MONTREAL, QUEBEC--(Marketwire - Jan. 11, 2012) - Velan Inc. (TSX:VLN), a world-leading manufacturer of industrial valves, announced today its financial results for its third quarter ended November 30, 2011.
| Three months | Nine months | |||||||
| ended | ended | |||||||
| November 30 | November 30 | |||||||
| (millions of U.S. dollars, excluding per share amounts) | 2011 | 2010 | 2011 | 2010 | ||||
| Sales | $118.9 | $105.7 | $319.4 | $273.7 | ||||
| Gross Profit | 27.3 | 33.4 | 64.3 | 71.8 | ||||
| Gross margin | 23.0 | % | 31.6 | % | 20.1 | % | 26.2 | % |
| Net income (loss) attributable to Multiple and Subordinate Voting Shares | 4.0 | 11.9 | 2.0 | 14.2 | ||||
| Net income (loss) per share - basic and fully diluted | 0.18 | 0.54 | 0.09 | 0.64 | ||||
Highlights
Third Quarter Fiscal 2012 (unless otherwise noted, all comparisons are to the third quarter of fiscal 2011):
- Net earnings1 amounted to $4.0 million or $0.18 per share compared to $11.9 million or $0.54 per share last year. Excluding the results of Velan ABV ("ABV"), the effects of purchase price accounting and currency impacts, the Company would have reported net earnings1 of $6.4 million or $0.29 per share in the current quarter compared to $6.8 million or $0.30 per share last year.
- Net new orders received ("bookings") amounted to $93.3 million, a decrease of $65.2 million or 41.1% compared to last year. Excluding ABV and currency impacts, the decrease was $45.0 million or 28.4%. Because the Company has a very large order backlog, it is quoting long lead times, which is negatively impacting bookings for some products. The Company ended the third quarter with a backlog of $653.6 million; $613.9 million excluding ABV. The Company's backlog increased by 18.1% and 19.3% when compared to November 2010 and February 2011, respectively.
- Sales amounted to $118.9 million, an increase of $13.2 million or 12.5%. Excluding ABV and currency impacts, sales increased $3.3 million or 3.1%.
- Gross margin decreased by 8.6% from 31.6% to 23.0%. Excluding ABV, the effects of purchase price accounting and currency impacts, gross margin would have decreased by 0.3% from last year.
- The Company used net cash1 from operations of $14.0 million. This use of net cash1 is primarily attributable to an investment in non-cash working capital, in particular an increase in accounts receivable resulting from the increase in shipments in the quarter. The Company ended the third quarter with net cash1 of $28.7 million.
1 Net earnings or loss refers to net income or loss attributable to Subordinate and Multiple Voting Shares.
First nine months of fiscal 2012 (unless otherwise noted, all comparisons are to the first nine months of fiscal 2011):
- Net earnings2 amounted to $2.0 million or $0.09 per share compared to $14.2 million or $0.64 per share last year. Excluding ABV, the effects of purchase price accounting and currency impacts, the Company would have reported net earnings2 of $7.4 million or $0.34 per share this year compared to $6.1 million or $0.27 per share last year.
- Bookings amounted to $403.1 million, an increase of $78.7 million or 24.3% compared to last year. Excluding ABV and currency impacts, the increase would have been $54.1 million or 16.7%.
- Sales amounted to $319.4 million, an increase of $45.7 million or 16.7%. Excluding ABV and currency impacts, sales increased $21.8 million or 8.0%.
- Gross margin decreased by 6.1% from 26.2% to 20.1%. Excluding ABV, the effects of purchase price accounting and currency impacts, gross margin would have decreased by 0.3%.
- The Company used net cash1 from operations of $28.4 million. This use of net cash1 is primarily attributable to increased inventory purchases to service the growing backlog in the first half of the current year, followed by increasing shipments resulting in higher accounts receivable in the latter portion of the year.
- Based on average exchange rates, the U.S. dollar weakened 4.2% against the Canadian dollar when compared to the same period last year. This weakening resulted in the Company`s Canadian dollar expenses being reported as higher U.S. dollar amounts in the current year.
"We had quarterly net earnings2 of $4.0 million compared to $11.9 million in the same quarter last year," said Tom Velan, President and CEO of Velan Inc., "but after adjusting for ABV, the effects of purchase price accounting for the acquisition, and the currency impacts, we would have reported net earnings2 of $6.4 million in the current quarter compared to $6.8 million last year.
"Faced with significant material cost increases over the last year, we have been selectively raising our selling prices. For some of our product lines we still face lower margins due to the higher material cost increases. We need to raise the margin by increasing volume as well as continuing to make selective price increases to cover cost increases.
"As we explained in our last annual report, similar to some other U.S. valve manufacturers, two of our U.S. subsidiaries have been named as defendants in a number of pending lawsuits brought on behalf of individuals seeking to recover damages for their alleged asbestos exposure. These lawsuits are related to products manufactured and sold many years ago. Our costs related to these asbestos lawsuits for the quarter were $1.4 million compared to $1.2 million last year. We strongly believe that our products, which were supplied with encapsulated packing and gaskets in accordance with valve industry practice and customer mandated specifications, did not contribute to any asbestos-related sicknesses. We have independent laboratory test results that support this conclusion. We think that any asbestos-related health problems were caused by friable, asbestos-containing products such as the spray application of asbestos insulation and the process of removing asbestos from buildings or confined spaces, which resulted in heavy concentrations of asbestos fibers in the air. Unfortunately, the responsible companies are no longer in existence so plaintiffs are pursuing pump and valve manufacturers like Velan. We will continue to vigorously defend against these claims, but given the ongoing course of asbestos litigation in the U.S. and the unpredictability of jury trials, it is not possible to make an estimate of our legal and other costs related to these claims.
1 Non-GAAP measures - see explanation below.
2 Net earnings or loss refers to net income or loss attributable to Subordinate and Multiple Voting Shares.
"The increases in bookings, backlog and sales for the year to date are good indications of an improving global market for our products. At the same time, we are concerned by weakness in the U.S. economy and persistent problems in Europe with concerns about the stability of the euro. These factors are increasing the risk of another sharp downturn in the global economy. Fortunately, we are starting our fourth quarter with a very strong backlog and the challenge we faced last year due to insufficient orders has changed to the challenge of producing our order backlog as quickly and profitably as possible.
"I think that the acquisition of ABV Energy is a great opportunity for us to help grow our sales and earnings over the coming years. In the shorter term, the accounting treatment, whereby part of the purchase price is attributed to the assets (including inventory) as a purchase price adjustment, will reduce the contribution to our results. We are working to help improve operations to increase output and profitability. Velan ABV had another soft quarter, but we expect improving results going forward as the new plant capacity goes into operation during the fourth quarter as well as increases in sales based on the higher bookings and backlog."
Tom Velan concluded, "We are continuing to take measures to broaden our product offering, to improve our operational excellence and cost competitiveness, and to strengthen our presence in international markets in order to improve our long-term performance and increase the value of our company. In the shorter term, we are focused on improved execution of our large project order backlog to increase sales and improve earnings."
Dividend
The Board declared an eligible quarterly dividend of Canadian dollar $0.08 per share, payable on March 30, 2012, to all shareholders of record as at March 15, 2012.
Conference Call
Financial analysts, shareholders, and other interested individuals are invited to attend the third quarter conference call to be held on January 11, 2012, at 4:30 PM (EST). The toll free call-in number is 1-800-268-5851, access code 21567127. A recording of this conference call will be available for seven days at 1-416-626-4100 or 1-800- 558-5253, access code 21567127.
About Velan
Velan Inc. (www.velan.com) is a world-leading manufacturer of industrial valves with sales of $381 million in its last reported fiscal year. The company employs over 1,800 people and has manufacturing plants in 10 countries. Velan Inc. is a public company with its shares listed on the Toronto Stock Exchange under the symbol VLN.
Safe Harbour Statement
Except for historical information provided herein, this press release may contain information and statements of a forward-looking nature concerning the future performance of the Company. These statements are based on suppositions and uncertainties as well as on management's best possible evaluation of future events. Such factors may include, without excluding other considerations, fluctuations in quarterly results, evolution in customer demand for the Company's products and services, the impact of price pressures exerted by competitors, and general market trends or economic changes. As a result, readers are advised that actual results may differ from expected results.
Non-GAAP measures
In this press release, the Company presented measures of performance and financial condition which are not defined under Canadian GAAP ("non-GAAP measures") and are therefore unlikely to be comparable to similar measures presented by other companies. These measures are used by management in assessing the operating results and financial condition of the Company.
Net cash is defined as cash and cash equivalents plus short-term investments less bank indebtedness and short- term bank loans.
| SELECTED FINANCIAL INFORMATION | |||||
| Reconciliation of Net Income (Loss) from Canadian GAAP to IFRS: | |||||
| Fiscal Year | Three Months | Nine Months | |||
| Ended | Ended | Ended | |||
| (In thousands of indicated currency) | February 28 | November 30 | November 30 | ||
| 2011 | 2010 | 2010 | |||
| $ | $ | $ | |||
| Net Income (Loss) - GAAP in Canadian dollars | 5,810 | 5,825 | 6,017 | ||
| Net Income (Loss) - GAAP in U.S. dollars | 5,665 | 5,678 | 5,898 | ||
| IFRS Adjustments to net income (loss) in U.S. dollars: | |||||
| Change of functional currency to U.S. dollar | 14,819 | 5,797 | 9,202 | ||
| Reclassification of Non-controlling Interest | 775 | 62 | 730 | ||
| Income taxes - tax effect of above differences | 740 | 451 | (949 | ) | |
| Net Income (Loss) - IFRS in U.S. dollars | 21,999 | 11,988 | 14,881 | ||
| Reconciliation of Comprehensive Income (Loss) from Canadian GAAP to IFRS: | |||||||
| Fiscal Year | Three Months | Nine Months | |||||
| Ended | Ended | Ended | |||||
| (In thousands of indicated currency) | February 28 | November 30 | November 30 | ||||
| 2011 | 2010 | 2010 | |||||
| $ | $ | $ | |||||
| Comprehensive Income (Loss) - GAAP in Canadian dollars | 1,976 | 4,870 | 1,996 | ||||
| Comprehensive Income (Loss) - GAAP in U.S. dollars | 1,907 | 4,739 | 1,987 | ||||
| IFRS Adjustments to comprehensive income (loss) in U.S. dollars: | |||||||
| Change of functional currency to U.S. dollar | 21,091 | 8,956 | 10,603 | ||||
| Realized translation adjustment on reduction of net investment in self-sustaining operations | (239 | ) | (237 | ) | (237 | ) | |
| Reclassification of Non-controlling Interest | 845 | 230 | 785 | ||||
| Income taxes - tax effect of above differences | 740 | 451 | (949 | ) | |||
| Comprehensive Income (Loss) - IFRS in U.S. dollars | 24,344 | 14,139 | 12,189 | ||||
| Reconciliation of Equity from Canadian GAAP to IFRS: | |||||||
| February 28 | November 30, | March 1, | |||||
| (In thousands of indicated currency) | 2011 | 2010 | 2010 | ||||
| $ | $ | $ | |||||
| Equity - GAAP in Canadian dollars | 340,627 | 342,439 | 346,184 | ||||
| Equity - GAAP in U.S. dollars | 350,265 | 333,295 | 328,682 | ||||
| IFRS Adjustments to Equity in U.S. dollars: | |||||||
| Change of functional currency to U.S. dollar | (19,794 | ) | (9,224 | ) | (13,469 | ) | |
| Reclassification of non-controlling interest | 4,025 | 3,925 | 4,954 | ||||
| Income taxes - tax effect of above differences | 3,227 | (602 | ) | 2,439 | |||
| Equity - IFRS in U.S. dollars | 337,723 | 327,394 | 322,606 | ||||
| Velan Inc. | ||||||||
| Interim Consolidated Statements of Income (Loss) | ||||||||
| (Unaudited) | ||||||||
| (in thousands of U.S. dollars, excluding number of shares and per share amounts) | ||||||||
| Three-month periods ended |
Nine-month periods ended |
|||||||
| November 30 | November 30 | |||||||
| 2011 | 2010 | 2011 | 2010 | |||||
| $ | $ | $ | $ | |||||
| Sales | 118,939 | 105,653 | 319,351 | 273,678 | ||||
| Cost of sales | 91,652 | 72,224 | 255,094 | 201,887 | ||||
| Gross profit | 27,287 | 33,429 | 64,257 | 71,791 | ||||
| Administration cost | 21,634 | 17,681 | 62,214 | 51,254 | ||||
| Other expense (income) | (101 | ) | (2 | ) | (317 | ) | (348 | ) |
| Operating profit (loss) | 5,754 | 15,750 | 2,360 | 20,885 | ||||
| Finance income | 69 | 155 | 230 | 384 | ||||
| Finance costs | 213 | 34 | 1,036 | 471 | ||||
| Finance income (costs) - net | (144 | ) | 121 | (806 | ) | (87 | ) | |
| Income (Loss) before income tax | 5,610 | 15,871 | 1,554 | 20,798 | ||||
| Income tax expense (recovery) | 1,778 | 3,883 | 203 | 5,917 | ||||
| Net income (loss) for the period | 3,832 | 11,988 | 1,351 | 14,881 | ||||
| Net income (loss) attributable to: | ||||||||
| Subordinate Voting Shares and Multiple Voting Shares | 3,992 | 11,926 | 2,028 | 14,151 | ||||
| Non-controlling interest | (160 | ) | 62 | (677 | ) | 730 | ||
| 3,832 | 11,988 | 1,351 | 14,881 | |||||
| Net income (loss) per Subordinate andMultiple Voting Share | ||||||||
| Basic | 0.18 | 0.54 | 0.09 | 0.64 | ||||
| Diluted | 0.18 | 0.54 | 0.09 | 0.64 | ||||
| Dividends declared per Subordinate andMultiple Voting Share | 0.07 (CDN$0.08 |
) | 0.07 (CDN$0.08 |
) | 0.24 (CDN$0.24 |
) | 0.23 (CDN$0.24 |
) |
| Total weighted average Subordinate and Multiple Voting Shares | ||||||||
| Basic | 22,180,538 | 22,213,841 | 22,180,538 | 22,213,841 | ||||
| Diluted | 22,197,471 | 22,242,135 | 22,218,713 | 22,251,879 | ||||
| Velan Inc. Interim Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (in thousands of U.S. dollars) |
||||||||
| Three-month periods ended |
Nine-month periods ended |
|||||||
| November 30 | November 30 | |||||||
| 2011 | 2010 | 2011 | 2010 | |||||
| $ | $ | $ | $ | |||||
| Comprehensive income (loss) | ||||||||
| Net income (loss) for the period | 3,832 | 11,988 | 1,351 | 14,881 | ||||
| Other comprehensive income (loss), net of tax | ||||||||
| Foreign currency translation adjustment on foreign operations whose functional currency is other than the U.S. dollar | (11,055 | ) | 2,151 | (7,210 | ) | (2,692 | ) | |
| Comprehensive income (loss) | (7,223 | ) | 14,139 | (5,859 | ) | 12,189 | ||
| Comprehensive income (loss) attributable to: | ||||||||
| Subordinate Voting Shares and Multiple Voting Shares | (6,117 | ) | 13,909 | (4,090 | ) | 11,404 | ||
| Non-controlling interest | (1,106 | ) | 230 | (1,769 | ) | 785 | ||
| (7,223 | ) | 14,139 | (5,859 | ) | 12,189 | |||
| Velan Inc. |
| Interim Consolidated Statements of Financial Position |
| (Unaudited) |
| (in thousands of U.S. dollars) |
| As At | November 30, | February 28, | March 1, | |
| 2011 | 2011 | 2010 | ||
| $ | $ | $ | ||
| Assets | ||||
| Current assets | ||||
| Cash and cash equivalents | 49,822 | 119,996 | 101,691 | |
| Short-term investments | 1,514 | 87 | 295 | |
| Accounts receivable | 127,555 | 94,495 | 86,756 | |
| Income taxes recoverable | 10,195 | 5,007 | 3,301 | |
| Inventories | 248,306 | 205,334 | 190,031 | |
| Deposits and prepaid expenses | 4,697 | 3,875 | 5,672 | |
| Derivative assets | 1,282 | 3,329 | 4,042 | |
| 443,371 | 432,123 | 391,788 | ||
| Non-current assets | ||||
| Property, plant and equipment | 70,784 | 64,622 | 63,931 | |
| Other assets | 1,242 | 1,391 | 1,388 | |
| Intangible assets and goodwill | 58,214 | 11,657 | 11,382 | |
| Deferred income taxes | 7,368 | 6,244 | 5,545 | |
| 137,608 | 83,914 | 82,246 | ||
| Total assets | 580,979 | 516,037 | 474,034 | |
| Liabilities | ||||
| Current liabilities | ||||
| Bank indebtedness | 21,833 | 5,634 | 2,500 | |
| Short-term bank loans | 847 | 822 | 791 | |
| Accounts payable and accrued liabilities | 78,103 | 65,329 | 63,897 | |
| Income tax payable | 2,167 | 1,832 | 4,505 | |
| Dividend payable | 1,811 | 1,830 | 1,689 | |
| Customer deposits | 83,890 | 73,054 | 55,403 | |
| Provisions | 3,783 | 4,288 | 2,973 | |
| Accrual for performance guarantees | 18,350 | 13,354 | 7,955 | |
| Derivative liabilities | 2,051 | 447 | 1,077 | |
| Current portion of long-term debt | 952 | 603 | 44 | |
| Current portion of other long-term liabilities | 5,610 | - | - | |
| 219,397 | 167,193 | 140,834 | ||
| Non-current liabilities | ||||
| Long-term debt | 8,137 | 4,408 | 3,768 | |
| Other long-term liabilities | 10,802 | 6,656 | 6,702 | |
| Deferred income taxes | 8,262 | 57 | 124 | |
| 27,201 | 11,121 | 10,594 | ||
| Total liabilities | 246,598 | 178,314 | 151,428 | |
| Equity | ||||
| Equity attributable to the Subordinate and Multiple Voting shareholders | ||||
| Share capital | 78,969 | 79,271 | 79,651 | |
| Contributed surplus | 1,863 | 1,898 | 1,936 | |
| Retained earnings | 246,848 | 250,254 | 236,065 | |
| Accumulated other comprehensive income | (3,843 | ) | 2,275 | - |
| 323,837 | 333,698 | 317,652 | ||
| Non-controlling interest | 10,544 | 4,025 | 4,954 | |
| Total equity | 334,381 | 337,723 | 322,606 | |
| Total liabilities and equity | 580,979 | 516,037 | 474,034 |
| Velan Inc. |
| Interim Consolidated Statements of Changes in Equity |
| (Unaudited) |
| (in thousands of U.S. dollars) |
| Equity attributable to the Subordinate and Multiple Voting shareholders | ||||||||||||||||
| Number of shares |
Share capital | Contributed surplus |
Accumulated other comprehensive income |
Retained earnings |
Total | Non- controlling interest |
Total equity | |||||||||
| Balance -Beginning of period | 22,195,568 | 79,271 | 1,898 | 2,275 | 250,254 | 333,698 | 4,025 | 337,723 | ||||||||
| Net income (loss) for the period | - | - | - | - | 2,028 | 2,028 | (677 | ) | 1,351 | |||||||
| Other comprehensive income (loss) | - | - | - | (6,118 | ) | - | (6,118 | ) | (1,092 | ) | (7,210 | ) | ||||
| 22,195,568 | 79,271 | 1,898 | (3,843 | ) | 252,282 | 329,608 | 2,256 | 331,864 | ||||||||
| Effect of share-based compensation | - | - | 50 | - | - | 50 | - | 50 | ||||||||
| Dividends | ||||||||||||||||
| Multiple Voting Shares | - | - | - | - | (3,852 | ) | (3,852 | ) | - | (3,852 | ) | |||||
| Subordinate Voting Shares | - | - | - | - | (1,582 | ) | (1,582 | ) | - | (1,582 | ) | |||||
| Non-controlling interest | - | - | - | - | - | - | (84 | ) | (84 | ) | ||||||
| Share repurchase | (27,800 | ) | (302 | ) | (85 | ) | - | - | (387 | ) | - | (387 | ) | |||
| Non-controlling interest arising on acquisition | - | - | - | - | - | - | 8,372 | 8,372 | ||||||||
| As at November 30, 2011 | 22,167,768 | 78,969 | 1,863 | (3,843 | ) | 246,848 | 323,837 | 10,544 | 334,381 | |||||||
| Equity attributable to the Subordinate and Multiple Voting shareholders | ||||||||||||||||
Number of shares |
Share capital |
Contributed surplus |
Accumulated other comprehensive income |
Retained earnings |
Total |
Non- controlling interest |
Total equity |
|||||||||
| Balance -Beginning of period | 22,230,468 | 79,651 | 1,936 | - | 236,065 | 317,652 | 4,954 | 322,606 | ||||||||
| Net income (loss) for the period | - | - | - | - | 14,151 | 14,151 | 730 | 14,881 | ||||||||
| Other comprehensive income (loss) | - | - | - | (2,747 | ) | - | (2,747 | ) | 55 | (2,692 | ) | |||||
| 22,230,468 | 79,651 | 1,936 | (2,747 | ) | 250,216 | 329,056 | 5,739 | 334,795 | ||||||||
| Effect of share-based compensation | - | - | 53 | - | - | 53 | - | 53 | ||||||||
| Dividends | ||||||||||||||||
| Multiple Voting Shares | - | - | - | - | (3,633 | ) | (3,633 | ) | - | (3,633 | ) | |||||
| Subordinate Voting Shares | - | - | - | - | (1,552 | ) | (1,552 | ) | - | (1,552 | ) | |||||
| Non-controlling interest | - | - | - | - | - | - | (1,814 | ) | (1,814 | ) | ||||||
| Share repurchase | (31,900 | ) | (358 | ) | (97 | ) | - | - | (455 | ) | - | (455 | ) | |||
| As at November 30, 2010 | 22,198,568 | 79,293 | 1,892 | (2,747 | ) | 245,031 | 323,469 | 3,925 | 327,394 | |||||||
| Velan Inc. |
| Interim Consolidated Statements of Cash Flows |
| (Unaudited) |
| (in thousands of U.S. dollars) |
| Three-month periods | Nine-month periods | ||||||||
| ended November 30 | ended November 30 | ||||||||
| 2011 | 2010 | 2011 | 2010 | ||||||
| Cash flows from | $ | $ | $ | $ | |||||
| Operating activities | |||||||||
| Net income (loss) for the period | 3,832 | 11,988 | 1,351 | 14,881 | |||||
| Adjustments to reconcile net profit to cash provided operating activities | |||||||||
| Amortization of property, plant and equipment | 2,172 | 1,947 | 6,396 | 6,108 | |||||
| Amortization of intangible assets | 1,478 | 246 | 3,836 | 585 | |||||
| Deferred income taxes | 430 | (563 | ) | (512 | ) | 1,331 | |||
| Share-based compensation expense | 33 | 16 | 50 | 53 | |||||
| Loss (Gain) on disposal of property, plant and equipment | (39 | ) | 57 | 11 | (24 | ) | |||
| Amortization of present value discount on other long-term liabilities | 291 | - | 702 | - | |||||
| Net change in other long-term liabilities | (734 | ) | (172 | ) | (106 | ) | (497 | ) | |
| 7,463 | 13,519 | 11,728 | 22,437 | ||||||
| Changes in non-cash working capital items | |||||||||
| Accounts receivable | (20,336 | ) | (24,522 | ) | (24,301 | ) | 865 | ||
| Inventories | (2,250 | ) | (6,243 | ) | (27,161 | ) | (14,842 | ) | |
| Income taxes recoverable | (835 | ) | 2,101 | (5,239 | ) | (592 | ) | ||
| Deposits and prepaid expenses | 67 | 1,144 | (362 | ) | (94 | ) | |||
| Derivative assets | (865 | ) | (2,000 | ) | 2,027 | 829 | |||
| Accounts payable and accrued liabilities | 189 | 3,392 | 833 | (4,832 | ) | ||||
| Income taxes payable | 550 | 971 | (202 | ) | (1,628 | ) | |||
| Customer deposits | 3,150 | 71 | 8,601 | 6,560 | |||||
| Provisions | (463 | ) | 469 | (510 | ) | 256 | |||
| Accrual for performance guarantees | (1,272 | ) | 1,881 | 4,630 | 3,261 | ||||
| Derivative liabilities | 565 | (991 | ) | 1,588 | (836 | ) | |||
| (21,500 | ) | (23,727 | ) | (40,096 | ) | (11,053 | ) | ||
| Cash provided (used) by operating activities | (14,037 | ) | (10,208 | ) | (28,368 | ) | 11,384 | ||
| Investing activities | |||||||||
| Short-term investments | (776 | ) | (67 | ) | (1,427 | ) | (114 | ) | |
| Additions to property, plant and equipment | (1,563 | ) | (1,932 | ) | (8,940 | ) | (5,339 | ) | |
| Proceeds on disposal of property, plant and equipment | 34 | 2 | 61 | 206 | |||||
| Additions to intangible assets | (93 | ) | (191 | ) | (738 | ) | (549 | ) | |
| Net change in other assets | 131 | (49 | ) | 148 | (83 | ) | |||
| Business acquisition - net of cash acquired | - | - | (37,281 | ) | - | ||||
| Cash provided (used) by investing activities | (2,267 | ) | (2,237 | ) | (48,177 | ) | (5,879 | ) | |
| Financing activities | |||||||||
| Dividends paid to Subordinate and Multiple Voting shareholders | (1,773 | ) | (1,681 | ) | (5,453 | ) | (5,142 | ) | |
| Dividends paid to non-controlling interest | - | (1,777 | ) | (84 | ) | (1,814 | ) | ||
| Repurchase of shares | (109 | ) | (217 | ) | (388 | ) | (455 | ) | |
| Short-term bank loans | - | 16 | (4,842 | ) | 18 | ||||
| Increase in long-term debt | 388 | - | 4,612 | - | |||||
| Repayment of long-term debt | (2,579 | ) | (70 | ) | (2,636 | ) | (89 | ) | |
| Cash provided (used) by investing activities | (4,073 | ) | (3,729 | ) | (8,791 | ) | (7,482 | ) | |
| Effect of exchange rate differences on cash | (1,349 | ) | 2,803 | (1,037 | ) | 561 | |||
| Net change in cash during the period | (21,726 | ) | (13,371 | ) | (86,373 | ) | (1,416 | ) | |
| Net cash - Beginning of period | 49,715 | 111,146 | 114,362 | 99,191 | |||||
| Net cash - End of period | 27,989 | 97,775 | 27,989 | 97,775 | |||||
| Net cash is composed of: | |||||||||
| Cash and cash equivalents | 49,822 | 102,231 | 49,822 | 102,231 | |||||
| Bank indebtedness | (21,833 | ) | (4,456 | ) | (21,833 | ) | (4,456 | ) | |
| 27,989 | 97,775 | 27,989 | 97,775 | ||||||
| Supplementary information | |||||||||
| Interest received (paid) | (647 | ) | 11 | (752 | ) | (86 | ) | ||
| Income taxes received (paid) | (1,835 | ) | (719 | ) | (5,854 | ) | (4,758 | ) | |
Contact Information:
President and Chief Executive Officer
(514) 748-7743
(514) 748-8635 (FAX)
John D. Ball
Chief Financial Officer
(514) 748-7743
(514) 748-8635 (FAX)
www.velan.com