PFB Corporation Announces Results for the Second Quarter Ended June 30, 2020, and Declares Quarterly Dividend

STOCK SYMBOL:  PFB

CALGARY, AB, July 30, 2020 /CNW/ - (TSX: PFB) PFB Corporation ("PFB" or the "Corporation") reports its financial results for the second quarter ended June 30, 2020. 

For the three month period ended June 30, 2020, PFB Corporation reports consolidated net income of $3,750,000 and basic earnings of $0.56 per share, as compared to consolidated net income of $3,061,000 and basic earnings of $0.45 per share, in the comparative three month period of 2019.

Consolidated sales were $31,518,000 in the second quarter of 2020 compared to sales of $35,421,000 in the second quarter of 2019, a decrease of $3,903,000 or 11.0%. Gross margin during the period increased by 3.6% to 30.2% from 26.6% in the comparative 2019 period.

For the six month period ended June 30, 2020, net income of $4,096,000 and basic earnings of $0.61 per share, compared to net income of $1,889,000 and basic earnings of $0.28 per share, reported in the comparative six month period of 2019.

Sales in the six month period ended June 30, 2020 decreased to $55,751,000 from sales of $59,534,000 in the comparative six month period of 2019. For the six month period, gross margin was 27.4%, which increased from 23.8% in the comparative 2019 period, or a 3.6% increase.

Adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA)¹ for the second quarter of 2020 was a record high achieved in a second quarter reporting period at $6,278,000 compared with adjusted EBITDA of $5,410,000 in the second quarter of 2019. For the six month period ended June 30, 2020, adjusted EBITDA was $8,187,000 as compared to $5,595,000 in the six month period in 2019.

The Corporation's strong margin performance for the second quarter offset the impact of reduced sales caused by the economic impacts of North American government and health authority actions intended to slow the spread of the novel coronavirus outbreak. The Corporation continued uninterrupted operations in all regions, implemented discretionary spending controls and benefited from lower raw material input costs, all of which contributed to favorable results.

Dividend Payment

The Board of Directors has approved the payment of a regular quarterly dividend of nine cents per common share. The regular quarterly dividend will be paid on August 31, 2020 to shareholders of record on August 17, 2020.

¹Non-IFRS Financial Measures

Adjusted EBITDA is a supplemental measure of performance not defined by International Financial Reporting Standards (IFRS) and, therefore, it does not have any standardized meaning under IFRS. Therefore, the measure is unlikely to be comparable to similar measures presented by other issuers. The reconciliation of Adjusted EBITDA to net income and the reason why we use this measure can be found in Management's Discussion and Analysis (MD&A) for the second quarter ended June 30, 2020, under section 18 titled "Non-IFRS measures". 

About PFB

PFB Corporation has two operating subsidiaries, Plasti-Fab Ltd. that operates in Canada and PFB America Corporation that operates in the United States. The Canadian segment primarily derives its revenues from the sale of expanded polystyrene ("EPS") foam products, which it manufactures at its facilities in Canada. The USA segment primarily derives its revenues from the sale of EPS foam products, customized log and timber structures made at its facilities in the United States which typically include design and installation services that together provide the basis for a bundled sale of its manufactured products. Both segments develop, manufacture and market insulation building products and technologies based on expanded polystyrene technology; that, when used as components of a building envelope, enable residential and commercial structures to be highly energy-efficient. We are also experts in engineered geotechnical applications of our products. PFB building products are used in both new and renovation markets in residential, commercial and industrial projects.    

PFB Corporation is listed for trading on the Toronto Stock Exchange, symbol PFB.

PFB's condensed interim consolidated financial statements and interim MD&A for the three and six month periods ended June 30, 2020 and 2019 will be posted on SEDAR (www.sedar.com) after the market close on July 30, 2020.

SOURCE PFB Corporation

Mirko Papuga, CA, Chief Financial Officer, PFB Corporation, 300, 2891 Sunridge Way NE, Calgary, Alberta T1Y 7K7, Tel: [phone], Fax: [phone]

Related Links

http://www.pfbcorp.com