Consolidated Statements of Cash Flows (expressed in thousands of
United States dollars) (unaudited) Three Months Three Months Ended
Ended April 30, April 30, 2008 2007
-------------------------------------------------------------------------
Cash provided by (used in): Operating Net earnings $ 21,256 $ 3,253
Items not involving cash: Amortization and accretion 13,955 19,603
Future income taxes (8,165) (3,194) Stock-based compensation and
pension expense 357 1,282 Foreign exchange (574) 13,461 Loss on
disposal of assets 469 - Minority interest 1 140 Change in non-cash
operating working capital 7,008 (20,219)
-------------------------------------------------------------------------
34,307 14,326
-------------------------------------------------------------------------
Financing Decrease in long-term debt (12,477) (3,626) Increase in
revolving credit 155,190 19,011 Repayment of Harry Winston Inc.
revolving credit (159,109) - Dividends paid (3,069) (14,593) Issue
of common shares 76,039 34
-------------------------------------------------------------------------
56,574 826
-------------------------------------------------------------------------
Investing Cash collateral and cash reserve (8,323) 12,259 Deferred
mineral property costs (1,727) (3,782) Capital assets (68,139)
(37,566) Other assets - (1,091)
-------------------------------------------------------------------------
(78,189) (30,180)
-------------------------------------------------------------------------
Foreign exchange effect on cash balances (544) 382
Increase/(decrease) in cash and cash equivalents 12,148 (14,646)
Cash and cash equivalents, beginning of period (note 3) 49,628
54,174
-------------------------------------------------------------------------
Cash and cash equivalents, end of period (note 3) $ 61,776 $ 39,528
---------------------------- ---------------------------- Change in
non-cash operating working capital Accounts receivable 1,732
(4,285) Prepaid expenses and other current assets (4,435) 1,512
Inventory and supplies (18,577) (43,582) Accounts payable and
accrued liabilities 18,699 18,909 Income tax payable 9,589 7,227
-------------------------------------------------------------------------
$ 7,008 $ (20,219)
-------------------------------------------------------------------------
Supplemental cash flow information Cash taxes paid $ 12,195 $ 736
Cash interest paid $ 4,408 $ 5,743
-------------------------------------------------------------------------
See accompanying notes to consolidated financial statements. Notes
to Consolidated Financial Statements April 30, 2008 with
comparative figures (tabular amounts in thousands of United States
dollars, except as otherwise noted) NOTE 1: Nature of Operations
Harry Winston Diamond Corporation (the "Company") is a specialist
diamond company focusing on the mining and retail segments of the
diamond industry. The Company's most significant asset is a 40%
interest in the Diavik group of mineral claims. The Diavik Joint
Venture (the "Joint Venture") is an unincorporated joint
arrangement between Diavik Diamond Mines Inc. ("DDMI") (60%) and
Harry Winston Diamond Mines Ltd. (40%). DDMI is the operator of the
Diavik Diamond Mine. Both companies are headquartered in
Yellowknife, Canada. DDMI is a wholly owned subsidiary of Rio Tinto
plc of London, England, and Harry Winston Diamond Mines Ltd. is a
wholly owned subsidiary of Harry Winston Diamond Corporation of
Toronto, Canada. The Diavik Diamond Mine is located 300 kilometres
northeast of Yellowknife in the Northwest Territories. The Company
records its proportionate interest in the assets, liabilities and
expenses of the Joint Venture in the Company's financial statements
with a one-month lag. The Company also owns a 100% interest in
Harry Winston Inc., the premier fine jewelry and watch retailer.
The results of Harry Winston Inc., located in New York City, US,
are consolidated in the financial statements of the Company. NOTE
2: Significant Accounting Policies The interim consolidated
financial statements are prepared by management in accordance with
accounting principles generally accepted in Canada. The interim
consolidated financial statements include the accounts of the
Company and all of its subsidiaries as well as its proportionate
interest in the assets, liabilities and expenses of joint
arrangements. Intercompany transactions and balances have been
eliminated. The interim consolidated financial statements should be
read in conjunction with the consolidated financial statements and
the notes thereto in the Company's Annual Report for the year ended
January 31, 2008, since these interim financial statements do not
include all disclosures required by Canadian generally accepted
accounting principles ("Canadian GAAP"). Excluding adoption of the
new accounting standards described below, these statements have
been prepared following the same accounting policies and methods of
computation as the consolidated financial statements for the year
ended January 31, 2008. Adoption Of New Accounting Standards And
Developments Capital Disclosures Effective February 1, 2008, the
Company adopted new accounting recommendations from the Canadian
Institute of Chartered Accountants ("CICA"), Handbook Section 1535,
"Capital Disclosures". This new standard specifies the requirements
for disclosure of both qualitative and quantitative information to
enable users of financial statements to evaluate the Company's
objectives, policies and processes for managing capital. This
disclosure is contained in note 12 to the interim consolidated
financial statements. Inventories Effective February 1, 2008, the
Company adopted new accounting recommendations from the CICA,
Handbook Section 3031, "Inventories", which supersedes the
previously issued standard on inventory. The new standard
introduces significant changes to the measurement and disclosure of
inventory. The measurement changes include: the elimination of
LIFO, the requirement to measure inventories at the lower of cost
and net realizable value method, for inventories that are not
ordinarily interchangeable and goods or services produced for
specific purposes, the requirement for an entity to use a
consistent cost formula for inventory of a similar nature and use,
and the reversal of previous write-downs to net realizable value
when there is a subsequent increase in the value of inventories.
Disclosures of inventories have also been enhanced. Inventory
policies, carrying amounts, amounts recognized as an expense,
write-downs and the reversals of write-downs are required to be
disclosed. This standard has had no material impact on the
Company's consolidated financial statements. Financial Instruments
Effective February 1, 2008, the Company adopted new accounting
recommendations from the CICA, Handbook Section 3862, "Financial
Instruments - Disclosures" and Handbook Section 3863, "Financial
Instruments - Presentation". Section 3862 provides guidance on
disclosure of risks associated with both recognized and
unrecognized financial instruments and how the Company manages
these risks. Section 3863 details financial instruments
presentation requirements, which are unchanged from those discussed
in Section 3861, "Financial Instruments - Disclosure and
Presentation". This disclosure in contained in note 13 to the
interim consolidated financial statements. Recently Issued
Accounting Standards Goodwill and Intangibles On February 1, 2008
the CICA issued Handbook Section 3064, "Goodwill and Intangible
Assets". This Section establishes revised standards for the
recognition, measurement, presentation and disclosure of goodwill
and intangible assets. Concurrent with the introduction of this
standard, the CICA withdrew EIC 27, "Revenues and Expenses During
the Pre-operating Period," which eliminates the ability for
companies to defer costs and revenues incurred prior to commercial
production at new mine operations. The changes are effective for
interim and annual financial statements beginning January 1, 2009.
The Company is currently assessing the impact of this standard on
its consolidated financial statements. International Financial
Reporting Standards ("IFRS"): In 2006, the Canadian Accounting
Standards Board ("AcSB") published a new strategic plan that will
significantly impact financial reporting requirements for Canadian
companies. The AcSB strategic plan outlines the convergence of
Canadian GAAP with IFRS over an expected five-year transitional
period. In February 2008, the AcSB announced that 2011 is the
changeover date for public accountable companies to convert from
Canadian GAAP to IFRS. The transition date is for interim and
annual financial statements relating to fiscal years beginning on
or after January 1, 2011. Accordingly, this new standard will apply
to the Company effective for the fiscal year commencing February 1,
2011. While the Company has begun assessing the adoption of IFRS
for 2011, the financial reporting impact of the transition to IFRS
cannot be reasonably estimated at this time. NOTE 3: Cash Resources
April 30, January 31, 2008 2008
-------------------------------------------------------------------------
Cash on hand and balances with banks $ 61,776 $ 33,028 Short-term
investments (a) - 16,600
-------------------------------------------------------------------------
Total cash and cash equivalents 61,776 49,628 Cash collateral and
cash reserves 33,938 25,615
-------------------------------------------------------------------------
Total cash resources $ 95,714 $ 75,243 ----------------------------
---------------------------- (a) Short-term investments are held in
overnight deposits. NOTE 4: Inventory and Supplies April 30,
January 31, 2008 2008
-------------------------------------------------------------------------
Rough diamond inventory $ 22,349 $ 17,097 Merchandise inventory
256,908 254,101 Supplies inventory 61,548 51,030
-------------------------------------------------------------------------
Total inventory and supplies $ 340,805 $ 322,228
---------------------------- ---------------------------- NOTE 5:
Diavik Joint Venture The following represents Harry Winston Diamond
Corporation's 40% proportionate interest in the Joint Venture as at
March 31, 2008 and December 31, 2007: April 30, January 31, 2008
2008
-------------------------------------------------------------------------
Current assets $ 118,617 $ 110,199 Long-term assets 663,300 605,300
Current liabilities 47,455 40,631 Long-term liabilities and
participant's account 734,462 674,868 April 30, April 30, Three
months ended: 2008 2007
-------------------------------------------------------------------------
Expenses net of interest income of $0.1 million (2007 - $0.1
million) (a) 33,959 40,101 Cash flows resulting from (used in)
operating activities (27,391) (44,042) Cash flows resulting from
financing activities 89,124 64,272 Cash flows resulting from (used
in) investing activities (64,792) (29,622)
-------------------------------------------------------------------------
(a) The Joint Venture only earns interest income. The Company is
contingently liable for the other participant's portion of the
liabilities of the Joint Venture and to the extent the Company's
participating interest has increased because of the failure of the
other participant to make a cash contribution when required, the
Company would have access to an increased portion of the assets of
the Joint Venture to settle these liabilities. NOTE 6: Intangible
Assets Accum- April January ulated 30, 31, Amortization amorti-
2008 2008 period Cost zation net net
-------------------------------------------------------------------------
Trademark indefinite life $ 112,995 $ - $ 112,995 $ 112,995
Drawings indefinite life 12,365 - 12,365 12,365 Wholesale
distribution network 120 months 5,575 (1,508) 4,067 4,206 Store
leases 65 to 105 months 5,639 (3,080) 2,559 3,062
-------------------------------------------------------------------------
Intangible assets $ 136,574 $ (4,588) $ 131,986 $ 132,628
-------------------------------------------
------------------------------------------- Amortization expense
for the three months ended April 30, 2008 was $0.6 million (2007 -
$0.4 million). NOTE 7: Long-Term Debt April 30, January 31, 2008
2008
-------------------------------------------------------------------------
Credit facilities $ 113,335 $ 125,677 Harry Winston Inc. credit
facilities 181,631 174,850 First mortgage on real property 8,659
8,822
-------------------------------------------------------------------------
Total long-term debt 303,625 309,349
-------------------------------------------------------------------------
Less current portion (63,618) (54,137)
-------------------------------------------------------------------------
$ 240,007 $ 255,212 ---------------------- ----------------------
On February 22, 2008, Harry Winston Inc. entered into a new credit
agreement with a syndicate of banks for a $250.0 million, five-year
revolving credit facility. There are no scheduled repayments
required before maturity. At April 30, 2008, $160.1 million had
been drawn against this secured credit facility, which expires on
March 31, 2013. NOTE 8: Share Capital (a) Authorized Unlimited
common shares without par value. (b) Issued Number of shares Amount
-------------------------------------------------------------------------
Balance, January 31, 2008 58,372,091 $ 305,502 Shares issued for:
Cash 3,000,000 76,039
-------------------------------------------------------------------------
Balance, April 30, 2008 61,372,091 $ 381,541
----------------------- ----------------------- (c) RSU and DSU
Plans RSU Number of units
-------------------------------------------------------------------------
Balance, January 31, 2008 143,715 Awards and payouts during the
period (net): RSU awards 11,172 RSU payouts (2,687)
-------------------------------------------------------------------------
Balance, April 30, 2008 152,200 -----------------------
----------------------- DSU Number of units
-------------------------------------------------------------------------
Balance, January 31, 2008 72,198 Awards during the period (net):
DSU awards 6,839
-------------------------------------------------------------------------
Balance, April 30, 2008 79,037 -----------------------
----------------------- Three Three Months Months Ended Ended April
30, April 30, Expense for the period: 2008 2007
-------------------------------------------------------------------------
RSU $ 509 $ 165 DSU 567 (73)
-------------------------------------------------------------------------
$ 1,076 $ 92 ----------------------- ----------------------- During
the period, the Company granted 11,172 RSUs (net of forfeitures)
and 6,839 DSUs under an employee and director incentive
compensation program, respectively. The RSU and DSU Plans are full
value phantom shares that mirror the value of Harry Winston Diamond
Corporation's publicly traded common shares. Grants under the RSU
Plan are on a discretionary basis to employees of the Company
subject to Board of Director approval. Each RSU grant vests on the
third anniversary of the grant date, subject to special rules for
death and disability. The Company anticipates paying out cash on
maturity of RSUs and DSUs. Only non-executive directors of the
Company are eligible for grants under the DSU Plan. Each DSU grant
vests immediately on the grant date. The expenses related to the
RSUs and DSUs are accrued based on the price of Harry Winston
Diamond Corporation's common shares at the end of the period and on
the probability of vesting. This expense is recognized on a
straight-line basis over the term of vesting. NOTE 9: Commitments
and Guarantees (a) Environmental Agreement Through negotiations of
environmental and other agreements, the Joint Venture must provide
funding for the Environmental Monitoring Advisory Board. The
Company's share of this funding requirement was $0.2 million for
calendar 2008. Further funding will be required in future years;
however, specific amounts have not yet been determined. These
agreements also state the Joint Venture must provide security
deposits for the performance by the Joint Venture of its
reclamation and abandonment obligations under all environmental
laws and regulations. The Company's share of the Joint Venture's
letters of credit outstanding with respect to the environmental
agreements as at April 30, 2008 was $74.8 million. The agreement
specifically provides that these funding requirements will be
reduced by amounts incurred by the Joint Venture on reclamation and
abandonment activities. (b) Participation Agreements The Joint
Venture has signed participation agreements with various native
groups. These agreements are expected to contribute to the social,
economic and cultural well-being of the Aboriginal bands. The
agreements are each for an initial term of twelve years and shall
be automatically renewed on terms to be agreed for successive
periods of six years thereafter until termination. The agreements
terminate in the event the mine permanently ceases to operate. (c)
Commitments Commitments include the cumulative maximum funding
commitments secured by letters of credit of the Joint Venture's
environmental and participation agreements at the Company's 40%
share, before any reduction of future reclamation activities, and
future minimum annual rentals under non-cancellable operating and
capital leases for retail salons and corporate office space, and
are as follows: 2009 $ 93,816 2010 95,028 2011 92,991 2012 91,055
2013 90,650 Thereafter 155,064
---------------------------------------------------------------------
NOTE 10: Employee Benefit Plans Three Three Months Months Ended
Ended April 30, April 30, Expense for the period: 2008 2007
-------------------------------------------------------------------------
Defined benefit pension plan - Harry Winston retail segment $ 411 $
6 Defined contribution plan - Harry Winston retail segment 234 210
Defined contribution plan - Diavik Diamond Mine 212 163
-------------------------------------------------------------------------
$ 857 $ 379 ----------------------- ----------------------- NOTE
11: Related Parties Transactions with related parties for the three
months ended April 30, 2008 include $0.4 million payable of rent
($0.4 million for the three months ended April 30, 2007) relating
to the New York salon, payable to a Harry Winston Inc. employee.
NOTE 12: Capital Management The Company's capital includes cash and
cash equivalents, short-term debt, long-term debt and equity, which
includes issued common shares, contributed surplus and retained
earnings. The Company's primary objective with respect to its
capital management is to ensure that it has sufficient cash
resources to maintain its ongoing operations, to provide returns to
shareholders and benefits for other stakeholders, and to pursue
growth opportunities. To meet these needs, the Company may from
time to time raise additional funds through borrowing and/or the
issuance of equity or debt or by securing strategic partners upon
approval by the Board of Directors. The Board of Directors reviews
and approves any material transactions out of the ordinary course
of business, including proposals on acquisitions or other major
investments or divestitures, as well as annual capital and
operating budgets. The Company is subject to externally imposed
capital requirements related to its senior secured term and
revolving credit facilities, whereby it is required to maintain a
consolidated tangible net worth in excess of $250 million, and
there has been no change with respect to the Company's overall
capital risk management strategy. At April 30, 2008, the Company is
in compliance with this covenant. NOTE 13: Financial Instruments
The Company has various financial instruments comprised of cash and
cash equivalents, cash collateral and cash reserves, accounts
receivable, accounts payable and accrued liabilities, bank advances
and long-term debt. Cash and cash equivalents consist of cash on
hand and balances with banks and short-term investments held in
overnight deposits with a maturity on acquisition of less than 90
days. Cash and cash equivalents are designated as held-for-trading
and are carried at fair value. The fair value of accounts
receivable is determined by the amount of cash anticipated to be
received in the normal course of business from the financial asset.
The carrying values of these financial instruments are as follows:
April 30, 2008 January 31, 2008
-------------------------------------------------------------------------
Estimated Carrying Estimated Carrying Fair Value Value Fair Value
Value
-------------------------------------------------------------------------
Financial Assets: Cash and cash equivalents $ 61,776 $ 61,776 $
49,628 $ 49,628 Cash collateral and cash reserves 33,938 33,938
25,615 25,615 Accounts receivable 23,726 23,726 25,505 25,505
-------------------------------------------------------------------------
$ 119,440 $ 119,440 $ 100,748 $ 100,748
-------------------------------------------------
------------------------------------------------- Financial
Liabilities: Accounts payable and accrued liabilities $ 141,871 $
141,871 $ 124,426 $ 124,426 Bank advances 24,228 24,228 34,928
34,928 Long term debt 303,625 303,625 309,349 309,349
-------------------------------------------------------------------------
$ 469,724 $ 469,724 $ 468,703 $ 468,703
-------------------------------------------------
------------------------------------------------- NOTE 14:
Financial Risk Exposure and Risk Management The Company is exposed
in varying degrees to a variety of financial instrument related
risks by virtue of its activities. The Company's overall financial
risk management program focuses on the preservation of capital and
protecting current and future Company assets and cash flows by
minimizing exposure to risks posed by the uncertainties and
volatilities of financial markets. The Company's Audit Committee
has responsibility to review and discuss significant financial
risks or exposures and assess the steps management has taken to
monitor, control, report and mitigate such risks to the Company.
Financial risk management is carried out by the Finance department,
which identifies and evaluates financial risks and establishes
controls and procedures to ensure financial risks are mitigated.
The types of risk exposure and the way in which such exposures are
managed are as follows: i) Currency Risk The Company's sales are
predominately denominated in US dollars. As the Company operates in
an international environment, some of the Company's financial
instruments and transactions are denominated in currencies other
than the US dollar. The results of the Company's operations are
subject to currency transaction risk and currency translation risk.
From time to time, the Company may use a limited number of
derivative financial instruments to manage its foreign currency
exposure. The operating results and financial position of the
Company are reported in US dollars in the Company's consolidated
financial statements. The Company's primary foreign exchange
exposure impacting pre-tax earnings arises from the following
sources: - Net Canadian dollar-denominated monetary assets and
liabilities. The most significant exposure relates to its Canadian
dollar future income tax liability. The Company's functional and
reporting currency is US dollars; however, the calculation of
income tax expense is based on income in the currency of the
country of origin. As such, the Company is continually subject to
foreign exchange fluctuations, particularly as the Canadian dollar
moves against the US dollar. The weakening/strengthening of the
Canadian dollar versus the US dollar results in an unrealized
foreign exchange gain/loss on the revaluation of the Canadian
dollar denominated future income tax liability. Committed or
anticipated foreign currency denominated transactions, primarily
Canadian dollar costs at the Diavik Diamond Mine. Based on the
Company's net exposure to Canadian dollar monetary assets and
liabilities at April 30, 2008, a one cent change in the exchange
rate would have impacted pre-tax net earnings for the quarter by
$2.8 million. ii) Interest Rate Risk Interest rate risk is the risk
borne by an interest-bearing asset or liability as a result of
fluctuations in interest rates. Financial assets and financial
liabilities with variable interest rates expose the Company to cash
flow interest rate risk. The Company's most significant interest
rate risk arises from its various credit facilities which bear
variable interest based on LIBOR. iii) Concentration of Credit Risk
Credit risk is the risk of a financial loss to the Company if a
customer or counterparty to a financial instrument fails to meet
its contractual obligation. Financial instruments that potentially
subject the company to credit risk consist of trade receivables
from retail segment clients. While economic factors can affect
credit risk, the Company manages risk by providing credit terms on
a case-by-case basis only after a review of the client's financial
position and past credit history. The Company has not experienced
significant losses in the past from its customers. The Company's
exposure to credit risk in the mining segment is minimized by its
ongoing review of customer credit-worthiness. The Company manages
credit risk, in respect of short-term investments, by maintaining
bank accounts with Tier 1 banks and investing only in term deposits
or banker's acceptances with highly- rated financial institutions
that are capable of prompt liquidation. The Company monitors and
manages its concentration of counterparty credit risk on an ongoing
basis. At April 30, 2008, the Company's maximum counterparty credit
exposure consists of the carrying amount of cash and cash
equivalents and accounts receivable, which approximates fair value.
iv) Liquidity Risk Liquidity risk is the risk that the Company will
not be able to meet its financial obligations as they fall due. The
Company manages its liquidity by ensuring that there is sufficient
capital to meet short and long-term business requirements, after
taking into account cash flows from operations and the Company's
holdings of cash and cash equivalents. The Company also strives to
maintain sufficient financial liquidity at all times in order to
participate in investment opportunities as they arise, as well as
to withstand sudden adverse changes in economic circumstances.
Management forecasts cash flows for its current and subsequent
fiscal years to predict future financing requirements. Future
requirements are met through a combination of committed credit
facilities and access to capital markets. At April 30, 2008, the
Company had $61.8 million of cash and cash equivalents and $47.2
million available under credit facilities. The following table
summarizes the aggregate amount of contractual future cash outflows
for the Company's financial liabilities: Less than Year Year After
Total 1 year 2-3 4-5 5 years
-------------------------------------------------------------------------
Accounts payable and accrued liabilities $141,871 $141,871 $ - $ -
$ - Income taxes payable 57,684 57,684 - - - Bank advances 24,228
24,228 - - - Long-term debt(a) 370,557 78,090 84,326 23,281 184,860
Environmental and participation agreements incremental commitments
97,037 76,245 3,972 1,985 14,835 Operating lease obligations
121,030 16,642 28,332 18,029 58,027 Capital lease obligations 2,234
929 1,239 66 -
-------------------------------------------------------------------------
(a) Includes projected interest payments on the current debt
outstanding based on interest rates in effect at April 30, 2008.
NOTE 15: Segmented Information The Company operates in two segments
within the diamond industry, mining and retail, for the three
months ended April 30, 2008. The mining segment consists of the
Company's rough diamond business. This business includes the 40%
interest in the Diavik group of mineral claims and the sale of
rough diamonds in the market-place. The retail segment consists of
the Company's ownership in Harry Winston Inc. This segment consists
of the marketing of fine jewelry and watches on a worldwide basis.
For the three months ended April 30, 2008 Mining Retail Total
-------------------------------------------------------------------------
Revenue Canada $ 81,393 $ - $ 81,393 United States - 24,926 24,926
Europe - 31,630 31,630 Asia - 18,130 18,130 Cost of sales 32,150
40,999 73,149
-------------------------------------------------------------------------
Gross margin 49,243 33,687 82,930 Gross margin (%) 60.5% 45.1%
53.1% Selling, general and administrative expenses 7,208 36,077
43,285
-------------------------------------------------------------------------
Earnings (loss) from operations 42,035 (2,390) 39,645
-------------------------------------------------------------------------
Interest and financing expenses (2,479) (2,974) (5,453) Other
income (expense) 632 (386) 246 Foreign exchange gain 74 81 155
-------------------------------------------------------------------------
Segmented earnings (loss) before income taxes $ 40,262 $ (5,669) $
34,593 --------------------------------------
-------------------------------------- Segmented assets as at April
30, 2008 Canada $ 944,842 $ - $ 944,842 United States - 461,519
461,519 Other foreign countries 18,049 166,321 184,370
-------------------------------------------------------------------------
$ 962,891 $ 627,840 $1,590,731
-------------------------------------------------------------------------
Goodwill as at April 30, 2008 $ - $ 93,780 $ 93,780 Capital
expenditures $ 64,896 $ 3,243 $ 68,139 Other significant non-cash
items: Income tax recovery $ (6,628) $ (1,537) $ (8,165)
Amortization and accretion $ 10,739 $ 3,216 $ 13,955
-------------------------------------------------------------------------
For the three months ended April 30, 2007 Mining Retail Total
-------------------------------------------------------------------------
Revenue Canada $ 82,752 $ - $ 82,752 United States - 24,341 24,341
Europe - 22,347 22,347 Asia - 11,925 11,925 Cost of sales 40,516
30,616 71,132
-------------------------------------------------------------------------
Gross margin 42,236 27,997 70,233 Gross margin (%) 51.0% 47.8%
49.7% Selling, general and administrative expenses 5,087 29,124
34,211
-------------------------------------------------------------------------
Earnings (loss) from operations 37,149 (1,127) 36,022
-------------------------------------------------------------------------
Interest and financing expenses (3,675) (2,457) (6,132) Other
income 766 147 913 Foreign exchange gain (loss) (13,311) 19
(13,292)
-------------------------------------------------------------------------
Segmented earnings (loss) before income taxes $ 20,929 $ (3,418) $
17,511 ---------------------------------------
--------------------------------------- Segmented assets as at
April 30, 2007 Canada $ 735,349 $ - $ 735,349 United States -
464,003 464,003 Other foreign countries 5,542 110,459 116,001
-------------------------------------------------------------------------
$ 740,891 $ 574,462 $1,315,353
-------------------------------------------------------------------------
Goodwill as at April 30, 2007 $ - $ 97,207 $ 97,207 Capital
expenditures $ 29,010 $ 8,556 $ 37,566 Other significant non-cash
items: Income tax recovery $ (2,683) $ (639) $ (3,322) Amortization
and accretion $ 17,690 $ 1,913 $ 19,603
-------------------------------------------------------------------------
Sales to one customer in the mining segment totalled $3.6 million
for the three months ended April 30, 2008 ($4.6 million for the
three months ended April 30, 2007). DATASOURCE: Harry Winston
Diamond Corporation CONTACT: PRNewswire - - 06/04/2008
Copyright