Royal Canadian Mint reports first quarter 2017 results

OTTAWA, May 17, 2017 /CNW/ - The Royal Canadian Mint (the "Mint" or the "Company") today reported its financial results for the 13 weeks ended April 1, 2017.  The contents of this release should be read in conjunction with the Company's Quarterly Report available at www.mint.ca.  All monetary amounts are expressed in Canadian dollars unless otherwise indicated.

"With a wide range of appealing collector products including entry level-priced coins, the Mint's Numismatics business is benefitting from the early success of our Canada 150 program in the First Quarter of 2017," said Sandra L. Hanington, President and CEO of the Royal Canadian Mint. "While demand in the bullion market has slowed, the Mint's diversified model continues to drive overall profitability." 

Financial and Operational Highlights

• Consolidated profit before and after income taxes remained constant at $14.9 million and $11.1 million, respectively, for the quarter (2016 –  $15.0 million and $11.2 million).
• Consolidated revenue decreased to $502.8 million for the quarter (2016 - $588.4 million) as a result of lower silver bullion revenues as bullion market demand declined.
• The Mint produced 96 million coins in first quarter of 2017 (2016 - 138 million) in order  to replenish inventories held on behalf of the Department of Finance.
• Shipment of 269.7 million foreign coins and blanks in the quarter (2016 – 67.3 million).
• Softer overall bullion demand contributed to lower bullion volumes for the 13 weeks ended April 1, 2017 compared to the same period in 2016.  Gold volumes were 208.3 thousand ounces (2016 – 210.6 thousand) while silver volumes were 4.7 million ounces (2016 – 10.6 million).
• Numismatics revenues increased $7.1 million to $46.9 million (2016 – $39.8 million) in the quarter on the strength of Canada 150 product sales. 
• Operating expenses for the quarter increased 6% to $33.9 million (2016 - $32.1 million) due to higher administration expenses, partially offset by lower marketing and sales expenses.
• In the first quarter of 2017, the Mint declared and paid a dividend of $29.0 million to the Government of Canada which was the primary driver behind the reduction of the cash balance to $80.5 million at April 1, 2017 from $114.2 million at December 31, 2016.

Consolidated results and financial performance
(in CAD $ millions for the 13 weeks ended April 1, 2017 and April 2, 2016)
	13 weeks ended
	1-Apr-17		2-Apr-16 restated^(1)		$ Change		% Change
Revenue	$  502.8		$  588.4		$  (85.6)		(15)
Profit before income taxes	14.9		15.0		(0.1)		-
Profit after income taxes	11.1		11.2		(0.1)		-
	As at
	1-Apr-17		31-Dec-16		$ Change		% Change
Cash	$  80.5		$  114.2		$  (33.7)		(30)
Inventories	85.7		78.9		6.8		9
Capital assets	180.1		182.5		(2.4)		(1)
Total assets	418.2		444.1		(25.9)		(6)
Working capital	118.5		136.1		(17.6)		(13)

(1)

As mentioned in our year end 2016 earnings release on May 8, 2017, the Mint restated prior period revenue and profit to remove sales of numismatic face value products. On a separate matter, the Mint has retrospectively adjusted its presentation of revenues and costs associated with bullion sales. The Mint now records revenues and costs on a net basis for all sales where both the supplier of key precious metals and customer of the bullion are the same party. This change in presentation has no impact on profit.

To read more of the Mint's First Quarter Report for 2017, please visit www.mint.ca.

About the Royal Canadian Mint
The Royal Canadian Mint is the Crown Corporation responsible for the minting and distribution of Canada's circulation coins. An ISO 9001-2008 certified company, the Mint is recognized as one of the largest and most versatile mints in the world, offering a wide range of specialized, high quality coinage products and related services on an international scale. For more information on the Mint, its products and services, visit www.mint.ca.  

FORWARD LOOKING STATEMENTS

This Earnings Release contains forward-looking statements that reflect management's expectations regarding the Mint's objectives, plans, strategies, future growth, results of operations, performance, and business prospects and opportunities.  Forward-looking statements are typically identified by words or phrases such as "plans", "anticipates", "expects", "believes", "estimates", "intends", and other similar expressions. These forward-looking statements are not facts, but only estimates regarding expected growth, results of operations, performance, business prospects and opportunities (assumptions). While management considers these assumptions to be reasonable based on available information, they may prove to be incorrect. These estimates of future results are subject to a number of risks, uncertainties and other factors that could cause actual results to differ materially from what the Mint expects. These risks, uncertainties and other factors include, but are not limited to, those risks and uncertainties set forth in the Risks to Performance section of the narrative as well as in Note 8 – Financial Instruments and Financial Risk Management to our Condensed Consolidated Financial Statements.

The forward-looking statements included in this Earnings Release are made only as of May 17, 2017, and the Mint does not undertake to publicly update these statements to reflect new information, future events or changes in circumstances or for any other reason after this date.

SOURCE Royal Canadian Mint

Alex Reeves, Senior Advisor, External Communications, Royal Canadian Mint, Tel: [phone], [email protected]

Related Links

http://www.mint.ca