Finning 2015 Q3 Results
November 12, 2015
Q3 2015 HIGHLIGHTS
- Basic EPS(1) was $0.19, including severance costs of $0.11 per share, loss on a building sublease of $0.03 per share, and Saskatchewan dealership acquisition costs of $0.01 per share.
- In response to a further decline in market activity, marked by a 27% drop in new equipment sales from Q2 2015, the Company announced an additional workforce reduction of approximately 1,100 people or 8%, bringing the total workforce reduction to approximately 1,900 people or 13% in 2015.
- To improve efficiencies, reduce costs, and optimize service delivery to customers, the Company announced today that it will exit 11 facilities in Western Canada. Combined with the previously announced closure of 16 facilities, the Company's footprint in Western Canada will be reduced by over 20% by mid to late 2016.
- Excluding severance, loss on a building sublease, and facility closure costs, Canada's operating profitability or EBIT margin(1)(2) in Q3 2015 improved from the previous two quarters, despite lower revenues. Including the recent workforce reduction of 450 people, the Canadian operations will have reduced their workforce by approximately 1,100 people or 20% in 2015.
- The recent workforce reduction includes approximately 550 people in South America in response to a significant decline in activity levels from Q2 2015 and in order to maintain historic profitability levels going forward. Since the peak of mid-2013, the South American operations will have reduced their workforce by approximately 1,200 people or 16%.
- The Company generated $140 million in free cash flow(2), a 28% increase from Q3 2014, driven by Canada, including a positive contribution from the newly acquired Saskatchewan dealership.
- During Q3, the Company repurchased 2.2 million of its shares for cancellation, bringing the total share repurchases to 3.1 million shares year-to-date for approximately $70 million.
For the complete results: View Q3 Results