This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

MFC Industrial Ltd Management Discusses Q2 2012 Results - Earnings Call Transcript

If I could draw your attention now to the liabilities section, and if you look under long-term debt, you'll see our long-term debt went from $20 million to $45 million. What we did in this particular quarter, we borrowed $28 million long-term over 8 years at a pretty good rate, 3.9%. And we did that really -- it's our policy if we buy a long life asset, we have to finance it on a long period of time. And this is what we did to pay for the refinery and also to make sure our balance sheet is being properly looked after.

Our working capital was $380 million. Our ratio's okay, 3.20, acid test 2.38. Long-term debt to equity did increase to 0.08, that's because of the debt that I mentioned. Equity is $561 and book value per share just under $9 a share.

Revenues for the first 6 months was $253 million. Net profit was $0.41 a share. Some things that happened during these 6 months and especially the last 3 months, we had the euro drop by about 12%, over 12%, that affected our sales. We managed on the bottom line, though we did pick up a little bit more income and this is primarily net income from royalty and also from merchant banking operation. But I'll give an example of what has happened in the industry during this quarter, especially in the area of plastics. There's one very basic plastic called PET, which is something you all know about, which is used in bottling, and this really a summer type project, and you see a lot of orders come through in the summer for that particular order. But the price of that product this summer dropped, and it dropped in April to July by 17%. So suddenly, there was no orders for the basic plastic product PET. It's interesting to see why that occurred. We'll be -- we have seen that price, that product being picked up a little bit now. But we believe it's only being picked up because people have to reorder and it was we think predominantly by maintenance and production shutdowns. So all the products which you think are stable and should be available, or not, particularly the industries around the world are going through interesting times and we don't expect that not to change. And so we have to live with it and we ask you to prepare for it, so we are looking always to possibly drop a product, come back to it later or increase with other new products, which we managed to do to a degree in this quarter.

Read the rest of this transcript for free on

3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $95.03 0.21%
FB $116.73 0.00%
GOOG $691.02 0.00%
TSLA $247.54 -0.07%
YHOO $36.59 0.00%


Chart of I:DJI
DOW 17,830.76 -210.79 -1.17%
S&P 500 2,075.81 -19.34 -0.92%
NASDAQ 4,805.2910 -57.85 -1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs