Unaudited condensed consolidated interim financial statements
LifeWorks Inc.
(Formerly Morneau Shepell Inc.)
Three and six months ended June 30, 2021 and 2020
(In thousands of Canadian dollars)
Unaudited condensed consolidated interim financial statements
Unaudited condensed consolidated interim statements of financial position
As at June 30, 2021 and December 31, 2020
(In thousands of Canadian dollars) | June 30, 2021 | December 31, 2020 | ||
Assets | ||||
Current assets: | ||||
Cash (note 8) | $ | 16,240 | $ | 8,736 |
Trade and other receivables | 110,393 | 98,684 | ||
Unbilled fees | 102,031 | 97,823 | ||
Finance lease receivables | 1,439 | 1,396 | ||
Prepaid expenses and other | 16,323 | 14,429 | ||
Cash and investments held in trust | 15,298 | 11,351 | ||
Income taxes receivable | - | 4,753 | ||
Deferred implementation costs | 15,296 | 13,273 | ||
Total return swaps (note 9) | 203 | - | ||
Total current assets | 277,223 | 250,445 | ||
Non-current assets: | ||||
Deferred implementation costs | 58,891 | 60,356 | ||
Finance lease receivables | 778 | 1,391 | ||
Capital assets | 153,071 | 157,503 | ||
Intangible assets (note 11) | 377,985 | 452,538 | ||
Goodwill | 588,871 | 585,879 | ||
Investments in joint ventures | 7,305 | 6,394 | ||
Interest rate swaps (note 9) | 302 | - | ||
Total non-current assets | 1,187,203 | 1,264,061 | ||
Total assets | $ | 1,464,426 | $ | 1,514,506 |
See accompanying notes to the unaudited condensed consolidated interim financial statements.
LifeWorks Inc. | Q2, 2021 | 1 |
Unaudited condensed consolidated interim financial statements
Unaudited condensed consolidated interim statements of financial position (continued)
As at June 30, 2021 and December 31, 2020
(In thousands of Canadian dollars) | June 30, 2021 | December 31, 2020 | ||
Liabilities and equity | ||||
Current liabilities: | ||||
Bank indebtedness (note 8) | $ | 11,082 | $ | 12,784 |
Dividends payable | 4,477 | 4,470 | ||
Trade and other payables | 92,176 | 93,646 | ||
Deferred revenue | 17,738 | 18,258 | ||
Short-term debt (note 4) | 99,871 | - | ||
Insurance premium liabilities | 15,298 | 11,351 | ||
Interest rate swaps (note 9) | 2,783 | 2,786 | ||
Future consideration related to acquisitions (note 9) | 2,862 | 505 | ||
Provisions | 4,958 | 4,100 | ||
Income taxes payable | 1,263 | - | ||
Lease liabilities | 21,701 | 19,506 | ||
Total current liabilities | 274,209 | 167,406 | ||
Non-current liabilities: | ||||
Deferred revenue | 30,620 | 26,408 | ||
Long-term debt (note 4) | 343,394 | 411,924 | ||
Interest rate swaps (note 9) | 2,147 | 4,150 | ||
Future consideration related to acquisitions (note 9) | 789 | 49 | ||
Provisions | 7,955 | 8,964 | ||
Deferred tax liability | 94,828 | 116,254 | ||
Lease liabilities | 115,238 | 122,644 | ||
Total non-current liabilities | 594,971 | 690,393 | ||
Equity: | ||||
Share capital | 924,617 | 922,189 | ||
Contributed surplus | 26,362 | 25,481 | ||
Accumulated other comprehensive loss | (17,274) | (9,977) | ||
Deficit | (338,459) | (280,986) | ||
Total equity | 595,246 | 656,707 | ||
Total liabilities and equity | $ | 1,464,426 | $ | 1,514,506 |
See accompanying notes to the unaudited condensed consolidated interim financial statements.
2 LifeWorks Inc. | Q2, 2021
Unaudited condensed consolidated interim financial statements
Unaudited condensed consolidated interim statements of (loss) income and comprehensive (loss) income
For the three and six months ended June 30, 2021 and 2020
Three months ended June 30, | Six months ended June 30, | |||||||
(In thousands of Canadian dollars, except per share amounts) | 2021 | 2020 | 2021 | 2020 | ||||
Operating revenue (note 10) | $ | 257,734 | $ | 246,175 | $ | 514,873 | $ | 489,223 |
Operating expenses: | ||||||||
Salaries, benefits and contractors | 179,152 | 164,632 | 356,014 | 328,957 | ||||
Other operating expenses | 35,679 | 37,420 | 69,286 | 74,837 | ||||
Depreciation and amortization (note 11) | 95,568 | 26,223 | 122,785 | 52,462 | ||||
Total operating expenses | 310,399 | 228,275 | 548,085 | 456,256 | ||||
Finance costs | 5,695 | 6,861 | 11,629 | 14,297 | ||||
Gain on business divestiture | - | - | - | 39,843 | ||||
Share of income of joint ventures | 452 | 92 | 968 | 102 | ||||
(Loss) profit before income taxes | (57,908) | 11,131 | (43,873) | 58,615 | ||||
Income taxes: | ||||||||
Current | (153) | 2,306 | 4,725 | 7,665 | ||||
Deferred (note 11) | (16,948) | 567 | (17,964) | 3,787 | ||||
Total income tax (recovery) expense | (17,101) | 2,873 | (13,239) | 11,452 | ||||
(Loss) profit for the period | (40,807) | 8,258 | (30,634) | 47,163 | ||||
Other comprehensive (loss) income: | ||||||||
Items that may be reclassified subsequently to profit: | ||||||||
Effective portion of change in total return swaps and | ||||||||
interest rate cash flow hedges (note 9) | 1,242 | (270) | 2,445 | (5,734) | ||||
Foreign currency translation differences for | ||||||||
foreign operations | (4,945) | (15,421) | (9,084) | 11,109 | ||||
Income tax (recovery) expense on the above items | (340) | 72 | (667) | 1,520 | ||||
(4,043) | (15,619) | (7,306) | 6,895 | |||||
Items that will not be reclassified to profit: | ||||||||
Actuarial (loss) gain on post-employment benefit plans | (4) | (131) | 12 | 103 | ||||
Income tax expense (recovery) on the above item | 1 | 34 | (3) | (28) | ||||
(3) | (97) | 9 | 75 | |||||
Other comprehensive (loss) income, net of tax effect | (4,046) | (15,716) | (7,297) | 6,970 | ||||
Comprehensive (loss) income for the period | $ | (44,853) | $ | (7,458) | $ | (37,931) | $ | 54,133 |
(Loss) earnings per share (note 6): | ||||||||
Basic | $ | (0.58) | $ | 0.12 | $ | (0.44) | $ | 0.68 |
Diluted | $ | (0.58) | $ | 0.12 | $ | (0.44) | $ | 0.67 |
See accompanying notes to the unaudited condensed consolidated interim financial statements.
LifeWorks Inc. | Q2, 2021 | 3 |
Unaudited condensed consolidated interim financial statements
Unaudited condensed consolidated interim statements of changes in equity
For the six months ended June 30, 2021 and 2020
2021 | Accumulated | |||||||||||||
Share | Contributed | other compre- | Total | |||||||||||
(In thousands of Canadian dollars) | capital | surplus | Deficit | hensive loss | equity | |||||||||
Balance, January 1, 2021 | $ | 922,189 | $ | 25,481 | $ (280,986) | $ | (9,977) | $ | 656,707 | |||||
Long-term incentive plan - issuance | - | 3,235 | - | - | 3,235 | |||||||||
Long-term incentive plan - redemption, | ||||||||||||||
net of taxes | 2,428 | (2,354) | - | - | 74 | |||||||||
Loss for the period | - | - | (30,634) | - | (30,634) | |||||||||
Dividends (note 5) | - | - | (26,839) | - | (26,839) | |||||||||
Other comprehensive loss | - | - | - | (7,297) | (7,297) | |||||||||
Balance, June 30, 2021 | $ | 924,617 | $ | 26,362 | $ (338,459) | $ (17,274) | $ | 595,246 | ||||||
Equity | Accumu- | |||||||||||||
2020 | component of | lated other | ||||||||||||
Share | Contributed | convertible | comprehensive | Total | ||||||||||
(In thousands of Canadian dollars) | capital | surplus | Deficit | debentures | income | equity | ||||||||
Balance, January 1, 2020 | $ | 872,981 | $ | 27,667 | $ | (283,551) | $ | 495 | $ | 796 | $ | 618,388 | ||
Long-term incentive plan - issuance | - | 3,672 | - | - | - | 3,672 | ||||||||
Long-term incentive plan - redemption, | ||||||||||||||
net of taxes | 5,267 | (5,184) | - | - | - | 83 | ||||||||
Shares issued upon conversion of | ||||||||||||||
convertible debentures | 39,672 | - | - | (495) | - | 39,177 | ||||||||
Profit for the period | - | - | 47,163 | - | - | 47,163 | ||||||||
Dividends (note 5) | - | - | (26,614) | - | - | (26,614) | ||||||||
Other comprehensive income | - | - | - | - | 6,970 | 6,970 | ||||||||
Balance, June 30, 2020 | $ | 917,920 | $ | 26,155 | $ | (263,002) | $ | - | $ | 7,766 | $ | 688,839 |
See accompanying notes to the unaudited condensed consolidated interim financial statements.
4 LifeWorks Inc. | Q2, 2021
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LifeWorks Inc. published this content on 12 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 August 2021 08:03:04 UTC.