Subjects: ERN, CFG
Royal Canadian Mint Proud to Report Profits and Performance for Q2 2019
OTTAWA, Aug. 23, 2019 /CNW/ - The Royal Canadian Mint (the "Mint" or the "Company") is pleased to release its financial results for the second quarter of 2019 which provide insight into our activities, the markets influencing our businesses and our expectations for the next twelve months.
"I am encouraged by the solid results of all of the Mint's businesses," said Marie Lemay, President and CEO of the Royal Canadian Mint. "From negotiating a successful joint coin program with the United States Mint, to efficiently meeting higher silver bullion demand in Europe and North America, the Mint continues to demonstrate its ability to seize opportunities that build sustainability and create value for Canadians."
The financial results should be read in conjunction with the Company's Quarterly Report available at www.mint.ca. All monetary amounts are expressed in Canadian dollars, unless otherwise indicated.
Financial and Operational Highlights
- Consolidated profit before income tax and other items was $8.0 million for the quarter (2018 ? $6.4 million).
- Consolidated profit for the period was $4.8 million for the quarter (2018 ? $5.9 million).
- Consolidated revenue increased to $278.4 million in the second quarter of 2019 (2018 - $260.7 million) as improved silver bullion global market demand led to higher bullion volumes:
- Silver volumes were 4.3 million ounces (2018 ? 3.3 million), while gold volumes were 84.6 thousand ounces (2018 ? 99 thousand)
- Sales of numismatic products were ahead of 2018 mainly due to custom silver product sales having increased to $32.0 million (2018 - $28.8 million)
- Foreign circulation revenue decreased 5% quarter over quarter with production and/or shipment returning to more normal levels at 194 million foreign coins and blanks compared to 257 million coins and blanks in 2018
- Canadian circulation coin production was 151 million pieces in the quarter (2018 - 133 million pieces)
- Operating expenses increased $1.2 million to $24.2 million compared to the same period in 2018 at $23.0 million. Administration expenses increased 14% due to higher employee, IT and consulting costs primarily to support the repositioning of the Numismatic business. Marketing and sales expenses decreased 9% due to lower employee and marketing distribution costs in 2019 compared to 2018.
- Cash increased to $91.4 million for the quarter (December 31, 2018 ? $66.4 million). The Mint expects to pay a dividend to Canada in the fourth quarter of 2019 from excess cash above the level of cash required to support the Mint's ongoing operations.
Consolidated results and financial performance | ||||||||
(in CAD $ millions for the 13 and 26 weeks ended June 29, 2019 and June 30, 2018) | ||||||||
13 weeks ended | 26 weeks ended | |||||||
Change | Change | |||||||
June 29, | June 30, | $ | % | June 29, | June 30, | $ | % | |
Revenue | $278.4 | $ 260.7 | $17.7 | 7 | $ 629.1 | $ 601.6 | $ 27.5 | 5 |
Profit before income tax and other items (1) | 8.0 | 6.4 | 1.6 | 25 | 19.1 | 13.2 | 5.9 | 45 |
Profit before income tax and other items margin | 3% | 2% | 3% | 2% | ||||
Profit for the period | 4.8 | 5.9 | (1.1) | (19) | 12.5 | 10.7 | 1.8 | 17 |
(1) | A reconciliation from Profit for the period to Profit before income tax and other items is included on page 11 of the Mint's 2019 Second Quarter Report. |
As at | ||||||||
June 29, 2019 | December 31, 2018 | $ Change | % Change | |||||
Cash and cash equivalents | $91.4 | $ 66.4 | $ 25.0 | 38 | ||||
Inventories | 53.6 | 62.2 | (8.6) | (14) | ||||
Capital assets | 175.2 | 172.8 | 2.4 | 1 | ||||
Total assets | 399.1 | 397.8 | 1.3 | - | ||||
Working capital | 125.1 | 107.5 | 17.6 | 16 | ||||
To read more of the Mint's Second Quarter Report for 2019, please visit www.mint.ca.
About the Royal Canadian Mint
The Royal Canadian Mint is the Crown corporation responsible for the minting and distribution of Canada's circulation coins. The Mint is recognized as one of the largest and most versatile mints in the world, offering a wide range of specialized, high quality coinage products and related services on an international scale. For more information on the Mint, its products and services, visit www.mint.ca. Follow the Mint on Twitter, Facebook and Instagram.
FORWARD LOOKING STATEMENTS
This Earnings Release contains forward-looking statements that reflect management's expectations regarding the Mint's objectives, plans, strategies, future growth, results of operations, performance, and business prospects and opportunities. Forward-looking statements are typically identified by words or phrases such as "plans", "anticipates", "expects", "believes", "estimates", "intends", and other similar expressions. These forward-looking statements are not facts, but only estimates regarding expected growth, results of operations, performance, business prospects and opportunities (assumptions). While management considers these assumptions to be reasonable based on available information, they may prove to be incorrect. These estimates of future results are subject to a number of risks, uncertainties and other factors that could cause actual results to differ materially from what the Mint expects. These risks, uncertainties and other factors include, but are not limited to, those risks and uncertainties set forth in the Risks to Performance section of the Narrative Discussion, as well as in Note 11 ? Financial Instruments and Financial Risk Management to our Audited Consolidated Financial Statements.The forward-looking statements included in this Earnings Release are made only as of August 22, 2019, and the Mint does not undertake to publicly update these statements to reflect new information, future events or changes in circumstances or for any other reason after this date.
SOURCE Royal Canadian Mint
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