For the Three and Nine Months Ended September 30, 2013 and 2012
(In thousand of dollars except per share data)
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 $379,204 for the same period in 2012.
The decreases in revenues and net earnings were due primarily to fewer operating days for the Domestic Dry Bulk segment which was largely offset by reduced foreign exchange losses and lower interest expense.
The results from operations are as follows:
| Three Months Ended
| Nine Months
|Business segement operating|
|earnings net of income tax|
|Domestic Dry-Bulk||$ 19,082||$ 24,998||$ 346||$ 10,905|
|Not specifically identifiable to segments|
|Net (loss) gain on foreign currency|
|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.
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.
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.
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.
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.
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.
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
For further information:
Greg D. Wight, FCPA, FCA
President and Chief Executive Officer
Peter D. Winkley, CPA, CA
Vice President, Finance and Chief Financial Officer