For the Three and Nine Months Ended September 30, 2013 and 2012
(In thousand of dollars except per share data)
ALC-T
TORONTO, Nov. 8, 2013 /CNW/ - The Corporation is reporting net earnings
for the three months ended September 30, 2013 of $28,328 compared to
$29,629 for the same period in 2012. Basic earnings per share for the
quarter were $0.73 compared to $0.76 for the same period in 2012.
For the nine months ended September 30, 2013, the Corporation is
reporting net earnings of $19,074 and basic earnings per share of $0.49
compared to net earnings of $17,913 and basic earnings per share of
$0.46 for the same period in 2012.
Consolidated revenues for the three months ended September 30, 2013
decreased from $165,020 to $146,948. For the nine months ended
September 30, 2013, revenues were $342,634 compared to $379,204 for the
same period in 2012.
The decreases in revenues and net earnings were due primarily to fewer
operating days for the Domestic Dry Bulk segment which was largely
offset by reduced foreign exchange losses and lower interest expense.
The results from operations are as follows:
|
|
|
Three Months Ended
September 30
|
Nine Months
Ended
September 30
|
|
|
|
2013
|
2012
|
2013
|
2012
|
Business segement operating
|
|
|
|
|
earnings net of income tax
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic Dry-Bulk
|
$ 19,082
|
$ 24,998
|
$ 346
|
$ 10,905
|
|
Product Tankers
|
5,658
|
3,831
|
10,575
|
7,246
|
|
Ocean Shipping
|
4,698
|
4,974
|
11,914
|
11,447
|
|
Real Estate
|
733
|
726
|
1,738
|
2,298
|
|
|
|
|
|
|
|
|
|
|
30,171
|
34,529
|
24,573
|
31,896
|
Not specifically identifiable to segments
|
|
|
|
|
Net (loss) gain on foreign currency
|
|
|
|
|
|
translation
|
(453)
|
(3,140)
|
2,344
|
(4,714)
|
|
Interest expense
|
(1,889)
|
(3,046)
|
(6,804)
|
(9,672)
|
|
Income tax recovery (expense)
|
499
|
1,286
|
(1,039)
|
403
|
|
|
|
|
|
|
|
|
|
|
$ 28,328
|
$ 29,629
|
$ 19,074
|
$ 17,913
|
|
|
|
|
|
|
|
Basic earnings per share
|
$ 0.73
|
$ 0.76
|
$ 0.49
|
$ 0.46
|
|
|
|
|
|
|
|
Domestic Dry Bulk
Operating earnings net of income tax for the third quarter decreased
from $24,998 in 2012 to $19,082 in 2013 due primarily to fewer
operating days resulting from vessels laid-up due to a dry-docking and
seasonally reduced summer business. In particular, grain and iron ore
shipments were lower this period than in the prior year period.
For the first nine-months operating earnings net of income tax decreased
from $10,905 in 2012 to $346. Fewer operating days during the winter
season as well as a somewhat slower start to the operating season in
2013 along with the third quarter factors mentioned above contributed
to the decrease. Great Lakes water levels also had an impact early in
the second quarter, as low levels reduced the volumes of cargos that
could be carried on some routes. Water levels have since returned to
levels comparable to 2012.
Product Tankers
Operating earnings net of income tax for the third quarter increased
from $3,831 to $5,658 and for first nine-months increased from $7,246
to $10,575. The increases in both periods resulted from additional
operating days due to strong customer demand, fewer days in regulatory
dry-docking combined with a decrease in repair costs, and a significant
reduction in legal costs associated the 2012 arbitration on the
rescission of three contracts to construct product tankers.
Ocean Shipping
Operating earnings net of income tax for the three months ended
September 30, 2013 were $4,698 compared to $4,974 for the same period
in 2012. The sale of a vessel in late 2012 was the primary reason for
the reduction in earnings.
The operating earnings net of income tax for the nine months ended
September 30, 2013 were $11,914 compared to $11,447 for the same period
in 2012. The improvement was a result of increased operating days as
there were no regulatory dry-dockings in 2013 versus two in 2012.
Earnings for 2012 included amounts recognized in the first quarter from
the settlement and collection of revenue relating to contract periods
prior to 2012 which had not previously met the Corporation's revenue
recognition criteria. Partially offsetting the improvements in earnings
is the reduced capacity due to the sale of the Ambassador in late 2012 and poor operating conditions during the month of February
2013.
Real Estate
Operating earnings net of income tax increased marginally for the 2013
third quarter when compared to 2012 and decreased from $2,298 for the
nine months ended September 30, 2012 to $1,738 for the 2013 nine month
period. The decreases were due primarily to vacancies in Sault Ste.
Marie and Waterloo.
Cash Dividends
The Board of Directors has authorized payment of a quarterly cash
dividend to shareholders of $0.07 per common share. The cash dividend
is payable on December 2, 2013 to shareholders of record on November
18, 2013.
Conference Call
Algoma will hold a conference call on Monday, November 11, 2013 at 10:00
am EST to discuss the results for the three and nine months ended
September 30, 2013.
This call will be webcast live at http://www.newswire.ca/en/webcast/detail/1245947/1372705, following which it will be available in archived format.
About Algoma Central Corporation
Algoma Central Corporation owns and operates the largest Canadian flag
fleet of dry and liquid bulk carriers operating on the Great Lakes -
St. Lawrence Waterway, including 19 self-unloading dry-bulk carriers,
seven gearless dry bulk carriers and seven product tankers. Algoma also
has interests in ocean dry-bulk and product tanker vessels operating in
international markets. Algoma owns a diversified ship repair and steel
fabricating facility active in the Great Lakes and St. Lawrence regions
of Canada. In addition, Algoma owns and manages commercial real estate
properties in Sault Ste. Marie, St. Catharines and Waterloo, Ontario.
A recently published economic impact study, commissioned by Marine
Delivers, demonstrates the significant role that the Great Lakes - St.
Lawrence Waterway plays in supporting the Canadian and U.S. economies.
Some 227,000 jobs and $35 billion in economic activity are supported by
the movement of goods within the Great Lakes / Seaway waterway. For
more information, including access to the full text of the economic
impact study, please consult the www.marinedelivers.com website.
Cautionary Statements
This press release may include forward-looking information within the
meaning of applicable securities laws including information concerning
the business and future results of Algoma. Forward-looking statements
in this press release include statements about the purchase of vessels
by Algoma. Readers are cautioned to not place undue reliance on
forward-looking information. Actual results and developments may differ
materially from those contemplated by this information. The statements
in this press release are made as of the date of this release and are
based on current expectations. Algoma undertakes no obligation to
update forward-looking information, other than as required by law, or
to comment on analyses, expectations, or statements made by
third-parties in respect of Algoma, its financial or operating results
or its securities. Algoma cautions that all forward-looking information
is inherently uncertain and actual results may differ materially from
the assumptions, estimates or expectations reflected or contained in
the forward-looking information, and that actual future results could
be affected by a number of factors, many of which are beyond Algoma's
control, including economic circumstances, technological changes,
weather conditions and the material risks and uncertainties identified
by Algoma and discussed on pages 13 to 17 of Algoma's Annual
Information Form for the year ended December 31, 2012, which is
available on SEDAR at www.sedar.com.
SOURCE Algoma Central Corporation
Greg D. Wight, FCPA, FCA
President and Chief Executive Officer
905-687-7850
Peter D. Winkley, CPA, CA
Vice President, Finance and Chief Financial Officer
905-687-7897