Author: TSX Stocks

Orosur Mining Inc. – Notice of Annual and Special Meeting Notification of Investor Q&A Session

LONDON, UNITED KINGDOM / ACCESSWIRE / November 13, 2024 / Orosur Mining Inc. (“Orosur” or “the Company”) (AIM:OMI)(TSX-V:OMI) the minerals explorer and developer currently operating in Colombia, Argentina and Nigeria announces that copies of the Company’s Notice of Annual and Special Meeting (“AGM”), including the Management Information Circular and proxy forms have been posted to shareholders. Copies are available on the website at: https://www.orosur.ca

A link to the PDF version of the Notice of AGM is also available here: http://www.rns-pdf.londonstockexchange.com/rns/0959M_1-2024-11-13.pdf

The AGM will be held on 12^th December 2024 at 12pm GMT (UK local time) at the offices ofSP Angel Corporate Finance LLP, Prince Frederick House, 35-39 Maddox Street, London, W1S 2PP, England.Shareholders are strongly encouraged by the Board to vote by proxy by completing their form of proxy in accordance with the instructions on the proxy form.

Notification of Investor Q&A Session

Orosur is also pleased to announce that on Monday 16^th December, Brad George, the Company’s Chief Executive Officer and Louis Castro, Chairman, will be holding a live Investor Q&A session via the Investor Meet Company platform on at 5.30pm GMT.

The presentation is open to all existing and potential shareholders. Questions can be submitted pre-event via your Investor Meet Company dashboard up until 5.30pm GMT the day before the Investor Q&A session, or at any time during the live presentation.

Investors can sign up to Investor Meet Company for free and add to meet the Company via:

https://www.investormeetcompany.com/orosur-mining-inc/register-investor

Investors who already follow Orosur on the Investor Meet Company platform will automatically be invited.

For further information, visit www.orosur.ca, follow on X @orosurm or please contact:

Orosur Mining Inc
Louis Castro, Chairman
Brad George, CEO
[email protected]
Tel: +1 (778) 373-0100

SP Angel Corporate Finance LLP – Nomad & Broker
Jeff Keating / Caroline Rowe
Tel: +44 (0) 20 3 470 0470

Turner Pope Investments (TPI) Ltd – Joint Broker
Andy Thacker/James Pope
Tel: +44 (0)20 3657 0050

Flagstaff Communications
Tim Thompson
Mark Edwards
Fergus Mellon
[email protected] Tel: +44 (0)207 129 1474

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

About Orosur Mining Inc.

Orosur Mining Inc. (TSXV: OMI; AIM: OMI) is a minerals explorer and developer currently operating in Colombia, Argentina and Nigeria.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.

SOURCE: Orosur Mining Inc

View the original press release on accesswire.com

With Donald Trump entering the White House in January, some Americans may consider a fresh start in a stable, welcoming, and progressive country like Canada.

Known for its high quality of life, universal healthcare, and multicultural environment, Canada has long been a preferred destination for those seeking a secure and peaceful lifestyle.

Here, we explore six Canadian cities that offer a variety of lifestyle options for Americans who may be contemplating relocation.

Each city has its unique character, opportunities, and amenities, providing a new beginning that feels like home.

1. Toronto, Ontario

Overview:
Toronto, Canada’s largest city, offers a dynamic, metropolitan lifestyle reminiscent of New York or Chicago. It’s an economic powerhouse with a rich cultural scene and unparalleled diversity, making it a natural choice for Americans looking for job opportunities and cultural vibrancy.

Why It Appeals to Americans:

• Job Opportunities: Toronto’s job market is robust, particularly in finance, tech, healthcare, and media. The city is also home to the Toronto Stock Exchange and many multinational companies.
• Diversity and Community: Known as one of the most multicultural cities worldwide, Toronto is welcoming to people from all walks of life.
• Urban Amenities and Quality of Life: Ranked as one of the safest and most livable cities, Toronto offers excellent healthcare, education, and entertainment.

Considerations:
Toronto’s cost of living, especially housing, is among the highest in Canada. Those relocating for job opportunities may find it easier to manage expenses, but careful budgeting is essential.

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2. Vancouver, British Columbia

Overview:
Nestled between mountains and the Pacific Ocean, Vancouver is famous for its stunning natural beauty, mild climate, and thriving industries in tech, film, and environmental sciences. It’s ideal for those who want access to outdoor adventures without sacrificing urban amenities.

Why It Appeals to Americans:

• Natural Beauty and Climate: Vancouver’s landscape includes beaches, mountains, and forests, making it a haven for outdoor enthusiasts. Its mild winters and cool summers are also attractive for those avoiding harsher climates.
• Booming Tech and Media Sectors: Often called “Hollywood North,” Vancouver attracts many professionals in film, tech, and media, making it especially appealing for Americans from the West Coast.
• Sustainability and Progressiveness: Vancouver’s eco-friendly policies and community focus make it a great fit for those who prioritize environmental consciousness.

Considerations:
Vancouver’s cost of living, especially in housing, is high, so it’s ideal for those with established careers or remote work flexibility.

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3. Montreal, Quebec

Overview:
Montreal combines the charm of Europe with North American comforts, creating a vibrant, bilingual atmosphere with affordable living and a thriving cultural scene. Known for its arts, festivals, and unique history, Montreal is a great choice for those who appreciate a mix of tradition and modernity.

Why It Appeals to Americans:

• Affordable Living: Compared to Toronto and Vancouver, Montreal offers lower housing costs, making it a great option for families or those on a budget.
• Cultural Richness: Montreal is known for its world-class festivals, art galleries, and music scene, attracting creative and artistic individuals.
• Bilingual Lifestyle: While French is the primary language, English is widely spoken, making it accessible yet giving newcomers a chance to embrace bilingualism.

Considerations:
Learning some French is beneficial in Montreal, especially for social integration and work, as the city embraces its Francophone roots.

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4. Calgary, Alberta

Overview:
Calgary provides a balance of urban energy and outdoor adventure, with a strong economy and proximity to the stunning Rocky Mountains. Known for its friendly residents and practical living costs, Calgary is ideal for those seeking career opportunities and easy access to nature.

Why It Appeals to Americans:

• Affordable Housing and Lower Taxes: Calgary offers affordable housing compared to other major Canadian cities and has no provincial sales tax, making it attractive for families.
• Booming Job Market: Calgary’s job market is strong, particularly in the oil, gas, and renewable energy sectors, though tech is also on the rise.
• Outdoor Lifestyle: With the Rockies just an hour away, Calgary is perfect for those who enjoy skiing, hiking, and other outdoor activities.

Considerations:
Calgary has long winters with significant snowfall, so newcomers should be prepared for colder temperatures during winter months.

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5. Ottawa, Ontario

Overview:
Canada’s capital, Ottawa, is known for its political significance, high quality of life, and beautiful architecture. It’s a city that combines urban sophistication with a community feel, making it ideal for professionals, families, and retirees alike.

Why It Appeals to Americans:

• Stable Job Market: Ottawa has a strong job market, especially in government, tech, and education, and is home to Canada’s largest high-tech park.
• Quality of Life: Known for its clean environment, safe neighborhoods, and extensive green spaces, Ottawa consistently ranks high in quality of life.
• Bilingual and Multicultural: While English is widely spoken, Ottawa’s bilingual nature adds a cultural dimension that may be appealing to Americans interested in embracing new experiences.

Considerations:
Winters in Ottawa can be long and cold, though the city has plenty of winter activities, such as skating on the Rideau Canal, to make the season enjoyable.

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6. Halifax, Nova Scotia

Overview:
Halifax offers a slower pace of life, with strong community ties, proximity to the Atlantic Ocean, and affordable living costs. It’s perfect for those seeking a more relaxed lifestyle in a friendly environment with rich maritime history.

Why It Appeals to Americans:

• Affordable Living: Halifax’s cost of living is more manageable than in larger cities, making it attractive for remote workers, retirees, or those looking to downsize.
• Growing Job Market: Halifax’s economy is growing, especially in ocean tech, healthcare, and education. Its accessible job market makes it a viable option for many professionals.
• Community and Nature: Halifax’s strong community feel and access to coastal beauty make it an ideal place for Americans seeking a close-knit, friendly city near the sea.

Considerations:
Halifax may not have the same job diversity as larger Canadian cities, so it’s best suited for remote workers, retirees, or those with job offers.

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Each of these Canadian cities offers a unique mix of opportunities, culture, and lifestyle that may appeal to Americans considering relocation. Whether you’re drawn to the metropolitan buzz of Toronto, the outdoor beauty of Vancouver, the European flair of Montreal, the balanced lifestyle of Calgary, the political and cultural richness of Ottawa, or the coastal charm of Halifax, Canada offers diverse and welcoming cities that align with a wide range of priorities and lifestyles.

FAQ: Moving to Canada from the U.S.

TORONTO, Nov. 12, 2024 (GLOBE NEWSWIRE) — Martinrea International Inc. (TSX : MRE), a diversified and global automotive supplier engaged in the design, development and manufacturing of highly engineered, value-added Lightweight Structures and Propulsion Systems, today announced the release of its financial results for the third quarter ended September 30, 2024, and declared a quarterly cash dividend of $0.05 per share.

HIGHLIGHTS

• Third quarter total sales of $1,237.5 million, production sales of $1,167.3 million.
• Third quarter Adjusted EBITDA(1) of $154.1 million, 12.5% of total sales.
• Third quarter Operating Income Margin of 5.3%; Adjusted Operating Income Margin(1) was 5.9% for the nine months ended September 30, 2024.
• Third quarter Free Cash Flow(1) (excluding principal payments of IFRS-16 lease liabilities) was $57.0 million; Free Cash Flow(1) was $107.4 million for the nine months ended September 30, 2024, a notable improvement over $75.5 million generated in the nine months ended September 30, 2023.
• Third quarter diluted net earnings per share of $0.19 or $0.44 per share at a normalized effective tax rate after adjusting for unusual foreign exchange movements between the Mexican Peso against the U.S. dollar. These foreign exchange movements are non-cash in nature, do not impact cash taxes and tend to balance out over time (refer to “Overall Results” section for further details).
• Net Debt-to-Adjusted EBITDA(1) ratio, excluding the impact of IFRS 16, ended the third quarter at 1.46x.
• New business awards of approximately $35 million in annualized sales at mature volumes.
• Quarterly cash dividend of $0.05 per share declared.

OVERVIEW

Pat D’Eramo, Chief Executive Officer, stated: “Our third quarter financial results were solid, and met our internal expectations based on the lower level of industry production volumes in the quarter. Our Free Cash Flow(1) was strong, and our Adjusted EBITDA(1) was solid, with Adjusted EBITDA Margin(1) up year over year. Operationally, we are executing well. We continue to drive efficiency gains and cost savings through our Martinrea Operating System. In addition, we continue to make good progress in commercial negotiations with our customers, obtaining compensation for volume shortfalls on electric vehicle programs and lingering inflationary costs. We are experiencing some further production volume shortfalls in the fourth quarter as OEMs adjust inventories on a number of platforms, some of which are big programs for us. We have been impacted by OEM production shutdowns, often with little to no advance warning, which makes it challenging to properly flex costs. The impact is being felt across all powertrain types, not just electric vehicles. While this will impact our financial performance in the fourth quarter, we expect production volumes to improve beginning in the first quarter of 2025, as inventories adjust. Interest rates, which are coming down in both the U.S. and Canada, with further cuts expected, should help to improve vehicle affordability, which in turn, should lead to higher sales for suppliers.”

He continued: “I am pleased to announce that we have been awarded new business representing $35 million in annualized sales at mature volumes, consisting of $30 million in Lightweight Structures with multiple customers including International Motors (formerly Navistar), BMW, and Nissan, and $5 million in Propulsion Systems, with Audi.”

Peter Cirulis, Chief Financial Officer, stated: “We are pleased with our financial performance in the third quarter. We are driving a healthy level of Free Cash Flow(1) from the business, and our balance sheet is in great shape. Sales for the third quarter, excluding tooling sales of $70.2 million, were $1,167.3 million. Third quarter Adjusted EBITDA was $154.1 million, and Adjusted EBITDA Margin of 12.5% was up 60 basis points year over year. Free Cash Flow(1) (excluding principal payments of IFRS-16 lease liabilities) was $57.0 million in the third quarter, and $107.4 million on a year-to-date basis, a big improvement over the $75.5 million generated in the comparable 2023 period, driven in part by lower capex. On a full year basis, we project that we will come in at the high end of our 2024 Free Cash Flow(1) outlook range of $100 million to $150 million, excluding lease payments, and potentially even better.”

He continued: “Net Debt(1) (excluding IFRS-16 lease liabilities) declined by approximately $32 million quarter over quarter, to $820.1 million, reflecting the Free Cash Flow(1) profile for the quarter. Approximately $9.5 million was spent during the quarter, repurchasing approximately 826,000 shares through our normal course issuer bid. Our-Net-Debt-to-Adjusted EBITDA(1) ratio (excluding the impact of IFRS 16) ended the quarter at 1.46x, in line with our target leverage ratio of 1.5x or better.”

Rob Wildeboer, Executive Chairman, stated: “We are executing well operationally and financially, and allocating capital with a view to maximizing returns for our stakeholders. We have previously mentioned that capital allocation would be balanced between share buybacks and debt reduction. Both are important priorities for us, and we have demonstrated disciplined execution on both fronts, including during the third quarter. In the past year and a half, since our net debt hit an all-time high of $956 million, we have paid down $136 million in debt, repurchased 6.5 million common shares, equal to 8% of shares outstanding, and reduced our Net-Debt-to-Adjusted EBITDA(1) ratio from 1.90x to 1.46x. We believe consistent Free Cash Flow(1) generation is the path to a higher valuation. On behalf of the executive management team, we would like to thank our people for their hard work in delivering a solid quarterly performance, as well as our shareholders and other stakeholders for their continued support.”

RESULTS OF OPERATIONS

All amounts in this press release are in Canadian dollars, unless otherwise stated; and all tabular amounts are in thousands of Canadian dollars, except earnings per share and number of shares. 

Additional information about the Company, including the Company’s Management Discussion and Analysis of Operating Results and Financial Position for the three and nine months ended September 30, 2024 (“MD&A”), the Company’s interim condensed consolidated financial statements for the three and nine months ended September 30, 2024 (the “interim financial statements”) and the Company’s Annual Information Form for the year ended December 31, 2023 can be found at www.sedarplus.ca.     

OVERALL RESULTS

Results of operations may include certain items which have been separately disclosed, where appropriate, in order to provide a clear assessment of the underlying Company results. In addition to IFRS measures, management uses non-IFRS measures in the Company’s disclosures that it believes provide the most appropriate basis on which to evaluate the Company’s results.

The following tables set out certain highlights of the Company’s performance for the three and nine months ended September 30, 2024 and 2023. Refer to the Company’s interim financial statements for the three and nine months ended September 30, 2024 for a detailed account of the Company’s performance for the periods presented in the tables below.

	Three months ended September 30, 2024				Three months ended September 30, 2023				$ Change			% Change
Sales	$	1,237,493			$	1,378,938			(141,445	)		(10.3	%)
Gross Margin		163,350				181,194			(17,844	)		(9.8	%)
Operating Income		65,879				83,015			(17,136	)		(20.6	%)
Net Income for the period		14,157				53,744			(39,587	)		(73.7	%)
Net Earnings per Share – Basic and Diluted	$	0.19			$	0.68			(0.49	)		(72.1	%)
Non-IFRS Measures**
Adjusted Operating Income	$	65,879			$	83,015			(17,136	)		(20.6	%)
% of Sales		5.3	%			6.0	%
Adjusted EBITDA		154,129				163,482			(9,353	)		(5.7	%)
% of Sales		12.5	%			11.9	%
Adjusted Net Income*		14,157				53,744			(39,587	)		(73.7	%)
Adjusted Net Earnings per Share – Basic and Diluted*	$	0.19			$	0.68			(0.49	)		(72.1	%)

	Nine months ended September 30, 2024				Nine months ended September 30, 2023				$ Change			% Change
Sales	$	3,863,199			$	4,043,882			(180,683	)		(4.5	%)
Gross Margin		519,517				522,169			(2,652	)		(0.5	%)
Operating Income		215,019				240,628			(25,609	)		(10.6	%)
Net Income for the period		98,786				151,815			(53,029	)		(34.9	%)
Net Earnings per Share – Basic and Diluted	$	1.30			$	1.90			(0.60	)		(31.6	%)
Non-IFRS Measures**
Adjusted Operating Income	$	226,629			$	240,628			(13,999	)		(5.8	%)
% of Sales		5.9	%			6.0	%
Adjusted EBITDA		483,098				476,598			6,500			1.4	%
% of Sales		12.5	%			11.8	%
Adjusted Net Income*		106,637				147,241			(40,604	)		(27.6	%)
Adjusted Net Earnings per Share – Basic and Diluted*	$	1.40			$	1.84			(0.44	)		(23.9	%)

*Adjusted Net Income and Adjusted Net Earnings per Share for the three and nine months ended September 30, 2024 were negatively impacted by an unusually high effective tax rate. This was driven primarily by the magnitude and pace of the depreciation of the Mexican Peso against the U.S. dollar, which is the functional currency of the Company’s Mexican operations. In situations where the local and functional currencies differ, IFRS, contrary to US GAAP, requires the tax value of assets and liabilities denominated in local currency to be revalued to the operations’ functional currency at the reporting date, with the related foreign exchange movements impacting the tax expense for the period. These foreign exchange movements are non-cash in nature, do not impact cash taxes and tend to balance out over time. Including this, and other foreign exchange related items, the effective tax rate for the nine months ended September 30, 2024 was 38.8%. Excluding these foreign exchange items, the effective tax rate would have been 31.0%, which is more reflective of a typical tax rate for the Company. Using a tax rate of 31.0%, Adjusted Net Earnings per Share would have been $0.44 for the three months ended September 30, 2024, and $1.47 for the nine months ended September 30, 2024.

**Non-IFRS Measures

The Company prepares its interim financial statements in accordance with IFRS. However, the Company considers certain non-IFRS financial measures as useful additional information in measuring the financial performance and condition of the Company. These measures, which the Company believes are widely used by investors, securities analysts and other interested parties in evaluating the Company’s performance, do not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similarly titled measures presented by other publicly traded companies, nor should they be construed as an alternative to financial measures determined in accordance with IFRS. Non-IFRS measures include “Adjusted Net Income”, “Adjusted Net Earnings per Share (on a basic and diluted basis)”, “Adjusted Operating Income”, “Adjusted EBITDA”, “Free Cash Flow”, “Free Cash Flow (after IFRS 16 lease payments)”, and “Net Debt”.

The following tables provide a reconciliation of IFRS “Net Income” to Non-IFRS “Adjusted Net Income”, “Adjusted Operating Income” and “Adjusted EBITDA”:

	Three months ended September 30, 2024			Three months ended September 30, 2023
Net Income	$	14,157		$	53,744
Adjustments, after tax*		–			–
Adjusted Net Income	$	14,157		$	53,744

	Nine months ended September 30, 2024			Nine months ended September 30, 2023
Net Income	$	98,786		$	151,815
Adjustments, after tax*		7,851			(4,574	)
Adjusted Net Income	$	106,637		$	147,241

*Adjustments are explained in the “Adjustments to Net Income” section of this Press Release

	Three months ended September 30, 2024				Three months ended September 30, 2023
Net Income	$	14,157			$	53,744
Income tax expense		33,276				14,713
Other finance income		(1,084	)			(7,418	)
Share of loss of equity investments		690				600
Finance expense		18,840				21,376
Adjustments, before tax*		–				–
Adjusted Operating Income	$	65,879			$	83,015
Depreciation of property, plant and equipment and right-of-use assets		84,904				77,837
Amortization of development costs		3,084				2,488
Loss on disposal of property, plant and equipment		262				142
Adjusted EBITDA	$	154,129			$	163,482

	Nine months ended September 30, 2024				Nine months ended September 30, 2023
Net Income	$	98,786			$	151,815
Income tax expense		63,725				38,422
Other finance income		(8,140	)			(7,074	)
Share of loss of equity investments		2,147				2,630
Finance expense		58,501				60,108
Adjustments, before tax*		11,610				(5,273	)
Adjusted Operating Income	$	226,629			$	240,628
Depreciation of property, plant and equipment and right-of-use assets		246,808				228,041
Amortization of development costs		8,172				7,771
Loss on disposal of property, plant and equipment		1,489				158
Adjusted EBITDA	$	483,098			$	476,598

*Adjustments are explained in the “Adjustments to Net Income” section of this Press Release

SALES

Three months ended September 30, 2024 to three months ended September 30, 2023 comparison

	Three months ended September 30, 2024				Three months ended September 30, 2023				$ Change			% Change
North America	$	960,256			$	1,042,218			(81,962	)		(7.9	%)
Europe		250,499				302,145			(51,646	)		(17.1	%)
Rest of the World		33,638				42,644			(9,006	)		(21.1	%)
Eliminations		(6,900	)			(8,069	)		1,169			14.5	%
Total Sales	$	1,237,493			$	1,378,938			(141,445	)		(10.3	%)

The Company’s consolidated sales for the third quarter of 2024 decreased by $141.4 million or 10.3% to $1,237.5 million as compared to $1,378.9 million for the third quarter of 2023. The total decrease in sales was driven by year-over-year decreases across all operating segments.

Sales for the third quarter of 2024 in the Company’s North America operating segment decreased by $82.0 million or 7.9% to $960.3 million from $1,042.2 million for the third quarter of 2023. The decrease was due to a decrease in tooling sales of $47.5 million, which are typically dependent on the timing of tooling construction and final acceptance by the customer; programs that ended production during or subsequent to the third quarter of 2023, specifically the Ford Edge, Dodge Charger/Challenger, and Chevrolet Bolt; and lower year-over-year OEM production volumes on certain platforms, including the Jeep Grand Cherokee and Wagoneer, an engine block for Stellantis, and the Ford Mustang Mach E. These negative factors were partially offset by the launch and ramp up of new programs during or subsequent to the third quarter of 2023, including General Motors’ new electric vehicle platforms (BEV3/BET), and the Toyota Tacoma; higher year-over-year OEM production volumes on certain other light vehicle platforms, including General Motors’ large pick-up truck and SUV platform, and the Ford Maverick; and the impact of foreign exchange on the translation of U.S. denominated production sales, which had a positive impact on overall sales for the third quarter of 2024 of $21.1 million. Overall third quarter industry-wide OEM light vehicle production volumes in North America decreased by approximately 5% year-over-year.

Sales for the third quarter of 2024 in the Company’s Europe operating segment decreased by $51.6 million or 17.1% to $250.5 million from $302.1 million for the third quarter of 2023. The decrease was due to lower year-over-year OEM production volumes on certain platforms, including aluminum engine blocks for Ford and Mercedes, and the Mercedes’ new electric vehicle platform (EVA2); programs that ended production during or subsequent to the third quarter of 2023, specifically the BMW Mini; and a decrease in tooling sales of $8.8 million, which are typically dependent of the timing of tooling construction and final acceptance by the customer. These negative factors were partially offset by higher year-over-year OEM production volumes on certain platforms, including the Lucid Air, and an aluminum engine block for Jaguar Land Rover; and the impact of foreign exchange on the translation of Euro denominated production sales, which had a positive impact on overall sales for the third quarter of 2024 of $4.8 million. Overall third quarter industry-wide OEM light vehicle production volumes in Europe decreased by approximately 6% year-over-year.

Sales for the third quarter of 2024 in the Company’s Rest of the World operating segment decreased by $9.0 million or 21.1% to $33.6 million from $42.6 million in the third quarter of 2023. The decrease was largely driven by programs that came with the operations acquired from Metalsa in China that ended production during or subsequent to the third quarter of 2023, lower year-over-year production volumes on the Cadillac CT6 vehicle platform in China, and a decrease in tooling sales of $2.0 million; partially offset by the launch and ramp up of new programs, specifically the BMW 5-series in China.

Overall tooling sales decreased by $58.3 million (including outside segment sales eliminations) to $70.2 million for the third quarter of 2024 from $128.6 million for the third quarter of 2023.

Nine months ended September 30, 2024 to nine months ended September 30, 2023 comparison

	Nine months ended September 30, 2024				Nine months ended September 30, 2023				$ Change			% Change
North America	$	2,908,778			$	3,063,277			(154,499	)		(5.0	%)
Europe		871,469				893,638			(22,169	)		(2.5	%)
Rest of the World		102,600				113,092			(10,492	)		(9.3	%)
Eliminations		(19,648	)			(26,125	)		6,477			24.8	%
Total Sales	$	3,863,199			$	4,043,882			(180,683	)		(4.5	%)

The Company’s consolidated sales for the nine months ended September 30, 2024 decreased by $180.7 million or 4.5% to $3,863.2 million as compared to $4,043.9 million for the nine months ended September 30, 2023. The total decrease in sales was driven by year-over-year decreases across all operating segments.

Sales for the nine months ended September 30, 2024 in the Company’s North America operating segment decreased by $154.5 million or 5.0% to $2,908.8 million from $3,063.3 million for the nine months ended September 30, 2023. The decrease was due generally to a decrease in tooling sales of $154.2 million which are typically dependent on the timing of tooling construction and final acceptance by the customer; programs that ended production during or subsequent to the corresponding period of 2023, specifically the Dodge Charger/Challenger, the Ford Edge, and Chevrolet Bolt; and lower year-over-year OEM production volumes on certain platforms, including an engine block for Stellantis, the Jeep Grand Cherokee and Wagoneer, the Ford Mustang Mach E, and Mercedes’ new electric vehicle platform (EVA2). These negative factors were partially offset by the launch and ramp up of new programs, including General Motors’ new electric vehicle platforms (BEV3/BET), and the Toyota Tacoma; higher year-over-year production volumes of certain light vehicle platforms including the Ford Escape and Maverick, and General Motors’ large pick-up truck and SUV platform; and the impact of foreign exchange on the translation of U.S. denominated production sales, which had a positive impact on overall sales for the nine months ended September 30, 2024 of $26.1 million.

Sales for the nine months ended September 30, 2024 in the Company’s Europe operating segment decreased by $22.2 million or 2.5% to $871.5 million from $893.6 million for the nine months ended September 30, 2023. The decrease was due to programs that ended production during or subsequent to the corresponding period of 2023, specifically the BMW Mini; and lower year-over-year production volumes of certain other light vehicle platforms, including the Mercedes’ new electric vehicle platform (EVA2) and aluminum engine blocks for Ford and Mercedes. These negative factors were partially offset by higher year-over-year OEM production volumes on certain platforms, including an aluminum engine block for Jaguar Land Rover; an increase in tooling sales of $21.0 million, which are typically dependent on the timing of tooling construction and final acceptance by the customer; and the impact of foreign exchange on the translation of Euro denominated production sales, which had a positive impact on overall sales for the nine months ended September 30, 2024 of $9.9 million.

Sales for the nine months ended September 30, 2024 in the Company’s Rest of the World operating segment decreased by $10.5 million or 9.3% to $102.6 million from $113.1 million for the nine months ended September 30, 2023. The decrease was largely driven by programs that came with the operations acquired from Metalsa in China that ended production during or subsequent to the nine months ended September 30, 2023, and lower year-over-year production volumes on the Cadillac CT6 vehicle platform in China; partially offset by the launch and ramp up of new programs, specifically the BMW 5-series in China, and an increase in tooling sales of $4.0 million.

Overall tooling sales decreased by $128.1 million (including outside segment sales eliminations) to $174.7 million for the nine months ended September 30, 2024 from $302.8 million for the nine months ended September 30, 2023.

GROSS MARGIN

Three months ended September 30, 2024 to three months ended September 30, 2023 comparison

	Three months ended September 30, 2024				Three months ended September 30, 2023				$ Change			% Change
Gross margin	$	163,350			$	181,194			(17,844	)		(9.8	%)
% of Sales		13.2	%			13.1	%

The gross margin percentage for the third quarter of 2024 of 13.2% increased slightly as a percentage of sales as compared to the gross margin percentage for the third quarter of 2023 of 13.1% due to:

• productivity and efficiency improvements at certain operating facilities and other improvements; and
• a decrease in tooling sales which typically earn low margin for the Company.

These factors were essentially offset by:

• overall lower production sales volume and corresponding contribution;
• operational inefficiencies at certain operating facilities; and
• a negative sales mix, including additional depreciation expense from recent new program investments.

Overall market related inflationary pressures on labour, material and energy costs, along with offsetting commercial settlements, were generally stable for the quarter on a year-over-year basis.

Nine months ended September 30, 2024 to nine months ended September 30, 2023 comparison

	Nine months ended September 30, 2024				Nine months ended September 30, 2023				$ Change			% Change
Gross margin	$	519,517			$	522,169			(2,652	)		(0.5	%)
% of Sales		13.4	%			12.9	%

The gross margin percentage for the nine months ended September 30, 2024 of 13.4% increased as a percentage of sales by 0.5% as compared to the gross margin percentage for the nine months ended September 30, 2023 of 12.9%. The increase in gross margin as a percentage of sales was generally due to:

• productivity and efficiency improvements at certain operating facilities and other improvements; and
• a decrease in tooling sales which typically earn low margin for the Company.

These factors were partially offset by:

• operational inefficiencies at certain other operating facilities;
• overall lower production sales volume and corresponding contribution;
• an unfavourable impact from a year-over-year change in foreign exchange rates in Mexico; and
• a negative sales mix, including additional depreciation expense from recent new program investments.

Overall market related inflationary pressures on labour, material and energy costs, along with offsetting commercial settlements, were generally stable year-over-year.

ADJUSTMENTS TO NET INCOME

Adjusted Net Income excludes certain items as set out in the following tables and described in the notes thereto. Management uses Adjusted Net Income as a measurement of operating performance of the Company and believes that, in conjunction with IFRS measures, it provides useful information about the financial performance and condition of the Company.

TABLE A

Three months ended September 30, 2024 to three months ended September 30, 2023 comparison

No adjustments were noted during the three months ended September 30, 2024 and 2023.

TABLE B

Nine months ended September 30, 2024 to nine months ended September 30, 2023 comparison

	Nine months ended September 30, 2024				Nine months ended September 30, 2023				$ Change
NET INCOME	$	98,786			$	151,815			$	(53,029	)
Adjustments:
Restructuring costs (1)		11,610				–				11,610
Net gain on disposal of equity investments (2)		–				(5,273	)			5,273
ADJUSTMENTS, BEFORE TAX	$	11,610			$	(5,273	)		$	16,883
Tax impact of adjustments		(3,759	)			699				(4,458	)
ADJUSTMENTS, AFTER TAX	$	7,851			$	(4,574	)		$	12,425
ADJUSTED NET INCOME	$	106,637			$	147,241			$	(40,604	)
Number of Shares Outstanding – Basic (‘000)		76,191				79,933
Adjusted Basic Net Earnings Per Share	$	1.40			$	1.84
Number of Shares Outstanding – Diluted (‘000)		76,194				79,989
Adjusted Diluted Net Earnings Per Share	$	1.40			$	1.84

(1)   Restructuring costs

Additions to the restructuring provision during the nine months ended September 30, 2024 totaled $11.6 million and represent employee-related severance resulting from the rightsizing of certain operations in Germany, Mexico, Canada, and the United States.

(2)   Net gain on disposal of equity investments

On March 24, 2023, Martinrea sold its equity interest in VoltaXplore Inc. (“VoltaXplore) to NanoXplore Inc. (“NanoXplore”) for 3,420,406 common shares of NanoXplore at $2.92 per share representing an aggregate consideration of $10.0 million. The sale transaction resulted in a gain on disposal of equity investments during the first quarter of 2023 as follows:

Gross gain (Total consideration of $10.0 million less book value of investment)	$	6,821
Less: gain attributable to indirect retained interest		(1,548	)
Net gain on disposal of equity investments	$	5,273

Subsequent to this transaction, the Company no longer holds a direct equity interest in VoltaXplore while its equity ownership interest in NanoXplore increased from 21.1% to 22.7%.

NET INCOME

Three months ended September 30, 2024 to three months ended September 30, 2023 comparison

	Three months ended September 30, 2024			Three months ended September 30, 2023			$ Change			% Change
Net Income	$	14,157		$	53,744		(39,587	)		(73.7	%)
Net Earnings per Share
Basic and Diluted	$	0.19		$	0.68

Net Income for the third quarter of 2024 decreased by $39.6 million to $14.2 million or $0.19 per share, on a basic and diluted basis, from Net Income of $53.7 million or $0.68 per share, on a basic and diluted basis, for the third quarter of 2023.

Net Income for the third quarter of 2024, as compared to the third quarter of 2023, was negatively impacted by the following:

• lower gross margin from lower year-over-year sales volume;
• a net foreign exchange gain of $1.3 million for the third quarter of 2024 compared to a gain of $7.1 million for the third quarter of 2023; and
• a higher effective tax rate (70.2% for the third quarter of 2024 compared to 21.5% for the third quarter of 2023) driven primarily by the IFRS accounting treatment of the rapid depreciation of the Mexican Peso against the U.S. dollar that does not impact cash.

These factors were partially offset by the following:

• a year-over-year decrease in SG&A expense, as previously explained; and
• a $2.5 million year-over-year decrease in finance expense as a result of lower borrowing rates on the Company’s revolving bank debt.

Nine months ended September 30, 2024 to nine months ended September 30, 2023 comparison

	Nine months ended September 30, 2024			Nine months ended September 30, 2023			$ Change			% Change
Net Income	$	98,786		$	151,815		(53,029	)		(34.9	%)
Adjusted Net Income		106,637			147,241		(40,604	)		(27.6	%)
Net Earnings per Share
Basic and Diluted	$	1.30		$	1.90
Adjusted Net Earnings per Share
Basic and Diluted	$	1.40		$	1.84

Net Income, before adjustments, for the nine months ended September 30, 2024 decreased by $53.0 million to $98.8 million or $1.30 per share, on a basic and diluted basis, from Net Income of $151.8 million or $1.90 per share, on a basic and diluted basis, for the nine months ended September 30, 2023. Excluding the adjustments explained in Table B under “Adjustments to Net Income”, Adjusted Net Income for the nine months ended September 30, 2024 decreased by $40.6 million to $106.6 million or $1.40 per share on a basic and diluted basis, from $147.2 million or $1.84 per share on a basic and diluted basis, for the nine months ended September 30, 2023.

Adjusted Net Income for the nine months ended September 30, 2024, as compared to the nine months ended September 30, 2023, was negatively impacted by the following:

• a year-over-year increase in SG&A expense, as previously explained;
• a $3.8 million year-over-year increase in research and development costs driven generally by increased new product and process development activity;
• lower gross margin on lower year-over-year sales volume;
• a $1.5 million loss on the disposal of property, plant and equipment for the nine months ended September 30, 2024; and
• a higher effective tax rate (38.8% for the nine months ended September 30, 2024 compared to 20.4% for the nine months ended September 30, 2023) driven primarily by the IFRS accounting treatment of the rapid depreciation of the Mexican Peso against the U.S. dollar that does not impact cash.

These factors were partially offset by the following:

• a net foreign exchange gain of $8.1 million for the nine months ended September 30, 2024 compared to a gain of $6.5 million for the nine months ended September 30, 2023; and
• a $1.6 million year-over-year decrease in finance expense as a result of lower borrowing rates on the Company’s revolving bank debt.

Adjusted Net Income and Adjusted Net Earnings per Share for the three and nine months ended September 30, 2024 were negatively impacted by an unusually high effective tax rate. This was driven primarily by the magnitude and pace of the depreciation of the Mexican Peso against the U.S. dollar, which is the functional currency of the Company’s Mexican operations. In situations where the local and functional currencies differ, IFRS, contrary to US GAAP, requires the tax value of assets and liabilities denominated in local currency to be revalued to the operations’ functional currency at the reporting date, with the related foreign exchange movements impacting the tax expense for the period. These foreign exchange movements are non-cash in nature, do not impact cash taxes and tend to balance out over time. Including this, and other foreign exchange related items, the effective tax rate for the nine months ended September 30, 2024 was 38.8%. Excluding these foreign exchange items, the effective tax rate would have been 31.0%, which is more reflective of a typical tax rate for the Company. Using a tax rate of 31.0%, Adjusted Net Earnings per Share would have been $0.44 for the three months ended September 30, 2024, and $1.47 for the nine months ended September 30, 2024.

DIVIDEND

A cash dividend of $0.05 per share has been declared by the Board of Directors payable to shareholders of record on December 31, 2024, on or about January 15, 2025.

ABOUT MARTINREA

Martinrea International Inc. is a leader in the development and production of quality metal parts, assemblies and modules, fluid management systems, and complex aluminum products focused primarily on the automotive sector. Martinrea currently operates in 56 locations in Canada, the United States, Mexico, Brazil, Germany, Slovakia, Spain, China, South Africa, and Japan. Martinrea’s vision is making lives better by being the best supplier we can be in the products we make and the services we provide. For more information on Martinrea, please visit www.martinrea.com. Follow Martinrea on X and Facebook.

CONFERENCE CALL DETAILS

A conference call to discuss the financial results will be held on Tuesday, November 12, 2024 at 5:30 p.m. Eastern Time. To participate, please dial 416-641-6104 (Toronto area) or 800-952-5114 (toll free Canada and US) and enter participant code 1624622#. Please call 10 minutes prior to the start of the conference call.

The conference call will also be webcast live in listen‐only mode and archived for twelve months. The webcast and accompanying presentation can be accessed at: https://www.martinrea.com/investor-relations/events-presentations/.

There will also be a rebroadcast of the call available by dialing 905-694-9451 or toll free 800-408-3053 (Conference ID – 9076430#). The rebroadcast will be available until December 14, 2024 at 5:00 p.m.

If you have any teleconferencing questions, please call Ganesh Iyer at 416-749-0314.

FORWARD-LOOKING INFORMATION

Special Note Regarding Forward-Looking Statements

This Press Release and the documents incorporated by reference therein contains forward-looking statements within the meaning of applicable Canadian securities laws including those related to the Company’s expectations as to, or its views or beliefs in or on, the impact of, or duration of, or factors affecting, or expected response to or growth of, improvements in, expansion of and/or guidance or outlook (including for 2024) as to future results, revenue, sales, margin, gross margin, earnings, and earnings per share, adjusted earnings per share, free cash flow, volumes, adjusted net earnings per share, operating income margins, operating margins, adjusted operating income margins, leverage ratios, net debt to adjusted EBITDA(1), debt repayment, Adjusted EBITDA(1), improvements in interest rates, tax rates, supply constraints, inflation and labour, the growth of the Company and pursuit of, and belief in, its strategies, the strength, recovery and growth of the automotive industry and continuing challenges, capital allocation strategies, contemplated purchases under the NCIB, as well as other forward-looking statements. The words “continue”, “expect”, “anticipate”, “estimate”, “may”, “will”, “should”, “views”, “intend”, “believe”, “plan” and similar expressions are intended to identify forward-looking statements. Forward-looking statements are based on estimates and assumptions made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors that the Company believes are appropriate in the circumstances, such as expected sales and industry production estimates, current foreign exchange rates, timing of product launches and operational improvement during the period, and current Board approved budgets. Many factors could cause the Company’s actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, the following factors, some of which are discussed in detail in the Company’s AIF and MD&A for the year ended December 31, 2023, and other public filings which can be found at www.sedarplus.ca:   

• North American and Global Economic and Political Conditions (including war) and Consumer Confidence
• Automotive Industry Risks
• Pandemics and Epidemics, Force Majeure Events, Natural Disasters, Terrorist Activities, Political and Civil Unrest or War, and Other Outbreaks
• Russia and Ukraine War and Hamas-Israel War
• Semiconductor Chip Shortages and Price Increases
• Inflationary Pressures
• Regional Energy Shortages
• Dependence Upon Key Customers
• Customer Consolidation and Cooperation
• Emergence of Potentially Disruptive EV OEMs
• Outsourcing and Insourcing Trends
• Financial Viability of Suppliers and Key Suppliers and Supply Disruptions
• Competition
• Customer Pricing Pressures, Contractual Arrangements, Cost and Risk Absorption and Purchase Orders
• Material and Commodity Prices and Volatility
• Scrap Steel/Aluminum Price Volatility
• Quote/Pricing Assumptions
• Launch and Operational Costs and Cost Structure
• Fluctuations in Operating Results
• Product Warranty, Repair/Replacement Costs, Recall, Product Liability and Liability Risk
• Product Development and Technological Change
• A Shift Away from Technologies in Which the Company is Investing
• Dependence Upon Key Personnel
• Limited Financial Resources/Uncertainty of Future Financing/Banking
• Cybersecurity Threats
• Acquisitions
• Joint Ventures
• Private or Public Equity Investments in Technology Companies
• Potential Tax Exposures
• Potential Rationalization Costs, Turnaround Costs and Impairment Charges
• Labour Relations Matters
• Trade Restrictions or Disputes
• Changes in Laws and Governmental Regulations
• Environmental Regulation and Climate Change
• Litigation and Regulatory Compliance and Investigations
• Risks of Conducting Business in Foreign Countries, Including China, Brazil and Other Growing Markets
• Currency Risk
• Internal Controls Over Financial Reporting and Disclosure Controls and Procedures
• Loss of Use of Key Manufacturing Facilities
• Intellectual Property
• Availability of Consumer Credit or Cost of Borrowing
• Evolving Business Risk Profile
• Competition with Low Cost Countries
• The Company’s Ability to Shift its Manufacturing Footprint to Take Advantage of Opportunities in Growing Markets
• Change in the Company’s Mix of Earnings Between Jurisdictions with Lower Tax Rates and Those with Higher Tax Rates
• Pension Plans and Other Post-Employment Benefits
• Potential Volatility of Share Prices
• Dividends
• Lease Obligations           

These factors should be considered carefully, and readers should not place undue reliance on the Company’s forward-looking statements.  The Company has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

The common shares of Martinrea trade on The Toronto Stock Exchange under the symbol “MRE”.

For further information, please contact:

Peter Cirulis

Chief Financial Officer

Martinrea International Inc.

3210 Langstaff Road

Vaughan, Ontario L4K 5B2

Tel:   416-749-0314

Fax: 289-982-3001

---

1 The Company prepares its financial statements in accordance with IFRS Accounting Standards (“IFRS”). However, the Company considers certain non-IFRS financial measures as useful additional information in measuring the financial performance and condition of the Company. These measures, which the Company believes are widely used by investors, securities analysts and other interested parties in evaluating the Company’s performance, do not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similarly titled measures presented by other publicly traded companies, nor should they be construed as an alternative to financial measures determined in accordance with IFRS. Non-IFRS measures, included anywhere in this press release, include “Adjusted Net Income”, “Adjusted Net Earnings per Share (on a basic and diluted basis)”, “Adjusted Operating Income”, “Adjusted EBITDA”, “Free Cash Flow”, “Free Cash-Flow (after IFRS 16 lease payments)” and “Net Debt”. The relevant IFRS financial measure, as applicable, and a reconciliation of certain non-IFRS financial measures to measures determined in accordance with IFRS are contained in the Company’s Management Discussion and Analysis for the three and nine months ended September 30, 2024 and in this press release.

Martinrea International Inc.

Interim Condensed Consolidated Balance Sheets

(in thousands of Canadian dollars) (unaudited)

	Note	September 30, 2024		December 31, 2023
ASSETS
Cash and cash equivalents		$	177,267	$	186,804
Trade and other receivables	2		801,012		695,819
Inventories	3		564,558		568,274
Prepaid expenses and deposits			35,611		33,904
Income taxes recoverable			35,644		11,089
TOTAL CURRENT ASSETS			1,614,092		1,495,890
Property, plant and equipment	4		1,945,783		1,943,771
Right-of-use assets	5		224,230		238,552
Deferred tax assets			193,175		192,301
Intangible assets			40,193		42,743
Investments	6		66,124		60,170
Pension assets			17,046		16,303
TOTAL NON-CURRENT ASSETS			2,486,551		2,493,840
TOTAL ASSETS		$	4,100,643	$	3,989,730
LIABILITIES
Trade and other payables		$	1,185,482	$	1,176,579
Provisions	7		8,843		29,892
Income taxes payable			52,364		25,017
Current portion of long-term debt	8		11,290		12,778
Current portion of lease liabilities	9		52,177		48,507
TOTAL CURRENT LIABILITIES			1,310,156		1,292,773
Long-term debt	8		986,063		956,458
Lease liabilities	9		192,233		210,469
Pension and other post-retirement benefits			40,055		37,261
Deferred tax liabilities			26,059		27,588
TOTAL NON-CURRENT LIABILITIES			1,244,410		1,231,776
TOTAL LIABILITIES			2,554,566		2,524,549
EQUITY
Capital stock	11		611,101		645,256
Contributed surplus			45,950		45,903
Accumulated other comprehensive income			139,934		95,753
Retained earnings			749,092		678,269
TOTAL EQUITY			1,546,077		1,465,181
TOTAL LIABILITIES AND EQUITY		$	4,100,643	$	3,989,730

Contingencies (note 16)

Subsequent event (note 18)

See accompanying notes to the interim condensed consolidated financial statements.

On behalf of the Board:

“Robert Wildeboer”	Director
“Terry Lyons”	Director

Martinrea International Inc.

Interim Condensed Consolidated Statements of Operations

(in thousands of Canadian dollars, except per share amounts) (unaudited)

	Note	Three months ended September 30, 2024			Three months ended September 30, 2023			Nine months ended September 30, 2024			Nine months ended September 30, 2023
SALES		$	1,237,493		$	1,378,938		$	3,863,199		$	4,043,882
Cost of sales (excluding depreciation of property, plant and equipment and right-of-use assets)			(993,212	)		(1,124,326	)		(3,109,104	)		(3,306,836	)
Depreciation of property, plant and equipment and right-of-use assets (production)			(80,931	)		(73,418	)		(234,578	)		(214,877	)
Total cost of sales			(1,074,143	)		(1,197,744	)		(3,343,682	)		(3,521,713	)
GROSS MARGIN			163,350			181,194			519,517			522,169
Research and development costs			(10,852	)		(9,628	)		(32,037	)		(28,257	)
Selling, general and administrative			(82,384	)		(83,990	)		(247,132	)		(239,962	)
Depreciation of property, plant and equipment and right-of-use assets (non-production)			(3,973	)		(4,419	)		(12,230	)		(13,164	)
Loss on disposal of property, plant and equipment			(262	)		(142	)		(1,489	)		(158	)
Restructuring costs	7		–			–			(11,610	)		–
OPERATING INCOME			65,879			83,015			215,019			240,628
Share of loss of equity investments	6		(690	)		(600	)		(2,147	)		(2,630	)
Net gain on disposal of equity investments			–			–			–			5,273
Finance expense	13		(18,840	)		(21,376	)		(58,501	)		(60,108	)
Other finance income	13		1,084			7,418			8,140			7,074
INCOME BEFORE INCOME TAXES			47,433			68,457			162,511			190,237
Income tax expense	10		(33,276	)		(14,713	)		(63,725	)		(38,422	)
NET INCOME FOR THE PERIOD		$	14,157		$	53,744		$	98,786		$	151,815
Basic earnings per share	12	$	0.19		$	0.68		$	1.30		$	1.90
Diluted earnings per share	12	$	0.19		$	0.68		$	1.30		$	1.90

See accompanying notes to the interim condensed consolidated financial statements.

Martinrea International Inc.

Interim Condensed Consolidated Statements of Comprehensive Income

(in thousands of Canadian dollars) (unaudited)

	Three months ended September 30, 2024			Three months ended September 30, 2023		Nine months ended September 30, 2024			Nine months ended September 30, 2023
NET INCOME FOR THE PERIOD	$	14,157		$	53,744	$	98,786		$	151,815
Other comprehensive income (loss), net of tax:
Items that may be reclassified to net income
Foreign currency translation differences for foreign operations		(1,472	)		28,682		44,206			(2,345	)
Items that will not be reclassified to net income
Share of other comprehensive income (loss) of equity investments (note 6)		14			14		(25	)		(4	)
Remeasurement of defined benefit plans		322			3,184		(814	)		5,630
Other comprehensive income (loss), net of tax		(1,136	)		31,880		43,367			3,281
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD	$	13,021		$	85,624	$	142,153		$	155,096

See accompanying notes to the interim condensed consolidated financial statements.

Martinrea International Inc.

Interim Condensed Consolidated Statements of Changes in Equity

(in thousands of Canadian dollars) (unaudited)

	Capital stock			Contributed surplus			Accumulated other comprehensive income			Retained earnings			Total equity
BALANCE AT DECEMBER 31, 2022	$	663,646		$	45,558		$	124,065		$	543,636		$	1,376,905
Net income for the period		–			–			–			151,815			151,815
Compensation expense related to stock options		–			331			–			–			331
Dividends ($0.15 per share)		–			–			–			(11,939	)		(11,939	)
Exercise of employee stock options		358			(97	)		–			–			261
Repurchase of common shares (note 11)		(13,370	)		–			–			(7,474	)		(20,844	)
Other comprehensive income (loss) net of tax
Remeasurement of defined benefit plans		–			–			–			5,630			5,630
Foreign currency translation differences		–			–			(2,345	)		–			(2,345	)
Share of other comprehensive loss of equity investments		–			–			(4	)		–			(4	)
BALANCE AT SEPTEMBER 30, 2023		650,634			45,792			121,716			681,668			1,499,810
Net income for the period		–			–			–			1,850			1,850
Compensation expense related to stock options		–			111			–			–			111
Dividends ($0.05 per share)		–			–			–			(3,907	)		(3,907	)
Repurchase of common shares (note 11)		(5,378	)		–			–			(2,847	)		(8,225	)
Other comprehensive income (loss) net of tax
Remeasurement of defined benefit plans		–			–			–			1,505			1,505
Foreign currency translation differences		–			–			(25,949	)		–			(25,949	)
Share of other comprehensive loss of equity investments		–			–			(14	)		–			(14	)
BALANCE AT DECEMBER 31, 2023		645,256			45,903			95,753			678,269			1,465,181
Net income for the period		–			–			–			98,786			98,786
Compensation expense related to stock options		–			127			–			–			127
Dividends ($0.15 per share)		–			–			–			(11,281	)		(11,281	)
Exercise of employee stock options		350			(80	)		–			–			270
Repurchase of common shares (note 11)		(34,505	)		–			–			(15,868	)		(50,373	)
Other comprehensive income (loss) net of tax
Remeasurement of defined benefit plans		–			–			–			(814	)		(814	)
Foreign currency translation differences		–			–			44,206			–			44,206
Share of other comprehensive loss of equity investments		–			–			(25	)		–			(25	)
BALANCE AT SEPTEMBER 30, 2024	$	611,101		$	45,950		$	139,934		$	749,092		$	1,546,077

See accompanying notes to the interim condensed consolidated financial statements.

Martinrea International Inc.

Interim Condensed Consolidated Statements of Cash Flows

(in thousands of Canadian dollars) (unaudited)

	Three months ended September 30, 2024			Three months ended September 30, 2023			Nine months ended September 30, 2024			Nine months ended September 30, 2023
CASH PROVIDED BY (USED IN):
OPERATING ACTIVITIES:
Net income for the period	$	14,157		$	53,744		$	98,786		$	151,815
Adjustments for:
Depreciation of property, plant and equipment and right-of-use assets		84,904			77,837			246,808			228,041
Amortization of development costs		3,084			2,488			8,172			7,771
Unrealized loss (gain) on foreign exchange forward contracts		(4,382	)		298			(913	)		215
Finance expense		18,840			21,376			58,501			60,108
Income tax expense		33,276			14,713			63,725			38,422
Loss on disposal of property, plant and equipment		262			142			1,489			158
Deferred and restricted share units expense		2,893			2,294			6,261			9,505
Stock options expense		43			110			127			331
Share of loss of equity investments		690			600			2,147			2,630
Net gain on disposal of equity investments		–			–			–			(5,273	)
Pension and other post-retirement benefits expense		571			693			1,702			2,087
Contributions made to pension and other post-retirement benefits		(489	)		(666	)		(1,657	)		(1,886	)
		153,849			173,629			485,148			493,924
Changes in non-cash working capital items:
Trade and other receivables		(2,739	)		(1,108	)		(87,575	)		(128,104	)
Inventories		12,159			25,395			15,897			23,500
Prepaid expenses and deposits		(2,163	)		(2,854	)		(1,226	)		2,595
Trade, other payables and provisions		(5,529	)		(5,741	)		(17,128	)		73,577
		155,577			189,321			395,116			465,492
Interest paid		(21,839	)		(25,278	)		(65,306	)		(73,041	)
Income taxes paid		(1,849	)		(10,839	)		(50,533	)		(74,622	)
NET CASH PROVIDED BY OPERATING ACTIVITIES	$	131,889		$	153,204		$	279,277		$	317,829
FINANCING ACTIVITIES:
Increase (decrease) in long-term debt (net of deferred financing fees)		(29,094	)		(27,011	)		18,847			8,320
Equipment loan repayments		(1,329	)		(3,895	)		(5,899	)		(12,471	)
Principal payments of lease liabilities		(13,096	)		(11,845	)		(38,852	)		(34,732	)
Dividends paid		(3,743	)		(3,981	)		(11,489	)		(12,019	)
Exercise of employee stock options		–			–			270			261
Repurchase of common shares		(9,471	)		(10,804	)		(49,393	)		(20,844	)
NET CASH USED IN FINANCING ACTIVITIES	$	(56,733	)	$	(57,536	)	$	(86,516	)	$	(71,485	)
INVESTING ACTIVITIES:
Purchase of property, plant and equipment (excluding capitalized interest)*		(80,814	)		(62,444	)		(191,681	)		(222,300	)
Capitalized development costs		(1,457	)		(1,397	)		(4,601	)		(5,598	)
Increase in investments (note 6)		–			–			(8,130	)		(1,000	)
Proceeds on disposal of property, plant and equipment		4,122			16			5,311			402
NET CASH USED IN INVESTING ACTIVITIES	$	(78,149	)	$	(63,825	)	$	(199,101	)	$	(228,496	)
Effect of foreign exchange rate changes on cash and cash equivalents		(1,178	)		1,127			(3,197	)		(778	)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(4,171	)		32,970			(9,537	)		17,070
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		181,438			145,755			186,804			161,655
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	177,267		$	178,725		$	177,267		$	178,725

*As at September 30, 2024, $46,104 (December 31, 2023 – $75,800) of purchases of property, plant and equipment remain unpaid and are recorded in trade and other payables.

See accompanying notes to the interim condensed consolidated financial statements.

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