| Thu 28 Feb 2002, 0:00 | | Canadian Overseas Packaging Industries |
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CANADIAN OVERSEAS PACKAGING INDUSTRIES LIMITED
(Incorporated under the laws of Canada)
Share code: CAN ISIN: CA 13642P1018
Unaudited interim results to shareholders
for the six month period ended december 31, 2001
(all funds expressed in thousands of Canadian dollars except for the common
share data)
Consolidated Statement of Earnings
31-Dec 31-Dec
2001 2000
(C$000) (C$000)
Revenues
Sales 86,138 81,911
Interest and dividends 2,980 3,930
Gain on sale of marketable
securities 4,125 -
Share in net earnings of
company subject
to significant influence 9,532 26,692
Foreign currency gains 399 114
103,174 112,647
Expenses
Cost of sales 62,078 65,443
Selling and administration 18,658 18,938
Loss on sale of marketable
securities 3,454
Interest
Current 959 910
Long-term 48 75
81,743 88,820
Earnings from operations before
taxation and
minority interest 21,431 23,827
Current taxation 1,086 439
Earnings from operations
before minority interest 20,345 23,388
Minority interest (21) 572
Net Earnings 20,324 23,960
Earnings per common share
(17,578,125 shares) C$1,16 C$1,36
Consolidated statement of
changes in shareholders' equity
Cumulative
translation
Capital Retained Appraisal adjust-
stock earnings increment ments Total
(C$000) (C$000) (C$000) (C$000) (C$000)
Balance, July 1, 1999 47,984 315,612 4,301 (6,078) 361,819
Realization of
appraisal increment 2,182 (2,182)
Effect of exchange
rate changes (198) (114) (312)
Net earnings 22,626 22,626
Dividend
($0.90 per share) (15,820) (15,820)
Balance, June 30, 2000 47,984 324,600 1,921 (6,192) 368,313
Effect of exchange
rate changes 119 (839) (720)
Net earnings 23,960 23,960
Balance, December 31,
2000 47,984 348,560 2,040 (7,031) 391,553
Realization of
appraisal increment 294 (294)
Effect of exchange
rate changes 87 (287) (200)
Net earnings 11,804 11,804
Balance, June 30, 2001 47,984 360,658 1,833 (7,318) 403,157
Effect of exchange
rate changes 168 1,682 1,850
Net earnings 20,324 20,324
Dividend ($0.95 per share) (16,699) (16,699)
Balance, December 31,
2001 47,984 364,283 2,001 (5,636) 408,632
The accompanying note is an integral part of the interim consolidated
financial statements.
Note - Financial statements Presentation
The unaudited interim consolidated financial statements have been prepared
by the Corporation in accordance with Canadian generally accepted accounting
principles and conform in all material respects with the International
Accounting Standards. The financial information was prepared in accordance
with the same accounting policies and methods as the audited annual
consolidated financial statements for the year ended June 30, 2001. The
unaudited interim consolidated financial statements should be read in
conjunction with the audited annual consolidated financial statements and
notes thereto in the Corporation's 2001 annual report. The results of
operations for the interim periods presented do no necessarily reflect
results for the full year.
Consolidated Statements of Cash flows
31-Dec 31-Dec
2001 2000
(C$000) (C$000)
Operating activities
Net earnings 20,324 23,960
Non-cash items
Depreciation 2,575 2,707
Minority interest 21 (572)
Loss (gain) on sale of
marketable securities (4,125) 3,454
Share in net earnings of
company subject to
significant influence (9,532) (26,692)
Gain on sale of fixed assets (699) (3)
8,594 2,854
Changes in non-cash working
capital items (3,895) 8,345
Cash flows from operating
activites 4,699 11,199
Investing Activities
Purchase of marketable
securities (122,676) (94,352)
Proceeds on sale of marketable
securities 137,561 88,610
Purchase of fixed assets (1,327) (3,508)
Proceeds on sale of fixed
assets 756 11
Cash flows from investing
activities 14,314 (9,239)
Financing activities
Bank indebtedness (8,109) (9,908)
Repayment of long-term debt (327) (871)
Dividends (16,699) (15,820)
Cash flows from financing
activities (25,135) (26,599)
Effect of exchange rate changes 301 (251)
Net decrease in cash and cash
equivalents (5,821) (24,890)
Cash and cash equivalents,
beginning of period 70,000 79,868
Cash and cash equivalents,
end of period 64,179 54,978
Cash and cash equivalents
Cash 10,065 2,725
Term deposits 54,114 52,253
64,179 54,978
Consolidated balance sheets
(Unaudited) (Unaudited)
31-Dec 30-Jun 31-Dec
2001 2001 2000
(C$000) (C$000) (C$000)
ASSETS
Current assets
Cash 10,065 29,328 2,725
Term deposits 51,114 40,672 52,253
Accounts receivable 39,119 31,918 36,755
Income taxes receivable 27 -
Inventories 14,470 13,749 15,728
117,768 115,694 107,461
Investments
Marketable securities, at cost
(quoted value: $91,662; $100,622
at June 30, 2001;
$109,784 at December 31,
2000) 87,185 97,945 107,783
Company subject to significant
influence,
at equity Investment company
(estimated fair value $248,000);
$225,000 at June 30, 2001; $217,000
at Dec 31, 2000) 216,752 207,220 190,063
Other investments, at cost 25 25 25
303,962 305,190 297,871
Fixed assets 32,113 31,599 33,989
453,843 452,483 439,321
LIABILITIES
Current liabilities
Bank indebtedness -
secured by certain assets 12,515 20,624 13,312
Accounts payable and accrued
liabilities 25,847 23,336 26,934
Taxation payable 1,489 2,988
Current portion of long-term debt 666 600 313
40,517 44,560 43,547
Long-term debt 307 609 877
Deferred taxation 3,620 3,455 2,760
Minority interest 767 702 584
45,211 49,326 47,768
SHAREHOLDERS' EQUITY
Capital stock 47,984 47,984 47,984
Retained earnings 364,283 360,658 348,560
Appraisal increment 2,001 1,833 2,040
Cumulative translation
adjustments (5,636) (7,318) (7,031)
408,632 403,157 391,553
453,843 452,483 439,321
Summary of the financial results
(Unless otherwise stated all figures are in Canadian currency and, except
for per share amounts, in millions of dollars as indicated by the
abbreviation "M").
Summary of the Financial Results
Net Earnings for the half year ended December 31, 2001 were $20.3M compared
with $24.0M last year. Earnings per share were $1.16 (2000: $1.36). The
combined revenues for the group's manufacturing and investment activities
were $103.2M (2000: $112.6M).
Manufacturing Operations
Sales of corrugated fibreboard containers, multiwall paper sacks and other
products for the six months to December 31, 2001 were $86.1M (2000: $81.9M).
Tonnage throughput increased 8.5% versus the prior year. We are pleased to
report that the profitability of our manufacturing operations continues to
improve as benefits of recent cost reduction programs and of measures to
improve productivity have taken effect.
Investment Activities
Interest and dividends, which comprises income from term deposits, bonds and
equities, decreased in the period to $3.0M (2000: $3.9M).
The gain on sale of marketable securities was $4.1M compared with a loss of
$3.5M for the same period last year.
Income from the share in net earnings of the company subject to significant
influence was $9.5M (2000: $26.7M). At December 31, 2001 the Corporation's
equity interest in the investment company was $216.8M (2000: $190.1M)
representing a 14% increase for the calendar year.
Foreign currency gains were $0.4M compared with $0.1M last year.
At December 31, 2001 equities were 65% of the portfolio; bonds and cash
represented 35%, the same percentages as at December 31, 2000.
Outlook
It is hoped that the improvement in the results from our manufacturing
operations will continue for the remainder of the financial year.
The world's financial markets continue to be volatile and difficult to
predict. We remain cautious and do not envisage any significant changes to
our investment strategy for the remainder of this fiscal year.
On Behalf of the Board of Directors
D. M. Eramian
Company Secretary February 28, 2002
Suite 1500, One Brunswick Square, Germain Street
St. John, New Brunswick, Canada E2L 4H8
