ADF Group Inc. announces the results for the third quarter and nine-month period ended October 31, 2017 Français
HIGHLIGHTS
- ADF Group recorded revenues of $37.2 million and $131.1 million for the three-month and nine-month periods ended October 31, 2017, respectively 76% and 98% higher than revenues recorded in the corresponding periods a year ago.
- Net income for the nine-month period ended October 31, 2017, totalled $1.6 million, up compared with the same period last year.
- The order book stood at $115 million as at October 31, 2017.
TERREBONNE, QC, Dec. 7, 2017 /CNW Telbec/ - ADF GROUP INC. ("ADF" or the "Corporation") (TSX: DRX) recorded revenues of $37.2 million for the third quarter of the 2018 fiscal year, compared with $21.1 million for the same quarter a year ago. For the nine-month period closed on October 31, 2017, ADF Group recorded revenues of $131.1 million compared with $66.4 million during the corresponding period in 2016.
The third-quarter gross margin, in percentage of revenues, stood at 6.5% compared with 15.4% for the corresponding period a year ago. For the first nine months ended October 31, 2017, the gross margin reached $11.9 million or 9.1% of revenues, compared with $12.4 million or 18.6% a year ago.
The increase in revenues for the analysed periods stems largely from the increase in business volume, and therefore, the costs incurred on ongoing projects, whereas the decrease in margins is mostly attributable to the drop in prices obtained on recently awarded contracts.
Whereas the Corporation posted a negative third-quarter net income of $0.7 million or $(0.02) per share, basic and diluted) compared with a net income of $36,000 ($0.00 per share, basic and diluted) a year ago, it recorded a net income of $1.6 million ($0.05 per share, basic and diluted) for the nine-month period ended October 31, 2017, posting an increase over the same nine-month period a year ago, when net income reached $1.2 million ($0.04 per share, basic and diluted).
On October 31, 2017, the Corporation's working capital stood at $29.8 million, up by $5.0 million over January 31, 2017. In addition, during the nine-month period ended October 31, 2017, the Corporation generated cash flows from its operating activities of $4.4 million. The Corporation thus remains in a solid position to support its ongoing operations and pursue its development projects.
As at October 31, 2017, the Corporation's backlog stood at $114.9 million, compared with $194.5 million on January 31, 2017. The contracts on hand on October 31, 2017, will be carried out between now and the end of the fiscal year ending January 31, 2019.
| Financial Highlights |
||||
| Three (3) Months |
Nine (9) Months |
|||
| Periods ended October 31, |
2017 |
2016 |
2017 |
2016 |
| (In thousands of dollars, and dollars per share) |
$ |
$ |
$ |
$ |
| Revenues |
37,212 |
21,089 |
131,128 |
66,390 |
| EBITDA |
468 |
1,437 |
5,651 |
6,149 |
| Net income |
(698) |
36 |
1,583 |
1,246 |
| — Per share (basic and diluted) |
(0.02) |
0.00 |
0.05 |
0.04 |
| Cash flows from (used in) operating activities |
(1,971) |
(1,046) |
4,421 |
(3,463) |
| Average number of outstanding shares (basic, in thousands) |
32,635 |
32,627 |
32,632 |
32,624 |
| Average number of outstanding shares (diluted, in thousands) |
32,635 |
32,677 |
32,664 |
32,690 |
Outlook
"Despite the increase in revenues, the third quarter results are disappointing. Our recent results do not alter our growth objectives and testify to our industry's ups and downs. Our long-term outlook remains the same and we maintain our efforts to renew our order backlog" said Mr. Jean Paschini, Co-Chairman of the Board of Directors and Chief Executive Officer.
| Conference Call With Investors ADF Group Senior Management will host a conference call with investors on Thursday, December 7, 2017 at 10:00 a.m. (Eastern time) to discuss the results of the three-month and nine-month periods ended October 31, 2017. To take part in the conference call, please dial 1-866-865-3087 a few minutes prior to the conference call scheduled start time. A replay of the conference call will be available from Thursday, December 7, 2017 at 1:00 p.m. until 11:59 p.m., Thursday, December 14, 2017, by dialing 1-855-859-2056; followed by the access code 2989617. The conference call (audio) will be available on ADF's website at www.adfgroup.com. Members of the media are invited to listen in. |
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 and Nine-Month Periods Ended October 31, 2017, for the definition of this metric and reconciliation to the most comparable IRFS measures.
All amounts are in Canadian dollars, unless otherwise indicated.
SOURCE ADF Group Inc.
ADF Group Inc.: Jean Paschini, Co-Chairman of the Board of Directors and Chief Executive Officer, Tel.: (450) 965-1911; Jean-François Boursier, CPA, CA, Chief Financial Officer; Website : www.adfgroup.com
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