Highlights | ||||||||
In millions of Canadian dollars (except earnings per share) | Q2-20 | Q2-19 | YTD-20 | YTD-19 | ||||
Revenue | ||||||||
Gross profit | 34.0 | 28.9 | 64.7 | 52.3 | ||||
As percentage of revenue | 28.1% | 27.4% | 27.1% | 25.7% | ||||
EBITDA(1) | 20.5 | 15.6 | 38.4 | 25.7 | ||||
As percentage of revenue | 16.9% | 14.8% | 16.1% | 12.6% | ||||
Net earnings | 7.3 | 3.3 | 13.3 | 0.8 | ||||
Earnings per share | 0.09 | 0.04 | 0.17 | 0.01 | ||||
(1) Earnings before interest, taxes, depreciation and amortization (see “non-IFRS financial measure”) |
- Quarterly revenue was
$121.2 million , up 15% from the same quarter last year.
- Gross margin percentage for the quarter was 28.1%, compared to 27.4% for the corresponding period last year.
- EBITDA was up more than 30% to
$20.5 million for the quarter as compared to the same period last year (the impact of IFRS 16 Leases (“IFRS 16”) was minimal at$0.5 million ).
- Net earnings were
$7.3 million or$0.09 per share for the quarter, compared to$3.3 million or$0.04 per share for the prior year quarter.
- Net cash is up
$12.8 million during the quarter to$22.5 million .
“Demand for our services continued to grow in all of our regions this quarter, driven primarily by market share growth as customers value our specialized expertise and safety culture,” said
“The Company’s EBITDA increased by 30% with a 15% revenue growth, demonstrating the Company’s operational leverage. We continue to reap productivity benefits from the tools we’ve developed over the last few years and from our enhanced training and skilled labour force. Also, our administrative costs remained relatively stable despite the revenue growth.”
“The Company improved its net cash position by
“We are continuing to improve the suite of services we offer our customers with new innovative solutions and improved equipment, through increased hands-free rod handling capacity, computerized rigs and deep hole capacity. We have established mutually beneficial partnerships with several of our senior customers to develop these innovative solutions.”
“It is important to note that we are now in our third quarter, traditionally the weakest quarter of our fiscal year, as mining and exploration companies shut down, often for extended periods over the holiday season. As usual, due to the time it takes to mobilize once new contracts are awarded, a slow start-up pace is expected in January and February. Additionally, the Company schedules substantial overhaul and maintenance work on its equipment during this slower period. These factors result in reduced revenue, increased costs, and reduced margins in the third quarter,” said
“Following the end of the second quarter, on
“Looking forward to the fourth quarter and beyond, senior customers are still working through their budget process and have yet to decide on post-holiday exploration plans. The price of gold, which historically has accounted for approximately 50% of the Company’s drilling activity, has remained above
“Finally, I am pleased to announce that Ms.
Second Quarter Ended
Total revenue for the quarter was
Revenue for the quarter from
South and Central American revenue increased by 2% to
Asian and African operations reported revenue of
The overall gross margin percentage for the quarter was 28.1%, compared to 27.4% for the same period last year. A good operational quarter, somewhat strengthened by a one-time revenue adjustment from escalation and currency clauses on one of our contracts, contributed to the margin growth.
General and administrative costs were
Net earnings were
Non-IFRS Financial Measure
The Company uses the non-IFRS financial measure, EBITDA. The Company believes this non-IFRS financial measure is key, for both management and investors, in evaluating performance at a consolidated level. EBITDA is commonly reported and widely used by investors and lending institutions as an indicator of a company’s operating performance and ability to incur and service debt, and as a valuation metric. This measure does not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similarly titled measures presented by other publicly traded companies, and should not be construed as an alternative to other financial measures determined in accordance with IFRS.
Forward-Looking Statements
Some of the statements contained in this news release may be forward-looking statements, such as, but not limited to, those relating to: worldwide demand for gold and base metals and overall commodity prices; the level of activity in the mining industry and the demand for the Company’s services; the Canadian and international economic environments; the Company’s ability to attract and retain customers and to manage its assets and operating costs; sources of funding for its clients (particularly for junior mining companies); competitive pressures; currency movements (which can affect the Company’s revenue in Canadian dollars); the geographic distribution of the Company’s operations; the impact of operational changes; changes in jurisdictions in which the Company operates (including changes in regulation); failure by counterparties to fulfill contractual obligations; and other factors as may be set forth as well as objectives or goals including words to the effect that the Company or management expects a stated condition to exist or occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements by reason of factors such as, but not limited to, the factors set out in the discussion on pages 14 to 18 of the 2019 Annual Report entitled “General Risks and Uncertainties”, and such other documents as available on SEDAR at www.sedar.com. All such factors should be considered carefully when making decisions with respect to the Company. The Company does not undertake to update any forward-looking statements, including those statements that are incorporated by reference herein, whether written or oral, that may be made from time to time by or on its behalf, except in accordance with applicable securities laws.
About Major Drilling
Webcast/Conference Call Information
To participate in the conference call, please dial 416-340-2216 and ask for Major Drilling’s Second Quarter Results Conference Call. To ensure your participation, please call in approximately five minutes prior to the scheduled start of the call.
For those unable to participate, a taped rebroadcast will be available approximately one hour after the completion of the call until midnight,
For further information:
Tel: (506) 857-8636
Fax: (506) 857-9211
ir@majordrilling.com
Interim Condensed Consolidated Statements of Operations | ||||||||||||||||
(in thousands of Canadian dollars, except per share information) | ||||||||||||||||
(unaudited) | ||||||||||||||||
Three months ended | Six months ended | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
TOTAL REVENUE | $ | 121,182 | $ | 105,501 | $ | 238,641 | $ | 203,986 | ||||||||
DIRECT COSTS | 87,164 | 76,570 | 173,933 | 151,655 | ||||||||||||
GROSS PROFIT | 34,018 | 28,931 | 64,708 | 52,331 | ||||||||||||
OPERATING EXPENSES | ||||||||||||||||
General and administrative | 11,466 | 11,244 | 23,235 | 23,642 | ||||||||||||
Other expenses | 1,575 | 1,257 | 2,733 | 2,296 | ||||||||||||
Gain on disposal of property, plant and equipment | (19 | ) | (107 | ) | (144 | ) | (286 | ) | ||||||||
Foreign exchange loss | 541 | 918 | 466 | 944 | ||||||||||||
Finance costs | 204 | 208 | 423 | 451 | ||||||||||||
Depreciation of property, plant and equipment | 9,972 | 10,131 | 19,689 | 21,275 | ||||||||||||
23,739 | 23,651 | 46,402 | 48,322 | |||||||||||||
EARNINGS BEFORE INCOME TAX | 10,279 | 5,280 | 18,306 | 4,009 | ||||||||||||
INCOME TAX - PROVISION (RECOVERY) (note 7) | ||||||||||||||||
Current | 3,553 | 2,821 | 5,447 | 5,577 | ||||||||||||
Deferred | (533 | ) | (802 | ) | (433 | ) | (2,347 | ) | ||||||||
3,020 | 2,019 | 5,014 | 3,230 | |||||||||||||
NET EARNINGS | $ | 7,259 | $ | 3,261 | $ | 13,292 | $ | 779 | ||||||||
EARNINGS PER SHARE (note 8) | ||||||||||||||||
Basic | $ | 0.09 | $ | 0.04 | $ | 0.17 | $ | 0.01 | ||||||||
Diluted | $ | 0.09 | $ | 0.04 | $ | 0.17 | $ | 0.01 |
Interim Condensed Consolidated Statements of Comprehensive Earnings | ||||||||||||||||
(in thousands of Canadian dollars) | ||||||||||||||||
(unaudited) | ||||||||||||||||
Three months ended | Six months ended | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
NET EARNINGS | $ | 7,259 | $ | 3,261 | $ | 13,292 | $ | 779 | ||||||||
OTHER COMPREHENSIVE EARNINGS | ||||||||||||||||
Items that may be reclassified subsequently to profit or loss | ||||||||||||||||
Unrealized (loss) gain on foreign currency translations (net of tax) | (2,383 | ) | (223 | ) | (8,139 | ) | 2,304 | |||||||||
Unrealized gain (loss) on derivatives (net of tax) | 768 | (199 | ) | 936 | (341 | ) | ||||||||||
COMPREHENSIVE EARNINGS | $ | 5,644 | $ | 2,839 | $ | 6,089 | $ | 2,742 |
Interim Condensed Consolidated Statements of Changes in Equity | ||||||||||||||||||||||||
For the six months ended | ||||||||||||||||||||||||
(in thousands of Canadian dollars) | ||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Share-based | Retained | Foreign currency | ||||||||||||||||||||||
Share capital | Reserves | payments reserve | earnings | translation reserve | Total | |||||||||||||||||||
BALANCE AS AT | $ | 241,264 | $ | 36 | $ | 19,721 | $ | 41,360 | $ | 70,021 | $ | 372,402 | ||||||||||||
Share-based compensation | - | - | 277 | - | - | 277 | ||||||||||||||||||
241,264 | 36 | 19,998 | 41,360 | 70,021 | 372,679 | |||||||||||||||||||
Comprehensive earnings: | ||||||||||||||||||||||||
Net earnings | - | - | - | 779 | - | 779 | ||||||||||||||||||
Unrealized gain on foreign currency translations | - | - | - | - | 2,304 | 2,304 | ||||||||||||||||||
Unrealized loss on derivatives | - | (341 | ) | - | - | - | (341 | ) | ||||||||||||||||
Total comprehensive earnings | - | (341 | ) | - | 779 | 2,304 | 2,742 | |||||||||||||||||
BALANCE AS AT | $ | 241,264 | $ | (305 | ) | $ | 19,998 | $ | 42,139 | $ | 72,325 | $ | 375,421 | |||||||||||
BALANCE AS AT | $ | 241,264 | $ | (570 | ) | $ | 20,247 | $ | 23,276 | $ | 78,783 | $ | 363,000 | |||||||||||
Share-based compensation | - | - | 141 | - | - | 141 | ||||||||||||||||||
241,264 | (570 | ) | 20,388 | 23,276 | 78,783 | 363,141 | ||||||||||||||||||
Comprehensive earnings: | ||||||||||||||||||||||||
Net earnings | - | - | - | 13,292 | - | 13,292 | ||||||||||||||||||
Unrealized loss on foreign currency translations | - | - | - | - | (8,139 | ) | (8,139 | ) | ||||||||||||||||
Unrealized gain on derivatives | - | 936 | - | - | - | 936 | ||||||||||||||||||
Total comprehensive earnings | - | 936 | - | 13,292 | (8,139 | ) | 6,089 | |||||||||||||||||
BALANCE AS AT | $ | 241,264 | $ | 366 | $ | 20,388 | $ | 36,568 | $ | 70,644 | $ | 369,230 |
Interim Condensed Consolidated Statements of Cash Flows | ||||||||||||||||
(in thousands of Canadian dollars) | ||||||||||||||||
(unaudited) | ||||||||||||||||
Three months ended | Six months ended | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
OPERATING ACTIVITIES | ||||||||||||||||
Earnings before income tax | $ | 10,279 | $ | 5,280 | $ | 18,306 | $ | 4,009 | ||||||||
Operating items not involving cash | ||||||||||||||||
Depreciation of property, plant and equipment | 9,972 | 10,131 | 19,689 | 21,275 | ||||||||||||
Gain on disposal of property, plant and equipment | (19 | ) | (107 | ) | (144 | ) | (286 | ) | ||||||||
Share-based compensation | 51 | 128 | 141 | 277 | ||||||||||||
Finance costs recognized in earnings before income tax | 204 | 208 | 423 | 451 | ||||||||||||
20,487 | 15,640 | 38,415 | 25,726 | |||||||||||||
Changes in non-cash operating working capital items | 982 | (614 | ) | (4,632 | ) | (3,547 | ) | |||||||||
Finance costs paid | (204 | ) | (208 | ) | (423 | ) | (451 | ) | ||||||||
Income taxes paid | (2,750 | ) | (2,545 | ) | (4,604 | ) | (4,557 | ) | ||||||||
Cash flow from operating activities | 18,515 | 12,273 | 28,756 | 17,171 | ||||||||||||
FINANCING ACTIVITIES | ||||||||||||||||
Repayment of lease liabilities (note 3) | (544 | ) | - | (844 | ) | - | ||||||||||
Repayment of long-term debt | (291 | ) | (538 | ) | (556 | ) | (1,273 | ) | ||||||||
Cash flow used in financing activities | (835 | ) | (538 | ) | (1,400 | ) | (1,273 | ) | ||||||||
INVESTING ACTIVITIES | ||||||||||||||||
Acquisition of property, plant and equipment (note 6) | (5,543 | ) | (7,025 | ) | (16,108 | ) | (12,851 | ) | ||||||||
Proceeds from disposal of property, plant and equipment | 462 | 7,075 | 728 | 7,766 | ||||||||||||
Cash flow (used in) from investing activities | (5,081 | ) | 50 | (15,380 | ) | (5,085 | ) | |||||||||
Effect of exchange rate changes | (60 | ) | 427 | 38 | 900 | |||||||||||
INCREASE IN CASH | 12,539 | 12,212 | 12,014 | 11,713 | ||||||||||||
CASH, BEGINNING OF THE PERIOD | 26,841 | 20,757 | 27,366 | 21,256 | ||||||||||||
CASH, END OF THE PERIOD | $ | 39,380 | $ | 32,969 | $ | 39,380 | $ | 32,969 |
Interim Condensed Consolidated Balance Sheets | ||||||||
As at | ||||||||
(in thousands of Canadian dollars) | ||||||||
(unaudited) | ||||||||
ASSETS | ||||||||
CURRENT ASSETS | ||||||||
Cash | $ | 39,380 | $ | 27,366 | ||||
Trade and other receivables | 90,687 | 88,029 | ||||||
Note receivable | 304 | 560 | ||||||
Income tax receivable | 2,917 | 3,978 | ||||||
Inventories | 92,291 | 90,325 | ||||||
Prepaid expenses | 6,397 | 5,099 | ||||||
231,976 | 215,357 | |||||||
PROPERTY, PLANT AND EQUIPMENT (note 6) | 160,695 | 164,266 | ||||||
DEFERRED INCOME TAX ASSETS | 23,053 | 23,374 | ||||||
58,050 | 58,300 | |||||||
$ | 473,774 | $ | 461,297 | |||||
LIABILITIES | ||||||||
CURRENT LIABILITIES | ||||||||
Trade and other payables | $ | 66,352 | $ | 63,376 | ||||
Income tax payable | 1,078 | 1,209 | ||||||
Current portion of lease liabilities (note 3) | 1,614 | - | ||||||
Current portion of long-term debt | 977 | 1,060 | ||||||
70,021 | 65,645 | |||||||
LEASE LIABILITIES (note 3) | 3,183 | - | ||||||
LONG-TERM DEBT | 15,860 | 16,298 | ||||||
DEFERRED INCOME TAX LIABILITIES | 15,480 | 16,354 | ||||||
104,544 | 98,297 | |||||||
SHAREHOLDERS' EQUITY | ||||||||
Share capital | 241,264 | 241,264 | ||||||
Reserves | 366 | (570 | ) | |||||
Share-based payments reserve | 20,388 | 20,247 | ||||||
Retained earnings | 36,568 | 23,276 | ||||||
Foreign currency translation reserve | 70,644 | 78,783 | ||||||
369,230 | 363,000 | |||||||
$ | 473,774 | $ | 461,297 | |||||
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTHS ENDED
(in thousands of Canadian dollars, except per share information)
1. NATURE OF ACTIVITIES
2. BASIS OF PRESENTATION
Statement of compliance
These Interim Condensed Consolidated Financial Statements have been prepared in accordance with IAS 34 Interim Financial Reporting (“IAS 34”) as issued by the
On
Basis of consolidation
These Interim Condensed Consolidated Financial Statements incorporate the financial statements of the Company and entities controlled by the Company. Control is achieved when the Company is exposed or has rights to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee.
The results of subsidiaries acquired or disposed of during the period are included in the Interim Condensed Consolidated Statements of Operations from the effective date of acquisition or up to the effective date of disposal, as appropriate.
Intra-group transactions, balances, income and expenses are eliminated on consolidation, where appropriate.
Basis of preparation
These Interim Condensed Consolidated Financial Statements have been prepared based on the historical cost basis except for certain financial instruments that are measured at fair value, using the same accounting policies and methods of computation as presented in the Company’s annual Consolidated Financial Statements for the year ended
3. ADOPTION OF NEW IFRS
The Company adopted IFRS 16 Leases (“IFRS 16”), which replaces IAS 17 Leases, for its annual period beginning
On transition, the Company recognized lease liabilities and right-of-use assets for 14 leases, previously classified as operating leases, in the amount of
Operating lease commitments disclosed as at | $ | 4,147 | ||||
Less: short-term operating lease commitments | (1,006 | ) | ||||
3,141 | ||||||
Discounted using the incremental borrowing rate | (238 | ) | ||||
Lease liabilities recognized as at | 2,903 | |||||
Add: additional lease liabilities recognized during the period | 2,671 | |||||
Finance costs | 67 | |||||
Repayment of lease liabilities | (844 | ) | ||||
4,797 | ||||||
Current portion | 1,614 | |||||
Balance as at | $ | 3,183 |
In prior periods presented, before the adoption of IFRS 16, expenses for lease liabilities were included with general and administrative expenses on the Company’s Statement of Operations.
Right-of-use assets
The recognized right-of-use assets are included in property, plant and equipment on the Company’s Interim Condensed Consolidated Balance Sheet.
Balance as at | $ | 2,903 | ||||
Add: additional right-of-use assets recognized during the period | 2,671 | |||||
Depreciation | (777 | ) | ||||
Balance as at | $ | 4,797 |
4. KEY SOURCES OF ESTIMATION UNCERTAINTY AND CRITICAL ACCOUNTING JUDGMENTS
The preparation of financial statements, in conformity with International Financial Reporting Standards (“IFRS”), requires management to make judgments, estimates and assumptions that are not readily apparent from other sources, which affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods, if the revision affects both current and future periods. Significant areas requiring the use of management estimates relate to the useful lives of property, plant and equipment for depreciation purposes, property, plant and equipment and inventory valuation, determination of income and other taxes, assumptions used in the compilation of share-based payments, fair value of assets acquired and liabilities assumed in business acquisitions, amounts recorded as accrued liabilities and allowance for doubtful accounts, and impairment testing of goodwill.
The Company applied judgment in determining the functional currency of the Company and its subsidiaries, the determination of cash-generating units (“CGUs”), the degree of componentization of property, plant and equipment, the recognition of provisions and accrued liabilities, and the determination of the probability that deferred income tax assets will be realized from future taxable earnings.
5. SEASONALITY OF OPERATIONS
The third quarter (November to January) is normally the Company’s weakest quarter due to the shutdown of mining and exploration activities, often for extended periods over the holiday season.
6. PROPERTY, PLANT AND EQUIPMENT
Capital expenditures for the three and six months ended
7. INCOME TAXES
The income tax provision for the period can be reconciled to accounting earnings before income tax as follows:
Q2 2020 | Q2 2019 | YTD 2020 | YTD 2019 | |||||||||||||
Earnings before income tax | $ | 10,279 | $ | 5,280 | $ | 18,306 | $ | 4,009 | ||||||||
Statutory Canadian corporate income tax rate | 27 | % | 27 | % | 27 | % | 27 | % | ||||||||
Expected income tax provision based on statutory rate | 2,775 | 1,426 | 4,942 | 1,083 | ||||||||||||
Non-recognition of tax benefits related to losses | 277 | 489 | 372 | 1,516 | ||||||||||||
Utilization of previously unrecognized losses | (238 | ) | (24 | ) | (583 | ) | (72 | ) | ||||||||
Other foreign taxes paid | 154 | 178 | 322 | 294 | ||||||||||||
Rate variances in foreign jurisdictions | (143 | ) | (9 | ) | (161 | ) | (61 | ) | ||||||||
Permanent differences and other | 195 | (41 | ) | 122 | 470 | |||||||||||
Income tax provision recognized in net earnings | $ | 3,020 | $ | 2,019 | $ | 5,014 | $ | 3,230 |
The Company periodically assesses its liabilities and contingencies for all tax years open to audit based upon the latest information available. For those matters where it is probable that an adjustment will be made, the Company records its best estimate of these tax liabilities, including related interest charges. Inherent uncertainties exist in estimates of tax contingencies due to changes in tax laws. While management believes they have adequately provided for the probable outcome of these matters, future results may include favourable or unfavourable adjustments to these estimated tax liabilities in the period the assessments are made, or resolved, or when the statutes of limitations lapse.
8. EARNINGS PER SHARE
All of the Company’s earnings are attributable to common shares, therefore, net earnings is used in determining earnings per share.
Q2 2020 | Q2 2019 | YTD 2020 | YTD 2019 | |||||||||||||
Net earnings | $ | 7,259 | $ | 3,261 | $ | 13,292 | $ | 779 | ||||||||
Weighted average number of shares: | ||||||||||||||||
Basic (000s) | 80,300 | 80,300 | 80,300 | 80,300 | ||||||||||||
Diluted (000s) | 80,330 | 80,311 | 80,308 | 80,323 | ||||||||||||
Earnings per share | ||||||||||||||||
Basic | $ | 0.09 | $ | 0.04 | $ | 0.17 | $ | 0.01 | ||||||||
Diluted | $ | 0.09 | $ | 0.04 | $ | 0.17 | $ | 0.01 |
The calculation of diluted earnings per share for the three and six months ended
The total number of shares outstanding on
9. SEGMENTED INFORMATION
The Company’s operations are divided into the following three geographic segments, corresponding to its management structure:
Q2 2020 | Q2 2019 | YTD 2020 | YTD 2019 | |||||||||||||
Revenue | ||||||||||||||||
$ | 65,337 | $ | 56,493 | $ | 126,294 | $ | 107,806 | |||||||||
South and | 29,785 | 29,173 | 62,471 | 55,913 | ||||||||||||
26,060 | 19,835 | 49,876 | 40,267 | |||||||||||||
$ | 121,182 | $ | 105,501 | $ | 238,641 | $ | 203,986 |
*
Q2 2020 | Q2 2019 | YTD 2020 | YTD 2019 | |||||||||||||
Earnings (loss) from operations | ||||||||||||||||
$ | 7,078 | $ | 6,732 | $ | 12,416 | $ | 8,047 | |||||||||
South and | 1,128 | (620 | ) | 2,986 | (1,358 | ) | ||||||||||
5,085 | 823 | 8,897 | 1,694 | |||||||||||||
13,291 | 6,935 | 24,299 | 8,383 | |||||||||||||
Finance costs | 204 | 208 | 423 | 451 | ||||||||||||
General corporate expenses* | 2,808 | 1,447 | 5,570 | 3,923 | ||||||||||||
Income tax | 3,020 | 2,019 | 5,014 | 3,230 | ||||||||||||
6,032 | 3,674 | 11,007 | 7,604 | |||||||||||||
Net earnings | $ | 7,259 | $ | 3,261 | $ | 13,292 | $ | 779 |
*General corporate expenses include expenses for corporate offices and stock options.
Capital expenditures | ||||||||||||||||
$ | 3,459 | $ | 3,054 | $ | 11,923 | $ | 6,897 | |||||||||
South and | 831 | 1,677 | 1,573 | 3,451 | ||||||||||||
374 | 2,294 | 1,580 | 2,503 | |||||||||||||
Unallocated and corporate assets | 879 | - | 1,032 | - | ||||||||||||
Total capital expenditures | $ | 5,543 | $ | 7,025 | $ | 16,108 | $ | 12,851 |
Depreciation | ||||||||||||||||
$ | 4,530 | $ | 4,823 | $ | 8,985 | $ | 10,170 | |||||||||
South and | 3,762 | 3,019 | 7,439 | 6,254 | ||||||||||||
1,647 | 2,200 | 3,204 | 4,697 | |||||||||||||
Unallocated and corporate assets | 33 | 89 | 61 | 154 | ||||||||||||
Total depreciation | $ | 9,972 | $ | 10,131 | $ | 19,689 | $ | 21,275 |
Identifiable assets | ||||||||
$ | 224,774 | $ | 205,871 | |||||
South and | 134,884 | 138,605 | ||||||
110,728 | 104,173 | |||||||
Unallocated and corporate assets** | 3,388 | 12,648 | ||||||
Total identifiable assets | $ | 473,774 | $ | 461,297 |
*
**Amounts presented in comparative period under unallocated and corporate assets have been allocated to other segments consistent with current year presentation.
10. FINANCIAL INSTRUMENTS
Fair value
The carrying values of cash, trade and other receivables, demand credit facilities and trade and other payables approximate their fair value due to the relatively short period to maturity of the instruments. The carrying value of long-term debt approximates its fair value.
Financial assets and liabilities measured at fair value are classified and disclosed in one of the following categories:
- Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities;
- Level 2 - inputs other than quoted prices included in level 1 that are observable for the assets or liabilities, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and
- Level 3 - inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).
The Company’s derivatives are classified as level 2 financial instruments. There were no transfers of amounts between level 1, level 2 and level 3 financial instruments for the quarter ended
Credit risk
As at
The movements in the allowance for impairment of trade receivables during the six and twelve month periods were as follows:
Opening balance | $ | 863 | $ | 928 | ||||
Increase in impairment allowance | 263 | 919 | ||||||
Recovery of amounts previously impaired | - | (207 | ) | |||||
Write-off charged against allowance | - | (760 | ) | |||||
Foreign exchange translation differences | (45 | ) | (17 | ) | ||||
Ending balance | $ | 1,081 | $ | 863 |
Foreign currency risk
As at
Rate variance | IDR/USD | MNT/USD | USD/AUD | USD/CLP | MZN/USD | COP/USD | USD/ZAR | |||||||||||||||||||||||
Net exposure on | ||||||||||||||||||||||||||||||
monetary assets | $ | 8,754 | $ | 3,644 | $ | 3,184 | $ | 2,736 | $ | 1,801 | $ | 1,662 | $ | (5,263 | ) | |||||||||||||||
EBIT impact | +/-10% | 973 | 405 | 354 | 304 | 200 | 185 | 585 | ||||||||||||||||||||||
Rate variance | USD/CAD | MXP/USD | Other | |||||||||||||||||||||||||||
Net exposure on | ||||||||||||||||||||||||||||||
monetary assets | $ | (6,278 | ) | $ | (1,370 | ) | $ | (503 | ) | |||||||||||||||||||||
EBIT impact | +/-10% | 698 | 152 | 56 | ||||||||||||||||||||||||||
Liquidity risk
The following table details contractual maturities for the Company’s financial liabilities:
1 year | 2-3 years | 4-5 years | Total | |||||||||||||
Trade and other payables | $ | 66,352 | $ | - | $ | - | $ | 66,352 | ||||||||
Lease liabilities (interest included) | 1,681 | 2,592 | 995 | 5,268 | ||||||||||||
Long-term debt (interest included) | 1,630 | 2,037 | 15,705 | 19,372 | ||||||||||||
$ | 69,663 | $ | 4,629 | $ | 16,700 | $ | 90,992 |
11. SUBSEQUENT EVENT
On
Source:
2019 GlobeNewswire, Inc., source