Second quarter 2024 sales of US$549.5 million
Earnings per share increase to US$0.74 and Adjusted EBITDA grows to US$48.5 million
LANGLEY, BC, Aug. 8, 2024 /CNW/ - ADENTRA Inc. ("ADENTRA" or the "Company") today announced financial results for the three and six months ended June 30, 2024. ADENTRA is one of North America's largest distributors of architectural building products to the residential, repair and remodel, and commercial construction markets. We currently operate a network of 86 facilities in the United States and Canada. All amounts are shown in United States dollars ("US $" or "$"), unless otherwise noted.
Highlights for Q2 2024 (as compared to Q2 2023, unless otherwise stated)
- Generated sales of $549.5 million (C$751.9 million), as compared to $585.9 million (C$786.8 million)
- Gross margin of $119.2 million, similar to $119.4 million in Q2 of 2023
- Gross margin percentage increased to 21.7%, a 130 basis points improvement
- Operating expenses decreased by $2.2 million, or 2.4%
- Net income increased by 81.6% to $17.0 million; Basic earnings per share grew 76.2% to $0.74 (C$1.01)
- Adjusted net income increased by 47.3% to $24.4 million; Adjusted basic earnings per share increased 43.2% to $1.06 (C$1.45)
- Adjusted EBITDA grew 5.1% to $48.5 million (C$66.3 million)
- Operating cash flow before changes in working capital increased $12.8 million to $37.5 million, from $24.7 million
- Declared a dividend of C$0.14 per share, payable on October 25, 2024 to shareholders of record as of October 15, 2024
- On June 12, 2024, issued in aggregate 2,582,900 common shares at a price of $28.27 (C$38.75) per common share through a bought deal treasury public offering ("Equity Raise") resulting in gross proceeds of $73 million (C$100 million).
- On July 29, 2024, announced the US$130 million acquisition of Woolf Distributing Company, Inc. ("Woolf"), a US Midwest-based value-added distributor of architectural building and millwork products for residential and commercial markets.
- On August 7, 2024 the U.S Department of Commerce ("Commerce") announced preliminary results of a further administrative review with respect to certain hardwood plywood products produced in Vietnam that they believe are circumventing a previously established duty order against hardwood plywood from China. Based on these results, we believe that we may be eligible for a refund on a significant portion of duties paid. Commerce's results are provisional and subject to change, with a final decision expected in early 2025.
"This past quarter has been an eventful period for ADENTRA, marked by several significant developments. In May, after 11 years of service Mr. Peter Bull stepped down from our Board of Directors and reduced his share ownership in the Company to just under 10%, in order to achieve certain personal financial and estate planning objectives. The development is expected to enhance our market float and trading liquidity over time, which is a positive outcome for all stakeholders," said Rob Brown, ADENTRA's President and CEO.
"In June we successfully completed an equity offering of $73 million. This strategic move strengthened our balance sheet and positioned us well to execute on our promising M&A pipeline. In line with this strategy, we were pleased to announce the acquisition of Woolf subsequent to quarter-end, on July 29, 2024."
"On August 7th we received some positive news as Commerce announced the preliminary results of their administrative review. We have paid duties of $25.7 million and we believe we may be eligible for a refund on a significant portion of this. While Commerce's results are provisional and could change upon becoming final, we view this as an encouraging development with potential positive cash flow impacts for 2025."
"From an operations perspective, our bottom-line results continued to strengthen in the second quarter as tight operating management, successful strategy execution, and our significant diversification across products, geographies, customers and end-markets delivered predictably robust performance, despite softer markets."
"Adjusted basic earnings per share of $1.06 grew 43.2% year-over-year. We also increased Adjusted EBITDA to $48.5 million, up 5.1% year-over-year. Our strong gross margin percentage of 21.7% was a key driver of these results and reflects the continued success of strategies targeting a gross margin above 20%, something we have achieved in each of the past 13 quarters. Additionally, we lowered expenses by $2.2 million during the quarter, a significant achievement in what has been an inflationary cost environment."
"On the topline, our sales volumes were generally stable year-over-year. Product price deflation accounted for most of the 6.2% decrease in total sales as compared to the same period last year. As the North American industry returns to a more balanced supply and demand environment, product pricing has been gradually adjusting and normalizing in step."
"Overall, our second quarter results underscore the resiliency of our business model and the deep experience of ADENTRA's team in managing diverse market conditions. Our results also continued to demonstrate our strong cash generating capabilities, with $74 million of cash flow generated in the first half of 2024 before changes in working capital. This represents a highly efficient 79% conversion rate from Adjusted EBITDA."
"While focused on future growth, we also remain committed to providing near-term value for investors. During the first six months of 2024 we returned $4.6 million to shareholders via dividend payments, and today our Board of Directors approved a dividend of C$0.14 per share to be paid October 25, 2024 to shareholders of record as at October 15, 2024," said Mr. Brown.
Outlook
On an organic basis, we anticipate third quarter Adjusted EBITDA will be similar to what we achieved in Q2 2024. Acquisition-based growth is expected to build on that performance as we benefit from the inclusion of Woolf's operations for August and September 2024.
Overall, the inflation and interest rate hikes of recent years are expected to continue to moderately impact residential, repair and remodel, and commercial construction markets in the second half of 2024. Despite this, we expect our strategies will continue to support strong and stable sales volumes as we demonstrated in Q1 and Q2 under similar conditions. The size, scale and sophistication of our business model allows us to implement comprehensive initiatives that drive our success and are difficult to replicate by smaller regional competitors. Key strategies include our global sourcing program and vendor management programs that provide us access to branded, exclusive, and semi-exclusive products with attractive terms. Additionally, our digital engagement initiatives with customers have been effective, with approximately 20% of our transactions occurring online. Our proprietary ADENTRA University training programs further ensure that our team is well-equipped to deliver exceptional service and maintain our competitive edge.
These strategies are core components of our Destination 2028 plan, which targets an additional $800 million in run-rate acquired revenues between 2024 to 2028. The acquisition of Woolf puts us right on pace to achieve this goal and we will continue to evaluate additional acquisition opportunities going forward. As one of the largest distributors of architectural building products in North America with approximately 6% market share, there remains significant opportunity for growth and we maintain a robust pipeline of acquisition targets.
Over the longer term our business is supported by strong end-market fundamentals, including historic under-building of homes, positive demographic factors, strong home equity, and an aging housing stock. Decreases in interest rates could further support end-market demand for our products. We continue to see a multi-year runway for growth in our core repair and remodel, residential, and commercial markets.
Q2 2024 Investor Call
ADENTRA will hold an investor call on Friday, August 9, 2024 at 8:00 am Pacific (11:00 am Eastern). Participants should dial 1-888-664-6392 or (416) 764-8659 (GTA) at least five minutes before the call begins. A replay will be available through August 23, 2024 by calling toll free 1-888-390-0541 or (416) 764-8677 (GTA), followed by passcode 488403.
Summary of Results
Three months |
Three months |
Six months |
Six months |
|||||
ended June 30 |
ended June 30 |
ended June 30 |
ended June 30 |
|||||
2024 |
2023 |
2024 |
2023 |
|||||
Total sales |
$ 549,492 |
$ 585,935 |
$ 1,084,630 |
$ 1,165,792 |
||||
Sales in the US |
504,633 |
540,988 |
997,103 |
1,077,172 |
||||
Sales in Canada (CAD$) |
61,388 |
60,365 |
118,930 |
119,433 |
||||
Gross margin |
119,218 |
119,449 |
237,452 |
236,442 |
||||
Gross margin % |
21.7 % |
20.4 % |
21.9 % |
20.3 % |
||||
Operating expenses |
(92,219) |
(94,419) |
(186,054) |
(186,847) |
||||
Income from operations |
$ 26,999 |
$ 25,030 |
$ 51,398 |
$ 49,595 |
||||
Add: Depreciation and amortization |
17,965 |
17,713 |
36,294 |
34,731 |
||||
Earnings before interest, taxes, depreciation and |
||||||||
amortization ("EBITDA") |
$ 44,964 |
$ 42,743 |
$ 87,692 |
$ 84,326 |
||||
EBITDA as a % of revenue |
8.2 % |
7.3 % |
6.9 % |
11.0 % |
||||
Add (deduct): |
||||||||
Depreciation and amortization |
(17,965) |
(17,713) |
(36,294) |
(34,731) |
||||
Net finance expense |
(10,418) |
(12,105) |
(21,496) |
(24,324) |
||||
Income tax recovery (expense) |
435 |
(3,557) |
(2,215) |
(6,306) |
||||
Net income for the period |
$ 17,016 |
$ 9,368 |
$ 27,687 |
$ 18,965 |
||||
Basic earnings per share |
$ 0.74 |
$ 0.42 |
$ 1.22 |
$ 0.85 |
||||
Diluted earnings per share |
$ 0.73 |
$ 0.42 |
$ 1.20 |
$ 0.84 |
||||
Average US dollar exchange rate for one Canadian dollar |
$ 0.731 |
$ 0.745 |
$ 0.736 |
$ 0.742 |
Analysis of Specific Items Affecting Comparability (in thousands of Canadian dollars) |
||||||||
Three months |
Three months |
Six months |
Six months |
|||||
ended June 30 |
ended June 30 |
ended June 30 |
ended June 30 |
|||||
2024 |
2023 |
2024 |
2023 |
|||||
Earnings before interest, taxes, depreciation and |
||||||||
amortization ("EBITDA"), per table above |
$ 44,964 |
$ 42,743 |
$ 87,692 |
$ 84,326 |
||||
LTIP expense |
3,517 |
3,407 |
6,341 |
4,693 |
||||
Adjusted EBITDA |
$ 48,481 |
$ 46,150 |
$ 94,033 |
$ 89,019 |
||||
Adjusted EBITDA as a % of revenue |
8.8 % |
7.9 % |
8.7 % |
7.6 % |
||||
Net income for the period, as reported |
$ 17,016 |
$ 9,368 |
$ 27,687 |
$ 18,965 |
||||
LTIP expense, net of tax |
3,333 |
3,141 |
5,919 |
4,313 |
||||
Amortization of acquired intangible assets, net of tax |
4,062 |
4,062 |
8,124 |
8,124 |
||||
Adjusted net income for the period |
$ 24,411 |
$ 16,571 |
$ 41,730 |
$ 31,402 |
||||
Basic earnings per share, as reported |
$ 0.74 |
$ 0.42 |
$ 1.22 |
$ 0.85 |
||||
Net impact of above items per share |
0.32 |
0.32 |
0.62 |
0.55 |
||||
Adjusted basic earnings per share |
$ 1.06 |
$ 0.74 |
$ 1.84 |
$ 1.40 |
||||
Diluted earnings per share, as reported |
$ 0.73 |
$ 0.42 |
$ 1.20 |
$ 0.84 |
||||
Net impact of above items per share |
0.32 |
0.32 |
0.61 |
0.55 |
||||
Adjusted diluted earnings per share |
$ 1.05 |
$ 0.74 |
$ 1.81 |
$ 1.39 |
Results from Operations - Three Months Ended June 30, 2024
For the three months ended June 30, 2024, we generated total sales of $549.5 million, as compared to $585.9 million in Q2 2023. Sales decreased $36.4 million, or 6.2%, and product price deflation drove 5% of this change while sales volume decreased 1%. Sales results were not significantly impacted by foreign exchange translation of Canadian sales to US dollars for reporting purposes.
Our US operations generated second quarter sales of $504.6 million, compared to $541.0 million in the same period in 2023. US operations sales decreased $36.4 million, or 6.7%, and of this change 6% related to product price deflation and 1% was attributable to lower sales volumes.
In Canada, second quarter sales of C$61.4 million increased by C$1.0 million, or 1.7%, from Q2 2023 levels. The year-over-year improvement in Canadian sales reflects an approximately 7% increase in sales volume, partially offset by an approximately 5% decrease in product prices.
Second quarter gross margin decreased to $119.2 million, down $0.2 million, or 0.2%, from the same period last year. The change in gross margin was primarily driven by lower sales revenue, partially offset by a higher gross margin percentage of 21.7%, which was 130 basis points higher than the 20.4% achieved in Q2 2023. The improvement in gross margin percentage reflects the positive impact of the strategic initiatives outlined in Section 1.1, together with a reduction in inventory write-downs as compared to the second quarter of 2023.
For the three months ended June 30, 2024, we lowered operating expenses to $92.2 million, from $94.4 million in the same period last year. This $2.2 million, or 2.3%, improvement was primarily due to lower premise and administrative costs.
For the three months ended June 30, 2024, depreciation and amortization increased to $18.0 million, from $17.7 million in Q2 2023. The year-over-year increase was attributable to higher depreciation and amortization related to premise leases. Included in the depreciation and amortization was $5.5 million of amortization on acquired intangible assets, consistent with the same period last year.
For the three months ended June 30, 2024, net finance expense decreased to $10.4 million, from $12.1 million in Q2 2023. A $2.0 million reduction in interest on bank indebtedness was the key driver of this improvement and reflects the $144.5 million reduction in our bank indebtedness as compared to Q2 2023.
For the three months ended June 30, 2024, income tax recovery was $0.4 million, which includes a $4.3 million recovery related to the recognition of non-capital losses. In May 2024, Canada substantively enacted the Excessive Interest and Financing Expenses Limitation ("EIFEL") legislation which limits our ability to deduct interest and increases our expected taxable income in Canada. During the quarter ended June 30, 2024, we recognized $4.3 million (C$5.8 million) of deferred tax assets based on the expected utilization of operating loss carry forwards.
Excluding this loss carryforward tax recovery, income tax expense was $3.9 million consistent with Q1 2023 results. This reflects similar net income before tax in both periods.
Second quarter Adjusted EBITDA grew 5.1% to $48.5 million, from $46.2 million during the same period in 2023. This $2.3 million improvement reflects the $2.5 million reduction in operating expenses (before changes in depreciation and amortization and LTIP expense), partially offset by the $0.2 million decrease in gross margin dollars.
Net income for the second quarter of 2024 increased 81.6% to $17.0 million (basic earnings per share of $0.74), from $9.4 million (basic earnings per share of $0.42) in Q2 2023. The $7.6 million improvement includes the $2.2 million increase in EBITDA and the $1.7 million decrease in net finance expense, the $4.0 million decrease in income tax expense, partially offset by the $0.3 million increase in depreciation and amortization.
Second quarter adjusted net income grew 47.3% to $24.4 million, from $16.6 million in Q2 2023. Adjusted basic earnings per share climbed 43.2% to $1.06, from $0.74 in Q2 2023.
Results from Operations - Six Months Ended June 30, 2024
For the six months ended June 30, 2024, we generated total sales of $1.08 billion, as compared to $1.17 billion in the first half of 2023. While sales volumes were stable year-over-year, product price deflation was the primary driver of the $81.2 million, or 7.0%, decrease in sales. First half sales results were not significantly impacted by foreign exchange translation of Canadian sales to US dollars for reporting purposes.
Our US operations generated first half sales of $1.00 billion, compared to $1.08 billion in the same period in 2023. The $80.1 million, or 7.4%, year-over-year decrease reflects approximately 8% of product price deflation, partially offset by 1% sales volume growth as compared to the same period last year.
In Canada, sales for the first six months were C$118.9 million, C$0.5 million, or 0.4%, lower than the same period in 2023. The year-over-year change in Canadian sales reflects an approximately 6% decrease in product prices, partially offset by a 5% improvement in sales volumes.
First half gross margin increased to $237.5 million, up $1.0 million, or 0.4%, from the same period last year. This improvement was primarily driven by a higher gross margin percentage, partially offset by lower sales revenue. At 21.9%, our first half gross margin percentage was 160 basis points higher than the 20.3% achieved in the same period in 2023, reflecting the positive impact of strategic initiatives outlined in Section 1.1, together with a reduction in inventory write-downs as compared to the first half of 2023.
For the six months ended June 30, 2024, operating expenses were slightly lower at $186.1 million, as compared to $186.8 million in the same period last year. This $0.8 million, or 0.4%, decrease reflects lower premise costs, partially offset by higher people costs.
For the six months ended June 30, 2024, depreciation and amortization increased to $36.3 million, from $34.7 million in first half of 2023. Higher depreciation related to premise leases was the key factor in this increase. Included in the depreciation and amortization was $11.1 million of amortization on acquired intangible assets, consistent with the same period last year.
For the six months ended June 30, 2024, net finance expense decreased $2.8 million to $21.5 million, from $24.3 million in the same period 2023. The primary driver of this improvement was a $144.5 million year-over-year decrease in our bank indebtedness, leading to a $3.7 million reduction in interest charges, despite higher interest rates.
For the six months ended June 30, 2024, income tax expense was $2.2 million, compared to $6.3 million in the first half 2023. Included in the income tax expense was recognition of non-capital losses as described in the section above. Excluding this tax recovery, income tax expense was $6.5 million, consistent with the first half of 2023 results. This reflects similar net income before tax in both periods.
First half Adjusted EBITDA grew 5.6% to $94.0 million, from $89.0 million during the same period in 2023. This $5.0 million improvement largely reflects the $1.0 million increase in gross margin and $4.0 million decrease in operating expenses (before changes in depreciation and amortization and LTIP expense).
Net income for the first half of 2024 grew 46.0% to $27.7 million (basic earnings per share of $1.22), from $19.0 million (basic earnings per share of $0.85) in the same period 2023. The $8.7 million increase was driven by $3.4 million higher EBITDA, $2.8 million lower net finance expense, the $4.1 million decrease in income tax expense, and partially offset by the $1.6 million increase in depreciation and amortization.
First half adjusted net income grew 32.9% to $41.7 million, from $31.4 million in the same period in 2023. Adjusted basic earnings per share climbed 31.4% to $1.84, from $1.40 in the prior-year period.
About ADENTRA
ADENTRA is one of North America's largest distributors of architectural building products to the residential, repair and remodel, and commercial construction markets. The Company operates a network of 82 facilities in the United States and Canada. ADENTRA's common shares are listed on the Toronto Stock Exchange under the symbol ADEN.
Non-GAAP and other Financial Measures
In 2024, we revised our calculations of Adjusted net income, Adjusted basic earnings per share, and Adjusted diluted earnings per share to exclude the amortization of acquired intangible assets. The historical presentation of these measures within this news release has also been updated to reflect the revised calculations. We believe that excluding the amortization of acquired intangible assets from these non-GAAP financial measures helps management and investors in understanding our underlying operating performance.
In this news release, reference is made to the following non-GAAP financial measures:
- "Adjusted EBITDA" is EBITDA before long term incentive plan ("LTIP") expense, accrued trade duties, professional fees, and transaction costs. We believe Adjusted EBITDA is a useful supplemental measure for investors, and is used by management, for evaluating our ability to meet debt service requirements and fund organic and inorganic growth, and as an indicator of relative operating performance.
- "Adjusted net income" is net income before LTIP expense, accrued trade duties, professional fees, transaction costs, and amortization of intangible assets acquired in connection with an acquisition. We believe adjusted net income is a useful supplemental measure for investors, and is used by management to assist in evaluating our profitability, our ability to meet debt service and capital expenditure requirements, our ability to generate cash flow from operations, and as an indicator of relative operating performance.
- "EBITDA" is earnings before interest, income taxes, depreciation and amortization, where interest is defined as net finance income (expense) as per the consolidated statement of comprehensive income. We believe EBITDA is a useful supplemental measure for investors, and is used by management, for evaluating our ability to meet debt service requirements and fund organic and inorganic growth, and as an indicator of relative operating performance.
- "Working capital" is accounts receivable, inventory, and prepaid expenses, partially offset by short-term credit provided by suppliers in the form of accounts payable and accrued liabilities. We believe working capital is a useful indicator for investors, and is used by management, for evaluating the operating liquidity available to us.
In this news release, reference is also made to the following non-GAAP ratios: "adjusted basic earnings per share", "adjusted diluted earnings per share", "Adjusted EBITDA margin" and "Leverage Ratio". For a description of the composition of each non-GAAP ratio and how each non-GAAP ratio provides useful information to investors and is used by management, see "Non-GAAP and Other Financial Measures" in the Company's management's discussion and analysis for the quarter ended June 30, 2024 (which is incorporated by reference herein).
Such non-GAAP financial measures and non-GAAP ratios are not standardized financial measures under IFRS and might not be comparable to similar financial measures disclosed by other issuers. For a reconciliation between non-GAAP measures and non-GAAP ratios and the most directly comparable financial measure in our financial statements, please refer to the "Summary of Results".
Forward-Looking Statements
Certain statements in this press release contain forward-looking information within the meaning of applicable securities laws in Canada ("forward-looking information"). The words "anticipates", "believes", "budgets", "could", "estimates", "expects", "forecasts", "intends", "may", "might", "plans", "projects", "schedule", "should", "will", "would" and similar expressions are often intended to identify forward-looking information, although not all forward-looking information contains these identifying words.
The forward-looking information in this press release is included, but not limited to: On an organic basis, we anticipate third quarter Adjusted EBITDA will be similar to what we achieved in Q2 2024; acquisition-based growth is expected to build on that performance as we benefit from the inclusion of Woolf's operations for August and September 2024; overall, the inflation and interest rate hikes of recent years are expected to continue to moderately impact residential, repair and remodel, and commercial construction markets in the second half of 2024; despite this, we expect our strategies will continue to support strong and stable sales volumes as we demonstrated in Q1 and Q2 under similar conditions; the size, scale and sophistication of our business model allows us to implement comprehensive initiatives that drive our success and are difficult to replicate by smaller regional competitors; key strategies include our global sourcing program and vendor management programs that provide us access to branded, exclusive, and semi-exclusive products with attractive terms; additionally, our digital engagement initiatives with customers have been effective, with approximately 20% of our transactions occurring online; our proprietary ADENTRA University training programs further ensure that our team is well-equipped to deliver exceptional service and maintain our competitive edge; these strategies are core components of our Destination 2028 plan, which targets an additional $800 million in run-rate revenues by 2028; the acquisition of Woolf puts us right on pace to achieve this goal and we will continue to evaluate additional acquisition opportunities going forward; as one of the largest distributors of architectural building products in North America with approximately 6% market share, there remains significant opportunity for growth and we maintain a robust pipeline of acquisition targets; over the longer term our business is supported by strong end-market fundamentals, including historic under-building of homes, positive demographic factors, strong home equity, and an aging housing stock; decreases in interest rates could further support end-market demand for our products; we continue to see a multi-year runway for growth in our core repair and remodel, residential, and commercial markets; Excessive Interest and Financing Expenses Limitation ("EIFEL") legislation which limits our ability to deduct interest and increases our expected taxable income in Canada; during the quarter ended June 30, 2024, we recognized $4.3 million (C$5.8 million) of deferred tax assets based on the expected utilization of operating loss carry forwards; we have paid duties of $25.7 million and we believe we may be eligible for a refund on a significant portion of this; and while Commerce's results are provisional and can change upon becoming final, we view this as an encouraging development with potential positive cash flow impacts for 2025.
The forecasts and projections that make up the forward-looking information are based on assumptions which include, but are not limited to: there are no material exchange rate fluctuations between the Canadian and US dollar that affect our performance; the general state of the economy does not worsen; we do not lose any key personnel; there is no labor shortage across multiple geographic locations; there are no circumstances, of which we are aware that could lead to the Company incurring costs for environmental remediation; there are no decreases in the supply of, demand for, or market values of our products that harm our business; we do not incur material losses related to credit provided to our customers; our products are not subjected to negative trade outcomes; we are able to sustain our level of sales and earnings margins; we are able to grow our business long term and to manage our growth; we are able to integrate acquired businesses; there is no new competition in our markets that leads to reduced revenues and profitability; we can comply with existing regulations and will not become subject to more stringent regulations; no material product liability claims; importation of components or other innovative products does not increase and replace products manufactured in North America; our management information systems upon which we are dependent are not impaired; we are not adversely impacted by disruptive technologies; an outbreak or escalation of a contagious disease does not adversely affect our business; and, our insurance is sufficient to cover losses that may occur as a result of our operations.
The forward-looking information is subject to risks, uncertainties and other factors that could cause actual results to differ materially from historical results or results anticipated by the forward-looking information. The factors which could cause results to differ from current expectations include, but are not limited to: exchange rate fluctuations between the Canadian and US dollar could affect our performance; our results are dependent upon the general state of the economy; the impacts of COVID-19, further mutations thereof or other outbreaks of disease, could have significant impacts on our business; we depend on key personnel, the loss of which could harm our business; a labour shortage across multiple geographic locations could harm our business; decreases in the supply of, demand for, or market values of hardwood lumber or sheet goods could harm our business; we may incur losses related to credit provided to our customers; our products may be subject to negative trade outcomes; we may not be able to sustain our level of sales or earnings margins; we may be unable to grow our business long term or to manage any growth; we are unable to integrate acquired businesses; competition in our markets may lead to reduced revenues and profitability; we may fail to comply with existing regulations or become subject to more stringent regulations; product liability claims could affect our revenues, profitability and reputation; importation of components or other innovative products may increase, and replace products manufactured in North America; disruptive technologies could lead to reduced revenues or a change in our business model; we are dependent upon our management information systems; disruptive technologies could lead to reduced revenues or a change in our business model; our information systems are subject to cyber securities risks; our insurance may be insufficient to cover losses that may occur as a result of our operations; an outbreak or escalation of a contagious disease may adversely affect our business; our credit facility affects our liquidity, contains restrictions on our ability to borrow funds, and impose restrictions on distributions that can be made by us and certain of our subsidiaries; the market price of our Shares will fluctuate; there is a possibility of dilution of existing Shareholders; and, other risks described in our Annual Information Form and in our management's discussion and analysis for the year December 31, 2023, each of which are available on the Company's profile at www.sedarplus.ca
This news release contains information that may constitute a "financial outlook" within the meaning of applicable securities laws. The financial outlook has been approved by our management as of the date of this news release. The financial outlook is provided for the purpose of providing readers with an understanding of our anticipated financial performance. Readers are cautioned that the information contained in the financial outlook may not be appropriate for other purposes.
All forward-looking information in this news release is qualified in its entirety by this cautionary statement and, except as may be required by law, we undertake no obligation to revise or update any forward-looking information as a result of new information, future events or otherwise after the date hereof.
Third-Party Information
Certain information contained in this news release includes market and industry data that has been obtained from or is based upon estimates derived from third-party sources, including industry publications, reports and websites. Although the data is believed to be reliable, we have not independently verified the accuracy, currency or completeness of any of the information from third-party sources referred to in this news release or ascertained from the underlying economic assumptions relied upon by such sources. We hereby disclaim any responsibility or liability whatsoever in respect of any third-party sources of market and industry data or information.
SOURCE ADENTRA Inc.
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For further information: Maggie MacDougall - Investor Relations, Phone: (416) 220-7950, Email: [email protected], Website: www.adentragroup.com
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