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, 2024,
and declared a quarterly cash dividend of $0.05 per share.
SECOND-QUARTER HIGHLIGHTS
- Total sales of $1,301.8 million,
production sales of $1,263.7 million.
- Diluted net earnings per share of
$0.54 and Adjusted Net Earnings per Share(1) of $0.58.
- Adjusted Operating Income Margin(1)
of 6.3%.
- Adjusted EBITDA(1) of $166.1
million, a new quarterly record for the Company.
- Free Cash Flow(1) (excluding
principal payments of IFRS-16 lease liabilities) was $51.7 million,
a notable improvement over $26.5 million generated in the second
quarter of 2023.
- Net debt-to-Adjusted EBITDA(1)
ratio, excluding the impact of IFRS 16, ended the quarter at
1.49x.
- New business awards of
approximately $125 million in annualized sales at mature
volumes.
- Quarterly cash dividend of $0.05
per share declared.
OVERVIEW
Pat D’Eramo, Chief Executive Officer, stated:
“Our second quarter financial results were strong, with a continued
improvement in most metrics quarter over quarter, and better Free
Cash Flow(1). We continue to perform well operationally. Supply
constraints, inflationary cost pressures, and tight labour markets
are generally improving, and we are mitigating the impact of these
issues, as well as the slower-than-expected ramp up in electric
vehicle programs across our industry, through commercial
negotiations. I am happy with the progress we are making on this
front. Our business is well-positioned for the long term. Interest
rates are already coming down in Canada and seem likely to come
down in the United States. This should help to improve vehicle
affordability, which bodes well for future production volumes and
sales. Our business is largely agnostic to propulsion type, which
enables us to adapt to any mix of vehicles over time, and our North
American-centric orientation and limited footprint in China is a
positive in the context of the current geopolitical
environment.”
He continued: “I am pleased to announce that we
have been awarded new business representing $125 million in
annualized sales at mature volumes, consisting of $75 million in
Lightweight Structures with multiple customers including Volvo,
Honda, Mercedes-Benz, General Motors and others, and $50 million in
Propulsion Systems, with Ford.”
Fred Di Tosto, President, stated: “Our financial
metrics are among the best in our industry, with operating margins
and Free Cash Flow(1) generation at the high end of our peer group.
This is a notable achievement, and I am very proud of our team in
delivering this performance. As previously announced, I have
stepped away from the Chief Financial Officer role and I continue
to serve the company as President, overseeing the operations and
some of the more strategic aspects of the business. It has been an
honour serving as Chief Financial Officer for the last 13 years,
and it continues to be an honour to serve as President. I am
confident that the finance function remains in strong hands under
Peter Cirulis’ leadership.”
Peter Cirulis, Chief Financial Officer, stated:
“We are pleased with our financial performance in the second
quarter. We are driving a healthy level of Free Cash Flow(1) from
the business , our balance sheet is in great shape, and we are
executing on our capital allocation priorities. Second quarter
Adjusted EBITDA(1) of $166.1 million set a new quarterly record for
the Company, and Adjusted Operating Income Margin(1) increased
quarter over quarter, coming in at 6.3%. Second quarter sales,
excluding tooling sales of $38.1 million, were $1,263.7 million,
and diluted net earnings per share and Adjusted Net Earnings per
Share(1) were $0.54 and $0.58, respectively. Free Cash Flow(1)
(excluding principal payments of IFRS-16 lease liabilities) of
$51.7 million improved year over year, mainly reflecting a lower
level of capital spending. We continue to expect a solid year of
Free Cash Flow(1) in 2024, weighted to the back half of the year,
similar to 2023.”
He continued: “Net Debt(1) (excluding IFRS-16
lease liabilities) declined by approximately $4 million quarter
over quarter, to $852.1 million, reflecting the strong Free Cash
Flow(1), partially offset by some cash restructuring costs, our
regular dividend payment, and significant share buyback activity
during the quarter. Our Net Debt to Adjusted EBITDA(1) ratio
(excluding the impact of IFRS 16) ended the quarter at 1.49x,
inline with our long-term target range of 1.5x or better.”
Rob Wildeboer, Executive Chairman, stated: “As
my colleagues noted, we are executing well operationally and
financially, and allocating capital with a view to maximizing
returns for our stakeholders. We repurchased approximately 2.0
million shares for cancellation under our normal course issuer bid
(NCIB) during the quarter, representing about 2.5% of the
outstanding shares of the Company. Total cash spent on share
repurchases in the quarter was approximately $24.0 million. We
intend to continue to buy back some stock at these levels. In terms
of allocating capital, we will consider anything that makes
Martinrea better, but not at the expense of our strong financial
status. We believe consistent Free Cash Flow(1) generation is the
path to a higher valuation. On behalf of the executive management
team, we would like to thank our people for their hard work in
delivering a solid quarterly performance, as well as our
shareholders and other stakeholders for their continued
support.”
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, 2024 (“MD&A”), the Company’s interim
condensed consolidated financial statements for the three and six
months ended June 30, 2024 (the “interim financial statements”) and
the Company’s Annual Information Form for the year ended December
31, 2023 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 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, 2024 and 2023. Refer to the Company’s interim financial
statements for the three and six months ended June 30, 2024 for a
detailed account of the Company’s performance for the periods
presented in the tables below.
|
Three months ended June 30,
2024 |
|
Three months ended June 30,
2023 |
|
$ Change |
|
% Change |
Sales |
$ |
1,301,793 |
|
|
$ |
1,361,055 |
|
|
(59,262 |
) |
|
(4.4 |
%) |
Gross Margin |
|
183,630 |
|
|
|
173,589 |
|
|
10,041 |
|
|
5.8 |
% |
Operating Income |
|
76,208 |
|
|
|
82,436 |
|
|
(6,228 |
) |
|
(7.6 |
%) |
Net
Income for the period |
|
40,979 |
|
|
|
49,900 |
|
|
(8,921 |
) |
|
(17.9 |
%) |
Net Earnings per Share - Basic and Diluted |
$ |
0.54 |
|
|
$ |
0.62 |
|
|
(0.08 |
) |
|
(12.9 |
%) |
Non-IFRS Measures* |
|
|
|
|
|
|
|
Adjusted Operating Income |
$ |
81,563 |
|
|
$ |
82,436 |
|
|
(873 |
) |
|
(1.1 |
%) |
% of Sales |
|
6.3 |
% |
|
|
6.1 |
% |
|
|
|
|
Adjusted EBITDA |
|
166,139 |
|
|
|
160,612 |
|
|
5,527 |
|
|
3.4 |
% |
% of Sales |
|
12.8 |
% |
|
|
11.8 |
% |
|
|
|
|
Adjusted Net Income |
|
44,383 |
|
|
|
49,900 |
|
|
(5,517 |
) |
|
(11.1 |
%) |
Adjusted Net Earnings per Share - Basic and Diluted |
$ |
0.58 |
|
|
$ |
0.62 |
|
|
(0.04 |
) |
|
(6.5 |
%) |
|
Six months ended June 30, 2024 |
|
Six months ended June 30, 2023 |
|
$ Change |
|
% Change |
Sales |
$ |
2,625,706 |
|
|
$ |
2,664,944 |
|
|
(39,238 |
) |
|
(1.5 |
%) |
Gross Margin |
|
356,167 |
|
|
|
340,975 |
|
|
15,192 |
|
|
4.5 |
% |
Operating Income |
|
149,140 |
|
|
|
157,613 |
|
|
(8,473 |
) |
|
(5.4 |
%) |
Net
Income for the period |
|
84,629 |
|
|
|
98,071 |
|
|
(13,442 |
) |
|
(13.7 |
%) |
Net Earnings per Share - Basic and Diluted |
$ |
1.10 |
|
|
$ |
1.22 |
|
|
(0.12 |
) |
|
(9.8 |
%) |
Non-IFRS Measures* |
|
|
|
|
|
|
|
Adjusted Operating Income |
$ |
160,750 |
|
|
$ |
157,613 |
|
|
3,137 |
|
|
2.0 |
% |
% of Sales |
|
6.1 |
% |
|
|
5.9 |
% |
|
|
|
|
Adjusted EBITDA |
|
328,969 |
|
|
|
313,116 |
|
|
15,853 |
|
|
5.1 |
% |
% of Sales |
|
12.5 |
% |
|
|
11.7 |
% |
|
|
|
|
Adjusted Net Income |
|
92,480 |
|
|
|
93,497 |
|
|
(1,017 |
) |
|
(1.1 |
%) |
Adjusted Net Earnings per Share - Basic |
$ |
1.20 |
|
|
$ |
1.17 |
|
|
0.03 |
|
|
2.6 |
% |
Adjusted Net Earnings per Share - Diluted |
$ |
1.20 |
|
|
$ |
1.16 |
|
|
0.04 |
|
|
3.4 |
% |
*Non-IFRS Measures
The Company prepares its interim financial
statements in accordance with IFRS Accounting 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 include “Adjusted Net
Income”, “Adjusted Net Earnings per Share (on a basic and diluted
basis)”, “Adjusted Operating Income”, "Adjusted EBITDA”, “Free Cash
Flow”, "Free Cash Flow (after IFRS 16 lease payments)", 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 endedJune 30,
2024 |
|
Three months endedJune 30,
2023 |
Net Income |
$ |
40,979 |
|
$ |
49,900 |
Adjustments, after tax* |
|
3,404 |
|
|
- |
Adjusted Net Income |
$ |
44,383 |
|
$ |
49,900 |
|
Six months ended June 30, 2024 |
|
Six months ended June 30, 2023 |
Net Income |
$ |
84,629 |
|
$ |
98,071 |
|
Adjustments, after tax* |
|
7,851 |
|
|
(4,574 |
) |
Adjusted Net Income |
$ |
92,480 |
|
$ |
93,497 |
|
*Adjustments are explained in the "Adjustments
to Net Income" section of this Press Release
|
Three months endedJune 30,
2024 |
|
Three months endedJune 30,
2023 |
Net Income |
$ |
40,979 |
|
|
$ |
49,900 |
|
Income tax expense |
|
16,531 |
|
|
|
11,630 |
|
Other finance expense
(income) |
|
(1,613 |
) |
|
|
568 |
|
Share of loss of equity
investments |
|
823 |
|
|
|
652 |
|
Finance expense |
|
19,488 |
|
|
|
19,686 |
|
Adjustments, before tax* |
|
5,355 |
|
|
|
- |
|
Adjusted Operating Income |
$ |
81,563 |
|
|
$ |
82,436 |
|
Depreciation of property, plant and equipment and right-of-use
assets |
|
80,867 |
|
|
|
75,532 |
|
Amortization of development
costs |
|
2,594 |
|
|
|
2,670 |
|
Loss
(gain) on disposal of property, plant and equipment |
|
1,115 |
|
|
|
(26 |
) |
Adjusted EBITDA |
$ |
166,139 |
|
|
$ |
160,612 |
|
|
Six months ended June 30, 2024 |
|
Six months ended June 30, 2023 |
Net Income |
$ |
84,629 |
|
|
$ |
98,071 |
|
Income tax expense |
|
30,449 |
|
|
|
23,709 |
|
Other finance expense
(income) |
|
(7,056 |
) |
|
|
344 |
|
Share of loss of equity
investments |
|
1,457 |
|
|
|
2,030 |
|
Finance expense |
|
39,661 |
|
|
|
38,732 |
|
Adjustments, before tax* |
|
11,610 |
|
|
|
(5,273 |
) |
Adjusted Operating Income |
$ |
160,750 |
|
|
$ |
157,613 |
|
Depreciation of property, plant and equipment and right-of-use
assets |
|
161,904 |
|
|
|
150,204 |
|
Amortization of development
costs |
|
5,088 |
|
|
|
5,283 |
|
Loss on
disposal of property, plant and equipment |
|
1,227 |
|
|
|
16 |
|
Adjusted EBITDA |
$ |
328,969 |
|
|
$ |
313,116 |
|
*Adjustments are explained in the "Adjustments
to Net Income" section of this Press Release
SALES
Three months ended June 30, 2024 to
three months ended June 30, 2023 comparison
|
Three months endedJune 30,
2024 |
|
Three months endedJune 30,
2023 |
|
$ Change |
|
% Change |
North America |
$ |
984,579 |
|
|
$ |
1,047,067 |
|
|
(62,488 |
) |
|
(6.0 |
%) |
Europe |
|
286,960 |
|
|
|
288,023 |
|
|
(1,063 |
) |
|
(0.4 |
%) |
Rest of the World |
|
37,200 |
|
|
|
36,566 |
|
|
634 |
|
|
1.7 |
% |
Eliminations |
|
(6,946 |
) |
|
|
(10,601 |
) |
|
3,655 |
|
|
34.5 |
% |
Total Sales |
$ |
1,301,793 |
|
|
$ |
1,361,055 |
|
|
(59,262 |
) |
|
(4.4 |
%) |
The Company’s consolidated sales for the second
quarter of 2024 decreased by $59.3 million or 4.4% to $1,301.8
million as compared to $1,361.1 million for the second quarter of
2023. The total decrease in sales was driven by year-over-year
decreases in the North America and Europe operating segments,
partially offset by a year-over-year increase in the Rest of the
World.
Sales for the second quarter of 2024 in the
Company’s North America operating segment decreased by $62.5
million or 6.0% to $984.6 million from $1,047.1 million for the
second quarter of 2023. The decrease was due to a decrease in
tooling sales of $73.7 million, which are typically dependent on
the timing of tooling construction and final acceptance by the
customer; programs that ended production during or subsequent to
the second quarter of 2023, specifically the Dodge
Charger/Challenger, Ford Edge, and Chevrolet Bolt; and lower
year-over-year OEM production volumes on certain light vehicle
platforms, including the Ford Mustang Mach E and Mercedes' new
electric vehicle platform (EVA2). These negative factors were
partially offset by the launch and ramp up of new programs during
or subsequent to the second quarter of 2023, including General
Motors' new electric vehicle platforms (BEV3/BET), and the Toyota
Tacoma; higher year-over-year OEM production volumes on certain
other light vehicle platforms, including the Ford Maverick and
General Motors' large pick-up truck and SUV platform; and 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 2024 of $4.6 million.
Sales for the second quarter of 2024 in the
Company’s Europe operating segment decreased by $1.1 million or
0.4% to $287.0 million from $288.0 million for the second quarter
of 2023. The decrease was due to lower year-over-year OEM
production volumes on certain platforms, including the Mercedes'
new electric vehicle platform (EVA2) and an engine block for Ford;
programs that ended production during or subsequent to the second
quarter of 2023, specifically the BMW Mini; and a decrease in
tooling sales of $1.0 million, which are typically dependent of the
timing of tooling construction and final acceptance by the
customer. These negative factors were partially offset by higher
year-over-year OEM production volumes on certain platforms,
including an aluminum engine block for Jaguar Land Rover.
Sales for the second quarter of 2024 in the
Company’s Rest of the World operating segment increased by $0.6
million or 1.7% to $37.2 million from $36.6 million in the second
quarter of 2023. The increase was largely driven by the launch and
ramp up of new programs during or subsequent to the second quarter
of 2023, specifically the BMW 5-series in China, and an increase in
tooling sales of $1.9 million; partially offset by programs that
came with the operations acquired from Metalsa in China that ended
production during or subsequent to the second quarter of 2023, and
lower year-over-year production volumes on the Cadillac CT6 vehicle
platform in China.
Overall tooling sales decreased by $71.8 million
(including outside segment sales eliminations) to $38.1 million for
the second quarter of 2024 from $109.9 million for the second
quarter of 2023.
Six months ended June 30, 2024 to six
months ended June 30, 2023 comparison
|
Six months ended June 30, 2024 |
|
Six months ended June 30, 2023 |
|
$ Change |
|
% Change |
North America |
$ |
1,948,522 |
|
|
$ |
2,021,059 |
|
|
(72,537 |
) |
|
(3.6 |
%) |
Europe |
|
620,970 |
|
|
|
591,493 |
|
|
29,477 |
|
|
5.0 |
% |
Rest of the World |
|
68,962 |
|
|
|
70,448 |
|
|
(1,486 |
) |
|
(2.1 |
%) |
Eliminations |
|
(12,748 |
) |
|
|
(18,056 |
) |
|
5,308 |
|
|
29.4 |
% |
Total Sales |
$ |
2,625,706 |
|
|
$ |
2,664,944 |
|
|
(39,238 |
) |
|
(1.5 |
%) |
The Company’s consolidated sales for the six
months ended June 30, 2024 decreased by $39.2 million or 1.5% to
$2,625.7 million as compared to $2,664.9 million for the six months
ended June 30, 2023. The total decrease in sales was driven by
year-over-year decreases in the North America and Rest of the World
operating segments, partially offset by an increase in sales in
Europe.
Sales for the six months ended June 30, 2024 in
the Company’s North America operating segment decreased by $72.5
million or 3.6% to $1,948.5 million from $2,021.1 million for the
six months ended June 30, 2023. The decrease was due generally to a
decrease in tooling sales of $106.7 million which are typically
dependent on the timing of tooling construction and final
acceptance by the customer; programs that ended production during
or subsequent to the second quarter of 2023, specifically the Dodge
Charger/Challenger, Ford Edge, and Chevrolet Bolt; and lower
year-over-year OEM production volumes on certain light vehicle
platforms, including the Ford Mustang Mach E, Mercedes' new
electric vehicle platform (EVA2), and General Motors'
Equinox/Terrain. These negative factors were partially offset by
the launch and ramp up of new programs, including General Motors'
new electric vehicle platforms (BEV3/BET), and the Toyota Tacoma;
higher year-over-year production volumes of certain light vehicle
platforms including the Ford Escape and Maverick, and General
Motors' large pick-up truck and SUV platform; and 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, 2024 of $4.3 million.
Sales for the six months ended June 30, 2024 in
the Company’s Europe operating segment increased by $29.5 million
or 5.0% to $621.0 million from $591.5 million for the six months
ended June 30, 2023. The increase was due to an increase in tooling
sales of $29.8 million, which are typically dependent on the timing
of tooling construction and final acceptance by the customer;
higher year-over-year OEM production volumes on certain platforms,
including aluminum engine blocks for Jaguar Land Rover and
Mercedes; and 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, 2024 of $4.7
million. These positive factors were partially offset by lower
year-over-year production volumes of certain other light vehicle
platforms, including the Mercedes' new electric vehicle platform
(EVA2), and programs that ended production during or subsequent to
the corresponding period of 2023, specifically the BMW Mini.
Sales for the six months ended June 30, 2024 in
the Company’s Rest of the World operating segment decreased by $1.5
million or 2.1% to $69.0 million from $70.4 million for the six
months ended June 30, 2023. The decrease was largely driven by
programs that came with the operations acquired from Metalsa in
China that ended production during or subsequent to the six months
ended June 30, 2023, and lower year-over-year production volumes on
the Cadillac CT6 vehicle platform in China; partially offset by the
launch and ramp up of new programs, specifically the BMW 5-series
in China, and an increase in tooling sales of $6.1 million.
Overall tooling sales decreased by $69.8 million
(including outside segment sales eliminations) to $104.5 million
for the six months ended June 30, 2024 from $174.3 million for the
six months ended June 30, 2023.
GROSS MARGIN
Three months ended June 30, 2024 to
three months ended June 30, 2023 comparison
|
Three months endedJune 30,
2024 |
|
Three months endedJune 30,
2023 |
|
$ Change |
|
% Change |
Gross margin |
$ |
183,630 |
|
|
$ |
173,589 |
|
|
10,041 |
|
5.8 |
% |
% of
Sales |
|
14.1 |
% |
|
|
12.8 |
% |
|
|
|
|
The gross margin percentage for the second
quarter of 2024 of 14.1% increased as a percentage of sales by 1.3%
as compared to the gross margin percentage for the second quarter
of 2023 of 12.8%. The increase in gross margin as a percentage of
sales was generally due to:
- productivity and efficiency improvements at certain operating
facilities and other improvements;
- contribution from overall higher production sales volume;
and
- a decrease in tooling sales which typically earn low margin for
the Company.
These factors were partially offset by
operational inefficiencies at certain other operating facilities,
and a negative sales mix, including additional depreciation expense
from recent new program investments.
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.
Six months ended June 30, 2024 to six
months ended June 30, 2023 comparison
|
Six months ended June 30, 2024 |
|
Six months ended June 30, 2023 |
|
$ Change |
|
% Change |
Gross margin |
$ |
356,167 |
|
|
$ |
340,975 |
|
|
15,192 |
|
4.5 |
% |
% of
Sales |
|
13.6 |
% |
|
|
12.8 |
% |
|
|
|
|
The gross margin percentage for the six months
ended June 30, 2024 of 13.6% increased as a percentage of sales by
0.8% as compared to the gross margin percentage for the six months
ended June 30, 2023 of 12.8%. The increase in gross margin as a
percentage of sales was generally due to:
- productivity and efficiency improvements at certain operating
facilities and other improvements;
- contribution from higher production sales volume; and
- a decrease in tooling sales which typically earn low margin for
the Company.
These factors were partially offset by:
- operational inefficiencies at certain other operating
facilities;
- an unfavourable impact from a year-over-year change in foreign
exchange rates in Mexico; and
- a negative sales mix, including additional depreciation expense
from recent new program investments.
Overall market related inflationary pressures on
labour, material and energy costs, along with offsetting commercial
settlements, were generally stable year-over-year.
ADJUSTMENTS TO NET INCOME
Adjusted Net Income excludes certain items as
set out in the following tables 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, 2024 to
three months ended June 30, 2023 comparison
|
Three months ended June 30,
2024 |
|
Three months ended June 30,
2023 |
|
$ Change |
NET INCOME |
$ |
40,979 |
|
|
$ |
49,900 |
|
$ |
(8,921 |
) |
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
Restructuring costs (1) |
|
5,355 |
|
|
|
- |
|
|
5,355 |
|
ADJUSTMENTS, BEFORE TAX |
$ |
5,355 |
|
|
$ |
- |
|
$ |
5,355 |
|
|
|
|
|
|
|
Tax impact of adjustments |
|
(1,951 |
) |
|
|
- |
|
|
(1,951 |
) |
ADJUSTMENTS, AFTER TAX |
$ |
3,404 |
|
|
$ |
- |
|
$ |
3,404 |
|
|
|
|
|
|
|
ADJUSTED NET INCOME |
$ |
44,383 |
|
|
$ |
49,900 |
|
$ |
(5,517 |
) |
|
|
|
|
|
|
Number of Shares Outstanding –
Basic (‘000) |
|
76,060 |
|
|
|
80,095 |
|
|
Adjusted Basic Net Earnings
Per Share |
$ |
0.58 |
|
|
$ |
0.62 |
|
|
Number of Shares Outstanding –
Diluted (‘000) |
|
76,062 |
|
|
|
80,148 |
|
|
Adjusted Diluted Net Earnings Per Share |
$ |
0.58 |
|
|
$ |
0.62 |
|
|
TABLE B
Six months ended June 30, 2024 to six
months ended June 30, 2023 comparison
|
Six months ended June 30, 2024 |
|
Six months endedJune 30, 2023 |
|
$ Change |
NET INCOME |
$ |
84,629 |
|
|
$ |
98,071 |
|
|
$ |
(13,442 |
) |
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
Restructuring costs (1) |
|
11,610 |
|
|
|
- |
|
|
|
11,610 |
|
Net gain on disposal of equity
investments (2) |
|
- |
|
|
|
(5,273 |
) |
|
|
5,273 |
|
ADJUSTMENTS, BEFORE TAX |
$ |
11,610 |
|
|
$ |
(5,273 |
) |
|
$ |
16,883 |
|
|
|
|
|
|
|
Tax impact of adjustments |
|
(3,759 |
) |
|
|
699 |
|
|
|
(4,458 |
) |
ADJUSTMENTS, AFTER TAX |
$ |
7,851 |
|
|
$ |
(4,574 |
) |
|
$ |
12,425 |
|
|
|
|
|
|
|
ADJUSTED NET INCOME |
$ |
92,480 |
|
|
$ |
93,497 |
|
|
$ |
(1,017 |
) |
|
|
|
|
|
|
Number of Shares Outstanding –
Basic (‘000) |
|
76,984 |
|
|
|
80,241 |
|
|
|
Adjusted Basic Net Earnings
Per Share |
$ |
1.20 |
|
|
$ |
1.17 |
|
|
|
Number of Shares Outstanding –
Diluted (‘000) |
|
77,005 |
|
|
|
80,293 |
|
|
|
Adjusted Diluted Net Earnings Per Share |
$ |
1.20 |
|
|
$ |
1.16 |
|
|
|
(1) Restructuring
costs
Additions to the restructuring provision during
the three and six months ended June 30, 2024 totaled $5.4 million
and $11.6 million, respectively, and represent employee-related
severance resulting from the rightsizing of certain operations in
Germany, Mexico, Canada, and the United States.
(2) Net
gain on disposal of equity investments
On 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%.
NET INCOME
Three months ended June 30, 2024 to
three months ended June 30, 2023 comparison
|
Three months ended June 30,
2024 |
|
Three months ended June 30,
2023 |
|
$ Change |
|
% Change |
Net Income |
$ |
40,979 |
|
$ |
49,900 |
|
(8,921 |
) |
|
(17.9 |
%) |
Adjusted Net Income |
|
44,383 |
|
|
49,900 |
|
(5,517 |
) |
|
(11.1 |
%) |
Net Earnings per Share |
|
|
|
|
|
|
|
Basic and Diluted |
$ |
0.54 |
|
$ |
0.62 |
|
|
|
|
Adjusted Net Earnings per
Share |
|
|
|
|
|
|
|
Basic and Diluted |
$ |
0.58 |
|
$ |
0.62 |
|
|
|
|
Net Income, before adjustments, for the second
quarter of 2024 decreased by $8.9 million to $41.0 million or $0.54
per share, on a basic and diluted basis, from Net Income of $49.9
million or $0.62 per share, on a basic and diluted basis, for the
second quarter of 2023. Excluding the adjustments explained in
Table A under “Adjustments to Net Income", Adjusted Net Income for
the second quarter of 2024 decreased by $5.5 million to $44.4
million or $0.58 per share, on a basic and diluted basis, from
$49.9 million or $0.62 per share, on a basic and diluted basis, for
the second quarter of 2024.
Adjusted Net Income for the second quarter of
2024, as compared to the second quarter of 2023, was negatively
impacted by the following:
- a year-over-year increase in SG&A expense, as previously
explained;
- a $1.1 million loss on the disposal of property, plant and
equipment for the second quarter of 2024; and
- a higher effective tax rate (29.4% for the second quarter of
2024 compared to 18.9% for the second quarter of 2023).
These factors were partially offset by the
following:
- higher gross margin as previously explained; and
- a net foreign exchange gain of $1.9 million for the second
quarter of 2024 compared to a loss of $0.7 million for the second
quarter of 2023.
Six months ended June 30, 2024 to six
months ended June 30, 2023 comparison
|
Six months ended June 30, 2024 |
|
Six months ended June 30, 2023 |
|
$ Change |
|
% Change |
Net Income |
$ |
84,629 |
|
$ |
98,071 |
|
(13,442 |
) |
|
(13.7 |
%) |
Adjusted Net Income |
|
92,480 |
|
|
93,497 |
|
(1,017 |
) |
|
(1.1 |
%) |
Net Earnings per Share |
|
|
|
|
|
|
|
Basic and Diluted |
$ |
1.10 |
|
$ |
1.22 |
|
|
|
|
Adjusted Net Earnings per
Share |
|
|
|
|
|
|
|
Basic |
$ |
1.20 |
|
$ |
1.17 |
|
|
|
|
Diluted |
$ |
1.20 |
|
$ |
1.16 |
|
|
|
|
Net Income, before adjustments, for the six
months ended June 30, 2024 decreased by $13.4 million to $84.6
million or $1.10 per share, on a basic and diluted basis, from Net
Income of $98.1 million or $1.22 per share, on a basic and diluted
basis, for the six months ended June 30, 2023. Excluding the
adjustments explained in Table B under “Adjustments to Net Income”,
Adjusted Net Income for the six months ended June 30, 2024
decreased by $1.0 million to $92.5 million or $1.20 per share on a
basic and diluted basis, from $93.5 million or $1.17 per share on a
basic basis, and $1.16 on a diluted basis, for the six months ended
June 30, 2023.
Adjusted Net Income for the six months ended
June 30, 2024, as compared to the six months ended June 30, 2023,
was negatively impacted by the following:
- a year-over-year increase in SG&A expense, as previously
explained;
- a $2.6 million year-over-year increase in research and
development costs driven generally by increased new product and
process development activity;
- a $1.2 million loss on the disposal of property, plant and
equipment for the six months ended June 30, 2024; and
- a higher effective tax rate (27.0% for the six months ended
June 30, 2024 compared to 19.8% for the six months ended June 30,
2023).
These factors were partially offset by the
following:
- higher gross margin as previously explained; and
- a net foreign exchange gain of $6.8 million for the six months
ended June 30, 2024 compared to a loss of $0.6 million for the six
months ended June 30, 2023.
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, 2024, on or about October 15, 2024.
ABOUT MARTINREA
Martinrea International Inc. is a leader in the
development and production of quality metal parts, assemblies and
modules, fluid management systems, and complex aluminum products
focused primarily on the automotive sector. Martinrea currently
operates in 56 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 X and Facebook.
CONFERENCE CALL DETAILS
A conference call to discuss the financial
results will be held on Tuesday, August 6, 2024 at 5:30 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 8636388#. Please call 10 minutes prior to the
start of the conference call.
The conference call will also be webcast live in
listen‐only mode and archived for twelve months. 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 – 7572968#). The rebroadcast will be available until
September 7, 2024 at 5:00 p.m.
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 2024) 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, improvements in interest rates, supply constraints,
inflation and labour, the growth of the Company and pursuit of, and
belief in, its strategies, the strength, recovery and growth of the
automotive industry and continuing challenges, contemplated
purchases under the NCIB, 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, 2023, and other public filings which can be
found at www.sedarplus.ca:
- North American and Global Economic
and Political Conditions (including war) and Consumer
Confidence
- Automotive Industry Risks
- Pandemics and Epidemics, Force
Majeure Events, Natural Disasters, Terrorist Activities, Political
and Civil Unrest or War, and Other Outbreaks
- Russia and Ukraine War and
Hamas-Israel War
- 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
- 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:
Peter CirulisChief 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 IFRS Accounting 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”, “Free Cash-Flow (after IFRS 16 lease
payments)” 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, 2024 and in this press
release.
Martinrea International Inc.Interim Condensed
Consolidated Balance Sheets(in thousands of Canadian dollars)
(unaudited)
|
Note |
June 30, 2024 |
December 31, 2023 |
ASSETS |
|
|
|
Cash and cash equivalents |
|
$ |
181,438 |
$ |
186,804 |
Trade and other
receivables |
2 |
|
798,369 |
|
695,819 |
Inventories |
3 |
|
576,446 |
|
568,274 |
Prepaid expenses and
deposits |
|
|
33,446 |
|
33,904 |
Income
taxes recoverable |
|
|
37,020 |
|
11,089 |
TOTAL CURRENT ASSETS |
|
|
1,626,719 |
|
1,495,890 |
Property, plant and
equipment |
4 |
|
1,952,096 |
|
1,943,771 |
Right-of-use assets |
5 |
|
232,001 |
|
238,552 |
Deferred tax assets |
|
|
199,160 |
|
192,301 |
Intangible assets |
|
|
41,936 |
|
42,743 |
Investments |
6 |
|
66,798 |
|
60,170 |
Pension
assets |
|
|
15,136 |
|
16,303 |
TOTAL NON-CURRENT ASSETS |
|
|
2,507,127 |
|
2,493,840 |
TOTAL ASSETS |
|
$ |
4,133,846 |
$ |
3,989,730 |
|
|
|
|
LIABILITIES |
|
|
|
Trade and other payables |
7 |
$ |
1,196,186 |
$ |
1,176,579 |
Provisions |
8 |
|
11,545 |
|
29,892 |
Income taxes payable |
|
|
28,905 |
|
25,017 |
Current portion of long-term
debt |
9 |
|
11,009 |
|
12,778 |
Current
portion of lease liabilities |
10 |
|
51,615 |
|
48,507 |
TOTAL CURRENT LIABILITIES |
|
|
1,299,260 |
|
1,292,773 |
Long-term debt |
9 |
|
1,022,577 |
|
956,458 |
Lease liabilities |
10 |
|
200,596 |
|
210,469 |
Pension and other
post-retirement benefits |
|
|
38,334 |
|
37,261 |
Deferred tax liabilities |
|
|
26,378 |
|
27,588 |
TOTAL NON-CURRENT LIABILITIES |
|
|
1,287,885 |
|
1,231,776 |
TOTAL LIABILITIES |
|
|
2,587,145 |
|
2,524,549 |
|
|
|
|
EQUITY |
|
|
|
Capital stock |
12 |
|
617,922 |
|
645,256 |
Contributed surplus |
|
|
45,907 |
|
45,903 |
Accumulated other
comprehensive income |
|
|
141,392 |
|
95,753 |
Retained earnings |
|
|
741,480 |
|
678,269 |
TOTAL EQUITY |
|
|
1,546,701 |
|
1,465,181 |
TOTAL LIABILITIES AND EQUITY |
|
$ |
4,133,846 |
$ |
3,989,730 |
|
|
|
|
|
|
Contingencies (note 17)
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 monthsendedJune 30,
2024 |
|
Three monthsendedJune 30,
2023 |
|
Six monthsendedJune 30,
2024 |
|
Six
monthsendedJune 30,
2023 |
|
|
|
|
|
|
|
SALES |
|
$ |
1,301,793 |
|
$ |
1,361,055 |
|
$ |
2,625,706 |
|
$ |
2,664,944 |
|
|
|
|
|
|
|
Cost of sales (excluding
depreciation of property, plant and equipment and right-of-use
assets) |
|
|
(1,041,483 |
) |
|
(1,116,313 |
) |
|
(2,115,892 |
) |
|
(2,182,510 |
) |
Depreciation of property, plant and equipment and right-of-use
assets (production) |
|
|
(76,680 |
) |
|
(71,153 |
) |
|
(153,647 |
) |
|
(141,459 |
) |
Total
cost of sales |
|
|
(1,118,163 |
) |
|
(1,187,466 |
) |
|
(2,269,539 |
) |
|
(2,323,969 |
) |
GROSS MARGIN |
|
|
183,630 |
|
|
173,589 |
|
|
356,167 |
|
|
340,975 |
|
|
|
|
|
|
|
Research and development
costs |
|
|
(10,208 |
) |
|
(9,351 |
) |
|
(21,185 |
) |
|
(18,629 |
) |
Selling, general and
administrative |
|
|
(86,557 |
) |
|
(77,449 |
) |
|
(164,748 |
) |
|
(155,972 |
) |
Depreciation of property,
plant and equipment and right-of-use assets (non-production) |
|
|
(4,187 |
) |
|
(4,379 |
) |
|
(8,257 |
) |
|
(8,745 |
) |
Gain (loss) on disposal of
property, plant and equipment |
|
|
(1,115 |
) |
|
26 |
|
|
(1,227 |
) |
|
(16 |
) |
Restructuring costs |
8 |
|
(5,355 |
) |
|
- |
|
|
(11,610 |
) |
|
- |
|
OPERATING INCOME |
|
|
76,208 |
|
|
82,436 |
|
|
149,140 |
|
|
157,613 |
|
|
|
|
|
|
|
Share of loss of equity
investments |
6 |
|
(823 |
) |
|
(652 |
) |
|
(1,457 |
) |
|
(2,030 |
) |
Net gain on disposal of equity
investments |
|
|
- |
|
|
- |
|
|
- |
|
|
5,273 |
|
Finance expense |
14 |
|
(19,488 |
) |
|
(19,686 |
) |
|
(39,661 |
) |
|
(38,732 |
) |
Other
finance income (expense) |
14 |
|
1,613 |
|
|
(568 |
) |
|
7,056 |
|
|
(344 |
) |
INCOME BEFORE INCOME
TAXES |
|
|
57,510 |
|
|
61,530 |
|
|
115,078 |
|
|
121,780 |
|
|
|
|
|
|
|
Income
tax expense |
11 |
|
(16,531 |
) |
|
(11,630 |
) |
|
(30,449 |
) |
|
(23,709 |
) |
NET INCOME FOR THE PERIOD |
|
$ |
40,979 |
|
$ |
49,900 |
|
$ |
84,629 |
|
$ |
98,071 |
|
|
|
|
|
|
|
Basic earnings per share |
13 |
$ |
0.54 |
|
$ |
0.62 |
|
$ |
1.10 |
|
$ |
1.22 |
|
Diluted
earnings per share |
13 |
$ |
0.54 |
|
$ |
0.62 |
|
$ |
1.10 |
|
$ |
1.22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 ended June 30,
2024 |
|
Three months ended June 30,
2023 |
|
Six months ended June 30,
2024 |
|
Six
months ended June 30,
2023 |
|
|
|
|
|
|
NET INCOME FOR THE PERIOD |
$ |
40,979 |
|
$ |
49,900 |
|
$ |
84,629 |
|
$ |
98,071 |
|
Other comprehensive
income (loss), net of tax: |
|
|
|
|
Items that may be reclassified to net income |
|
|
|
|
Foreign currency translation differences for foreign
operations |
|
14,287 |
|
|
(33,648 |
) |
|
45,678 |
|
|
(31,027 |
) |
Items that will not be reclassified to net
income |
|
|
|
|
Share of other comprehensive loss of equity investments (note
6) |
|
(27 |
) |
|
(7 |
) |
|
(39 |
) |
|
(18 |
) |
Remeasurement of defined benefit plans |
|
(108 |
) |
|
2,071 |
|
|
(1,136 |
) |
|
2,446 |
|
Other comprehensive income (loss), net of tax |
|
14,152 |
|
|
(31,584 |
) |
|
44,503 |
|
|
(28,599 |
) |
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD |
$ |
55,131 |
|
$ |
18,316 |
|
$ |
129,132 |
|
$ |
69,472 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 other comprehensive income |
|
Retained earnings |
|
Total equity |
|
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 12) |
|
(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 |
|
Net income for the period |
|
- |
|
|
- |
|
|
- |
|
|
55,594 |
|
|
55,594 |
|
Compensation expense related
to stock options |
|
- |
|
|
221 |
|
|
- |
|
|
- |
|
|
221 |
|
Dividends ($0.10 per
share) |
|
- |
|
|
- |
|
|
- |
|
|
(7,847 |
) |
|
(7,847 |
) |
Repurchase of common shares
(note 12) |
|
(12,015 |
) |
|
- |
|
|
- |
|
|
(7,014 |
) |
|
(19,029 |
) |
Other comprehensive income net
of tax |
|
|
|
|
|
Remeasurement of defined benefit plans |
|
- |
|
|
- |
|
|
- |
|
|
4,689 |
|
|
4,689 |
|
Foreign currency translation differences |
|
- |
|
|
- |
|
|
2,733 |
|
|
- |
|
|
2,733 |
|
BALANCE AT DECEMBER 31, 2023 |
|
645,256 |
|
|
45,903 |
|
|
95,753 |
|
|
678,269 |
|
|
1,465,181 |
|
Net income for the period |
|
- |
|
|
- |
|
|
- |
|
|
84,629 |
|
|
84,629 |
|
Compensation expense related
to stock options |
|
- |
|
|
84 |
|
|
- |
|
|
- |
|
|
84 |
|
Dividends ($0.10 per
share) |
|
- |
|
|
- |
|
|
- |
|
|
(7,582 |
) |
|
(7,582 |
) |
Exercise of employee stock
options |
|
350 |
|
|
(80 |
) |
|
- |
|
|
- |
|
|
270 |
|
Repurchase of common shares
(note 12) |
|
(27,684 |
) |
|
- |
|
|
- |
|
|
(12,700 |
) |
|
(40,384 |
) |
Other comprehensive income
(loss) net of tax |
|
|
|
|
|
Remeasurement of defined benefit plans |
|
- |
|
|
- |
|
|
- |
|
|
(1,136 |
) |
|
(1,136 |
) |
Foreign currency translation differences |
|
- |
|
|
- |
|
|
45,678 |
|
|
- |
|
|
45,678 |
|
Share of other comprehensive loss of equity investments |
|
- |
|
|
- |
|
|
(39 |
) |
|
- |
|
|
(39 |
) |
BALANCE AT JUNE 30, 2024 |
$ |
617,922 |
|
$ |
45,907 |
|
$ |
141,392 |
|
$ |
741,480 |
|
$ |
1,546,701 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 ended June 30,
2024 |
|
Three months ended June 30,
2023 |
|
Six months ended June 30,
2024 |
|
Six
months ended June 30,
2023 |
|
CASH PROVIDED BY (USED
IN): |
|
|
|
|
OPERATING
ACTIVITIES: |
|
|
|
|
Net income for
the period |
$ |
40,979 |
|
$ |
49,900 |
|
$ |
84,629 |
|
$ |
98,071 |
|
Adjustments for: |
|
|
|
|
Depreciation of property, plant and equipment and right-of-use
assets |
|
80,867 |
|
|
75,532 |
|
|
161,904 |
|
|
150,204 |
|
Amortization of development costs |
|
2,594 |
|
|
2,670 |
|
|
5,088 |
|
|
5,283 |
|
Unrealized loss (gain) on foreign exchange forward contracts |
|
4,265 |
|
|
4,701 |
|
|
3,469 |
|
|
(83 |
) |
Finance expense |
|
19,488 |
|
|
19,686 |
|
|
39,661 |
|
|
38,732 |
|
Income tax expense |
|
16,531 |
|
|
11,630 |
|
|
30,449 |
|
|
23,709 |
|
Loss (gain) on disposal of property, plant and equipment |
|
1,115 |
|
|
(26 |
) |
|
1,227 |
|
|
16 |
|
Deferred and restricted share units expense |
|
3,552 |
|
|
1,775 |
|
|
3,368 |
|
|
7,211 |
|
Stock options expense |
|
42 |
|
|
111 |
|
|
84 |
|
|
221 |
|
Share of loss of equity investments |
|
823 |
|
|
652 |
|
|
1,457 |
|
|
2,030 |
|
Net gain on disposal of equity investments |
|
- |
|
|
- |
|
|
- |
|
|
(5,273 |
) |
Pension and other post-retirement benefits expense |
|
567 |
|
|
700 |
|
|
1,131 |
|
|
1,394 |
|
Contributions made to pension and other post-retirement
benefits |
|
(600 |
) |
|
(597 |
) |
|
(1,168 |
) |
|
(1,220 |
) |
|
|
170,223 |
|
|
166,734 |
|
|
331,299 |
|
|
320,295 |
|
Changes in non-cash working capital items: |
|
|
|
|
Trade and other receivables |
|
33,376 |
|
|
4,872 |
|
|
(84,836 |
) |
|
(126,996 |
) |
Inventories |
|
(14,869 |
) |
|
20,080 |
|
|
3,738 |
|
|
(1,895 |
) |
Prepaid expenses and deposits |
|
(1,046 |
) |
|
2,190 |
|
|
937 |
|
|
5,449 |
|
Trade, other payables and provisions |
|
(32,995 |
) |
|
(28,108 |
) |
|
(11,599 |
) |
|
79,318 |
|
|
|
154,689 |
|
|
165,768 |
|
|
239,539 |
|
|
276,171 |
|
Interest paid |
|
(22,789 |
) |
|
(24,464 |
) |
|
(43,467 |
) |
|
(47,763 |
) |
Income taxes paid |
|
(23,566 |
) |
|
(31,206 |
) |
|
(48,684 |
) |
|
(63,783 |
) |
NET CASH PROVIDED BY OPERATING ACTIVITIES |
$ |
108,334 |
|
$ |
110,098 |
|
$ |
147,388 |
|
$ |
164,625 |
|
|
|
|
|
|
FINANCING ACTIVITIES: |
|
|
|
|
Increase (decrease) in long-term debt (net of deferred financing
fees) |
|
(1,523 |
) |
|
(11,763 |
) |
|
47,941 |
|
|
35,331 |
|
Equipment loan repayments |
|
(1,860 |
) |
|
(4,336 |
) |
|
(4,570 |
) |
|
(8,576 |
) |
Principal payments of lease liabilities |
|
(13,432 |
) |
|
(11,933 |
) |
|
(25,756 |
) |
|
(22,887 |
) |
Dividends paid |
|
(3,839 |
) |
|
(4,019 |
) |
|
(7,746 |
) |
|
(8,038 |
) |
Exercise of employee stock options |
|
270 |
|
|
261 |
|
|
270 |
|
|
261 |
|
Repurchase of common shares |
|
(24,012 |
) |
|
(10,040 |
) |
|
(39,922 |
) |
|
(10,040 |
) |
NET CASH USED IN FINANCING ACTIVITIES |
$ |
(44,396 |
) |
$ |
(41,830 |
) |
$ |
(29,783 |
) |
$ |
(13,949 |
) |
|
|
|
|
|
INVESTING ACTIVITIES: |
|
|
|
|
Purchase of property, plant and equipment (excluding capitalized
interest)* |
|
(52,594 |
) |
|
(76,440 |
) |
|
(110,867 |
) |
|
(159,856 |
) |
Capitalized development costs |
|
(2,099 |
) |
|
(2,436 |
) |
|
(3,144 |
) |
|
(4,201 |
) |
Increase in investments (note 6) |
|
- |
|
|
(1,000 |
) |
|
(8,130 |
) |
|
(1,000 |
) |
Proceeds on disposal of property, plant and equipment |
|
211 |
|
|
255 |
|
|
1,189 |
|
|
386 |
|
NET CASH USED IN INVESTING ACTIVITIES |
$ |
(54,482 |
) |
$ |
(79,621 |
) |
$ |
(120,952 |
) |
$ |
(164,671 |
) |
|
|
|
|
|
Effect
of foreign exchange rate changes on cash and cash equivalents |
|
(1,712 |
) |
|
523 |
|
|
(2,019 |
) |
|
(1,905 |
) |
|
|
|
|
|
INCREASE
(DECREASE) IN CASH AND CASH
EQUIVALENTS |
|
7,744 |
|
|
(10,830 |
) |
|
(5,366 |
) |
|
(15,900 |
) |
CASH AND CASH EQUIVALENTS, BEGINNING OF
PERIOD |
|
173,694 |
|
|
156,585 |
|
|
186,804 |
|
|
161,655 |
|
CASH AND CASH EQUIVALENTS, END OF PERIOD |
$ |
181,438 |
|
$ |
145,755 |
|
$ |
181,438 |
|
$ |
145,755 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*As at June 30, 2024, $56,992
(December 31, 2023 - $75,800) 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 Nov 2024 à Déc 2024
Martinrea (TSX:MRE)
Graphique Historique de l'Action
De Déc 2023 à Déc 2024