OTTAWA, Aug. 18, 2017 /CNW/ - The Royal Canadian Mint (the "Mint" or the "Company") today reported its financial results for the 13 and 26 weeks ended July 1, 2017. The contents of this release 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.
"The Mint is performing well across all its businesses. Through extensive circulation and collector coin programs, the celebration of Canada 150 continues to resonate with customers thanks to unique innovations such as the world's first glow-in-the dark circulation coin and an enhanced marketing approach benefitting our Numismatics business," said Sandra L. Hanington, President and CEO of the Royal Canadian Mint. "As well, our Bullion and Foreign coin businesses continue to make a solid contribution to the Mint's profitability."
Financial and Operational Highlights for the Second Quarter
- Consolidated profit before FV revaluation and income taxes increased $4.2 million to $9.6 million for the quarter (2016 – $5.4 million).
- Consolidated revenue decreased to $401.6 million for the quarter (2016 - $610.1 million) primarily as a result of lower bullion revenues as bullion market demand and prices declined.
- The Mint produced 172 million Canadian circulation coins in the second quarter of 2017 (2016 – 140 million) in order to replenish inventories held on behalf of the Department of Finance.
- Shipment of 294 million foreign coins and blanks in the quarter (2016 – 341 million).
- Softer overall bullion demand contributed to lower bullion volumes for the 13 weeks ended July 1, 2017 compared to the same period in 2016. Gold volumes were 238 thousand ounces (2016 – 477.1 thousand) while silver volumes were 8.7 million ounces (2016 – 16.1 million).
- Numismatics revenues increased $10.3 million to $45.3 million (2016 – $35.0 million) in the quarter on the continued strength of Canada 150 product sales.
- The Mint continues to focus on ensuring its operating expenses are well-managed. For the quarter, expenses have decreased 6% to $35.2 million (2016 - $37.3 million) largely in marketing and sales, partially offset by expenses related to strengthening back office operations.
Consolidated results and financial performance
(in CAD $ millions for the 13 weeks ended July 1, 2017 and July 2, 2016)
13 weeks ended | 26 weeks ended | ||||||||||||||
1-Jul-17 | 2-Jul-16 | $ Change | % Change | 1-Jul-17 | 2-Jul-16 | $ Change | % Change | ||||||||
Revenue | $ | 401.6 | $ | 610.1 | $ | (208.5) | (34) | $ | 904.4 | $ | 1,198.5 | $ | (294.1) | (25) | |
Profit before FV revaluation and income taxes(1) | 9.6 | 5.4 | 4.2 | 78 | 20.2 | 18.9 | 1.3 | 7 | |||||||
Profit before income taxes | 4.4 | 14.0 | (9.6) | (69) | 19.3 | 28.9 | (9.6) | (33) | |||||||
Profit after income taxes | 5.3 | 10.5 | (5.2) | (50) | 16.4 | 21.7 | (5.3) | (24) | |||||||
(1) | FV revaluation is the non-cash impact of the change in the valuation of the precious metal component of the liability for Face Value redemptions and returns. |
As at | |||||||
1-Jul-17 | 31-Dec-16 | $ Change | % Change | ||||
Cash | $ | 85.8 | $ | 114.2 | $ | (28.4) | (25) |
Inventories | 85.2 | 78.9 | 6.3 | 8 | |||
Capital assets | 177.9 | 182.5 | (4.6) | (3) | |||
Total assets | 415.7 | 444.1 | (28.4) | (6) | |||
Working capital | 127.9 | 136.1 | (8.2) | (6) | |||
(2) | As mentioned in our year end 2016 earnings release on May 8, 2017, the Mint restated prior period revenue and profit to remove sales of numismatic face value products. On a separate matter, the Mint has retrospectively adjusted its presentation of revenues and costs associated with bullion sales. The Mint now records revenues and costs on a net basis for all sales where both the supplier of key precious metals and customer of the bullion are the same party. This change in presentation has no impact on profit. |
To read more of the Mint's Second Quarter Report for 2017, 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. An ISO 9001-2008 certified company, 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.
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 as well as in Note 8 – Financial Instruments and Financial Risk Management to our Condensed Consolidated Financial Statements.
The forward-looking statements included in this Earnings Release are made only as of August 18, 2017, 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
