Title of each class
|
Name of each exchange on which registered
|
Subordinate Voting Shares without par value
|
NASDAQ
|
Subordinate Voting Shares without par value
|
TSX
|
Large accelerated filer
o
|
Accelerated filer
x
|
Non-accelerated filer
o
|
U.S. GAAP
o
|
International Financial Reporting Standards as issued by the
x
International Accounting Standards Board
|
Other
o
|
Item 1. | Identity of Directors, Senior Management and Advisers |
Offer Statistics and Expected Timetable
|
Key Information
|
A. | Selected Financial Data |
Years ended August 31,
|
||||||||
2012
|
2011
|
|||||||
(in thousands of US dollars, except share and per share data)
|
||||||||
Consolidated Statements of Earnings Data:
|
||||||||
Sales
|
$ | 249,966 | $ | 269,743 | ||||
Cost of sales
(1, 2)
|
91,792 | 100,296 | ||||||
Selling and administrative
(2)
|
94,139 | 87,062 | ||||||
Net research and development
(2)
|
49,854 | 47,927 | ||||||
Depreciation of property, plant and equipment
|
6,169 | 6,655 | ||||||
Amortization of intangible assets
|
7,819 | 9,183 | ||||||
Changes in fair value of cash contingent consideration
|
(311 | ) | (2,685 | ) | ||||
Earnings from operations
|
504 | 21,305 | ||||||
Interest and other income
|
131 | 511 | ||||||
Foreign exchange loss
|
(657 | ) | (3,808 | ) | ||||
Earnings (loss) before income taxes
|
(22 | ) | 18,008 | |||||
Income taxes
|
3,571 | 8,814 | ||||||
Net earnings (loss) from continuing operations
|
(3,593 | ) | 9,194 | |||||
Net earnings from discontinued operations
|
‒
|
12,926 | ||||||
Net earnings (loss) for the year
|
$ | (3,593 | ) | $ | 22,120 | |||
Basic and diluted net earnings (loss) from continuing operations per share
|
$ | (0.06 | ) | $ | 0.15 | |||
Basic net earnings from discontinued operations per share
|
$ | ‒ | $ | 0.22 | ||||
Diluted net earnings from discontinued operations per share
|
$ | ‒ | $ | 0.21 | ||||
Basic net earnings (loss) per share
|
$ | (0.06 | ) | $ | 0.37 | |||
Diluted net earnings (loss) per share
|
$ | (0.06 | ) | $ | 0.36 | |||
Basic weighted average number of shares used in per share calculations (000’s)
|
60,453 | 60,000 | ||||||
Diluted weighted average number of shares used in per share calculations (000’s)
|
60,453 | 61,488 | ||||||
Other consolidated statements of earnings data:
|
||||||||
Gross research and development
|
$ | 59,282 | $ | 57,226 | ||||
Net research and development
|
$ | 49,854 | $ | 47,927 |
As at
August 31,
2012
|
As at
August 31,
2011
|
As at
September 1,
2010
|
||||||||||
(in thousands of US dollars)
|
||||||||||||
Consolidated Balance Sheets Data:
|
||||||||||||
Cash
|
$ | 58,868 | $ | 22,771 | $ | 21,440 | ||||||
Short-term investments
|
8,236 | 47,091 | 10,379 | |||||||||
Total assets
|
306,683 | 322,355 | 274,432 | |||||||||
Long-term debt (excluding current portion)
|
282 | 968 | 1,419 | |||||||||
Share capital
|
110,965 | 110,341 | 106,126 | |||||||||
Shareholders’ equity
|
$ | 253,281 | $ | 264,511 | $ | 218,689 |
(1)
|
The cost of sales is exclusive of depreciation and amortization, shown separately.
|
(2)
|
Include restructuring charges of $264,000 (nil in 2011) in cost of sales, $1,181,000 (nil in 2011) in selling and administrative expenses and $884,000 (nil in 2011) in net research and development expenses.
|
B. | Capitalization and Indebtedness |
C. | Reasons for the Offer and Use of Proceeds |
D. | Risk Factors |
|
●
|
Difficulty forecasting, budgeting and planning due to the uncertain spending plans of current or prospective customers;
|
|
●
|
Increased competition for fewer network projects and sales opportunities;
|
|
●
|
Increased pricing pressure that may adversely affect revenue and gross margin;
|
|
●
|
Higher cost structure compared to revenue level;
|
|
●
|
Increased risk of charges related to excess and obsolete inventories and the write off of other intangible assets and goodwill;
|
|
●
|
Customer financial difficulty and increased difficulty in collecting accounts receivable; and
|
|
●
|
Additional restructuring costs.
|
|
●
|
increased competition for business;
|
|
●
|
reduced demand;
|
|
●
|
limited number of potential customers;
|
|
●
|
competition from companies with lower production costs, including companies operating in lower-cost environments;
|
|
●
|
introduction of new products by competitors;
|
|
●
|
greater economies of scale for higher-volume competitors;
|
|
●
|
large customers, who buy in high volumes, can exert substantial negotiating leverage over us; and
|
|
●
|
resale of used equipment.
|
|
●
|
issue shares that would dilute individual shareholder percentage ownership;
|
|
●
|
incur debt;
|
|
●
|
assume liabilities and commitments;
|
|
●
|
incur significant expenses related to acquisition costs;
|
|
●
|
incur significant expenses related to amortization of additional intangible assets;
|
|
●
|
incur significant impairment losses of goodwill and intangible assets related to such acquisitions; and
|
|
●
|
ncur losses from operations.
|
|
●
|
the risk of not realizing the expected benefits or synergies from such acquisitions or alliances;
|
|
●
|
problems integrating the acquired operations, technologies, products and personnel;
|
|
●
|
risks associated with the transfer of acquired know-how and technology;
|
|
●
|
unanticipated costs or liabilities;
|
|
●
|
diversion of management’s attention from our core business;
|
|
●
|
adverse effects on existing business relationships with suppliers and customers;
|
|
●
|
risks associated with entering markets in which we have no or limited prior experience; and
|
|
●
|
potential loss of key employees, particularly those of acquired organizations.
|
|
●
|
challenges in staffing and managing foreign operations due to the limited number of qualified candidates, employment laws and business practices in foreign countries, any of which could increase the cost and reduce the efficiency of operating in foreign countries;
|
|
●
|
fluctuations among currencies;
|
|
●
|
our inability to comply with import/export, environmental and other trade compliance regulations of the countries in which we do business, together with unexpected changes in such regulations;
|
|
●
|
measures to ensure that we design, implement and maintain adequate controls over our financial processes and reporting in the future;
|
|
●
|
failure to adhere to laws, regulations and contractual obligations relating to customer contracts in various countries;
|
|
●
|
difficulties in establishing and enforcing our intellectual property rights;
|
|
●
|
inability to maintain a competitive list of distributors for indirect sales;
|
|
●
|
tariffs and other trade barriers;
|
|
●
|
economic instability in foreign markets;
|
|
●
|
wars, acts of terrorism and political unrest;
|
|
●
|
language and cultural barriers;
|
|
●
|
lack of integration of foreign operations;
|
|
●
|
potential foreign and domestic tax consequences;
|
|
●
|
technology standards that differ from those on which our products are based, which could require expensive redesign and retention of personnel familiar with those standards;
|
|
●
|
longer accounts receivable payment cycles and possible difficulties in collecting payments which may increase our operating costs and hurt our financial performance; and
|
|
●
|
failure to meet certification requirements.
|
|
●
|
difficulty in hiring and retaining appropriate engineering and manufacturing resources due to intense competition for such resources and resulting wage inflation;
|
|
●
|
exposure to misappropriation of intellectual property and proprietary information;
|
|
●
|
heightened exposure to changes in the economic, regulatory, security, and political conditions of these countries;
|
|
●
|
fluctuations in currency exchange rates and tax compliance in India and China;
|
|
●
|
cash management and repatriation of profit; and
|
|
●
|
high inflation rates which could increase our operating costs.
|
|
●
|
properly identify and anticipate customer needs;
|
|
●
|
innovate and develop new products;
|
|
●
|
gain timely market acceptance for new products;
|
|
●
|
manufacture and deliver our new products on time, in sufficient volume and with adequate quality;
|
|
●
|
price our products competitively;
|
|
●
|
continue investing in our research and development programs; and
|
|
●
|
anticipate competitors’ announcements of new products.
|
|
●
|
costly repairs;
|
|
●
|
product returns or recalls;
|
|
●
|
damage to our brand reputation;
|
|
●
|
loss of customers, failure to attract new customers or achieve market acceptance;
|
|
●
|
diversion of development and engineering resources;
|
|
●
|
legal actions by our customers, including claims for consequential damages and loss of profits; and
|
|
●
|
legal actions by governmental entities, including actions to impose product recalls and/or forfeitures.
|
|
●
|
length of the sales cycle for certain products, especially those that are higher priced and more complex;
|
|
●
|
sales cycle prolonged by lengthy customer acceptance;
|
|
●
|
timing of product launches and market acceptance of new products for us as well as our competitors;
|
|
●
|
our ability to sustain product volumes and high levels of quality across all product lines;
|
|
●
|
timing of shipments for large orders;
|
|
●
|
effect of seasonality on sales and bookings; and
|
|
●
|
losing key accounts and not successfully developing new ones.
|
|
●
|
fluctuating demand for telecommunications test and service assurance equipment;
|
|
●
|
changes in the capital spending and operating budgets of our customers, which may cause seasonal or other fluctuations in product mix, volume, timing and number of orders we receive from our customers;
|
|
●
|
order cancellations or rescheduled delivery dates;
|
|
●
|
pricing changes by our competitors or suppliers;
|
|
●
|
variations in the mix between higher and lower-margin products and service;
|
|
●
|
customer bankruptcies and difficulties in collecting accounts receivable;
|
|
●
|
restructuring and impairment charges;
|
|
●
|
foreign exchange rate fluctuations;
|
|
●
|
general economic conditions, including a slowdown or recession; and
|
|
●
|
distorted effective tax rate due to non-taxable/deductible elements and unrecognized deferred tax assets.
|
Business Overview
|
|
●
|
Increase our presence with wireless operators;
|
|
●
|
Enable network operators to reduce their operating expenses;
|
|
●
|
Expand our sales to existing Tier-1 network operators; and
|
|
●
|
Accelerate profitability through execution.
|
|
●
|
Performance monitoring and analysis;
|
|
●
|
Advanced data correlation and analysis engine;
|
|
●
|
VoIP service assurance;
|
|
●
|
IP/MPLS service assurance;
|
|
●
|
Mobile backhaul and metro Ethernet service assurance;
|
|
●
|
IP video service assurance;
|
|
●
|
Advanced analytics and reports; and
|
|
●
|
Custom solutions services.
|
|
●
|
BrixCall: Voice quality and performance management;
|
|
●
|
BrixNGN: IP/MPLS and carrier Ethernet (mobile backhaul and metro Ethernet) service quality monitoring;
|
|
●
|
BrixVision: Comprehensive IP video quality and performance management; and
|
|
●
|
BrixView: Advanced analytics and business intelligence software.
|
Wireless Test and Solutions
|
||
Product Type
|
Product Line
|
Typical Application
|
Protocol Analyzer
|
Hawk portfolio,
including M5 analysis tool
|
Protocol analysis to verify correct network behavior.
|
Network Simulator
|
EAST portfolio, Navtel portfolio
|
Regression and load testing.
|
Mobile Communications Intelligence Tools
|
NetHawk F10, NetHawk X6 and NetHawk C2
|
Intelligence tools for police, armed forces and other governmental organizations to fight organized crime and terrorists.
|
|
●
|
Market study and research feasibility;
|
|
●
|
Product definition;
|
|
●
|
Development feasibility;
|
|
●
|
Development;
|
|
●
|
Qualification; and
|
|
●
|
Transfer to production.
|
|
●
|
Customer Relationship Management (CRM) Administration –
Business Ownership of EXFO’s CRM toolset and evolution.
|
|
●
|
Sales Support –
Leverage the effectiveness of its sales force by providing pre-sales and demo support, as well as guiding customers in purchasing the correct equipment for their respective applications, issuing quotations, and promoting our extended warranty service and support program.
|
|
●
|
Order Management –
Accurately process customer orders from entry through fulfillment and delivery, and manage order changes.
|
|
●
|
Customer Service
–
Serve as a primary interface for inbound and outbound customer communication. Provide customers with one central point of contact and work with the customer from purchasing equipment to helping them arrange for service, if necessary.
|
|
●
|
Product Support –
Provide expert technical support and deliver product service worldwide. Directly manage EXFO’s Worldwide Service Centers, and the Service Partner Program. Where applicable, furnish installation and on-site servicing for more complex equipment and applications.
|
|
●
|
Systems Services –
Provide pre-sale, delivery, post-sale technical support, and systems actualization of EXFO’s network monitoring and converged service assurance systems.
|
|
●
|
Education Services –
Aggregate expertise, develop material, and deliver free and fee-based training.
|
|
●
|
Professional Services –
Provide value-added solution services for EXFO’s test and system customers.
|
|
●
|
Production.
From production planning to product shipment, our production department is responsible for manufacturing high-quality products on time. Factories are organized in work cells; each cell consists of specialized technicians and equipment and has full responsibility over a product family. Technicians are cross-trained and versatile enough, so that they can carry out specific functions in more than one cell. This allows shorter lead times by alleviating bottlenecks.
|
|
●
|
Product Engineering and Quality.
This department, which supports our production cells, acts like a gatekeeper to ensure the quality of our products and the effectiveness of our manufacturing processes. It is responsible for the transfer of products from research and development to manufacturing, product improvement, documentation, metrology, and the quality control and regulatory compliance process. Quality control represents a key element in our manufacturing operations. Quality is assured through product testing at numerous stages in the manufacturing process to ensure that our products meet stringent industry requirements and our customers’ performance requirements.
|
|
●
|
Supply-Chain Management.
This department is responsible for sales forecasting, raw material procurement, material-cost reduction and vendor performance management. Our products consist of optical, electronic and mechanical parts, which are purchased from suppliers around the world. Approximately one-third of our parts are manufactured to our specifications. Materials represent the largest portion of our cost of goods. Our performance is tightly linked to vendor performance, requiring greater emphasis on this critical aspect of our business.
|
|
●
|
product performance and reliability;
|
|
●
|
solution’s contribution to productivity;
|
|
●
|
price and quality of products;
|
|
●
|
level of technological innovation;
|
|
●
|
product lead times;
|
|
●
|
breadth of product offerings;
|
|
●
|
ease of use;
|
|
●
|
brand-name recognition;
|
|
●
|
customer service and technical support;
|
|
●
|
strength of sales and distribution relationships; and
|
|
●
|
financial stability.
|
|
●
|
a method and apparatus for characterizing optical power levels in three-wavelength, bidirectional fiber-to-the-home systems. This invention describes how the optical power can be measured at the two-downstream and one upstream wavelengths used to connect a residence or business customer, while maintaining the signal continuity necessary to keep the home-based Optical Network Terminal operating. This invention underlies the two-port version of our PPM-350 series of PON power meters;
|
|
●
|
a method for determining the optical signal-to-noise ratio employing an optical spectrum analyzer, which is particularly advantageous for use with tightly-filtered DWDM signals used in high-bandwidth optical networks. This invention is a key value-added option to our FTB-5240-S series of portable optical spectrum analyzers;
|
|
●
|
a method and apparatus to determine the theoretical and practical data rates for a cable under test. This invention forms the basis of the EXFO CableSHARK product, describing how two test devices, communicating with each other via the cable under test, can predict the performance of a pair of ADSL (Asymmetric Digital Subscriber Line) modems, and in case of problems, analyze the cause of the modems’ failure to synchronize;.
|
|
●
|
a method and system for hardware time stamping packetized data to provide sub-microsecond accuracy in test measurements, which is embedded in the Brix100M, Brix1000, and Brix2500 Series Verifiers;
|
|
●
|
a method for actively analyzing a data packet delivery path to provide diagnostics and root cause analysis of network delivery path issues, which is embedded in BrixCall, BrixNGN, and BrixVision applications of EXFO Service Assurance;
|
|
●
|
a distributed protocol analyzer for quality-of-service measurement. This invention underlies the combined QoS measurements offered in the NetHawk iPro and NetHawk M5 products; and
|
|
●
|
a communication methodology used to perform independent bi-directional protocol testing over a connection or connectionless network between two test instruments, wherein the transfer mechanism of status and intermediate test results during an active test and the transmission of the final results to one of the instruments enables the user to perform a bidirectional single-ended test. This invention is at the heart of the EXFO Datacom product families, including applications in conformity with our EtherSAM standard test suite.
|
Property, Plants and Equipment
|
Location
|
Use of Space
|
Square
Footage
|
% of
Utilization
|
Type of
Interest
|
436 Nolin Street
Quebec (Quebec)
G1M 1E7
|
Occupied for manufacturing of products
|
44,000
|
50%
|
Owned
|
400 Godin Avenue
Quebec (Quebec)
G1M 2K2
|
Occupied for research and development, customer services, manufacturing, management and administration
|
129,000
(1)
|
80%
|
Owned
|
2500 Alfred-Nobel
St-Laurent (Quebec)
H4S 2C3
|
Occupied for research and development, management and administration
|
75,000
|
50%
|
Owned
|
2500 Alfred-Nobel
St-Laurent (Quebec)
H4S 2C3
|
Available for rent
|
50,000
|
0%
|
Owned
|
160 Drumlin Circle
Concord (Ontario)
L4K 3E5
|
Occupied for research and development, product management and administration
|
23,500
|
40%
|
Owned
|
270 Billerica Road
Chelmsford, MA 01824
United States
|
Occupied for research and development, manufacturing, management and administration
|
29,000
|
65%
|
Leased
|
Location
|
Use of Space
|
Square
Footage
|
% of
Utilization
|
Type of
Interest
|
(1)
|
Including the warehouse space. Premises without the warehouse are approximately 115,000 square feet.
|
Item 4A
.
|
Unresolved Staff Comments
|
|
●
|
Increasing our wireless presence;
|
|
●
|
Enable network operators to reduce their operating expenses;
|
|
●
|
Expanding our share of wallet with Tier-1 network operators; and
|
|
●
|
Accelerating profitability through execution.
|
o
|
Increase sales by a CAGR* of at least 25%
|
o
|
Raise gross margin to 65%
|
o
|
Increase adjusted EBITDA** in dollars by a CAGR of at least 30%
|
*
|
Compound annual growth rate
|
**
|
EBITDA is defined as net earnings (loss) before interest, income taxes, depreciation of property, plant and equipment, amortization of intangible assets and impairment of goodwill. Adjusted EBITDA represents EBITDA excluding changes in the fair value of the cash contingent consideration and the gain from the disposal of discontinued operations.
|
Corporate Performance Objectives (Fiscal 2010-2012)
|
||||
Results After
|
||||
Objectives
|
Metrics
|
1 Year
|
2 Years
|
3 Years
|
Increase sales by a CAGR of at least:
|
25%
|
32.0%
|
25.4%
|
13.1%
|
Raise gross margin from 61.3% to:
|
65%
|
62.4%
|
62.7%
|
63.3%
|
Increase adjusted EBITDA
**
in dollars by a CAGR of at least:
|
30%
|
88.8%
|
45.4%
|
-2.2%
|
Consolidated statements of earnings data:
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
Sales
|
$ | 249,966 | $ | 269,743 | 100.0 | % | 100.0 | % | ||||||||
Cost of sales
(1)
|
91,792 | 100,296 | 36.7 | 37.2 | ||||||||||||
Selling and administrative
|
94,139 | 87,062 | 37.7 | 32.3 | ||||||||||||
Net research and development
|
49,854 | 47,927 | 19.9 | 17.7 | ||||||||||||
Depreciation of property, plant and equipment
|
6,169 | 6,655 | 2.5 | 2.5 | ||||||||||||
Amortization of intangible assets
|
7,819 | 9,183 | 3.1 | 3.4 | ||||||||||||
Changes in the fair value of cash contingent consideration
|
(311 | ) | (2,685 | ) | (0.1 | ) | (1.0 | ) | ||||||||
Earnings from operations
|
504 | 21,305 | 0.2 | 7.9 | ||||||||||||
Interest and other income
|
131 | 511 | 0.1 | 0.2 | ||||||||||||
Foreign exchange loss
|
(657 | ) | (3,808 | ) | (0.3 | ) | (1.4 | ) | ||||||||
Earnings (loss) before income taxes
|
(22 | ) | 18,008 | – | 6.7 | |||||||||||
Income taxes
|
3,571 | 8,814 | 1.4 | 3.3 | ||||||||||||
Net earnings (loss) from continuing operations
|
(3,593 | ) | 9,194 | (1.4 | )% | 3.4 | % | |||||||||
Net earnings from discontinued operations
|
– | 12,926 | ||||||||||||||
Net earnings (loss) for the year
|
$ | (3,593 | ) | $ | 22,120 | |||||||||||
Basic and diluted net earnings (loss) from continuing operations per share
|
$ | (0.06 | ) | $ | 0.15 | |||||||||||
Basic net earnings (loss) per share
|
$ | (0.06 | ) | $ | 0.37 | |||||||||||
Diluted net earnings (loss) per share
|
$ | (0.06 | ) | $ | 0.36 | |||||||||||
Other selected information:
|
||||||||||||||||
Gross margin
(2)
|
$ | 158,174 | $ | 169,447 | 63.3 | % | 62.8 | % | ||||||||
Research and development data:
|
||||||||||||||||
Gross research and development
|
$ | 59,282 | $ | 57,226 | 23.7 | % | 21.2 | % | ||||||||
Net research and development
|
$ | 49,854 | $ | 47,927 | 19.9 | % | 17.7 | % | ||||||||
Restructuring changes included in:
|
||||||||||||||||
Cost of sales
|
$ | 264 | $ | – | 0.1 | % | – | % | ||||||||
Selling and administrative expenses
|
$ | 1,181 | $ | – | 0.5 | % | – | % | ||||||||
Net research and development expenses
|
$ | 884 | $ | – | 0.4 | % | – | % | ||||||||
Adjusted EBITDA
(2)
|
$ | 13,524 | $ | 30,583 | 5.4 | % | 11.3 | % | ||||||||
Consolidated balance sheets data:
|
||||||||||||||||
Total assets
|
$ | 306,683 | $ | 322,355 |
(1)
|
The cost of sales is exclusive of depreciation and amortization, shown separately.
|
(2)
|
Refer to page 50 for non-IFRS measures.
|
Years ended
|
||||||||||||
August 31, 2012
|
August 31, 2011
|
Change in %
|
||||||||||
Physical-layer solutions
|
$ | 135,141 | $ | 158,002 | (14.5 | ) % | ||||||
Protocol-layer solutions
|
113,700 | 108,946 | 4.4 | |||||||||
Foreign exchange gains on forward exchange contracts
|
1,125 | 2,795 | (59.7 | ) | ||||||||
Total sales
|
$ | 249,966 | $ | 269,743 | (7.3 | ) % |
Expiry dates
|
Contractual
amounts
|
Weighted average contractual
forward rates
|
||||||
September 2012 to August 2013
|
$ | 23,000,000 | 1.0228 | |||||
September 2013 to August 2014
|
3,600,000 | 1.0439 | ||||||
Total
|
$ | 26,600,000 | 1.0256 |
(a)
|
Inventories
|
(b)
|
Income taxes
|
(c)
|
Impairment of non-financial assets
|
i)
|
Growth rates
|
ii)
|
Discount rate
|
NetHawk CGU
|
$ | 11,520,000 | ||
Brix CGU
|
17,640,000 | |||
Total
|
$ | 29,160,000 |
*
|
Gross margin represents sales less cost of sales, excluding depreciation and amortization.
|
**
|
EBITDA is defined as net earnings (loss) before interest, income taxes, depreciation of property, plant and equipment and amortization of intangible assets. Adjusted EBITDA represents EBITDA excluding changes in the fair value of the cash contingent consideration and the gain from the disposal of discontinued operations.
|
Year ended
August 31, 2012
|
Year ended
August 31, 2011
|
|||||||
IFRS net earnings (loss) for the year
|
$ | (3,593 | ) | $ | 22,120 | |||
Add (deduct):
|
||||||||
Depreciation of property, plant and equipment
|
||||||||
Continuing operations
|
6,169 | 6,655 | ||||||
Discontinued operations
|
– | 14 | ||||||
Amortization of intangible assets
|
||||||||
Continuing operations
|
7,819 | 9,183 | ||||||
Discontinued operations
|
– | 4 | ||||||
Interest and other income (continuing operations)
|
(131 | ) | (511 | ) | ||||
Income taxes
|
||||||||
Continuing operations
|
3,571 | 8,814 | ||||||
Discontinued operations
|
– | 201 | ||||||
EBITDA for the year
|
13,835 | 46,480 | ||||||
Changes in fair value of cash contingent consideration
|
(311 | ) | (2,685 | ) | ||||
Gain on disposal of discontinued operations
|
– | (13,212 | ) | |||||
Adjusted EBITDA for the year
|
$ | 13,524 | $ | 30,583 | ||||
EBITDA in percentage of total sales
|
5.5 | % | 17.1 | % | ||||
Adjusted EBITDA in percentage of total sales
|
5.4 | % | 11.3 | % |
Year ended
August 31, 2012
|
Year ended
August 31, 2011
|
|||||||
Sales from continued operations
|
$ | 249,966 | $ | 269,743 | ||||
Sales from discontinued operations
|
– | 1,991 | ||||||
Total sales
|
$ | 249,966 | $ | 271,734 |
Name and Municipality of Residence
|
Positions with EXFO
|
PIERRE-PAUL ALLARD
Pleasanton, California
|
Independent Director
|
|
JON BRADLEY
Worminghall, United Kingdom
|
Vice-President, Sales — EMEA
|
|
STEPHEN BULL
Quebec City, Quebec
|
Vice-President, Research and Development
|
|
DARRYL EDWARDS
Weston Under Wetherley, United Kingdom
|
Independent Director
|
|
ÉTIENNE GAGNON
Quebec City, Quebec
|
Vice-President, Test and Measurement Division
|
|
LUC GAGNON
St-Augustin-de-Desmaures, Quebec
|
Vice-President, Manufacturing Operations and Customer Service
|
|
GERMAIN LAMONDE
St-Augustin-de-Desmaures, Quebec
|
Chairman of the Board, President and Chief Executive Officer
|
|
PIERRE MARCOUILLER
Magog, Quebec
|
Independent Lead Director
|
|
GUY MARIER
Lakefield Gore, Quebec
|
Independent Director
|
|
CLAUDIO MAZZUCA
LaSalle, Quebec
|
Vice-President, Systems and Service Assurance Division
|
|
PIERRE PLAMONDON
Quebec City, Quebec
|
Vice-President, Finance and Chief Financial Officer
|
|
BENOIT RINGUETTE
Boischatel, Quebec
|
General Counsel and Corporate Secretary
|
|
SYLVAIN ROULEAU
Kirkland, Quebec
|
Vice-President, Human Capital
|
|
JOSEPH SOO
Singapore
|
Vice-President, Sales — Asia-Pacific
|
|
SUSAN SPRADLEY
Dallas, Texas
|
Independent Director
|
|
DANA YEARIAN
Lake Forest, Illinois
|
Vice-President, Sales — Americas
|
B. | Compensation |
|
●
|
Mr. Guy Marier (Chairman)
|
|
●
|
Mr. Pierre-Paul Allard
|
|
●
|
Mr. Darryl Edwards
|
|
●
|
Mr. Pierre Marcouiller
|
|
●
|
Ms. Susan Spradley
|
|
●
|
Mr. David A. Thompson (until January 12, 2012);
|
Meeting
|
Main activities of the Human Resources Committee
|
|
October 11, 2011
|
●
|
Review and approval of the Short-Term Incentive Plan for the financial year started September 1, 2011;
|
●
|
Review of the proposed salary scales and salary increases for the year started September 1, 2011;
|
|
●
|
Review and approval of the compensation plans of executive officers for the financial year started September 1, 2011 being the Base Salary, the Short-Term Incentive Plan and the stock-based compensation delivered through the Long-Term Incentive Plan;
|
|
●
|
Review and approval of the stock-based compensation plan for the sales force delivered through the Long-Term Incentive Plan for the financial year started September 1, 2011;
|
|
●
|
Review and approval of the quantum for the stock-based compensation plan for the performing employees delivered through the Long-Term Incentive Plan for the financial year started September 1, 2011;
|
|
●
|
Review and approval of the executive compensation section of the management proxy circular for the financial year ended August 31, 2011 during a Board of Directors meeting;
|
|
●
|
Review of the succession planning program;
|
|
●
|
Review of the Mobilization / Motivation Plan;
|
|
●
|
Review of a coaching program for the CEO;
|
|
●
|
Review and approval of the CEO objectives;
|
|
●
|
Review of the 2012 executive compensation disclosure obligations;
|
|
●
|
Review of the Management Improvement Performance Program.
|
|
January 11, 2012
|
●
|
Review of the quarterly payments under the Short-Term Incentive Plan
for the financial year started September 1, 2011 and being part of the Short-Term Incentive Plan;
|
●
|
Review and approval of the stock-based compensation plan for the performing employees delivered through the Long-Term Incentive Plan for the financial year started September 1, 2011;
|
|
●
|
Review and approval of the CEO objectives and compensation plan;
|
|
●
|
Review of the Mobilization / Motivation Plan;
|
|
●
|
Review of the Management Improvement Performance Program;
|
|
●
|
Review of the sales forces commissions plans;
|
|
●
|
Review of the succession planning program.
|
|
March 27, 2012
|
●
|
Review of the quarterly payments under the Short-Term Incentive Plan
for the financial year started September 1, 2011 and being part of the Short-Term Incentive Plan;
|
●
|
Review and approval of the stock-based compensation delivered through the Long-Term Incentive Plan;
|
|
●
|
Review of the sales compensation plans;
|
|
●
|
Review of the employee mobilization survey;
|
|
●
|
Review of the succession planning program.
|
|
June 28, 2012
|
●
|
Review of the quarterly payments under the Short-Term Incentive Plan for the financial year started September 1, 2011 and being part of the Short-Term Incentive Plan;
|
●
|
Confirmation of the members’ biographies;
|
|
●
|
Introduction to the Risk Assessment of Executive Compensation;
|
|
●
|
Status update on the employee mobilization survey;
|
|
●
|
Review of the Structure Realignment;
|
|
●
|
Review of the Restructuring Activities;
|
|
●
|
Review of the Management Framework Renewal;
|
|
●
|
Review of the sales forces commissions plans;
|
|
●
|
Determination by the Members of their respective DSU percentage of their Annual Retainer.
|
|
October 9, 2012
|
●
|
Review and approval of the Short-Term Incentive Plan for the financial year started September 1, 2012;
|
●
|
Review of the proposed salary scales and salary increases for the year started September 1, 2012;
|
|
●
|
Review and approval of the compensation plans of executive officers for the financial year started September 1, 2012 being the Base Salary, the Short-Term Incentive Plan and the stock-based compensation delivered through the Long-Term Incentive Plan;
|
|
●
|
Review and approval of the stock-based compensation plan for the sales force delivered through the Long-Term Incentive Plan for the financial year started September 1, 2012;
|
|
●
|
Review and approval of the quantum for the stock-based compensation plan for the performing employees delivered through the Long-Term Incentive Plan for the financial year started September 1, 2012;
|
|
●
|
Review and approval of the executive compensation section of the management proxy circular for the financial year ended August 31, 2012;
|
|
●
|
Review of the succession planning program;
|
|
●
|
Review of the Mobilization / Motivation Plan;
|
|
●
|
Review and approval of the CEO objectives and compensation plan;
|
|
●
|
Review of the Risk Assessment of Executive Compensation disclosure obligations.
|
Type of Fee
|
Financial 2011 Fees
|
Percentage of
Financial 2011 Fees
|
Financial 2012 Fees
|
Percentage of
Financial 2012 Fees
|
||||
Executive Compensation Related Fees
|
CA$7,035
|
43%
|
CA$1,780
|
3%
|
||||
All Other Fees
|
CA$9,245
|
57%
|
CA$57,314
|
97%
|
||||
Total
|
CA$16,280
|
100%
|
CA$59,094
|
100%
|
(1)
|
2009 Mercer Benchmark Database, which contains compensation data for selected Canadian companies with median annual revenues of CA$325 million. The following is a list of the main companies, with a particular emphasis on the high-technology/telecommunications and manufacturing-durable goods industries, servicing industries, revenue categories and geography, used for the purposes of setting 2010 compensation: Arcan Resources Ltd.; Linamar Corporation; Arsenal Energy Inc.; Livingston International; Baytex Energy Trust; Logistec Corporation; Canadian Hydro Developers Inc.; MacDonald, Dettwiler and Associates Corporation – Quebec; Canadian Pacific; Pason Systems Inc.; CE Franklin Ltd.; Precision Drilling Trust; Centerra Gold Inc.; RDM Corporation; Compton Petroleum Corporation; SNC-Lavalin; Computer Modelling Group Ltd.; Softchoice Corp.; Crew Energy Inc.; Stantec Inc.; Enerflex Systems Ltd.; Teck Resources Limited; Labopharm Inc.; TeraGo Networks Inc.; and Velan Inc. Mercer can only disclose the identities of the publicly-traded participating organizations due to confidentiality covenants with survey participants;
|
(2)
|
2009 US Mercer Benchmark Database (2,771 participants); and
|
(3)
|
2009 UK Mercer Benchmark Database (193 participants), which contains compensation data for companies in all industries of all sizes and scopes. Focuses on companies with revenues lower than CA$500 million.
|
|
●
|
Performance-based:
Executive compensation levels reflect both the results of the Corporation and individual results based on specific quantitative and qualitative objectives established at the beginning of each financial year in keeping with the Corporation’s long-term strategic objectives.
|
|
●
|
Aligned with shareholder interests:
An important portion of incentive compensation for executives is composed of equity awards to ensure that executives are aligned with the principles of sustained long-term shareholder value growth.
|
|
●
|
Market competitive:
Compensation of executives is designed to be externally competitive when compared against executives of comparable peer companies, and in consideration of the Corporation’s results
.
|
|
●
|
Individually equitable:
Compensation levels are also designed to reflect individual factors such as scope of responsibility, experience, and performance against individual measures.
|
Name & Position
|
Annual Incentive Target as % of base salary
|
|
Germain Lamonde, CEO
|
65.0%
|
|
Pierre Plamondon, CFO
|
37.5%
|
|
Stephen Bull, Vice-President, Research and Development
|
35.0%
|
|
Sylvain Rouleau, Vice-President, Human Capital
|
25.0%
|
(1)
|
Dana Yearian, Vice-President, Sales Americas
|
88.7%
|
(1)
|
Representing the percentage of the base salary actually received for the financial year ended August 31, 2012.
|
·
|
Short-Term Incentive Plan
|
Base Salary
|
X
|
Annual Incentive Target (%)
|
X
|
Business Performance Measures (%)
|
X
|
Individual Performance Measures (%)
|
(1)
|
For sales and EBITDA metrics, results will range from nil to 150% of the weight upon attainment of a minimum of 50% of the annual target and a maximum of 150% of the annual target.
|
(2)
|
For gross margin, quality and on-time delivery metrics, result will range from nil to 100% of the weight upon attainment of a minimum threshold of 57.7%, 0.7% and 87%, respectively, up to the annual target and from 100% to 150% from the annual target to the maximum threshold of 66.7%, 0.20% and 98%, respectively.
|
(3)
|
Calculated on a quarterly basis for each of the first three quarters (20% per quarter) and on annual basis at year-end (40%).
|
(4)
|
Quarterly targets and results are used for the quarterly calculations of the first three quarters mentioned above.
|
Germain Lamonde, CEO
|
||
Elements of Individual Performance Measures
|
Weight
(from 0% to 125%)
|
Result
(%)
|
Financial
|
||
Corporate revenues
|
From 0% to 30%
|
14.84
|
Corporate EBITDA
|
From 0% to 20%
|
0.00
|
Corporate gross margin
|
From 0% to 20%
|
17.38
|
Strategic
|
||
Corporate Structure
|
From 0% to 20%
|
15.00
|
Establishment and implementation of a three year Strategic Plan
|
From 0% to 15%
|
13.00
|
Increase market presence with wireless customers
|
From 0% to 10%
|
10.00
|
Establishment and implementation of development plans for key executives
|
From 0% to 10%
|
6.00
|
Total
|
76.22
|
Pierre Plamondon, CFO
|
|||
Elements of Individual Performance Measures
|
Weight
(from 0% to 125%)
|
Result
(%)
|
|
Profitability and cash management
|
Weight
|
From 0% to 30%
|
21.10
|
Adjusted EBITDA
|
30%
|
||
Controls on operating expenses
|
20%
|
||
Maximizing cash flows from operations
|
30%
|
||
Controls on the Corporation’s corporate G&A expenses
|
20%
|
||
Information Technology and Information Management
|
Weight
|
From 0% to 27.5%
|
24.00
|
Delivering management information for the Corporation’s business.
|
35%
|
||
Delivering Contribution Margin information
|
25%
|
||
Improving information technology security risk management
|
25%
|
||
Assuring efficient transition to IFRS
|
15%
|
||
Financial Integrity & Risk Management
|
Weight
|
From 0% to 25%
|
25.00
|
Maintaining the highest standard of integrity and compliance in the Corporation’s financial reporting
|
40%
|
||
Reporting and addressing pro-actively risks and issues of any sorts that might adversely affect the Corporation
|
35%
|
||
Attaining SOX-404 certification
|
25%
|
||
Strategic Contribution
|
Weight
|
From 0% to 22.5%
|
18.60
|
Delivering the Strategies and Objectives under the NEO’s responsibility as set forth in the Corporation’s strategic plan
|
50%
|
||
Contributing to the Corporation’s annual review of the strategic plan
|
50%
|
||
Contribution to Mergers & Acquisitions Activities
|
Weight
|
From 0% to 20%
|
17.00
|
Strategic contribution to the Mergers & Acquisitions process
|
50%
|
||
Establishment and implementation of adequate and efficient tools, systems and controls in all acquired targets
|
50%
|
||
Total
|
105.70
|
Base Salary
|
X
|
Annual Incentive Target (%)
|
X
|
Business Performance Measures (%)
|
·
|
The Sales Incentive Plan
|
Business Performance Measure
|
Revenue Target (US$)
|
Result (US$)
|
|
Bookings Commissions
(1)
|
80,000
|
72,159
|
|
Contribution Margin Commissions
(2)
|
80,000
|
59,194
|
|
Personal objective (Quarterly Bonus on Sales)
(3)
|
Q1 2,500
Q2 2,500
Q3 2,500
Q4 2,500
|
5,824
|
|
Products Lines Sales Bonus
(4)
|
10,000
|
5,293
|
|
Tier 1 Operators accelerator commissions
(5)
|
10,000
|
7,381
|
|
TOTAL
|
149,851
|
(1)
|
The compensation rate for the attainment of revenue targets for the territory of the Americas is equal to the Revenue Target of commission on the total bookings quotas defined at the beginning of the financial year. A lower commission rate is applied for less than 70% of the attainment of the bookings quotas. Another rate is applied from 70% to 100% of the attainment of the bookings quotas. An accelerator is applied after attaining 100% of the bookings quotas.
|
(2)
|
The commission rate for the attainment of the contribution margin targets for the territory of the Americas is equal to the revenue target of commission on the contribution margins objectives defined at the beginning of the financial year. Such commission rate is used for all margins up to 100% attainment of the objective and an accelerator is applied after 100% attainment of the objective.
|
(3)
|
The compensation for personal objectives is based on the quarterly achievement of the sales bookings within the territory of the Americas. A commission rate is applied from 50% to 100% of the attainment of the objective. An accelerator is applied after attaining 100% of the objective.
|
(4)
|
The compensation for products lines sales objectives is based on the achievement within such products lines of annual sales bookings for the territory of the Americas. A commission rate is applied for each products line from 50% to 100% of the attainment of such products lines objectives. An accelerator for each products line is applied after attaining 100% of the products lines objectives.
|
(5)
|
Annually the Corporation determines a list of Tier 1 Operators for the territory of the Americas for which the NEO will be specifically commissioned. A commission rate is applied from 0% to 100% of the attainment of the objective. An accelerator is applied after attaining 100% of the objective.
|
·
|
Long-Term Incentive
Plan
|
Name & Position
|
Grant Levels
(1)
(% of base salary)
|
|
Germain Lamonde, CEO
|
70%
|
|
Pierre Plamondon, CFO
|
40%
|
|
Stephen Bull, Vice-President, Research and Development
|
40%
|
|
Sylvain Rouleau, Vice-President, Human Capital
|
30%
|
(2)
|
Dana Yearian, Vice-President, Sales Americas
|
40%
|
(1)
|
Actual grant value may differ from the grant level guidelines as the stock price may vary between the time of the grant and its approval.
|
(2)
|
Representing the percentage of the base salary actually received for the financial year ended August 31, 2012.
|
Financial
year ended
|
Grant Date
|
RSUs
granted
(#)
|
Fair Value
at the Time
of Grant
(US$/RSU)
|
Vesting schedule
|
August 31, 2012
|
October 18, 2011
|
23,000
|
5.43
|
50% on each of the third and fourth anniversary dates of the grant.
|
January 17, 2012
|
8,321
|
6.61
|
||
January 18, 2012
|
122,000
|
6.47
|
||
January 23, 2012
|
7,576
|
6.55
|
||
April 3, 2012
|
2,571
|
7.06
|
||
October 18, 2011
|
163,651
|
5.43
|
100% on the fifth anniversary date of the grant subject to early vesting of up to 1/3 on the third anniversary date of the grant and up to 50% of the remaining units on the fourth anniversary date of the grant if performance objectives namely related to long-term growth of revenue and profitability, as determined by the Board of Directors of the Corporation are fully attained.
|
|
January 23, 2012
|
6,330
|
6.55
|
100% on the fifth anniversary date of the grant subject to early vesting of up to 1/3 on the third anniversary date of the grant and up to 50% of the remaining units on the fourth anniversary date of the grant if performance objectives namely related to long-term growth of revenue and profitability, as determined by the Board of Directors of the Corporation are fully attained.
|
|
April 3, 2012
|
1,429
|
7.06
|
100% on the fifth anniversary date of the grant subject to early vesting of up to 1/3 on the third anniversary date of the grant and up to 50% of the remaining units on the fourth anniversary date of the grant if performance objectives namely related to long-term growth of revenue and profitability, as determined by the Board of Directors of the Corporation are fully attained.
|
|
August 31, 2011
|
October 19, 2010
|
30,250
|
6.03
|
50% on each of the third and fourth anniversary dates of the grant.
|
January 19, 2011
|
119,900
|
9.32
|
||
April 7, 2011
|
7,297
|
8.28
|
||
April 18, 2011
|
8,226
|
8.64
|
||
October 19, 2010
|
56,361
|
6.03
|
100% on the fifth anniversary date of the grant subject to early vesting of up to 100% on the third or fourth anniversary date of the grant when performance objectives related to revenue, as determined by the Board of Directors of the Corporation, are fully attained.
|
|
October 19, 2010
|
128,348
|
6.03
|
100% on the fifth anniversary date of the grant subject to early vesting of up to 1/3 on the third anniversary date of the grant and up to 50% of the remaining units on the fourth anniversary date of the grant if performance objectives namely related to long-term growth of revenue and profitability, as determined by the Board of Directors of the Corporation, are fully attained.
|
|
August 31, 2010
|
October 20, 2009
|
36,500
|
3.74
|
50% on each of the third and fourth anniversary dates of the grant.
|
January 19, 2010
|
130,000
|
5.13
|
||
April 7, 2010
|
37,900
|
5.68
|
||
April 7, 2010
|
6,155
|
5.68
|
1/3 on the third, fourth and fifth anniversary dates of the grant.
|
|
July 7, 2010
|
3,759
|
5.32
|
||
October 20, 2009
|
174,686
|
3.74
|
100% on the fifth anniversary date of the grant subject to early vesting of up to 1/3 on the third anniversary date of the grant and up to 50% of the remaining units on the fourth anniversary date of the grant if performance objectives namely related to long-term growth of revenue and profitability, as determined by the Board of Directors of the Corporation, are fully attained.
|
|
April 7, 2010
|
7,575
|
5.68
|
||
July 7, 2010
|
18,963
|
5.32
|
||
August 31, 2009
|
October 22, 2008
|
71,003
|
2.36
|
50% on each of the third and fourth anniversary dates of the grant.
|
January 20, 2009
|
243,700
|
3.22
|
||
April 7, 2009
|
11,000
|
3.52
|
||
July 8, 2009
|
3,000
|
2.99
|
100% after 3 years of the grant date.
|
|
January 20, 2009
|
5,000
|
3.22
|
1/3 on the third, fourth and fifth anniversary dates of the grant.
|
|
October 22, 2008
|
216,685
|
2.36
|
100% on the fifth anniversary date of the grant subject to early vesting of up to 1/3 on the third anniversary date of the grant and up to 50% of the remaining units on the fourth anniversary date of the grant if performance objectives namely related to long-term growth of revenue and profitability, as determined by the Board of Directors of the Corporation, are fully attained.
|
|
October 22, 2008
|
135,584
|
2.36
|
100% after 3 years of the grant date if performance is achieved (long-term growth of revenue and profitability). Otherwise 100% vested after 5 years of the grant date.
|
Financial
year ended
|
Grant Date
|
RSU
granted
(#)
|
Fair Value
at the Time
of Grant
(US$/RSU)
|
Vesting schedule
|
August 31, 2008
|
October 23, 2007
|
29,000
|
6.28
|
50% on each of the third and fourth anniversary dates of the grant.
|
January 15, 2008
|
76,200
|
4.16
|
||
April 8, 2008
|
21,600
|
6.09
|
||
April 22, 2008
|
185,570
|
5.82
|
||
July 7, 2008
|
71,310
|
4.39
|
||
October 23, 2007
|
86,167
|
6.28
|
100% on the fifth anniversary date of the grant subject to early vesting of up to 1/3 on the third anniversary date of the grant and up to 50% of the remaining units on the fourth anniversary date of the grant if performance objectives namely related to long-term growth of revenue and profitability, as determined by the Board of Directors of the Corporation, are fully attained.
|
·
|
Restricted Share Unit Grants in Last Financial Year
|
Name
|
RSUs
granted (#)
|
Percentage of Total RSUs Granted to Employees in
Financial Year (%)
(1)
|
Fair Value at
the Time of
Grant
(US$/RSU)
(2)
|
Grant Date
|
Vesting schedule
(3)
|
Germain Lamonde
|
53,261
|
15.90%
|
5.43
|
October 18, 2011
|
100% on the fifth anniversary date of the grant subject to early vesting up to 1/3 on the third anniversary date of the grant and up to 50% of the remaining units on the fourth anniversary date of the grant if performance objectives namely related to long-term growth of revenue and profitability, as determined by the Board of Directors of the Corporation are fully attained.
(4)
|
Pierre Plamondon
|
17,325
|
5.17%
|
5.43
|
October 18, 2011
|
100% on the fifth anniversary date of the grant subject to early vesting up to 1/3 on the third anniversary date of the grant and up to 50% of the remaining units on the fourth anniversary date of the grant if performance objectives namely related to long-term growth of revenue and profitability, as determined by the Board of Directors of the Corporation are fully attained.
(4)
|
Stephen Bull
|
15,490
|
4.63%
|
5.43
|
October 18, 2011
|
100% on the fifth anniversary date of the grant subject to early vesting up to 1/3 on the third anniversary date of the grant and up to 50% of the remaining units on the fourth anniversary date of the grant if performance objectives namely related to long-term growth of revenue and profitability, as determined by the Board of Directors of the Corporation are fully attained.
(4)
|
Sylvain Rouleau
|
7,576
|
2.26%
|
6.55
|
January 23, 2012
|
50% after 3 and 4 years of the grant date.
|
6,330
|
1.89%
|
6.55
|
January 23, 2012
|
100% on the fifth anniversary date of the grant subject to early vesting up to 1/3 on the third anniversary date of the grant and up to 50% of the remaining units on the fourth anniversary date of the grant if performance objectives namely related to long-term growth of revenue and profitability, as determined by the Board of Directors of the Corporation are fully attained.
(4)
|
|
Dana Yearian
|
15,322
|
4.58%
|
5.43
|
October 18, 2011
|
100% on the fifth anniversary date of the grant subject to early vesting up to 1/3 on the third anniversary date of the grant and up to 50% of the remaining units on the fourth anniversary date of the grant if performance objectives namely related to long-term growth of revenue and profitability, as determined by the Board of Directors of the Corporation are fully attained.
(4)
|
(1)
|
Such percentage does not include any cancelled RSUs.
|
(2)
|
The fair value at the time of grant of a RSU is equal to the market value of Subordinate Voting Shares at the time RSUs are granted. The grant date market value is equal to the highest of the closing prices of the Subordinate Voting Shares on the Toronto Stock Exchange and the NASDAQ National Market on the last trading day preceding the grant date, using the noon buying rate of the Bank of Canada on the grant date to convert the Toronto Stock Exchange closing price to United States dollars.
|
(3)
|
All RSUs first vesting cannot be earlier than the third anniversary date of their grant.
|
(4)
|
Those RSUs granted in the financial year ended August 31, 2012 vest on the fifth anniversary date of the grant but are subject to early vesting on the third and fourth anniversary date of the grant on the attainment of performance objectives, as determined by the Board of Directors of the Corporation. Accordingly, subject to the attainment of performance objectives, the first early vesting is up to 1/3 of the units on the third anniversary date of the grant and the second early vesting is up to 50% of the remaining units on the fourth anniversary date of the grant. The early vesting shall be subject to the attainment of performance objectives. Such performance objectives are based on the attainment of a sales growth metric combined with profitability metric. The sales growth metric is determined by the Compound Annual Growth Rate of sales of the Corporation for the period (SALES CAGR). The profitability metric is determined as the Cumulative Corporation’s IFRS net earnings before interest, income taxes, depreciation of property, plant and equipment, amortization of intangible assets, foreign exchange gain or loss, change in fair value of cash contingent consideration, and extraordinary gain or loss over the Cumulative Sales for the same period (LTIP EBITDA). Accordingly, the first early vesting performance objectives will be attained, calculated on a pro-rated basis as follows: i) 100% for a SALES CAGR of 20% or more and 0% for a SALES CAGR of 5% or less for the three-year period ending on August 31, 2014, cumulated with ii) 100% for a LTIP EBITDA of 15% and 0% for a LTIP EBITDA of 7.5% or less for the three-year period ending on August 31, 2014. The second early vesting performance objectives will be attained on the same premises as described above but for the four-year period ending on August 31, 2015.
|
Number of
RSUs (#)
|
% of Issued and
Outstanding RSUs
|
Weighted Average Fair Value at the Time of Grant ($US/RSU)
|
||||
President and CEO (one individual)
|
228,920
|
17.11
|
%
|
4.54
|
||
Board of Directors (five individuals)
(1)
|
–
|
–
|
–
|
|||
Management and Corporate Officers (ten individuals)
|
532,473
|
39.80
|
%
|
4.29
|
(1)
|
Six individuals from September 1, 2011 until January 12, 2012.
|
Number of
Options (#)
|
% of Issued and
Outstanding Options
|
Weighted Average Exercise
Price ($US/Security)
|
|
President and CEO (one individual)
|
29,160
|
11.93%
|
4.61
|
Board of Directors (one individual)
|
12,500
|
5.12%
|
4.65
|
Management and Corporate Officers (two individuals)
|
14,494
|
5.93%
|
4.98
|
·
|
Deferred Share Unit Plan
|
·
|
Deferred Share Unit Grants in Last Financial Year
|
DSUs #
|
Weighted Average Fair Value
at the Time of Grant (US$/DSU)
|
Total of the Fair Value
at the Time of Grant (US$)
|
Vesting
|
22,792
|
5.86
|
133,561
|
At the time director ceases to be a member of the Board of Directors of the Corporation
|
Number of
DSUs (#)
|
% of Issued and
Outstanding DSUs
|
Total of the Fair Value
at
the Time of Grant (US$)
|
Weighted Average Fair Value
at the Time of Grant (US$/DSU)
|
|
Board of Directors (five individuals)
|
133,090
|
100%
|
678,956
|
5.10
|
·
|
Number of Subordinate Voting Shares Reserved for Future Issuance
|
·
|
Stock Appreciation Rights Plan
|
Number of SARs exercised
|
Aggregate Value Realized (US$)
(1)
|
‒
|
‒
|
(1)
|
The aggregate value realized is equivalent to the market value of the securities underlying the SARs at exercise. This value, as the case may be, has been converted from Canadian dollars to U.S. dollars based on the noon buying rate of the Bank of Canada on the day of exercise.
|
(1)
|
The vesting schedules are provided in the table under the heading “Long-Term Incentive Plan”.
|
Compensation Elements
|
2012
|
2011
|
2010
|
3-Year Total
|
||||
Cash
|
||||||||
Base Salary
|
CA$441,000
|
CA$420,000
|
CA$400,000
|
CA$1,261,000
|
||||
Short-term incentive
|
CA$143,784
|
CA$216,626
|
CA$257,127
|
CA$617,537
|
||||
Equity
|
||||||||
Long-term incentive
|
CA$294,001
|
(1)
|
CA$280,003
|
(1)
|
CA$259,698
|
(1)
|
CA$833,702
|
(1)
|
Total Direct Compensation
|
CA$878,785
|
CA$916,629
|
CA$916,825
|
CA$2,712,239
|
||||
Pension Value
|
–
|
–
|
–
|
–
|
||||
All Other Compensation
|
–
|
–
|
–
|
–
|
||||
Total Compensation
|
CA$878,785
|
CA$916,629
|
CA$916,825
|
CA$2,712,239
|
||||
Annual Average
|
–
|
–
|
–
|
CA$940,080
|
||||
Total Market Capitalization Growth (CA$ millions)
|
(105.6)
|
(2)
|
40.8
|
(2)
|
156.2
|
(2)
|
91.4
|
(2)
|
Total Cost as a % of Market Capitalization Growth
|
(0.8)%
|
2.2%
|
0.6%
|
3.0%
|
(1)
|
Indicates the dollar amount based on the grant date fair value of the RSUs awarded under the LTIP for the financial year. The grant date fair value is equal to the highest of the closing prices of the Subordinate Voting Shares on the Toronto Stock Exchange and the NASDAQ National Market on the last trading day preceding the grant date, using the noon buying rate of the Bank of Canada on the grant date to convert the NASDAQ National Market closing price to Canadian dollars. Grants of RSUs to NEOs are detailed under section “Compensation Discussion & Analysis – Long-Term Incentive Plan”.
|
(2)
|
Includes the redemption of 3,600, nil and 438,894 Subordinate Voting Shares respectively in fiscal 2010, 2011 and 2012 under the normal course issuer bid and substantial issuer bid of the Corporation during these years.
|
Name and
Principal Position
|
Financial
Year
|
Salary
(1) (2)
($)
|
Share-Based
Awards
(2)
(3)
($)
|
Option-based
Awards
($)
|
Non-equity incentive
plan compensation ($)
|
Pension
value ($)
|
All other
compensation
($)
(2) (5)
|
Total
Compensation
($)
|
|
Annual
Incentive
plans
(2) (4)
|
Long-term
Incentive
plans
|
||||||||
Germain Lamonde,
President and Chief
Executive Officer
|
2012
|
436,893
(US)
441,000
(CA)
|
291,263
(US)
294,001
(CA)
|
–
|
142,446
(US)
143,784
(CA)
|
–
|
–
|
–
|
870,602
(US)
878,785
(CA)
|
2011
|
424,500
(US)
420,000
(CA)
|
283,003
(US)
280,003
(CA)
|
–
|
218,947
(US)
216,626
(CA)
|
–
|
–
|
–
|
926,450
(US)
916,629
(CA)
|
|
2010
|
382,922
(US)
400,000
(CA)
|
248,610
(US)
259,698
(CA)
|
–
|
246,149
(US)
257,127
(CA)
|
–
|
–
|
–
|
877,681
(US)
916,825
(CA)
|
|
Pierre Plamondon,
Vice-President,
Finance and
Chief Financial
Officer
|
2012
|
245,149
(US)
247,453
(CA)
|
94,743
(US)
95,634
(CA)
|
–
|
63,948
(US)
64,549
(CA)
|
–
|
–
|
9,431
(US)
9,519
(CA)
|
413,271
(US)
417,155
(CA)
|
2011
|
241,646
(US)
239,085
(CA)
|
137,305
(US)
135,850
(CA)
|
–
|
76,569
(US)
75,757
(CA)
|
–
|
–
|
8,747
(US)
8,654
(CA)
|
464,267
(US)
459,346
(CA)
|
|
2010
|
221,137
(US)
231,000
(CA)
|
63,182
(US)
66,000
(CA)
|
–
|
92,060
(US)
96,166
(CA)
|
–
|
–
|
5,777
(US)
6,035
(CA)
|
382,156
(US)
399,202
(CA)
|
|
Stephen Bull,
Vice-President,
Research and
Development
|
2012
|
218,129
(US)
220,180
(CA)
|
84,709
(US)
85,505
(CA)
|
–
|
42,249
(US)
42,646
(CA)
|
–
|
–
|
7,982
(US)
8,057
(CA)
|
353,069
(US)
356,388
(CA)
|
2011
|
216,057
(US)
213,767
(CA)
|
90,323
(US)
93,020
(CA)
|
–
|
65,266
(US)
64,574
(CA)
|
–
|
–
|
12,819
(US)
12,683
(CA)
|
384,465
(US)
384,044
(CA)
|
|
2010
|
186,037
(US)
194,334
(CA)
|
52,900
(US)
55,260
(CA)
|
–
|
66,741
(US)
69,718
(CA)
|
–
|
–
|
4,741
(US)
4,952
(CA)
|
310,419
(US)
324,264
(CA)
|
|
Sylvain Rouleau,
Vice-President,
Human Capital
|
2012
|
135,838
(US) (6)
137,115
(CA)
|
90,925
(US)
91,780
(CA)
|
–
|
22,894
(US)
23,109
(CA)
|
–
|
–
|
4,338
(US)
4,379
(CA)
|
253,995
(US)
256,383
(CA)
|
Dana Yearian,
Vice-President,
Sales — Americas
|
2012
|
214,240
(US)
216,254
(CA)
|
83,198
(US)
83,980
(CA)
|
–
|
149,851
(US)
151,260
(CA)
|
–
|
–
|
7,293
(US)
7,361
(CA)
|
454,582
(US)
458,855
(CA)
|
2011
|
208,000
(US)
205,795
(CA)
|
123,410
(US)
122,102
(CA)
|
–
|
217,246
(US)
214,944
(CA)
|
–
|
–
|
7,350
(US)
7,272
(CA)
|
556,006
(US)
550,113
(CA)
|
|
2010
|
200,000
(US)
208,920
(CA)
|
57,001
(US)
59,544
(CA)
|
–
|
170,297
(US)
177,892
(CA)
|
–
|
–
|
8,502
(US)
8,881
(CA)
|
435,801
(US)
455,237
(CA)
|
(1)
|
Base salary earned in the financial year, regardless when paid.
|
(2)
|
The compensation information for Canadian residents has been converted from Canadian dollars to US dollars based upon an average foreign exchange rate of CA$1.0094 = US$1.00 for the financial year ended August 31, 2012, CA$0.9894 = US$1.00 for the financial year ended August 31, 2011 and CA$1.0446 = US$1.00 for the financial year ended August 31, 2010.
|
(3)
|
Indicates the dollar amount based on the grant date fair value of the RSUs awarded under the LTIP for the financial year. The grant date fair value is equal to the highest of the closing prices of the Subordinate Voting Shares on the Toronto Stock Exchange and the NASDAQ National Market on the last trading day preceding the grant date, using the noon buying rate of the Bank of Canada on the grant date to convert the NASDAQ National Market closing price to Canadian dollars. Grants of RSUs to NEOs are detailed under section “Compensation Discussion & Analysis – Long-Term Incentive Plan”.
|
(4)
|
Indicates the total bonus earned during the financial year whether paid during the financial year or payable on a later date:
|
Name
|
Paid during the
financial year ended
August 31, 2012
(i)
($)
|
Paid in the first quarter
of the financial year
ending on August 31, 2013
(i)
($)
|
Total bonus earned during
the financial year
ended August 31, 2012
(i)
($)
|
||||
Germain Lamonde
|
112,297
113,352
|
(US)
(CA)
|
30,149
30,432
|
(US)
(CA)
|
142,446
143,784
|
(US)
(CA)
|
|
Pierre Plamondon
|
36,353
36,694
|
(US)
(CA)
|
27,595
27,855
|
(US)
(CA)
|
63,948
64,549
|
(US)
(CA)
|
|
Stephen Bull
|
30,190
30,474
|
(US)
(CA)
|
12,059
12,172
|
(US)
(CA)
|
42,249
42,646
|
(US)
(CA)
|
|
Sylvain Rouleau
|
8,777
8,860
|
(US)
(CA)
|
14,117
14,249
|
(US)
(CA)
|
22,894
23,109
|
(US)
(CA)
|
|
Dana Yearian
|
123,923
125,088
|
(US)
(CA)
|
25,928
26,172
|
(US)
(CA)
|
149,851
151,260
|
(US)
(CA)
|
(i)
|
Refer to note 2 above.
|
(5)
|
Indicates the amount contributed by the Corporation during the financial year to the Deferred Profit-Sharing Plan as detailed under section “Compensation Discussion & Analysis – Deferred Profit-Sharing Plan”, 401K Plan as detailed under section “Compensation Discussion & Analysis – 401K Plan”, as applicable, for the benefit of the NEOs. Mr. Lamonde is not eligible to participate in the Deferred Profit Sharing Plan.
|
(6)
|
This amount represents the salary paid to Mr. Sylvain Rouleau from January 23, 2012 until August 31, 2012 which is based on an annual salary amounted to US$227,858 (CA$230,000) for the financial year ended August 31, 2012.
|
Name
|
Outstanding Option-based Awards (Options)
|
Outstanding Share-based Awards (RSUs)
|
|||||
Number of securities
underlying
unexercised options
(#)
|
Option
Exercise
Price
(1)
|
Option
expiration
date
|
Value
(2)
of
unexercised
in-the-money
options
(3)
|
Number of
shares
or units of
shares
that have not
vested (#)
|
Market or
payout
value of share-based
awards that
have not vested
(US$)
(4)
|
Market or
payout value of
vested share-based awards
not paid out or
distributed
(US$)
|
|
Germain Lamonde
|
17,942
|
4.51
(US)
5.60
(CA)
|
Feb. 1, 2015
|
–
–
|
228,920
|
1,103,394
|
–
|
11,218
|
4.76
(US)
5.50
(CA)
|
Dec. 6, 2015
|
–
–
|
||||
Pierre Plamondon
|
5,383
|
5.13
(US)
6.28
(CA)
|
Oct. 26, 2014
|
–
–
|
96,854
|
466,836
|
–
|
3,653
|
4.76
(US)
5.50
(CA)
|
Dec. 6, 2015
|
–
–
|
||||
Stephen Bull
|
–
|
–
|
–
|
–
|
75,101
|
361,987
|
–
|
Sylvain Rouleau
|
–
|
–
|
–
|
–
|
13,906
|
67,027
|
–
|
Dana Yearian
|
–
|
–
|
–
|
–
|
97,002
|
467,550
|
–
|
(1)
|
These options were granted in Canadian dollars. The exercise price was calculated by using the highest of the closing prices of the Subordinate Voting Shares on the Toronto Stock Exchange and on the NASDAQ National Market on the business day preceding the grant date using the noon buying rate of the Bank of Canada to convert the Toronto Stock Exchange closing price to United States dollars on the grant date.
|
(2)
|
The unexercised options have not been and may never be exercised and actual gains if any, on exercise will depend on the value of the Subordinate Voting Shares on the date of exercise. There can be no assurance that these options will be exercised or any gain realized.
|
(3)
|
Indicates an aggregate value of “in-the-money” unexercised options held at the financial year ended August 31, 2012. “In-the-money” options are options for which the market value of the underlying securities is higher than the exercise price. The value of unexercised in-the-money options at financial year end is the difference between its exercise or base price and the market value of the underlying Subordinate Voting Share at August 31, 2012, which was US$4.82 (CA$4.75). The market value of the Subordinate Voting Shares was calculated by using the highest of the closing prices of the Subordinate Voting Shares on the Toronto Stock Exchange and on the NASDAQ National Market on August 31, 2012 using the noon buying rate of the Bank of Canada to convert the NASDAQ National Market closing price to Canadian dollars as required. For a Canadian resident, the value of unexercised in-the-money options is calculated using the option exercise price and the market value of the subordinate voting shares on the TSX in Canadian dollars.
|
(4)
|
The value of unvested RSUs at the financial year-end is the market value of the Subordinate Voting Shares on August 31, 2012, which was US$4.82 (CA$4.75). The market value of the Subordinate Voting Shares was calculated by using the highest of the closing prices of the Subordinate Voting Shares on the Toronto Stock Exchange and on the NASDAQ National Market on August 31, 2012 using the noon buying rate of the Bank of Canada to convert the NASDAQ National Market closing price to Canadian dollars as required. The actual gains on vesting will depend on the value of the Subordinate Voting Shares on the date of vesting. There can be no assurance that these values will be realized.
|
Name
|
Exercised Option-based Awards (Options)
|
||||||
Number of securities underlying exercised options (#)
|
Option Exercise Price (US$)
|
Option grant date
|
Gains realized (US$)
|
||||
Germain Lamonde
|
50,000
|
1.58
|
(1)
|
September 25, 2002
|
118,376
|
(2)
|
|
Pierre Plamondon
|
–
|
–
|
–
|
– | |||
Stephen Bull
|
–
|
–
|
–
|
– | |||
Sylvain Rouleau
|
–
|
–
|
–
|
– | |||
Dana Yearian
|
–
|
–
|
–
|
– |
(1)
|
These options were granted in Canadian dollars. The exercise price was calculated by using the highest of the closing prices of the Subordinate Voting Shares on the Toronto Stock Exchange and on the NASDAQ National Market on the business day preceding the grant date using the noon buying rate of the Bank of Canada to convert the Toronto Stock Exchange closing price to United States dollars on the grant date.
|
(2)
|
The gain realized is the difference between the market value of the underlying Subordinate Voting Shares at the time of the exercise and the exercise or base price of the option. The market value of the Subordinate Voting Shares at the time of exercise was converted from Canadian dollars to United States dollars based upon the noon buying rate of the Bank of Canada on the exercise date.
|
Name
|
Share-based awards – value
vested during the year (US$)
(1)
|
Non-equity incentive plan compensation –
Value earned during the year (US$)
(2)
|
||
Germain Lamonde
|
262,593
|
142,446
|
||
Pierre Plamondon
|
92,083
|
63,948
|
||
Stephen Bull
|
83,290
|
42,249
|
||
Sylvain Rouleau
|
‒
|
22,894
|
||
Dana Yearian
|
78,445
|
149,851
|
(1)
|
The aggregate dollar value realized is equivalent to the market value of the Subordinate Voting Shares underlying the RSUs at vesting. This value, as the case may be, has been converted from Canadian dollars to US dollars based upon the noon buying rate of the Bank of Canada on the day of vesting.
|
(2)
|
Includes total non-equity incentive plan compensation earned by each NEO in respect to the financial year ended on August 31, 2012 (as indicated under the “Summary Compensation Table”).
|
Named Executive Officer
|
Termination Payment Event
|
|||||
Without Cause ($)
(1) (2)
|
Change of Control ($)
(2) (3) (4)
|
Voluntary ($)
|
||||
Germain Lamonde
|
2,415,074
2,402,622
|
(US) (5)
(CA)
|
2,415,074
2,402,622
|
(US)
(CA)
|
1,103,394
1,087,370
|
(US) (6)
(CA)
|
Pierre Plamondon
|
508,181
506,665
|
(US)
(CA)
|
949,412
944,872
|
(US)
(CA)
|
–
|
|
Stephen Bull
|
415,302
414,488
|
(US)
(CA)
|
787,080
783,861
|
(US)
(CA)
|
–
|
|
Sylvain Rouleau
|
124,061
124,985
|
(US)
(CA)
|
180,956
181,054
|
(US)
(CA)
|
–
|
|
Dana Yearian
|
481,591
479,722
|
(US)
(CA)
|
1,114,779
1,107,557
|
(US)
(CA)
|
–
|
(1)
|
The aggregate amount disclosed includes an evaluation of the amount that the NEO would have been entitled to should a termination of employment without cause have occurred on August 31, 2012 and includes, as the case may be for each NEO, the base salary that would have been received and total value of RSUs and options that would have vested (with the exception of Mr. Lamonde’s evaluation which is described in note 6 below and includes: the base salary, STIP compensation, and total value of RSUs and options that would have vested). The amount for base salary compensation is calculated according to those amounts provided under the section entitled “Summary Compensation Table” included in this Annual Report. The amount for the total value attached to the vesting of RSUs and options determined pursuant to the LTIP as described in the section entitled “Long-Term Incentive Compensation – Long-Term Incentive Plan”
for termination without cause.
|
(2)
|
The aggregate amount for Canadian residents has been converted from Canadian dollars to US dollars based upon an average foreign exchange rate of CA$1.0094 = US$1.00 for the financial year ended August 31, 2012.
|
(3)
|
“Change of Control” is defined as a merger or an acquisition by a third party of substantially all of the Corporation’s assets or of the majority of its share capital.
|
(4)
|
The aggregate amount disclosed includes, as the case may be for each NEO, an evaluation of the amount that the NEO would have been entitled to should a termination of employment for Change of Control have occurred on August 31, 2012 and includes, as the case may be, namely, the base salary, STIP or SIP compensation and total value of RSUs and options that would have vested. The amount for base salary and STIP or SIP compensation are calculated according to those amounts provided under the section entitled “Summary Compensation Table” included in this Annual Report, the total value attached to the vesting of RSUs and options is calculated according to those amounts provided in the columns named “Value of unexercised in-the-money options” and “Market or payout value of share-based awards that have not vested” of the table included under the heading entitled “Outstanding share-based awards and option-based awards”.
|
(5)
|
The aggregate amount disclosed includes an evaluation of the amount that Mr. Lamonde would have been entitled to should a termination of employment without cause have occurred on August 31, 2012 and includes: the base salary, STIP compensation, and total value of RSUs and options that would have vested. The amount for base salary and STIP compensation are calculated according to those amounts provided under the section entitled “Summary Compensation Table” included in this Annual Report; the total value attached to the vesting of RSUs and options are calculated according to those amounts provided in the columns named “Value of unexercised in-the-money options” and “Market or payout value of share-based awards that have not vested” of the table included under the heading entitled – “Outstanding share-based awards and option-based awards”.
|
(6)
|
The aggregate amount disclosed includes an evaluation of the amount that Mr. Lamonde would have been entitled to should a voluntary termination of employment have occurred on August 31, 2012 and includes: the total value of RSUs and options that would have vested. The amount for the total value attached to the vesting of RSUs and options are calculated according to those amounts provided in the columns named “Value of unexercised in-the-money options” and “Market or payout value of share-based awards that have not vested” of the table included under the heading entitled “Outstanding share-based awards and option-based awards”.
|
Annual Retainer for Directors
(1)
|
CA$50,000
|
(2)
|
US$49,534
|
(3)
|
Annual Retainer for Lead Director
|
CA$5,000
|
US$4,953
|
(3)
|
|
Annual Retainer for Committee Chairman
|
CA$5,000
|
US$4,953
|
(3)
|
|
Annual Retainer for Committee Members
|
CA$3,000
|
US$2,972
|
(3)
|
|
Fees for all Meetings Attended per day in Person
|
CA$1,000
|
US$991
|
(3)
|
|
Fees for all Meetings Attended per day by Telephone
|
CA$500
|
US$495
|
(3)
|
(1)
|
All the Directors elected to receive 50% of their Annual Retainer in form of DSUs.
|
(2)
|
The Annual Retainer for Mr. Pierre-Paul Allard, Ms. Susan Spradley and Mr. David A. Thompson is US$50,000 (CA$50,470).
|
(3)
|
The compensation information has been converted from Canadian dollars to US dollars based upon an average foreign exchange rate of CA$1.0094 = US$1.00 for the financial year ended August 31, 2012.
|
Name
|
Fees earned
(1)
($)
|
Share-based
Awards
($)
|
Option-
based
awards
($)
|
Non-equity
incentive plan
compensation ($)
|
Pension
Value
($)
|
All other
Compensation
($)
|
Total
($)
|
||
Pierre-Paul Allard
|
60,898
61,470
|
(US)
(CA)
|
–
|
–
|
–
|
–
|
–
|
60,898
61,470
|
(US)
(CA)
|
Darryl Edwards
|
61,918
62,500
|
(US)
(CA)
|
–
|
–
|
–
|
–
|
–
|
61,918
62,500
|
(US)
(CA)
|
Pierre Marcouiller
|
65,385
66,000
|
(US)
(CA)
|
–
|
–
|
–
|
–
|
–
|
65,385
66,000
|
(US)
(CA)
|
Guy Marier
|
65,881
66,500
|
(US)
(CA)
|
–
|
–
|
–
|
–
|
–
|
65,881
66,500
|
(US)
(CA)
|
Susan Spradley
|
60,898
61,470
|
(US)
(CA)
|
–
|
–
|
–
|
–
|
–
|
60,898
61,470
|
(US)
(CA)
|
David A. Thompson
(2)
|
23,909
24,134
|
(US)
(CA)
|
–
|
–
|
–
|
–
|
–
|
23,909
24,134
|
(US)
(CA)
|
(1)
|
The compensation information has been converted from Canadian dollars to US dollars based upon an average foreign exchange rate of CA$1.0094 = US$1.00 for the financial year ended August 31, 2012 except for compensation amounts paid to Mr. Pierre-Paul Allard, Ms. Susan Spradley and Mr. David A. Thompson which are paid in US dollars for the portion of their annual retainer for Directors. The fees are always payable in cash, but executives are provided the opportunity to elect to exchange all or a portion of their Annual Retainer for Directors into DSUs. The following table identifies the portion of the fees earned by the directors that were paid in DSUs and the portion that were paid in cash.
|
(i)
|
The estimated value at the time of grant of a DSU is determined based on the highest of the closing prices of the Subordinate Voting Shares on the Toronto Stock Exchange and the NASDAQ National Market on the last trading day preceding the grant date, using the noon buying rate of the Federal Reserve Bank of New York (for grants of DSUs prior to January 1, 2009) or the Bank of Canada (for grants of DSUs on or after January 1, 2009) on the grant date to convert the NASDAQ National Market closing price to Canadian dollars, as required. The value at vesting of a DSU is equivalent to the market value of a Subordinate Voting Share when a DSU is converted to such Subordinate Voting Share.
|
(ii)
|
Elected to receive 50% of his or her Annual Retainer for Directors in form of DSUs.
|
(2)
|
Mr. Thompson ceased to be a member of the Board of Directors as at January 12, 2012.
|
Name
|
Outstanding Option-based Awards (Options)
|
Outstanding Share-based Awards (DSUs)
|
|||||
Number of securities
underlying
unexercised options
(#)
|
Option
Exercise
Price
(US$)
(1)
|
Option
expiration
date
|
Value
(2)
of
unexercised
in-the-money
options
(3)
|
Number of shares
or units of shares
that have not
vested (#)
|
Market or payout
value of share-based
awards that have
not vested
(US$)
(4)
|
Market or
payout value of
vested share-
based awards
not paid out or
distributed (US$)
|
|
Pierre-Paul Allard
|
–
|
–
|
–
|
–
|
20,538
|
98,993
|
–
|
Darryl Edwards
|
–
|
–
|
–
|
–
|
4,244
|
20,456
|
–
|
Pierre Marcouiller
|
–
|
–
|
–
|
–
|
36,186
|
174,417
|
–
|
Guy Marier
|
12,500
|
4.65
(US)
6,22
(CA)
|
Mar. 24, 2014
|
–
–
|
36,186
|
174,417
|
–
|
Susan Spradley
|
–
|
–
|
–
|
–
|
4,268
|
20,572
|
–
|
David A. Thompson
(5)
|
–
|
–
|
–
|
–
|
31,668
|
152,640
|
–
|
(1)
|
These options were granted in Canadian dollars. The exercise price was calculated by using the highest of the closing prices of the Subordinate Voting Shares on the Toronto Stock Exchange and the NASDAQ National Market on the business day preceding the grant date using the noon buying rate of the Bank of Canada to convert the Toronto Stock Exchange closing price to United States dollars on the grant date.
|
(2)
|
The unexercised options have not been and may never be exercised and actual gains if any, on exercise will depend on the value of the Subordinate Voting Shares on the date of exercise. There can be no assurance that these options will be exercised or any gain realized.
|
(3)
|
Indicates an aggregate value of “in-the-money” unexercised options held at the financial year ended August 31, 2012. “In-the-money” options are options for which the market value of the underlying securities is higher than the exercise price. The value of unexercised in-the-money options at financial year end is the difference between its exercise or base price and the market value of the underlying Subordinate Voting Share at August 31, 2012 which was US$4.82 (CA$4.75). The market value of the Subordinate Voting Shares was calculated by using the highest of the closing prices of the Subordinate Voting Shares on the Toronto Stock Exchange and on the NASDAQ National Market on August 31, 2012 using the noon buying rate of the Bank of Canada to convert the NASDAQ National Market closing price to Canadian dollars as required. For a Canadian resident, the value of unexercised in-the-money options is calculated using the option exercise price and the market value of the subordinate voting shares on the TSX in Canadian dollars.
|
(4)
|
The value of unvested DSUs at the financial year-end is the market value of the Subordinate Voting Shares on August 31, 2012, which was US$4.82 (CA$4.75). The market value of the Subordinate Voting Shares was calculated by using the highest of the closing prices of the Subordinate Voting Shares on the Toronto Stock Exchange and on the NASDAQ National Market on August 31, 2012 using the noon buying rate of the Bank of Canada to convert the Toronto Stock Exchange closing price to United States dollars as required. The actual gains on vesting will depend on the value of the Subordinate Voting Shares on the date of vesting. There can be no assurance that these values will be realized.
|
(5)
|
Mr. Thompson ceased to be a member of the Board of Directors as at January 12, 2012.
|
Name
|
Exercised Option-based Awards (Options)
|
||||||
Number of securities underlying exercised options (#)
|
Option Exercise Price
(US$)
|
Option
grant date
|
Gains realized (US$)
|
||||
Pierre-Paul Allard
|
–
|
–
|
–
|
–
|
|||
Darryl Edwards
|
–
|
–
|
–
|
–
|
|||
Pierre Marcouiller
|
–
|
–
|
–
|
–
|
|||
Guy Marier
|
–
|
–
|
–
|
–
|
|||
Susan Spradley
|
–
|
–
|
–
|
–
|
|||
David A. Thompson
(1)
|
12,500
|
3.51
|
Oct. 27, 2003
|
36,039
|
(2)
|
(1)
|
Mr. Thompson ceased to be a member of the Board of Directors as at January 12, 2012.
|
(2)
|
The gain realized is the difference between the market value of the underlying Subordinate Voting Shares at the time of the exercise and the exercise or base price of the option.
|
Plan category
|
Number of securities to be issued
upon exercise of outstanding
options, RSUs and DSUs (#)
(a)
|
Weighted-average exercise price
of outstanding options, RSUs and
DSUs (US$)
(b)
|
Number of securities remaining
available for future issuance under
equity compensation plans (excluding
securities reflected in column (a)) (#)
(c)
|
|
LTIP – RSUs
|
1,337,730
|
n/a
(1)
|
2,290,523
|
|
LTIP – Options
|
244,354
|
4.02
|
||
DSUP – DSUs
|
133,090
|
n/a
(1)
|
(1)
|
The value of RSUs and DSUs will be equal to the market value of the Subordinate Voting Shares of the Corporation on the date of vesting.
|
August 31,
|
||||||||||||||||||||||||
2007
|
2008
|
2009
|
2010
|
2011
|
2012
|
|||||||||||||||||||
EXFO Subordinate Voting Share
|
100 | 62 | 45 | 81 | 90 | 65 | ||||||||||||||||||
S&P/TSX Stock Index
|
100 | 100 | 79 | 87 | 93 | 87 | ||||||||||||||||||
Sum of NEO’s total compensation (in millions of CA$)
|
$2.0 | $2.1 | $2.3 | $2.5 | $2.7 | $2.5 |
·
|
Our share performance improved from the fiscal year ended August 31, 2009 to the fiscal year ended August 31, 2011 and decreased from the fiscal year ended August 31, 2011 to the fiscal year ended August 31, 2012; this performance is aligned with the respective increase and decrease of the total compensation received by the NEOs during these periods. Such compensation for the NEOs is therefore aligned with shareholders’ interests.
|
·
|
Our share performance weakened in the fiscal years ended August 31, 2007, 2008 and 2009 due to a significant downturn in the economy; this performance is similar to other technology sector companies. It should be noted that the Corporation delivered an EBITDA* margin of 14.8%, 11.2 % and 8.4 %, respectively, for fiscal 2007, 2008 and 2009, since the Corporation was expanding our activities, developing new market territories and acquiring new businesses. This expansion significantly increased the complexity of our operations and organization. EBITDA margin is a non-IFRS financial measure. For a discussion of this measure and reconciliation to the most comparable IRFS measure, see Item 5 of this Annual Report under “Non-IFRS Financial Measures”.
|
·
|
The increase in the total compensation received by the NEOs in the fiscal years ended August 31, 2008, 2009, 2010 and 2011 is the result of an initiative to gradually close the compensation gap with respect to market rates. This decision was made pursuant to a three-year plan adopted in 2007 based on Mercer and Aon’s recommendations, and a plan adopted in 2010 previously defined herein as the Mercer Three Year Compensation Plan. In addition, total compensation received by the named executive officers over the identified periods increased as a result of the additional roles and responsibilities of such individuals due to the increased complexity of our organization and to the addition of new senior executive members with higher compensation.
|
*
|
EBITDA is defined as net earnings (loss) before interest, income taxes, amortization of property, plant and equipment, amortization of intangible assets, impairment of goodwill and extraordinary gain.
|
C. | Board Practices |
GERMAIN LAMONDE
|
||
|
St-Augustin-de-Desmaures, Quebec, Canada
Director since
September 1985
Not Independent (Management)
Principal Occupation: Chairman of the Board of Directors, President and Chief Executive Officer of the Corporation
|
Germain Lamonde
, a company founder, has been President and Chief Executive Officer of EXFO since its inception in 1985. He has also been Chairman of the Board since EXFO went public in 2000. Responsible for the overall management and strategic direction of EXFO, Mr. Lamonde has grown the company from the ground up into a global leader in the test and measurement and systems and service assurance industry. Mr. Lamonde has served on the board of directors of several organizations such as the Canadian Institute for Photonic Innovations, the POLE QCA Economic Development Corporation, the National Optics Institute of Canada (INO) and Laval University, to name a few. Germain Lamonde holds a bachelor's degree in physics engineering from the University of Montreal's School of Engineering (
École Polytechnique
), a master's degree in optics from
Université Laval
in Quebec City, and is also a graduate of the Ivey Executive Management Program offered by the University of Western Ontario.
|
Board/Committee Membership
|
Attendance
(1)
|
Principal Board Memberships
|
|
Chairman of the Board of Directors
|
8/8
|
100%
|
–
|
Securities Held
|
As at
|
Subordinate
Voting Shares(#)
|
Multiple Voting
Shares(#)
|
RSUs(#)
|
Total Shares
(2)
and RSUs(#)
|
Total Market Value
(3)
of Shares
(2)
and RSUs (US$)
|
||
August 31, 2012
|
4,140,588
(4)
|
31,643,000
(5)
|
228,920
|
36,012,508
|
173,580,289
|
Options Held as at August 31, 2012
|
|||||||
Date Granted
|
Number(#)
|
Exercise Price (US$)
(6)
|
Total Unexercised(#)
|
Value of Options
Unexercised (US$)
(7)
|
|||
February 1, 2005
December 6, 2005
|
17,942
11,218
|
4.51
4.76
|
17,942
11,218
|
‒
‒
|
|||
Total
|
29,160
|
‒
|
(1)
|
From September 1, 2011 until November 1, 2012, Mr. Lamonde attended 7 meetings in person and 1 meeting by telephone.
|
(2)
|
Includes both Subordinate Voting Shares and Multiple Voting Shares.
|
(3)
|
The value of unvested RSUs at the financial year-end is the market value of the Subordinate Voting Shares on August 31, 2012, which was US$4.82 (CA$4.75). The market value of the Subordinate Voting Shares and Multiple Voting Shares was calculated by using the highest of the closing prices of the Subordinate Voting Shares on the Toronto Stock Exchange and on the NASDAQ National Market on August 31, 2012 using the noon buying rate of the Bank of Canada to convert the NASDAQ National Market closing price to Canadian dollars as required. The actual gains on vesting of RSUs will depend on the value of the Subordinate Voting Shares on the date of vesting. There can be no assurance that these values will be realized.
|
(4)
|
Mr. Lamonde exercises control over 4,000,000 of Subordinate Voting Shares through G. Lamonde Investissements Financiers inc., a company controlled by Mr. Lamonde.
|
(5)
|
Mr. Lamonde exercises control over this number of Multiple Voting Shares through G. Lamonde Investissements Financiers inc., a company controlled by Mr. Lamonde and through Fiducie Germain Lamonde, a family trust for the benefit of Mr. Lamonde’s family.
|
(6)
|
These options were granted in Canadian dollars. The exercise price was calculated by using the highest of the closing prices of the Subordinate Voting Shares on the Toronto Stock Exchange and on the NASDAQ National Market on the business day preceding the grant date using the noon buying rate of the Bank of Canada to convert the Toronto Stock Exchange closing price to United States dollars on the grant date.
|
(7)
|
Indicates an aggregate value of “in-the-money” unexercised options held at the financial year ended August 31, 2012. “In-the-money” options are options for which the market value of the underlying securities is higher than the exercise price. The value of unexercised in-the-money options at financial year end is the difference between its exercise or base price and the market value of the underlying Subordinate Voting Share as at August 31, 2012, which was US$4.82 (CA$4.75). The market value of the Subordinate Voting Shares was calculated by using the highest of the closing prices of the Subordinate Voting Shares on the Toronto Stock Exchange and on the NASDAQ National Market on August 31, 2012 using the noon buying rate of the Bank of Canada to convert the Toronto Stock Exchange closing price to United States dollars as required. For a Canadian resident, the value of options unexercised is calculated using the exercise price and the market value of the subordinate voting shares on the TSX in Canadian dollars.
|
PIERRE-PAUL ALLARD
|
|
Pleasanton, California,
USA
Director since
September 2008
Independent
Principal Occupation: Senior Vice-President, Corporate Strategy and Development at Avaya Inc.
(1)
|
Pierre-Paul Allard
was appointed a member of our Board of Directors in September 2008 and has been a board member of many other technology companies in Canada and in the US. Mr. Allard is Senior Vice-President, Corporate Strategy and Development at Avaya Inc., a global provider of business collaboration and communications solutions. Mr. Allard is responsible for all go-to-market strategy at Avaya, as well as leading Avaya's mergers and acquisitions (M&A), marketing, analyst relations and strategic alliance initiatives on a global basis. Prior to joining Avaya in May 2012, Mr. Allard worked for 19 years at Cisco Systems, Inc., where he most recently held the position of Vice-President, Sales and Operations, Global Enterprise. Previously, Mr. Allard was President of Cisco Systems Canada, and before that he held various management roles at IBM Canada for 12 years. In 2002, Mr. Allard co-chaired the Canadian e-Business Initiative, a private-public partnership aiming to measure the role e-Business plays in increasing productivity levels, job creation and competitive position. In 1998, he was the laureate of the Arista-Sunlife Award, for Top Young Entrepreneur in Large Enterprise, by the Montreal Chamber of Commerce. In 2003, he received the Queen’s Golden Jubilee Medal, which highlights significant contributions to Canada. In the same year, he was also awarded the prestigious Trudeau Medal from the University of Ottawa, Tefler School of Management. Pierre-Paul Allard holds a bachelor’s and masters’ degree in Business Administration from the University of Ottawa, in Canada.
|
Board/Committee Membership
|
Attendance
(2)
|
Principal Board Memberships
|
|||||
Board of Directors
Audit Committee
Human Resources Committee
Independent Board of Directors
|
7/8
3/5
4/5
5/7
|
88%
60%
80%
71%
|
–
|
||||
Securities Held
|
|||||||
As at
|
Subordinate
Voting Shares(#)
|
DSUs(#)
|
Total Shares
and DSUs(#)
|
Total Market Value
(3)
of Shares
(4)
and DSUs (US$)
|
|||
August 31, 2012
|
8,000
|
20,538
|
28,538
|
137,553
|
|||
Options Held as at August 31, 2012
|
|||||||
Date Granted
|
Number(#)
|
Exercise Price (US$)
|
Total Unexercised(#)
|
Value of Options Unexercised (US$)
|
|||
–
|
–
|
–
|
–
|
–
|
(1)
|
Avaya Inc. is a global provider of business collaboration and communications solutions.
|
(2)
|
From September 1, 2011 until November 1, 2012, Mr. Allard attended 5 meetings in person and 2 meetings by telephone.
|
(3)
|
The value of unvested DSUs at the financial year-end is the market value of the Subordinate Voting Shares on August 31, 2012, which was US$4.82 (CA$4.75). The market value of the Subordinate Voting Shares was calculated by using the highest of the closing prices of the Subordinate Voting Shares on the Toronto Stock Exchange and on the NASDAQ National Market on August 31, 2012 using the noon buying rate of the Bank of Canada to convert the Toronto Stock Exchange closing price to United States dollars as required. The actual gains on vesting of DSUs will depend on the value of the Subordinate Voting Shares on the date of vesting. There can be no assurance that these values will be realized.
|
(4)
|
Refers to Subordinate Voting Shares.
|
DARRYL EDWARDS
|
|
Weston Under Wetherley
Warwickshire
United Kingdom
Director since
September 2011
Independent
Principal Occupation:
President and CEO, ECI Telecom
|
Darryl Edwards
was appointed a member of our Board of Directors in September 2011. Mr. Edwards is the President and CEO of ECI Telecom, a leading provider of Access and Transport solution. Prior to leading ECI, Mr. Edwards was the Chairman of the Board for MACH, a leading provider of hub-based mobile communication solutions. He brings to EXFO more than 30 years of telecommunications experience gained from a number of senior executive leadership positions; most recently he was the Chief Executive Officer of AIRCOM International, successfully leading the company through to business sale. Mr. Edwards was previously at Nortel Networks for 17 years, where he held various executive officer positions, including President of EMEA and President of Global Sales (Carrier Networks). He also was the Chief Executive Officer for two of Nortel's key joint ventures, first in the Middle East and later in Germany. Prior to his time at Nortel, Mr. Edwards spent 13 years at GEC-Plessey Telecommunications where he worked in engineering, quality assurance and international sales. He was also an advisor to private equity firm Warburg Pincus, the majority shareholder in MACH, on telecommunications-related topics. Mr. Edwards has held a number of chairs, including Chairman of the Board of Nortel's interests in Turkey, Nortel Netas, which was listed on the Istanbul Stock Exchange. He also was a member of the Advisory Counsel to the Turkish government between 2004 and 2008, and previously served on the UK Government Broadband Stakeholders Group and the Information Age Partnership. Darryl Edwards holds a Higher National Certificate (Physics) from Birmingham Polytechnic in the UK.
|
Board/Committee Membership
|
Attendance
(2)
|
Principal Board Memberships
|
|||||
Board of Directors
Audit Committee
Human Resources Committee
Independent Board of Directors
|
8/8
4/5
5/5
6/7
|
100%
80%
100%
86%
|
WP Roaming Holdings S.A.
|
||||
Securities Held
|
|||||||
As at
|
Subordinate
Voting Shares(#)
|
DSUs(#)
|
Total Shares
and DSUs(#)
|
Total Market Value
(3)
of Shares
(4)
and DSUs (US$)
|
|||
August 31, 2012
|
–
|
4,244
|
4,244
|
20,456
|
|||
Options Held as at August 31, 2012
|
|||||||
Date Granted
|
Number(#)
|
Exercise Price (US$)
|
Total Unexercised(#)
|
Value of Options Unexercised (US$)
|
|||
–
|
–
|
–
|
–
|
–
|
(1)
|
From September 1, 2011 until November 1, 2012, Mr. Edwards attended 6 meetings in person and 2 meetings by telephone.
|
(2)
|
The value of unvested DSUs at the financial year-end is the market value of the Subordinate Voting Shares on August 31, 2012, which was US$4.82 (CA$4.75). The market value of the Subordinate Voting Shares was calculated by using the highest of the closing prices of the Subordinate Voting Shares on the Toronto Stock Exchange and on the NASDAQ National Market on August 31, 2012 using the noon buying rate of the Bank of Canada to convert the Toronto Stock Exchange closing price to United States dollars as required. The actual gains on vesting of DSUs will depend on the value of the Subordinate Voting Shares on the date of vesting. There can be no assurance that these values will be realized.
|
(3)
|
Refers to Subordinate Voting Shares.
|
GUY MARIER
|
|
Lakefield Gore, Quebec,
Canada
Director since January 2004
Lead Director from January 2007 until January 2011
Independent
Principal Occupation: Executive Consultant
|
Guy Marier
has served as our Director since January 2004. President of Bell Québec between 1999 and 2003, Mr. Marier completed his successful 33-year career at Bell
(1)
as Executive Vice-President of the Project Management Office, before retiring at the end of 2003. From 1988 to 1990, Mr. Marier headed Bell Canada International’s investments and projects in Saudi Arabia and, for the three following years, served as President of Télébec, limited partnership, a member of the Bell group of companies. He then returned to the parent company to hold various senior management positions. Guy Marier holds a Bachelor of Arts from the University of Montreal and a Bachelor of Business Administration from the
Université du Québec à Montréal.
|
Board/Committee Membership
|
Attendance
(2)
|
Principal Board Memberships
|
|||||
Board of Directors
Audit Committee
Human Resources Committee
Independent Board of Directors
|
8/8
5/5
5/5
7/7
|
100%
100%
100%
100%
|
–
|
||||
Securities Held
|
|||||||
As at
|
Subordinate
Voting Shares(#)
|
DSUs(#)
|
Total Shares
and DSUs(#)
|
Total Market Value
(3)
of Shares
(4)
and DSUs (US$)
|
|||
August 31, 2012
|
1,000
|
36,186
|
37,186
|
179,237
|
|||
Options Held as at August 31, 2012
|
|||||||
Date Granted
|
Number(#)
|
Exercise Price (US$)
|
Total Unexercised(#)
|
Value of Options Unexercised (US$)
|
|||
March 24, 2004
|
12,500
|
4.65
|
12,500
|
–
|
(1)
|
Bell is Canada's largest communications company, providing consumers with solutions to all their communications needs, including telephone services, wireless communications, high-speed Internet, digital television and voice over IP. Bell also offers integrated information and communications technology services to businesses and governments.
|
(2)
|
From September 1, 2011 until November 1, 2012, Mr. Marier attended 7 meetings in person and 1 meeting by telephone.
|
(3)
|
The value of unvested DSUs at the financial year-end is the market value of the Subordinate Voting Shares on August 31, 2012, which was US$4.82 (CA$4.75). The market value of the Subordinate Voting Shares was calculated by using the highest of the closing prices of the Subordinate Voting Shares on the Toronto Stock Exchange and on the NASDAQ National Market on August 31, 2012 using the noon buying rate of the Bank of Canada to convert the NASDAQ National Market closing price to Canadian dollars as required. The actual gains on vesting of DSUs will depend on the value of the Subordinate Voting Shares on the date of vesting. There can be no assurance that these values will be realized.
|
(4)
|
Refers to Subordinate Voting Shares.
|
(5)
|
These options were granted in Canadian dollars. The exercise price was calculated by using the highest of the closing prices of the Subordinate Voting Shares on the Toronto Stock Exchange and on the NASDAQ National Market on the business day preceding the grant date using the noon buying rate of the Bank of Canada to convert the Toronto Stock Exchange closing price to United States dollars as required on the grant date.
|
(6)
|
Indicates an aggregate value of “in-the-money” unexercised options held at the financial year ended August 31, 2012. “In-the-money” options are options for which the market value of the underlying securities is higher than the exercise price. The value of unexercised in-the-money options at financial year end is the difference between its exercise or base price and the market value of the underlying Subordinate Voting Share at August 31, 2012, which was US$4.82 (CA$4.75). The market value of the Subordinate Voting Shares was calculated by using the highest of the closing prices of the Subordinate Voting Shares on the Toronto Stock Exchange and on the NASDAQ National Market on August 31, 2012 using the noon buying rate of the Bank of Canada to convert the Toronto Stock Exchange closing price to United States dollars as required. For a Canadian resident, the value of options unexercised is calculated using the exercise price and the market value of the subordinate voting shares on the TSX in Canadian dollars.
|
(a)
|
is, as at the date hereof, or has been, within 10 years before the date hereof, a director, chief executive officer or chief financial officer of any company that (i) was subject to an order that was issued while such individual was acting in the capacity as director, chief executive officer or chief financial officer, or (ii) was subject to an order that was issued after such individual ceased to be a director, chief executive officer or chief financial officer and which resulted from an event that occurred while that person was acting in the capacity as director, chief executive officer or chief financial officer;
|
(b)
|
is, as at the date hereof, or has been within 10 years before the date hereof, a director or executive officer of any company that, while such individual was acting in that capacity, or within a year of that individual ceasing to act in that capacity, became bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency or was subject to or instituted any proceedings, arrangement or compromise with creditors or had a receiver, receiver manager or trustee appointed to hold its assets;
|
(c)
|
has, within the 10 years before the date hereof, become bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency, or become subject to or instituted any proceedings, arrangement or compromise with creditors, or had a receiver, receiver manager or trustee appointed to hold his assets; or
|
(d)
|
has been subject to (i) any penalties or sanctions imposed by a court relating to securities legislation or by a securities regulatory authority or has entered into a settlement agreement with a securities regulatory authority, or (ii) any other penalties or sanctions imposed by a court or regulatory body that would likely be considered important to a reasonable security holder in deciding whether to vote for such individual.
|
Name
|
Subordinate Voting
Shares Owned
|
Currently Exercisable Options Owned
as at November 1, 2012
|
Total Subordinate
Voting Shares
Beneficially Owned
(3)
|
Multiple Voting
Shares Beneficially
Owned
(3)
|
Total Percentage
of Voting Power
|
||||||
In-the-money
(1)
|
Out-the-money
(2)
|
||||||||||
Number
|
Percent
|
Number
|
Percent
|
Number
|
Percent
|
Number
|
Percent
|
Number
|
Percent
|
Percent
|
|
Germain Lamonde
|
4,171,069
(
4)
|
14.47
|
–
|
*
|
29,160
|
13.19
|
4,200,229
|
14.56
|
31,643,000
(5)
|
100
|
92.86
|
Pierre Plamondon
|
64,944
(6)
|
*
|
–
|
*
|
9,036
|
4.09
|
73,980
|
*
|
–
|
–
|
*
|
Pierre-Paul Allard
|
8,000
|
*
|
–
|
*
|
–
|
*
|
8,000
|
*
|
–
|
–
|
*
|
Darryl Edwards
|
–
|
*
|
–
|
*
|
–
|
*
|
–
|
*
|
–
|
–
|
*
|
Pierre Marcouiller
|
5,000
|
*
|
–
|
*
|
–
|
*
|
5,000
|
*
|
–
|
–
|
*
|
Guy Marier
|
1,000
|
*
|
–
|
*
|
12,500
|
5.65
|
13,500
|
*
|
–
|
–
|
*
|
Susan Spradley
|
–
|
*
|
–
|
*
|
–
|
*
|
–
|
*
|
–
|
–
|
*
|
Stephen Bull
|
38,192
|
*
|
–
|
*
|
–
|
*
|
38,192
|
*
|
–
|
–
|
*
|
Sylvain Rouleau
|
–
|
*
|
–
|
*
|
–
|
*
|
–
|
*
|
–
|
–
|
*
|
Dana Yearian
|
7,786
|
*
|
–
|
*
|
–
|
*
|
7,786
|
*
|
–
|
–
|
*
|
Other executive officers as a group
|
31,612
|
*
|
–
|
*
|
5,458
|
2.47
|
37,070
|
*
|
–
|
–
|
*
|
All of our Directors and executive officers as a group
|
4,327,603
|
15.02
|
–
|
*
|
56,154
|
25.40
|
4,383,757
|
15.18
|
31,643,000
|
100
|
92.91
|
*
|
Less than 1%.
|
(1)
|
“In-the-money” options are options for which the market value of the underlying securities is higher than the exercise price at which such securities may be bought from the Corporation. As at November 1, 2012 the market value of a Subordinate Voting Share was US$4.49 or CA$4.47, as applicable.
|
(2)
|
“Out-the-money” options are options for which the market value of the underlying securities is lower than the price of which such securities may be bought from the Corporation.
|
(3)
|
Beneficial ownership is determined in accordance with the rules of the SEC and generally includes voting or investment power with respect to securities. Options that are currently exercisable or exercisable within sixty (60) days as at November 1, 2012 (including options that have an exercise price above the market price) are deemed to be outstanding and to be beneficially owned by the person holding such options for the purpose of computing the percentage ownership of such person, but are not treated as outstanding for the purpose of computing the percentage ownership of any other person. Accordingly, DSUs and RSUs are not included.
|
(4)
|
The number of shares held by Germain Lamonde includes 4,000,000 subordinate voting shares held of record by G. Lamonde Investissements financiers inc.
|
(5)
|
The number of shares held by Germain Lamonde includes 1,900,000 multiple voting shares held of record by Fiducie Germain Lamonde and 29,743,000 multiple voting shares held of record by G. Lamonde Investissements Financiers inc.
|
(6)
|
The number of shares held by Pierre Plamondon includes 6,874 subordinate voting shares held of record by Fiducie Pierre Plamondon.
|
Name
|
Securities Under Options
Granted
(1)
(#)
|
Exercise Price
(2)
(US$/Security)
|
Expiration Date
|
||
Germain Lamonde
|
17,942
11,218
|
$4.51
$4.76
|
February 1, 2015
December 6, 2015
|
||
Pierre Plamondon
|
5,383
3,653
|
$5.13
$4.76
|
October 26, 2014
December 6, 2015
|
||
Pierre-Paul Allard
|
−
|
−
|
−
|
||
Darryl Edwards
|
−
|
−
|
−
|
||
Pierre Marcouiller
|
−
|
−
|
−
|
||
Guy Marier
|
12,500
|
$4.65
|
March 24, 2014
|
||
Susan Spradley
|
−
|
−
|
−
|
||
Stephen Bull
|
−
|
−
|
−
|
||
Sylvain Rouleau
|
−
|
−
|
−
|
||
Dana Yearian
|
−
|
−
|
−
|
||
Other Executive Officers as a group
|
3,230
2,228
|
$5.13
$4.76
|
October 26, 2014
December 6, 2015
|
(1)
|
Underlying securities: subordinate voting shares
|
(2)
|
The exercise price of options granted is determined based on the highest of the closing prices of the subordinate voting shares on the Toronto Stock Exchange and the NASDAQ National Market on the last trading day preceding the grant date, using the noon buying rate of the Federal Reserve Bank of New York on the grant date to convert the NASDAQ National Market closing price to Canadian dollars, as required.
|
Name
|
DSUs
|
RSUs
|
|||||
Number
|
Percentage
|
Estimated Average Value at the time of
grant US$/DSU
(1)
|
Number
|
Percentage
|
Fair Value at the
time of grant
US$/RSU
(2)
|
||
Germain Lamonde
|
–
|
–
|
–
|
42,599
(3)
|
3.09%
|
2.36
|
|
–
|
–
|
–
|
57,490
(4)
|
4.17%
|
3.74
|
||
–
|
–
|
–
|
45,089
(5)
|
3.27%
|
6.03
|
||
–
|
–
|
–
|
53,261
(6)
|
3.87%
|
5.43
|
||
Pierre Plamondon
|
–
|
–
|
–
|
13,477
(3)
|
0.98%
|
2.36
|
|
–
|
–
|
–
|
20,339
(7)
|
1.48%
|
2.36
|
||
–
|
–
|
–
|
14,611
(4)
|
1.06%
|
3.74
|
||
–
|
–
|
–
|
13,019
(5)
|
0.94%
|
6.03
|
||
–
|
–
|
–
|
8,857
(8)
|
0.64%
|
6.03
|
||
–
|
–
|
–
|
17,325
(6)
|
1.26%
|
5.43
|
||
–
|
–
|
–
|
19,740
(9)
|
1.43%
|
5.06
|
||
Pierre-Paul Allard
|
20,538
(
10)
|
15.4%
|
5.10
|
–
|
–
|
–
|
|
Darryl Edwards
|
4,244
(10)
|
3.2%
|
5.10
|
–
|
–
|
–
|
|
Pierre Marcouiller
|
36,186
(10)
|
27.2%
|
5.10
|
–
|
–
|
–
|
|
Guy Marier
|
36,186
(10)
|
27.2%
|
5.10
|
–
|
–
|
–
|
|
Susan Spradley
|
4,268
(10)
|
3.2%
|
5.10
|
–
|
–
|
–
|
|
David A. Thompson
|
31,668
(10)
|
23.8%
|
5.10
|
–
|
–
|
–
|
Name
|
DSUs
|
RSUs
|
|||||
Number
|
Percentage
|
Estimated Average Value at the time of
grant US$/DSU
(1)
|
Number
|
Percentage
|
Fair Value at the
time of grant
US$/RSU
(2)
|
||
Stephen Bull
|
–
|
–
|
–
|
11,592
(3)
|
0.84%
|
2.36
|
|
–
|
–
|
–
|
13,559
(7)
|
0.98%
|
2.36
|
||
–
|
–
|
–
|
12,233
(4)
|
0.89%
|
3.74
|
||
–
|
–
|
–
|
10,953
(5)
|
0.79%
|
6.03
|
||
–
|
–
|
–
|
4,026
(8)
|
0.29%
|
6.03
|
||
–
|
–
|
–
|
15,490
(6)
|
1.12%
|
5.43
|
||
–
|
–
|
–
|
18,753
(9)
|
1.36%
|
5.06
|
||
Sylvain Rouleau
|
–
|
–
|
–
|
7,576
(11)
|
0.55%
|
6.55
|
|
–
|
–
|
–
|
6,330
(12)
|
0.46%
|
6.55
|
||
–
|
–
|
–
|
14,980
(9)
|
1.09%
|
5.06
|
||
Dana Yearian
|
–
|
–
|
–
|
15,062
(3)
|
1.09%
|
2.36
|
|
–
|
–
|
–
|
25,424
(7)
|
1.85%
|
2.36
|
||
–
|
–
|
–
|
13,260
(4)
|
0.96%
|
3.74
|
||
–
|
–
|
–
|
11,609
(5)
|
0.84%
|
6.03
|
||
–
|
–
|
–
|
8,857
(8)
|
0.64%
|
6.03
|
||
–
|
–
|
–
|
15,322
(6)
|
1.11%
|
5.43
|
||
–
|
–
|
–
|
17,994
(9)
|
1.31%
|
5.06
|
||
Other executive officers as a group
|
–
|
–
|
–
|
31,103
(3)
|
2.26%
|
2.36
|
|
–
|
–
|
–
|
55,924
(7)
|
4.06%
|
2.36
|
||
–
|
–
|
–
|
5,000
(13)
|
0.36%
|
3.22
|
||
–
|
–
|
–
|
30,979
(4)
|
2.25%
|
3.74
|
||
–
|
–
|
–
|
6,400
(14)
|
0.46%
|
5.13
|
||
–
|
–
|
–
|
27,559
(5)
|
2.00%
|
6.03
|
||
–
|
–
|
–
|
17,713
(8)
|
1.29%
|
6.03
|
||
–
|
–
|
–
|
4,600
(15)
|
0.33%
|
9.32
|
||
–
|
–
|
–
|
37,185
(6)
|
2.70%
|
5.43
|
||
–
|
–
|
–
|
8,321
(18)
|
0.60%
|
6.61
|
||
–
|
–
|
–
|
4,000
(16)
|
0.29%
|
6.47
|
||
–
|
–
|
–
|
1,429
(17)
|
0.10%
|
7.06
|
||
–
|
–
|
–
|
68,937
(9)
|
5.00%
|
5.06
|
||
All of the directors and executive officers as a group
|
–
|
–
|
–
|
113,833
(3)
|
8.26%
|
2.36
|
|
–
|
–
|
–
|
115,246
(7)
|
8.36%
|
2.36
|
||
–
|
–
|
–
|
5,000
(13)
|
0.36%
|
3.22
|
||
–
|
–
|
–
|
128,573
(4)
|
9.33%
|
3.74
|
||
–
|
–
|
–
|
6,400
(14)
|
0.46%
|
5.13
|
||
–
|
–
|
–
|
108,229
(5)
|
7.85%
|
6.03
|
||
–
|
–
|
–
|
39,453
(8)
|
2.86%
|
6.03
|
||
–
|
–
|
–
|
4,600
(15)
|
0.33%
|
9.32
|
||
–
|
–
|
–
|
138,583
(6)
|
10.06%
|
5.43
|
||
–
|
–
|
–
|
8,321
(18)
|
0.60%
|
6.61
|
||
–
|
–
|
–
|
4,000
(16)
|
0.29%
|
6.47
|
||
–
|
–
|
–
|
7,576
(11)
|
0.55%
|
6.55
|
||
–
|
–
|
–
|
6,330
(12)
|
0.46%
|
6.55
|
||
–
|
–
|
–
|
1,429
(17)
|
0.10%
|
7.06
|
||
–
|
–
|
–
|
140,404
(9)
|
10.19%
|
5.06
|
||
Total
|
133,090
|
100%
|
5.10
|
827,977
|
60.09%
|
4.41
|
(1)
|
The estimated average value at the time of grant of a DSU is the average of the estimated value at the time of grant of a DSU which is determined based on the highest of the closing prices of the Subordinate Voting Shares on the Toronto Stock Exchange and the NASDAQ National Market on the last trading day preceding the grant date, using the noon buying rate of the Federal Reserve Bank of New York (for grants of DSUs prior to January 1, 2009) or the Bank of Canada (for grants of DSUs on or after January 1, 2009) on the grant date to convert the NASDAQ National Market closing price to Canadian dollars, as required. The value at vesting of a DSU is equivalent to the market value of a Subordinate Voting Share when a DSU is converted to such Subordinate Voting Share.
|
(2)
|
The fair value at the time of grant of a RSU is equal to the market value of Subordinate Voting Shares at the time RSUs are granted.
|
(3)
|
Those RSUs will vest on the fifth anniversary date of the grant in October 2008 but are subject to early vesting on the third and fourth anniversary date of the grant on the attainment of performance objectives as determined by the Board of Directors. Accordingly, subject to the attainment of performance objectives, the first early vesting is up to 1/3 of the units on the third anniversary date of the grant and the second early vesting is up to 50% of the remaining units on the fourth anniversary date of the grant.
|
(4)
|
Those RSUs will vest on the fifth anniversary date of the grant in October 2009 but are subject to early vesting on the third and fourth anniversary date of the grant on the attainment of performance objectives as determined by the Board of Directors. Accordingly, subject to the attainment of performance objectives, the first early vesting is up to 1/3 of the units on the third anniversary date of the grant and the second early vesting is up to 50% of the remaining units on the fourth anniversary date of the grant.
|
(5)
|
Those RSUs will vest on the fifth anniversary date of the grant in October 2010 but are subject to early vesting on the third and fourth anniversary date of the grant on the attainment of performance objectives as determined by the Board of Directors. Accordingly, subject to the attainment of performance objectives, the first early vesting is up to 1/3 of the units on the third anniversary date of the grant and the second early vesting is up to 50% of the remaining units on the fourth anniversary date of the grant.
|
(6)
|
Those RSUs will vest on the fifth anniversary date of the grant in October 2011 but are subject to early vesting on the third and fourth anniversary date of the grant on the attainment of performance objectives as determined by the Board of Directors. Accordingly, subject to the attainment of performance objectives, the first early vesting is up to 1/3 of the units on the third anniversary date of the grant and the second early vesting is up to 50% of the remaining units on the fourth anniversary date of the grant.
|
(7)
|
Those RSUs will vest on the fifth anniversary date of the grant in October 2008 but are subject to early vesting on the third anniversary date of the grant on the attainment of performance objectives as determined by the Board of Directors. Accordingly, subject to the attainment of performance objectives, the early vesting is up to 100% of the units on the third anniversary date of the grant.
|
(8)
|
Those RSUs will vest on the fifth anniversary date of the grant in October 2010 but are subject to early vesting on the third or fourth anniversary date of the grant on the attainment of performance objectives as determined by the Board of Directors. Accordingly, subject to the attainment of performance objectives, the early vesting is up to 100% of the units on the third or fourth anniversary date of the grant.
|
(9)
|
Those RSUs will vest on the fifth anniversary date of the grant in October 2012 but are subject to early vesting on the third and fourth anniversary date of the grant on the attainment of performance objectives as determined by the Board of Directors. Accordingly, subject to the attainment of performance objectives, the first early vesting is up to 1/3 of the units on the third anniversary date of the grant and the second early vesting is up to 50% of the remaining units on the fourth anniversary date of the grant.
|
(10)
|
Those DSUs will vest at the time Director ceases to be a member of the Board of the Corporation.
|
(11)
|
Those RSUs will vest at a rate of 1/2 annually commencing on the third anniversary date of the grant in January 2012.
|
(12)
|
Those RSUs will vest on the fifth anniversary date of the grant in January 2012 but are subject to early vesting on the third and fourth anniversary date of the grant on the attainment of performance objectives as determined by the Board of Directors. Accordingly, subject to the attainment of performance objectives, the first early vesting is up to 1/3 of the units on the third anniversary date of the grant and the second early vesting is up to 50% of the remaining units on the fourth anniversary date of the grant.
|
(13)
|
Those RSUs will vest at a rate of 1/2 annually commencing on the third anniversary date of the grant in January 2009.
|
(14)
|
Those RSUs will vest at a rate of 1/2 annually commencing on the third anniversary date of the grant in January 2010.
|
(15)
|
Those RSUs will vest at a rate of 1/2 annually commencing on the third anniversary date of the grant in January 2011.
|
(16)
|
Those RSUs will vest at a rate of 1/2 annually commencing on the third anniversary date of the grant in January 2012.
|
(17)
|
Those RSUs will vest on the fifth anniversary date of the grant in April 2012 but are subject to early vesting on the third and fourth anniversary date of the grant on the attainment of performance objectives as determined by the Board of Directors. Accordingly, subject to the attainment of performance objectives, the first early vesting is up to 1/3 of the units on the third anniversary date of the grant and the second early vesting is up to 50% of the remaining units on the fourth anniversary date of the grant.
|
(18)
|
Those RSUs will vest at a rate of 1/2 annually commencing on the third anniversary date of the grant in January 2012.
|
Multiple Voting Shares
Beneficially Owned
(1)
|
Subordinate Voting Shares
Beneficially Owned
(1)
|
Total Percentage
of Voting Power
|
||||||||||||||||||
Name
|
Number
|
Percent
|
Number
|
Percent
|
Percent
|
|||||||||||||||
Germain Lamonde
(2)
|
31,643,000 | 100.00 | % | 4,171,069 | 14.47 | % | 92.86 | % | ||||||||||||
Fiducie Germain Lamonde
(3)
|
1,900,000 | 6.00 | % | – | – | 5.50 | % | |||||||||||||
G. Lamonde Investissements Financiers inc.
(4)
|
29,743,000 | 94.00 | % | 4,000,000 | 13.88 | % | 87.31 | % | ||||||||||||
EdgePoint Investment Group, Inc.
|
– | – | 4,032,700 | 13.99 | % | 1.17 | % | |||||||||||||
Royce & Associates LLC
|
– | – | 1,872,500 | 6.50 | % | * | ||||||||||||||
Brown Investment Advisory, Inc.
|
– | – | 1,537,929 | 5.34 | % | * |
*
|
Less than 1%
|
(1)
|
Beneficial ownership is determined in accordance with the rules of the SEC and generally includes voting or investment power with respect to securities. Options that are currently exercisable within 60 days of November 1, 2012 (including options that have an exercise price above the market price) are deemed to be outstanding and to be beneficially owned by the person holding such options for the purpose of computing the percentage ownership of such person, but are not treated as outstanding for the purpose of computing the percentage ownership of any other person.
|
(2)
|
The number of shares held by Germain Lamonde includes 1,900,000 multiple voting shares held of record by Fiducie Germain Lamonde, 29,743,000 multiple voting shares held of record by G. Lamonde Investissements Financiers inc. and 4,000,000 subordinate voting shares held of record by G. Lamonde Investissements Financiers inc.
|
(3)
|
Fiducie Germain Lamonde is a family trust for the benefit of Mr. Lamonde and members of his family.
|
(4)
|
G. Lamonde Investissements Financiers inc. is a company controlled by Mr. Lamonde.
|
Years ended August 31,
|
||||||||||||||||
2012
|
2011
|
|||||||||||||||
Export Sales
|
$ | 220,022 | 88 | % | $ | 238,757 | 89 | % | ||||||||
Domestic Sales
|
29,944 | 12 | 30,986 | 11 | ||||||||||||
$ | 249,966 | 100 | % | $ | 269,743 | 100 | % |
A. | Offer and Listing Details |
NASDAQ (US$)
|
TSX (CA$)
|
|||||||||||||||
High
|
Low
|
High
|
Low
|
|||||||||||||
September 1, 2007 to August 31, 2008
|
7.28 | 3.92 | 7.35 | 3.97 | ||||||||||||
September 1, 2008 to August 31, 2009
|
4.73 | 2.13 | 5.16 | 2.50 | ||||||||||||
September 1, 2009 to August 31, 2010
|
6.59 | 2.81 | 6.70 | 3.10 | ||||||||||||
September 1, 2010 to August 31, 2011
|
12.96 | 5.28 | 12.56 | 5.50 | ||||||||||||
September 1, 2011 to August 31, 2012
|
8.23 | 4.56 | 8.24 | 4.59 | ||||||||||||
September 1, 2010 to November 30, 2010 (2011 1
st
Quarter)
|
6.35 | 5.28 | 6.44 | 5.50 | ||||||||||||
December 1, 2010 to February 28, 2011 (2011 2
nd
Quarter)
|
11.90 | 6.19 | 11.83 | 6.31 | ||||||||||||
March 1, 2011 to May 31, 2011 (2011 3
rd
Quarter)
|
12.96 | 7.89 | 12.56 | 7.61 | ||||||||||||
June 1, 2011 to August 31, 2011 (2011 4
th
Quarter)
|
9.47 | 5.90 | 9.27 | 5.85 | ||||||||||||
September 1, 2011 to November 30, 2011 (2012 1
st
Quarter)
|
8.23 | 5.38 | 8.24 | 5.51 | ||||||||||||
December 1, 2011 to February 28, 2012 (2012 2
nd
Quarter)
|
8.01 | 5.26 | 7.98 | 5.40 | ||||||||||||
March 1, 2012 to May 31, 2012 (2012 3
rd
Quarter)
|
7.81 | 5.94 | 7.80 | 6.09 | ||||||||||||
June 1, 2012 to August 31, 2012 (2012 4
th
Quarter)
|
5.93 | 4.56 | 5.89 | 4.59 | ||||||||||||
May 2012
|
7.49 | 5.94 | 7.41 | 6.09 | ||||||||||||
June 2012
|
5.69 | 4.99 | 5.89 | 5.13 | ||||||||||||
July 2012
|
5.17 | 4.56 | 5.00 | 4.59 | ||||||||||||
August 2012
|
5.93 | 4.66 | 5.62 | 4.70 | ||||||||||||
September 2012
|
5.20 | 4.80 | 5.10 | 4.70 | ||||||||||||
October 2012
|
5.06 | 4.55 | 4.98 | 4.50 | ||||||||||||
November 2012
|
4.99 | 4.38 | 5.00 | 4.40 | ||||||||||||
(until November 12)
|
C. | Markets |
A. | Share Capital |
|
(a)
|
an individual citizen or resident of the United States;
|
|
(b)
|
a corporation created or organized under the laws of the United States or any state thereof and the District of Columbia;
|
|
(c)
|
an estate the income of which is subject to United States federal income taxation regardless of its source;
|
|
(d)
|
a trust if (1) a court within the United States is able to exercise primary supervision over its administration and one or more U.S. persons as described in Section 7701 (a) (30) of the Code have authority to control all substantial decisions of the trust or (2) the trust has a valid election in effect under applicable U.S. Treasury regulations to be treated as a U.S. person; or
|
|
(e)
|
any other person whose worldwide income or gain is otherwise subject to U.S. federal income taxation on a net income basis.
|
|
●
|
the Code;
|
|
●
|
U.S. judicial decisions;
|
|
●
|
administrative pronouncements;
|
|
●
|
existing and proposed Treasury regulations; and
|
|
●
|
the Canada – U.S. Income Tax Treaty.
|
|
●
|
the holder’s holding period for the subordinate voting shares, with a preferential rate available for subordinate voting shares held for more than one year; and
|
|
●
|
the holder’s marginal tax rate for ordinary income.
|
|
●
|
such gain is effectively connected with the conduct by such Non-U.S. Holder of a trade or business in the United States; or
|
|
●
|
in the case of any gain realized by an individual Non-U.S. Holder, such Non-U.S. Holder is present in the United States for 183 days or more in the taxable year of such sale and certain other conditions are met.
|
|
●
|
at least 75% of our gross income for the taxable year is passive income; or
|
|
●
|
at least 50% of the average value of our assets is attributable to assets that produce or are held for the production of passive income.
|
|
●
|
dividends;
|
|
●
|
interest;
|
|
●
|
rents or royalties, other than certain rents or royalties derived from the active conduct of trade or business;
|
|
●
|
annuities; and
|
|
●
|
gains from assets that produce passive income.
|
|
●
|
any gain realized on the sale or other disposition of subordinate voting shares; and
|
|
●
|
any “excess distribution” by us to the U.S. Holder.
|
|
●
|
the gain or excess distribution would be allocated ratably over the U.S. Holder’s holding period for the subordinate voting shares;
|
|
●
|
the amount allocated to the taxable year in which the gain or excess distribution was realized and to taxable years prior to the first year in which we were classified as a PFIC would be taxable as ordinary income; and
|
|
●
|
the amount allocated to each other prior year would be subject to tax as ordinary income at the highest tax rate in effect for that year, and the interest charge generally applicable to underpayments of tax would be imposed in respect of the tax attributable to each such year.
|
|
●
|
is resident in the United States and not resident in Canada;
|
|
●
|
holds the subordinate voting shares as capital property;
|
|
●
|
does not have a “permanent establishment” or “fixed base” in Canada, as defined in the Convention; and
|
|
●
|
deals at arm’s length with us. Special rules, which are not discussed below, may apply to “financial institutions”, as defined in the ITA, and to non-resident insurers carrying on an insurance business in Canada and elsewhere.
|
H. | Documents on Display |
I. | Subsidiary Information |
Years ending August 31,
|
||||||||
2013
|
2014
|
|||||||
Forward exchange contracts to sell US dollars in exchange for Canadian dollars
|
||||||||
Contractual amounts
|
$ | 23,000 | $ | 3,600 | ||||
Weighted average contractual forward rates
|
1.0228 | 1.0439 |
As at August 31,
|
||||||||||||||||
2012
|
2011
|
|||||||||||||||
Carrying/
nominal
amount
(in thousands
of US dollars)
|
Carrying/
nominal
amount
(in thousands
of euros)
|
Carrying/
nominal
amount
(in thousands
of US dollars)
|
Carrying/
nominal
amount
(in thousands
of euros)
|
|||||||||||||
Financial assets
|
||||||||||||||||
Cash
|
$ | 9,781 | € | 1,555 | $ | 10,553 | € | 1,502 | ||||||||
Accounts receivable
|
27,996 | 4,313 | 25,040 | 4,332 | ||||||||||||
37,777 | 5,868 | 35,593 | 5,834 | |||||||||||||
Financial liabilities
|
||||||||||||||||
Accounts payable and accrued liabilities
|
10,564 | 71 | 8,706 | 37 | ||||||||||||
Forward exchange contracts (nominal amount)
|
4,400 | – | 5,400 | – | ||||||||||||
14,964 | 71 | 14,106 | 37 | |||||||||||||
Net exposure
|
$ | 22,813 | € | 5,797 | $ | 21,487 | € | 5,797 |
|
●
|
An increase (decrease) of 10% in the period-end value of the Canadian dollar compared to the US dollar would decrease (increase) net earnings by $1.9 million, or $0.03 per diluted share, and $2.1 million, or $0.03 per diluted share, as at August 31, 2011 and 2012 respectively.
|
|
●
|
An increase (decrease) of 10% in the period-end value of the Canadian dollar compared to the euro would decrease (increase) net earnings by $831,000, or $0.01 per diluted share, and $709,000, or $0.01 per diluted share, as at August 31, 2011 and 2012 respectively.
|
|
●
|
An increase (decrease) of 10% in the period-end value of the Canadian dollar compared to the US dollar would increase (decrease) comprehensive income by $2.4 million and $1.6 million as at August 31, 2011 and 2012 respectively;
|
As at August 31,
|
||||||||
2012
|
2011
|
|||||||
Commercial paper denominated in Canadian dollars, bearing interest at annual rates of 1.0% to 1.3%, maturing between September and November 2011
|
$ | ‒ | $ | 31,765 | ||||
Bankers acceptance denominated in Canadian dollars, bearing interest at annual rates of 1.1% in fiscal 2012 and 1.0% and 1.2% in fiscal 2011, maturing in September 2012 in fiscal 2012 and in September and November 2011 in fiscal 2011
|
8,236 | 15,326 | ||||||
$ | 8,236 | $ | 47,091 |
As at August 31,
|
||||||||
2012
|
2011
|
|||||||
Current
|
$ | 31,856 | $ | 33,149 | ||||
Past due, 0 to 30 days
|
3,770 | 7,299 | ||||||
Past due, 31 to 60 days
|
1,048 | 2,590 | ||||||
Past due, more than 60 days, less allowance for doubtful accounts of $1,245 and $583 as at August 31, 2011 and 2012 respectively.
|
969 | 2,113 | ||||||
Total accounts receivable
|
$ | 37,643 | $ | 45,151 |
As at August 31, 2012
|
||||||||
0-12
months
|
13-24
months
|
|||||||
Accounts payable and accrued liabilities | $ | 32,392 | $ | ‒ | ||||
Long-term debt
|
565 | 282 | ||||||
Other liabilities
|
‒
|
163 | ||||||
Forward exchange contracts
|
||||||||
Outflow
|
23,000 | 3,600 | ||||||
Inflow
|
(23,851 | ) | (3,810 | ) | ||||
Total
|
$ | 32,106 | $ | 235 |
As at August 31, 2011
|
||||||||||||
0-12
months
|
13-24
months
|
25-36
months
|
||||||||||
Bank loan
|
$ | 784 | $ | – | $ | – | ||||||
Accounts payable and accrued liabilities
|
30,320 | – | – | |||||||||
Contingent liability
|
338 | – | – | |||||||||
Long-term debt
|
645 | 645 | 323 | |||||||||
Other liabilities
|
– | 201 | – | |||||||||
Forward exchange contracts
|
||||||||||||
Outflow
|
27,500 | 11,400 | – | |||||||||
Inflow
|
(29,668 | ) | (11,725 | ) | – | |||||||
Total
|
$ | 29,919 | $ | 521 | $ | 323 |
Description of Securities Other than Equity Securities
|
Defaults, Dividend Arrearages and Delinquencies
|
Material Modifications to the Rights of Security Holders and Use of Proceeds
|
Controls and Procedures
|
Audit Committee Financial Expert
|
Code of Ethics
|
|
●
|
Code of Ethics for our Principal Executive Officer and Senior Financial Officers;
|
|
●
|
Board of Directors Corporate Governance Guidelines;
|
|
●
|
Ethics and Business Conduct Policy;
|
|
●
|
Statement of Reporting Ethical Violations (Whistle Blower).
|
Principal Accountant Fees and Services
|
Period
|
(a) Total Number
of Shares
(or Units)
Purchased
(#)
|
(b) Average Price Paid
per Share (or Units)
|
(c) Total Number of Shares
(or Units) Purchased as Part
of Publicly Announced
Plans or Programs
(#)
|
(d) Maximum Number of
Shares (or Units) that May
Yet Be Purchased Under
the Plans or Programs
(#)
|
|
NASDAQ
(US$)
|
TSX
(CA$)
|
||||
From October 1, 2011
|
21,664
|
‒
|
5.62
|
21,664
|
1,990,898
|
To October 31, 2011
|
|||||
From November 1, 2011
|
13,282
|
‒
|
5.91
|
13,282
|
1,977,616
|
To November 9, 2011
|
|||||
From November 10, 2011
|
28,200
|
5.77
|
5.94
|
28,200
|
547,490
|
To November 30, 2011
|
|||||
From January 1, 2012
|
40,951
|
6.29
|
6.36
|
40,951
|
506,539
|
To January 31, 2012
|
|||||
From February 1, 2012
|
700
|
6.40
|
6.50
|
700
|
505,839
|
To February 29, 2012
|
|||||
From July 1, 2012
|
222,986
|
4.71
|
4.75
|
222,986
|
282,853
|
To July 31, 2012
|
|||||
From August 1, 2012
|
111,111
|
4.82
|
4.99
|
111,111
|
171,742
|
To August 31, 2012
|
|||||
From October 1, 2012
|
64,200
|
4.79
|
4.68
|
64,200
|
107,542
|
To October 31, 2012
|
|||||
From November 1, 2012
|
97,600
|
4.63
|
4.68
|
97,600
|
9,942
|
To November 9, 2012
|
|||||
Total
|
600,694
|
600,694
|
Corporate Governance
|
Number
|
Exhibit
|
1.1
|
Amended Articles of Incorporation of EXFO (incorporated by reference to Exhibit 3.1 of EXFO’s Registration Statement on Form F-1 filed on June 9, 2000, File No. 333-38956).
|
1.2
|
Amended By-laws of EXFO (incorporated by reference to Exhibit 1.2 of EXFO’s Annual Report on Form-20F dated January 15, 2003, File No. 000-30895).
|
1.3
|
Amended and Restated Articles of Incorporation of EXFO (incorporated by reference to Exhibit 1.3 of EXFO’s Annual Report on Form 20-F dated January 18, 2001, File No. 000-30895).
|
1.4
|
Certificate of Amendment, Canada Business Corporations Act (incorporated by reference to Exhibit 10.1 of EXFO’s Annual Report on Form 20-F dated November 25, 2009, File No. 000-30895).
|
1.5
|
Certificate of Amendment (Change of Name), Canada Business Corporations Act (incorporated by reference to Exhibit 1.5 of EXFO’s Annual Report on Form 20-F dated November 24, 2010, File No. 000-30895).
|
2.1
|
Form of Subordinate Voting Share Certificate (incorporated by reference to Exhibit 4.1 of EXFO’s Registration Statement on Form F-1 filed on June 9, 2000, File No. 333-38956).
|
2.2
|
Form of Registration Rights Agreement between EXFO and Germain Lamonde dated July 6, 2000) (incorporated by reference to Exhibit 10.13 of EXFO’s Registration Statement on Form F-1 filed on June 9, 2000, File No. 333-38956).
|
3.1
|
Form of Trust Agreement among EXFO, Germain Lamonde, GEXFO Investissements Technologiques inc., Fiducie Germain Lamonde and G. Lamonde Investissements Financiers inc. (incorporated by reference to Exhibit 4.2 of EXFO’s Registration Statement on Form F-1 filed on June 9, 2000, File No. 333-38956).
|
4.1
|
Agreement of Merger and Plan of Reorganization, dated as of November 4, 2000, by and among EXFO, EXFO Sub, Inc., EXFO Burleigh Instruments, Inc., Robert G. Klimasewski, William G. May, Jr., David J. Farrell and William S. Gornall (incorporated by reference to Exhibit 4.1 of EXFO’s Annual Report on Form 20-F dated January 18, 2001, File No. 000-30895).
|
4.2
|
Amendment No. 1 to Agreement of Merger and Plan of Agreement, dated as of December 20, 2000, by and among EXFO, EXFO Sub, Inc., EXFO Burleigh Instruments, Inc., Robert G. Klimasewski, William G. May, Jr., David J. Farrell and William S. Gornall (incorporated by reference to Exhibit 4.2 of EXFO’s Annual Report on Form 20-F dated January 18, 2001, File No. 000-30895).
|
4.3
|
Agreement of Merger, dated as of August 20, 2001, by and among EXFO, Buyer Sub, and Avantas Networks Corporation and Shareholders of Avantas Networks corporation (incorporated by reference to Exhibit 4.3 of EXFO’s Annual Report on Form 20-F dated January 18, 2002, File No. 000-30895).
|
4.4
|
Amendment No. 1 dated as of November 1, 2002 to Agreement of Merger, dated as of August 20, 2001, by and among EXFO, 3905268 Canada Inc., Avantas Networks Corporation and Shareholders of Avantas Networks (incorporated by reference to Exhibit 4.4 of EXFO’s Annual Report on Form 20-F dated January 18, 2002, File No. 000-30895).
|
4.5
|
Offer to purchase shares of Nortech Fibronic Inc., dated February 6, 2000 among EXFO, Claude Adrien Noel, 9086-9314 Québec inc., Michel Bédard, Christine Bergeron and Société en Commandite Capidem Québec Enr. and Certificate of Closing, dated February 7, 2000 among the same parties (including summary in English) (incorporated by reference to Exhibit 10.2 of EXFO’s Registration Statement on Form F-1 filed on June 9, 2000, File No. 333-38956).
|
4.6
|
Share Purchase Agreement, dated as of March 5, 2001, among EXFO Electro-Optical Engineering, Inc., John Kennedy, Glenn Harvey and EFOS Corporation (incorporated by reference to Exhibit 4.1 of EXFO’s Registration Statement on Form F-3 filed on July 13, 2001, File No. 333-65122).
|
4.7
|
Amendment Number One, dated as of March 15, 2001, to Share Purchase Agreement, dated as of March 5, 2001, among EXFO Electro-Optical Engineering, Inc., John Kennedy, Glenn Harvey and EFOS Corporation. (incorporated by reference to Exhibit 4.2 of EXFO’s Registration Statement on Form F-3 filed on July 13, 2001, File No. 333-65122).
|
4.8
|
Share Purchase Agreement, dated as of November 2, 2001 between JDS Uniphase Inc. and 3905268 Canada Inc. (incorporated by reference to Exhibit 4.8 of EXFO’s Annual Report on Form 20-F dated January 18, 2002, File No. 000-30895).
|
4.9
|
Intellectual Property Assignment and Sale Agreement between EFOS Inc., EXFO Electro-Optical Engineering, Inc., John Kennedy, Glenn Harvey and EFOS Corporation. (incorporated by reference to Exhibit 4.3 of EXFO’s Registration Statement on Form F-3 filed on July 13, 2001, File No. 333-65122).
|
Number
|
Exhibit
|
4.10
|
Offer to acquire a building, dated February 23, 2000, between EXFO and Groupe Mirabau inc. and as accepted by Groupe Mirabau inc. on February 24, 2000 (including summary in English) (incorporated by reference to Exhibit 10.3 of EXFO’s Registration Statement on Form F-1 filed on June 9, 2000, File No. 333-38956).
|
4.11
|
Lease Agreement, dated December 1, 1996, between EXFO and GEXFO Investissements Technologiques inc., as assigned to 9080-9823 Québec inc. on September 1, 1999 (including summary in English) (incorporated by reference to Exhibit 10.4 of EXFO’s Registration Statement on Form F-1 filed on June 9, 2000, File No. 333-38956).
|
4.12
|
Lease Agreement, dated March 1, 1996, between EXFO and GEXFO Investissements Technologiques inc., as assigned to 9080-9823 Québec inc. on September 1, 1999 (including summary in English) (incorporated by reference to Exhibit 10.5 of EXFO’s Registration Statement on Form F-1 filed on June 9, 2000, File No. 333-38956).
|
4.13
|
Lease renewal of the existing leases between 9080-9823 Québec inc. and EXFO, dated November 30, 2001(incorporated by reference to Exhibit 4.13 of EXFO’s Annual Report on Form 20-F dated January 18, 2002, File No. 000-30895).
|
4.14
|
Loan Agreement between EXFO and GEXFO Investissements Technologiques inc., dated May 11, 1993, as assigned to 9080-9823 Québec inc. on September 1, 1999 (including summary in English) (incorporated by reference to Exhibit 10.9 of EXFO’s Registration Statement on Form F-1 filed on June 9, 2000, File No. 333-38956).
|
4.15
|
Resolution of the Board of Directors of EXFO, dated September 1, 1999, authorizing EXFO to acquire GEXFO Distribution Internationale inc. from GEXFO Investissements Technologiques inc. (including summary in English) (incorporated by reference to Exhibit 10.10 of EXFO’s Registration Statement on Form F-1 filed on June 9, 2000, File No. 333-38956).
|
4.16
|
Form of Promissory Note of EXFO issued to GEXFO Investissements Technologiques inc. dated June 27, 2000 ) (incorporated by reference to Exhibit 10.12 of EXFO’s Registration Statement on Form F-1 filed on June 9, 2000, File No. 333-38956).
|
4.17
|
Term Loan Offer, dated March 28, 2000, among EXFO and National Bank of Canada as accepted by EXFO on April 3, 2000 (including summary in English) (incorporated by reference to Exhibit 10.11 of EXFO’s Registration Statement on Form F-1 filed on June 9, 2000, File No. 333-38956).
|
4.18
|
Employment Agreement of Germain Lamonde dated May 29, 2000 (incorporated by reference to Exhibit 10.15 of EXFO’s Registration Statement on Form F-1 filed on June 9, 2000, File No. 333-38956).
|
4.19
|
Employment Agreement of Bruce Bonini dated as of September 1, 2000 (incorporated by reference to Exhibit 4.24 of EXFO’s Annual Report on Form 20-F dated January 18, 2002, File No. 000-30895).
|
4.20
|
Employment Agreement of Juan-Felipe Gonzalez dated as of September 1, 2000 (incorporated by reference to Exhibit 4.25 of EXFO’s Annual Report on Form 20-F dated January 18, 2002, File No. 000-30895).
|
4.21
|
Employment Agreement of David J. Farrell dated as of December 20, 2000 (incorporated by reference to Exhibit 4.26 of EXFO’s Annual Report on Form 20-F dated January 18, 2002, File No. 000-30895).
|
4.22
|
Deferred Profit Sharing Plan, dated September 1, 1998 (incorporated by reference to Exhibit 10.6 of EXFO’s Registration Statement on Form F-1 filed on June 9, 2000, File No. 333-38956).
|
4.23
|
Stock Option Plan, dated May 25, 2000 (incorporated by Reference to Exhibit 10.7 of EXFO’s Registration Statement on Form F-1 filed on June 9, 2000, File No. 333-38956).
|
4.24
|
Share Plan, dated April 3, 2000 (incorporated by reference to Exhibit 10.8 of EXFO’s Registration Statement on Form F-1 filed on June 9, 2000, File No. 333-38956).
|
4.25
|
Directors’ Compensation Plan (incorporated by reference to Exhibit 10.17 of EXFO’s Registration Statement on Form F-1 filed on June 9, 2000, File No. 333-38956).
|
4.26
|
Restricted Stock Award Plan, dated December 20, 2000 (incorporated by reference to Exhibit 4.21 of EXFO’s Annual Report on Form 20-F dated January 18, 2001, File No. 000-30895).
|
4.27
|
Asset Purchase Agreement
by and Among EXFO Electro-Optical Engineering Inc., EXFO Gnubi Products Group Inc., gnubi communications, L.P., gnubi communications General Partner, LLC, gnubi communications Limited Partner, LLC, gnubi communications, Inc., Voting Trust created by The Irrevocable Voting Trust Agreement Among Carol Abraham Bolton, Paul Abraham and James Ray Stevens, James Ray Stevens and Daniel J. Ernst dated September 5, 2002 (incorporated by reference to Exhibit 4.30 of EXFO’s Annual Report on Form 20-F dated January 15, 2003, File No. 000-30895).
|
Number
|
Exhibit
|
4.28
|
EXFO Protocol Inc. Executive Employment Agreement with Sami Yazdi signed November 2, 2001 (incorporated by reference to Exhibit 4.28 of EXFO’s Annual Report on Form 20-F dated January 15, 2003, File No. 000-30895).
|
4.29
|
Second Amending Agreement to the Employment Agreement of Bruce Bonini dated as of September 1, 2002, (incorporated by reference to Exhibit 4.29 of EXFO’s Annual Report on Form 20-F dated January 15, 2004, File No. 000-30895).
|
4.30
|
Severance and General Release Agreement with Bruce Bonini dated August 8, 2003, (incorporated by reference to Exhibit 4.30 of EXFO’s Annual Report on Form 20-F dated January 15, 2004, File No. 000-30895).
|
4.31
|
Separation Agreement and General Release with Sami Yazdi dated April 1, 2003, (incorporated by reference to Exhibit 4.31 of EXFO’s Annual Report on Form 20-F dated January 15, 2004, File No. 000-30895).
|
4.32
|
Executive Employment Agreement of James Stevens dated as of October 4, 2003, (incorporated by reference to Exhibit 4.32 of EXFO’s Annual Report on Form 20-F dated January 15, 2004, File No. 000-30895).
|
4.33
|
Termination Terms for John Holloran Jr. dated May 28, 2003, (incorporated by reference to Exhibit 4.33 of EXFO’s Annual Report on Form 20-F dated January 15, 2004, File No. 000-30895).
|
4.34
|
Employment Agreement of Pierre Plamondon dated as of September 1, 2002, (incorporated by reference to Exhibit 4.34 of EXFO’s Annual Report on Form 20-F dated January 15, 2004, File No. 000-30895).
|
4.35
|
Long-Term Incentive Plan, dated May 25, 2000, amended in October 2004 and effective January 12, 2005 (incorporated by reference to Exhibit 4.35 of EXFO’s Annual Report on Form 20-F dated November 29, 2005, File No. 000-30895).
|
4.36
|
Deferred Share Unit Plan, effective January 12, 2005 (incorporated by reference to Exhibit 4.36 of EXFO’s Annual Report on Form 20-F dated November 29, 2005, File No. 000-30895).
|
4.37
|
Asset Purchase Agreement by and Among EXFO Electro-Optical Engineering Inc., Consultronics Limited., Andre Rekai, Consultronics Europe Limited, Consultronics Development Kft. and Consultronics Inc. dated January 5, 2006 (incorporated by reference to Exhibit 4.37 of EXFO’s Annual Report on Form 20-F dated November 23, 2006, File No. 000-30895).
|
4.38
|
Share Repurchase Program by Way of Normal Course Issuer Bid dated November 6, 2007 (incorporated by reference to EXFO’s report on Form 6-K dated November 6, 2007, file No. 000-30895).
|
4.39
|
Share Purchase Agreement by and Among EXFO Electro-Optical Engineering Inc., Navtel Communications Inc. and Vengrowth Investment Fund, BDC Capital Inc. and others, dated March 26, 2008 (incorporated by reference to Exhibit 4.38 of EXFO’s Annual Report on Form 20-F dated November 26, 2008, File No. 000-30895).
|
4.40
|
Agreement and Plan of Merger by and among Gexfo Distribution Internationale Inc., EXFO Service Assurance Inc. and Brix Networks, Inc. and Charles River Ventures, LLC dated April 2, 2008 (incorporated by reference to EXFO’s Material Change Report on Form 6-K dated May 2, 2008, File No. 000-30895).
|
4.41
|
Issuer Tender Offer, Letter of Transmittal and Notice of Guaranteed Delivery dated November 10, 2008 (incorporated by reference as Exhibits (a) (1) (i), (a) (1) (ii) and (a) (1) (iii) to EXFO’s Schedule TO dated November 10, 2008, File No. 000-30895).
|
4.42
|
Renewal of EXFO’s Share Repurchase Program by Way of Normal Course Issuer Bid dated November 6, 2008 (incorporated by reference to EXFO’s report on Form 6-K dated November 6, 2008, file No. 000-30895).
|
4.43
|
Final results of Issuer Bid Tender Offer, dated December 18, 2009 (incorporated by reference to EXFO’s Material Change Report on Form 6-K dated December 19, 2008, file No. 000-30895).
|
4.44
|
Share Transfer Agreement by and among GEXFO Distribution Internationale Inc. and AWS Holding AB (PicoSolve AB) and Patent Transfer Agreement by and among EXFO Electro-Optical Engineering Inc. and Starta Eget Boxen 11629 AB dated February 5, 2009 (incorporated by reference to Exhibit 4.44 of EXFO’s Annual Report on Form 20-F dated November 25, 2009, File No. 000-30895).
|
4.45
|
Renewal of EXFO’s Share Repurchase Program by Way of Normal Course Issuer Bid dated November 10, 2009 (incorporated by reference to EXFO’s report on Form 6-K dated November 6, 2009, file No. 000-30895).
|
4.46
|
Share Purchase Agreement by and among EXFO Finland Oy and NetHawk Oyj’s majority shareholders dated March 12, 2010 (incorporated by reference to EXFO’s Material Change Report on Form 6-K dated March 19, 2010, File No. 000-30895).
|
4.47
|
Share Purchase Agreement by and among EXFO Inc. and Photonic Acquisition Inc. dated October 1, 2010 (incorporated by reference to EXFO’s Material Change Report on Form 6-K dated October 8, 2010, File No. 000-30895).
|
Number
|
Exhibit
|
4.48
|
Renewal of EXFO’s Share Repurchase Program by Way of Normal Course Issuer Bid dated November 5, 2010 (incorporated by reference to EXFO’s report on Form 6-K dated November 5, 2010, file No. 000-30895).
|
4.49
|
Renewal of EXFO’s Share Repurchase Program by Way of Normal Course Issuer Bid dated November 7, 2011 (incorporated by reference to EXFO’s report on Form 6-K dated November 7, 2011, file No. 000-30895).
|
4.50
|
Renewal of EXFO’s Share Repurchase Program by Way of Normal Course Issuer Bid dated November 7, 2012 (incorporated by reference to EXFO’s report on Form 6-K dated November 7, 2012, file No. 000-30895).
|
8.1
|
Subsidiaries of EXFO (list included in Item 4C of this Annual Report).
|
11.1
|
Code of Ethics for our Principal Executive Officer and Senior Financial Officers (incorporated by reference to Exhibit 11.1 of EXFO’s Annual Report on Form 20-F dated November 24, 2010, File No. 000-30895).
|
11.2
|
Board of Directors Corporate Governance Guidelines (incorporated by reference to Exhibit 11.2 of EXFO’s Annual Report on Form 20-F dated November 24, 2010, File No. 000-30895).
|
11.3
|
Ethics and Business Conduct Policy (incorporated by reference to Exhibit 11.3 of EXFO’s Annual Report on Form 20-F dated November 24, 2010, File No. 000-30895).
|
11.4
|
Statement of Reporting Ethical Violations (Whistle Blower) (incorporated by reference to Exhibit 11.4 of EXFO’s Annual Report on Form 20-F dated November 24, 2010, File No. 000-30895).
|
11.5
|
Audit Committee Charter.
|
11.6
|
Human Resources Committee Charter.
|
11.7
|
Corporate Governance Practices.
|
11.8
|
Majority Voting Policy (incorporated by reference to Exhibit 11.8 of EXFO’s Annual Report on Form 20-F dated November 23, 2011, File No. 000-30895).
|
11.9
|
Independent Members Committee Charter (incorporated by reference to Exhibit 11.9 of EXFO’s Annual Report on Form 20-F dated November 23, 2011, File No. 000-30895).
|
12.1
|
Certification of the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
12.2
|
Certification of the Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
13.1
|
Certification of the Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
13.2
|
Certification of the Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
By: |
/s/ Germain Lamonde
|
Name: | Germain Lamonde |
Title: | Chairman of the Board, President |
and Chief Executive Officer
|
|
Date: | December 10, 2012 |
1.
|
I have reviewed this Annual Report on Form 20-F of EXFO Inc. ("EXFO");
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of EXFO as of, and for, the periods presented in this report;
|
4.
|
EXFO's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for EXFO and have:
|
a.
|
Designed such disclosure controls and procedures or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to EXFO, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of EXFO's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in EXFO's internal control over financial reporting that occurred during the period covered by the Annual Report that has materially affected, or is reasonably likely to materially affect, EXFO's internal control over financial reporting; and
|
5.
|
EXFO's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to EXFO's auditors and the audit committee of EXFO's board of directors:
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect EXFO's ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in EXFO’s internal control over financial reporting.
|
1.
|
The Annual Report on Form 20-F for the year ended August 31, 2012 of EXFO fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
2.
|
The information contained in this Annual Report fairly presents, in all material respects, the financial condition and results of operations of EXFO.
|
1.
|
I have reviewed this Annual Report on Form 20-F of EXFO Inc. ("EXFO");
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of EXFO as of, and for, the periods presented in this report;
|
4.
|
EXFO's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for EXFO and have:
|
a.
|
Designed such disclosure controls and procedures or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to EXFO, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of EXFO's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in EXFO's internal control over financial reporting that occurred during the period covered by the Annual Report that has materially affected, or is reasonably likely to materially affect, EXFO's internal control over financial reporting; and
|
5.
|
EXFO's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to EXFO's auditors and the audit committee of EXFO's board of directors:
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect EXFO's ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in EXFO's internal control over financial reporting.
|
1.
|
The Annual Report on Form 20-F for the year ended August 31, 2012 of EXFO fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
2.
|
The information contained in this Annual Report fairly presents, in all material respects, the financial condition and results of operations of EXFO.
|
As at
August 31, 2012
|
As at
August 31, 2011
|
As at
September 1, 2010
|
||||||||||
Assets
|
||||||||||||
Current assets
|
||||||||||||
Cash
|
$ | 58,868 | $ | 22,771 | $ | 21,440 | ||||||
Short-term investments (note 7)
|
8,236 | 47,091 | 10,379 | |||||||||
Accounts receivable (note 7)
|
||||||||||||
Trade
|
37,643 | 45,151 | 50,190 | |||||||||
Other
|
4,283 | 6,329 | 5,217 | |||||||||
Income taxes and tax credits recoverable
|
9,024 | 5,414 | 2,604 | |||||||||
Inventories (note 8)
|
41,212 | 52,754 | 40,328 | |||||||||
Prepaid expenses
|
3,800 | 3,237 | 2,816 | |||||||||
Current assets held for sale (note 4)
|
– | – | 3,769 | |||||||||
163,066 | 182,747 | 136,743 | ||||||||||
Tax credits recoverable
(note 22)
|
38,397 | 36,627 | 29,397 | |||||||||
Forward exchange contracts
(note 7)
|
– | 149 | – | |||||||||
Property, plant and equipment
(note 9)
|
49,848 | 32,076 | 24,730 | |||||||||
Intangible assets
(note 10)
|
14,132 | 22,901 | 27,947 | |||||||||
Goodwill
(note 10)
|
29,160 | 30,942 | 29,355 | |||||||||
Deferred income taxes
(note 22)
|
12,080 | 16,913 | 18,730 | |||||||||
Long-term assets held for sale
(note 4)
|
– | – | 7,530 | |||||||||
$ | 306,683 | $ | 322,355 | $ | 274,432 | |||||||
Liabilities
|
||||||||||||
Current liabilities
|
||||||||||||
Bank loan
|
$ | – | $ | 784 | $ | – | ||||||
Accounts payable and accrued liabilities (note 12)
|
32,392 | 30,320 | 29,943 | |||||||||
Provisions (note 12)
|
952 | 1,817 | 927 | |||||||||
Income taxes payable
|
917 | 876 | 426 | |||||||||
Contingent liability (note 13)
|
– | 338 | – | |||||||||
Current portion of long-term debt (note 14)
|
565 | 645 | 568 | |||||||||
Deferred revenue
|
10,583 | 10,590 | 10,354 | |||||||||
Current liabilities related to assets held for sale (note 4)
|
– | – | 2,531 | |||||||||
45,409 | 45,370 | 44,749 | ||||||||||
Deferred revenue
|
4,997 | 5,704 | 5,775 | |||||||||
Long-term debt
(note 14)
|
282 | 968 | 1,419 | |||||||||
Contingent liability
(note 13)
|
– | – | 2,660 | |||||||||
Other liabilities
|
609 | 723 | 603 | |||||||||
Deferred income taxes
(note 22)
|
2,105 | 5,079 | – | |||||||||
Long-term liabilities related to assets held for sale
(note 4)
|
– | – | 537 | |||||||||
53,402 | 57,844 | 55,743 | ||||||||||
Commitments
(note 15)
|
||||||||||||
Shareholders’ equity
|
||||||||||||
Share capital (note 16)
|
110,965 | 110,341 | 106,126 | |||||||||
Contributed surplus
|
17,298 | 18,017 | 18,563 | |||||||||
Retained earnings
|
111,511 | 115,104 | 92,984 | |||||||||
Accumulated other comprehensive income (note 17)
|
13,507 | 21,049 | 1,016 | |||||||||
253,281 | 264,511 | 218,689 | ||||||||||
$ | 306,683 | $ | 322,355 | $ | 274,432 |
On behalf of the Board
|
||
/s/ Germain Lamonde
GERMAIN LAMONDE
Chairman, President and CEO
|
/s/ Guy Marier
GUY MARIER
Chairman, Audit Committee
|
Years ended August 31,
|
||||||||
2012
|
2011
|
|||||||
Sales
(note 24)
|
$ | 249,966 | $ | 269,743 | ||||
Cost of sales
(1)
(note 20)
|
91,792 | 100,296 | ||||||
Selling and administrative (note 20)
|
94,139 | 87,062 | ||||||
Net research and development
(note 20)
|
49,854 | 47,927 | ||||||
Depreciation of property, plant and equipment (note 20)
|
6,169 | 6,655 | ||||||
Amortization of intangible assets (note 20)
|
7,819 | 9,183 | ||||||
Changes in fair value of cash contingent consideration (note 13)
|
(311 | ) | (2,685 | ) | ||||
Earnings from operations
|
504 | 21,305 | ||||||
Interest and other income
|
131 | 511 | ||||||
Foreign exchange loss
|
(657 | ) | (3,808 | ) | ||||
Earnings (loss) before income taxes
|
(22 | ) | 18,008 | |||||
Income taxes
(note 22)
|
3,571 | 8,814 | ||||||
Net earnings (loss) from continuing operations
|
(3,593 | ) | 9,194 | |||||
Net earnings from discontinued operations
(note 4)
|
– | 12,926 | ||||||
Net earnings (loss) for the year
|
$ | (3,593 | ) | $ | 22,120 | |||
Basic and diluted net earnings (loss) from continuing operations per share
|
$ | (0.06 | ) | $ | 0.15 | |||
Basic net earnings (loss) per share
|
$ | (0.06 | ) | $ | 0.37 | |||
Diluted net earnings (loss) per share
|
$ | (0.06 | ) | $ | 0.36 | |||
Basic weighted average number of shares outstanding (000’s)
|
60,453 | 60,000 | ||||||
Diluted weighted average number of shares outstanding (000’s)
(note 23)
|
60,453 | 61,488 |
Years ended August 31,
|
||||||||
2012
|
2011
|
|||||||
Net earnings (loss) for the year
|
$ | (3,593 | ) | $ | 22,120 | |||
Other comprehensive income (loss), net of income taxes
|
||||||||
Foreign currency translation adjustment
|
(6,875 | ) | 19,123 | |||||
Reclassification of realized losses on short-term investments in net earnings
|
– | 2 | ||||||
Unrealized gains on forward exchange contracts
|
185 | 3,413 | ||||||
Reclassification of realized gains on forward exchange contracts in net earnings (loss)
|
(1,108 | ) | (2,191 | ) | ||||
Deferred income tax effect of the components of other comprehensive income (loss)
|
256 | (314 | ) | |||||
Other comprehensive income (loss)
|
(7,542 | ) | 20,033 | |||||
Comprehensive income (loss) for the year
|
$ | (11,135 | ) | $ | 42,153 |
Year ended August 31, 2011
|
||||||||||||||||||||
Share
capital
|
Contributed surplus
|
Retained earnings
|
Accumulated other comprehensive income
|
Total
shareholders’ equity
|
||||||||||||||||
Balance as at September 1, 2010
|
$ | 106,126 | $ | 18,563 | $ | 92,984 | $ | 1,016 | $ | 218,689 | ||||||||||
Exercise of stock options (note 16)
|
1,452 | – | – | – | 1,452 | |||||||||||||||
Reclassification of stock-based compensation costs (note 16)
|
2,763 | (2,763 | ) | – | – | – | ||||||||||||||
Stock-based compensation costs
|
– | 2,217 | – | – | 2,217 | |||||||||||||||
Net earnings for the year
|
– | – | 22,120 | – | 22,120 | |||||||||||||||
Other comprehensive income
|
||||||||||||||||||||
Foreign currency translation adjustment
|
– | – | – | 19,123 | 19,123 | |||||||||||||||
Changes in unrealized losses on short-term investments
|
– | – | – | 2 | 2 | |||||||||||||||
Changes in unrealized gains on forward exchange contracts, net of deferred income taxes of $314
|
– | – | – | 908 | 908 | |||||||||||||||
Total comprehensive income for the year
|
– | – | 22,120 | 20,033 | 42,153 | |||||||||||||||
Balance as at August 31, 2011
|
$ | 110,341 | $ | 18,017 | $ | 115,104 | $ | 21,049 | $ | 264,511 |
Year ended August 31, 2012
|
||||||||||||||||||||
Share
capital
|
Contributed surplus
|
Retained earnings
|
Accumulated other comprehensive income
|
Total
shareholders’ equity
|
||||||||||||||||
Balance as at September 1, 2011
|
$ | 110,341 | $ | 18,017 | $ | 115,104 | $ | 21,049 | $ | 264,511 | ||||||||||
Exercise of stock options (note 16)
|
310 | – | – | – | 310 | |||||||||||||||
Redemption of share capital (note 16)
|
(1,696 | ) | (540 | ) | – | – | (2,236 | ) | ||||||||||||
Reclassification of stock-based compensation costs (note 16)
|
2,010 | (2,010 | ) | – | – | – | ||||||||||||||
Stock-based compensation costs
|
– | 1,831 | – | – | 1,831 | |||||||||||||||
Net loss for the year
|
– | – | (3,593 | ) | – | (3,593 | ) | |||||||||||||
Other comprehensive loss
|
||||||||||||||||||||
Foreign currency translation adjustment
|
– | – | – | (6,875 | ) | (6,875 | ) | |||||||||||||
Changes in unrealized gains on forward exchange contracts, net of deferred income taxes of $256
|
– | – | – | (667 | ) | (667 | ) | |||||||||||||
Total comprehensive loss for the year
|
– | – | (3,593 | ) | (7,542 | ) | (11,135 | ) | ||||||||||||
Balance as at August 31, 2012
|
$ | 110,965 | $ | 17,298 | $ | 111,511 | $ | 13,507 | $ | 253,281 |
Years ended August 31,
|
||||||||
2012
|
2011
|
|||||||
Cash flows from operating activities
|
||||||||
Net earnings (loss) for the year
|
$ | (3,593 | ) | $ | 22,120 | |||
Add (deduct) items not affecting cash
|
||||||||
Change in discount on short-term investments
|
45 | (42 | ) | |||||
Stock-based compensation costs
|
1,862 | 2,256 | ||||||
Depreciation and amortization
|
13,988 | 15,856 | ||||||
Gain on disposal of discontinued operations (note 4)
|
– | (13,212 | ) | |||||
Gain on disposal of capital assets
|
– | (568 | ) | |||||
Changes in fair value of cash contingent consideration (note 13)
|
(311 | ) | (2,685 | ) | ||||
Deferred revenue
|
(506 | ) | (1,262 | ) | ||||
Deferred income taxes
|
2,050 | 7,063 | ||||||
Changes in foreign exchange gain/loss
|
(1,510 | ) | 2,130 | |||||
12,025 | 31,656 | |||||||
Change in non-cash operating items
|
||||||||
Accounts receivable
|
7,974 | 10,066 | ||||||
Income taxes and tax credits
|
(5,570 | ) | (6,714 | ) | ||||
Inventories
|
10,879 | (8,751 | ) | |||||
Prepaid expenses
|
(589 | ) | (232 | ) | ||||
Accounts payable and accrued liabilities and provisions
|
643 | (2,775 | ) | |||||
Other liabilities
|
(105 | ) | 60 | |||||
25,257 | 23,310 | |||||||
Cash flows from investing activities
|
||||||||
Additions to short-term investments
|
(115,886 | ) | (516,674 | ) | ||||
Proceeds from disposal and maturity of short-term investments
|
152,797 | 481,945 | ||||||
Additions to capital assets (note 9)
|
(23,849 | ) | (12,164 | ) | ||||
Proceeds from disposal of capital assets
|
– | 568 | ||||||
Net proceeds from disposal of discontinued operations (note 4)
|
– | 22,063 | ||||||
Business combination
|
– | (1,049 | ) | |||||
13,062 | (25,311 | ) | ||||||
Cash flows from financing activities
|
||||||||
Bank loan
|
(782 | ) | 772 | |||||
Repayment of long-term debt
|
(577 | ) | (619 | ) | ||||
Exercise of stock options
|
310 | 1,452 | ||||||
Redemption of share capital
|
(2,236 | ) | – | |||||
(3,285 | ) | 1,605 | ||||||
Effect of foreign exchange rate changes on cash
|
1,063 | 1,058 | ||||||
Change in cash
|
36,097 | 662 | ||||||
Cash – Beginning of year
|
22,771 | 22,109 | ||||||
Cash – End of year
|
$ | 58,868 | $ | 22,771 | ||||
Supplementary information
|
||||||||
Interest received
|
$ | 679 | $ | 554 | ||||
Interest paid
|
$ | 76 | $ | 159 | ||||
Income taxes paid
|
$ | 1,494 | $ | 1,878 |
a)
|
Foreign currency transactions
|
b)
|
Foreign operations
|
Cash
|
Loans and receivables
|
Short-term investments
|
Available for sale
|
Accounts receivable
|
Loans and receivables
|
Bank loan
|
Other financial liabilities
|
Accounts payable and accrued liabilities
|
Other financial liabilities
|
Long-term debt
|
Other financial liabilities
|
Contingent liability
|
Financial liabilities at fair value through profit and loss
|
Other liabilities
|
Other financial liabilities
|
Term
|
||
Land improvements
|
5 years
|
|
Buildings
|
20 to 60 years
|
|
Equipment
|
2 to 10 years
|
|
Leasehold improvements
|
The lesser of useful life and remaining lease term
|
a)
|
Inventories
|
b)
|
Income taxes
|
c)
|
Impairment of non-financial assets
|
i)
|
Growth rates
|
ii)
|
Discount rate
|
·
|
The company has elected not to apply IFRS 3R, “
Business Combinations
’’, to business combinations that occurred before the date of transition (September 1, 2010);
|
·
|
The company elected to deem the cumulative foreign currency translation adjustment from the translation of consolidated financial statements in the reporting currency (US dollars) to be zero as at the transition date to IFRS. Accordingly, the cumulative translation adjustment as at September 1, 2010 was eliminated in the opening balance of retained earnings. Any foreign currency translation adjustment from the translation of consolidated financial statements in the reporting currency arising after the transition date is recorded in accumulated other comprehensive income in the shareholders’ equity in the balance sheet.
|
Description under Canadian GAAP
|
Notes
|
Canadian
GAAP
|
Adjustments
|
Reclassification
|
IFRS
|
Description under IFRS
|
|||||||||||||||
Assets
|
Assets
|
||||||||||||||||||||
Current assets
|
Current assets
|
||||||||||||||||||||
Cash
|
$ | 21,440 | $ | – | $ | – | $ | 21,440 |
Cash
|
||||||||||||
Short-term investments
|
10,379 | – | – | 10,379 |
Short-term investments
|
||||||||||||||||
Accounts receivable
|
Accounts receivable
|
||||||||||||||||||||
Trade
|
50,190 | – | – | 50,190 |
Trade
|
||||||||||||||||
Other
|
5,217 | – | – | 5,217 |
Other
|
||||||||||||||||
Income taxes and tax credits recoverable
|
2,604 | – | – | 2,604 |
Income taxes and tax credits recoverable
|
||||||||||||||||
Inventories
|
40,328 | – | – | 40,328 |
Inventories
|
||||||||||||||||
Prepaid expenses
|
2,816 | – | – | 2,816 |
Prepaid expenses
|
||||||||||||||||
Future income taxes
|
a) | 6,191 | – | (6,191 | ) | – |
Deferred income taxes
|
||||||||||||||
Current assets held for sale
|
a) | 3,991 | – | (222 | ) | 3,769 |
Current assets held for sale
|
||||||||||||||
143,156 | – | (6,413 | ) | 136,743 | |||||||||||||||||
Tax credits recoverable
|
29,397 | – | – | 29,397 |
Tax credits recoverable
|
||||||||||||||||
Property, plant and equipment
|
c) | 23,455 | 1,275 | – | 24,730 |
Property, plant and equipment
|
|||||||||||||||
Intangible assets
|
27,947 | – | – | 27,947 |
Intangible assets
|
||||||||||||||||
Goodwill
|
29,355 | – | – | 29,355 |
Goodwill
|
||||||||||||||||
Future income taxes
|
a), c) | 12,884 | (345 | ) | 6,191 | 18,730 |
Deferred income taxes
|
||||||||||||||
Long-term assets held for sale
|
a) | 7,308 | – | 222 | 7,530 |
Long-term assets held for sale
|
|||||||||||||||
$ | 273,502 | $ | 930 | $ | – | $ | 274,432 | ||||||||||||||
Liabilities
|
Liabilities
|
||||||||||||||||||||
Current liabilities
|
Current liabilities
|
||||||||||||||||||||
Accounts payable and accrued liabilities
|
e) | $ | 30,870 | $ | – | $ | (927 | ) | $ | 29,943 |
Accounts payable and accrued liabilities
|
||||||||||
e) | – | – | 927 | 927 |
Provisions
|
||||||||||||||||
Income taxes payable
|
426 | – | – | 426 |
Income taxes payable
|
||||||||||||||||
Current portion of long-term debt
|
568 | – | – | 568 |
Current portion of long-term debt
|
||||||||||||||||
Deferred revenue
|
10,354 | – | – | 10,354 |
Deferred revenue
|
||||||||||||||||
Current liabilities related to assets held for sale
|
2,531 | – | – | 2,531 |
Current liabilities related to assets held for sale
|
||||||||||||||||
44,749 | – | – | 44,749 | ||||||||||||||||||
Deferred revenue
|
5,775 | – | – | 5,775 |
Deferred revenue
|
||||||||||||||||
Long-term debt
|
1,419 | – | – | 1,419 |
Long-term debt
|
||||||||||||||||
b) | – | 2,660 | – | 2,660 |
Contingent liability
|
||||||||||||||||
Other liabilities
|
603 | – | – | 603 |
Other liabilities
|
||||||||||||||||
Long-term liabilities related to assets held for sale
|
537 | – | – | 537 |
Long-term liabilities related to assets held for sale
|
||||||||||||||||
53,083 | 2,660 | – | 55,743 | ||||||||||||||||||
Shareholders’ equity
|
Shareholders’ equity
|
||||||||||||||||||||
Share capital
|
106,126 | – | – | 106,126 |
Share capital
|
||||||||||||||||
Contributed surplus
|
18,563 | – | – | 18,563 |
Contributed surplus
|
||||||||||||||||
Retained earnings
|
b), c), d) | 50,528 | (1,730 | ) | 44,186 | 92,984 |
Retained earnings
|
||||||||||||||
Accumulated other comprehensive income
|
c), d) | 45,202 | – | (44,186 | ) | 1,016 |
Accumulated other comprehensive income
|
||||||||||||||
220,419 | (1,730 | ) | – | 218,689 | |||||||||||||||||
$ | 273,502 | $ | 930 | $ | – | $ | 274,432 |
Notes
|
Canadian GAAP
|
Adjustments
|
Reclassification
|
IFRS
|
||||||||||||||||
Assets
|
||||||||||||||||||||
Current assets
|
||||||||||||||||||||
Cash
|
$ | 22,771 | $ | – | $ | – | $ | 22,771 | ||||||||||||
Short-term investments
|
47,091 | – | – | 47,091 | ||||||||||||||||
Accounts receivable
|
||||||||||||||||||||
Trade
|
45,151 | – | – | 45,151 | ||||||||||||||||
Other
|
6,329 | – | – | 6,329 | ||||||||||||||||
Income taxes and tax credits recoverable
|
5,414 | – | – | 5,414 | ||||||||||||||||
Inventories
|
52,754 | – | – | 52,754 | ||||||||||||||||
Prepaid expenses
|
3,237 | – | – | 3,237 | ||||||||||||||||
Deferred income taxes
|
a) | 6,130 | – | (6,130 | ) | – | ||||||||||||||
188,877 | – | (6,130 | ) | 182,747 | ||||||||||||||||
Tax credits recoverable
|
36,627 | – | – | 36,627 | ||||||||||||||||
Forward exchange contracts
|
149 | – | – | 149 | ||||||||||||||||
Property, plant and equipment
|
d) | 30,566 | 1,510 | – | 32,076 | |||||||||||||||
Intangible assets
|
22,901 | – | – | 22,901 | ||||||||||||||||
Goodwill
|
30,942 | – | – | 30,942 | ||||||||||||||||
Deferred income taxes
|
a), c) | 11,024 | (241 | ) | 6,130 | 16,913 | ||||||||||||||
$ | 321,086 | $ | 1,269 | $ | – | $ | 322,355 | |||||||||||||
Liabilities
|
||||||||||||||||||||
Current liabilities
|
||||||||||||||||||||
Bank loan
|
$ | 784 | $ | – | $ | – | $ | 784 | ||||||||||||
Accounts payable and accrued liabilities
|
e) | 32,137 | – | (1,817 | ) | 30,320 | ||||||||||||||
Provisions
|
e) | – | – | 1,817 | 1,817 | |||||||||||||||
Income taxes payable
|
876 | – | – | 876 | ||||||||||||||||
Contingent liability
|
b) | – | 338 | – | 338 | |||||||||||||||
Current portion of long-term debt
|
645 | – | – | 645 | ||||||||||||||||
Deferred revenue
|
10,590 | – | – | 10,590 | ||||||||||||||||
45,032 | 338 | – | 45,370 | |||||||||||||||||
Deferred revenue
|
5,704 | – | – | 5,704 | ||||||||||||||||
Long-term debt
|
968 | – | – | 968 | ||||||||||||||||
Other liabilities
|
723 | – | – | 723 | ||||||||||||||||
Deferred income taxes
|
c) | 4,913 | 166 | – | 5,079 | |||||||||||||||
57,340 | 504 | – | 57,844 | |||||||||||||||||
Shareholders’ equity
|
||||||||||||||||||||
Share capital
|
110,341 | – | – | 110,341 | ||||||||||||||||
Contributed surplus
|
18,017 | – | – | 18,017 | ||||||||||||||||
Retained earnings
|
b), c), d) | 69,877 | 1,041 | 44,186 | 115,104 | |||||||||||||||
Accumulated other comprehensive income
|
b), c), d) | 65,511 | (276 | ) | (44,186 | ) | 21,049 | |||||||||||||
263,746 | 765 | – | 264,511 | |||||||||||||||||
$ | 321,086 | $ | 1,269 | $ | – | $ | 322,355 |
Notes
|
Share capital
|
Contributed Surplus
|
Retained
earnings
|
Accumulated other comprehensive income
|
Total
Shareholders’ equity
|
|||||||||||||||||||
Canadian GAAP
|
$ | 106,126 | $ | 18,563 | $ | 50,528 | $ | 45,202 | $ | 220,419 | ||||||||||||||
Foreign currency translation adjustment
|
d) | – | – | 44,186 | (44,186 | ) | – | |||||||||||||||||
Adjustment to property, plant and equipment, net of deferred income taxes
|
c) | – | – | 930 | – | 930 | ||||||||||||||||||
Adjustment to the fair value of the cash contingent consideration
|
b) | – | – | (2,660 | ) | – | (2,660 | ) | ||||||||||||||||
IFRS
|
$ | 106,126 | $ | 18,563 | $ | 92,984 | $ | 1,016 | $ | 218,689 |
Notes
|
Share capital
|
Contributed Surplus
|
Retained
earnings
|
Accumulated other comprehensive income
|
Total shareholders’ equity
|
|||||||||||||||||||
Canadian GAAP
|
$ | 110,341 | $ | 18,017 | $ | 69,877 | $ | 65,511 | $ | 263,746 | ||||||||||||||
Foreign currency translation adjustment
|
d) | – | 44,186 | (44,186 | ) | – | ||||||||||||||||||
Adjustment to property, plant and equipment, net of deferred income taxes
|
c) | – | – | 1,016 | 87 | 1,103 | ||||||||||||||||||
Adjustment to the fair value of the cash contingent consideration
|
b) | – | – | 25 | (363 | ) | (338 | ) | ||||||||||||||||
IFRS
|
$ | 110,341 | $ | 18,017 | $ | 115,104 | $ | 21,049 | $ | 264,511 |
Notes
|
Canadian GAAP
|
Adjustments
|
IFRS
|
|||||||||||||
Sales
|
$ | 269,743 | $ | – | $ | 269,743 | ||||||||||
Cost of sales
|
100,296 | – | 100,296 | |||||||||||||
Selling and administrative
|
87,062 | – | 87,062 | |||||||||||||
Net research and development
|
47,927 | – | 47,927 | |||||||||||||
Depreciation of property, plant and equipment
|
c) | 6,772 | (117 | ) | 6,655 | |||||||||||
Amortization of intangible assets
|
9,183 | – | 9,183 | |||||||||||||
Changes in fair value of cash contingent consideration
|
b) | – | (2,685 | ) | (2,685 | ) | ||||||||||
Earnings from operations
|
18,503 | 2,802 | 21,305 | |||||||||||||
Interest and other income
|
511 | – | 511 | |||||||||||||
Foreign exchange loss
|
(3,808 | ) | – | (3,808 | ) | |||||||||||
Earnings before income taxes
|
15,206 | 2,802 | 18,008 | |||||||||||||
Income taxes
|
c) | 8,783 | 31 | 8,814 | ||||||||||||
Net earnings from continuing operations
|
6,423 | 2,771 | 9,194 | |||||||||||||
Net earnings from discontinued operations
|
12,926 | – | 12,926 | |||||||||||||
Net earnings for the year
|
$ | 19,349 | $ | 2,771 | $ | 22,120 |
Notes
|
Canadian GAAP
|
Adjustments
|
IFRS
|
|||||||||||||
Net earnings for the year
|
$ | 19,349 | $ | 2,771 | $ | 22,120 | ||||||||||
Other comprehensive income
|
||||||||||||||||
Foreign currency translation adjustment
|
b), c) | 19,399 | (276 | ) | 19,123 | |||||||||||
Reclassification of unrealized losses on short-term investments in net earnings
|
2 | – | 2 | |||||||||||||
Unrealized gains on forward exchange contracts
|
3,413 | – | 3,413 | |||||||||||||
Reclassification of realized gains on forward exchange contracts in net earnings
|
(2,191 | ) | – | (2,191 | ) | |||||||||||
Deferred income tax effect of the components of other comprehensive income
|
(314 | ) | – | (314 | ) | |||||||||||
Other comprehensive income
|
20,309 | (276 | ) | 20,033 | ||||||||||||
Comprehensive income for the year
|
$ | 39,658 | $ | 2,495 | $ | 42,153 |
a)
|
Deferred income taxes
|
b)
|
Business combinations
|
·
|
As at September 1, 2010, the fair value of the cash contingent consideration was estimated at €2,099,000 ($2,660,000) based on information available at that time and recorded in long-term liabilities, with a corresponding decrease of the opening balance of retained earnings (shareholders’ equity).
|
·
|
As at August 31, 2011, the fair value of the cash contingent consideration was reassessed to €235,000 ($338,000), based on revised sales forecasts and presented in current liabilities due to its short-term maturity. The change in the fair value in the amount of $2,685,000, which includes the effect of a foreign currency translation loss of $363,000 (shareholders’ equity), was recorded in the statement of earnings for the year ended August 31, 2011.
|
c)
|
Property, plant and equipment
|
·
|
As at September 1, 2010, this resulted in an increase of the carrying value of property, plant and equipment of $1,275,000 and a decrease of deferred income tax assets of $345,000, for a net increase of the opening balance of retained earnings (shareholders’ equity) of $930,000.
|
·
|
As at August 31, 2011, this resulted in an increase in the carrying value of property, plant and equipment of $1,510,000, a decrease of deferred tax assets of $241,000 and an increase of deferred tax liabilities of $166,000. For the year ended August, 31, 2011, this resulted in a decrease of depreciation of property, plant and equipment of $117,000 and a deferred income tax expense of $31,000. It also resulted in a foreign currency translation gain of $87,000 recorded in accumulated other comprehensive income in the shareholders’ equity.
|
d)
|
Foreign currency translation adjustment
|
e)
|
Provisions reclassification
|
Year ended
August 31, 2011
(30 days)
|
||||
Sales
|
$ | 1,991 | ||
Cost of goods sold and operating expenses
|
$ | 1,997 | ||
Loss from operations
|
$ | (6 | ) | |
Gain from disposal of discontinued operations
|
$ | 13,212 | ||
Net earnings from discontinued operations
|
$ | 12,926 | ||
Basic net earnings from discontinued operations per share
|
$ | 0.22 | ||
Diluted net earnings from discontinued operations per share
|
$ | 0.21 |
Assets
|
||||
Current assets
|
||||
Cash
|
$ | 669 | ||
Accounts receivable
|
84 | |||
Income taxes and tax credits recoverable
|
188 | |||
Inventories
|
2,670 | |||
Prepaid expenses
|
158 | |||
Current assets held for sale
|
3,769 | |||
Tax credits recoverable
|
2,142 | |||
Property, plant and equipment
|
349 | |||
Intangible assets
|
48 | |||
Goodwill
|
4,769 | |||
Deferred income taxes
|
222 | |||
Long-term assets held for sale
|
7,530 | |||
$ | 11,299 | |||
Liabilities
|
||||
Current liabilities related to assets held for sale
|
$ | 2,531 | ||
Long-term liabilities related to assets held for sale
|
537 | |||
$ | 3,068 |
Balance as at
August 31, 2011
|
Additions
|
Payments
|
Balance as at
August 31, 2012
|
|||||||||||||
Severance expenses
|
$ | − | $ | 2,329 | $ | (2,279 | ) | $ | 50 |
·
|
To maintain a flexible capital structure that optimizes the cost of capital at acceptable risk;
|
·
|
To sustain future development of the company, including research and development activities, market development, and potential acquisitions of complementary businesses or products; and
|
·
|
To provide the company’s shareholders with an appropriate return on their investment.
|
As at August 31, 2012
|
||||||||||||||||||||
Loans and
receivable
|
Derivatives
used for
hedging
|
Available
for sale
|
Other
financial
liabilities
|
Total
|
||||||||||||||||
Cash
|
$ | 58,868 | $ | – | $ | – | $ | – | $ | 58,868 | ||||||||||
Short-term investments
|
$ | – | $ | – | $ | 8,236 | $ | – | $ | 8,236 | ||||||||||
Accounts receivable
|
$ | 41,128 | $ | – | $ | – | $ | – | $ | 41,128 | ||||||||||
Forward exchange contracts
|
$ | – | $ | 798 | $ | – | $ | – | $ | 798 | ||||||||||
Accounts payable and accrued liabilities
|
$ | – | $ | – | $ | – | $ | 32,392 | $ | 32,392 | ||||||||||
Long-term debt
|
$ | – | $ | – | $ | – | $ | 847 | $ | 847 | ||||||||||
Other liabilities
|
$ | – | $ | – | $ | – | $ | 163 | $ | 163 |
As at August 31, 2011
|
||||||||||||||||||||||||
Loans and receivable
|
Derivatives used for hedging
|
Available
for sale
|
Other financial liabilities
|
Financial liabilities at fair value through profit and loss
|
Total
|
|||||||||||||||||||
Cash
|
$ | 22,771 | $ | – | $ | – | $ | – | $ | – | $ | 22,771 | ||||||||||||
Short-term investments
|
$ | – | $ | – | $ | 47,091 | $ | – | $ | – | $ | 47,091 | ||||||||||||
Accounts receivable
|
$ | 49,779 | $ | – | $ | – | $ | – | $ | – | $ | 49,779 | ||||||||||||
Forward exchange contracts
|
$ | – | $ | 1,850 | $ | – | $ | – | $ | – | $ | 1,850 | ||||||||||||
Bank loan
|
$ | – | $ | – | $ | – | $ | 784 | $ | – | $ | 784 | ||||||||||||
Accounts payable and accrued liabilities
|
$ | – | $ | – | $ | – | $ | 30,320 | $ | – | $ | 30,320 | ||||||||||||
Contingent liability
|
$ | – | $ | – | $ | – | $ | – | $ | 338 | $ | 338 | ||||||||||||
Long-term debt
|
$ | – | $ | – | $ | – | $ | 1,613 | $ | – | $ | 1,613 | ||||||||||||
Other liabilities
|
$ | – | $ | – | $ | – | $ | 201 | $ | – | $ | 201 |
As at September 1, 2010
|
||||||||||||||||||||||||
Loans and receivable
|
Derivatives used for hedging
|
Available
for sale
|
Other financial liabilities
|
Financial liabilities at fair value through profit and loss
|
Total
|
|||||||||||||||||||
Cash
|
$ | 21,440 | $ | – | $ | – | $ | – | $ | – | $ | 21,440 | ||||||||||||
Short-term investments
|
$ | – | $ | – | $ | 10,379 | $ | – | $ | – | $ | 10,379 | ||||||||||||
Accounts receivable
|
$ | 54,653 | $ | – | $ | – | $ | – | $ | – | $ | 54,653 | ||||||||||||
Forward exchange contracts
|
$ | – | $ | 522 | $ | – | $ | – | $ | – | $ | 522 | ||||||||||||
Accounts payable and accrued liabilities
|
$ | – | $ | – | $ | – | $ | 29,711 | $ | – | $ | 29,711 | ||||||||||||
Contingent liability
|
$ | – | $ | – | $ | – | $ | – | $ | 2,660 | $ | 2,660 | ||||||||||||
Long-term debt
|
$ | – | $ | – | $ | – | $ | 1,987 | $ | – | $ | 1,987 | ||||||||||||
Other liabilities
|
$ | – | $ | – | $ | – | $ | 295 | $ | – | $ | 295 |
Expiry dates
|
Contractual
amounts
|
Weighted average contractual
forward rates
|
||||||
As at September 1, 2010
|
||||||||
September 2010 to August 2011
|
$ | 29,500 | 1.0897 | |||||
September 2011 to August 2012
|
20,400 | 1.0802 | ||||||
September 2012 to January 2013
|
1,500 | 1.0722 | ||||||
Total
|
$ | 51,400 | 1.0854 | |||||
As at August 31, 2011
|
||||||||
September 2011 to August 2012
|
$ | 27,500 | 1.0555 | |||||
September 2012 to July 2013
|
11,400 | 1.0063 | ||||||
Total
|
$ | 38,900 | 1.0411 | |||||
As at August 31, 2012
|
||||||||
September 2012 to August 2013
|
$ | 23,000 | 1.0228 | |||||
September 2013 to August 2014
|
3,600 | 1.0439 | ||||||
Total
|
$ | 26,600 | 1.0256 |
As at August 31, 2012
|
As at August 31, 2011
|
As at September 1, 2010
|
||||||||||||||||||||||
Carrying/
nominal
amount
(in thousands
of US dollars)
|
Carrying/
nominal
amount
(in thousands
of euros)
|
Carrying/
nominal
amount
(in thousands
of US dollars)
|
Carrying/
nominal
amount
(in thousands
of euros)
|
Carrying/
nominal
amount
(in thousands
of US dollars)
|
Carrying/
nominal
amount
(in thousands
of euros)
|
|||||||||||||||||||
Financial assets
|
||||||||||||||||||||||||
Cash
|
$ | 9,781 | € | 1,555 | $ | 10,553 | € | 1,502 | $ | 6,947 | € | 1,287 | ||||||||||||
Accounts receivable
|
27,996 | 4,313 | 25,040 | 4,332 | 30,218 | 3,860 | ||||||||||||||||||
37,777 | 5,868 | 35,593 | 5,834 | 37,165 | 5,147 | |||||||||||||||||||
Financial liabilities
|
||||||||||||||||||||||||
Accounts payable and accrued liabilities
|
10,564 | 71 | 8,706 | 37 | 8,932 | 438 | ||||||||||||||||||
Forward exchange contracts (nominal value)
|
4,400 | – | 5,400 | – | 5,900 | – | ||||||||||||||||||
14,964 | 71 | 14,106 | 37 | 14,832 | 438 | |||||||||||||||||||
Net exposure
|
$ | 22,813 | € | 5,797 | $ | 21,487 | € | 5,797 | $ | 22,333 | € | 4,709 |
·
|
An increase (decrease) of 10% in the period-end value of the Canadian dollar compared to the US dollar would decrease (increase) net earnings by $1,943,000, or $0.03 per diluted share, and $2,053,000, or $0.03 per diluted share, as at August 31, 2011 and 2012 respectively.
|
·
|
An increase (decrease) of 10% in the period-end value of the Canadian dollar compared to the euro would decrease (increase) net earnings by $831,000, or $0.01 per diluted share, and $709,000, or $0.01 per diluted share, as at August 31, 2011 and 2012 respectively.
|
·
|
An increase (decrease) of 10% in the period-end value of the Canadian dollar compared to the US dollar would increase (decrease) comprehensive income by $2,404,000 and $1,575,000 as at August 31, 2011 and 2012 respectively.
|
As at
August 31, 2012
|
As at
August 31, 2011
|
As at
September 1, 2010
|
||||||||||
Commercial paper denominated in Canadian dollars, bearing interest at annual rates of 1.0% to 1.3% in fiscal 2011 and 0.6% to 0.9% in fiscal 2010, maturing between September and November 2011 in fiscal 2011, and in September and October 2010 in 2010
|
$ | – | $ | 31,765 | $ | 6,383 | ||||||
Bankers acceptance denominated in Canadian dollars, bearing interest at annual rates of 1.1% in fiscal 2012, 1.0% and 1.2% in fiscal 2011 and 0.8% in fiscal 2010, maturing in September 2012 in fiscal 2012, in September and November 2011 in 2011, and in September 2010 in 2010
|
8,236 | 15,326 | 3,996 | |||||||||
$ | 8,236 | $ | 47,091 | $ | 10,379 |
As at
August 31, 2012
|
As at
August 31, 2011
|
As at
September 1, 2010
|
||||||||||
Current
|
$ | 31,856 | $ | 33,149 | $ | 38,663 | ||||||
Past due, 0 to 30 days
|
3,770 | 7,299 | 6,787 | |||||||||
Past due, 31 to 60 days
|
1,048 | 2,590 | 1,991 | |||||||||
Past due, more than 60 days, less allowance for doubtful accounts of $1,243, $1,245 and $583 as at September 1, 2010 and August 31, 2011 and 2012 respectively
|
969 | 2,113 | 2,749 | |||||||||
$ | 37,643 | $ | 45,151 | $ | 50,190 |
Years ended August 31,
|
||||||||
2012
|
2011
|
|||||||
Balance – Beginning of year
|
$ | 1,245 | $ | 1,243 | ||||
Addition charged to earnings
|
267 | 148 | ||||||
Write-off of uncollectible accounts
|
(873 | ) | (111 | ) | ||||
Recovery of uncollectible accounts
|
(56 | ) | (35 | ) | ||||
Balance – End of year
|
$ | 583 | $ | 1,245 |
As at August 31, 2012
|
||||||||
0-12
months
|
13-24
months
|
|||||||
Accounts payable and accrued liabilities
|
$ | 32,392 | $ | – | ||||
Long-term debt
|
565 | 282 | ||||||
Other liabilities
|
– | 163 | ||||||
Forward exchange contracts
|
||||||||
Outflow
|
23,000 | 3,600 | ||||||
Inflow
|
(23,851 | ) | (3,810 | ) | ||||
Total
|
$ | 32,106 | $ | 235 |
As at August 31, 2011
|
||||||||||||
0-12
months
|
13-24
months
|
25-36
months
|
||||||||||
Bank loan
|
$ | 784 | $ | – | $ | – | ||||||
Accounts payable and accrued liabilities
|
30,320 | – | – | |||||||||
Contingent liability
|
338 | – | – | |||||||||
Long-term debt
|
645 | 645 | 323 | |||||||||
Other liabilities
|
– | 201 | – | |||||||||
Forward exchange contracts
|
||||||||||||
Outflow
|
27,500 | 11,400 | – | |||||||||
Inflow
|
(29,668 | ) | (11,725 | ) | – | |||||||
Total
|
$ | 29,919 | $ | 521 | $ | 323 |
As at September 1, 2010
|
||||||||||||||||
0-12
months
|
13-24
months
|
25-36
months
|
Over 36
months
|
|||||||||||||
Accounts payable and accrued liabilities
|
$ | 29,711 | $ | – | $ | – | $ | – | ||||||||
Long-term debt
|
568 | 568 | 568 | 283 | ||||||||||||
Contingent liability
|
– | 2,660 | – | – | ||||||||||||
Other liabilities
|
– | 295 | – | – | ||||||||||||
Forward exchange contracts
|
||||||||||||||||
Outflow
|
29,500 | 20,400 | 1,500 | – | ||||||||||||
Inflow
|
(30,141 | ) | (20,662 | ) | (1,508 | ) | – | |||||||||
Total
|
$ | 29,638 | $ | 3,261 | $ | 560 | $ | 283 |
As at
August 31, 2012
|
As at
August 31, 2011
|
As at
September 1, 2010
|
||||||||||
Raw materials
|
$ | 19,786 | $ | 30,280 | $ | 21,505 | ||||||
Work in progress
|
1,511 | 2,206 | 1,975 | |||||||||
Finished goods
|
19,915 | 20,268 | 16,848 | |||||||||
$ | 41,212 | $ | 52,754 | $ | 40,328 |
Land and land improvements
|
Buildings
|
Equipment
|
Leasehold improvements
|
Asset under construction
|
Total
|
|||||||||||||||||||
Cost as at September 1, 2010
|
$ | 2,287 | $ | 15,670 | $ | 39,734 | $ | 2,976 | $ |
‒
|
$ | 60,667 | ||||||||||||
Additions
|
2,171 | 1,621 | 5,551 | 133 | 2,888 | 12,364 | ||||||||||||||||||
Disposals
|
‒
|
‒
|
(3,193 | ) | (73 | ) |
‒
|
(3,266 | ) | |||||||||||||||
Foreign currency translation adjustment
|
247 | 1,682 | 1,942 | 219 | 54 | 4,144 | ||||||||||||||||||
Cost as at August 31, 2011
|
4,705 | 18,973 | 44,034 | 3,255 | 2,942 | 73,909 | ||||||||||||||||||
Reclassification
|
‒
|
2,942 |
‒
|
‒
|
(2,942 | ) |
‒
|
|||||||||||||||||
Additions
|
918 | 16,419 | 6,064 | 804 |
‒
|
24,205 | ||||||||||||||||||
Disposals
|
‒
|
‒
|
(2,255 | ) | (1,745 | ) |
‒
|
(4,000 | ) | |||||||||||||||
Foreign currency translation adjustment
|
(38 | ) | 21 | 119 | 53 |
‒
|
155 | |||||||||||||||||
Cost as at August 31, 2012
|
$ | 5,585 | $ | 38,355 | $ | 47,962 | $ | 2,367 | $ |
‒
|
$ | 94,269 | ||||||||||||
Accumulated depreciation as at September 1, 2010
|
$ | 1,200 | $ | 4,987 | $ | 28,282 | $ | 1,468 | $ |
‒
|
$ | 35,937 | ||||||||||||
Depreciation for the year
|
10 | 302 | 5,821 | 522 |
‒
|
6,655 | ||||||||||||||||||
Disposals
|
‒
|
‒
|
(2,824 | ) | (73 | ) |
‒
|
(2,897 | ) | |||||||||||||||
Foreign currency translation adjustment
|
107 | 696 | 1,191 | 144 |
‒
|
2,138 | ||||||||||||||||||
Accumulated depreciation as at August 31, 2011
|
1,317 | 5,985 | 32,470 | 2,061 |
‒
|
41,833 | ||||||||||||||||||
Depreciation for the year
|
10 | 430 | 5,411 | 318 |
‒
|
6,169 | ||||||||||||||||||
Disposals
|
‒
|
‒
|
(2,082 | ) | (1,654 | ) |
‒
|
(3,736 | ) | |||||||||||||||
Foreign currency translation adjustment
|
(10 | ) | (173 | ) | 372 | (34 | ) |
‒
|
155 | |||||||||||||||
Accumulated depreciation as at August 31, 2012
|
$ | 1,317 | $ | 6,242 | $ | 36,171 | $ | 691 | $ |
‒
|
$ | 44,421 | ||||||||||||
Net carrying value as at:
|
||||||||||||||||||||||||
September 1 , 2010
|
$ | 1,087 | $ | 10,683 | $ | 11,452 | $ | 1,508 | $ |
‒
|
$ | 24,730 | ||||||||||||
August 31, 2011
|
$ | 3,388 | $ | 12,988 | $ | 11,564 | $ | 1,194 | $ | 2,942 | $ | 32,076 | ||||||||||||
August 31, 2012
|
$ | 4,268 | $ | 32,113 | $ | 11,791 | $ | 1,676 | $ |
‒
|
$ | 49,848 |
Core technology
|
Customer relationships
|
Brand name
|
Software
|
Total
|
||||||||||||||||
Cost as at September 1, 2010
|
$ | 34,858 | $ | 6,615 | $ | 659 | $ | 11,557 | $ | 53,689 | ||||||||||
Additions
|
321 |
‒
|
‒
|
1,442 | 1,763 | |||||||||||||||
Disposals
|
(10,187 | ) |
‒
|
‒
|
(421 | ) | (10,608 | ) | ||||||||||||
Foreign currency translation adjustment
|
2,223 | 904 | 90 | 1,144 | 4,361 | |||||||||||||||
Cost as at August 31, 2011
|
27,215 | 7,519 | 749 | 13,722 | 49,205 | |||||||||||||||
Additions
|
128 |
‒
|
‒
|
653 | 781 | |||||||||||||||
Disposals
|
‒
|
‒
|
‒
|
(53 | ) | (53 | ) | |||||||||||||
Foreign currency translation adjustment
|
(1,266 | ) | (937 | ) | (93 | ) | (253 | ) | (2,549 | ) | ||||||||||
Cost as at August 31, 2012
|
$ | 26,077 | $ | 6,582 | $ | 656 | $ | 14,069 | $ | 47,384 | ||||||||||
Accumulated amortization as at September 1, 2010
|
$ | 17,496 | $ | 622 | $ | 62 | $ | 7,562 | $ | 25,742 | ||||||||||
Amortization for the year
|
5,910 | 1,448 | 144 | 1,681 | 9,183 | |||||||||||||||
Disposals
|
(10,187 | ) |
‒
|
‒
|
(410 | ) | (10,597 | ) | ||||||||||||
Foreign currency translation adjustment
|
1,236 | 141 | 14 | 585 | 1,976 | |||||||||||||||
Accumulated amortization as at August 31, 2011
|
14,455 | 2,211 | 220 | 9,418 | 26,304 | |||||||||||||||
Amortization for the year
|
4,929 | 1,351 | 135 | 1,404 | 7,819 | |||||||||||||||
Disposals
|
‒
|
‒
|
‒
|
(19 | ) | (19 | ) | |||||||||||||
Foreign currency translation adjustment
|
(262 | ) | (310 | ) | (31 | ) | (249 | ) | (852 | ) | ||||||||||
Accumulated amortization as at August 31, 2012
|
$ | 19,122 | $ | 3,252 | $ | 324 | $ | 10,554 | $ | 33,252 | ||||||||||
Net carrying value as at:
|
||||||||||||||||||||
September 1, 2010
|
$ | 17,362 | $ | 5,993 | $ | 597 | $ | 3,995 | $ | 27,947 | ||||||||||
August 31, 2011
|
$ | 12,760 | $ | 5,308 | $ | 529 | $ | 4,304 | $ | 22,901 | ||||||||||
August 31, 2012
|
$ | 6,955 | $ | 3,330 | $ | 332 | $ | 3,515 | $ | 14,132 | ||||||||||
Remaining amortization period as at August 31, 2012
|
2 years
|
3 years
|
3 years
|
4 years
|
Years ended August 31,
|
||||||||
2012
|
2011
|
|||||||
Balance – Beginning of year
|
$ | 30,942 | $ | 29,355 | ||||
Foreign currency translation adjustment
|
(1,782 | ) | 1,587 | |||||
Balance – End of year
|
$ | 29,160 | $ | 30,942 |
As at
August 31, 2012
|
As at
August 31, 2011
|
As at
September 1, 2010
|
||||||||||
NetHawk CGU
|
$ | 11,520 | $ | 13,160 | $ | 11,573 | ||||||
Brix CGU
|
17,640 | 17,782 | 17,782 | |||||||||
Total
|
$ | 29,160 | $ | 30,942 | $ | 29,355 |
As at
August 31, 2012
|
As at
August 31, 2011
|
As at
September 1, 2010
|
||||||||||
Trade
|
$ | 16,998 | $ | 15,717 | $ | 14,244 | ||||||
Salaries and social benefits
|
13,084 | 12,649 | 12,400 | |||||||||
Forward exchange contracts (note 7)
|
– | – | 232 | |||||||||
Other
|
2,310 | 1,954 | 3,067 | |||||||||
$ | 32,392 | $ | 30,320 | $ | 29,943 |
As at
August 31, 2012
|
As at
August 31, 2011
|
As at
September 1, 2010
|
||||||||||
Warranty
|
$ | 675 | $ | 1,402 | $ | 579 | ||||||
Other
|
277 | 415 | 348 | |||||||||
$ | 952 | $ | 1,817 | $ | 927 |
Years ended August 31,
|
||||||||
2012
|
2011
|
|||||||
Balance – Beginning of year
|
$ | 1,402 | $ | 579 | ||||
Provision
|
861 | 1,608 | ||||||
Settlements
|
(1,588 | ) | (785 | ) | ||||
Balance – End of year
|
$ | 675 | $ | 1,402 |
As at
August 31, 2012
|
As at
August 31, 2011
|
As at
September 1, 2010
|
||||||||||
Loan collateralized by assets of NetHawk Oyj denominated in euros (€672), bearing interest at 2.95%, repayable in semi-annual installments of $282 (€224), maturing in December 2013
|
$ | 847 | $ | 1,613 | $ | 1,987 | ||||||
Less: current portion
|
565 | 645 | 568 | |||||||||
$ | 282 | $ | 968 | $ | 1,419 |
As at
August 31, 2012
|
As at
August 31, 2011
|
As at
September 1, 2010
|
||||||||||
No later than 1 year
|
$ | 3,628 | $ | 4,659 | $ | 4,716 | ||||||
Later than 1 year and no later than 5 years
|
4,711 | 5,618 | 6,601 | |||||||||
Later than 5 years
|
676 | 525 | 1,181 | |||||||||
$ | 9,015 | $ | 10,802 | $ | 12,498 |
Authorized – unlimited as to number, without par value
|
|
Subordinate voting and participating, bearing a non-cumulative dividend to be determined by the Board of Directors, ranking
pari passu
with multiple voting shares
|
|
Multiple voting and participating, entitling to 10 votes each, bearing a non-cumulative dividend to be determined by the Board of Directors, convertible at the holder’s option into subordinate voting shares on a one-for-one basis, ranking
pari passu
with subordinate voting shares
|
Multiple voting shares
|
Subordinate voting shares
|
|||||||||||||||||||
Number
|
Amount
|
Number
|
Amount
|
Total amount
|
||||||||||||||||
Balance as at September 1, 2010
|
36,643,000 | $ | 1 | 22,936,709 | $ | 106,125 | $ | 106,126 | ||||||||||||
Conversion of multiple voting shares into subordinate voting shares
|
(5,000,000 | ) | – | 5,000,000 | – | – | ||||||||||||||
Exercise of stock options (note 18)
|
– | – | 306,825 | 1,452 | 1,452 | |||||||||||||||
Redemption of restricted share units (note 18)
|
– | – | 340,974 | – | – | |||||||||||||||
Redemption of deferred shares units (note 18)
|
– | – | 37,491 | – | – | |||||||||||||||
Reclassification of stock-based compensation costs to share capital upon exercise of stock awards
|
– | – | – | 2,763 | 2,763 | |||||||||||||||
Balance as at August 31, 2011
|
31,643,000 | 1 | 28,621,999 | 110,340 | 110,341 | |||||||||||||||
Exercise of stock options (note 18)
|
– | – | 109,700 | 310 | 310 | |||||||||||||||
Redemption of restricted share units (note 18)
|
– | – | 418,086 | – | – | |||||||||||||||
Redemption of share capital
|
– | – | (438,894 | ) | (1,696 | ) | (1,696 | ) | ||||||||||||
Reclassification of stock-based compensation costs to share capital upon exercise of stock awards
|
– | – | – | 2,010 | 2,010 | |||||||||||||||
Balance as at August 31, 2012
|
31,643,000 | $ | 1 | 28,710,891 | $ | 110,964 | $ | 110,965 |
|
a)
|
On November 5, 2010, the company announced that its Board of Directors had authorized the renewal of its share repurchase program, by way of a normal course issuer bid on the open market, of up to 10% of its public float (as defined by the Toronto Stock Exchange), or 2,012,562 subordinate voting shares, at the prevailing market price. The period of the normal course issuer bid started on November 10, 2010, and ended on November 9, 2011. All shares repurchased under the bid were cancelled.
|
|
b)
|
On November 7, 2011, the company announced that its Board of Directors had approved the renewal of its share repurchase program, by way of a normal course issuer bid on the open market of up to 2% of its issued and outstanding subordinate voting shares, representing 575,690 subordinate voting shares at the prevailing market price. The normal course issuer bid started on November 10, 2011, and will end on November 9, 2012. All shares repurchased under the bid will be cancelled.
|
|
c)
|
On November 7, 2012, the company announced that its Board of Directors approved the renewal of its share repurchase program, by way of a normal course issuer bid on the open market of up to 10% of the issued and outstanding subordinate voting shares, representing 2,072,721 subordinate voting shares at the prevailing market price. The company expects to use cash, short-term investments or future cash flow from operations to fund the repurchase of shares. The normal course issuer bid will start on November 12, 2012, and will end on November 11, 2013, or on an earlier date if the company repurchases the maximum number of shares permitted under the bid. The program does not require that the company repurchases any specific number of shares, and it may be modified, suspended or terminated at any time and without prior notice. All shares repurchased under the bid will be cancelled.
|
Foreign currency translation adjustment
|
Cash-flow hedge
|
Available-
for-sale
financial instruments
|
Accumulate other comprehensive income
|
|||||||||||||
Balance as at September 1, 2010
|
$ | – | $ | 1,018 | $ | (2 | ) | $ | 1,016 | |||||||
Foreign currency translation adjustment
|
19,123 | – | – | 19,123 | ||||||||||||
Changes in unrealized losses on short-term investments
|
– | – | 2 | 2 | ||||||||||||
Changes in unrealized gains on forward exchange contracts, net of deferred income taxes
|
– | 908 | – | 908 | ||||||||||||
Balance as at August 31, 2011
|
19,123 | 1,926 | – | 21,049 | ||||||||||||
Foreign currency translation adjustment
|
(6,875 | ) | – | – | (6,875 | ) | ||||||||||
Changes in unrealized gains on forward exchange contracts, net of deferred income taxes
|
– | (667 | ) | – | (667 | ) | ||||||||||
Balance as at August 31, 2012
|
$ | 12,248 | $ | 1,259 | $ | – | $ | 13,507 |
Years ended August 31,
|
||||||||
2012
|
2011
|
|||||||
Stock-based compensation costs arising from equity-settled awards
|
$ | 1,831 | $ | 2,217 | ||||
Stock-based compensation costs arising from cash-settled awards
|
31 | 39 | ||||||
$ | 1,862 | $ | 2,256 |
Years ended August 31,
|
||||||||||||||||
2012
|
2011
|
|||||||||||||||
Number
|
Weighted
average
exercise
price
|
Number
|
Weighted
average
exercise
price
|
|||||||||||||
(CA$)
|
(CA$)
|
|||||||||||||||
Outstanding – Beginning of year
|
641,357 | $ | 9 | 1,348,787 | $ | 19 | ||||||||||
Exercised
|
(109,700 | ) | 3 | (306,825 | ) | 5 | ||||||||||
Forfeited
|
(1,500 | ) | 5 | (43,541 | ) | 14 | ||||||||||
Expired
|
(285,803 | ) | 15 | (357,064 | ) | 48 | ||||||||||
Outstanding – End of year
|
244,354 | $ | 5 | 641,357 | $ | 9 | ||||||||||
Exercisable – End of year
|
244,354 | $ | 5 | 641,357 | $ | 9 |
Stock options outstanding and exercisable
|
||||||||||||||||||
Exercise price
|
Number
|
Weighted
average
exercise
price
|
Intrinsic
value
|
Weighted
average
remaining
contractual life
|
||||||||||||||
(CA$)
|
(CA$)
|
(CA$)
|
||||||||||||||||
$2.50 | 23,275 | $ | 2.50 | $ | 55 | – | ||||||||||||
$4.64 to 6.28 | 221,079 | 5.54 | – |
2 years
|
||||||||||||||
244,354 | $ | 5.25 | $ | 55 |
2 years
|
Years ended August 31,
|
||||||||
2012
|
2011
|
|||||||
Outstanding – Beginning of year
|
1,551,658 | 1,603,048 | ||||||
Granted
|
334,878 | 350,382 | ||||||
Redeemed
|
(418,086 | ) | (340,974 | ) | ||||
Forfeited
|
(130,720 | ) | (60,798 | ) | ||||
Outstanding – End of year
|
1,337,730 | 1,551,658 |
Years ended August 31,
|
||||||||
2012
|
2011
|
|||||||
Outstanding – Beginning of year
|
110,298 | 135,003 | ||||||
Granted
|
22,792 | 12,786 | ||||||
Redeemed
|
– | (37,491 | ) | |||||
Outstanding – End of year
|
133,090 | 110,298 |
Years ended August 31,
|
||||||||||||||||
2012
|
2011
|
|||||||||||||||
Number
|
Weighted
average
exercise
price
|
Number
|
Weighted
average
exercise
price
|
|||||||||||||
Outstanding – Beginning of year
|
29,124 | $ | 3 | 44,374 | $ | 8 | ||||||||||
Granted
|
4,000 | – | 4,500 | – | ||||||||||||
Forfeited
|
– | – | (14,750 | ) | 5 | |||||||||||
Expired
|
– | – | (5,000 | ) | 34 | |||||||||||
Outstanding – End of year
|
33,124 | $ | 3 | 29,124 | $ | 3 | ||||||||||
Exercisable – End of year
|
15,787 | $ | 4 | 10,075 | $ | 5 |
Stock appreciation
rights outstanding
|
Stock appreciation
rights exercisable
|
||||||||||
Exercise price
|
Number
|
Weighted average
remaining contractual
life
|
Number
|
||||||||
$ – | 8,500 |
9 years
|
– | ||||||||
$2.36 | 9,674 |
6 years
|
4,837 | ||||||||
$3.74 to $4.65 | 10,500 |
4 years
|
6,500 | ||||||||
$6.28 to $6.50 | 4,450 |
4 years
|
4,450 | ||||||||
33,124 |
6 years
|
15,787 |
Years ended August 31,
|
||||||||
2012
|
2011
|
|||||||
Salaries and short-term employee benefits
|
$ | 3,398 | $ | 3,643 | ||||
Restructuring charges
|
177 | – | ||||||
Stock-based compensation costs
|
793 | 853 | ||||||
$ | 4,368 | $ | 4,496 |
Years ended August 31,
|
||||||||
2012
|
2011
|
|||||||
Gross research and development expenses
|
$ | 59,282 | $ | 57,226 | ||||
Research and development tax credits and grants
|
(9,428 | ) | (9,299 | ) | ||||
$ | 49,854 | $ | 47,927 |
Years ended August 31,
|
||||||||
2012
|
2011
|
|||||||
Cost of sales
|
||||||||
Depreciation of property, plant and equipment
|
$ | 2,009 | $ | 1,975 | ||||
Amortization of intangible assets
|
5,076 | 6,093 | ||||||
7,085 | 8,068 | |||||||
Selling and administrative expenses
|
||||||||
Depreciation of property, plant and equipment
|
1,037 | 1,341 | ||||||
Amortization of intangible assets
|
1,806 | 2,092 | ||||||
2,843 | 3,433 | |||||||
Net research and development expenses
|
||||||||
Depreciation of property, plant and equipment
|
3,123 | 3,339 | ||||||
Amortization of intangible assets
|
937 | 998 | ||||||
4,060 | 4,337 | |||||||
$ | 13,988 | $ | 15,838 | |||||
Depreciation of property, plant and equipment
|
$ | 6,169 | $ | 6,655 | ||||
Amortization of intangible assets
|
7,819 | 9,183 | ||||||
$ | 13,988 | $ | 15,838 |
Years ended August 31,
|
||||||||
2012
|
2011
|
|||||||
Salaries and benefits
|
$ | 127,007 | $ | 122,828 | ||||
Restructuring charges
|
2,329 | – | ||||||
Stock-based compensation costs
|
1,862 | 2,256 | ||||||
$ | 131,198 | $ | 125,084 |
Years ended August 31,
|
||||||||
2012
|
2011
|
|||||||
Cost of sales
|
$ | 264 | $ | – | ||||
Selling and administrative expenses
|
1,181 | – | ||||||
Net research and development costs
|
884 | – | ||||||
$ | 2,329 | $ | – |
Years ended August 31,
|
||||||||
2012
|
2011
|
|||||||
Cost of sales
|
$ | 248 | $ | 224 | ||||
Selling and administrative expenses
|
1,145 | 1,281 | ||||||
Net research and development expenses
|
469 | 487 | ||||||
Net earnings from discontinued operations
|
– | 264 | ||||||
$ | 1,862 | $ | 2,256 |
·
|
Deferred profit-sharing plan
|
·
|
401K plan
|
Years ended August 31,
|
||||||||
2012
|
2011
|
|||||||
Income tax provision at combined Canadian federal and provincial statutory tax rate (27% in 2012 and 29% in 2011)
|
$ | (6 | ) | $ | 5,222 | |||
Increase (decrease) due to:
|
||||||||
Foreign income taxed at different rates
|
285 | (402 | ) | |||||
Non-taxable (income)/loss
|
535 | (4,102 | ) | |||||
Non-deductible expenses
|
1,028 | 916 | ||||||
Foreign exchange effect of translation of foreign operations
|
(2,205 | ) | 2,541 | |||||
Recognition of previously unrecognized deferred income tax assets
|
(557 | ) |
‒
|
|||||
Utilization of previously unrecognized deferred income tax assets
|
(14 | ) | (61 | ) | ||||
Unrecognized deferred income tax assets on temporary deductible differences and unused tax losses
|
4,523 | 5,111 | ||||||
Other
|
(18 | ) | (411 | ) | ||||
$ | 3,571 | $ | 8,814 |
Current
|
$ | – | $ | 27 | ||||
Deferred
|
– | 174 | ||||||
$ | – | $ | 201 |
As at
August 31, 2012
|
As at
August 31, 2011
|
As at
September 1, 2010
|
||||||||||
Deferred tax assets
|
||||||||||||
Deferred tax assets to be recovered within 12 months
|
$ | 2,121 | $ | 4,559 | $ | 4,408 | ||||||
Deferred tax assets to be recovered after 12 months
|
9,959 | 12,354 | 14,322 | |||||||||
12,080 | 16,913 | $ | 18,730 |
Deferred tax liabilities
|
||||||||||||
Deferred tax liabilities payable within 12 months
|
108 | 8 | – | |||||||||
Deferred tax liabilities payable after 12 months
|
1,997 | 5,071 | – | |||||||||
2,105 | 5,079 | – | ||||||||||
Deferred tax assets net
|
$ | 9,975 | $ | 11,834 | $ | 18,730 |
Balance as at September 1, 2010
|
Credited (charged) to statement of earnings
|
Charged to shareholders’ equity
|
Foreign currency translation adjustment
|
Balance as at August 31, 2011
|
||||||||||||||||
Deferred tax assets
|
||||||||||||||||||||
Long-lived assets
|
$ | 5,013 | $ | (705 | ) | $ | – | $ | 336 | $ | 4,644 | |||||||||
Provisions and accruals
|
3,324 | (319 | ) | (314 | ) | 234 | 2,925 | |||||||||||||
Deferred revenue
|
1,983 | (115 | ) | – | 115 | 1,983 | ||||||||||||||
Research and development expenses
|
6,662 | (4,602 | ) | – | 538 | 2,598 | ||||||||||||||
Losses carried forward
|
10,172 | (558 | ) | – | – | 9,614 | ||||||||||||||
Deferred tax liabilities
|
||||||||||||||||||||
Long-lived assets
|
(631 | ) | 421 | – | (22 | ) | (232 | ) | ||||||||||||
Research and development tax credits
|
(7,793 | ) | (1,185 | ) | – | (720 | ) | (9,698 | ) | |||||||||||
Total
|
$ | 18,730 | $ | (7,063 | ) | $ | (314 | ) | $ | 481 | $ | 11,834 | ||||||||
Classified as follows:
|
||||||||||||||||||||
Deferred tax assets
|
$ | 18,730 | $ | 16,913 | ||||||||||||||||
Deferred tax liabilities
|
– | (5,079 | ) | |||||||||||||||||
$ | 18,730 | $ | 11,834 |
Balance as at August 31, 2011
|
Credited (charged) to the statement of earnings
|
Credited (charged) to shareholders’ equity
|
Foreign currency translation adjustment
|
Balance as at August 31, 2012
|
||||||||||||||||
Deferred tax assets
|
||||||||||||||||||||
Long-lived assets
|
$ | 4,644 | $ | (211 | ) | $ | 2 | $ | (46 | ) | $ | 4,389 | ||||||||
Provisions and accruals
|
2,925 | 274 | 256 | (24 | ) | 3,431 | ||||||||||||||
Deferred revenue
|
1,983 | 71 | (10 | ) | 2,044 | |||||||||||||||
Research and development expenses
|
2,598 | (209 | ) |
‒
|
(27 | ) | 2,362 | |||||||||||||
Losses carried forward
|
9,614 | (412 | ) |
‒
|
5 | 9,207 | ||||||||||||||
Deferred tax liabilities
|
||||||||||||||||||||
Long-lived assets
|
(232 | ) | (254 | ) | (2 | ) | (6 | ) | (494 | ) | ||||||||||
Research and development tax credits
|
(9,698 | ) | (1,309 | ) |
‒
|
43 | (10,964 | ) | ||||||||||||
Total
|
$ | 11,834 | $ | (2,050 | ) | $ | 256 | $ | (65 | ) | $ | 9,975 | ||||||||
Classified as follows:
|
||||||||||||||||||||
Deferred tax assets
|
$ | 16,913 | $ | 12,080 | ||||||||||||||||
Deferred tax liabilities
|
(5,079 | ) | (2,105 | ) | ||||||||||||||||
$ | 11,834 | $ | 9,975 |
As at
August 31, 2012
|
As at
August 31, 2011
|
As at
September 1, 2010
|
||||||||||
Temporary deductible differences
|
$ | 270 | $ | 615 | $ | 332 | ||||||
Losses carried forward
|
33,135 | 30,984 | 17,653 | |||||||||
Research and development expenses
|
2,347 | 2,917 | 3,292 | |||||||||
$ | 35,752 | $ | 34,516 | $ | 21,277 |
Canada
|
||||||||||
Year of expiry
|
Federal
|
Provincial
|
Finland
|
United States
|
Other
|
|||||
2013
|
$ ‒
|
$ ‒
|
$ 1,203
|
$ 1,726
|
$ ‒
|
|||||
2014
|
‒
|
‒
|
4,339
|
1,404
|
‒
|
|||||
2015
|
1,182
|
1,182
|
2,877
|
997
|
‒
|
|||||
2016
|
‒
|
‒
|
‒
|
553
|
‒
|
|||||
2017
|
‒
|
‒
|
4
|
‒
|
‒
|
|||||
2018
|
‒
|
‒
|
366
|
‒
|
‒
|
|||||
2020
|
‒
|
‒
|
8,368
|
2,145
|
‒
|
|||||
2021
|
‒
|
‒
|
7,250
|
10,202
|
‒
|
|||||
2022
|
‒
|
‒
|
12,699
|
7,435
|
‒
|
|||||
2023
|
‒
|
‒
|
‒
|
1,972
|
‒
|
|||||
2024
|
‒
|
‒
|
‒
|
1,351
|
‒
|
|||||
2025
|
‒
|
‒
|
‒
|
1,351
|
‒
|
|||||
2026
|
1,090
|
1,090
|
‒
|
1,351
|
‒
|
|||||
2027
|
1,383
|
1,383
|
‒
|
1,351
|
‒
|
|||||
2028
|
‒
|
‒
|
‒
|
2,447
|
‒
|
|||||
2030
|
12
|
12
|
‒
|
2,713
|
‒
|
|||||
2031
|
38
|
38
|
‒
|
109
|
‒
|
|||||
Indefinite
|
‒
|
‒
|
‒
|
‒
|
2,109
|
|||||
$ 3,705
|
$ 3,705
|
$ 37,106
|
$ 37,107
|
$ 2,109
|
(1)
|
undistributed profits of its foreign subsidiaries will not be distributed in the foreseeable future; and
|
(2)
|
undistributed profits of its domestic subsidiaries will not be taxable when distributed.
|
Years ended August 31,
|
||||||||
2012
|
2011
|
|||||||
Basic weighted average number of shares outstanding (000’s)
|
60,453 | 60,000 | ||||||
Plus dilutive effect of:
|
||||||||
Stock options (000’s)
|
149 | 266 | ||||||
Restricted share units (000’s)
|
910 | 1,106 | ||||||
Deferred share units (000’s)
|
118 | 116 | ||||||
Diluted weighted average number of shares outstanding (000’s)
|
61,630 | 61,488 | ||||||
Stock awards excluded from the calculation of the diluted weighted average number of shares outstanding because their exercise price was greater than the average market price of the common shares (000’s)
|
54 | 381 |
Years ended August 31,
|
||||||||
2012
|
2011
|
|||||||
United States
|
$ | 83,401 | $ | 89,240 | ||||
Canada
|
29,944 | 30,986 | ||||||
Other
|
17,838 | 17,303 | ||||||
Americas
|
131,183 | 137,529 | ||||||
United Kingdom
|
9,862 | 15,617 | ||||||
Other
|
61,449 | 69,698 | ||||||
Europe, Middle-East and Africa
|
71,311 | 85,315 | ||||||
China
|
18,365 | 25,799 | ||||||
Other
|
29,107 | 21,100 | ||||||
Asia-Pacific
|
47,472 | 46,899 | ||||||
$ | 249,966 | $ | 269,743 |
As at August 31, 2012
|
As at August 31, 2011
|
As at September 1, 2010
|
||||||||||||||||||||||||||||||||||
Property, plant and equipment
|
Intangible assets
|
Goodwill
|
Property, plant and equipment
|
Intangible assets
|
Goodwill
|
Property, plant and equipment
|
Intangible assets
|
Goodwill
|
||||||||||||||||||||||||||||
Canada
|
$ | 38,436 | $ | 2,858 | $ | − | $ | 21,206 | $ | 3,164 | $ | − | $ | 15,028 | $ | 3,316 | $ | − | ||||||||||||||||||
United States
|
1,335 | 2,067 | 17,640 | 1,402 | 4,834 | 17,782 | 1,829 | 7,828 | 17,782 | |||||||||||||||||||||||||||
Finland
|
849 | 8,265 | 11,520 | 1,544 | 13,324 | 13,160 | 1,606 | 14,906 | 11,573 | |||||||||||||||||||||||||||
India
|
5,866 | 16 | – | 4,709 | 43 | – | 3,134 | 43 | – | |||||||||||||||||||||||||||
China
|
2,094 | 43 | − | 2,696 | 27 | − | 2,665 | 33 | − | |||||||||||||||||||||||||||
Other
|
1,268 | 883 | − | 519 | 1,509 | − | 468 | 1,821 | − | |||||||||||||||||||||||||||
$ | 49,848 | $ | 14,132 | $ | 29,160 | $ | 32,076 | $ | 22,901 | $ | 30,942 | $ | 24,730 | $ | 27,947 | $ | 29,355 |