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Winpak Reports Second Quarter Results

WINNIPEG, MANITOBA -- (Marketwired) -- 07/24/14 -- Winpak Ltd. (WPK) (TSX:WPK) today reports consolidated results in US dollars for the second quarter of 2014, which ended on June 29, 2014.


                                         Quarter Ended    Year-To-Date Ended
                                        ----------------- ------------------
                                         June 29  June 30  June 29   June 30
                                            2014     2013     2014      2013
                                        -------- -------- -------- ---------
(thousands of US dollars, except per                                        
 share amounts)                                                             
Revenue                                  199,426  177,032  387,503   346,981
                                        -------- -------- -------- ---------
Net income                                19,538   17,392   35,994    33,242
                                        -------- -------- -------- ---------
                                        -------- -------- -------- ---------
                                                                            
Income tax expense                         9,367    8,041   16,602    14,903
Net finance expense                          107      114       44       219
Depreciation and amortization              7,351    6,260   14,716    12,831
                                        -------- -------- -------- ---------
EBITDA (1)                                36,363   31,807   67,356    61,195
                                        -------- -------- -------- ---------
                                        -------- -------- -------- ---------
                                                                            
Net income attributable to equity                                           
 holders of the Company                   19,406   17,095   35,569    33,084
Net income attributable to non-                                             
 controlling interests                       132      297      425       158
                                        -------- -------- -------- ---------
Net income                                19,538   17,392   35,994    33,242
                                        -------- -------- -------- ---------
                                        -------- -------- -------- ---------
                                                                            
Basic and diluted earnings per share                                        
 (cents)                                      30       26       55        51
                                        -------- -------- -------- ---------
                                        -------- -------- -------- ---------

Winpak Ltd. manufactures and distributes high-quality packaging materials and related packaging machines. The Company's products are used primarily for the packaging of perishable foods, beverages and in health-care applications.

(1) EBITDA is not a recognized measure under International Financial Reporting Standards (IFRS). Management believes that in addition to net income, this measure provides useful supplemental information to investors including an indication of cash available for distribution prior to debt service, capital expenditures and income taxes. Investors should be cautioned, however, that this measure should not be construed as an alternative to net income, determined in accordance with IFRS, as an indicator of the Company's performance. The Company's method of calculating this measure may differ from other companies, and accordingly, the results may not be comparable.

(presented in US dollars)

Forward-looking statements: Certain statements made in the following report contain forward-looking statements including, but not limited to, statements concerning possible or assumed future results of operations of the Company. Forward-looking statements represent the Company's intentions, plans, expectations and beliefs, and are not guarantees of future performance. Such forward-looking statements represent Winpak's current views based on information as at the date of this report. They involve risks, uncertainties and assumptions and the Company's actual results could differ, which in some cases may be material, from those anticipated in these forward-looking statements. Unless otherwise required by applicable securities law, we disclaim any intention or obligation to publicly update or revise this information, whether as a result of new information, future events or otherwise. The Company cautions investors not to place undue reliance upon forward-looking statements.

Financial Performance

Net income attributable to common shareholders for the second quarter of 2014 expanded to $19.4 million or 30 cents in earnings per share compared to $17.1 million or 26 cents per share in the corresponding quarter of 2013, an increase of 13.5 percent. Substantial organic revenue growth boosted earnings per share by 3.5 cents but the effects were muted by a reduction in gross profit margins which lowered earnings per share by 2.5 cents. Additional savings were generated by restricting operating expense growth, which contributed 2.0 cents in earnings per share, while foreign exchange positively impacted earnings per share in the quarter by 1.0 cent. A reduction in the proportion of earnings attributable to non-controlling interests in the second quarter of 2014 resulted in an addition of 0.5 cents to earnings per share but was offset by the negative impact on net income of a higher effective income tax rate.

For the six months ended June 29, 2014, net income attributable to common shareholders of $35.6 million or 55 cents surpassed the 2013 first-half result of $33.1 million or 51 cents by 7.5 percent. Greater sales volumes in 2014 enhanced earnings per share by 6.5 cents and was supplemented by controlled growth in operating expenses which added a further 3.0 cents to earnings per share. Foreign exchange also favorably complemented 2014 first-half earnings by 1.0 cent per share. On the other hand, a lower gross profit margin in the first six months of 2014 compared to the prior year corresponding period decreased earnings per share by 5.5 cents while a greater proportion of earnings attributable to non-controlling interests and a higher effective income tax rate negatively impacted earnings per share by 0.5 cents each.

Revenue

Revenue in the second quarter of 2014 rose to $199.4 million, a progression of $22.4 million or 12.6 percent over the same period in 2013 and represented the fifth consecutive three-month period of quarterly highs in revenue. Volume growth was strong at 12.7 percent and was widespread across many of the Company's product groups. The rigid container and lidding product groups experienced escalations in volumes in the second quarter of between 15 and 20 percent as business was robust in yogurt, condiment and specialty beverage containers and lids. Shipments were also up solidly at over 10 percent in modified atmosphere packaging with growth from the existing client base as well as new customer additions to the portfolio. Packaging machinery volumes continued to be brisk, advancing over 20 percent from the second quarter of 2013. Biaxially oriented nylon and specialty films were both challenged in the growth area with volumes remaining flat to slightly negative although the product mix of the latter was more favorable than the corresponding quarter of 2013 with increasing shrink bag sales. Selling price/mix changes had a favorable impact of 0.9 percent on revenues for the quarter while foreign exchange, due to a weakening in the Canadian dollar, decreased revenues in the quarter by 1.0 percent in comparison to the second quarter of 2013.

For the first half of 2014, revenue of $387.5 million advanced by $40.5 million or 11.7 percent from the 2013 comparable period. Volumes rose by a sizable 11.8 percent versus the first half of the prior year. Rigid container volumes outpaced all of the other product groups, bettering the 2013 year-to-date results by nearly 20 percent, followed closely behind by lidding shipments, primarily on the strength of yogurt and specialty beverage offerings. Modified atmosphere packaging, biaxially oriented nylon film and packaging machinery first-half volumes all exceeded the prior year corresponding shipments by approximately 10 percent. Only specialty film quantities lagged behind the previous year-to-date demand, albeit at a more favorable product mix. Selling price/mix changes had an overall positive effect on revenue of 0.9 percent while foreign exchange negatively impacted top-line growth in comparison to the first half of 2013 by 1.0 percent.

Gross profit margins

Gross profit margins for the second quarter of 2014 fell 1.2 percentage points to 27.8 percent of revenue from the 29.0 percent recorded in the same quarter of 2013. However, this was an improvement of 0.6 percentage points from the gross profit margin realized in the first quarter of this year. A narrowing of the spread between raw material costs and selling prices along with higher manufacturing costs were responsible for a reduction in earnings per share of 2.5 cents compared to the second quarter of 2013. Manufacturing variances, although unfavorable in relation to the second quarter of last year, showed improvement from the first three months of 2014 as recently added capacity was more fully utilized and familiarity with new products and processes was attained.

For the first six months of 2014, gross profit margins of 27.5 percent of revenue fell short of 2013 year-to-date levels of 28.9 percent by 1.4 percentage points. This translated into a decrease in earnings per share of 5.5 cents. Product mix and a response to competitive conditions at a few selected accounts were primarily responsible for a compression in the difference between selling prices and raw material costs.

Manufacturing performance, although showing signs of improvement in the past quarter, has nonetheless lagged behind the achievement from the first two quarters of 2013 due to higher waste levels in 2014 encountered on new processes and under-utilized capacity of recent capital expenditures.

For reference, the following presents the weighted indexed purchased cost of Winpak's eight primary raw materials in the reported quarter and each of the preceding eight quarters, where base year 2001 = 100. The index was rebalanced as of December 30, 2013 to reflect the mix of the eight primary raw materials purchased in 2013.


----------------------------------------------------------------------------
Quarter and Year        2/14  1/14  4/13  3/13  2/13  1/13  4/12  3/12  2/12
----------------------------------------------------------------------------
Purchase Price Index   178.1 178.7 175.0 173.2 173.5 176.5 170.6 167.3 174.5
----------------------------------------------------------------------------

The purchase price index in the second quarter of 2014 was virtually unchanged from the previous quarter, declining by a mere 0.3 percent. While certain items within the index declined and others rose, no one component changed by more than 4 percent in the quarter. Stability was definitely the feature on an overall basis and has been so for the past year, with the index fluctuating within a narrow 3 percent band during this time.

Expenses and Other

Operating expenses in the second quarter of 2014, adjusted for foreign exchange, increased by almost 7 percent while volumes progressed by over 12 percent when referenced to the applicable period in 2013. The increase in operating expenses was only 1.6 percent when freight and distribution costs, which tend to vary directly with volume, are excluded. The net result was an advancement in earnings per share of approximately 2.0 cents. A lesser proportion of earnings attributable to non-controlling interests further supplemented earnings per share by 0.5 cents in the second quarter which was offset by greater income taxes as a result of more earnings being realized in higher income tax rate jurisdictions. Foreign exchange had a favorable impact on earnings per share of approximately 1.0 cent. The weaker Canadian dollar in the second quarter of 2014 versus the comparative period in 2013 had a positive impact on earnings as expenses exceeded revenues in that currency. In addition, although on average the Canadian currency was weaker in the second quarter of 2014 than the same period in 2013, the Canadian dollar strengthened from the start to the end of the quarter versus its US counterpart and resulted in foreign exchange gains on the translation of Canadian net monetary assets; the opposite was true in the second quarter of 2013.

On a year-to-date basis, operating expenses, excluding foreign exchange, increased at a much lower rate than the growth in sales volumes, resulting in an addition to earnings per share of 3.0 cents. Freight and distribution costs, which are variable in nature, accounted for the entire rise in operating expenses; all other expenses in aggregate were flat. Costs related to additional head count to foster sales growth were offset by a reduction in pre-production expenses in 2014. A greater proportion of year-to-date earnings attributable to non-controlling interests and a higher effective income tax rate in 2014 each resulted in a decrease in earnings per share of approximately 0.5 cents. In comparison to the first half of 2013, foreign exchange had a positive effect on earnings per share of 1.0 cent primarily due to the lower average value of the Canadian dollar in 2014 in relation to the US currency and the resulting impact from converting the Company's net Canadian dollar expenses into US funds.


Summary of Quarterly Results                                                
        Thousands of US dollars, except per share amounts (US cents)        
                                 ------------------------------------
                                        Q2       Q1       Q4       Q3
                                      2014     2014     2013     2013
                                 ------------------------------------
                                                                     
Revenue                            199,426  188,077  187,964  179,926
Net income attributable to                                           
 equity holders of the Company      19,406   16,163   20,951   17,362
EPS                                     30       25       32       27
                                 ------------------------------------

                              ------------------------------------
                                     Q2       Q1       Q4       Q3
                                   2013     2013  2012(i)  2012(i)
                              ------------------------------------
                                                                  
Revenue                         177,032  169,949  173,226  165,399
Net income attributable to                                        
 equity holders of the Company   17,095   15,989   22,071   16,783
EPS                                  26       25       34       26
                              ------------------------------------

(i)Amounts have been restated to reflect the retrospective impact of amended IAS 19 "Employee Benefits", which included an increase in net finance expense due to the reduction in the expected return on defined benefit pension plan assets and an increase in general and administrative expenses following the reclassification of certain plan administration costs.

Capital Resources, Cash Flow and Liquidity

The Company's cash and cash equivalents balance ended the second quarter of 2014 at $114.2 million, a rise of $1.3 million from the end of the first quarter. Cash flow from operating activities before changes in working capital of $34.9 million outpaced the prior year quarter by $2.8 million on the strength of higher net income production. Working capital additions consumed $11.9 million, primarily in trade and other receivables and inventories, in concert with the revenue growth in the quarter. In addition, cash was utilized for plant and equipment additions of $9.5 million, income tax payments of $9.5 million, dividends to common shareholders of $1.8 million, and other items totalling $0.9 million.

For the first six months of 2014, the cash and cash equivalents balance declined by $46.9 million, primarily due to the payment of a special dividend of $58.5 million ($65.0 million Canadian) in the first quarter of the year. Winpak continued to generate strong cash flows from operating activities before changes in working capital of $65.3 million, an increment of $4.1 million from the first half of 2013. Cash was employed for working capital additions of $11.9 million, mainly to foster growth in sales volumes. Furthermore, cash was utilized for plant and equipment expenditures of $21.7 million, income tax payments of $12.6 million, regular quarterly dividends of $3.6 million, employee defined benefit plan payments of $3.1 million and other items totaling $0.8 million. The Company remains debt-free and has unutilized operating lines of $38 million, with the ability to increase borrowing capacity further should the need arise.

Looking Forward

After a solid start to the first half of the year where volumes grew by close to 12 percent, the Company continues to remain optimistic for the remainder of 2014 with regard to new revenue generation. A number of significant opportunities remain in the sales pipeline and have the potential to result in meaningful future revenue growth; however, the timing for conversion of these into new business for Winpak remains uncertain as customers' protocols for new supply govern the process. In the near term, raw material costs are expected to tilt slightly upward for most materials with the exception of resins dependent on benzene such as nylon and polystyrene, where the price escalation is expected to be more pronounced. Manufacturing performance has been a prime focus for the organization in 2014 and should continue to improve as the year progresses as capacity utilization expands and production of new products becomes more refined. Capital spending is expected to accelerate in the second half of the year to finish in the $55 to $65 million range for 2014 to address growth prospects and areas where existing capacity is currently constrained. The Company remains committed to organic growth through capital investment and will continue to pursue acquisition opportunities in Winpak's core competencies in sophisticated food and health-care packaging but will remain patient in executing a transaction only when the proper fit and price are present to add long-term value to the Company's shareholders.


Winpak Ltd.                                                                 
Interim Condensed Consolidated Financial Statements                         
Second Quarter Ended: June 29, 2014                                         

These interim condensed consolidated financial statements have not been audited or reviewed by the Company's independent external auditor, KPMG LLP. For a complete set of notes to the condensed consolidated financial statements, refer to www.sedar.com or the Company's website, www.winpak.com.


Winpak Ltd.                                                                 
Condensed Consolidated Balance Sheets                                       
(thousands of US dollars) (unaudited)                                       
                                                                            
                                                      June 29   December 29 
                                                         2014          2013 
----------------------------------------------------------------------------
                                                                            
Assets                                                                      
                                                                            
Current assets:                                                             
  Cash and cash equivalents                           114,171       161,090 
  Trade and other receivables                         107,799        98,408 
  Income taxes receivable                               6,721         3,580 
  Inventories                                          99,728        92,304 
  Prepaid expenses                                      5,028         3,074 
  Derivative financial instruments                        239             - 
                                                   ----------   ------------
                                                      333,686       358,456 
                                                                            
Non-current assets:                                                         
  Property, plant and equipment                       337,909       329,714 
  Intangible assets                                    15,070        14,960 
  Employee benefit plan assets                          9,084         7,131 
  Deferred tax assets                                   2,610         2,943 
                                                   ----------   ------------
                                                      364,673       354,748 
                                                   ----------   ------------
Total assets                                          698,359       713,204 
                                                   ----------   ------------
                                                                            
Equity and Liabilities                                                      
                                                                            
Current liabilities:                                                        
  Trade payables and other liabilities                 70,009        63,182 
  Provisions                                              427           427 
  Income taxes payable                                  2,871         2,048 
  Derivative financial instruments                         51           903 
                                                   ----------   ------------
                                                       73,358        66,560 
                                                                            
Non-current liabilities:                                                    
  Employee benefit plan liabilities                     3,971         3,365 
  Deferred income                                      15,476        14,490 
  Provisions                                            6,585         6,524 
  Deferred tax liabilities                             32,016        29,652 
                                                   ----------   ------------
                                                       58,048        54,031 
                                                   ----------   ------------
Total liabilities                                     131,406       120,591 
                                                   ----------   ------------
                                                                            
Equity:                                                                     
  Share capital                                        29,195        29,195 
  Reserves                                                138          (661)
  Retained earnings                                   521,351       547,891 
                                                   ----------   ------------
Total equity attributable to equity holders of                              
 the Company                                          550,684       576,425 
Non-controlling interests                              16,269        16,188 
                                                   ----------   ------------
Total equity                                          566,953       592,613 
                                                   ----------   ------------
Total equity and liabilities                          698,359       713,204 
                                                   ----------   ------------
                                                                            
                                                                            
Winpak Ltd.                                                                 
Condensed Consolidated Statements of Income                                 
(thousands of US dollars, except per share amounts) (unaudited)             
                                                                            
                                         Quarter Ended    Year-To-Date Ended
                                  --------------------  --------------------
                                  --------------------  --------------------
                                    June 29    June 30    June 29    June 30
                                       2014       2013       2014       2013
------------------------------------------------------  --------------------
------------------------------------------------------  --------------------
Revenue                             199,426    177,032    387,503    346,981
Cost of sales                     (144,072)  (125,754)  (280,941)  (246,832)
                                  --------- ----------  --------- ----------
Gross profit                         55,354     51,278    106,562    100,149
                                                                            
Sales, marketing and                                                        
 distribution expenses             (15,889)   (14,464)   (31,155)   (28,559)
General and administrative                                                  
 expenses                           (5,875)    (6,428)   (13,521)   (14,251)
Research and technical expenses     (4,004)    (3,539)    (7,356)    (6,923)
Pre-production expenses               (251)    (1,074)      (251)    (1,600)
Other expenses                        (323)      (226)    (1,639)      (452)
                                  --------- ----------  --------- ----------
Income from operations               29,012     25,547     52,640     48,364
Finance income                          113         94        264        199
Finance expense                       (220)      (208)      (308)      (418)
                                  --------- ----------  --------- ----------
Income before income taxes           28,905     25,433     52,596     48,145
Income tax expense                  (9,367)    (8,041)   (16,602)   (14,903)
                                  --------- ----------  --------- ----------
Net income for the period            19,538     17,392     35,994     33,242
                                  --------- ----------  --------- ----------
                                                                            
                                  --------- ----------  --------- ----------
Attributable to:                                                            
  Equity holders of the Company      19,406     17,095     35,569     33,084
  Non-controlling interests             132        297        425        158
                                  --------- ----------  --------- ----------
                                     19,538     17,392     35,994     33,242
                                  --------- ----------  --------- ----------
Basic and diluted earnings per                                              
 share - cents                           30         26         55         51
                                  --------- ----------  --------- ----------
                                                                            
Condensed Consolidated Statements of Comprehensive Income                   
(thousands of US dollars) (unaudited)                                       
                                                                            
                                         Quarter Ended    Year-To-Date Ended
                                  --------------------  --------------------
                                  --------------------  --------------------
                                    June 29    June 30    June 29    June 30
                                       2014       2013       2014       2013
------------------------------------------------------  --------------------
------------------------------------------------------  --------------------
Net income for the period            19,538     17,392     35,994     33,242
                                  --------- ----------  --------- ----------
                                                                            
                                  --------- ----------  --------- ----------
Items that will not be                                                      
 reclassified to the statements                                             
 of income:                                                                 
-------------------------------                                             
Cash flow hedge gains (losses)                                              
 recognized                               -          8          -       (94)
Cash flow hedge gains                                                       
 transferred to property, plant                                             
 and equipment                            -       (17)          -       (50)
Income tax effect                         -          -          -          -
                                  --------- ----------            ----------
                                          -        (9)          -      (144)
                                  --------- ----------            ----------
Items that are or may be                                                    
 reclassified subsequently to                                               
 the statements of income:                                                  
-------------------------------                                             
Cash flow hedge gains (losses)                                              
 recognized                             709      (982)      (178)    (1,418)
Cash flow hedge losses                                                      
 transferred to the statements                                              
 of income                              587         88      1,269         67
Income tax effect                     (346)        239      (292)        361
                                  --------- ----------  --------- ----------
                                        950      (655)        799      (990)
                                  --------- ----------  --------- ----------
Other comprehensive income                                                  
 (loss) for the period - net of                                             
 income tax                             950      (664)        799    (1,134)
                                  --------- ----------  --------- ----------
Comprehensive income for the                                                
 period                              20,488     16,728     36,793     32,108
                                  --------- ----------  --------- ----------
                                                                            
Attributable to:                                                            
  Equity holders of the Company      20,356     16,431     36,368     31,950
  Non-controlling interests             132        297        425        158
                                  --------- ----------  --------- ----------
                                     20,488     16,728     36,793     32,108
                                  --------- ----------  --------- ----------
                                                                            
Winpak Ltd.                                                                 
Condensed Consolidated Statements of Changes in Equity                      
(thousands of US dollars) (unaudited)                                       


                                                                            
                               Attributable to equity holders of the        
                                             Company                        
                              --------------------------------------        
                              --------------------------------------        
                                         Share            Retained 
                                       capital  Reserves  earnings 
-------------------------------------------------------------------
                                                                   
Balance at December 31, 2012            29,195       250   470,925 
                                      -----------------------------
                                                                   
  Comprehensive (loss) income for                                  
   the period                                                      
    Cash flow hedge losses, net of                                 
     tax                                     -   (1,133)         - 
    Cash flow hedge losses                                         
     transferred to the statements                                 
     of income, net of tax                   -        49         - 
    Cash flow hedge gains                                          
     transferred to property, plant                                
     and equipment                           -      (50)         - 
                                      -----------------------------
  Other comprehensive loss                   -   (1,134)         - 
  Net income for the period                  -         -    33,084 
                                      -----------------------------
  Comprehensive (loss) income for                                  
   the period                                -   (1,134)    33,084 
                                      -----------------------------
                                                                   
  Dividends                                  -         -   (3,773) 
                                      -----------------------------
                                                                   
Balance at June 30, 2013                29,195     (884)   500,236 
                                      -----------------------------
                                                                   
                                                                   
-------------------------------------------------------------------
-------------------------------------------------------------------
                                                                   
Balance at December 30, 2013            29,195     (661)   547,891 
                                      -----------------------------
                                                                   
  Comprehensive income for the                                     
   period                                                          
    Cash flow hedge losses, net of                                 
     tax                                     -     (130)         - 
    Cash flow hedge losses                                         
     transferred to the statements                                 
     of income, net of tax                   -       929         - 
                                      -----------------------------
  Other comprehensive income                 -       799         - 
  Net income for the period                  -         -    35,569 
                                      -----------------------------
  Comprehensive income for the                                     
   period                                    -       799    35,569 
                                      -----------------------------
                                                                   
  Dividends                                  -         -  (62,109) 
                                      -----------------------------
                                                                   
Balance at June 29, 2014                29,195       138   521,351 
                                      -----------------------------

                                                     Non-         
                                              controlling    Total
                                       Total    interests   equity
------------------------------------------------------------------
                                                                  
Balance at December 31, 2012         500,370       15,718  516,088
                                    ------------------------------
                                                                  
  Comprehensive (loss) income for                                 
   the period                                                     
    Cash flow hedge losses, net of                                
     tax                             (1,133)            -  (1,133)
    Cash flow hedge losses                                        
     transferred to the statements                                
     of income, net of tax                49            -       49
    Cash flow hedge gains                                         
     transferred to property, plant                               
     and equipment                      (50)            -     (50)
                                    ------------------------------
  Other comprehensive loss           (1,134)            -  (1,134)
  Net income for the period           33,084          158   33,242
                                    ------------------------------
  Comprehensive (loss) income for                                 
   the period                         31,950          158   32,108
                                    ------------------------------
                                                                  
  Dividends                          (3,773)        (218)  (3,991)
                                    ------------------------------
                                                                  
Balance at June 30, 2013             528,547       15,658  544,205
                                    ------------------------------
                                                                  
                                                                  
------------------------------------------------------------------
------------------------------------------------------------------
                                                                  
Balance at December 30, 2013         576,425       16,188  592,613
                                    ------------------------------
                                                                  
  Comprehensive income for the                                    
   period                                                         
    Cash flow hedge losses, net of                                
     tax                               (130)            -    (130)
    Cash flow hedge losses                                        
     transferred to the statements                                
     of income, net of tax               929            -      929
                                    ------------------------------
  Other comprehensive income             799            -      799
  Net income for the period           35,569          425   35,994
                                    ------------------------------
  Comprehensive income for the                                    
   period                             36,368          425   36,793
                                    ------------------------------
                                                                  
  Dividends                         (62,109)        (344) (62,453)
                                    ------------------------------
                                                                  
Balance at June 29, 2014             550,684       16,269  566,953
                                    ------------------------------
                                                                            
                                                                            
Winpak Ltd.                                                                 
Condensed Consolidated Statements of Cash Flows                             
(thousands of US dollars) (unaudited)                                       
                                                                            
                                       Quarter Ended     Year-To-Date Ended 
                                      ------------------ -------------------
                                      ------------------ -------------------
                                      June 29   June 30   June 29   June 30 
                                         2014      2013      2014      2013 
-------------------------------------------------------- -------------------
-------------------------------------------------------- -------------------
                                                                            
Cash provided by (used in):                                                 
                                                                            
Operating activities:                                                       
                                                                            
  Net income for the period            19,538    17,392    35,994    33,242 
  Items not involving cash:                                                 
    Depreciation                        7,742     6,456    15,332    13,215 
    Amortization - deferred income       (520)     (308)     (879)     (602)
    Amortization - intangible assets      129       112       263       218 
    Employee defined benefit plan                                           
     expenses                             938     1,066     1,833     2,103 
    Net finance expense                   107       114        44       219 
    Income tax expense                  9,367     8,041    16,602    14,903 
    Other                              (2,411)     (762)   (3,892)   (2,081)
                                      -------- --------- --------- ---------
      Cash flow from operating                                              
       activities before the                                                
       following                       34,890    32,111    65,297    61,217 
  Change in working capital:                                                
    Trade and other receivables        (5,038)   (2,894)   (9,391)   (6,767)
    Inventories                        (7,931)   (2,592)   (7,424)   (4,638)
    Prepaid expenses                      (26)     (306)   (1,954)   (1,044)
    Trade payables and other                                                
     liabilities                        1,118       668     6,837     1,031 
                                                                            
  Provisions                               (1)     (430)      (25)     (616)
  Employee defined benefit plan                                             
   payments                              (317)     (511)   (3,141)   (2,383)
  Income tax paid                      (9,458)   (9,612)  (12,609)  (17,280)
  Interest received                        42       129       129       204 
  Interest paid                          (135)       (3)     (138)       (8)
                                      -------- --------- --------- ---------
      Net cash from operating                                               
       activities                      13,144    16,560    37,581    29,716 
                                      -------- --------- --------- ---------
                                                                            
Investing activities:                                                       
                                                                            
  Acquisition of property, plant and                                        
   equipment - net                     (9,527)  (10,165)  (21,692)  (25,161)
  Acquisition of intangible assets       (175)      (38)     (362)     (296)
                                      -------- --------- --------- ---------
                                       (9,702)  (10,203)  (22,054)  (25,457)
                                      -------- --------- --------- ---------
                                                                            
Financing activities:                                                       
                                                                            
  Dividends paid                       (1,763)   (1,919)  (62,102)   (3,876)
  Dividend paid to non-controlling                                          
   interests in subsidiary               (344)     (218)     (344)     (218)
                                      -------- --------- --------- ---------
                                       (2,107)   (2,137)  (62,446)   (4,094)
                                      -------- --------- --------- ---------
                                                                            
Change in cash and cash equivalents     1,335     4,220   (46,919)      165 
                                                                            
Cash and cash equivalents, beginning                                        
 of period                            112,836   129,248   161,090   133,303 
                                      -------- --------- --------- ---------
                                                                            
Cash and cash equivalents, end of                                           
 period                               114,171   133,468   114,171   133,468 
                                      -------- --------- --------- ---------

Contacts:
Winpak Ltd.
K.P. Kuchma
Vice President and CFO
(204) 831-2254

Winpak Ltd.
B.J. Berry
President and CEO
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SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducte...
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin,...
With SaaS use rampant across organizations, how can IT departments track company data and maintain security? More and more departments are commissioning their own solutions and bypassing IT. A cloud environment is amorphous and powerful, allowing you to set up solutions for all of your user needs: document sharing and collaboration, mobile access, e-mail, even industry-specific applications. In his session at 16th Cloud Expo, Shawn Mills, President and a founder of Green House Data, discussed h...
Mobile, social, Big Data, and cloud have fundamentally changed the way we live. “Anytime, anywhere” access to data and information is no longer a luxury; it’s a requirement, in both our personal and professional lives. For IT organizations, this means pressure has never been greater to deliver meaningful services to the business and customers.
Container technology is sending shock waves through the world of cloud computing. Heralded as the 'next big thing,' containers provide software owners a consistent way to package their software and dependencies while infrastructure operators benefit from a standard way to deploy and run them. Containers present new challenges for tracking usage due to their dynamic nature. They can also be deployed to bare metal, virtual machines and various cloud platforms. How do software owners track the usag...
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.
Chuck Piluso presented a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. Prior to Secure Infrastructure and Services, Mr. Piluso founded North American Telecommunication Corporation, a facilities-based Competitive Local Exchange Carrier licensed by the Public Service Commission in 10 states, serving as the company's chairman and president from 1997 to 2000. Between 1990 and 1997, Mr. Piluso served as chairman & founder of International Te...
There are many considerations when moving applications from on-premise to cloud. It is critical to understand the benefits and also challenges of this migration. A successful migration will result in lower Total Cost of Ownership, yet offer the same or higher level of robustness. In his session at 15th Cloud Expo, Michael Meiner, an Engineering Director at Oracle, Corporation, analyzed a range of cloud offerings (IaaS, PaaS, SaaS) and discussed the benefits/challenges of migrating to each offe...
Puppet Labs has announced the next major update to its flagship product: Puppet Enterprise 2015.2. This release includes new features providing DevOps teams with clarity, simplicity and additional management capabilities, including an all-new user interface, an interactive graph for visualizing infrastructure code, a new unified agent and broader infrastructure support.
SYS-CON Events announced today that MobiDev, a software development company, will exhibit at the 17th International Cloud Expo®, which will take place November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software development company with representative offices in Atlanta (US), Sheffield (UK) and Würzburg (Germany); and development centers in Ukraine. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobi...
One of the hottest areas in cloud right now is DRaaS and related offerings. In his session at 16th Cloud Expo, Dale Levesque, Disaster Recovery Product Manager with Windstream's Cloud and Data Center Marketing team, will discuss the benefits of the cloud model, which far outweigh the traditional approach, and how enterprises need to ensure that their needs are properly being met.
Learn how to solve the problem of keeping files in sync between multiple Docker containers. In his session at 16th Cloud Expo, Aaron Brongersma, Senior Infrastructure Engineer at Modulus, discussed using rsync, GlusterFS, EBS and Bit Torrent Sync. He broke down the tools that are needed to help create a seamless user experience. In the end, can we have an environment where we can easily move Docker containers, servers, and volumes without impacting our applications? He shared his results so yo...
Palerra, the cloud security automation company, announced enhanced support for Amazon AWS, allowing IT security and DevOps teams to automate activity and configuration monitoring, anomaly detection, and orchestrated remediation, thereby meeting compliance mandates within complex infrastructure deployments. "Monitoring and threat detection for AWS is a non-trivial task. While Amazon's flexible environment facilitates successful DevOps implementations, it adds another layer, which can become a ...
In their session at 17th Cloud Expo, Hal Schwartz, CEO of Secure Infrastructure & Services (SIAS), and Chuck Paolillo, CTO of Secure Infrastructure & Services (SIAS), provide a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. In his role as CEO of Secure Infrastructure & Services (SIAS), Hal Schwartz provides leadership and direction for the company.