HIGHLIGHTS
- Revenues of $19.9 million and $45.3 million for the three-month and six-month periods ended July 31, 2016, respectively, which are essentially the same as a year earlier.
- Gross margins, as a percentage of revenues, is up in comparison to the same period last year.
- Increase in net income during the second quarter and the first semester ended July 31, 2016, compared to the same periods a year ago.
- The order book stood at $72.7 million as at July 31, 2016
TERREBONNE, QC, Sept. 14, 2016 /CNW Telbec/ - ADF Group Inc. ("ADF" or the "Corporation") (TSX: DRX) recorded revenues of $19.9 million for the second quarter ended July 31, 2016, up compared with the same period a year ago. For the six-month period ended July 31, 2016, ADF Group recorded $45.3 million in revenues compared with $47.7 million during the same quarter in 2015.
The second-quarter gross margin, as in percentage of revenues, stood at 15.1% compared with 9.9% for the corresponding period a year ago. Furthermore, the gross margin during the first semester ended July 31, 2016, posted an increase, reaching $9.1 million or 20.1% of revenues, compared with $5.5 million or 11.4% a year ago. Although revenues during the first six months of the 2017 fiscal year recorded a decrease, the fabrication hours are generally up, which leads to improved efficiency throughout its facilities. This efficiency is also reflected in the margins.
ADF posted a second-quarter net income of $0.2 million ($0.01 per share, basic and diluted) compared with a negative net income of $0.5 million (-$0.02 per share, basic and diluted) a year ago. For the six-month period ended July 31, 2016, the Corporation posted a net income of $1.2 million ($0.04 per share, basic and diluted) compared with a negative net income of $0.5 million (-$0.01 per share, basic and diluted) during the first semester ended July 31, 2015.
The Corporation's operating activities used cash flows of $0.6 million in the second quarter and $2.4 million during the six-month period ended July 31, 2016. As at July 31, 2016, the Corporation had a working capital of $24.2 million. The Corporation remains in a solid position to support its ongoing operations, pursue its development projects and remunerate its shareholders in accordance with the dividend payment policy.
As at July 31, 2016, the Corporation's backlog stood at $72.7 million, compared with $70.6 million as at January 31, 2016. The contracts on hand on July 31, 2016, will be carried out between now and the end of the second quarter of fiscal 2018.
| Financial Highlights |
|||||
| Three Months |
Six Months |
||||
| Periods ended July 31 |
2016 |
2015 |
2016 |
2015 |
|
| (In thousands of dollars, and dollars per share) |
$ |
$ |
$ |
$ |
|
| Revenues |
19,861 |
19,063 |
45,301 |
47,745 |
|
| EBITDA |
1,669 |
475 |
4,712 |
2,313 |
|
| Net income |
245 |
(537) |
1,210 |
(480) |
|
| — |
Per share (basic and diluted) |
0.01 |
(0.02) |
0.04 |
(0.01) |
| Cash flows from (used in) operating activities |
(612) |
(1,835) |
(2,378) |
(3,452) |
|
| Average number of outstanding shares (basic, in thousands) |
32,623 |
32,614 |
32,622 |
32,578 |
|
| Average number of outstanding shares (diluted, in thousands) |
32,694 |
32,614 |
32,696 |
32,578 |
|
Outlook
"The U.S. market continues to show encouraging signs, the level of bids remains high and margins continue to grow. The Corporation will pursue its goals of growing its order backlog, integrating its new facilities and expanding its geographic footprint so as to continue improving its results and thus generate cash" said Mr. Jean Paschini, Co-Chairman of the Board of Directors and Chief Executive Officer.
Dividend
On September 13, 2016, ADF Group's Board of Directors approved the payment of a second semi-annual dividend of $0.01 per subordinate voting share and multiple voting share, which will be paid on October 17, 2016 to shareholders of record as at September 30, 2016.
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 8 "Non-GAAP Measures" of the Corporation's Management's Discussion and Analysis for Three-Month and Six-Month Periods Ended July 31, 2016, 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, SEPTEMBER 14, 2016 AT 10:00 A.M. (Montreal time) RESULTS FOR THE THREE-MONTH AND SIX-MONTH PERIODS ENDED JULY 31, 2016 |
| TO PARTICIPATE, PLEASE DIAL 1-866-865-3087 A FEW MINUTES BEFORE THE START OF THE CALL. |
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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