ONESTOP REPORT

Canada Kegs & Packaging Inc

11 NOVEMBER 2020
Table of Contents
COMPANY SUMMARY

CORPORATE OVERVIEW

NEWS

INDUSTRY OVERVIEW

EXECUTIVE INSIGHT

CHALLENGES, TRENDS & OPPORTUNITIES

FINANCIAL INFORMATION
Company Summary
Canada Kegs & Packaging Inc
3600 Billings Crt Suite 100
Burlington, Ontario, L7N 3N6
Canada
Tel: +1-905-220-2311
Marketability: Has Not Opted Out of Direct Marketing
www.canadakegs.com

Employees (This Site): 1  (Actual) Reporting Currency: CAD

Employees (All Sites): 1  (Actual) Financials In: USD

Company Type: Private Independent Annual Sales: 845k  (Modelled)

D-U-N-S® Number: 20-369-5937

Business Description

Canada Kegs & Packaging Inc is primarily engaged in manufacturing metal shipping barrels drums, kegs, and pails.

Source: D&B

Industry

D&B Hoovers: Metal Products Manufacturing

US 8-Digit SIC: 34120000 - Metal barrels, drums, and pails

Company Identifiers

D-U-N-S® Number: 203695937

Corporate Highlights

Prescreen Score: LOW RISK Owns/Rents: Rents

Latitude: 43.36431

Longitude: -79.78954
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Corporate Overview
Key ID℠ Number: 278755629
Location Sales CAD(mil): 1.1 Company Type: Private Independent
3600 Billings Crt Suite 100 Assets CAD(mil): NA Quoted Status: Not Quoted
Burlington, ON, L7N 3N6 Employees: 1
Canada KeyID SM: 278755629
Industry: Containers and
Tel: 905-220-2311 Packaging
Has Not Opted Out
Marketability:
of Direct Marketing
www.canadakegs.com

Industry Codes

ANZSIC 2006:
2239 - Other Metal Container Manufacturing (Primary)

ISIC Rev 4:
2512 - Manufacture of tanks, reservoirs and containers of metal (Primary)

NACE Rev 2:
2591 - Manufacture of steel drums and similar containers (Primary)

UK SIC 2007:
2591 - Manufacture of steel drums and similar containers (Primary)

UK SIC 2003:
2821 - Manufacture of tanks, reservoirs and containers of metal (Primary)

NAICS 2017:
332439 - Other Metal Container Manufacturing (Primary)

US SIC 1987:
3412 - Metal Shipping Barrels, Drums, Kegs, and Pails (Primary)

US 8-Digit SIC:
34120000 - Metal barrels, drums, and pails (Primary)

Business Description

Canada Kegs & Packaging Inc is primarily engaged in manufacturing metal shipping barrels drums, kegs, and pails.

Source: D&B

Financial Data

Financials in: CAD(mil) 1 Year Growth

Revenue: 1.1 NA

© 2020 Dun & Bradstreet, Inc. All rights reserved.

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News
Results are not available for this company

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Industry Overview Powered by
Fabricated Metal Product Manufacturing

Fast Facts

Companies in this industry transform purchased metals into intermediate or end-use products by forging, stamping, bending, forming,
welding, machining, and assembly. Major companies include Ball Corporation, Flowserve, Gibraltar Industries, Mueller Industries, Snap-On,
The Timken Company, and Valmont Industries (all headquartered in the US), as well as Schae ler AG (Germany), and Toyo Seikan (Japan).
Because of the special manufacturing processes involved for individual parts, most companies make a limited range of products.

Price recovery for oil and other key commodities contributed to stronger economic growth in 2017 and 2018. However, rising global trade
tensions and higher interest rates could pose risks for continued robust economic growth, according to the IMF. Slower economic growth or a
drop in corporate capital expenditures could reduce demand for transportation equipment and machinery, which are leading end-use markets
for many types of fabricated metal products. Top producers of fabricated metal products include the US, China, Japan, Germany, Italy, and
Canada.

The US fabricated metal product manufacturing industry includes about 51,000 companies with about $338 billion in combined annual
revenue. Coverage of key components of the fabricated metal product manufacturing industry can be found in the following industry profiles:
Architectural & Structural Metals Manufacturing; Gun & Ammunition Manufacturing; Handtool, Cutlery & Flatware Manufacturing; Hardware &
Fastener Manufacturing; Machine Shops; Metal Coating, Engraving & Heat Treating; and Metal Valve & Pipe Fitting Manufacturing.

Industry Growth Rating Industry Indicators

US durable goods manufacturers' shipments of fabricated metal

LOW MEDIUM HIGH
Reflects snapshot of industry performance vs. industry risk over
the next 12 to 24 months relative to other U.S. industries, along
with short descriptions of vital demand and risk factors influencing
the industry. Use to quickly determine the overall projected health
of an industry.
parts, an indicator of fabricated metal parts production, fell 5.6
percent year-to-date in July 2020 compared to the same period in
2019.
US steel mill product prices, an indicator of commodity steel costs
for fabricated metal products manufacturers, fell 10.7 percent in
August 2020 compared to the same month in 2019.

Demand: Tied to industrial production

Need e icient production and technical expertise
Risk: Economic health impacts manufacturing level

Industry Forecast

Revenue (in current dollars) for US metal products manufacturing is forecast to grow at an annual compounded rate of 4% between 2020 and
2024, based on changes in physical volume and unit prices.
Data Published: July 2020
First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College
Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate
economy.
Top Challenges & Talking Points
Demand Depends on US Manufacturing Activity
Demand for fabricated metal parts is heavily driven by US
manufacturing levels, especially for equipment and machinery.
How cyclical are the markets that the company sells to?
Import Competition Keeps Prices Low
Imports of simple metal products have increased from nations
such as China that have access to low-cost raw materials and labor.
How are low-cost imports a ecting the company's domestic market?
Fluctuating Raw Materials Costs
The cost of iron and steel can change more than 30% during a year.
How does the company manage volatile raw material costs?
Executive Talking Points
Top Opportunities & Talking Points
New Manufacturing Materials
New metal alloys with desirable physical properties allow
manufacturers to upgrade existing products and introduce new
ones.
How is the use of new metal alloys benefiting the company?
Greater Complexity of Final Products
As machinery and other products become more sophisticated in
function and design, the parts used to build them generally also
become more complicated, requiring more engineering and tighter
manufacturing specifications.
What opportunities does the company see to invest in machinery to produce
increasingly complicated parts?
New Production Methods
New rapid prototyping methods produce delicate parts good for
sizing and ergonomic studies.
What high-tech production methods does the company use to create
competitive advantages?
Chief Executive O icer - CEO
Determining Demand in Customer Industries
How well is the company able to forecast demand for its products?

Chief Financial O icer - CFO

Securing Raw Materials at Favorable Costs
What is the company doing to lower the costs of raw materials?

Chief Information O icer - CIO

Increasing Manufacturing Automation
What are the company's most important initiatives for automating its
manufacturing process?

Human Resources - HR
Retraining Workers for Automated Tasks
How di icult has retraining workers been as production becomes more
automated?

VP Sales/Marketing - Sales
Expanding Trade Show Participation
How important are trade shows to the company's marketing and sales
e orts?

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Executive Insight Powered by
Fabricated Metal Product Manufacturing

Chief Executive O icer - CEO

Determining Demand in Customer Industries

Because most work is for other industrial manufacturers, future demand depends on the outlook for customer industries. Customer industries
like construction and car manufacture go through demand cycles. Companies can o en switch the focus of their production to target
customers in industries with stronger demand because their products have multiple uses.

Negotiating Long-Term Contracts with Major Customers

Many companies, especially smaller ones, depend heavily on just a few contracts for most revenue. Some companies are essentially
manufacturing subsidiaries for one large customer. The pricing and volume called for in long-term contracts allow companies to be very
profitable if they can achieve manufacturing e iciencies.

How well is the company able to forecast demand for its products?
Because most work is for other industrial manufacturers, demand
depends on the outlook for customer industries.
How dependent is the company on its largest customers?
Many companies, especially smaller ones, depend heavily on just a
few contracts for most revenue.

Chief Financial O icer - CFO

Securing Raw Materials at Favorable Costs

The cost of raw materials, such as metals, is crucial to profitability because materials account for a high percentage of total costs for many
products. Some contracts allow companies to pass along cost increases for major materials, but in most cases companies carry the risk of higher
costs. Imports of steel from lower-cost countries have become an important source of supply.

Evaluating Outsourcing Options

Many companies in the industry outsource elements of their production to low-cost producers, or buy components from foreign
manufacturers. The operations of many metal parts manufacturers consist mainly of assembling components made in low-cost countries.
Foreign trade shows are an important source of contacts with low-cost manufacturers.

What is the company doing to lower the costs of raw materials?

The cost of raw materials, such as metals, is crucial to profitability
as materials account for a high percentage of total costs for many
products.
How does the company decide when to outsource portions of the
The operations of many metal parts manufacturers consist mainly
manufacturing process?
of assembling components made in low-cost countries.

Chief Information O icer - CIO

Increasing Manufacturing Automation

Because industry prices have risen very slowly in the past decade, industry profitability has depended on manufacturing e iciencies.
Automation has helped the fabricated metal parts industry increase not only the revenue it generates, but also its revenue-per-employee ratio.
Some segments have attained higher levels of automation to compete with low-cost imports.
Improving Information Systems
Many companies in the industry run a variety of older information systems that aren't easily integrated. Streamlined information systems can
provide better inventory and supply chain management and result in production e iciency. But the cost and risk of company-wide
"enterprise" information so ware can be high.

What are the company's most important initiatives for automating its
Because industry prices have risen slowly in the past decade,
manufacturing process?
industry profitability has depended on manufacturing e iciencies.

How is the company challenged by integrating information across the supply

Many companies in the industry run a variety of older information
chain?
systems that aren't easily integrated.

Human Resources - HR

Retraining Workers for Automated Tasks

As automation machinery has become more important in production, workers require di erent skills. Machines are rapidly replacing skilled
jobs like welding and machining. In some companies, skilled workers now operate automated workstations, while unskilled workers move
parts from one station to the next.

Improving Safety Training

Because of the nature of working with machinery, the injury rate of the industry is about 50% higher than for all US workers. Eye and hand
injuries are especially common.

How di icult has retraining workers been as production becomes more

As automation machinery has become more important in
automated?
production, workers require di erent skills.

What is the company doing to lower worker injury rates?

Because of the nature of working with machinery, the average
injury rate for the industry about 50% higher than for all US
workers.

VP Sales/Marketing - Sales

Expanding Trade Show Participation

Trade shows allow manufacturers to demonstrate the types of products they can make. International trade shows have become more
important to US manufacturers to o set slow domestic market growth. Trade shows are especially important for small specialty manufacturers
that can't a ord a large sales sta .

Expanding Internet Marketing

Specialized internet directories allow customers to find companies based on various technical criteria such as ISO certification. Company
websites can allow potential customers to ask for quotes on specific projects. Search-based internet advertising is particularly useful for
companies with special manufacturing capabilities.

How important are trade shows to the company's marketing and sales
Trade shows are especially important for small specialty
e orts?
manufacturers that can't a ord a large sales sta .

How is the company taking advantage of the internet to reach potential

Search-based internet advertising is particularly useful for
customers?
companies with special manufacturing capabilities.
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Challenges, Trends & Opportunities Powered by
Fabricated Metal Product Manufacturing

Business Challenges

Demand Depends on US Manufacturing Activity

Demand for fabricated metal parts is heavily driven by US manufacturing levels, especially for equipment and machinery. US production of
fabricated metal products dropped more than 20% during the recession of the late 2000s. A greater reliance on low-cost overseas manufacture
has cut the market for US metal products.

Import Competition Keeps Prices Low

Imports of simple metal products have increased from nations such as China that have access to low-cost raw materials and labor. Imports of
fabricated metal products from China to the US rose about 25% between 2012 and 2017.

Fluctuating Raw Materials Costs

The cost of iron and steel can change more than 30% during a year. In addition, from time to time the US imposes various restrictions and tari s
on imports of steel from lower-cost countries to preserve jobs in the US steel industry.

Customer Concentration Common

Due to the specialized nature of the industry, many companies supply only a handful of products to a few large customers. Many companies in
the industry are de-facto manufacturing subsidiaries of their customers, and their success depends directly on their customers' success.

Greater Specialization
Due to the engineering-intensive nature of many products in this industry, companies can o en add significant value for customers (and gain
higher gross margins) by concentrating on niche products. However, niche products contain higher risks of obsolescence and customer
concentration.

Alternative Materials Replacing Metals

Using materials such as plastics and ceramics, which are lighter and have other desirable characteristics, is increasing in the auto and consumer
goods industries. Ceramics are being used in fasteners, emissions components, and brake parts for cars, and plastic bottles have taken a large
share of the container market from aluminum cans.

Business Trends

Varying Demand Cycles

Demand for metal products is a ected by varying demand in customer industries. Production of industrial equipment can fluctuate more than
10% in a year. Spending in the aerospace, automotive, and construction sectors is also volatile.

Customers Moving Overseas

Many metal products customers, such as auto companies and appliance manufacturers, have moved production abroad to take advantage of
lower labor costs and position themselves to sell products to a growing international market. Unless their US suppliers move with them, these
customers buy from local manufacturers, especially if they use just-in-time inventory management.

New Powder Metal Applications

Powder metal parts are o en cheaper to produce, and in some cases are lighter or have better performance characteristics, than traditional
metal parts. The light weight of powder metal parts is particularly attractive in automotive applications: on average, vehicles now contain
about 40 pounds of powder metal parts.
Shorter Manufacturing Lead Times
In order to meet the just-in-time inventory needs of OEM customers, metal fabricators are investing in machinery to minimize manufacturing
lead times. Shorter manufacturing times can improve cash flow by reducing finished goods inventories. In recent years companies have cut
lead times through investments in advanced set-up and quick changeover technology and so ware.

Industry Opportunities

New Manufacturing Materials

New metal alloys with desirable physical properties allow manufacturers to upgrade existing products and introduce new ones. Such alloys
have been especially useful for products that must operate in extreme conditions, such as inside engines and in cooling applications. However,
the use of new materials requires a large prior investment in engineering and testing.

Greater Complexity of Final Products

As machinery and other products become more sophisticated in function and design, the parts used to build them generally also become more
complicated, requiring more engineering and tighter manufacturing specifications. Manufacturers that can invest in modern fabricating
technology will be able to increase market share.

New Production Methods

New rapid prototyping methods produce delicate parts good for sizing and ergonomic studies. Lasers have growing applications in metal parts
manufacturing, such as laser cutters used in sheet metal industries. New fabrication technology for metal parts, like laser-assisted arc welding,
can rapidly produce part molds directly from CAD files, thus bypassing the traditional need for tooling. New metal casting technology can
reduce the time from initial design to production.

Increased Customer Outsourcing

Equipment manufacturers are increasingly outsourcing the production of parts they formerly made themselves. Much of the sheet steel and
steel plate bought by manufacturers from metal service centers is processed by a fabricator under an outsourcing arrangement before delivery.

Nonmetal Product Line Additions

Many companies are expanding their product line, sometimes adding nonmetal items. Manufacturers of metal windows and doors may also
manufacture vinyl and wooden ones. Manufacturers of industrial metal valves may also produce plastic versions for certain applications.

3D Printing
Additive manufacturing, better known as 3D printing, produces solid, three-dimensional objects by successively layering materials according
to a digital design. Unlike subtractive manufacturing, which uses cutting tools to create shapes by removing material, the additive process has
relatively little waste. Additive manufacturing is already being applied in industries including automotive, defense products, and various
consumer goods. 3D printing may eventually revolutionize how some fabricated metal products are manufactured.

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Financial Information Powered by
Fabricated Metal Product Manufacturing

Company Benchmark Trends

Quick Ratio by Company Size

The quick ratio, also known as the acid test ratio, measures a company's ability to meet short-term obligations with liquid assets. The higher
the ratio, the better; a number below 1 signals financial distress. Use the quick ratio to determine if companies in an industry are typically able
to pay o their current liabilities.

Financial industry data provided by MicroBilt Corporation collected from 32 di erent data sources and represents financial performance of
over 4.5 million privately held businesses and detailed industry financial benchmarks of companies in over 900 industries (SIC and NAICS).
More data available at www.microbilt.com.

Working Capital Turnover by Company Size

The working capital turnover ratio, also known as working capital to sales, is a measure of how e iciently a company uses its capital to
generate sales. Companies should be compared to others in their industry.

 
 

Financial industry data provided by MicroBilt Corporation collected from 32 di erent data sources and represents financial performance of
over 4.5 million privately held businesses and detailed industry financial benchmarks of companies in over 900 industries (SIC and NAICS).
More data available at www.microbilt.com.

Current Liabilities to Net Worth by Company Size

The ratio of current liabilities to net worth, also called current liabilities to equity, indicates the amount due creditors within a year as a
percentage of stockholders' equity in a company. A high ratio (above 80 percent) can indicate trouble.

Financial industry data provided by MicroBilt Corporation collected from 32 di erent data sources and represents financial performance of
over 4.5 million privately held businesses and detailed industry financial benchmarks of companies in over 900 industries (SIC and NAICS).
More data available at www.microbilt.com.

Company Benchmark Information

NAICS: 332
Data Period: 2018 Last Update February 2020
Table Data Format Mean
Company Size All Large Medium Small
Size by Revenue   Over $50M $5M - $50M Under $5M
Company Count 45177 519 3977 40681
Income Statement
Net Sales 100% 100% 100% 100%
Gross Margin 32.0% 32.6% 30.3% 31.5%
O icer Compensation 3.0% 2.9% 3.0% 3.5%
Advertising & Sales 0.5% 0.4% 0.5% 0.5%
Other Operating Expenses 25.5% 25.7% 24.7% 25.7%
Operating Expenses 29.0% 29.1% 28.3% 29.7%
Operating Income 3.0% 3.5% 2.1% 1.8%
Net Income 1.3% 1.5% 0.8% 0.6%
Balance Sheet
Cash 9.5% 9.0% 10.6% 10.5%
Accounts Receivable 22.6% 21.8% 24.8% 24.8%
Inventory 16.6% 15.3% 20.2% 19.5%
Total Current Assets 53.9% 51.1% 61.5% 60.8%
Property, Plant & 30.8% 32.7% 25.9% 26.1%
Equipment
Other Non-Current Assets 15.2% 16.2% 12.6% 13.1%
Total Assets 100.0% 100.0% 100.0% 100.0%
Accounts Payable 10.3% 9.9% 11.5% 11.4%
Total Current Liabilities 24.4% 23.3% 27.2% 27.0%
Total Long Term Liabilities 26.7% 26.3% 26.9% 29.4%
Net Worth 48.9% 50.4% 45.9% 43.7%
Financial Ratios
Quick Ratio 1.38 1.39 1.37 1.38
Current Ratio 2.21 2.19 2.26 2.25
Current Liabilities to Net 49.8% 46.2% 59.3% 61.9%
Worth
Current Liabilities to x1.47 x1.53 x1.35 x1.38
Inventory
Total Debt to Net Worth x1.04 x0.98 x1.18 x1.29
Fixed Assets to Net Worth x0.63 x0.65 x0.56 x0.60
Days Accounts Receivable 53 55 52 50
Inventory Turnover x6.32 x6.41 x6.04 x6.26
Total Assets to Sales 66.2% 70.3% 57.8% 56.9%
Working Capital to Sales 19.6% 19.6% 19.8% 19.2%
Accounts Payable to Sales 6.7% 6.8% 6.6% 6.4%
Pre-Tax Return on Sales 2.0% 2.4% 1.2% 0.9%
Pre-Tax Return on Assets 3.1% 3.4% 2.1% 1.7%
Pre-Tax Return on Net 6.2% 6.8% 4.7% 3.8%
Worth
Interest Coverage x2.24 x2.41 x1.84 x1.54
EBITDA to Sales 6.7% 7.3% 5.4% 5.3%
Capital Expenditures to 4.8% 5.2% 3.8% 4.1%
Sales
Financial industry data provided by MicroBilt Corporation collected from 32 di erent data sources and represents financial performance of
over 4.5 million privately held businesses and detailed industry financial benchmarks of companies in over 900 industries (SIC and NAICS).
More data available at www.microbilt.com.

Economic Statistics And Information

Annual Construction Put into Place - Census Bureau

Index of Industrial Production - Federal Reserve Board

Change in Producer Prices - Bureau of Labor Statistics

 Change in Dollar Value of US Trade - US International Trade Commission

Imports of fabricated metal parts to the US come primarily from China, Mexico, Canada, Taiwan, and Germany. Major export markets for US
fabricated metal parts include Canada, Mexico, China, UK, and Germany.
332 FABRICATED METAL PRODUCTS, NESOI

Valuation Multiples

Fabricated Metal Product Manufacturing

Acquisition multiples below are calculated medians using at least 3 US private industry transactions completed between 1/2008 and
12/2019 and are based on middle-market transactions where the market value of invested capital (the selling price) was less than $1B. Data
updated annually. Last updated: December 2019.

Valuation Multiple MVIC/Net Sales MVIC/Gross Profit MVIC/EBIT MVIC/EBITDA

Median Value 0.7 1.2 3.8 2.4

MVIC (Market Value of Invested Capital) = Also known as the selling price, the MVIC is the total consideration paid to the seller and includes
any cash, notes and/or securities that were used as a form of payment plus any interest-bearing liabilities assumed by the buyer.
Net Sales = Annual Gross Sales, net of returns and discounts allowed, if any.
Gross Profit = Net Sales - Cost of Goods Sold
EBIT = Operating Profit
EBITDA = Operating Profit + Noncash Charges

SOURCE: DealStats (formerly Pratt's Stats), 2019 (Portland, OR: Business Valuation Resources, LLC). Used with permission. DealStats is
available at https://www.bvresources.com/learn/dealstats

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