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Press release from CNW Group

Maple Leaf Foods Reports Results for Third Quarter 2012

Wednesday, October 31, 2012

Maple Leaf Foods Reports Results for Third Quarter 201208:04 EDT Wednesday, October 31, 2012TSX: MFIwww.mapleleaffoods.comTORONTO, Oct. 31, 2012 /CNW/ - Maple Leaf Foods Inc. (TSX: MFI) today reported its financial results for the third quarter ended September 30, 2012.Adjusted Operating Earnings(1) for the third quarter were $76.3 million compared to $73.3 million last yearNet earnings for the third quarter were $32.6 million, compared to $43.0 million in the third quarter last yearAdjusted Earnings per Share(2) were $0.29 compared to $0.34 last year ($0.27 excluding a $9.8 million tax adjustment associated with a prior acquisition)"Our third quarter marked a return to operating profit growth in 2012 as we continue to enhance performance in our base business and execute our value creation strategies," said Michael H. McCain, President and CEO. "We are achieving earnings growth in our consumer facing prepared meats and bakery businesses, and managing higher input costs through responsible pricing. While the challenges of consumer bread demand and pork market conditions continue, we are seeing signs of improvement in both."(1): Adjusted Operating Earnings, a non-IFRS measure, is defined as earnings from operations before restructuring and other related costs and associated gains, other income (expense) and the impact of the change in fair value of non-designated interest rate swaps, unrealized (gains) losses on commodity futures contracts and the change in fair value of biological assets.  (2): Adjusted Earnings per Share ("Adjusted EPS"), a non-IFRS measure, is defined as basic earnings per share adjusted for the impact of restructuring and other related costs and associated gains, the impact of the change in fair value of non-designated interest rate swaps, hedge ineffectiveness recognized in earnings, unrealized (gains) losses on commodity futures contracts, and the change in fair value of biological assets, net of tax and non-controlling interest. Please refer to the section entitled Reconciliation of Non-IFRS Financial Measures at the end of this news release. Financial OverviewBusiness Segment ReviewFollowing is a summary of sales by business segment:                  (Unaudited)   Third Quarter  Year-to-Date($ thousands)     2012     2011    2012    2011Meat Products Group    $761,172  $777,194  $2,262,680  $2,257,647Agribusiness Group     76,463   67,934   221,303   196,145Protein Group    $837,635  $845,128  $2,483,983  $2,453,792Bakery Products Group     401,294   417,025   1,176,019   1,194,504Sales    $1,238,929  $1,262,153  $3,660,002  $3,648,296                  The following table summarizes Adjusted Operating Earnings by business segment:                    (Unaudited)   Third Quarter  Year-to-Date($ thousands)     2012     2011    2012    2011Meat Products Group    $ 28,837  $ 20,766  $73,139  $68,515Agribusiness Group      17,620    25,440   55,776   67,151Protein Group    $ 46,457  $ 46,206  $128,915  $135,666Bakery Products Group      30,808    28,094   66,224   70,165Non-allocated costs in AdjustedOperating Earnings(i)      (934)    (953)   (6,404)   (4,261)Adjusted Operating Earnings    $ 76,331  $ 73,347  $188,735  $201,570(i) Non-allocated costs comprise expenses not separately identifiable to business segment groups, and do not form part of the measures used by the Company when assessing the segments' operating results.Protein GroupSales for the Protein Group, which includes the Company's Meat Products Group and Agribusiness Group, declined 0.9% to $837.6 million in the third quarter of 2012, from $845.1 million for the prior year period. Adjusted Operating Earnings were $46.5 million compared to $46.2 million for the third quarter last year. Results for the Company's Meat Products Group and Agribusiness Group should be viewed in combination due to intercompany transactions and correlated factors within these operations.Meat Products GroupIncludes value-added prepared meats, lunch kits; and fresh pork, poultry and turkey products sold to retail, foodservice, industrial and convenience channels. Includes leading Canadian brands such as Maple Leaf ®, Schneiders ® and many leading sub-brands.Meat Products Group sales for the third quarter declined 2.1% to $761.2 million from $777.2 million for the third quarter last year. After adjusting for the impact of a weaker Canadian dollar, which increased the sales value of pork exports, sales declined 2.9%, primarily due to lower foodservice sales in the prepared meats business.Adjusted Operating Earnings for the third quarter increased 38.9% to $28.8 million compared to $20.8 million last year, driven by strong earnings growth in the prepared meats and fresh poultry businesses.Branded sales growth and innovation, as well as operating cost reductions drove margin expansion in the prepared meats business.  The Company's network transformation initiatives also contributed to results, although earnings growth was partly offset by lower sales volumes.  The Company continues to manage cost inflation through price increases as required.Sales of higher value products under the Maple Leaf Prime chicken brand and improvements in industry poultry processor margins drove higher earnings in the fresh poultry operations.Earnings in primary pork processing were consistent with last year as higher pricing and margins in international exports were offset by weaker industry margins in North America. Agribusiness GroupConsists of Canadian hog production, animal by-product recycling operations including bio-diesel manufacturing and distribution.Sales in the Agribusiness Group increased 12.6% to $76.5 million for the third quarter compared to $67.9 million last year, reflecting higher toll feed sales.Adjusted Operating Earnings for the third quarter of 2012 decreased 30.7% to $17.6 million compared to $25.4 million last year. Hog production earnings were lower due to a combination of higher feed costs and lower market prices for hogs.  Lower earnings in the by-products recycling operations compared to historically strong levels last year as prices paid for raw materials and operating costs increased.Bakery Products GroupIncludes fresh and frozen bakery products, including breads, rolls, bagels, specialty and artisan breads, sweet goods, and fresh pasta and sauces sold to retail, foodservice and convenience channels. It includes national brands such as Dempster's®, Tenderflake®, Olivieri® and New York Bakery CoTM, and many leading regional brands.Bakery Products Group sales for the third quarter decreased 3.8% to $401.3 million, compared to $417.0 million last year. After adjusting for the closure of a bakery in the U.K. and currency translation on sales in the U.S. and U.K., sales declined 2.3%, primarily related to lower volume in the fresh bakery business.Adjusted Operating Earnings for the third quarter of 2012 increased 9.7% to $30.8 million compared to $28.1 million last year, driven by higher earnings in the fresh bakery and North American frozen bakery operations, partly offset by lower earnings in the fresh pasta business.  Earnings in the U.K. bakery business were consistent with last year.  Results benefited from positive hedging activities for raw materials during the quarter, although the Company continues to experience inflationary costs and projected increases in flour and dairy costs that will require offsetting price increases. Fresh bakery volumes were consistent with the second quarter of 2012, but lower than last year, reflecting industry volume declines. Despite the lower volumes, margins expanded in the fresh bakery business, principally through cost management. The North American frozen bakery business benefited from higher pricing and increased sales volumes compared to last year. In the U.K., improvements from cost reduction strategies, including the closure of a bakery in the first quarter, were offset by lower volumes and costs of commissioning new croissant capacity.Other MattersOn October 30, 2012, the Company declared a dividend of $0.04 per share payable December 31, 2012 to shareholders of record at the close of business on December 7, 2012. Unless indicated otherwise by the Company in writing on or before the time the dividend is paid, the dividend will be considered an Eligible Dividend for the purposes of the "Enhanced Dividend Tax Credit System".An investor presentation related to the Company's third quarter financial results is available at www.mapleleaffoods.com and can be found under Investor Relations on the Quarterly Results page. A conference call will be held at 2:30 p.m. EDT on October 31, 2012 to review Maple Leaf Foods' third quarter financial results. To participate in the call, please dial 416-340-8018 or 866-223-7781. For those unable to participate, playback will be made available an hour after the event at 905-694-9451 / 800-408-3053 (Passcode 9670637).A webcast presentation of the third quarter financial results will also be available at http://www.media-server.com/m/p/joy9ce24The Company's full financial statements and related Management's Discussion and Analysis are available for download on the Company's website.Reconciliation of Non-IFRS Financial MeasuresThe Company uses the following non-IFRS measures: Adjusted Operating Earnings and Adjusted EPS.  Management believes that these non-IFRS measures provide useful information to both Management and investors in measuring the financial performance of the Company for the reasons outlined below.  These measures do not have a standardized meaning prescribed by IFRS and therefore they may not be comparable to similarly titled measures presented by other publicly traded companies and should not be construed as an alternative to other financial measures determined in accordance with IFRS.Adjusted Operating EarningsThe following tables reconcile earnings from operations before restructuring and other related costs and associated gains, other income (expense) and the impact of the change in fair value of non-designated interest rate swaps, unrealized (gains) losses on commodity futures contracts and the change in fair value of biological assets to net earnings as reported under IFRS in the unaudited earnings for the three and nine months ended, as indicated below.  Management believes that this basis is the most appropriate on which to evaluate operating results, as restructuring and other related costs, other income (expense) and the change in fair value of non-designated interest rate swaps, unrealized (gains) losses on commodity futures contracts and the change in fair value of biological assets are not representative of operational results during the period.                        Three months ended September 30, 2012     Meat      Bakery        (Unaudited)   Products  Agribusiness   Products  Unallocated    ($ thousands)   Group  Group   Group  costs  ConsolidatedNet earnings                  $32,581Income taxes                   12,806Earnings from operations before income taxes                  $45,387Interest expense                   18,442Change in the fair value of non-designated                      interest rate swaps                   (2,247)Other income   (829)   (66)   13   (667)   (1,549)Restructuring and other related costs   4,414   -   170   -   4,584Earnings from Operations  $28,837  $17,620  $30,808  $(12,648)  $64,617Decrease in fair value of biological assets   -   -   -   13,038   13,038Unrealized gains on commodity futures contracts     -   -   -   (1,324)   (1,324)Adjusted Operating Earnings  $28,837  $17,620  $30,808  $(934)  $76,331                                             Three months ended September 30, 2011     Meat      Bakery       (Unaudited)   Products  Agribusiness   Products  Unallocated    ($ thousands)   Group  Group   Group  costs  ConsolidatedNet earnings                  $43,007Income taxes                   4,192Earnings from operations before income taxes                  $47,199Interest expense                   17,927Change in the fair value of non-designated                      interest rate swaps                   10,423Other income   (4,059)   (680)   (286)   (123)   (5,148)Restructuring and other related costs   2,966   -   1,598   318   4,882Earnings from Operations  $20,766  $25,440  $28,094  $983  $75,283Increase in fair value of biological assets   -   -   -   (3,227)   (3,227)Unrealized losses on commodity futures contracts   -   -   -   1,291   1,291Adjusted Operating Earnings  $20,766  $25,440  $28,094  $(953)  $73,347                                             Nine months ended September 30, 2012     Meat      Bakery       (Unaudited)   Products  Agribusiness   Products  Unallocated    ($ thousands)   Group  Group   Group  costs  ConsolidatedNet earnings                  $65,870Income taxes                   27,809Earnings from operations before income taxes                  $93,679Interest expense                   54,498Change in the fair value of non-designated                      interest rate swaps                   (7,180)Other income   (2,996)   (589)   (1,358)   93   (4,850)Restructuring and other related costs   27,456   -   7,259   -   34,715Earnings from Operations  $73,139  $55,776  $66,224  $(24,277)  $170,862Decrease in fair value of biological assets   -   -   -   14,139   14,139Unrealized losses on commodity futures contracts   -   -   -   3,734   3,734Adjusted Operating Earnings  $73,139  $55,776  $66,224  $(6,404)  $188,735                                             Nine months ended September 30, 2011     Meat      Bakery       (Unaudited)   Products  Agribusiness   Products  Unallocated    ($ thousands)   Group  Group   Group  costs  ConsolidatedNet earnings                  $78,136Income taxes                   17,059Earnings from operations before income taxes                  $95,195Interest expense                   52,952Change in the fair value of non-designated                      interest rate swaps                   11,382Other income   (4,088)   (743)   (364)   (32)   (5,227)Restructuring and other related costs   12,296   -   34,195   1,111   47,602Earnings from Operations  $68,515  $67,151  $70,165  $(3,927)  $201,904Decrease in fair value of biological assets   -   -   -   1,094   1,094Unrealized gains on commodity futures contracts     -   -   -   (1,428)   (1,428)Adjusted Operating Earnings  $68,515  $67,151  $70,165  $(4,261)  $201,570Adjusted Earnings per ShareThe following table reconciles Adjusted Earnings per Share to basic earnings per share as reported under IFRS as indicated below.  Management believes this basis is the most appropriate on which to evaluate financial results as restructuring and other related costs and associated gains, the changes in the fair value of non-designated interest rate swaps, hedge ineffectiveness recognized in earnings, unrealized (gains) losses on commodity futures contracts and the change in fair value of biological assets net of tax and non-controlling interests are not representative of operational results.                        Three months ended  Nine months ended(Unaudited)  September 30,  September 30,($ per share)    2012    2011    2012    2011Basic earnings per share  $ 0.22  $ 0.29  $ 0.44  $ 0.53Restructuring and other related costs(i)    0.02    0.03    0.19    0.24Gains associated with restructuring and other related activities(i)    -    (0.02)    -    (0.02)Change in the fair value of non-designated interest rate swaps(ii)     (0.01)    0.05    (0.04)    0.06Change in the fair value of unrealized (gains) losses on commodity                       futures contracts(ii)    (0.01)    0.01    0.02    (0.01)Change in the fair value of biological assets(ii)    0.07    (0.02)    0.07    0.01Adjusted Earnings per Share(iii)  $ 0.29  $ 0.34  $ 0.67  $ 0.81(i)   Includes per share impact of restructuring and other related costs and associated gains, net of tax and non-controlling interest.(ii)   Includes per share impact of the change in fair value of non-designated interest rate swaps, hedge ineffectiveness recognized in earnings, unrealized (gains) losses on commodity futures contracts and the change in fair value of biological assets, net of tax.(iii)   May not add due to rounding.Forward-Looking StatementsThis document contains, and the Company's oral and written public communications often contain, "forward-looking information" within the meaning of applicable securities law.  These statements are based on current expectations, estimates, forecasts and projections about the industries in which the Company operates and beliefs and assumptions made by the Management of the Company. Such statements include, but are not limited to, statements with respect to objectives and goals, as well as statements with respect to beliefs, plans, objectives, expectations, anticipations, estimates and intentions. Specific forward-looking information in this document includes, but is not limited to, statements with respect to the anticipated benefits, timing, actions, costs and investments associated with the Company's Value Creation Plan, expectations regarding improving business trends, expectations regarding actions to reduce costs, restore and/or promote volumes and/or increase prices, improve efficiencies, expected duplicative overhead costs incurred due to the concurrent operation of the new Hamilton fresh bakery and existing bakeries, the expected use of cash balances, source of funds for ongoing business requirements, capital investments and debt repayment, and expectations regarding sufficiency of the allowance for uncollectible accounts. Words such as "expect", "anticipate", "intend", "attempt", "may", "will", "plan", "believe", "seek", "estimate", and variations of such words and similar expressions are intended to identify such forward-looking information. These statements are not guarantees of future performance and involve assumptions and risks and uncertainties that are difficult to predict.In addition, these statements and expectations concerning the performance of the Company's business in general are based on a number of factors and assumptions including, but not limited to: the condition of the Canadian, U.S., U.K. and Japanese economies; the rate of exchange of the Canadian dollar to the U.S. dollar, U.K. British pound and the Japanese yen;  the availability and prices of raw materials, energy and supplies; product pricing; the availability of insurance; the competitive environment and related market conditions; improvement of operating efficiencies whether as a result of the Value Creation Plan or otherwise; continued access to capital; the cost of compliance with environmental and health standards; no adverse results from ongoing litigation; no unexpected actions of domestic and foreign governments; and the general assumption that none of the risks identified below or elsewhere in this document will materialize.  All of these assumptions have been derived from information currently available to the Company including information obtained by the Company from third-party sources. These assumptions may prove to be incorrect in whole or in part.  In addition, actual results may differ materially from those expressed, implied or forecasted in such forward-looking information, which reflect the Company's expectations only as of the date hereof.Factors that could cause actual results or outcomes to differ materially from the results expressed, implied or forecasted by forward-looking information is discussed more fully in the Company's Annual Management's Discussion and Analysis for the period ended December 31, 2011 including the section entitled "Risk Factors", that are updated each quarter in the Management's Discussion and Analysis, and are available on SEDAR at www.sedar.com. The Company does not intend to, and the Company disclaims any obligation to, update any forward-looking information, whether written or oral, or whether as a result of new information, future events or otherwise except as required by law.Maple Leaf Foods Inc. ("Maple Leaf" or the "Company") is a leading Canadian value-added meat, meals and bakery company committed to delivering quality food products to consumers around the world. Headquartered in Toronto, Canada, the Company employs approximately 19,500 people at its operations across Canada and in the United States, Europe and Asia.Condensed Consolidated Interim Financial Statements(Expressed in Canadian dollars)(Unaudited)MAPLE LEAF FOODS INC.Three and nine months ended September 30, 2012 and 2011Consolidated Balance Sheets       As at September 30,  As at September 30,  As at December 31,(In thousands of Canadian dollars)      2012   2011   2011               (Unaudited)   (Unaudited)    ASSETS                 Current assets                  Cash and cash equivalents     $87,300  $-  $- Accounts receivable      85,508   99,375   133,504 Notes receivable      138,742   147,322   98,545 Inventories        313,485   302,864   293,231 Biological assets      40,123   49,154   49,265 Income and other taxes recoverable      43,039   47,530   43,789 Prepaid expenses and other assets      19,419   16,855   24,688 Assets held for sale      23,259   -   -              $750,875  $663,100  $643,022 Property and equipment      1,122,881   1,059,553   1,067,246 Investment property      13,740   11,584   11,232 Employee benefits      101,840   128,613   133,942 Other long-term assets       11,930   12,751   11,926 Deferred tax asset      146,484   138,204   127,456 Goodwill        752,590   754,935   753,739 Intangible assets      207,264   186,070   191,896 Total assets       $3,107,604  $2,954,810  $2,940,459                LIABILITIES AND EQUITY               Current liabilities                Bank indebtedness     $31,279  $17,729  $36,404 Accounts payable and accruals      459,491   488,399   482,059 Provisions        27,382   43,065   44,255 Current portion of long-term debt      6,068   221,792   5,618 Other current liabilities      17,624   73,153   20,409              $541,844  $844,138  $588,745 Long-term debt        1,119,045   715,986   941,956 Employee benefits      429,568   364,555   350,853 Provisions        28,714   25,388   28,936 Other long-term liabilities      81,784   77,504   88,153 Deferred tax liability      8,617   26,444   11,703 Total liabilities      $2,209,572  $2,054,015  $2,010,346Shareholders' equity               Share capital       $902,810  $ 902,810  $902,810Retained deficit        (122,156)   (82,034)   (78,674)Contributed surplus      80,956   71,820   64,327Accumulated other comprehensive loss      (13,942)   (18,332)   (17,042)Treasury stock        (15,370)   (38,915)   (6,347)Total shareholders' equity      $832,298  $835,349  $865,074Non-controlling interest      65,734   65,446   65,039Total equity       $898,032  $900,795  $930,113Total liabilities and equity     $3,107,604  $2,954,810  $2,940,459                                Consolidated Statements of Earnings (In thousands of Canadian dollars, except share amounts)   Three months ended September 30,  Nine months ended September 30,(Unaudited)    2012   2011   2012   2011                  Sales     $1,238,929  $1,262,153  $3,660,002  $3,648,296Cost of goods sold    1,052,334   1,062,392   3,102,720   3,067,773Gross margin   $186,595  $199,761  $557,282  $580,523Selling, general and administrative expenses    121,978   124,478   386,420   378,619Earnings before the following:   $64,617  $75,283  $170,862  $201,904Restructuring and other related costs     (4,584)   (4,882)   (34,715)   (47,602)Change in fair value of non-designated                    interest rate swaps     2,247   (10,423)   7,180   (11,382)Other income     1,549   5,148   4,850   5,227Earnings before interest and income taxes   $63,829  $65,126  $148,177  $148,147Interest expense     18,442   17,927   54,498   52,952Earnings before income taxes   $45,387  $47,199  $93,679  $95,195Income taxes    12,806   4,192   27,809   17,059Net earnings    $32,581  $43,007  $65,870  $78,136Attributed to:                 Common shareholders   $30,159  $39,943  $60,687  $73,708Non-controlling interest    2,422   3,064   5,183   4,428          $32,581  $43,007  $65,870  $78,136Earnings per share attributable to                   common shareholders                  Basic earnings per share   $0.22  $0.29  $0.44  $0.53Diluted earnings per share   $0.21  $0.28  $0.42  $0.52Weighted average number of shares (millions)    139.5   138.0   139.5   138.8                                    Consolidated Statements of Comprehensive Loss (In thousands of Canadian dollars)     Three months ended September 30,  Nine months ended September 30,(Unaudited)        2012   2011   2012   2011                            Net earnings     $32,581  $43,007  $65,870  $78,136Other comprehensive (loss) income                    Change in accumulated foreign currency                      translation adjustment      (3,985)   10,991   (3,702)   10,085 Change in unrealized gains and losses                      on cash flow hedges      2,069   (7,056)   6,312   (4,872) Change in actuarial gains and losses      (50,301)   (134,959)   (88,466)   (134,959)      $(52,217)  $(131,024)  $(85,856)  $(129,746)Comprehensive loss     $(19,636)  $(88,017)  $(19,986)  $(51,610)Attributed to:                     Common shareholders     $(21,079)  $(91,276)  $(23,792)  $(55,598)Non-controlling interest      1,443   3,259   3,806   3,988                                        Consolidated Statements of Changes in Total Equity     Attributable to Common Shareholders                        Total                            accumulated                            other      Non-    (In thousands of Canadian dollars)    Share   Retained  Contributed  comprehensive   Treasury  controlling   Total(Unaudited)    capital   deficit  surplus  loss   stock  interest   equity                                        Balance at                                 December 31, 2011   $902,810  $(78,674)  $64,327  $(17,042)  $(6,347)  $65,039  $930,113  Net earnings      -   60,687   -   -   -   5,183   65,870  Other comprehensive                                (loss) income      -   (87,579)   -   3,100   -   (1,377)   (85,856)  Dividends declared                                ($0.12 per share)    -   (16,590)   -   -   -   (3,202)   (19,792)  Stock-based compensation                                expense      -   -   16,229   -   -   -   16,229  Other      -   -   400   -   -   91   491  Re-purchase of treasury stock    -   -   -   -   (9,023)   -   (9,023)Balance at September 30, 2012   $902,810  $(122,156)  $80,956   $(13,942)  $(15,370)  $65,734  $898,032                                                                                                              Attributable to Common Shareholders                        Total                            accumulated                            other      Non-    (In thousands of Canadian dollars)    Share   Retained  Contributed  comprehensive   Treasury  controlling   Total(Unaudited)    capital   deficit  surplus  loss   stock  interest   equity                                        Balance at                                December 31, 2010   $902,810  $(5,267)  $59,002  $(22,585)  $(10,078)  $62,890  $986,772  Net earnings      -   73,708   -   -   -   4,428   78,136  Other comprehensive                                income (loss)      -   (133,559)   -   4,253   -   (440)   (129,746)  Dividends declared                                ($0.12 per share)    -   (16,916)   -   -   -   (1,322)   (18,238)  Stock-based compensation                                expense      -   -   12,818   -   -   -   12,818  Decrease in non-controlling interest    -   -   -   -   -   (110)   (110)  Re-purchase of treasury stock    -   -   -   -   (28,837)   -   (28,837)Balance at September 30, 2011   $902,810  $(82,034)  $71,820  $(18,332)  $(38,915)  $65,446  $900,795                                                            Consolidated Statements of Cash Flows (In thousands of Canadian dollars)    Three months ended September 30,  Nine months ended September 30,(Unaudited)       2012   2011   2012   2011                           CASH PROVIDED BY (USED IN):                  Operating activities                   Net earnings     $32,581  $43,007  $65,870  $78,136 Add (deduct) items not affecting cash:                    Change in fair value of biological assets     13,038   (3,227)   14,139   1,094  Depreciation and amortization     33,077   32,356   97,646   97,622  Stock-based compensation     5,490   4,270   16,229   12,818  Deferred income taxes     2,158   8,677   6,022   11,946  Income tax current     10,648   (4,485)   21,787   5,113  Interest expense     18,442   17,927   54,498   52,952  Gain on sale of property and equipment     (8)   (3,884)   (421)   (3,766)  Gain on disposal of assets held for sale     (139)   -   (459)   -  Change in fair value of non-designated                      interest rate swaps     (2,247)   10,423   (7,180)   11,382  Change in fair value of                     derivative financial instruments     (2,320)   4,754   3,303   2,832 (Increase) decrease in pension asset     (3,806)   2,011   (8,281)   3,819 Net income taxes paid     (6,993)   (505)   (16,512)   (18,799) Interest paid       (18,045)   (12,740)   (53,423)   (36,588) Change in provision for restructuring and                     other related costs     (525)   (7,429)   6,059   20,638 Other       (5,567)   (1,890)   (7,389)   (3,714) Change in non-cash operating working capital     (4,661)   39,844   (40,233)   (69,530)Cash provided by operating activities    $71,123  $129,109  $151,655  $165,955                         Financing activities                   Dividends paid    $(5,617)  $(5,600)  $(16,590)  $(16,916) Dividends paid to non-controlling interest     (1,271)   (564)   (2,440)   (1,322) Net increase (decrease) in long-term debt     9,136   (55,724)   189,136   32,041 Increase in financing costs     -   (272)   -   (6,396) Purchase of treasury stock     (9,023)   (28,837)   (9,023)   (28,837) Other       (484)   (396)   (1,267)   (1,145)Cash provided by (used in) financing activities    $(7,259)  $(91,393)  $159,816  $(22,575)                          Investing activities                   Additions to long term-assets    $(78,172)  $(52,328)  $(197,611)  $(160,583) Capitalization of interest expense     (1,609)   (1,154)   (4,130)   (4,491) Acquisition of business     -   -   (31,130)   - Proceeds from sale of long-term assets     1,102   11,068   5,851   18,743 Proceeds from disposal of assets held for sale     2,417   -   7,974   - Other       (3)   1,032   -   1,080Cash used in investing activities    $(76,265)  $(41,382)  $(219,046)  $(145,251)                           Increase (decrease) in cash and cash equivalents    $(12,401)  $(3,666)  $92,425  $(1,871)Net cash and cash equivalents, beginning of period     68,422   (14,063)   (36,404)   (15,858)Net cash and cash equivalents, end of period    $56,021  $(17,729)  $56,021  $(17,729)                         Net cash and cash equivalents is comprised of:                  Cash and cash equivalents    $87,300  $-  $87,300  $-Bank indebtedness     (31,279)   (17,729)   (31,279)   (17,729)Net cash and cash equivalents, end of period    $56,021  $(17,729)  $56,021  $(17,729)                                      Segmented Financial Info       Three months ended September 30,  Nine months ended September 30,             2012   2011   2012   2011                          Sales                      Meat Products Group     $761,172  $777,194  $2,262,680  $2,257,647 Agribusiness Group      76,463   67,934   221,303   196,145 Bakery Products Group      401,294   417,025   1,176,019   1,194,504            $1,238,929  $1,262,153  $3,660,002  $3,648,296                          Earnings before restructuring and other                      related costs and other income                    Meat Products Group     $28,837  $20,766  $73,139  $68,515 Agribusiness Group      17,620   25,440   55,776   67,151 Bakery Products Group      30,808   28,094   66,224   70,165 Non-allocated costs      (12,648)   983   (24,277)   (3,927)            $64,617  $75,283  $170,862  $201,904                          Capital expenditures                    Meat Products Group     $63,582  $19,296  $148,712  $51,946 Agribusiness Group      3,242   3,546   8,937   8,708 Bakery Products Group      11,348   29,486   39,962   99,929            $78,172  $52,328  $197,611  $160,583                          Depreciation and amortization                    Meat Products Group     $14,912  $15,784  $44,829  $47,416 Agribusiness Group      4,023   3,805   11,949   11,653 Bakery Products Group      14,142   12,767   40,868   38,553            $33,077  $32,356  $97,646  $97,622        As at September 30,  As at September 30,   As at December 31,       2012  2011   2011                        Total assets                    Meat Products Group      $1,554,470  $1,468,653   $1,465,576 Agribusiness Group       213,808   215,731    223,013 Bakery Products Group       999,391   953,572    937,292 Non-allocated assets       339,935   316,854    314,578       $3,107,604  $2,954,810   $2,940,459                        Goodwill                    Meat Products Group      $442,692  $442,336   $442,336 Agribusiness Group       13,845   13,845    13,845 Bakery Products Group       296,053   298,754    297,558       $752,590  $754,935   $753,739       SOURCE: Maple Leaf Foods Inc.For further information: Investor Contact: Nick Boland, VP Investor Relations: 416-926-2005 Media Contact: 416-926-2020