SALABERRY-DE-VALLEYFIELD, QUEBEC — (Marketwired) — 05/15/13 — Noranda Income Fund (the „Fund“) (TSX: NIF.UN) had a strong first quarter.
Q1 2013 and Subsequent Highlights
Come and join us at the TSX Broadcast and Conference Centre, or listen to the AGM and view the slides from the Investor Centre/Presentations section of the Fund website: or click on this link: http://events.digitalmedia.telus.com/noranda/051613/index.php
In addition, you can listen to the teleconference and view the slide presentation from the Conference Call section of the Noranda Income Fund website: or click on this link: http://events.digitalmedia.telus.com/noranda/051613q/index.php
Financial and Operating Highlights (First quarter 2013 compared to the first quarter 2012)
Earnings before income taxes in the first quarter of 2013 were $27.3 million compared to $15.4 million in the same quarter a year ago. The $11.9 million increase was mainly due to positive concentrate payable settlement adjustments of $7.7 million, stronger premiums and zinc metal sales, and higher processing fee, partially offset by lower by-product revenues.
Cash provided by operating activities in the first quarter of 2013, before net changes in non-cash working capital items, was $15.4 million compared to $18.4 million during the same period of 2012. Cash distributions of $4.7 million were declared in both the 2013 and 2012 quarterly periods. During the first quarter of 2013, non-cash working capital increased by $21.1 million in large part due to an increase in accounts receivable and a reduction in accounts payable and accrued liabilities. During the first quarter of 2012, non-cash working capital increased by $24.0 million due to an increase in accounts receivable and inventories and a decrease in taxes payable, partially offset by an increase in accounts payable and accrued liabilities.
A full version of the first quarter 2013 Management-s Discussion and Analysis („MD&A“) and the unaudited Interim Condensed Consolidated Financial Statements will be posted on and on the Fund-s website at today, May 15, 2013. Readers should be advised that the summarized communication presented in this press release is limited in its disclosure. It is not a suitable source of information for readers who are unfamiliar with the Fund, and it is not in any way a substitute for reading the first quarter unaudited Interim Condensed Consolidated Financial Statements and MD&A because a reader relying on this summary alone might overlook decision critical information.
Noranda Income Fund is an income trust whose units trade on the Toronto Stock Exchange under the symbol „NIF.UN“. Noranda Income Fund owns the electrolytic zinc processing facility and ancillary assets (the „Processing Facility“) located in Salaberry-de-Valleyfield, Quebec. The Processing Facility is the second-largest zinc processing facility in North America and the largest zinc processing facility in eastern North America, where the majority of zinc customers are located. It produces refined zinc metal and various by-products from sourced zinc concentrates. The Processing Facility is operated and managed by Canadian Electrolytic Zinc Limited, a wholly-owned subsidiary of Xstrata Canada Corporation.
Except where otherwise indicated, all amounts in this press release are expressed in Canadian dollars.
Further information about the Noranda Income Fund can be found at .
Adjusted Earnings before Distributions to Unitholders, Finance Costs, Income Taxes, Depreciation and Amortization („Adjusted EBITDA“)
Adjusted EBITDA is used by the Fund as an indication of cash generated from operations. Adjusted EBITDA is not a recognized measure under IFRS and therefore the Fund-s method of calculating Adjusted EBITDA is unlikely to be comparable to methods used by other entities.
The Fund-s Adjusted EBITDA is calculated by adjusting earnings before finance costs and income taxes for all of the non-cash items such as depreciation, rehabilitation (recovery) expense, net change in employee benefits, (gain) loss on the sale of assets, changes in fair value of embedded derivatives and non-cash (gain) loss on derivative financial instruments.
The Fund-s Adjusted EBITDA is currently supported by the stability provided in the Supply and Processing Agreement. It is expected that the Fund-s Adjusted EBITDA will be subject to more variability once this agreement expires in May 2017.
A reconciliation of Adjusted EBITDA for the first quarters of 2013 and 2012 is provided below:
Contacts: Financial information: Michael Boone, Vice President & Chief Financial Officer of Canadian Electrolytic Zinc Limited, Noranda Income Fund-s Manager 416 775-1561
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