HIGHLIGHTS
- Revenues of $48.6 million, up compared with the same period last year.
- $51 million in new contracts obtained since the end of the first quarter.
- Backlog of $155.5 million as at April 30, 2017, which is almost twice as much than a year ago.
TERREBONNE, QC, June 14, 2017 /CNW Telbec/ - ADF Group Inc. ("ADF" or the "Corporation") (TSX: DRX) recorded revenues of $48.6 million for the first quarter ended April 30, 2017, compared with $25.4 million for the comparable period a year ago. The gross margin, as in percentage of revenues went from 24.1% during the quarter ended April 30, 2016 to 10.7% during the three-month period ended April 30, 2017. This decrease stems from the mix of products in fabrication between the analyzed quarters and the pressure on prices in markets served by ADF Group.
For the first quarter ended April 30, 2017, ADF recorded a net income of $354,000 ($0.01 basic and diluted per share) compared with a net income of $965,000 ($0.03 basic and diluted per share) a year ago.
On April 30, 2017, working capital stood at $24.8 million. The Corporation remains in a good position to support its ongoing operations, pursue its development projects and remunerate its shareholders in accordance with the dividend payment policy.
As at April 30, 2017, the Corporation order book totalled $155.5 million, compared with $194.5 million as at January 31, 2017. These contracts will be progressively completed by the end of the third quarter of the fiscal year ending on January 31, 2019.
Financial Highlights
| Three-Month Periods Ended April 30, |
2017 |
2016 |
| (In thousands of dollars, and dollars per share) |
$ |
$ |
| Revenues |
48,638 |
25,440 |
| EBITDA |
3,081 |
3,043 |
| Net income for the period |
354 |
965 |
| — Per share (basic and diluted) |
0.01 |
0.03 |
| Average number of outstanding shares (basic, in thousands) |
32,627 |
32,621 |
| Average number of outstanding shares (diluted, in thousands) |
32,660 |
32,749 |
New Orders
On May 30, 2017, the Corporation announced the signing a series of commercial agreements valued at $51 million. These new orders were obtained in the U.S. East Coast and West Coast markets and are for the fabrication and the erection of steel structures and heavy steel components that are part of new commercial building projects. These new projects will extend over a 16-month period.
Outlook
"Our first quarter's results are encouraging with the increase in our revenues and the level of our order backlog. The increase in volume will allow us to better absorb our costs and we continue at the same time our work toward further improving our operational efficiency. However, it should be noted that the profitability we aim to achieve on each of our projects depends on the current level of selling prices, which remain under pressure due to the strong local and international competition that exists today across our markets" said Mr. Jean Paschini, Co-Chairman of the Board of Directors and Chief Executive Officer.
Dividend
On April 12, 2017, ADF Group's Board of Directors approved the payment of a semi-annual dividend of $0.01 per share that was paid on May 16, 2017 to shareholders of record as at April 28, 2017.
Annual Meeting of Shareholders
ADF Group Inc. Annual Meeting of Shareholders will be held today, June 14, 2017 at 11:00 a.m. at the Sheraton Hotel, located at 2440, Highway Des Laurentides, in Laval.
About ADF Group Inc.
ADF Group Inc. is a North American leader in the design and engineering of connections, fabrication, including the application of industrial coatings, and installation of complex steel structures, heavy steel built-ups, as well as in miscellaneous and architectural metals for the non-residential infrastructure sector. ADF Group Inc. is one of the few players in the industry capable of handling highly technically complex mega projects on fast-track schedules in the commercial, institutional, industrial and public sectors. The Corporation operates two fabrication plants and two paint shops, in Canada and in the United States, and a Construction Division in the United States, which specializes in the installation of steel structures and other related products.
Forward-Looking Information
This press release contains forward-looking statements reflecting ADF objectives and expectations. These statements are identified by the use of verbs such as "expect" as well as by the use of future or conditional tenses. By their very nature these types of statements involve risks and uncertainty. Consequently, reality may differ from ADF's expectations.
Non-IFRS Measures
Earnings before interest, taxes, depreciation and amortization ("EBITDA") is not a performance measure recognized by IFRS standards, and is not likely to be comparable to similar measures presented by other issuers. Management, as well as investors, consider this to be useful information to assist them in assessing the Corporation's profitability and ability to generate funds to finance its operations. Refer to Section 9 "Non-GAAP Measures" of the Corporation's Management's Discussion and Analysis for Three-Month Period Ended April 30, 2017, for the definition of this metric and reconciliation to the most comparable IRFS measures.
All amounts are in Canadian dollars, unless otherwise indicated.
| CONFERENCE CALL WITH INVESTOR, JUNE 14, 2017 AT 10:00 A.M. (Montreal time)
RESULTS FOR THE THREE-MONTH PERIOD ENDED APRIL 30, 2017 |
| Please dial 1-866-865-3087 a few minutes prior to the conference call scheduled start time.
A replay of this conference call will be available from Wednesday, June 14, 2017, at 1:00 p.m. until midnight Wednesday, June 21, 2017, by dialing 1-855-859-2056; access code 31459181.
The conference call (audio) will also be available on ADF's Website at www.adfgroup.com.
Members of the media are welcome to participate in this call in a listen only mode. |
SOURCE ADF Group Inc.
Jean Paschini, Co-Chairman of the Board of Directors and Chief Executive Officer; Jean-François Boursier, CPA, CA, Chief Financial Officer, Telephone: (450) 965-1911
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