Martinrea International Inc. (TSX : MRE), a diversified and global
automotive supplier engaged in the design, development and
manufacturing of highly engineered, value-added Lightweight
Structures and Propulsion Systems, today announced the release of
its financial results for the second quarter ended June 30, 2023
and declared a quarterly cash dividend of $0.05 per share.
SECOND-QUARTER HIGHLIGHTS
- Total sales of $1,361.1 million, up
22.2% year-over-year and a new quarterly record for the
Company.
- Diluted net earnings per share of
$0.62.
- Operating Income Margin of
6.1%.
- Adjusted EBITDA(1) of $160.6
million, a new quarterly record for the Company.
- Second quarter financial results
were much improved compared to the second quarter of 2022, as
semiconductor and other supply shortages had a more pronounced
impact on prior-year volumes.
- Net debt-to-Adjusted EBITDA(1)
ratio, excluding the impact of IFRS 16, continues to strengthen and
ended the quarter at 1.71x.
- New business awards of
approximately $150 million in annualized sales at mature volumes;
year-to-date new business awards now total $220 million.
- Quarterly cash dividend of $0.05
declared.
OVERVIEW
Pat D’Eramo, President and Chief Executive
Officer, stated: “Our second quarter financial performance was
strong, and an improvement over the prior quarter, with Adjusted
EBITDA(1) setting another quarterly record for the Company. While
challenges from production volatility, supply chain bottlenecks,
cost inflation, and tight labour market conditions are ongoing, the
environment is better than it was last year, and we expect that it
will continue to improve over time. At the same time, we are making
progress on our commercial activity, working to offset inflationary
costs and volume instability that we continue to face. We continue
to expect 2023 to be better year over year, with higher production
volumes, sales, margins and Free Cash Flow(1) compared to 2022. We
are confirming our 2023 outlook, which calls for total sales
(including tooling sales) of $4.8 to $5.0 billion, an Adjusted
Operating Income Margin(1) of 6.0% to 7.0%, and Free Cash Flow(1)
of $150 to $200 million.”
He added: “I am pleased to announce that we have
been awarded new business representing $150 million in annualized
sales at mature volumes, consisting of $90 million in Propulsion
Systems, including $65 million with General Motors as well as
Daimler, Volvo, and others, and $60 million in Lightweight
Structures with Mercedes-Benz and General Motors. Year to date, new
business awards now total $220 million in annualized sales at
mature volumes, which already exceeds the total amount of new wins
in 2022.”
Fred Di Tosto, Chief Financial Officer, stated:
“Sales for the second quarter, excluding tooling sales of $109.9
million, were $1,251.1 million, and Net Earnings per Share(1) was
$0.62. Second quarter Operating Income of $82.4 million increased
over the first quarter, and Adjusted EBITDA(1) of $160.6 million
set a new quarterly record for the Company, as Pat noted. Second
quarter Free Cash Flow(1) turned positive, coming in at $25.4
million, a nice improvement over ($31.6) million in the first
quarter of 2023, driven by higher Adjusted EBITDA(1), lower capex,
and the seasonal increase in working capital in the first quarter
which did not repeat in the second quarter. We expect to generate
an increasing amount of Free Cash Flow(1) in the back half of the
year as our 2023 outlook implies, driven by higher Adjusted
EBITDA(1), positive working capital flows, and significantly lower
cash taxes compared to the first half.”
He continued: “Net Debt(1) declined by
approximately $18 million quarter over quarter, to $937.4 million.
Our Net Debt to Adjusted EBITDA(1) ratio (excluding the impact of
IFRS 16) was 1.71x, down from 1.90x in the first quarter of 2023
and within striking distance of our long-term target of 1.5x or
better. Our leverage ratio should naturally improve in the coming
quarters as we generate an increasing amount of Free Cash
Flow(1).”
Rob Wildeboer, Executive Chairman, stated: “We
are pleased with our performance in the second quarter. Things are
coming together. The overall environment continues to improve, we
are making great progress operationally, our balance sheet is in
good shape, and we are executing on our capital allocation
priorities. We believe the industry is in the early stages of a
period of stability and overall growth in volumes, especially in
North America. The economy is in good shape, unemployment is low,
household balance sheets are strong, and vehicle demand is robust
while inventories remain low. Overall inflation is normalizing,
which should bring with it some normalization in interest rates. I
want to thank the Martinrea team for their dedication and hard work
in delivering another strong quarterly performance.”
He added: “During the quarter, we repurchased
just over 815,000 shares for cancellation under our normal course
issuer bid for a total cost of $10.0 million. The average price
paid per share repurchased in the quarter was approximately $12.30.
We believe an investment in our own company is a good investment,
particularly at the current low valuation. We intend to be active
with our normal course issuer bid again this quarter, following the
end of our blackout period. In addition to share buybacks, we paid
down debt, and paid our usual $0.05 per share quarterly dividend to
our shareholders. With our increasing Free Cash Flow(1) profile, we
anticipate having an increasing amount of flexibility to allocate
capital in the best interest of the Company.”
RESULTS OF OPERATIONS
All amounts in this press release are in
Canadian dollars, unless otherwise stated; and all tabular amounts
are in thousands of Canadian dollars, except earnings per share and
number of shares.
Additional information about the Company,
including the Company’s Management Discussion and Analysis of
Operating Results and Financial Position for the three and six
months ended June 30, 2023 (“MD&A”), the Company’s interim
condensed consolidated financial statements for the three and six
months ended June 30, 2023 (the “interim financial statements”) and
the Company’s Annual Information Form for the year ended December
31, 2022 can be found at www.sedarplus.ca.
OVERALL RESULTS
Results of operations may include certain items
which have been separately disclosed, where appropriate, in order
to provide a clear assessment of the underlying Company results. In
addition to International Financial Reporting Standards ("IFRS")
measures, management uses non-IFRS measures in the Company’s
disclosures that it believes provide the most appropriate basis on
which to evaluate the Company’s results.
The following tables set out certain highlights
of the Company’s performance for the three and six months ended
June 30, 2023 and 2022. Refer to the Company’s interim financial
statements for the three and six months ended June 30, 2023 for a
detailed account of the Company’s performance for the periods
presented in the tables below.
|
Three months ended June 30,
2023 |
|
Three months ended June 30,
2022 |
|
$ Change |
|
% Change |
Sales |
$ |
1,361,055 |
|
|
$ |
1,113,875 |
|
|
247,180 |
|
22.2 |
% |
Gross Margin |
|
173,589 |
|
|
|
125,789 |
|
|
47,800 |
|
38.0 |
% |
Operating Income |
|
82,436 |
|
|
|
45,543 |
|
|
36,893 |
|
81.0 |
% |
Net
Income for the period |
|
49,900 |
|
|
|
25,471 |
|
|
24,429 |
|
95.9 |
% |
Net Earnings per Share - Basic and Diluted |
$ |
0.62 |
|
|
$ |
0.32 |
|
|
0.30 |
|
93.8 |
% |
Non-IFRS Measures* |
|
|
|
|
|
|
|
Adjusted Operating Income |
$ |
82,436 |
|
|
$ |
45,543 |
|
|
36,893 |
|
81.0 |
% |
% of Sales |
|
6.1 |
% |
|
|
4.1 |
% |
|
|
|
|
Adjusted EBITDA |
|
160,612 |
|
|
|
114,292 |
|
|
46,320 |
|
40.5 |
% |
% of Sales |
|
11.8 |
% |
|
|
10.3 |
% |
|
|
|
|
Adjusted Net Income |
|
49,900 |
|
|
|
25,471 |
|
|
24,429 |
|
95.9 |
% |
Adjusted Net Earnings per Share - Basic and Diluted |
$ |
0.62 |
|
|
$ |
0.32 |
|
|
0.30 |
|
93.8 |
% |
|
Six months ended June 30, 2023 |
|
Six months ended June 30, 2022 |
|
$ Change |
|
% Change |
Sales |
$ |
2,664,944 |
|
|
$ |
2,268,913 |
|
|
396,031 |
|
17.5 |
% |
Gross Margin |
|
340,975 |
|
|
|
248,225 |
|
|
92,750 |
|
37.4 |
% |
Operating Income |
|
157,613 |
|
|
|
85,592 |
|
|
72,021 |
|
84.1 |
% |
Net
Income for the period |
|
98,071 |
|
|
|
50,679 |
|
|
47,392 |
|
93.5 |
% |
Net Earnings per Share - Basic and Diluted |
$ |
1.22 |
|
|
$ |
0.63 |
|
|
0.59 |
|
93.7 |
% |
Non-IFRS Measures* |
|
|
|
|
|
|
|
Adjusted Operating Income |
$ |
157,613 |
|
|
$ |
89,829 |
|
|
67,784 |
|
75.5 |
% |
% of Sales |
|
5.9 |
% |
|
|
4.0 |
% |
|
|
|
|
Adjusted EBITDA |
|
313,116 |
|
|
|
226,671 |
|
|
86,445 |
|
38.1 |
% |
% of Sales |
|
11.7 |
% |
|
|
10.0 |
% |
|
|
|
|
Adjusted Net Income |
|
93,497 |
|
|
|
50,313 |
|
|
43,184 |
|
85.8 |
% |
Adjusted Net Earnings per Share - Basic |
$ |
1.17 |
|
|
$ |
0.63 |
|
|
0.54 |
|
85.7 |
% |
Adjusted Net Earnings per Share - Diluted |
$ |
1.16 |
|
|
$ |
0.63 |
|
|
0.53 |
|
84.1 |
% |
*Non-IFRS Measures
The Company prepares its interim financial
statements in accordance with IFRS. However, the Company considers
certain non-IFRS financial measures as useful additional
information in measuring the financial performance and condition of
the Company. These measures, which the Company believes are widely
used by investors, securities analysts and other interested parties
in evaluating the Company’s performance, do not have a standardized
meaning prescribed by IFRS and therefore may not be comparable to
similarly titled measures presented by other publicly traded
companies, nor should they be construed as an alternative to
financial measures determined in accordance with IFRS. Non-IFRS
measures include “Adjusted Net Income”, “Adjusted Net Earnings per
Share (on a basic and diluted basis)”, “Adjusted Operating Income”,
"Adjusted EBITDA”, “Free Cash Flow”, and “Net Debt”.
The following tables provide a reconciliation of
IFRS “Net Income” to Non-IFRS “Adjusted Net Income”, “Adjusted
Operating Income” and “Adjusted EBITDA”:
|
Three months ended June 30,
2023 |
|
|
Three months ended June 30,
2022 |
|
Net Income |
$ |
49,900 |
|
|
$ |
25,471 |
|
Adjustments, after tax* |
|
- |
|
|
|
- |
|
Adjusted Net Income |
$ |
49,900 |
|
|
$ |
25,471 |
|
|
Six months ended June 30, 2023 |
|
|
Six months ended June 30, 2022 |
|
Net Income |
$ |
98,071 |
|
|
$ |
50,679 |
|
Adjustments, after tax* |
|
(4,574 |
) |
|
|
(366 |
) |
Adjusted Net Income |
$ |
93,497 |
|
|
$ |
50,313 |
|
*Adjustments are explained in the "Adjustments
to Net Income" section of this Press Release
|
Three months ended June 30,
2023 |
|
|
Three months ended June 30,
2022 |
|
Net Income |
$ |
49,900 |
|
|
$ |
25,471 |
|
Income tax expense |
|
11,630 |
|
|
|
8,907 |
|
Other finance expense
(income) |
|
568 |
|
|
|
(1,446 |
) |
Share of loss of equity
investments |
|
652 |
|
|
|
1,265 |
|
Finance expense |
|
19,686 |
|
|
|
11,346 |
|
Adjustments, before tax* |
|
- |
|
|
|
- |
|
Adjusted Operating Income |
$ |
82,436 |
|
|
$ |
45,543 |
|
Depreciation of property, plant and equipment and right-of-use
assets |
|
75,532 |
|
|
|
66,233 |
|
Amortization of development
costs |
|
2,670 |
|
|
|
2,598 |
|
Gain on
disposal of property, plant and equipment |
|
(26 |
) |
|
|
(82 |
) |
Adjusted EBITDA |
$ |
160,612 |
|
|
$ |
114,292 |
|
|
Six months ended June 30, 2023 |
|
|
Six months ended June 30, 2022 |
|
Net Income |
$ |
98,071 |
|
|
$ |
50,679 |
|
Income tax expense |
|
23,709 |
|
|
|
17,127 |
|
Other finance expense
(income) |
|
344 |
|
|
|
(1,130 |
) |
Share of loss of equity
investments |
|
2,030 |
|
|
|
2,366 |
|
Finance expense |
|
38,732 |
|
|
|
20,600 |
|
Adjustments, before tax* |
|
(5,273 |
) |
|
|
187 |
|
Adjusted Operating Income |
$ |
157,613 |
|
|
$ |
89,829 |
|
Depreciation of property, plant and equipment and right-of-use
assets |
|
150,204 |
|
|
|
131,605 |
|
Amortization of development
costs |
|
5,283 |
|
|
|
5,319 |
|
Loss
(gain) on disposal of property, plant and equipment |
|
16 |
|
|
|
(82 |
) |
Adjusted EBITDA |
$ |
313,116 |
|
|
$ |
226,671 |
|
*Adjustments are explained in the "Adjustments
to Net Income" section of this Press Release
SALES
Three months ended June 30,
2023 to three months ended June
30, 2022 comparison
|
Three months ended June 30,
2023 |
|
|
Three months ended June 30,
2022 |
|
|
$ Change |
|
|
% Change |
North America |
$ |
1,047,067 |
|
|
$ |
826,724 |
|
|
220,343 |
|
|
26.7 |
% |
Europe |
|
288,023 |
|
|
|
255,832 |
|
|
32,191 |
|
|
12.6 |
% |
Rest of the World |
|
36,566 |
|
|
|
38,673 |
|
|
(2,107 |
) |
|
(5.4 |
%) |
Eliminations |
|
(10,601 |
) |
|
|
(7,354 |
) |
|
(3,247 |
) |
|
(44.2 |
%) |
Total Sales |
$ |
1,361,055 |
|
|
$ |
1,113,875 |
|
|
247,180 |
|
|
22.2 |
% |
The Company’s consolidated sales for the second
quarter of 2023 increased by $247.2 million or 22.2% to $1,361.1
million as compared to $1,113.9 million for the second quarter of
2022. The total increase in sales was driven by year-over-year
increases in the North America and Europe operating segments,
partially offset by a year-over-year decrease in the Rest of the
World.
Sales for the second quarter of 2023 in the
Company’s North America operating segment increased by $220.3
million or 26.7% to $1,047.1 million from $826.7 million for the
second quarter of 2022. The increase was due generally to the
launch and ramp up of new programs during or subsequent to the
second quarter of 2022, including Mercedes' new electric vehicle
platform (EVA2), General Motors' new electric vehicle platform
(BEV3), and a Toyota/Lexus SUV; overall higher second quarter OEM
light vehicle production volumes, which increased in North America
by approximately 15% year-over-year, primarily as a result of the
industry-wide supply chain disruptions which impacted 2022 to a
greater degree compared to 2023; the impact of foreign exchange on
the translation of U.S. denominated production sales, which had a
positive impact on overall sales for the second quarter of 2023 of
$53.8 million as compared to the second quarter of 2022; the impact
of commercial settlements (to partially offset inflationary cost
increases) on customer pricing and sales; and an increase in
tooling sales of $43.7 million, which are typically dependent on
the timing of tooling construction and final acceptance by the
customer. These positive factors were partially offset by lower
year-over year-production volumes of certain light vehicle
platforms including the GM Equinox/Terrain, Ford Mustang Mach E,
and Lucid Air.
Sales for the second quarter of 2023 in the
Company’s Europe operating segment increased by $32.2 million or
12.6% to $288.0 million from $255.8 million for the second quarter
of 2022. The increase was due generally to the launch and ramp up
of new programs, including Mercedes' new electric vehicle platform
(EVA2); overall higher second quarter OEM light vehicle production
volumes, which increased in Europe by approximately 14%
year-over-year, primarily as a result of the industry-wide supply
chain disruptions which impacted 2022 to a greater degree compared
to 2023; the impact of foreign exchange on the translation of Euro
denominated production sales, which had a positive impact on
overall sales for the second quarter of 2023 of $16.8 million as
compared to the second quarter of 2022; the impact of commercial
settlements (to partially offset inflationary cost increases) on
customer pricing and sales; and a $4.9 million increase in tooling
sales. These positive factors were partially offset by lower
year-over year-production volumes of certain platforms, namely the
Lucid Air and an engine block for Ford.
Sales for the second quarter of 2023 in the
Company’s Rest of the World operating segment decreased by $2.1
million or 5.4% to $36.6 million from $38.7 million in the second
quarter of 2022. The decrease was largely driven by lower
year-over-year production volumes on Geely's new electric vehicle
platform (PMA); partially offset by higher production volumes with
General Motors and Mercedes, and an increase in tooling sales of
$1.0 million.
Overall tooling sales increased by $48.7 million
(including outside segment sales eliminations) to $109.9 million
for the second quarter of 2023 from $61.2 million for the second
quarter of 2022.
Six months ended June 30, 2023
to six months ended June 30, 2022
comparison
|
Six months ended June 30, 2023 |
|
Six months ended June 30, 2022 |
|
$ Change |
|
|
% Change |
North America |
$ |
2,021,059 |
|
|
$ |
1,686,424 |
|
|
334,635 |
|
|
19.8 |
% |
Europe |
|
591,493 |
|
|
|
517,294 |
|
|
74,199 |
|
|
14.3 |
% |
Rest of the World |
|
70,448 |
|
|
|
78,426 |
|
|
(7,978 |
) |
|
(10.2 |
%) |
Eliminations |
|
(18,056 |
) |
|
|
(13,231 |
) |
|
(4,825 |
) |
|
(36.5 |
%) |
Total Sales |
$ |
2,664,944 |
|
|
$ |
2,268,913 |
|
|
396,031 |
|
|
17.5 |
% |
The Company’s consolidated sales for the six
months ended June 30, 2023 increased by $396.0 million or 17.5% to
$2,664.9 million as compared to $2,268.9 million for the six months
ended June 30, 2022. The total increase in sales was driven by
year-over-year increases in the North America and Europe operating
segments, partially offset by a decrease in sales in the Rest of
the World.
Sales for the six months ended June 30, 2023 in
the Company’s North America operating segment increased by $334.6
million or 19.8% to $2,021.1 million from $1,686.4 million for the
six months ended June 30, 2022. The increase was due generally to
the launch and ramp up of new programs, including Mercedes' new
electric vehicle platform (EVA2), General Motors' new electric
vehicle platform (BEV3), and a Toyota/Lexus SUV; overall higher OEM
light vehicle production volumes during the first six months of the
year, which increased in North America by approximately 12%
year-over-year, primarily as a result of the industry-wide supply
chain disruptions which impacted 2022 to a greater degree compared
to 2023; the impact of foreign exchange on the translation of U.S.
denominated production sales, which had a positive impact on
overall sales for the six months ended June 30, 2023 of $100.0
million as compared to the corresponding period of 2022; the impact
of material passthrough and commercial settlements (to partially
offset inflationary cost increases) on customer pricing and sales;
and an increase in tooling sales of $59.9 million, which are
typically dependent on the timing of tooling construction and final
acceptance by the customer. These positive factors were partially
offset by lower year-over-year production volumes of certain light
vehicle platforms including the GM Equinox/Terrain, Ford Mustang
Mach E and Lucid Air.
Sales for the six months ended June 30, 2023 in
the Company’s Europe operating segment increased by $74.2 million
or 14.3% to $591.5 million from $517.3 million for the six months
ended June 30, 2022. The increase can be attributed to the launch
and ramp up of new programs, including Mercedes' new electric
vehicle platform (EVA2); overall higher OEM light vehicle
production volumes during the first six months of the year, which
increased in Europe by approximately 16% year-over-year, primarily
as a result of the industry-wide supply chain disruptions which
impacted 2022 to a greater degree compared to 2023; the impact of
foreign exchange on the translation of Euro denominated production
sales, which had a positive impact on overall sales for the six
months ended June 30, 2023 of $18.2 million as compared to the
corresponding period of 2022; and the impact of material
passthrough and commercial settlements (to partially offset
inflationary cost increases) on customer pricing and sales. These
positive factors were partially offset by lower year-over
year-production volumes of certain platforms, namely the Lucid Air
and an engine block for Ford; and a $1.0 million decrease in
tooling sales.
Sales for the six months ended June 30, 2023 in
the Company’s Rest of the World operating segment decreased by $8.0
million or 10.2% to $70.4 million from $78.4 million for the six
months ended June 30, 2022. The decrease was largely driven by
lower year-over-year production volumes on Geely's new electric
vehicle platform (PMA) and with Jaguar Land Rover; partially offset
by an increase in tooling sales of $2.0 million.
Overall tooling sales increased by $60.4 million
(including outside segment sales eliminations) to $174.3 million
for the six months ended June 30, 2023 from $113.9 million for the
six months ended June 30, 2022.
GROSS MARGIN
Three months ended June
30, 2023 to three months ended
June 30, 2022 comparison
|
Three months ended June 30,
2023 |
|
Three months ended June 30,
2022 |
|
$ Change |
|
% Change |
Gross margin |
$ |
173,589 |
|
|
$ |
125,789 |
|
|
47,800 |
|
38.0 |
% |
% of
Sales |
|
12.8 |
% |
|
|
11.3 |
% |
|
|
|
|
The gross margin percentage for the second
quarter of 2023 of 12.8% increased as a percentage of sales by 1.5%
as compared to the gross margin percentage for the second quarter
of 2022 of 11.3%. The increase in gross margin as a percentage of
sales was generally due to overall higher production sales volume
and corresponding higher utilization of assets, and productivity
and efficiency improvements at certain operating facilities. These
factors were partially offset by operational inefficiencies at
certain operating facilities, and a negative sales mix. Overall
market related inflationary pressures on labour, material and
energy costs, along with offsetting commercial settlements, were
generally stable for the quarter on a year-over-year basis.
Gross margin for the second quarter of 2023
continued to be impacted by production inefficiencies related to
the industry-wide supply chain disruptions driven by the
unpredictability of customer production schedules, although the
stability of OEM production volumes has improved
year-over-year.
Six months ended June 30, 2023
to six months ended June 30, 2022
comparison
|
Six months ended June 30, 2023 |
|
Six months ended June 30, 2022 |
|
$ Change |
|
% Change |
Gross margin |
$ |
340,975 |
|
|
$ |
248,225 |
|
|
92,750 |
|
37.4 |
% |
% of
Sales |
|
12.8 |
% |
|
|
10.9 |
% |
|
|
|
|
The gross margin percentage for the six months
ended June 30, 2023 of 12.8% increased as a percentage of sales by
1.9% as compared to the gross margin percentage for the six months
ended June 30, 2022 of 10.9%. The increase in gross margin as a
percentage of sales was generally due to:
- overall higher
production sales volume and corresponding higher utilization of
assets;
- favourable
commercial settlements; and
- productivity and
efficiency improvements at certain operating facilities.
These factors were partially offset by:
- higher labour,
material and energy costs;
- operational
inefficiencies at certain operating facilities;
- a negative sales
mix; and
- the impact of
material passthrough on customer pricing.
Gross margin for the six months ended June 30,
2023 continued to be impacted by production inefficiencies related
to the industry-wide supply chain disruptions driven by the
unpredictability of customer production schedules, although the
stability of OEM production volumes has improved
year-over-year.
ADJUSTMENTS TO NET INCOME
Adjusted Net Income excludes certain items as
set out in the following table and described in the notes thereto.
Management uses Adjusted Net Income as a measurement of operating
performance of the Company and believes that, in conjunction with
IFRS measures, it provides useful information about the financial
performance and condition of the Company.
TABLE A
Three months ended June
30, 2023 to three months ended
June 30, 2022 comparison
No adjustments were noted during the three
months ended June 30, 2023 and 2022.
TABLE B
Six months ended June 30, 2023
to six months ended June 30, 2022
comparison
|
Six months ended June 30, 2023 |
|
Six months ended June 30, 2022 |
|
$ Change |
NET INCOME |
$ |
98,071 |
|
|
$ |
50,679 |
|
|
$ |
47,392 |
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
Net gain on disposal of equity
investments (1) |
|
(5,273 |
) |
|
|
- |
|
|
|
(5,273 |
) |
Gain on dilution of equity
investments (2) |
|
- |
|
|
|
(4,050 |
) |
|
|
4,050 |
|
Restructuring costs (3) |
|
- |
|
|
|
4,237 |
|
|
|
(4,237 |
) |
ADJUSTMENTS, BEFORE TAX |
$ |
(5,273 |
) |
|
$ |
187 |
|
|
$ |
(5,460 |
) |
|
|
|
|
|
|
Tax impact of adjustments |
|
699 |
|
|
|
(553 |
) |
|
|
1,252 |
|
ADJUSTMENTS, AFTER TAX |
$ |
(4,574 |
) |
|
$ |
(366 |
) |
|
$ |
(4,208 |
) |
|
|
|
|
|
|
ADJUSTED NET INCOME |
$ |
93,497 |
|
|
$ |
50,313 |
|
|
$ |
43,184 |
|
|
|
|
|
|
|
Number of Shares Outstanding –
Basic (‘000) |
|
80,241 |
|
|
|
80,370 |
|
|
|
Adjusted Basic Net Earnings
Per Share |
$ |
1.17 |
|
|
$ |
0.63 |
|
|
|
Number of Shares Outstanding –
Diluted (‘000) |
|
80,293 |
|
|
|
80,370 |
|
|
|
Adjusted Diluted Net Earnings Per Share |
$ |
1.16 |
|
|
$ |
0.63 |
|
|
|
(1) Net gain
on disposal of equity investmentsOn March 24, 2023,
Martinrea sold its equity interest in VoltaXplore Inc.
("VoltaXplore) to NanoXplore Inc. ("NanoXplore") for 3,420,406
common shares of NanoXplore at $2.92 per share representing an
aggregate consideration of $10.0 million. The sale transaction
resulted in a gain on disposal of equity investments during the
first quarter of 2023 as follows:
Gross gain (Total consideration of $10.0 million less book value of
investment) |
$ |
6,821 |
|
Less:
gain attributable to indirect retained interest |
|
(1,548 |
) |
Net gain on disposal of equity investments |
$ |
5,273 |
|
Subsequent to this transaction, the Company no
longer holds a direct equity interest in VoltaXplore while its
equity ownership interest in NanoXplore increased from 21.1% to
22.7%.
(2) Gain on
dilution of equity investmentsAs at December 31, 2021, the
Company held 35,045,954 common shares of NanoXplore representing a
22.2% equity interest in NanoXplore (on a non-diluted basis). On
February 24, 2022, NanoXplore closed a bought deal public offering
of 6,522,000 common shares from treasury at a price of $4.60 per
common share for aggregate gross proceeds of $30.0 million. Upon
finalization of the transaction, the Company’s net ownership
interest decreased to 21.2% from 22.2%. This dilution resulted in a
deemed disposition of a portion of the Company’s ownership interest
in NanoXplore, resulting in a gain on dilution of $4.1 million
during the first quarter of 2022.
(3) Restructuring
costsAdditions to the restructuring provision during the
six months ended June 30, 2022 totaled $4.2 million and represent
employee-related severance resulting from the rightsizing of
operations in Canada related to the cancellation of an OEM light
vehicle platform well before the end of its expected life
cycle.
NET INCOME
Three months ended June 30,
2023 to three months ended June
30, 2022 comparison
|
Three months ended June 30,
2023 |
|
Three months ended June 30,
2022 |
|
$ Change |
|
% Change |
Net Income |
$ |
49,900 |
|
$ |
25,471 |
|
24,429 |
|
95.9 |
% |
Net Earnings per Share |
|
|
|
|
|
|
|
Basic and Diluted |
$ |
0.62 |
|
$ |
0.32 |
|
|
|
|
Net Income for the second quarter of 2023
increased by $24.4 million to $49.9 million or $0.62 per share, on
a basic and diluted basis, from a Net Income of $25.5 million or
$0.32 per share, on a basic and diluted basis, for the second
quarter of 2022.
Net Income for the second quarter of 2023, as
compared to the second quarter of 2022, was positively impacted by
the following:
- higher gross
margin on higher year-over-year sales volume as previously
explained; and
- a lower effective tax rate (18.9%
for the second quarter of 2023 compared to 25.9% for the second
quarter of 2022).
These factors were partially offset by the
following:
-
a year-over-year increase in SG&A expense, as previously
explained;
- an $8.3 million
year-over-year increase in finance expense as a result of increased
debt levels and borrowing rates on the Company's revolving bank
debt; and
- a net foreign
exchange loss of $0.7 million for the second quarter of 2023
compared to a gain of $1.2 million for the second quarter of
2022.
Six months ended June 30, 2023
to six months ended June 30, 2022
comparison
|
Six months ended June 30, 2023 |
|
Six months ended June 30, 2022 |
|
$ Change |
|
% Change |
Net Income |
$ |
98,071 |
|
$ |
50,679 |
|
47,392 |
|
93.5 |
% |
Adjusted Net Income |
|
93,497 |
|
|
50,313 |
|
43,184 |
|
85.8 |
% |
Net Earnings per Share |
|
|
|
|
|
|
|
Basic and Diluted |
$ |
1.22 |
|
$ |
0.63 |
|
|
|
|
Adjusted Net Earnings per
Share |
|
|
|
|
|
|
|
Basic |
$ |
1.17 |
|
$ |
0.63 |
|
|
|
|
Diluted |
$ |
1.16 |
|
$ |
0.63 |
|
|
|
|
Net Income, before adjustments, for the six
months ended June 30, 2023 increased by $47.4 million to $98.1
million or $1.22 per share, on a basic and diluted basis, from a
Net Income of $50.7 million or $0.63 per share, on a basic and
diluted basis, for the six months ended June 30, 2022. Excluding
the adjustments explained in Table B under “Adjustments to Net
Income”, Adjusted Net Income for the six months ended June 30, 2023
increased by $43.2 million to $93.5 million or $1.17 per share on a
basic basis, and $1.16 on a diluted basis, from $50.3 million or
$0.63 per share, on a basic and diluted basis, for the six months
ended June 30, 2022.
Adjusted Net Income for the six months ended
June 30, 2023, as compared to the six months ended June 30, 2022,
was positively impacted by the following:
- higher gross
margin on higher year-over-year sales volume as previously
explained; and
- a lower effective tax rate (19.8%
for the six months ended June 30, 2023 compared to 26.0% for the
six months ended June 30, 2022).
These factors were partially offset by the
following:
- a year-over-year
increase in SG&A expense, as previously explained;
- an $18.1 million
year-over-year increase in finance expense as a result of increased
debt levels and borrowing rates on the Company's revolving bank
debt; and
- a net foreign
exchange loss of $0.6 million for the six months ended June 30,
2023 compared to a gain of $0.9 million for the six months ended
June 30, 2022.
DIVIDEND
A cash dividend of $0.05 per share has been
declared by the Board of Directors payable to shareholders of
record on September 30, 2023, on or about October 15, 2023.
ABOUT MARTINREA INTERNATIONAL
INC.
Martinrea is a diversified and global automotive
supplier engaged in the design, development and manufacturing of
highly engineered, value-added Lightweight Structures and
Propulsion Systems. Martinrea operates in 58 locations in Canada,
the United States, Mexico, Brazil, Germany, Slovakia, Spain, China,
South Africa and Japan. Martinrea’s vision is making lives better
by being the best supplier we can be in the products we make and
the services we provide. For more information on Martinrea, please
visit www.martinrea.com. Follow Martinrea on Twitter and
Facebook.
CONFERENCE CALL DETAILS
A conference call to discuss the financial
results will be held on Wednesday, August 9, 2023 at 6:00 p.m.
Eastern Time. To participate, please dial 416-641-6104 (Toronto
area) or 800-952-5114 (toll free Canada and US) and enter
participant code 8029740#. Please call 10 minutes prior to the
start of the conference call.
The webcast and accompanying presentation can be
accessed at:
https://www.martinrea.com/investor-relations/events-presentations/
There will also be a rebroadcast of the call
available by dialing 905-694-9451 or toll free 800-408-3053
(Conference ID – 5701857#). The rebroadcast will be available until
September 10, 2023.
If you have any teleconferencing questions,
please call Ganesh Iyer at 416-749-0314.
FORWARD-LOOKING INFORMATION
Special Note Regarding Forward-Looking
Statements
This Press Release and the documents
incorporated by reference therein contains forward-looking
statements within the meaning of applicable Canadian securities
laws including those related to the Company’s expectations as to,
or its views or beliefs in or on, the impact of, or duration of, or
factors affecting, or expected response to, or growth of,
improvements in, expansion of and/or guidance or outlook (including
for 2023) as to future results, revenue, sales, margin, gross
margin, earnings, and earnings per share, adjusted earnings per
share, free cash flow, volumes, adjusted net earnings per share,
operating income margins, operating margins, adjusted operating
income margins, leverage ratios, net debt to adjusted EBITDA(1),
debt repayment, Adjusted EBITDA(1), capex levels, working capital
levels, cash tax levels, progress on commercial negotiations, the
growth of the Company and pursuit of, and belief in, its
strategies, its near and long-term potential growth and continued
improvement in results, the strength, recovery and growth of the
automotive industry and continuing challenges, including ongoing,
or expectation for improvements in, supply chain issues or
disruptions, inflation, labour market conditions, production
volatility, the ramping up and launching of new business; the
continued investments in its business and technologies; the
opportunity to increase sales; the ability to finance future
capital expenditures, working capital, debt obligations and other
commitments; intentions to purchase under the normal course issuer
bid; the Company’s views on its liquidity, operating cash flow and
leverage ratios and ability to deal with present or future economic
conditions, the potential for fluctuation of operating results, and
the payment of dividends as well as other forward-looking
statements. The words “continue”, “expect”, “anticipate”,
“estimate”, “may”, “will”, “should”, “views”, “intend”, “believe”,
“plan” and similar expressions are intended to identify
forward-looking statements. Forward-looking statements are based on
estimates and assumptions made by the Company in light of its
experience and its perception of historical trends, current
conditions and expected future developments, as well as other
factors that the Company believes are appropriate in the
circumstances, such as expected sales and industry production
estimates, current foreign exchange rates, timing of product
launches and operational improvement during the period, and current
Board approved budgets. Many factors could cause the Company’s
actual results, performance or achievements to differ materially
from those expressed or implied by the forward-looking statements,
including, without limitation, the following factors, some of which
are discussed in detail in the Company’s AIF and MD&A for the
year ended December 31, 2022, and other public filings which can be
found at www.sedarplus.ca:
- North American and
Global Economic and Political Conditions and Consumer
Confidence;
- Automotive Industry Risks;
- Pandemics and Epidemics (including
the ongoing COVID-19 Pandemic), Force Majeure Events, Natural
Disasters, Terrorist Activities, Political and Civil Unrest, and
Other Outbreaks;
- COVID-19
Pandemic;
- Russian Invasion of
Ukraine;
- Semiconductor Chip Shortages and
Price Increases;
- Inflationary
Pressures;
- Regional Energy Shortages;
- Dependence Upon Key Customers;
- Customer Consolidation and
Cooperation;
- Emergence of Potentially Disruptive
EV
OEMs;
- Outsourcing and Insourcing
Trends;
- Financial Viability of Suppliers
and Key Suppliers and Supply
Disruptions;
-
Competition;
- Customer Pricing Pressures,
Contractual Arrangements, Cost and Risk Absorption and Purchase
Orders;
- Material and Commodity Prices and
Volatility;
- Scrap Steel/Aluminum Price
Volatility;
- Quote/Pricing
Assumptions;
- Launch and Operational Costs and
Cost Structure;
- Fluctuations in Operating
Results;
- Product Warranty,
Repair/Replacement Costs, Recall, Product Liability and Liability
Risk;
- Product Development and
Technological
Change;
- A Shift Away from Technologies in
Which the Company is
Investing;
- Dependence Upon Key
Personnel;
- Limited Financial
Resources/Uncertainty of Future
Financing/Banking;
- Cybersecurity
Threats;
-
Acquisitions;
- Joint
Ventures;
- Private or Public Equity
Investments in Technology Companies;
- Potential Tax
Exposures;
- Potential Rationalization Costs,
Turnaround Costs and Impairment
Charges;
- Labour Relations
Matters;
- Trade Restrictions or
Disputes;
- Changes in Laws and Governmental
Regulations;
- Environmental Regulation and
Climate
Change;
- Litigation and Regulatory
Compliance and
Investigations;
- Risks of Conducting Business in
Foreign Countries, Including China, Brazil and Other Growing
Markets;
- Currency
Risk;
- Internal Controls Over Financial
Reporting and Disclosure Controls and Procedures;
- Loss of Use of Key Manufacturing
Facilities;
- Intellectual Property;
- Availability of Consumer Credit or
Cost of Borrowing;
- Evolving Business Risk
Profile;
- Competition with Low Cost
Countries;
- The Company’s Ability to Shift its
Manufacturing Footprint to Take Advantage of Opportunities in
Growing Markets;
- Change in the Company’s Mix of
Earnings Between Jurisdictions with Lower Tax Rates and Those with
Higher Tax
Rates;
- Pension Plans and Other
Post-Employment Benefits;
- Potential Volatility of Share
Prices;
- Dividends; and
- Lease Obligations.
These factors should be considered carefully,
and readers should not place undue reliance on the Company’s
forward-looking statements. The Company has no intention and
undertakes no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, except as required by law.
The common shares of Martinrea trade on The
Toronto Stock Exchange under the symbol “MRE”.
For further information, please contact:
Fred Di TostoChief Financial OfficerMartinrea
International Inc.3210 Langstaff RoadVaughan, Ontario L4K
5B2Tel: 416-749-0314Fax:
289-982-3001
1 The Company prepares its financial statements
in accordance with International Financial Reporting Standards
(“IFRS”). However, the Company considers certain non-IFRS financial
measures as useful additional information in measuring the
financial performance and condition of the Company. These measures,
which the Company believes are widely used by investors, securities
analysts and other interested parties in evaluating the Company’s
performance, do not have a standardized meaning prescribed by IFRS
and therefore may not be comparable to similarly titled measures
presented by other publicly traded companies, nor should they be
construed as an alternative to financial measures determined in
accordance with IFRS. Non-IFRS measures, included anywhere in this
press release, include “Adjusted Net Income”, “Adjusted Net
Earnings per Share (on a basic and diluted basis)”, “Adjusted
Operating Income”, "Adjusted EBITDA”, “Free Cash Flow” and “Net
Debt”. The relevant IFRS financial measure, as applicable, and a
reconciliation of certain non-IFRS financial measures to measures
determined in accordance with IFRS are contained in the Company’s
Management Discussion and Analysis for the three and six months
ended June 30, 2023 and in this press release.
Martinrea International Inc.Interim Condensed
Consolidated Balance Sheets(in thousands of Canadian dollars)
(unaudited) |
|
Note |
June 30, 2023 |
|
December 31, 2022 |
|
ASSETS |
|
|
|
Cash and cash equivalents |
|
$ |
145,755 |
|
$ |
161,655 |
|
Trade and other
receivables |
2 |
|
902,455 |
|
|
789,931 |
|
Inventories |
3 |
|
656,123 |
|
|
665,316 |
|
Prepaid expenses and
deposits |
|
|
30,296 |
|
|
36,237 |
|
Income
taxes recoverable |
|
|
18,099 |
|
|
6,454 |
|
TOTAL CURRENT ASSETS |
|
|
1,752,728 |
|
|
1,659,593 |
|
Property, plant and equipment |
4 |
|
1,928,478 |
|
|
1,948,773 |
|
Right-of-use assets |
5 |
|
242,727 |
|
|
254,065 |
|
Deferred tax assets |
|
|
193,054 |
|
|
166,680 |
|
Intangible assets |
|
|
43,707 |
|
|
45,916 |
|
Investments |
6 |
|
60,083 |
|
|
55,858 |
|
Pension
assets |
|
|
15,459 |
|
|
12,234 |
|
TOTAL NON-CURRENT ASSETS |
|
|
2,483,508 |
|
|
2,483,526 |
|
TOTAL ASSETS |
|
$ |
4,236,236 |
|
$ |
4,143,119 |
|
|
|
|
|
LIABILITIES |
|
|
|
Trade and other payables |
|
$ |
1,353,075 |
|
$ |
1,315,380 |
|
Provisions |
7 |
|
5,769 |
|
|
7,906 |
|
Income taxes payable |
|
|
35,292 |
|
|
39,216 |
|
Current portion of long-term
debt |
8 |
|
15,374 |
|
|
16,198 |
|
Current
portion of lease liabilities |
9 |
|
45,029 |
|
|
43,665 |
|
TOTAL CURRENT LIABILITIES |
|
|
1,454,539 |
|
|
1,422,365 |
|
Long-term debt |
8 |
|
1,067,787 |
|
|
1,054,170 |
|
Lease liabilities |
9 |
|
217,020 |
|
|
229,455 |
|
Pension and other
post-retirement benefits |
|
|
41,585 |
|
|
41,912 |
|
Deferred tax liabilities |
|
|
26,485 |
|
|
18,312 |
|
TOTAL NON-CURRENT LIABILITIES |
|
|
1,352,877 |
|
|
1,343,849 |
|
TOTAL LIABILITIES |
|
|
2,807,416 |
|
|
2,766,214 |
|
|
|
|
|
EQUITY |
|
|
|
Capital stock |
11 |
|
657,271 |
|
|
663,646 |
|
Contributed surplus |
|
|
45,682 |
|
|
45,558 |
|
Accumulated other
comprehensive income |
|
|
93,020 |
|
|
124,065 |
|
Retained earnings |
|
|
632,847 |
|
|
543,636 |
|
TOTAL EQUITY |
|
|
1,428,820 |
|
|
1,376,905 |
|
TOTAL LIABILITIES AND EQUITY |
|
$ |
4,236,236 |
|
$ |
4,143,119 |
|
Contingencies (note
16)
See accompanying notes to the interim condensed consolidated
financial statements.
On behalf of the Board:
“Robert Wildeboer” |
Director |
|
“Terry Lyons” |
Director |
|
Martinrea International Inc.Interim Condensed
Consolidated Statements of Operations(in thousands of Canadian
dollars, except per share amounts) (unaudited) |
|
Note |
Three months endedJune 30,
2023 |
Three months endedJune 30,
2022 |
Six months ended June 30,
2023 |
Six months ended June 30,
2022 |
|
|
|
|
|
|
SALES |
|
$ |
1,361,055 |
|
$ |
1,113,875 |
|
$ |
2,664,944 |
|
$ |
2,268,913 |
|
|
|
|
|
|
|
Cost of sales (excluding
depreciation of property, plant and equipment and right-of-use
assets) |
|
|
(1,116,313 |
) |
|
(925,762 |
) |
|
(2,182,510 |
) |
|
(1,896,707 |
) |
Depreciation of property, plant and equipment and right-of-use
assets (production) |
|
|
(71,153 |
) |
|
(62,324 |
) |
|
(141,459 |
) |
|
(123,981 |
) |
Total cost of sales |
|
|
(1,187,466 |
) |
|
(988,086 |
) |
|
(2,323,969 |
) |
|
(2,020,688 |
) |
GROSS MARGIN |
|
|
173,589 |
|
|
125,789 |
|
|
340,975 |
|
|
248,225 |
|
|
|
|
|
|
|
Research and development
costs |
|
|
(9,351 |
) |
|
(8,289 |
) |
|
(18,629 |
) |
|
(17,401 |
) |
Selling, general and
administrative |
|
|
(77,449 |
) |
|
(68,130 |
) |
|
(155,972 |
) |
|
(133,453 |
) |
Depreciation of property,
plant and equipment and right-of-use assets (non-production) |
|
|
(4,379 |
) |
|
(3,909 |
) |
|
(8,745 |
) |
|
(7,624 |
) |
Gain (loss) on disposal of
property, plant and equipment |
|
|
26 |
|
|
82 |
|
|
(16 |
) |
|
82 |
|
Restructuring costs |
|
|
- |
|
|
- |
|
|
- |
|
|
(4,237 |
) |
OPERATING INCOME |
|
|
82,436 |
|
|
45,543 |
|
|
157,613 |
|
|
85,592 |
|
|
|
|
|
|
|
Share of loss of equity
investments |
6 |
|
(652 |
) |
|
(1,265 |
) |
|
(2,030 |
) |
|
(2,366 |
) |
Net gain on disposal of equity
investments |
6 |
|
- |
|
|
- |
|
|
5,273 |
|
|
- |
|
Gain on dilution of equity
investments |
6 |
|
- |
|
|
- |
|
|
- |
|
|
4,050 |
|
Finance expense |
13 |
|
(19,686 |
) |
|
(11,346 |
) |
|
(38,732 |
) |
|
(20,600 |
) |
Other
finance income (expense) |
13 |
|
(568 |
) |
|
1,446 |
|
|
(344 |
) |
|
1,130 |
|
INCOME BEFORE INCOME TAXES |
|
|
61,530 |
|
|
34,378 |
|
|
121,780 |
|
|
67,806 |
|
|
|
|
|
|
|
Income
tax expense |
10 |
|
(11,630 |
) |
|
(8,907 |
) |
|
(23,709 |
) |
|
(17,127 |
) |
NET INCOME FOR THE
PERIOD |
|
$ |
49,900 |
|
$ |
25,471 |
|
$ |
98,071 |
|
$ |
50,679 |
|
|
|
|
|
|
|
Basic earnings per share |
12 |
$ |
0.62 |
|
$ |
0.32 |
|
$ |
1.22 |
|
$ |
0.63 |
|
Diluted
earnings per share |
12 |
$ |
0.62 |
|
$ |
0.32 |
|
$ |
1.22 |
|
$ |
0.63 |
|
See accompanying notes to the interim condensed consolidated
financial statements.
Martinrea International Inc.Interim Condensed
Consolidated Statements of Comprehensive Income(in thousands of
Canadian dollars) (unaudited) |
|
Three months endedJune 30,
2023 |
Three months endedJune 30,
2022 |
Six months endedJune 30,
2023 |
Six months endedJune 30,
2022 |
|
|
|
|
|
NET INCOME FOR
THE PERIOD |
$ |
49,900 |
|
$ |
25,471 |
|
$ |
98,071 |
|
$ |
50,679 |
|
Other
comprehensive income (loss),
net of tax: |
|
|
|
|
Items that may be reclassified to net
income |
|
|
|
|
Foreign currency translation differences for foreign
operations |
|
(33,648 |
) |
|
17,899 |
|
|
(31,027 |
) |
|
(9,539 |
) |
Items that will not be reclassified
to net income |
|
|
|
|
Share of other comprehensive income (loss) of equity investments
(note 6) |
|
(7 |
) |
|
306 |
|
|
(18 |
) |
|
285 |
|
Remeasurement of defined benefit plans |
|
2,071 |
|
|
2,957 |
|
|
2,446 |
|
|
12,063 |
|
Other comprehensive income
(loss), net of tax |
|
(31,584 |
) |
|
21,162 |
|
|
(28,599 |
) |
|
2,809 |
|
TOTAL
COMPREHENSIVE INCOME FOR
THE PERIOD |
$ |
18,316 |
|
$ |
46,633 |
|
$ |
69,472 |
|
$ |
53,488 |
|
See accompanying notes to the interim condensed consolidated
financial statements.
Martinrea International Inc.Interim Condensed
Consolidated Statements of Changes in Equity(in thousands of
Canadian dollars) (unaudited) |
|
Capital stock |
Contributed surplus |
Accumulated othercomprehensive
income |
Retained earnings |
Total equity |
BALANCE AT DECEMBER 31, 2021 |
$ |
663,415 |
|
$ |
44,845 |
|
$ |
51,207 |
|
$ |
410,308 |
|
$ |
1,169,775 |
|
Net income for the period |
|
- |
|
|
- |
|
|
- |
|
|
50,679 |
|
|
50,679 |
|
Compensation expense related
to stock options |
|
- |
|
|
391 |
|
|
- |
|
|
- |
|
|
391 |
|
Dividends ($0.10 per
share) |
|
- |
|
|
- |
|
|
- |
|
|
(8,038 |
) |
|
(8,038 |
) |
Exercise of employee stock
options |
|
231 |
|
|
(60 |
) |
|
- |
|
|
- |
|
|
171 |
|
Other comprehensive income
(loss) net of tax |
|
|
|
|
|
Remeasurement of defined benefit plans |
|
- |
|
|
- |
|
|
- |
|
|
12,063 |
|
|
12,063 |
|
Foreign currency translation differences |
|
- |
|
|
- |
|
|
(9,539 |
) |
|
- |
|
|
(9,539 |
) |
Share of other comprehensive income of equity investments |
|
- |
|
|
- |
|
|
285 |
|
|
- |
|
|
285 |
|
BALANCE AT JUNE 30, 2022 |
|
663,646 |
|
|
45,176 |
|
|
41,953 |
|
|
465,012 |
|
|
1,215,787 |
|
Net income for the period |
|
- |
|
|
- |
|
|
- |
|
|
82,159 |
|
|
82,159 |
|
Compensation expense related
to stock options |
|
- |
|
|
382 |
|
|
- |
|
|
- |
|
|
382 |
|
Dividends ($0.10 per
share) |
|
- |
|
|
- |
|
|
- |
|
|
(8,038 |
) |
|
(8,038 |
) |
Other comprehensive income
(loss) net of tax |
|
|
|
|
|
Remeasurement of defined benefit plans |
|
- |
|
|
- |
|
|
- |
|
|
4,503 |
|
|
4,503 |
|
Foreign currency translation differences |
|
- |
|
|
- |
|
|
82,357 |
|
|
- |
|
|
82,357 |
|
Share of other comprehensive loss of equity investments |
|
- |
|
|
- |
|
|
(245 |
) |
|
- |
|
|
(245 |
) |
BALANCE AT DECEMBER 31, 2022 |
|
663,646 |
|
|
45,558 |
|
|
124,065 |
|
|
543,636 |
|
|
1,376,905 |
|
Net income for the period |
|
- |
|
|
- |
|
|
- |
|
|
98,071 |
|
|
98,071 |
|
Compensation expense related
to stock options |
|
- |
|
|
221 |
|
|
- |
|
|
- |
|
|
221 |
|
Dividends ($0.10 per
share) |
|
- |
|
|
- |
|
|
- |
|
|
(7,999 |
) |
|
(7,999 |
) |
Exercise of employee stock
options |
|
358 |
|
|
(97 |
) |
|
- |
|
|
- |
|
|
261 |
|
Repurchase of common shares
(note 11) |
|
(6,733 |
) |
|
- |
|
|
- |
|
|
(3,307 |
) |
|
(10,040 |
) |
Other comprehensive income
(loss) net of tax |
|
|
|
|
|
Remeasurement of defined benefit plans |
|
- |
|
|
- |
|
|
- |
|
|
2,446 |
|
|
2,446 |
|
Foreign currency translation differences |
|
- |
|
|
- |
|
|
(31,027 |
) |
|
- |
|
|
(31,027 |
) |
Share of other comprehensive loss of equity investments |
|
- |
|
|
- |
|
|
(18 |
) |
|
- |
|
|
(18 |
) |
BALANCE AT JUNE 30, 2023 |
$ |
657,271 |
|
$ |
45,682 |
|
$ |
93,020 |
|
$ |
632,847 |
|
$ |
1,428,820 |
|
See accompanying notes to the interim condensed consolidated
financial statements.
Martinrea International Inc.Interim Condensed
Consolidated Statements of Cash Flows(in thousands of Canadian
dollars) (unaudited) |
|
Three months endedJune 30,
2023 |
Three months endedJune 30,
2022 |
Six months ended June 30,
2023 |
Six months ended June 30,
2022 |
CASH PROVIDED BY (USED IN): |
|
|
|
|
OPERATING
ACTIVITIES: |
|
|
|
|
Net income for the period |
$ |
49,900 |
|
$ |
25,471 |
|
$ |
98,071 |
|
$ |
50,679 |
|
Adjustments for: |
|
|
|
|
Depreciation of property, plant and equipment and right-of-use
assets |
|
75,532 |
|
|
66,233 |
|
|
150,204 |
|
|
131,605 |
|
Amortization of development costs |
|
2,670 |
|
|
2,598 |
|
|
5,283 |
|
|
5,319 |
|
Unrealized loss (gain) on foreign exchange forward contracts |
|
4,701 |
|
|
2,593 |
|
|
(83 |
) |
|
1,756 |
|
Finance expense |
|
19,686 |
|
|
11,346 |
|
|
38,732 |
|
|
20,600 |
|
Income tax expense |
|
11,630 |
|
|
8,907 |
|
|
23,709 |
|
|
17,127 |
|
Loss (gain) on disposal of property, plant and equipment |
|
(26 |
) |
|
(82 |
) |
|
16 |
|
|
(82 |
) |
Deferred and restricted share units expense |
|
1,775 |
|
|
1,632 |
|
|
7,211 |
|
|
545 |
|
Stock options expense |
|
111 |
|
|
195 |
|
|
221 |
|
|
391 |
|
Share of loss of equity investments |
|
652 |
|
|
1,265 |
|
|
2,030 |
|
|
2,366 |
|
Net gain on disposal of equity investments |
|
- |
|
|
- |
|
|
(5,273 |
) |
|
- |
|
Gain on dilution of equity investments |
|
- |
|
|
- |
|
|
- |
|
|
(4,050 |
) |
Pension and other post-retirement benefits expense |
|
700 |
|
|
854 |
|
|
1,394 |
|
|
1,722 |
|
Contributions made to pension and other post-retirement
benefits |
|
(597 |
) |
|
(295 |
) |
|
(1,220 |
) |
|
(1,660 |
) |
|
|
166,734 |
|
|
120,717 |
|
|
320,295 |
|
|
226,318 |
|
Changes in non-cash working
capital items: |
|
|
|
|
Trade and other receivables |
|
4,872 |
|
|
(12,287 |
) |
|
(126,996 |
) |
|
(202,699 |
) |
Inventories |
|
20,080 |
|
|
(34,946 |
) |
|
(1,895 |
) |
|
(58,128 |
) |
Prepaid expenses and deposits |
|
2,190 |
|
|
(2,201 |
) |
|
5,449 |
|
|
(5,850 |
) |
Trade, other payables and provisions |
|
(28,108 |
) |
|
68,031 |
|
|
79,318 |
|
|
221,636 |
|
|
|
165,768 |
|
|
139,314 |
|
|
276,171 |
|
|
181,277 |
|
Interest paid |
|
(24,464 |
) |
|
(14,012 |
) |
|
(47,763 |
) |
|
(23,971 |
) |
Income taxes paid |
|
(31,206 |
) |
|
(7,963 |
) |
|
(63,783 |
) |
|
(9,974 |
) |
NET CASH PROVIDED BY
OPERATING ACTIVITIES |
$ |
110,098 |
|
$ |
117,339 |
|
$ |
164,625 |
|
$ |
147,332 |
|
|
|
|
|
|
FINANCING
ACTIVITIES: |
|
|
|
|
Increase (decrease) in long-term debt (net of deferred financing
fees) |
|
(11,763 |
) |
|
17,519 |
|
|
35,331 |
|
|
37,519 |
|
Repayment of long-term debt |
|
(4,336 |
) |
|
(5,662 |
) |
|
(8,576 |
) |
|
(11,021 |
) |
Principal payments of lease liabilities |
|
(11,933 |
) |
|
(11,829 |
) |
|
(22,887 |
) |
|
(20,323 |
) |
Dividends paid |
|
(4,019 |
) |
|
(4,019 |
) |
|
(8,038 |
) |
|
(8,037 |
) |
Exercise of employee stock options |
|
261 |
|
|
171 |
|
|
261 |
|
|
171 |
|
Repurchase of common shares |
|
(10,040 |
) |
|
- |
|
|
(10,040 |
) |
|
- |
|
NET CASH USED IN
FINANCING ACTIVITIES |
$ |
(41,830 |
) |
$ |
(3,820 |
) |
$ |
(13,949 |
) |
$ |
(1,691 |
) |
|
|
|
|
|
INVESTING
ACTIVITIES: |
|
|
|
|
Purchase of property, plant and equipment (excluding capitalized
interest)* |
|
(76,440 |
) |
|
(85,570 |
) |
|
(159,856 |
) |
|
(173,114 |
) |
Capitalized development costs |
|
(2,436 |
) |
|
(2,287 |
) |
|
(4,201 |
) |
|
(3,626 |
) |
Increase in investments (note 6) |
|
(1,000 |
) |
|
- |
|
|
(1,000 |
) |
|
(1,000 |
) |
Proceeds on disposal of property, plant and equipment |
|
255 |
|
|
416 |
|
|
386 |
|
|
416 |
|
NET CASH USED IN
INVESTING ACTIVITIES |
$ |
(79,621 |
) |
$ |
(87,441 |
) |
$ |
(164,671 |
) |
$ |
(177,324 |
) |
|
|
|
|
|
Effect
of foreign exchange rate changes on cash and cash equivalents |
|
523 |
|
|
(6,551 |
) |
|
(1,905 |
) |
|
(5,745 |
) |
|
|
|
|
|
INCREASE
(DECREASE) IN CASH AND CASH
EQUIVALENTS |
|
(10,830 |
) |
|
19,527 |
|
|
(15,900 |
) |
|
(37,428 |
) |
CASH AND CASH EQUIVALENTS, BEGINNING OF
PERIOD |
|
156,585 |
|
|
96,336 |
|
|
161,655 |
|
|
153,291 |
|
CASH AND CASH EQUIVALENTS, END OF PERIOD |
$ |
145,755 |
|
$ |
115,863 |
|
$ |
145,755 |
|
$ |
115,863 |
|
*As at June 30, 2023, $67,112 (December 31, 2022
- $94,754) of purchases of property, plant and equipment remain
unpaid and are recorded in trade and other payables.
See accompanying notes to the interim condensed
consolidated financial statements.
Martinrea (TSX:MRE)
Graphique Historique de l'Action
De Mar 2024 à Avr 2024
Martinrea (TSX:MRE)
Graphique Historique de l'Action
De Avr 2023 à Avr 2024