Financial Statements | Member Report 2016 | UFA Co-operative Ltd

Member Report 2016: Financial Statements

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Capital Spending and Depreciation

The net book value of capital assets, excluding goodwill and intangible assets, was $203.5 million ending 2016. During 2016, UFA invested $13.8 million in assets consisting primarily of property and equipment, which represented a significant decrease from $36.4 million in 2015. The additions for 2016 include $2.0 million for AgriBusiness assets including a fertilizer blending facility in the Peace Region; $7.4 million for petroleum maintenance investments, diesel emission fluid technology and site upgrades; $1.8 million for capital leases consisting of replacement rolling stock and $2.2 million for information technology projects and system upgrades.

A depreciation and amortization charge of $30.4 million was incurred in 2016 representing a decrease from the prior year charge of $33.0 million.

Long Term Debt

At Dec. 25, 2016, UFA had long-term debt of $66.7 million (2015 - $103.9 million) net of a current portion of $2.9 million (2015 - $2.6 million). The majority of this balance is comprised of borrowings on an asset-based lending agreement (Credit Agreement). The remainder of long-term debt is comprised of capital leases on IT infrastructure, trucks and other equipment. The decrease in borrowings is attributable to reduced working capital financing requirements due to improved inventory management and lower petroleum accounts receivable.

UFA’s Credit Agreement is an asset-based revolving credit facility in the maximum aggregate amount of $275.0 million. The amount available to be drawn under the Credit Agreement will vary from time to time based on UFA’s inventory and accounts receivable balances among other factors. Available funds on the Credit Agreement were $104.0 million at December 25, 2016 compared to $82.2 million at December 27, 2015.

UFA has three different voluntary member loan programs: the on-demand Member Loan program, the High Yield Member Investment Plan (HYMIP) program and the 5.5-for-3 Member Investment Plan (5.5for3MIP) program. At the end of 2016, the total outstanding under the three programs was $69.9 million ($70.8 million in 2015), of which $44.5 million ($44.9 million in 2015) is classified as long-term debt. The $0.9 million net decrease in total member loans relates primarily to redemption of the 4-for-1 Member Investment Plan (4for1MIP) and withdrawals from the on-demand Member Loan. UFA’s member investment programs will continue to be an important component in UFA’s long-term debt arrangements.

Total financing costs for 2016 were $6.9 million, down from $7.4 million in 2015.

Loss Before Patronage Allocation and Income Taxes

Members' Equity

Consolidated Balance Sheet

Image of consolidated balance sheet for years 2015 and 2016

The full annual report, including the consolidated financial statements, MD&A and accompanying notes, is available here.