Ms. Linda McCurdy reports
K-BRO REPORTS Q2, 2012 RESULTS
K-Bro Linen Inc. had revenue of $31.5-million and EBITDA (earnings before interest, taxes, depreciation and amortization) of
$6.4-million for the three months ended June 30, 2012. Net earnings
after tax were $3.0-million, diluted earnings were 42 cents per share, and
distributable cash was 72.3 cents per diluted share for the quarter.
Second quarter 2012 financial results:
Revenue for the three months ended June 30, 2012, was $31.5-million, an
increase of 9.2 per cent over the comparable 2011 period.
- EBITDA for the second quarter increased by $1.5-million or by 31.6 per cent to
$6.4-million, compared with $4.9-million in the second quarter of 2011.
- EBITDA margin increased in the quarter to 20.3 per cent, from 16.9 per cent in the
comparative period of 2011, due to the flow-through of increased volumes
and revenues, coupled with favourable variances in commodity costs.
Net earnings after taxes for the second quarter increased by $1.0-million to $3.0-million, compared with $2.0-million in the second quarter of 2011.
(in thousands of dollars, except per-share amounts and percentages)
For the three months ended June 30,
Revenue $ 31,526 $ 28,871
Operating expenses 25,122 24,006
EBITDA 6,404 4,865
EBITDA as a percentage of revenue 20.3% 16.9%
Earnings before income taxes 4,084 2,725
Income tax expense 1,121 722
Net earnings 2,963 2,003
Basic earnings per share $ 0.42 $ 0.29
Diluted earnings per share $ 0.42 $ 0.29
Total assets 90,505 93,148
Long-term debt, end of period 7,113 13,007
Cash provided by operating activities (110) 2,577
Net change in non-cash working capital items (5,409) (1,736)
Maintenance capital expenditures 232 423
Distributable cash flow 5,067 3,890
Dividends declared 1,994 1,927
Payout ratio 39.2% 49.2%
For the six months ended June 30,
Revenue $ 61,691 $ 56,557
Operating expenses 49,690 47,213
EBITDA 12,001 9,344
EBITDA as a percentage of revenue 19.5% 16.5%
Earnings before income taxes 7,261 4,877
Income tax expense 1,829 1,319
Net earnings 5,432 3,558
Basic earnings per share $ 0.78 $ 0.52
Diluted earnings per share $ 0.78 $ 0.51
Total assets 90,505 93,148
Long-term debt, end of year 7,113 13,007
Cash provided by operating activities 6,658 6,714
Net change in non-cash working capital items (3,133) (1,606)
Maintenance capital expenditures 366 647
Distributable cash flow 9,425 7,673
Dividends declared 3,921 3,853
Payout ratio 41.4% 49.8%
In the second quarter of 2012, revenue was $31.5-million, which was 9.2 per cent
higher than the $28.9-million generated in the comparable period in
2011. This year-over-year increase was due to a combination of the
acquisition of the plant in Montreal, the new volume from the Saskatoon
Health Region contract, organic growth from new volume and price
increases at existing customers across the remainder of the plants.
EBITDA increased from $4.9-million in the second quarter of 2011, to $6.4-million in the second quarter of
2012, from the addition of a new plant, organic growth from the company's
existing businesses and the addition of the Saskatoon Health Region.
"The second quarter of 2012 has been busy for us with the signing of a
new long-term contract with Alberta Health Services, and the planning
and commencement of a new plant in Edmonton. We also raised the common
share dividend and were extremely satisfied with our quarterly results.
With a strong presence in all of our markets, we produced record EBITDA
and earnings," said Linda McCurdy, president and chief executive
officer. "With a robust first half of the year and visibility into the
third quarter, we expect strong financial results to continue
throughout the second half of the year."
We seek Safe Harbor.
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