Tuesday, May 3, 2016

Finning International Inc. - FTT.t

Finning International Inc. - FTT.t is the world’s largest Caterpillar dealer delivering unrivalled service to customers in mining, construction, power systems and forestry for over 80 years.

On February 18, 2016 the company released Numbers

"Finning International Inc. (TSX:FTT) reported fourth quarter and annual 2015 results today. All monetary amounts are in Canadian dollars unless otherwise stated.HIGHLIGHTS
  • Excluding significant items(3) noted below, 2015 EBITDA(1)(2) would have been $604 million (reported EBITDA was $126 million).
  • Annual free cash flow(2) was $325 million, including approximately $350 million in Q4.
  • Maintenance of strong financial flexibility into 2016. Net debt to EBITDA ratio(2)(3) of 2.0x, and annual dividend of approximately 20% of EBITDA, excluding significant items
  • Excluding significant items, South America's and Canada's Q4 2015 EBIT margins(1)(2) would have been 9.0% and 5.7%, respectively (reported EBIT margins were negative (57.5)% and negative (2.4)%, respectively), contributing to an EPS(1) of $0.23 in Q4 (reported basic EPS loss was $(1.82)).
  • In response to a decline in market activity and to optimize its organizational structure, the global workforce was reduced by approximately 13% in 2015. The Company is embarking on an additional global workforce reduction of 400 to 500 people by mid-2016.
  • Significant customer wins:
    • In Q1 2016, Finning Canada was selected by Peace River Hydro Partners to deliver 160 pieces of Caterpillar equipment for BC Hydro's Site C Clean Energy Project, as well as perform equipment condition monitoring and supply parts and maintenance labour.
    • In Q4 2015, Finning Canada accepted a notice of award from Canadian Natural Resources Limited for the purchase of 12 used Caterpillar 797F trucks.
    • In Q4 2015, Finning South America received an equipment order from Codelco's Ministro Hales (DMH) for 4 Caterpillar 797F off-highway trucks and support equipment. DMH was the only mining company to issue a public tender for ultra-class trucks in Finning's South American territory during 2015.
"Finning continues to generate relatively consistent EBITDA and strong free cash flow despite very challenging market conditions," said Scott Thomson, president and CEO of Finning International. "This, combined with our ongoing efforts to right-size our business and implement sustainable operating improvements, enables us to maintain a strong balance sheet and dividends throughout the business cycle. Notwithstanding this progress, we are not immune to the challenges facing our customers across our key markets and geographies. Our performance in the fourth quarter was impacted by a number of one-time items, which reflect the difficult realities of our marketplace."