CCL Industries Inc. (TSX:CCL.A)(TSX:CCL.B) -
Results Summary
For periods ended June 30 Three months unaudited
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%
Change
(in millions of Cdn dollars, % Excl.
except per share data) 2014 2013 Change FX(i)
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Sales $ 650.4 $ 361.4 80.0% 73.3%
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EBITDA(1) $ 118.8 $ 70.7 68.0% 61.4%
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Operating income(2) $ 89.2 $ 50.2 77.7% 71.4%
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Earnings in equity accounted
investments $ 1.0 $ 0.2 400.0%
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Restructuring and other items - loss $ 1.1 $ 1.4 (21.4%)
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Net earnings $ 55.3 $ 26.4 109.5% 100.4%
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Per Class B share
Basic earnings per share $ 1.61 $ 0.77 109.1%
Diluted earnings per share $ 1.58 $ 0.76 107.9%
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Restructuring and other items - net
loss $ 0.02 $ 0.05 (60.0%)
Adjusted basic earnings per Class B
share(3) $ 1.63 $ 0.82 98.8%
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Number of outstanding shares (in 000's)
Weighted average for the period - basic
Actual at period end
For periods ended June 30 Six months unaudited
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%
Change
(in millions of Cdn dollars, % Excl.
except per share data) 2014 2013 Change FX(i)
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Sales $1,260.1 $ 725.1 73.8% 66.4%
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EBITDA(1) $ 236.8 $ 151.7 56.1% 48.4%
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Operating income(2) $ 177.7 $ 112.1 58.5% 50.9%
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Earnings in equity accounted
investments $ 1.0 $ 0.6 66.7%
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Restructuring and other items - loss $ 2.0 $ 2.8 (28.6%)
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Net earnings $ 107.9 $ 60.5 78.3% 68.9%
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Per Class B share
Basic earnings per share $ 3.15 $ 1.78 77.0%
Diluted earnings per share $ 3.09 $ 1.75 76.6%
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Restructuring and other items - net
loss $ 0.04 $ 0.08 (50.0%)
Adjusted basic earnings per Class B
share(3) $ 3.19 $ 1.86 71.5%
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Number of outstanding shares (in
000's)
Weighted average for the period -
basic 34,298 34,045
Actual at period end 34,551 34,375
(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.
Second Quarter 2014 Results
Sales for the second quarter of 2014 increased 80.0% to $650.4 million, compared
to $361.4 million for the second quarter of 2013, with 6.2% organic growth, 6.7%
positive currency translation and the balance primarily from the Avery, DES,
Dekopak and Sancoa acquisitions. For the six months ended June 30, 2014, sales
increased 66.4%, excluding foreign currency translation, compared to the 2013
six-month period.
Operating income (a non-IFRS measure; see note 2 below) for the second quarter
of 2014 was $89.2 million, an increase of 77.7% compared to $50.2 million for
the comparable quarter of 2013. The Label Segment posted a 24.4% increase in
operating income partially offset by the Container Segment, which posted a $0.4
million or 7.7% decline in operating income for the comparable second quarters.
The Avery Segment recorded a strong second quarter with $28.4 million of
operating income. All three segments, Label, Avery and Container, contributed to
the strong results for the six-month period ending June 30, 2014, resulting in a
58.5% improvement in operating income for the comparable six-month period.
EBITDA (a non-IFRS measure; see note 1 below) was $118.8 million for the second
quarter of 2014, an increase of 68.0% compared to $70.7 million for the second
quarter of 2013, driven principally by the above noted acquisitions. EBITDA
improved 61.4% excluding the impact of currency translation. For the six-month
period ended June 30, 2014, EBITDA was $236.8 million, an increase of 56.1%
compared to $151.7 million in the comparable 2013 six-month period.
The Company's joint ventures contributed equity earnings of $1.0 million for the
three-month and six-month periods ended June 30, 2014 compared to $0.2 million
and $0.6 million, respectively, for the same periods ended June 30, 2013. Solid
performance in the Middle East and a bounce back in the ruble to euro exchange
rate in Russia drove improved results this quarter.
Tax expense in the second quarter of 2014 was $20.1 million compared to $9.8
million in the prior year period. The effective tax rates for these two periods
are 27.0% and 27.2%, respectively. The overall effective income tax rate was
28.3% for the six-month period of 2014 compared to 28.5% in the six-month period
of 2013.
Net earnings for the 2014 second quarter were $55.3 million an increase of
109.5% compared to $26.4 million for the second quarter of 2013. Basic earnings
per Class B share were $1.61 in the second quarter of 2014 compared to $0.77 per
Class B share in the prior year quarter.
Net earnings for the six-month period of 2014 were $107.9 million, an increase
of 78.3% compared to $60.5 million for the same period a year ago. This resulted
in basic and diluted earnings of $3.15 and $3.09 per Class B share,
respectively, for the 2014 six-month period compared to basic and diluted
earnings of $1.78 and $1.75 per Class B share, respectively, for the prior year
six-month period. The increase in net earnings is primarily attributable to the
improvement in operating income and decline in the effective tax rate, partially
offset by the increases in net finance cost.
During the second quarter of 2014, the Company recorded restructuring and other
expenses of $1.1 million primarily related to severance and transaction costs
associated with the acquisition and reorganization of Sancoa and severance costs
at the DES business. During the second quarter of 2013, the Company recorded
transaction costs and other expenses of $1.4 million related to the acquisition
of Avery and DES businesses from Avery Dennison Corporation. For the six-month
period ended June 30, 2014, restructuring and other items expense was $2.0
million compared to $2.8 million for the same period in 2013.
The Company therefore posted adjusted basic earnings (a non-IFRS measure; see
note 3 below) of $1.63 and $3.19 per Class B share for the three-month and
six-month periods ended June 30, 2014, compared to adjusted basic earnings of
$0.82 and $1.86 per Class B share for the corresponding periods in 2013.
Geoffrey T. Martin, President and Chief Executive Officer, stated, "Second
quarter earnings were another record, with our legacy businesses contributing
meaningful improvement and our new Avery consumer arm powering ahead of planned
results. While the Canadian dollar strengthened sequentially, it remained weaker
against many currencies compared to the prior year, notably excluding the
Brazilian real. This translated to seven cents earnings per share positive
impact adding to our fifteenth consecutive quarter of year-over-year improvement
in adjusted earnings per share."
Mr. Martin continued, "CCL Label sales increased 37% driven by acquisitions,
over 7% organic growth and positive currency translation. North America recorded
high-single digit organic growth with Healthcare improving notably as certain
customers recovered from FDA quarantines. Specialty was mixed with strong World
Cup promotional activity, offset by a soft Agricultural Chemicals season
attributed by the market to the prolonged tough winter. Home & Personal Care
sales, excluding the Sancoa acquisition, improved on new business momentum but
in the face of continuing sluggish market demand. Results in Food & Beverage
improved meaningfully with notable gains at our West Coast wine plants. CCL
Design sales benefited from a robust North American automotive market but
operating margins remain below the Segment average. Excluding acquisitions,
European sales were up low-single digits in local currencies as demand improved
in our consumer and automotive businesses with the Food & Beverage sector an
area of strength. Operating Income was negatively impacted $1.7 million by the
insolvency of a large German automotive customer at CCL Design. Emerging Markets
posted double digit sales increases led by exceptional results in China but also
on higher Food & Beverage sales in South East Asia and South Africa. Growth in
Latin America tapered markedly to mid-single digits as macroeconomic
deterioration, soft consumer demand and currency related pricing challenges all
impacted us, most notably in Brazil. Results in Australia were mixed with gains
in Wine labels offset by lower Healthcare performance. The recent typhoon in the
Philippines will postpone the start-up of our new plant near Manila. Our joint
ventures posted solid results, inclusive of start-up costs at the Tube operation
in Thailand. The Middle East performed well and currency challenges in Russia
largely reversed. Absolute profitability continued to improve for the Label
Segment with margins compressed entirely due to the acquisition mix effect."
Mr. Martin then added, "Results at Avery significantly exceeded expectations
with operating income at $28 million. Shipments to retailers for the North
American back-to-school season started earlier than expected and translated to
improved profitability compared to the first quarter of this year and the
pre-acquisition second quarter of 2013. Cost saving initiatives globally, solid
operating execution and label category market share gains in the United States
were additional drivers. The consolidation of supply chain facilities remains on
track for a successful completion later this year without service disruption.
Third quarter back-to-school volumes are unpredictable depending heavily on the
timing of initial shipments and ultimately retailer replenishment orders based
on actual consumer demand as the season unfolds. Third quarter performance at
Avery is highly dependent on back-to-school success."
Mr. Martin then added, "CCL Container posted improved results on higher volumes
in North America but total performance was held back by disruption in Mexico for
the months of April and May as we commissioned one of the transferred production
lines from our Canadian plant. June results returned to normal levels. Operating
income for the Segment, after adding back the $0.3 million in equipment move
expenses incurred in the quarter, was down only 2%. Year to date we have
expensed $0.5 million of our planned $4 million cost to redistribute capacity
from the Canadian facility to our U.S. and Mexican operations. We remain
committed to deliver $10 million in annualized cost savings after the transition
is completed towards the end of 2015."
Mr. Martin concluded, "Debt declined during the second quarter as the Company
made net repayments of $32 million; cash on hand increased to $208 million and
the available capacity on our revolving credit facility increased to $149
million. Furthermore, with significantly improved results the consolidated net
debt to annualized EBITDA leverage ratio improved to 1.3 times. Given our
significantly higher earnings, strong cash flow expectation for the current year
and positive outlook for future periods, your Board of Directors approved a 20%
increase to the quarterly dividend. Therefore the most recent quarterly dividend
level paid of $0.25 per Class B non-voting share and $0.2375 per Class A voting
share will now be increased to $0.30 and $0.2875 per share respectively. This
increased quarterly dividend will be payable to shareholders of record at the
close of business on September 16, 2014, to be paid on September 30, 2014. In
keeping with past practice, your Board of Directors will review the dividend
again for 2015 with the fourth quarter results of 2014. CCL has delivered
dividends to shareholders without omission or reduction for over 30 years."
With headquarters in Toronto, Canada, CCL Industries now employs approximately
10,100 people and operates 97 production facilities in 27 countries on five
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
packaging 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, earnings in equity accounted investments, non-cash
acquisition accounting adjustment to finished goods inventory 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 dispositions, goodwill impairment loss, restructuring
and other items, Avery and DES finance costs, non-cash acquisition accounting
adjustment to finished goods inventory and tax adjustments.
Supplementary Information
For periods ended June 30th
Reconciliation of Operating Income to EBITDA
Unaudited
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(In millions of Canadian dollars)
Three months ended Six months ended
June 30th June 30th
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Operating Income
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2014 2013 2014 2013
--------- -------- -------- --------
Label $ 56.0 $ 45.0 $ 125.4 $ 101.5
Avery 28.4 - 41.5 -
Container 4.8 5.2 10.8 10.6
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Total operating income 89.2 50.2 177.7 112.1
Less: Corporate expenses 7.4 6.9 13.5 14.4
Add: Depreciation & amortization 37.0 27.4 72.6 54.0
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EBITDA $ 118.8 $ 70.7 $ 236.8 $ 151.7
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Reconciliation of Basic Earnings per Class B Share to
Adjusted Basic Earnings per Class B Share
Unaudited
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Three months ended Six months ended
June 30th June 30th
------------------- ------------------
2014 2013 2014 2013
-------- --------- -------- --------
Basic earnings per Class B Share $ 1.61 $ 0.77 $ 3.15 $ 1.78
Net loss from restructuring and
other items 0.02 0.05 0.04 0.08
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Adjusted Basic Earnings per Class
B Share $ 1.63 $ 0.82 $ 3.19 $ 1.86
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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; general business and economic conditions, and the
Company's ability to realize targeted operational synergies and cost savings
from the restructuring of Avery, Sancoa and the Canadian Container operation.
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
2013 Management's Discussion and Analysis, 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 1:30 p.m. EDT on July 31, 2014,
to discuss these results. The analyst presentation will be posted on
the Company's website.
To access this call, please dial:
416-340-2218 - Local
866-225-0198 - Toll Free
Audio replay service will be available from July 31, 2014, at 6:00
p.m. EDT until August 14, 2014, at 11:59 p.m. EDT.
To access Conference Replay, please dial:
905-694-9451 - Local
800-408-3053 - Toll Free
Access Code: 6477721
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 June 30 As at December 31
2014 2013
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Assets
Current assets
Cash and cash equivalents $ 208,303 $ 209,095
Trade and other receivables 430,913 363,493
Inventories 218,139 181,644
Prepaid expenses 19,350 13,458
Income tax recoverable 3,280 2,503
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Total current assets 879,985 770,193
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Property, plant and equipment 907,427 856,001
Goodwill 548,400 494,231
Intangible assets 207,425 207,569
Deferred tax assets 4,557 4,115
Equity accounted investments 53,275 47,363
Other assets 23,983 22,176
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Total non-current assets 1,745,067 1,631,455
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Total assets $ 2,625,052 $ 2,401,648
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Liabilities
Current liabilities
Trade and other payables $ 518,830 $ 475,777
Current portion of long-term debt 52,176 47,070
Income taxes payable 21,228 21,060
Derivative instruments 158 642
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Total current liabilities 592,392 544,549
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Long-term debt 722,425 664,976
Deferred tax liabilities 41,622 42,661
Employee benefits 116,608 109,068
Provisions and other long-term
liabilities 15,719 21,511
Derivative instruments 747 748
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Total non-current liabilities 897,121 838,964
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Total liabilities 1,489,513 1,383,513
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Equity
Share capital 243,164 237,189
Contributed surplus 16,439 11,919
Retained earnings 859,522 768,738
Accumulated other comprehensive
income 16,414 289
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Total equity attributable to
shareholders of the Company 1,135,539 1,018,135
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Total liabilities and equity $ 2,625,052 $ 2,401,648
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CCL Industries Inc.
Consolidated condensed interim income statements
Unaudited
In thousands of Canadian dollars, except per share data
Three Months Ended June 30 Six Months Ended June 30
--------------------------- ---------------------------
% %
2014 2013 Change 2014 2013 Change
------- ------- ------ ---------- -------- ------
Sales $650,402 $361,414 80.0 $ 1,260,102 $ 725,057 73.8
Cost of sales 476,264 272,178 925,007 540,091
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Gross profit 174,138 89,236 335,095 184,966
Selling, general and
administrative 92,298 45,930 170,923 87,237
Restructuring and
other items 1,095 1,432 2,041 2,754
Earnings in equity
accounted
investments (975) (245) (1,044) (622)
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81,720 42,119 163,175 95,597
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Finance cost 6,477 6,066 13,351 11,433
Finance income (179) (166) (330) (326)
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Net finance cost 6,298 5,900 13,021 11,107
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Earnings before
income taxes 75,422 36,219 108.2 150,154 84,490 77.7
Income tax expense 20,094 9,781 42,264 23,970
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Net earnings $ 55,328 $ 26,438 109.3 $ 107,890 $ 60,520 78.3
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Attributable to:
Shareholders of
the Company $ 55,328 $ 26,438 $ 107,890 $ 60,520
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Net earnings for the
period $ 55,328 $ 26,438 $ 107,890 $ 60,520
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Basic earnings per
Class B share $ 1.61 $ 0.77 109.1 $ 3.15 $ 1.78 77.0
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Diluted earnings per
Class B share $ 1.58 $ 0.76 107.9 $ 3.09 $ 1.75 76.6
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CCL Industries Inc.
Consolidated condensed interim statements of cash flows
Unaudited
In thousands of Canadian dollars
Three Months Ended Six Months Ended
June 30 June 30
2014 2013 2014 2013
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Cash provided by (used
for)
Operating activities
Net earnings $ 55,328 $ 26,438 $ 107,890 $ 60,520
Adjustments for:
Depreciation and
amortization 37,049 27,372 72,556 54,005
Earnings in equity
accounted
investments, net of
dividends received (975) 2,307 (1,044) 1,930
Net finance cost 6,298 5,900 13,021 11,107
Current income tax
expense 21,696 8,713 41,961 25,484
Deferred taxes (1,602) 1,068 303 (1,514)
Equity-settled share-
based payment
transactions 2,359 523 5,810 1,044
Gain on sale of
property, plant and
equipment (220) (183) (70) (318)
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119,933 72,138 240,427 152,258
Change in inventories (12,833) (10,898) (28,722) (17,328)
Change in trade and
other receivables (12,497) (4,266) (53,963) (40,620)
Change in prepaid
expenses (5,678) (4,032) (5,675) (4,229)
Change in trade and
other payables 31,498 15,627 20,461 26,605
Change in income taxes
receivable and
payable (2,045) (184) 29 517
Change in employee
benefits 572 2,296 7,540 6,527
Change in other assets
and liabilities (5,370) (20,233) (12,370) (18,309)
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113,580 50,448 167,727 105,421
Net interest paid (2,603) (13) (13,086) (10,078)
Income taxes paid (25,999) (13,106) (42,599) (21,465)
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Cash provided by operating
activities 84,978 37,329 112,042 73,878
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Financing activities
Proceeds on issuance of
debt 13,331 476,920 111,592 476,920
Repayment of debt (45,741) (1,962) (47,849) (4,601)
Proceeds from issuance
of shares 1,046 5,450 4,784 16,537
Repurchase of shares - (3,018) - (3,018)
Dividends paid (8,606) (7,361) (17,206) (14,683)
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Cash provided by (used
for) financing activities (39,970) 470,029 51,321 471,155
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Investing activities
Additions to property,
plant and equipment (24,269) (23,932) (84,147) (63,182)
Proceeds on disposal of
property, plant and
equipment 238 1,617 5,652 1,858
Business acquisitions
and other long-term
investments - (11,662) (86,924) (11,662)
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Cash used for investing
activities (24,031) (33,977) (165,419) (72,986)
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Net increase (decrease)
in cash and cash
equivalents 20,977 473,381 (2,056) 472,047
Cash and cash
equivalents at
beginning of period 193,843 189,647 209,095 188,972
Translation adjustment
on cash and cash
equivalents (6,517) 20,877 1,264 22,886
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Cash and cash equivalents
at end of period $ 208,303 $ 683,905 $ 208,303 $ 683,905
----------------------------------------------------------------------------
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CCL Industries Inc.
Segment information
Unaudited
In thousands of Canadian dollars
Three Months Ended June 30
----------------------------------------------
Sales Operating income
---------------------- ----------------------
2014 2013 2014 2013
--------- ----------- --------- ---------
Label $ 423,758 $ 309,891 $ 55,983 $ 44,998
Avery 174,200 - 28,405 -
Container 52,444 51,523 4,804 5,233
------------------------------------------------
Total operations $ 650,402 $ 361,414 89,192 50,231
------------------------
------------------------
Corporate expense (7,352) (6,925)
Restructuring and other
items (1,095) (1,432)
Earnings in equity
accounted investments 975 245
Finance cost (6,477) (6,066)
Finance income 179 166
Income tax expense (20,094) (9,781)
------------------------
Net earnings $ 55,328 $ 26,438
------------------------
------------------------
Total Assets Total Liabilities
---------------------- ---------------------
June December June December
30 31 30 31
---------------------- ----------------------
2014 2013 2014 2013
--------- ----------- --------- ----------
Label $1,716,167 $ 1,558,832 $ 398,924 $ 357,386
Avery 431,621 391,658 202,617 205,154
Container 153,514 140,678 54,144 49,607
Equity accounted
investments 53,275 47,363 - -
Corporate 270,475 263,117 833,828 771,366
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Total $2,625,052 $ 2,401,648 $1,489,513 $1,383,513
------------------------------------------------
------------------------------------------------
Six Months Ended June 30
-----------------------------------------
Sales Operating income
------------------ ---------------------
2014 2013 2014 2013
--------- ------- ------- -----------
Label $ 847,498 $622,155 $125,370 $ 101,577
Avery 307,123 - 41,548 -
Container 105,481 102,902 10,828 10,550
-------------------------------------------
Total operations $1,260,102 $725,057 177,746 112,127
--------------------
--------------------
Corporate expense (13,574) (14,398)
Restructuring and other
items (2,041) (2,754)
Earnings in equity
accounted investments 1,044 622
Finance cost (13,351) (11,433)
Finance income 330 326
Income tax expense (42,264) (23,970)
-----------------------
Net earnings $107,890 $ 60,520
-----------------------
-----------------------
Depreciation and
Amortization Capital Expenditures
------------------ ---------------------
Six Months Ended Six Months Ended
June 30 June 30
------------------ ---------------------
2014 2013 2014 2013
--------- ------- ------- -----------
Label $ 58,498 $ 46,497 $ 65,625 $ 60,867
Avery 6,689 - 5,700 -
Container 6,965 7,110 12,822 2,301
Equity accounted
investments - - - -
Corporate 404 398 - 14
-------------------------------------------
Total $ 72,556 $ 54,005 $ 84,147 $ 63,182
-------------------------------------------
-------------------------------------------
Due to the seasonality of CCL's business, the Company's operating results for
the three months or six months ended June 30, 2014, are not necessarily
indicative of the results that may be expected for the full year ending December
31, 2014. The first and second quarters are traditionally higher sales periods
for the Label and Container Segments as a result of the greater number of work
days and various customer activities undertaken during this period versus the
third and fourth quarters of the year. For Avery, the third quarter has
historically been its strongest, as it benefits from the increased demand
related to back-to-school activities in North America.
Certain comparative segment information has been recast to conform with current
period presentation.
FOR FURTHER INFORMATION PLEASE CONTACT:
CCL Industries Inc.
Sean Washchuk
Senior Vice President and Chief Financial Officer
416-756-8526
CCL Industries (TSX:CCL.A)
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