As of the 2006 census, Brampton's population stood at 433,806. -- Brampton Brampton, city (1991 pop. 234,445), S Ont., Canada, NW of Toronto. Incorporated as a village (1852), a town (1873), and then a city (1976), it is noted for its greenhouses and flowers. Automobiles, shoes, lumber, optical goods, and other products are made. Brick Limited (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :BBL "Be back later." See digispeak. (chat) BBL - (I will) be back later. .SV.A) today reported net income for the year ended December December: see month. 31, 2004 of $15,707,000, or $1.45 per share, on a weighted average 10,847,000 Class A Subordinate Voting and Class B Multiple Voting Noun 1. multiple voting - the act of voting in more than one place by the same person at the same election (illegal in U.S.) balloting, vote, voting, ballot - a choice that is made by counting the number of people in favor of each alternative; "there were only 17 shares outstanding compared to $17,975,000, or $1.66 per share, on a weighted average 10,833,000 Class A Subordinate Voting and Class B Multiple Voting shares outstanding for the year ended December 31, 2003. For the fourth quarter ended December 31, 2004, net income was $1,260,000, or $0.12 per share. Net income for the comparable period in 2003 was $3,526,000, or $0.33 per share. The factors contributing to the $2,268,000 decrease in net income for the year were lower clay brick shipments, reduced margins in the concrete products business segment, a foreign currency exchange loss, a charge against earnings to write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. the net book value of unutilized production equipment in the concrete products business segment and start-up Start-up The earliest stage of a new business venture. losses of the new Da Vinci da Vinci Surgery A surgical robot for performing certain surgeries–eg, mitral valve repair and laparoscopic procedures–eg, cholecystectomy and gastric ulcer repair. See Laparoscopic surgery, Robotics, Surgical robot. Stone Craft operations. The above noted variances were partially offset by lower interest costs, an increase in the equity income contribution from the Company's 38.2% investment in Richvale York York, former name of Toronto, Canada York, Ont.: see Toronto, Ont., Canada. York, city, England York, city (1991 pop. 123,126) and district, North Yorkshire, N England, at the confluence of the Ouse and Foss rivers. Block Inc., lower income taxes and the non-controlling interests' share of losses incurred in the concrete products business segment. In addition, net income for 2003 included a gain on sale of land which, net of estimated income taxes thereon there·on adv. 1. On or upon this, that, or it. 2. Archaic Following that immediately; thereupon. Adv. 1. thereon - on that; "text and commentary thereon" on it, on that , amounted to $558,000, or $0.05 per share. In the clay brick business segment, persistent rainy rain·y adj. rain·i·er, rain·i·est Characterized by, full of, or bringing rain. rain  i·ness n.Adj. weather conditions throughout much of the year, a strike during the second quarter by road and sewer SEWER. Properly a trench artificially made for the purpose of carrying water into the sea, river, or some other place of reception. Public sewers are, in general, made at the public expense. Crabb, R. P. Sec. 113. construction trade unions and the additional time now required by land developers and builders to obtain all necessary approvals resulted in a 6.1% decline in clay brick shipments for the year. Gross profit in this business segment was down only marginally from 2003 in spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite the decrease in the clay brick shipments. Operating results in 2003 were significantly impacted by the kiln improvement project undertaken in the first quarter of 2003. In the concrete products business segment, the positive effect of higher volumes was offset by lower average selling prices The average sales price of goods or commodities. Especially used in the retail sector and technology distribution. , primarily in the U.S. market. Lower selling prices were largely due to price reductions for certain products which were implemented in the third quarter in response to product being shipped into the Michigan Michigan (mĭsh`ĭgən), upper midwestern state of the United States. It consists of two peninsulas thrusting into the Great Lakes and has borders with Ohio and Indiana (S), Wisconsin (W), and the Canadian province of Ontario (N,E). market at substantially lower prices. The impact of these price reductions was estimated to be in excess of $900,000. Lower selling prices combined with higher manufacturing costs and additional expenses of new business initiatives, specifically the new Chicago Chicago, city, United States Chicago (shĭkä`gō, shĭkô`gō), city (1990 pop. 2,783,726), seat of Cook co., NE Ill., on Lake Michigan; inc. 1837. sales depot opened in August, 2003 and the Da Vinci Stone Craft business acquired in September September: see month. , 2003, resulted in reduced margins and lower gross profit in this business segment. In the medical waste business segment, higher volumes produced an increase in net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight and gross profit. This business segment also benefited from an adjustment in 2004 to record the income tax benefit applicable to income tax losses carried forward from prior years. With respect to the fourth quarter results, the $2,266,000 decrease in net income was due to lower clay brick shipments, the adjustment to write-off of the net book value of unutilized production equipment in the concrete products business segment and an increase in the foreign currency exchange loss. Similar to the annual results, lower interest costs, lower income taxes, the non-controlling interests' share of losses in the concrete products business segment and improved operating results of Richvale York Block Inc. partially offset the negative impact of the factors noted above. As a result of the implementation of the new CICA CICA Competition In Contracting Act of 1984 (USA) CICA Canadian Institute of Chartered Accountants CICA Competition In Contracting Act CICA Criminal Injuries Compensation Authority (UK) Handbook
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Firms must recognize the ARO liability in the period it was acquired, generally acquisition. " - which became effective January January: see month. 1, 2004, the Company is required to restate re·state tr.v. re·stat·ed, re·stat·ing, re·states To state again or in a new form. See Synonyms at repeat. re·state the prior period comparative financial statements utilizing the new accounting policy. Consequently, previously reported net income of $18,004,000, or $1.66 per share, for the year ended December 31, 2003 has been reduced by $29,000 to $17,975,000, also $1.66 per share, and previously reported fourth quarter net income of $3,532,000, or $0.33 per share, has been reduced by $6,000 to $3,526,000, also $0.33 per share. Effective January 1, 2004 the Company also adopted a new method of presentation of trucking and delivery expenses with respect to brick and concrete product shipments. These expenses are now reported under Cost of sales, selling, general and administrative expenses. Previously, they were netted against cartage cart·age n. 1. The act or process of carting. 2. The cost of carting. cartage a fee charged for carting of goods. See also: Dues and Payment Noun 1. revenue which is reported under Net sales. The effect of this change has been to increase previously reported amounts for Net sales and Cost of sales, selling, general and administrative expenses by $1,073,000 for the quarter and by $4,653,000 for the year ended December 31, 2003. There was no effect on reported net income as a result of this change. Cash flow generated by operating activities totaled $22,560,000 for the year ended December 31, 2004 compared to $21,654,000 in 2003. The negative effect of lower earnings was more than offset by a significant reduction in income tax payments in 2004 compared to 2003. Significant income tax instalments were paid in February February: see month. , 2003 with respect to the increase in taxable income Under the federal tax law, gross income reduced by adjustments and allowable deductions. It is the income against which tax rates are applied to compute an individual or entity's tax liability. The essence of taxable income is the accrual of some gain, profit, or benefit to a taxpayer. from clay brick operations in 2002 over 2001 and to the 2002 taxable income generated by the newly incorporated concrete products subsidiaries. The timing of these payments, which is provided for under applicable income tax legislation, had a substantial negative impact on cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses in 2003. Cash resources expended ex·pend tr.v. ex·pend·ed, ex·pend·ing, ex·pends 1. To lay out; spend: expending tax revenues on government operations. See Synonyms at spend. 2. for the purchase of property, plant and equipment were considerably lower in 2004 than in 2003. Capital expenditures in 2003 included $3,300,000 related to the kiln improvement project undertaken in the first quarter of last year. There was no similar major capital expenditure project undertaken in 2004. The Company acquired an additional 7% interest in Oaks Concrete Products Ltd, effective June June: see month. 30, 2004, for cash consideration of $3,844,000 bringing its aggregate interest to 70%. During the fourth quarter of 2004, cash flow provided by operations amounted to $5,579,000 compared to $9,631,000 for the comparable period in 2003, reflecting lower earnings and the net effects of changes in non-cash items, notably future income taxes, the loss on disposal of property, plant and equipment and accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying . As previously announced, the Board of Directors declared a dividend of $0.10 per Class A Subordinate Voting Share and Class B Multiple Voting Share outstanding, payable on December 31, 2004 to shareholders of record on December 15, 2004. The aggregate dividend amount was $1,085,000. The Board of Directors has adopted a policy to pay semi-annual dividends of $0.10 per share, subject to specific Board of Directors' approval of each future dividend at the time, anticipated to be paid in June and December of each year. Certain statements contained herein constitute "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. ". Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements of the Company to be materially different from any future result, performance or achievements expressed or implied by such forward-looking statements. Brampton Brick is Canada's second largest manufacturer of clay brick. Products are used for residential construction and for industrial commercial, and institutional building projects. Oaks Concrete Products Ltd., a 70% owned subsidiary, manufactures concrete paving stones, retaining walls and enviro en·vi·ro n. pl. en·vi·ros Informal An environmentalist. products and sells related accessory accessory, in criminal law, a person who, though not present at the commission of a crime, becomes a participator in the crime either before or after the fact of commission. products for residential use and for industrial, commercial and institutional building projects. Da Vinci Stone Craft Ltd., a 75% owned subsidiary of Oaks Concrete Products Ltd. acquired in September, 2003, manufactures limestone limestone, sedimentary rock wholly or in large part composed of calcium carbonate. It is ordinarily white but may be colored by impurities, iron oxide making it brown, yellow, or red and carbon making it blue, black, or gray. The texture varies from coarse to fine. cast fireplace fireplace Opening made in the base of a chimney to hold an open fire. The opening is framed, usually ornamentally, by a mantel (or mantelpiece). A medieval development that replaced the open central hearth for heating and cooking, the fireplace was sometimes large enough to surrounds, wall tiles and other decorative products. Medical Waste Management Inc., a 65% owned subsidiary, operates a facility for the destruction of biomedical bi·o·med·i·cal adj. 1. Of or relating to biomedicine. 2. Of, relating to, or involving biological, medical, and physical sciences. and pharmaceutical waste, including the only commercially operated medical waste incinerator incinerator, furnace for burning refuse. The older and simpler kind of incinerator was a brick-lined cell with a metal grate over a lower ash pit, with one opening in the top or side for loading and another opening in the side for removing incombustible masses called in Ontario Ontario, city, United States Ontario, city (1990 pop. 133,179), San Bernardino co., S Calif., near Los Angeles, in a region of vineyards; inc. 1891. . Roxy Roxy tries to “save” immoral husband. [Am. Lit.: Roxy] See : Faithfulness Construction Co. Limited, an 80% owned subsidiary, provides trucking services to third parties in addition to transporting raw materials and finished products for the Company. The Company also holds a 38.2% interest in Richvale York Block Inc., the largest manufacturer of concrete block in Ontario.
BRAMPTON BRICK Limited
Selected Financial Information
(Thousands of dollars, except per share amounts)
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(unaudited)
Three months ended Year ended
December 31 December 31
CONSOLIDATED STATEMENTS OF INCOME 2004 2003 2004 2003
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Net sales $ 20,655 $ 24,307 $ 105,920 $ 107,332
Cost of sales, selling, general
and administrative expenses 15,309 15,441 70,843 69,268
Amortization 2,670 2,564 10,696 10,069
-------- -------- --------- ---------
17,979 18,005 81,539 79,337
Operating income before the
undernoted items 2,676 6,302 24,381 27,995
Interest on long-term debt (248) (344) (971) (1,585)
Other interest income (expense) 42 (13) (95) (191)
Equity income (loss) from
Richvale York Block Inc (19) (192) 502 251
Foreign currency exchange
gain (loss) (352) (125) (685) 47
Other expense (822) (28) (803) (247)
-------- -------- --------- ---------
(1,399) (702) (2,052) (1,725)
Income before gain on sale
of land 1,277 5,600 22,329 26,270
Gain on sale of land - 49 - 719
-------- -------- --------- ---------
Income before income taxes 1,277 5,649 22,329 26,989
Provision for income taxes 289 2,384 6,952 8,877
-------- -------- --------- ---------
Income before non-controlling
interests 988 3,265 15,377 18,112
Non-controlling interests 272 261 330 (137)
-------- -------- --------- ---------
Net income for the period $ 1,260 $ 3,526 $ 15,707 $ 17,975
-------- -------- --------- ---------
Net income per Class A and B
share $ 0.12 $ 0.33 $ 1.45 $ 1.66
-------- -------- --------- ---------
Weighted average Class A and B
shares outstanding (000's) 10,847 10,846 10,847 10,833
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(unaudited)
Three months ended Year ended
CONSOLIDATED STATEMENTS OF December 31 December 31
CASH FLOWS 2004 2003 2004 2003
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Cash provided by (used for)
Operating activities
Net income for the period $ 1,260 $ 3,526 $ 15,707 $ 17,975
Items not affecting cash
Amortization and accretion 2,670 2,564 10,736 10,108
Future income taxes (693) 1,316 (630) 2,722
Non-controlling interests (272) (261) (330) 137
Equity (income) loss from
Richvale York Block Inc. 19 192 (502) (251)
Gain on sale of land - (49) - (719)
Loss (gain) on disposal of
property, plant and equipment 1,172 (19) 1,287 494
------- ------- -------- --------
4,156 7,269 26,268 30,466
Changes in non-cash operating
items
Accounts receivable 6,075 6,954 991 (345)
Inventories (2,712) (2,412) (2,983) (2,543)
Accounts payable and accrued
liabilities (1,248) (1,172) (2,795) 578
Income taxes payable (net) (909) (1,084) 878 (6,038)
Other 217 76 201 (464)
------- ------- -------- --------
1,423 2,362 (3,708) (8,812)
Cash provided by operations 5,579 9,631 22,560 21,654
Investing activities
Purchase of property, plant and
equipment (839) (1,216) (3,588) (9,766)
Increase in investment in Oaks
Concrete Products Ltd. - - (3,844) -
Business acquisition - - - (325)
Proceeds from disposal of
property, plant and equipment (5) 30 960 668
Receipt of land sale proceeds
held in trust - 549 86 1,211
------- ------- -------- --------
Cash used for investment (844) (637) (6,386) (8,212)
Financing activities
Increase (decrease) in bank
operating advances 226 (2,088) 629 530
Increase in term loans - - - 155
Repayment of term loans (33) (6,508) (130) (16,514)
Payment of obligations under
capital leases (464) (600) (2,374) (2,408)
Payment of dividend (1,085) 0 (1,085) -
Proceeds from exercise of
stock options - 31 - 140
------- ------- -------- --------
Cash used for financing (1,356) (9,165) (2,960) (18,097)
Foreign exchange on cash held
in foreign currency 3 1 1 (62)
------- ------- -------- --------
Increase (decrease) in cash
and cash equivalents 3,382 (170) 13,215 (4,717)
Cash and cash equivalents -
Beginning of the period 10,189 526 356 5,073
------- ------- -------- --------
Cash and cash equivalents -
End of the period $ 13,571 $ 356 $ 13,571 $ 356
------- ------- -------- --------
(Thousands of dollars)
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December 31 December 31
CONSOLIDATED BALANCE SHEETS 2004 2003
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ASSETS
Current assets
Cash and cash equivalents $ 13,571 $ 356
Accounts receivable 9,227 10,036
Inventories 15,723 12,987
Income taxes recoverable 37 1,229
Other current assets 1,341 1,447
Future income taxes 36 -
--------- ---------
39,935 26,055
Property, plant and equipment (net) 101,343 109,799
Other assets
Goodwill 27,193 27,663
Future income taxes 714 -
Other 12,530 12,028
--------- ---------
40,437 39,691
--------- ---------
$ 181,715 $ 175,545
--------- ---------
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LIABILITIES
Current liabilities
Bank operating advances $ 2,440 $ 1,810
Accounts payable and accrued liabilities 9,094 12,156
Income taxes payable 537 327
Long-term debt, current portion 1,827 2,163
--------- ---------
13,898 16,456
Long-term debt, less current portion 16,442 17,646
Future income taxes 11,224 11,098
Asset retirement obligation 914 874
--------- ---------
42,478 46,074
Non-controlling interests 14,066 18,157
--------- ---------
SHAREHOLDERS' EQUITY 125,171 111,314
--------- ---------
$ 181,715 $ 175,545
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BRAMPTON BRICK LIMITED (TSX:BBL.SV.A) |
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