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CCL Industries Reports Adjusted Net Earnings of $1.38 per Share for the Third Quarter and Declares Dividend

CCL Industries Reports Adjusted Net Earnings of $1.38 per Share for the Third 
Quarter and Declares Dividend 
TORONTO, ONTARIO -- (Marketwired) -- 11/11/13 -- CCL Industries Inc.
(TSX:CCL.A)(TSX:CCL.B) -  
Results Summary  


 
For periods                                                                 
 ended                                                                      
 September 30    Three months unaudited           Nine months unaudited     
----------------------------------------------------------------------------
(in millions                                                                
 of Cdn                                   %                                %
 dollars,                            Change                           Change
except per                         %  Excl.                         %  Excl.
 share data)     2013    2012 Change  FX(i)      2013     2012 Change  FX(i)
----------------------------------------------------------------------------
Sales         $ 606.6 $ 316.6  91.6%  87.1%  $1,331.7 $  995.1  33.8%  31.7%
----------------------------------------------------------------------------
EBITDA(1)     $ 107.8 $  58.8  83.3%  77.7%  $  259.5 $  196.9  31.8%  29.2%
----------------------------------------------------------------------------
Operating                                                                   
 income(2)    $  67.8 $  39.3  72.5%  66.8%  $  179.9 $  139.8  28.7%  26.2%
----------------------------------------------------------------------------
Earnings in                                                                 
 equity                                                                     
 accounted                                                                  
 investments  $   0.5 $   0.2                $    1.1 $    1.1              
----------------------------------------------------------------------------
Restructuring                                                               
 and other                                                                  
 items - loss $  18.3 $     -                $   21.0 $      -              
----------------------------------------------------------------------------
Net earnings  $  23.6 $  21.3  10.8%   5.0%  $   84.1 $   77.6   8.4%   5
.7%
----------------------------------------------------------------------------
Per Class B                                                                 
 share                                                                      
 Basic                                                                      
  earnings                                                                  
  per share   $  0.68 $  0.64   6.3%         $   2.46 $   2.32   6.0%       
 Diluted                                                                    
  earnings                                                                  
  per share   $  0.67 $  0.63   6.3%         $   2.42 $   2.28   6.1%       
----------------------------------------------------------------------------
Adjusted                                                                    
 basic                                                                      
 earnings per                                                               
 Class B                                                                    
 share (3)    $  1.38 $  0.64 115.6%         $   3.24 $   2.32  39.7%       
----------------------------------------------------------------------------
                                                                            
Number of outstanding                                                       
 shares (in 000's)                                                          
 Weighted average for                                                       
  the period - basic                           34,141   33,464              
 Actual at period end                          34,375   33,772              
                                                                            
 (i) Change over prior year's comparative period excludes estimated impact  
of foreign currency translation.                                            

 
CCL Industries Inc. ("CCL" or "the Company") is a world leader in
specialty label and packaging solutions for global corporations,
small businesses and consumers. 
Third Quarter 2013 Results 
Sales for the third quarter of 2013 increased 91.6% to a record
$606.6 million, compared to $316.6 million for the third quarter of
2012, with 3.3% organic growth, 4.5% positive currency translation
and the balance from the Avery Dennison and INT Autotechnik ("INT")
acquisitions. For the nine months ended September 30, 2013, sales
increased 31.7%, excluding currency translation, driven primarily by
the aforementioned acquisitions and organic growth of 4.0%. 
Operating income (a non-IFRS measure; see note 2 below) for the third
quarter of 2013 was $67.8 million, an improvement of 72.5% compared
to $39.3 million for the third quarter of 2012. For the nine months
ended September 30, 2013, operating income increased 28.7%, compared
to the same nine-month period in 2012. Included in the 2013 third
quarter and nine-month results was a $16.7 million non-cash
acquisition accounting adjustment to the acquired finished goods
inventory from the Avery Dennison businesses that was expensed in the
Company's cost of goods sold for the periods ended September 30,
2013. Excluding this non-cash adjustment, operating income was $84.5
million and $196.6 million for the three and nine-month periods ended
September 30, 2013, respectively. 
Earnings before net finance cost, taxes, earnings in equity accounted
investments, depreciation and amortization, non-cash acquisition
accounting adjustments to inventory and restructuring and other items
("EBITDA", a non-IFRS measure; see note 1 below) was $107.8 million
for the third quarter of 2013, an increase of 83.3% compared to $58.8
million for the third quarter of 2012. For the nine-month period
ended September 30, 2013, EBITDA was $259.5 million, an increase of
31.8% compared to $196.9 million in the comparable 2012 nine-month
period. 
The overall effective income tax rate was 28.9% for the third quarter
of 2013 compared to 24.6% for the third quarter of 2012. The increase
is due to a higher portion of the Company's income being earned in
higher tax jurisdictions, primarily the U.S. operations of the
acquired businesses. Furthermore, the lower effective tax rate for
the 2012 third quarter reflected an accounting increase related to a
tax benefit recognized for certain Canadian tax losses. The overall
effective income tax rate was 28.7% for the nine-month period of 2013
compared to 27.1% for the nine-month period of 2012 reflecting a
higher portion of the Company's income being earned in higher tax
jurisdictions.  
Net earnings for the 2013 third quarter were $23.6 million, a 10.8%
increase compared to $21.3 million recorded for the third quarter of
2012. This resulted in basic and diluted earnings per Class B share
of $0.68 and $0.67, respectively, for the third quarter of 2013
compared to basic and diluted earnings per Class B share of $0.64 and
$0.63, respectively, for the third quarter of 2012.  
Net earnings for the nine-month period of 2013 were $84.1 million, an
increase of 8.4% compared to $77.6 million for the same period a year
ago. This resulted in basic and diluted earnings of $2.46 and $2.42
per Class B share, respectively, for the 2013 nine-month period
compar
ed to basic and diluted earnings of $2.32 and $2.28 per Class B
share, respectively, for the prior year nine-month period.  
Adjusted basic earnings per Class B share (a non-IFRS measure; see
note 3 below) were $1.38 for the third quarter of 2013, an increase
of 115.6% compared to $0.64 in the corresponding quarter of 2012. For
the comparable nine-month periods, adjusted basic earnings per Class
B share were $3.24 and $2.32 for 2013 and 2012, respectively. The
adjustment to basic earnings per Class B share for the third quarter
of 2013 includes the after tax costs of approximately $11.7 million
for the non-cash acquisition accounting adjustment to acquired
finished goods inventory and $12.3 million after tax costs for the
restructuring and other charges connected to the Avery Dennison
acquired businesses. For the nine-month period of 2013, adjusted
basic earnings per Class B share includes the after tax costs of
$11.7 million for the non-cash acquisition accounting adjustment to
acquired finished goods inventory, $14.4 million of after tax costs
for restructuring and other charges and $0.6 million of after tax
costs related to pre-close finance expenses related to the Avery
Dennison acquisition. 
Geoffrey T. Martin, President and Chief Executive Officer stated, "We
are very pleased with the performance of our newly acquired
businesses, which contributed significantly to our twelfth
consecutive period of year-over-year improvement in quarterly
adjusted earnings per share; a record for the Company. CCL Label
legacy operations also delivered 5% organic sales growth. Foreign
currency translation contributed 3 cents earnings per share in the
quarter but weaker currencies in certain international markets
created transactional issues that offset a significant portion of
this benefit."  
Mr. Martin continued, "CCL Label sales increased 33% driven by
acquisitions, solid growth outside North America and positive
currency translation. Excluding the impact of the $2.1 million
accounting adjustment to finished goods inventory applicable to the
Designed & Engineered Solutions ("DES") portion of the Avery Dennison
acquisition, operating income increased 43% and return on sales
improved to 14.1%. Legacy North American sales declined low single
digits on slow consumer staple markets reported by many customers,
peers and suppliers but the DES business performed significantly
above expectations. North American orders firmed meaningfully in the
early part of the fourth quarter. Third quarter European sales were
up low single digits and profitability gains were supported by
particularly good results from the Food & Beverage business. Latin
America and Asia Pacific posted strong double digit sales and profit
improvement. CCL Design, which includes INT and the automotive
portion of the DES business, posted good results overall driven by
robust demand, particularly in North America. Joint ventures added
solid earnings improvement as revenue more than doubled in Chile and
the Santiago plant moved into profitability."  
Mr. Martin then added, "Our new Avery segment, representing the
balance from the Avery Dennison acquisition, recorded revenues of
$202 million and operating income of $30.9 million excluding the
non-cash acquisition accounting adjustment to inventory of $14.6
million that reduced reportable profits for the third quarter. The
summer period is heavily influenced by the 'back-to-school' sales
season in the United States and delivers a significant portion of
annual profits. North American sales were in line but profits were
above expectations on cost savings. International operations
represented approximately 20% of sales with limited exposure to the
'back-to-school' phenomenon and posted solid results in slow markets.
All-in-all, Avery exceeded management's expectations. We expect to
complete the implementation of our $25 million to $30 million
restructuring plan in the coming quarter." 
Mr. Martin continued, "CCL Container posted a modest drop in sales
and a decline in profitability but compared to an unusually strong
third quarter in 2012. Robust results from the Mexican operations
were offset by a slow sun care season in the United States and a loss
from the Canadian operations. Year-to-date cash flow remains
excellent and we believe our prospects for future improvement remain
good." 
Mr. Martin continued, "Avery revenues normally moderate significantly
post 'back-to-school.' However, the 2012 pre-acquisition fourth
quarter benefited from an unusually large trade forward buy before
the announced sale of the business and a corresponding slow first
quarter of 2013, which will affect comparative results for the next
two quarters. We remain committed to our previously announced target
of $40 million to $50 million in annualized synergies for 2014,
subsequent to the completion of our restructuring actions, but
emphasize the degree of profit conversion is contingent on our
success in stabilizing revenue at Avery. Order intake across the rest
of CCL improved globally after a soft summer including appreciable
October gains in North America. Surpassing the strong fourth quarter
2012 results on an organic basis could prove challenging but
acquisitions will augment performance after adjusting for one-time
events. We expect low single digit organic growth rates in developed
economies with stronger demand in emerging markets and automotive.
Currency translation would positively impact results at today's
Canadian dollar exchange rates." 
Mr. Martin concluded, "The Company ended the quarter with $260
million of cash on hand, $133 million undrawn on its revolving credit
facility and net debt of $545 million. Our net debt to annualized
EBITDA ratio remains well below two times levered, giving adequate
capacity to maintain our growth initiatives. We expect strong cash
flow for the remainder of the year and with confidence in our 2014
outlook your Board of Directors has declared a dividend of $0.2150
per Class B non-voting share and $0.2025 per Class A voting share,
payable to shareholders of record at the close of business on
December 12, 2013, to be paid on December 20, 2013." 
With headquarters in Toronto, Canada, CCL Industries now employs
approximately 9,600 people and operates 87 production facilities in
25 countries on 5 continents with corporate offices in Toronto,
Canada, and Framingham, Massachusetts. CCL Label is the world's
largest converter of pressure sensitive and extruded film materials
for a wide range of decorative, instructional and functional
applications for large global customers in the consumer packaging,
healthcare, automotive and consumer durables markets. Extruded
plastic tubes, folded instructional leaflets, precision printed and
die cut metal components with LED displays and other complementary
products and services are sold in parallel to specific end-use
markets. Avery is the world's largest supplier of labels, specialty
converted media and software solutions to enable short run digital
printing in businesses and homes alongside complementary office
products sold through distributors and mass market retailers. CCL
Container is a leading producer of impact extruded aluminum aerosol
cans and bottles for consumer packaged goods customers in the United
States, Canada and Mexico. 
(1) EBITDA is a critical non-IFRS financial measure used extensively
in the pac
kaging industry and other industries to assist in
understanding and measuring operating results. It is also considered
as a proxy for cash flow and a facilitator for business valuations.
This non-IFRS financial measure is defined as earnings before net
finance cost, taxes, depreciation and amortization, goodwill
impairment loss, non-cash accounting adjustments to finished goods
inventory, earnings in equity accounted investments and restructuring
and other items. See section entitled "Supplementary Information"
below for a reconciliation of operating income to EBITDA. The Company
believes that it is an important measure as it allows management to
assess CCL's ongoing business without the impact of net finance cost,
depreciation and amortization and income tax expenses, as well as
non-operating factors and one-time items. As a proxy for cash flow,
it is intended to indicate CCL's ability to incur or service debt and
to invest in property, plant and equipment, and it allows management
to compare CCL's business to those of CCL's peers and competitors who
may have different capital or organizational structures. EBITDA is a
measure tracked by financial analysts and investors to evaluate
financial performance and is a key metric in business valuations.
EBITDA is considered an important measure by lenders to the Company
and is included in the financial covenants of CCL's senior notes and
bank lines of credit. 
(2) Operating Income is a key non-IFRS financial measure used to
assist in understanding the profitability of the Company's business
units. This non-IFRS financial measure is defined as income before
corporate expenses, net finance cost, goodwill impairment loss,
earnings in equity accounted investments, restructuring and other
items and taxes. 
(3) Adjusted Basic Earnings per Class B Share is an important
non-IFRS financial measure used to assist in understanding the
ongoing earnings performance of the Company excluding items of a
one-time or non-recurring nature. It is not considered a substitute
for basic net earnings per Class B share but it does provide
additional insight into the ongoing financial results of the Company.
This non-IFRS financial measure is defined as basic net earnings per
Class B share excluding gains on business dispositions, goodwill
impairment loss, OCP and DES finance costs, restructuring and other
items, non-cash acquisition accounting adjustment to finished goods
inventory for OCP and DES and tax adjustments. See section entitled
"Supplementary Information" below for a reconciliation of Basic
Earnings per Class B Share to Adjusted Basic Earnings per Class B
Share.  
Further details on key performance indicators and non-IFRS measures
can be found in the Management's Discussion and Analysis section of
the Company Quarterly and Annual Reports. 


 
                                                                          
                                                                          
Supplementary Information                                                 
                                                                          
For periods ended September 30th                                          
Reconciliation of Operating Income to EBITDA                              
                                                                          
Unaudited                                                                 
--------------------------------------------------------------------------
(In millions of Canadian dollars)                                         
                                                                          
                             Three months ended       Nine months ended   
                               September 30th           September 30th    
                          ------------------------------------------------
Operating Income                                                          
                                  2013        2012        2013        2012
                          ------------------------------------------------
Label                      $      48.7 $      35.6 $     150.3 $     129.4
                                                                          
Avery                             16.2           -        16.2           -
                                                                          
Container                          2.9         3.7        13.4        10.4
--------------------------------------------------------------------------
--------------------------------------------------------------------------
                                                                          
Total operating income            67.8        39.3       179.9       139.8
                                                                          
Less: Corporate expenses         (9.3)       (6.1)      (23.7)      (19.1)
                                                                          
Add: Depreciation &                                                       
 amortization                     32.6        25.6        86.6        76.2
Add: Non-cash acquisition                                                 
 accounting adjustment to                                                 
 finished goods inventory         16.7           -        16.7           -
--------------------------------------------------------------------------
--------------------------------------------------------------------------
                                                                          
EBITDA                     $     107.8 $      58.8 $     259.5 $     196.9
--------------------------------------------------------------------------
--------------------------------------------------------------------------
                                                                          
                                                                          
Reconciliation of Basic Earnings per Class B Share to                     
Adjusted Basic Earnings per Class B Share                                 
                                                                          
Unaudited                                                                 
--------------------------------------------------------------------------
                                                                          
                              Three months ended       Nine months ended  
                                 September 30th          September 30th   
                          ------------------------------------------------
                                                                          
                                  2013        2012        2013        2012
                          ------------------------------------------------
Basic earnings per Class B                                                
 Share                     $      0.68 $      0.64 $      2.46 $      2.32
                                                                          
Net loss from                                                             
 restructuring and other                                                  
 items                            0.36           -        0.42           -
                                                                          
OCP & DES finance costs              -           -        0.02           -
                                                                          
Non-cash finished goods                                                   
 inventory adjustment for                                                 
 OCP and DES                      0.34           -        0.34           -
                                                                          
--------------------------------------------------------------------------
--------------------------------------------------------------------------
                                                                         
 
Adjusted Basic Earnings                                                   
 per Class B Share         $      1.38 $      0.64 $      3.24 $      2.32
--------------------------------------------------------------------------
--------------------------------------------------------------------------

 
The financial information presented herein has been prepared on the
basis of IFRS for financial statements and is expressed in Canadian
dollars unless otherwise stated.  
This press release contains forward-looking information and
forward-looking statements (hereinafter collectively referred to as
"forward-looking statements"), as defined under applicable securities
laws, that involve a number of risks and uncertainties.
Forward-looking statements include all statements that are predictive
in nature or depend on future events or conditions. Forward-looking
statements are typically identified by the words "believes,"
"expects," "anticipates," "estimates," "intends," "plans" or similar
expressions. Statements regarding the operations, business, financial
condition, priorities, ongoing objectives, strategies and outlook of
the Company, other than statements of historical fact, are
forward-looking statements. Specifically, this press release contains
forward-looking statements regarding the anticipated growth in sales,
income and profitability of the Company's segments; and the Company's
expectations regarding general business and economic conditions. 
Forward-looking statements are not guarantees of future performance.
They involve known and unknown risks and uncertainties relating to
future events and conditions including, but not limited to, the
after-effects of the global financial crisis and its impact on the
world economy and capital markets; the impact of competition;
consumer confidence and spending preferences; general economic and
geopolitical conditions; currency exchange rates; interest rates and
credit availability; technological change; changes in government
regulations; risks associated with operating and product hazards; and
CCL's ability to attract and retain qualified employees. Do not
unduly rely on forward-looking statements as the Company's actual
results could differ materially from those anticipated in these
forward-looking statements. Forward-looking statements are also based
on a number of assumptions, which may prove to be incorrect,
including, but not limited to, assumptions about the following:
global economic recovery and higher consumer spending; improved
customer demand for the Company's products; continued historical
growth trends, market growth in specific sectors and entering into
new sectors; the Company's ability to provide a wide range of
products to multinational customers on a global basis; the benefits
of the Company's focused strategies and operational approach; the
achievement of the Company's plans for improved efficiency and lower
costs, including stable aluminum costs; the availability of cash and
credit; fluctuations of currency exchange rates; the Company's
continued relations with its customers; the Company's expectation to
effectively integrate and operate the acquired Office & Consumer
Products and Designed & Engineered Solutions businesses of Avery
Dennison Corporation; the Company's estimated restructuring charges
and expected range of synergies; the Company's ability to stabilize
OCP revenue; the Company's expectation for back-to-school sales and
resulting cash flow from the OCP business; and general business and
economic conditions. Should one or more risks materialize or should
any assumptions prove incorrect, then actual results could vary
materially from those expressed or implied in the forward-looking
statements. Further details on key risks can be found in the
Management's Discussion and Analysis section of CCL's 2012 Annual
Report, particularly under Section 4: "Risks and Uncertainties."
CCL's annual and quarterly reports can be found online at
www.cclind.com and www.sedar.com or are available upon request. 
Except as otherwise indicated, forward-looking statements do not take
into account the effect that transactions or non-recurring or other
special items announced or occurring after the statements are made
may have on CCL's business. Such statements do not, unless otherwise
specified by the Company, reflect the impact of dispositions, sales
of assets, monetizations, mergers, acquisitions, other business
combinations or transactions, asset write-downs or other charges
announced or occurring after forward-looking statements are made. The
financial impact of these transactions and non-recurring and other
special items can be complex and depends on the facts particular to
each of them and therefore cannot be described in a meaningful way in
advance of knowing specific facts. 
The forward-looking statements are provided as of the date of this
press release and the Company does not assume any obligation to
update or revise the forward-looking statements to reflect new events
or circumstances, except as required by law. 


 
Note:  CCL will hold a conference call at 1:00 p.m. EST on Monday, November
       11, 2013, to discuss these results. The analyst presentation will be
       posted on the Company's website.                                    
                                                                           
       To access this call, please dial:                                   
       416-340-8527 - Local                                                
       1-800-952-4972 - Toll Free                                          
                                                                           
       Audio replay service will be available from November 11, 2013, at   
       6:00 p.m. EST until November 25, 2013, at 11:59 p.m. EST.           
                                                                           
       To access Conference Replay, please dial:                           
       905-694-9451 - Local                                                
       1-800-408-3053 - Toll Free                                          
       Access Code: 6689523                                                
                                                                           
       For more details on CCL, visit our website - www.cclind.com         
                                                                           
                                                                           
CCL Industries Inc.                                                        
Consolidated condensed interim statements of financial position            
Unaudited                                                                  
                                                                           
In thousands of Canadian dollars                                           
                                     As at September 30   As at December 31
                                                   2013                2012
                                    -------------------  ------------------
Assets                                                                     
Current assets                                                             
 Cash and cash equivalents         $            260,051 $           188,972
 Trade and other receivables                    384,820             191,538
 Inventories                                    181,531              90,194
 Prepaid expenses                                14,752               6,205
 Income tax recoverable                             815                   -
---------------------------------------------------------------------------
Total current assets                            841,969             476,909
---------------------------------------------------------------------------
 Property, plant and equipment                  830,507             679,857
 Goodwill                                       460,814             353,350
 Intangible assets          
                    206,297              29,620
 Deferred tax assets                             67,625              54,686
 Equity accounted investments                    45,552              42,878
 Other assets                                    22,259              16,783
---------------------------------------------------------------------------
Total non-current assets                      1,633,054           1,177,174
---------------------------------------------------------------------------
Total assets                       $          2,475,023 $         1,654,083
---------------------------------------------------------------------------
                                                                           
                                                                           
Liabilities                                                                
Current liabilities                                                        
 Trade and other payables          $            431,711 $           226,248
 Current portion of long-term debt               46,811              84,701
 Income taxes payable                            31,126              10,771
 Derivative instruments                             645                 435
---------------------------------------------------------------------------
Total current liabilities                       510,293             322,155
---------------------------------------------------------------------------
 Long-term debt                                 758,664             244,332
 Deferred tax liabilities                       114,563             110,607
 Employee benefits                               97,178              81,082
 Provisions and other long-term                                            
  liabilities                                    23,236               8,720
 Derivative instruments                             769                   -
---------------------------------------------------------------------------
Total non-current liabilities                   994,410             444,741
---------------------------------------------------------------------------
Total liabilities                             1,504,703             766,896
---------------------------------------------------------------------------
                                                                           
                                                                           
Equity                                                                     
 Share capital                                  236,739             226,702
 Contributed surplus                              6,254               9,584
 Retained earnings                              757,307             697,937
 Accumulated other comprehensive                                           
  loss                                         (29,980)            (47,036)
---------------------------------------------------------------------------
Total equity attributable to                                               
 shareholders of the Company                    970,320             887,187
---------------------------------------------------------------------------
                                                                           
---------------------------------------------------------------------------
Total liabilities and equity       $          2,475,023 $         1,654,083
---------------------------------------------------------------------------
                                                                           
                                                                           
CCL Industries Inc.                                                        
Consolidated condensed interim income statements                           
Unaudited                                                                  
                                                                           
In thousands of Canadian                                                   
 dollars, except per share data                                            
                                                                           
                         Three Months Ended          Nine Months Ended     
                            September 30                September 30       
                     ------------------------------------------------------
                                          %                            %   
                         2013      2012 Change        2013      2012 Change
                     ------------------------------------------------------
                                                                           
Sales               $ 606,646 $ 316,643   91.6 $ 1,331,703 $ 995,101   33.8
Cost of sales         461,371   242,674          1,001,462   753,661       
---------------------------------------------------------------------------
Gross profit          145,275    73,969            330,241   241,440       
Selling, general                                                           
 and administrative    86,781    40,703            174,018   120,688       
Restructuring and                                                          
 other items           18,290         -             21,044         -       
Earnings in equity                                                         
 accounted                                                                 
 investments            (470)     (219)            (1,092)   (1,073)       
---------------------------------------------------------------------------
                       40,674    33,485            136,271   121,825       
---------------------------------------------------------------------------
Finance cost            7,866     5,510             19,299    16,534       
Finance income          (121)     (198)              (447)     (769)       
---------------------------------------------------------------------------
Net finance cost        7,745     5,312             18,852    15,765       
---------------------------------------------------------------------------
Earnings before                                                            
 income taxes          32,929    28,173   16.9     117,419   106,060   10.7
Income tax expense      9,384     6,869             33,354    28,468       
---------------------------------------------------------------------------
Net earnings        $  23,545 $  21,304   10.5 $    84,065 $  77,592    8.3
---------------------------------------------------------------------------
                                                                           
Attributable to:                                                           
 Shareholders of                                                           
  the Company       $  23,545 $  21,304        $    84,065 $  77,592       
---------------------------------------------------------------------------
Net earnings for                                                           
 the period         $  23,545 $  21,304        $    84,065 $  77,592       
---------------------------------------------------------------------------
                                                                           
Basic earnings per                                                         
 Class B share      $    0.68 $    0.64    6.3 $      2.46 $    2.32    6.0
---------------------------------------------------------------------------
                                                                           
Diluted earnings                                                           
 per Class B share  $    0.67 $    0.63    6.3 $      2.42 $    2.28    6.1
---------------------------------------------------------------------------
                                                                          
                                                                          
CCL Industries Inc.                                         
              
Consolidated condensed interim statements of cash flows                   
Unaudited                                                                 
                                                                          
In thousands of Canadian dollars                                          
                              Three Months Ended       Nine Months Ended  
                                 September 30            September 30     
                                  2013        2012        2013        2012
--------------------------------------------------------------------------
Cash provided by (used                                                    
 for)                                                                     
Operating activities                                                      
 Net earnings              $    23,545 $    21,304 $    84,065 $    77,592
 Adjustments for:                                                         
  Depreciation and                                                        
   amortization                 32,563      25,600      86,568      76,176
  Earnings in equity                                                      
   accounted investments,                                                 
   net of dividends                                                       
    received                     (470)         164       1,460         119
  Net finance cost               7,745       5,312      18,852      15,765
  Current income tax                                                      
   expense                      23,215       9,841      48,699      35,702
  Deferred taxes              (13,831)     (2,972)    (15,345)     (7,234)
  Equity-settled share-                                                   
   based payment                                                          
   transactions                  3,177       1,005       4,221       3,076
  Gain on sale of                                                         
   property, plant and                                                    
   equipment                      (25)         (1)       (343)       (103)
--------------------------------------------------------------------------
                                75,919      60,253     228,177     201,093
  Change in inventories         51,109           8      33,781         144
  Change in trade and                                                     
   other receivables             8,590       5,394    (32,030)    (19,832)
  Change in prepaid                                                       
   expenses                      2,717         713     (1,512)     (3,057)
  Change in trade and                                                     
   other payables               25,697       3,025      52,302     (4,099)
  Change in income taxes                                                  
   receivable and payable        4,590         727       5,107       3,581
  Change in employee                                                      
   benefits                      9,569       (369)      16,096       3,867
  Change in other assets                                                  
   and liabilities               2,370         203    (15,939)     (4,060)
--------------------------------------------------------------------------
                               180,561      69,954     285,982     177,637
 Net interest paid            (12,778)    (10,384)    (22,856)    (21,102)
 Income taxes paid            (12,853)     (8,930)    (34,318)    (25,336)
--------------------------------------------------------------------------
Cash provided by operating                                                
 activities                    154,930      50,640     228,808     131,199
--------------------------------------------------------------------------
                                                                          
                                                                          
Financing activities                                                      
 Proceeds on issuance of                                                  
  debt                          88,506          79     565,426         101
 Repayment of debt            (93,972)    (10,940)    (98,573)    (14,228)
 Proceeds from issuance of                                                
  shares                             -         185      16,537       2,053
 Repayment of executive                                                   
  share purchase plan                                                     
  loans                              -           -           -         233
 Purchase of shares held                                                  
  in trust                    (13,680)           -    (13,680)           -
 Repurchase of shares                -           -     (3,018)           -
 Dividends paid                (7,363)     (6,554)    (22,046)    (19,658)
--------------------------------------------------------------------------
Cash provided by (used                                                    
 for) financing activities    (26,509)    (17,230)     444,646    (31,499)
--------------------------------------------------------------------------
                                                                          
                                                                          
Investing activities                                                      
 Additions to property,                                                   
  plant and equipment         (22,667)    (25,031)    (85,849)    (67,998)
 Proceeds on disposal of                                                  
  property, plant and                                                     
  equipment                         49         491       1,907       1,102
 Business acquisitions and                                                
  other long-term                                                         
  investments                (514,308)     (7,615)   (525,970)     (9,633)
--------------------------------------------------------------------------
Cash used for investing                                                   
 activities                  (536,926)    (32,155)   (609,912)    (76,529)
--------------------------------------------------------------------------
 Net increase (decrease)                                                  
  in cash and cash                                                        
  equivalents                (408,505)       1,255      63,542      23,171
 Cash and cash equivalents                                                
  at beginning of period       683,905     162,332     188,972     140,698
 Translation adjustment on                                                
  cash and cash                                                           
  equivalents                 (15,349)     (4,041)       7,537     (4,323)
--------
------------------------------------------------------------------
Cash and cash equivalents                                                 
 at end of period          $   260,051 $   159,546 $   260,051 $   159,546
--------------------------------------------------------------------------
                                                                            
CCL Industries Inc.                                                         
Segment information                                                         
Unaudited                                                                   
                                                                            
In thousands of Canadian dollars                                            
                                                                            
                                  Three Months Ended September 30           
                      ------------------------------------------------------
                                 Sales                  Operating income    
                      ------------------------------------------------------
                               2013          2012          2013         2012
                      ------------------------------------------------------
Label                 $     360,369 $     270,831 $      48,708 $     35,598
Avery                       201,790             -        16,222            -
Container                    44,487        45,812         2,898        3,747
                      ------------------------------------------------------
Total operations      $     606,646 $     316,643        67,828       39,345
                      ---------------------------                           
                                                                            
Corporate expense                                       (9,334)      (6,079)
Restructuring and                                                           
 other items                                           (18,290)            -
Earnings in equity                                                          
 accounted investments                                      470          219
Finance cost                                            (7,866)      (5,510)
Finance income                                              121          198
Income tax expense                                      (9,384)      (6,869)
                                                 ---------------------------
Net earnings                                      $      23,545 $     21,304
                                                 ---------------------------
                                                                            
                                                                            
                              Total Assets             Total Liabilities    
                      ------------------------------------------------------
                       September 30   December 31  September 30  December 31
                      ------------------------------------------------------
                               2013          2012          2013         2012
                      ------------------------------------------------------
                                                                            
Label                 $   1,552,023 $   1,249,677 $     363,652 $    290,100
Avery                       371,179             -       179,131            -
Container                   141,540       104,502        45,591       39,437
Equity accounted                                                            
 investments                 45,552        42,878             -            -
Corporate                   364,729       257,026       916,329      437,359
                      ------------------------------------------------------
Total                 $   2,475,023 $   1,654,083 $   1,504,703 $    766,896
                      ------------------------------------------------------
 
                                                                            
CCL Industries Inc.                                                         
Segment information                                                         
Unaudited                                                                   
                                                                            
In thousands of Canadian                                                    
 dollars                                                                    
                                                                            
                                   Nine Months Ended September 30           
                      ------------------------------------------------------
                                  Sales                 Operating income    
                      ------------------------------------------------------
                                2013         2012          2013         2012
                      ------------------------------------------------------
Label                  $     982,524 $    855,028 $     150,285 $    129,406
Avery                        201,790            -        16,222            -
Container                    147,389      140,073        13,448       10,430
                      ------------------------------------------------------
Total operations       $   1,331,703 $    995,101       179,955      139,836
                      ---------------------------                           
                                                                            
Corporate expense                                      (23,732)     (19,084)
Restructuring and                                                           
 other items                                           (21,044)            -
Earnings in equity                                                          
 accounted investments                                    1,092        1,073
Finance cost                                           (19,299)     (16,534)
Finance income                                              447          769
Income tax expense                                     (33,354)     (28,468)
                                                 ---------------------------
Net earnings                                      $      84,065 $     77,592
                                                 ---------------------------
                                                                            
                               Depreciation                                 
                                   and                      Capital         
                               Amortization               Expenditures      
                      ------------------------------------------------------
                               Nine Months                Nine Months       
                             Ended September            Ended September     
                      ------------------------------------------------------
                                2013         2012          2013         2012
                      ------------------------------------------------------
                                                                            
Label                  $      72,202 $     65,310 $      77,034 $     64,818
Avery                          3,161            -         3,770            -
Container                     10,602       10,233         4,998        3,178
Equity accounted                                                            
 investments                       -            -             -            -
Corporate                        603          633            47            2
                      ------------------------------------------------------
Total                  $      86,568 $     76,176 $      85,849 $     67,998
                      ------------------------------------------------------

Contacts: 
CCL Industries Inc.
Sean Washchuk
Senior Vice President
and Chief Financial Officer
416-756-8526
www.cclind.com
 
 
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