Opta Minerals Inc. Reports Second Quarter Results for Fiscal 2012
Fri August 10, 2012 7:30 AM
| about:
STKL
NEWS PROVIDED BY:
Marketwire
WATERDOWN, ONTARIO -- (Marketwire) -- 08/10/12 -- Opta Minerals Inc. (TSX: OPM), today announced results for the three and six months ended June 30, 2012. All figures are reported in U.S. dollars and are in accordance with International Financial Reporting Standards (IFRS), except where otherwise noted.
Financial Highlights (presented in $000s USD except per share amounts):
3 months 3 months
ended June ended June Increase
30, 2012 30, 2011 (Decrease) %
Revenue $ 31,214 $ 24,787 $ 6,427 25.9%
Gross Profit 6,870 5,467 1,403 25.7%
22.0% 22.1% (0.01%)
EBITDA(1) 2,904 3,092 (188) (6.1%)
EBIT(2) 1,524 2,043 (519) (25.4%)
Net Earnings 1,322 1,035 287 27.7%
EPS $ 0.07 $ 0.06 $ 0.01
6 months 6 months
ended June ended June Increase
30, 2012 30, 2011 (Decrease) %
Revenue $ 59,546 $ 46,393 $ 13,153 28.4%
Gross Profit 13,117 10,654 2,463 23.1%
22.0% 23.0% (1.0%)
EBITDA(1) 7,051 6,552 499 7.6%
EBIT(2) 4,375 4,487 (112) (2.5%)
Net Earnings 2,832 2,458 374 15.2%
EPS $ 0.15 $ 0.14 $ 0.01
1) EBITDA is a non-IFRS measure; refer to Footnotes.
2) EBIT is a non-IFRS measure; refer to Footnotes.
David Kruse, President and CEO of Opta Minerals (OPMMF.PK), noted "During the second quarter, Opta Minerals experienced solid revenue growth over the comparable period in 2011. Solid earnings in the steel sector were slightly offset by marginal results in the industrial minerals sector. We have continued to manage production to demand while focussing on our cost structure. We remain cautiously optimistic with the direction of the economic environment in our business."
Operational Highlights:
-- Revenue in the Mill and Foundry Products and Services segment increased
42.0% over the comparable quarter in 2011 due largely to the demand for
lime blends and chromite and, the acquisition of Babco Industrial Corp.
during the first quarter. Revenue in the Abrasive Products Manufacturing
and Distribution segment decreased 13.3% over the comparable quarter in
2011 due to a decrease in demand for metallurgical slags.
-- Gross profit increased quarter over quarter. Gross profit as a
percentage of revenue has declined slightly as a result of some weakness
in the industrial minerals sector and product mix.
-- Selling, general and administrative expenses (SGA) increased to 15.6% of
revenue for the second quarter of 2012 from 14.3% for the comparable
quarter in 2011. Most of the increase was the result of a bad debt due
to the bankruptcy filing of a large American steel producer and customer
in the amount of $0.9 million and, costs associated with target
acquisitions (see below).
-- Net earnings for the second quarter increased 27.7% over the comparable
quarter in 2011. The majority of the increase was due to the recognition
of deferred income tax assets from previously unrecognized non-capital
loss carry forwards.
-- The foreign exchange loss was $0.5 million for the quarter as compared
to a foreign exchange gain of $0.1 million for the same quarter in 2011.
The results reflected a year-over-year foreign exchange loss of $0.8
million largely due to the weakness of the Euro.
-- For the three months ended June 30, 2012, cash flow from operating
activities before changes in working capital generated $1.6 million
versus $2.0 million in the second quarter of 2011. The positive cash
flow was used to finance working capital, namely trade receivables.
-- On July 13, 2012, the Company tendered an offer to acquire all of the
outstanding shares of WGI Heavy Minerals, Incorporated (WGI), for Cdn
$0.60 in cash per share by way of a take-over bid. The offer valued WGI
at approximately Cdn $15.5 million on a fully diluted basis. The offer
will be funded by bank term debt.
-- The Company's working capital at June 30, 2012 amounted to $15.9 million
and total assets were $119.8 million, as compared to $14.7 million and
$92.4 million respectively at December 31, 2011.
-- The debt-to-equity ratio at June 30, 2012 was 1.04 to 1.00, versus 0.65
to 1.00 at December 31, 2011. The increased debt-to-equity ratio is
largely attributable to the acquisition of Babco Industrial Corp. during
the first quarter, financed by bank term debt.
Opta Minerals President and CEO, David Kruse, plans to host a conference call at 2:00PM Eastern Standard Time on Friday, August 10th, 2012 to discuss second quarter 2012 results and recent corporate developments. After opening remarks, there will be a question and answer period. This conference call can be accessed with the toll free dial-in number 1-(866) 321-6651 or 1-(416) 642-5212; quote confirmation code 5048710. If you are unable to listen live, the conference call will be archived and can be accessed between August 10th, 2012 and August 17th, 2012, with the toll free dial-in number 1-(888) 203-1112 or 1-(647) 436-0148 followed by pass code 5048710.
Opta Minerals is a vertically integrated provider of custom process solutions and industrial mineral products used primarily in the steel, foundry, loose abrasive cleaning, water-jet cutting and municipal water filtration industries. The Company has production and distribution facilities in Ontario, Quebec, Saskatchewan, Louisiana, South Carolina, Virginia, Maryland, Indiana, Michigan, New York, Texas, Florida, Ohio, France and Slovakia. Opta has one of the broadest product lines in the industry.
FOOTNOTES:
Earnings before income taxes and interest ("EBIT"); and earnings before interest, income taxes, depreciation and amortization ("EBITDA") as defined below, are both non-IFRS earnings measures that do not have standardized measures prescribed by IFRS, and therefore may not be comparable to similar measures presented by other publicly traded companies.
For the three For the six
Months Ended Months Ended
June 30 June 30
2012 2011 2012 2011
$ $ $ $
Net Earnings for the Period 1,322 1,035 2,832 2,458
Finance Expense 763 408 1,419 821
Income Taxes (561) 600 124 1,208
Depreciation and Amortization 1,380 1,049 2,676 2,065
EBITDA(1) 2,904 3,092 7,051 6,552
Subtract:
Depreciation and Amortization 1,380 1,049 2,676 2,065
EBIT(2) 1,524 2,043 4,375 4,487
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Notes
1) The term "EBITDA" refers to earnings before deducting interest expense, provision for income taxes, depreciation and amortization. The Company believes that EBITDA is useful supplemental information as it provides an indication of the results generated by the Company's main business activities prior to taking into consideration how those activities are financed and taxed and also prior to taking into consideration asset depreciation. EBITDA is not a recognized measure under International Finance Reporting Standards (IFRS), and accordingly, investors are cautioned that EBITDA should not be construed as an alternative to net earnings or loss determined in accordance with IFRS as an indicator of the financial performance of the Company or as a measure of the Company's liquidity and cash flows. The Company's method of calculating EBITDA may differ from other issuers and accordingly, EBITDA may not be comparable to similar measures presented by other issuers. 2) The term "EBIT" refers to earnings before income taxes and interest expense. The Company believes that EBIT is useful supplemental information as it provides an indication of the results generated by the Company's main business activities prior to taking into consideration how those activities are financed or taxed. EBIT is a non-IFRS earnings measure that does not have standardized measures prescribed by IFRS, and therefore may not be comparable to similar measures presented by other publicly traded companies.
This press release may contain "forward-looking statements" which reflect the current expectations of management of the Company regarding the Company's future growth, results of operations, performance, business prospects and opportunities. Wherever possible, words such as "may", 'would", "could", "should", "will", "anticipate", "believe", "plan", "expect", "intend", "estimate", "aim", "endeavour", "seek", "predict", "potential" and similar expressions have been used to identify these forward-looking statements. These statements reflect management's current beliefs with respect to future events and are based on information currently available to management of the Company. Forward-looking statements involve significant risks, uncertainties and assumptions. Many factors could cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, without limitation, cancellations of or the failure to renew purchase orders; production and delivery issues; quality, pricing and availability of raw materials; compliance with environmental regulations; exchange rate fluctuations as well as the other risks identified in the "Risk Factors" section of the Company's Annual Information Form and other public filings (copies of which may be obtained at www.sedar.com). Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results, performance or achievements may vary materially from those expressed or implied by this press release. These factors should be considered carefully and reader should not place undue reliance on the forward-looking statements. Although any forward-looking statements contained in this press release are based upon what management currently believes to be reasonable assumptions, the Company cannot assure readers that actual results, performance or achievements will be consistent with these forward- looking statements, and management's assumptions may prove to be incorrect. These forward-looking statements are made as of the date of this press release and, other than as required by law, the Company does not intend, and does not assume any obligation, to update or revise these forward- looking statements, whether as a result of new information, future events or otherwise.
Opta Minerals Inc. Interim Condensed Consolidated Balance Sheets As At June 30, 2012 (Unaudited) Expressed in Thousands of US Dollars (except per share amounts and number of shares) December 31, June 30, 2012 2011 (Unaudited) (Audited) ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Assets Current Cash and cash equivalents $ 233 $ 698 Trade and other receivables 17,366 12,515 Inventories 23,392 21,589 Derivative financial instruments 125 - ---------------------------------------------------------------------------- 41,116 34,802 ---------------------------------------------------------------------------- Property, Plant and Equipment 24,408 19,848 ---------------------------------------------------------------------------- Intangible Assets 34,843 27,319 ---------------------------------------------------------------------------- Goodwill 14,135 6,680 ---------------------------------------------------------------------------- Deferred Income Tax Assets 5,305 3,793 ---------------------------------------------------------------------------- $ 119,807 $ 92,442 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Liabilities Current Trade and other payables 8,628 7,123 Borrowings 14,727 11,026 Derivative financial instrument - 256 Provisions 368 1,015 Other liabilities 653 444 Income taxes payable 784 168 Preference shares 45 46 ---------------------------------------------------------------------------- 25,205 20,078 ---------------------------------------------------------------------------- Borrowings 32,339 16,526 ---------------------------------------------------------------------------- Derivative Financial Instrument 571 - ---------------------------------------------------------------------------- Other Liabilities 1,869 1,481 ---------------------------------------------------------------------------- Deferred Income Tax Liabilities 3,841 3,192 ---------------------------------------------------------------------------- Deferred Income Tax Liability on Intangible Assets 10,659 8,650 ---------------------------------------------------------------------------- 74,484 49,927 ---------------------------------------------------------------------------- Equity Attributable to the Shareholders of the Company Capital Stock Authorized without limit as to number - Preference shares (without par value) common shares Issued - 18,068,052 common shares (December 31, 2011 - 18,061,784) 17,694 17,680 ---------------------------------------------------------------------------- Contributed Surplus 3,772 3,429 ---------------------------------------------------------------------------- Accumulated Other Comprehensive Loss (2,516) (2,135) ---------------------------------------------------------------------------- Retained Earnings 26,373 23,541 ---------------------------------------------------------------------------- 45,323 42,515 ---------------------------------------------------------------------------- $ 119,807 $ 92,442 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Opta Minerals Inc. Interim Condensed Consolidated Statements of Income For the Three Months Ended June 30, 2012 and 2011 (Unaudited) Expressed in Thousands of US Dollars (except per share amounts) June 30, June 30, 2012 2011 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Revenue $ 31,214 $ 24,787 Cost of Goods Sold 24,344 19,320 ---------------------------------------------------------------------------- Gross Profit 6,870 5,467 ---------------------------------------------------------------------------- Expenses Selling, general and administrative 4,862 3,554 Other expense (income) 484 (130) ---------------------------------------------------------------------------- 5,346 3,424 ---------------------------------------------------------------------------- Operating Profit 1,524 2,043 Finance expense 763 408 ---------------------------------------------------------------------------- Profit Before Income Taxes 761 1,635 Income taxes (561) 600 ---------------------------------------------------------------------------- Profit for the Period Attributable to the Shareholders of the Company $ 1,322 $ 1,035 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Earnings per share for the period - basic and diluted 0.07 0.06 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Opta Minerals Inc. Interim Condensed Consolidated Statements of Income For the Six Months Ended June 30, 2012 and 2011 (Unaudited) Expressed in Thousands of US Dollars (except per share amounts) June 30, June 30, 2012 2011 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Revenue $ 59,546 $ 46,393 Cost of Goods Sold 46,429 35,739 ---------------------------------------------------------------------------- Gross Profit 13,117 10,654 ---------------------------------------------------------------------------- Expenses Selling, general and administrative 8,480 6,741 Other expense (income) 262 (574) ---------------------------------------------------------------------------- 8,742 6,167 ---------------------------------------------------------------------------- Operating Profit 4,375 4,487 Finance expense 1,419 821 ---------------------------------------------------------------------------- Profit Before Income Taxes 2,956 3,666 Income taxes 124 1,208 ---------------------------------------------------------------------------- Profit for the Period Attributable to the Shareholders of the Company $ 2,832 $ 2,458 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Earnings per share for the period - basic and diluted 0.15 0.14 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Opta Minerals Inc. Interim Condensed Consolidated Statements of Comprehensive Income For the Three Months Ended June 30, 2012 and 2011 (Unaudited) Expressed in Thousands of US Dollars June 30, June 30, 2012 2011 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Profit for the Period Attributable to the Shareholders of the Company $ 1,322 $ 1,035 Other Comprehensive Income Unrealized (loss) gain on translation of foreign operations (348) 263 Unrealized (loss) gain on derivative financial instruments (124) 81 ---------------------------------------------------------------------------- Other comprehensive (loss) income, net of tax (472) 344 ---------------------------------------------------------------------------- Comprehensive Income Attributable to the Shareholders of the Company $ 850 $ 1,379 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Opta Minerals Inc. Interim Condensed Consolidated Statements of Comprehensive Income For the Six Months Ended June 30, 2012 and 2011 (Unaudited) Expressed in Thousands of US Dollars June 30, June 30, 2012 2011 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Profit for the Period Attributable to the Shareholders of the Company $ 2,832 $ 2,458 Other Comprehensive Income Unrealized (loss) gain on translation of foreign operations (208) 535 Unrealized (loss) gain on derivative financial instruments (173) 178 ---------------------------------------------------------------------------- Other comprehensive (loss) income, net of tax (381) 713 ---------------------------------------------------------------------------- Comprehensive Income Attributable to the Shareholders of the Company $ 2,451 $ 3,171 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Opta Minerals Inc. Interim Condensed Consolidated Statements of Changes in Equity For the Six Months Ended June 30, 2012 and 2011 (Unaudited) Expressed in Thousands of US Dollars (except number of shares) Number of Contributed Shares - Surplus - AOCI(i) - Capital Capital Share-based Cash Flow Stock Stock Payments Hedge ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- At January 1, 2012 18,061,784 $ 17,680 $ 3,429 $ (193) ---------------------------------------------------------------------------- Comprehensive Income Profit for the period - - - - Unrealized loss on translation of foreign operations - - - - Unrealized loss on financial derivative designated as a cash flow hedge - - - (173) ---------------------------------------------------------------------------- Total Comprehensive Income - - - (173) ---------------------------------------------------------------------------- Transactions with Shareholders Employee share purchase plan 6,268 14 - - Share-based payment expense - - 343 - ---------------------------------------------------------------------------- Total Transactions with Shareholders 6,268 14 343 - ---------------------------------------------------------------------------- At June 30, 2012 18,068,052 17,694 3,772 (366) ---------------------------------------------------------------------------- At January 1, 2011 18,036,974 17,632 2,781 (596) ---------------------------------------------------------------------------- Comprehensive Income Profit for the period - - - - Unrealized gain on translation of foreign operations - - - - Unrealized gain on financial derivative designated as a cash flow hedge - - - 178 ---------------------------------------------------------------------------- Total Comprehensive Income - - - 178 ---------------------------------------------------------------------------- Transactions with Shareholders Employee share purchase plan 4,807 10 - - Share-based payment expense - - 270 - ---------------------------------------------------------------------------- Total Transactions with Shareholders 4,807 10 270 - ---------------------------------------------------------------------------- At June 30, 2011 18,041,781 $ 17,642 $ 3,051 $ (418) ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Opta Minerals Inc. Interim Condensed Consolidated Statements of Changes in Equity For the Six Months Ended June 30, 2012 and 2011 (Unaudited) Expressed in Thousands of US Dollars (except number of shares) AOCI(i) - Foreign Currency Translation Retained Total Reserve Earnings Equity ------------------------------------------------------------------- ------------------------------------------------------------------- At January 1, 2012 $ (1,942) $ 23,541 $ 42,515 ------------------------------------------------------------------- Comprehensive Income Profit for the period - 2,832 2,832 Unrealized loss on translation of foreign operations (208) - (208) Unrealized loss on financial derivative designated as a cash flow hedge - - (173) ------------------------------------------------------------------- Total Comprehensive Income (208) 2,832 2,451 ------------------------------------------------------------------- Transactions with Shareholders Employee share purchase plan - - 14 Share-based payment expense - - 343 ------------------------------------------------------------------- Total Transactions with Shareholders - - 357 ------------------------------------------------------------------- At June 30, 2012 (2,150) 26,373 45,323 ------------------------------------------------------------------- At January 1, 2011 (1,844) 19,891 37,864 ------------------------------------------------------------------- Comprehensive Income Profit for the period - 2,458 2,458 Unrealized gain on translation of foreign operations 535 - 535 Unrealized gain on financial derivative designated as a cash flow hedge - - 178 ------------------------------------------------------------------- Total Comprehensive Income 535 2,458 3,171 ------------------------------------------------------------------- Transactions with Shareholders Employee share purchase plan - - 10 Share-based payment expense - - 270 ------------------------------------------------------------------- Total Transactions with Shareholders - - 280 ------------------------------------------------------------------- At June 30, 2011 $ (1,309) $ 22,349 $ 41,315 ------------------------------------------------------------------- ------------------------------------------------------------------- (i)AOCI - Accumulated Other Comprehensive Income Opta Minerals Inc. Interim Condensed Consolidated Statements of Cash Flows For the Six Months Ended June 30, 2012 and 2011 (Unaudited) Expressed in Thousands of US Dollars June 30, June 30, 2012 2011 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Cash Provided by (Used in) - Operating Activities Profit for the period $ 2,832 $ 2,458 Items not affecting cash: Depreciation of property, plant and equipment 1,419 1,061 Amortization of intangible assets 1,257 1,004 Share-based payment expense 343 270 Non-cash finance expense - (9) Deferred income taxes (1,554) (354) Loss on disposal of property, plant and equipment - 4 ---------------------------------------------------------------------------- 4,297 4,434 Changes in non-cash working capital Trade and other receivables (4,369) (2,325) Inventories (1,446) (3,502) Trade and other payables 827 951 Provisions (647) (484) Income taxes payable 610 531 ---------------------------------------------------------------------------- (728) (395) ---------------------------------------------------------------------------- Financing Activities Proceeds from issuance of common shares - net of issuance costs 14 10 Proceeds from borrowings, net of deferred financing costs 20,988 4,102 Repayment of finance lease liability (121) (55) Repayment of borrowings (1,835) (1,274) ---------------------------------------------------------------------------- 19,046 2,783 ---------------------------------------------------------------------------- Investing Activities Proceeds on disposal of property, plant and equipment - 2 Acquisition of subsidiary (17,530) - Additions to property, plant and equipment (1,217) (812) Additions to intangible assets (25) (66) ---------------------------------------------------------------------------- (18,772) (876) ---------------------------------------------------------------------------- Foreign Exchange (Loss) Gain on Cash Held in Foreign Currency (11) 26 ---------------------------------------------------------------------------- (Decrease) increase in Cash and Cash Equivalents (465) 1,538 Cash and Cash Equivalents Beginning of Period 698 495 ---------------------------------------------------------------------------- End of Period $ 233 $ 2,033 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Additional Cash Flows Information: Interest paid $ 1,435 $ 861 Income taxes paid 1,033 1,033 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Opta Minerals Inc. Segmented Information For the Three Months Ended June 30, 2012 and 2011 (Unaudited) Expressed in Thousands of US Dollars Intersegment revenues are recorded at transaction prices, which approximate cost. The Company's assets, operations and employees are located in Canada, the United States and Europe. Three Months Ended June 30, 2012 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Abrasive Mill and Products Foundry Manu- Products facturing and and Distribution Services Operations Unallocated Total ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- External revenue by market Canada $ 6,880 $ 1,613 $ - $ 8,493 US 13,995 4,596 - 18,591 Europe 4,062 14 - 4,076 Other 20 34 - 54 ---------------------------------------------------------------------------- Total revenue from external customers 24,957 6,257 - 31,214 ---------------------------------------------------------------------------- Segment profit before interest expense and income taxes 2,239 (187) (528) 1,524 Finance expense - - - (763) Income taxes - - - 561 Profit for the period - - - 1,322 ---------------------------------------------------------------------------- Depreciation of property, plant and equipment 396 297 38 731 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Amortization of intangible assets 601 - 48 649 Expenditures on property, plant and equipment $ 390 $ 153 $ 63 $ 606 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Opta Minerals Inc. Segmented Information For the Three Months Ended June 30, 2012 and 2011 (Unaudited) Expressed in Thousands of US Dollars Three Months Ended June 30, 2011 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Abrasive Mill and Products Foundry Manu- Products facturing and and Distribution Services Operations Unallocated Total ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- External revenue by market Canada $ 2,496 $ 1,638 $ - $ 4,134 US 10,975 5,549 - 16,524 Europe 4,057 - - 4,057 Other 43 29 - 72 ---------------------------------------------------------------------------- Total revenue from external customers 17,571 7,216 - 24,787 ---------------------------------------------------------------------------- Segment profit before interest expense and 2,492 (221) (228) 2,043 income taxes Finance expense - - - (408) Income taxes - - - (600) Profit for the period - - - 1,035 ---------------------------------------------------------------------------- Total assets as at June 30, 2011 57,493 33,654 3,968 95,115 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Depreciation of property, plant and equipment 235 283 23 541 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Amortization of intangible assets 462 7 39 508 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Goodwill and intangible assets as at June 30, 2011 31,438 3,571 427 35,436 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Expenditures on property, plant and equipment $ 389 $ 116 $ 6 $ 511 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- External revenue by market is attributed to countries based on location of the customer. Included in the mill and foundry products and services segment is revenue from one customer that individually exceeds 10% of the Company's revenue. Opta Minerals Inc. Segmented Information For the Six Months Ended June 30, 2012 and 2011 (Unaudited) Expressed in Thousands of US Dollars External revenue by market is attributed to countries based on location of the customer. Included in the mill and foundry products and services segment is revenue from one customer that individually exceeds 10% of the Company's revenue. Six Months Ended June 30, 2012 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Abrasive Mill and Products Foundry Manu- Products facturing and and Distribution Services Operations Unallocated Total ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- External revenue by market Canada $ 11,887 $ 2,878 $ - $ 14,765 US 27,317 9,316 - 36,633 Europe 8,039 14 - 8,053 Other 21 74 - 95 ---------------------------------------------------------------------------- Total revenue from external customers 47,264 12,282 - 59,546 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Segment profit before interest expense and income taxes 5,735 (523) (837) 4,375 Finance expense - - - (1,419) Income taxes - - - (124) Profit for the period - - - 2,832 ---------------------------------------------------------------------------- Total assets as at June 30, 2012 82,426 33,659 3,722 119,807 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Depreciation of property, plant and equipment 756 590 73 1,419 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Amortization of intangible assets 1,155 6 96 1,257 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Goodwill and intangible assets as at June 30, 2012 45,153 3,552 273 48,978 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Expenditures on property, plant and equipment $ 680 $ 418 $ 119 $ 1,217 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Opta Minerals Inc. Segmented Information For the Six Months Ended June 30, 2012 and 2011 (Unaudited) Expressed in Thousands of US Dollars Six Months Ended June 30, 2011 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Abrasive Mill and Products Foundry Manu- Products facturing and and Distribution Services Operations Unallocated Total External revenue by market Canada $ 4,316 $ 3,089 $ - $ 7,405 US 21,646 9,619 - 31,265 Europe 7,651 - - 7,651 Other 43 29 - 72 ---------------------------------------------------------------------------- Total revenue from external customers 33,656 12,737 - 46,393 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Segment profit before interest expense and income taxes 5,277 (836) 46 4,487 Finance expense - - - (821) Income taxes - - - (1,208) Profit for the period - - - 2,458 ---------------------------------------------------------------------------- Depreciation of property, plant and equipment 459 549 53 1,061 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Amortization of intangible assets 915 13 76 1,004 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Expenditures on property, plant and equipment $ 494 $ 258 $ 60 $ 812 ---------------------------------------------------------------------------- ----------------------------------------------------------------------------
Contacts: Opta Minerals Inc. David Kruse Chief Executive Officer 905-689-7361, ext 405 Opta Minerals Inc. Peter Fryters Chief Financial Officer and Secretary 905-689-7361, ext 405 investor_relations@optaminerals.com www.optaminerals.com
Source: Opta Minerals Inc.
