TSX: MFI
www.mapleleaffoods.com
MISSISSAUGA, ON, Nov. 2, 2023
/CNW/ - Maple Leaf Foods Inc. ("Maple Leaf Foods" or the "Company")
(TSX: MFI) today announced the correction of certain mathematical
errors in its earnings press release announcing the Company's
unaudited financial results for the third quarter ended
September 30, 2023 (the "Release")
and related Management's Discussion and Analysis. The Company
has also filed an Amended and Restated Management's Discussion and
Analysis reflecting these corrections on Sedar+ at
www.sedarplus.ca. Specifically, under the heading "Financial
Highlights," Free Cash Flow should have been reported as
follows:
Financial Highlights
|
As at or for
the
|
|
As at or for
the
|
|
Measure(i)
(Unaudited)
|
Three months ended
September 30,
|
|
Nine months ended
September 30,
|
|
2023
|
|
2022
|
|
Change
|
|
2023
|
|
2022
|
|
Change
|
|
Free Cash
Flow(ii)(iii)
|
|
$
89.6
|
|
$
57.9
|
|
54.7 %
|
|
$
25.6
|
|
$
(41.6)
|
|
nm
(iv)
|
|
(i)
In millions of dollars
|
|
(ii)
Refer to the section titled Non-IFRS Financial Measures in this
news release
|
|
(iii)
Certain comparative figures have been restated to conform with
current year presentation
|
|
(iv)
Not meaningful
|
Similarly, the calculation of Free Cash Flow, as set out under
the heading "Non-IFRS Financial Measures," should have been
reported as follows:
Non-IFRS Financial Measures
Free Cash Flow
Free Cash Flow, a non-IFRS measure, is used by Management to
evaluate cash flow after investing in the maintenance of the
Company's asset base. It is defined as cash provided by operations,
less Maintenance Capital(i) and associated
interest paid and capitalized. The following table calculates Free
Cash Flow for the periods indicated below:
|
($ thousands)
(Unaudited)
|
Three months ended
September 30,
|
Nine months ended
September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Cash provided by
operating activities
|
|
$ 115,161
|
|
$
75,499
|
|
$
93,871
|
|
$
6,998
|
|
Maintenance
Capital(i)
|
|
(25,190)
|
|
(17,491)
|
|
(67,368)
|
|
(48,360)
|
|
Interest paid and
capitalized related to Maintenance Capital
|
|
(404)
|
|
(63)
|
|
(890)
|
|
(236)
|
|
Free Cash
Flow(ii)
|
|
$
89,567
|
|
$
57,945
|
|
$
25,613
|
|
$ (41,598)
|
|
(i)
|
Maintenance Capital
is defined as non-discretionary investment required to maintain the
Company's existing operations and competitive position. For the
three and nine months ended September 30, 2023, total capital
spending of $51.3 million and $156.4 million (2022: $78.5 million
and $257.8 million) shown on the Consolidated Statements of Cash
Flows is made up of Maintenance Capital of $25.2 million and $67.4
million (2022: $17.5 million and $48.4 million), and Growth Capital
of $26.1 million and $89.0 million (2022: $61.1 million and $209.4
million). Growth Capital is defined as discretionary investment
meant to create stakeholder value through initiatives that for
example, expand margins, increase capacities or create further
competitive advantage.
|
|
(ii)
|
Certain comparative
figures have been restated to conform with current year
presentation.
|
The mathematical errors in the Release resulted from the fact
that in the calculation of Free Cash Flow in the Release, the
amount for Maintenance Capital for the three and nine months ended
September 30, 2023 and 2022 were
shown as positive amounts rather than as negative
amounts. Specifically, for the three months ended
September 30, 2023 and 2022, and for
the nine months ended September 30,
2023 and 2022, Maintenance Capital should have been shown as
$(25.2) million rather than
$25.2 million; $(17.5) million rather than $17.5 million; $(67.4)
million rather than $67.4
million; and $(48.4) million
rather than $48.4 million,
respectively. As a result, for the three months ended
September 30, 2023 and 2022, and for
the nine months ended September 30,
2023 and 2022, Free Cash Flow should have been $89.6 million rather than $139.9 million; $57.9
million rather than $92.9
million; $25.6 million rather
than $160.3 million; and $(41.9) million rather than $55.1 million.
About Maple Leaf Foods Inc.
Maple Leaf Foods is a carbon neutral company with a vision to be
the most sustainable protein company on earth, responsibly
producing food products under leading brands including Maple Leaf®,
Maple Leaf Prime®, Maple Leaf Natural Selections®, Schneiders®,
Schneiders® Country Naturals®, Mina®, Greenfield Natural Meat Co.®,
Lightlife® and Field Roast™. The Company employs approximately
14,000 people and does business primarily in Canada, the U.S. and Asia. The Company is headquartered in
Mississauga, Ontario and its
shares trade on the Toronto Stock Exchange (MFI).
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SOURCE Maple Leaf Foods Inc.