Investor Presentation February 2013 Henry Demone, CEO Kelly - - PowerPoint PPT Presentation
Investor Presentation February 2013 Henry Demone, CEO Kelly Nelson, CFO 1 Disclaimer Certain statements made in this presentation are forward-looking and are subject to important risks, uncertainties and assumptions
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* Recent prices as at February 22, 2013
1 Based on the dividend rate effective March 1, 2013
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(1) Plus seasonal working capital (~ $250 million total). (2) Proforma Adjusted EBITDA includes pro forma freezer project savings. Adjusted EBITDA is
LTM September 2011.
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HLF (Pre-Icelandic) HLF (Post-Icelandic)
* Based on calendar 2011 sales
Retail & Other 40% Food Service 60% Canada 44% USA 55% Other 1% Retail & Other 31% Food Service 69% Canada 32% USA & Mexico 68%
NA retail private label
(1) Including 2 brands, private label and clubs
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$- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 $1,000,000 2006 2007 2008 2009 2010 2011 2012
$943 mm
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Standardized EBITDA
Adjusted EBITDA (1) : Standardized EBITDA, , excluding impairment of PPE, business acquisition and integration expenses, gains or losses on disposal of assets, and the increase in cost of goods sold relating to inventory acquired from business acquisitions, above its book value
Adjusted EBITDA (2) : Adjusted EBITDA (1) excluding stock-based compensation expense
$91.7 mm *Proforma includes additional $9 mm of synergies
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(*) In accordance with Canadian GAAP – Not restated (“) for comparison preference shares treated as common equity before their conversion in 2008
0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0% $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00
ROE
Diluted EPS is Net income divided by the average diluted number of shares Adjusted EPS (1) based on Adjusted Net Income is net income excluding the after-tax impairment of PPE acquisition and integration expenses, the increase in cost of goods sold relating to inventory acquired from business acquisitions over its book value, non-cash expense from revaluing an embedded derivative associated with the long-term debt LIBOR floor , marking-to- market an interest rate swap related to the embedded derivative, the write off of deferred financing charges on the re-pricing of the Term Loan and withholding tax related to inter-company dividends Adjusted EPS (2) is Adjusted EPS (1) excluding stock-based compensation expense
**Proforma includes additional $9 mm of synergies
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ROE, ROAM and EBIT based on adjusted amounts, see previous slides
(1) ROAM = 15% proforma for 2013 synergies ( + $9mm)
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* Common shares up to September 15, 2007; Common and Non-Voting shares from December 15, 2007 to present
$- $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70
2003 2004 2005 2006 2007 2008 2009 2010 2011 20122013 P
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$000 Average Shares Outstanding $000 Average Shares Outstanding Net Income 2,203 $ 0.14 18,660 $ 1.22 Add back After-tax business acquisition, integration, and other costs 6,895 0.45 8,397 0.55 Impairment of property, plant and equipment 8,654 0.56
that is to be disposed as part of the acquisition 1,127 0.07
price allocation to inventory 761 0.05 312 0.02 Revaluation of embedded derivative on debt 1,899 0.12
financing charges 6,380 0.41 Interest rate swap on embedded derivative 529 0.03
(402) (0.03) 782 0.05 28,046 $ 1.81 $ 28,151 $ 1.84 $ Stock compensation expense 10,025 $ 0.65 $ 703 $ 0.05 $ Adjusted Net Income 38,071 $ 2.46 $ 28,854 $ 1.88 $ Average shares for the period 15,460 15,341 2012 Diluted Earnings Per Share Based on: Diluted Earnings Per Share Based on: 2011
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In $000
Interest paid in cash during period 19,145 5,241 Change in cash interest accrued during the period 2,660 449 Total Interest to be paid in cash 21,805 5,690 Deferred financing cost amortization 2,775 329 Accelerated deferred cost expense (1) 8,713
2,605
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36,624 6,019 Fifty-two weeks ended
(1) Accelerated deferred cost write off caused by positive amendments to term loan in February 2013
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(1) Run rate
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