5N Plus Reports Financial Results for the First Quarter with Revenues and EBITDA Reaching Highest Levels over Last Two Years

MONTREAL, May 6, 2014 /CNW Telbec/ - 5N Plus Inc. (TSX: VNP), the leading producer of specialty metal and chemical products, today reported financial results for the first quarter ended March 31, 2014.

• Revenues for the first quarter 2014 reached $142.4 million, their highest level since Q1 2012, which corresponds to an increase of $24 million or 20% compared to $118.4 million for the first quarter of 2013.
  
  
• EBITDA¹ for the first quarter 2014 also reached its highest level since Q1 2012, attaining $10.5 million up from $10.1 million for the first quarter of 2013.
  
  
• Net earnings for the first quarter 2014 reached $4.5 million or $0.05 per share compared to $5.5 million or $0.07 per share for the first quarter of 2013.
  
  
• Net debt¹ was in line with year-end 2013 and stood at $60.6 million as at March 31^st, 2014 down from $125.8 million as at March 31^st, 2013.
  
  
• Bookings reached $159.6 million in the quarter leading to an increase in backlog which now stands at $187.3 million, its highest level since Q2 2012.  This represents a 34% increase in bookings and a 13% increase in backlog over the corresponding figures of the first quarter of 2013 which were $118.9 million and $166.3 million respectively.
  
  
• Richard Perron was appointed Chief Financial Officer effective March 17, 2014 and subsequently Bertrand Lessard was appointed Chief Operating Officer effective April 28, 2014.

Jacques L'Ecuyer, President and Chief Executive Officer, said "We reported strong revenues and bookings in the first quarter and an improvement in profitability following increasing demand, especially for our bismuth based products, and a more favorable underlying commodity pricing trend.  We also reported strong bookings and an increase in backlog reflecting the expected beginning of the year increase in demand as well as a more bullish outlook from many customers on their overall requirements. "

Mr. L'Ecuyer continued, "Debt levels remained roughly constant when compared to the previous quarter despite some increases in underlying commodity prices.  This is in line with our efforts aimed at improving efficiency and reducing costs and working capital throughout the group."

Mr. L'Ecuyer concluded, "We made further strides in the quarter towards executing on our growth plan by significantly strengthening our senior management team.  Both Richard and Bertrand bring very relevant experience in closely related industries which will help us meet our short and long term objectives.  We also made important changes to our board of directors following the retirement of our chairman Dennis Wood and of John Davis and expect our three new board members, Jennie Hwang, Jim Fahey and Nathalie Le Prohon, to greatly contribute to our future success."

About 5N Plus Inc.
5N Plus is the leading producer of specialty metal and chemical products.  Fully integrated with closed-loop recycling facilities, the Company is headquartered in Montreal, Québec, Canada and operates manufacturing facilities and sales offices in several locations in Europe, the Americas and Asia.  5N Plus deploys a range of proprietary and proven technologies to produce products which are used in a number of advanced pharmaceutical, electronic and industrial applications.  Typical products include purified metals such as bismuth, gallium, germanium, indium, selenium and tellurium, inorganic chemicals based on such metals and compound semiconductor wafers.  Many of these are critical precursors and key enablers in markets such as solar, light-emitting diodes and eco-friendly materials.

Forward-Looking Statements and Disclaimer
This press release may contain forward-looking information within the meaning of applicable securities laws.  All information and statements other than statements of historical facts contained in this press release are forward-looking information.  Such statements and information may be identified by words such as "about", "approximately", "may", "believes", "expects", "will", "intends", "should", "plans", "predicts", "potential", "projects", "anticipates", "estimates", "continues" or similar words or the negative thereof or other comparable terminology.  Forward-looking statements are based on the best estimates available to 5N Plus at this time and involve known and unknown risks, uncertainties and other factors that may cause 5N Plus' actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.  A description of the risks affecting 5N Plus' business and activities appears under the heading "Risk and Uncertainties" of 5N Plus' 2013 MD&A dated February 25, 2014 and note 11 of the unaudited interim condensed consolidated financial statements for the three-month periods ended March 31, 2014 and 2013 available on SEDAR at www.sedar.com. No assurance can be given that any events anticipated by the forward-looking information in this press release will transpire or occur, or if any of them do so, what benefits that 5N Plus will derive therefrom.  In particular, no assurance can be given as to the future financial performance of 5N Plus.  The forward-looking information contained in this press release is made as of the date hereof and 5N Plus undertakes no obligation to publicly update such forward-looking information to reflect new information, subsequent or otherwise, unless required by applicable securities laws.  The reader is warned against placing undue reliance on these forward-looking statements.

5N PLUS INC.
UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(Figures in thousands of United States dollars)

		As at March 31, 2014		As at December 31, 2013
		$		$
ASSETS
Current
Cash and cash equivalents		16,886		22,427
Temporary investments (restricted)		2,548		2,490
Accounts receivable		83,144		60,616
Inventories		176,353		174,374
Income tax receivable		6,563		8,455
Derivative financial assets		283		955
Other current assets		4,441		2,290
Total current assets		290,218		271,607
Property, plant and equipment		57,988		59,614
Intangible assets		12,273		13,143
Deferred tax asset		12,707		13,387
Investments accounted for using the equity method		467		444
Other assets		6,248		7,045
Total non-current assets		89,683		93,633
Total assets		379,901		365,240
LIABILITIES AND EQUITY
Current
Bank indebtedness and short-term debt		10,336		10,462
Trade and accrued liabilities		76,189		65,016
Income tax payable		6,577		3,660
Derivative financial liabilities		3,595		3,284
Long-term debt due within one year		4,184		4,439
Total current liabilities		100,881		86,861
Long-term debt		65,544		68,346
Deferred tax liability		1,030		1,600
Retirement benefit obligation		15,765		15,887
Derivative financial liabilities		572		953
Other liabilities		884		1,064
Total non-current liabilities		83,795		87,850
Total liabilities		184,676		174,711
Shareholders' equity		194,884		190,052
Non-controlling interest		341		477
Total equity		195,225		190,529
Total liabilities and equity		379,901		365,240

5N PLUS INC.
UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF EARNINGS
For the three-month periods ended March 31, 2014 and 2013
(Figures in thousands of United States dollars, except per share information)

		March 31, 2014		March 31, 2013
		$		$
Revenues		142,379		118,389
Cost of sales		122,743		99,388
Selling, general and administrative expenses		9,762		9,627
Other expenses		2,754		2,978
Share of (earnings) loss from joint ventures		(23)		136
		135,236		112,129
Operating income		7,143		6,260
Gain on disposal of property, plant and equipment		1,312		-
Financial expense (income)
Interest on long-term debt		1,140		1,842
Other interest expense		276		1,470
Foreign exchange and derivative loss (gain)		16		(3,017)
		1,432		295
Earnings before income taxes		7,023		5,965
Income tax expense		2,504		427
Net earnings for the period		4,519		5,538
Attributable to:
Equity holders of 5N Plus Inc.		4,655		5,371
Non-controlling interest		(136)		167
		4,519		5,538
Earnings per share attributable to equity holders of 5N Plus Inc.		0.06		0.06
Basic earnings per share		0.05		0.07
Diluted earnings per share		0.05		0.07

5N PLUS INC.
(Figures in thousands of United States dollars)

Cash Flows
								Q1 2014		Q1 2013		% Change
								$		$
Funds from operations^1								6,806		4,608		48%
Net changes in non-cash working capital items								(9,553)		6,244		-253%
Operating activities								(2,747)		10,852		-125%
Investing activities								(332)		(2,586)		-87%
Financing activities								(2,436)		(6,040)		-60%
Effect of foreign exchange rate changes on cash and cash equivalents related to operations								(26)		460		-106%
Net (decrease) increase in cash and cash equivalents								(5,541)		2,686		-306%
Revenues by Segment
								Q1 2014		Q1 2013		% Change
								$		$
Electronic Materials Segment								48,141		48,356		0.%
Eco-Friendly Materials Segment								94,238		70,033		35%
Total Revenues								142,379		118,389		20%
EBITDA and Adjusted EBITDA
								Q1 2014		Q1 2013		% Change
								$		$
Electronic Materials								6,948		7,078		2%
Eco-Friendly Materials								6,405		5,067		26%
Corporate								(2,852)		(2,030)		40%
EBITDA^1								10,501		10,115		4%
Impairment of inventory								-		-
Adjusted EBITDA^1								10,501		10,115		4%
Backlog and Bookings
		BACKLOG^1						BOOKINGS^1
		Q1 2014		Q4 2013		Q1 2013		Q1 2014		Q4 2013		Q1 2013
		$		$		$		$		$		$
Electronic Materials		79,362		80,382		92,797		47,121		54,337		40,435
Eco-Friendly Materials		107,968		89,691		73,493		112,516		101,800		78,455
Total		187,330		170,073		166,290		159,637		156,137		118,890

^{____________________________
1} See Non-IFRS Measures
 

 

 

SOURCE: 5N Plus Inc.

Jean Mayer
Vice President, Legal Affairs and Corporate Secretary
5N Plus Inc.
[phone] x6178
[email protected]