HIGHLIGHTS
- Revenues are up compared with the same periods a year ago
- Net income recorded during the three-month and nine-month periods ended October 31, 2015
- Order backlog totalling close to $90.0 million as at October 31, 2015
- Construction of a new paint shop at ADF's Terrebonne Facilities
TERREBONNE, QC, Dec. 10, 2015 /CNW Telbec/ - ADF GROUP INC. ("ADF" or the "Corporation") (TSX: DRX), closed the third quarter of the 2016 fiscal year with revenues of $21.3 million, up by $8.8 million compared to those for the same quarter of the previous fiscal year. For the nine-month period ended October 31, 2015, ADF Group recorded revenues of $69.0 million, compared with $57.3 million during the same period of the previous year. The variation in revenues is explained by the schedule acceleration of a major project underway in New York and the start of fabrication with regard to recently announced projects.
The third-quarter gross margin, as a percentage of revenues, stood at 21.2% compared with 6.2% for the corresponding quarter the previous year, whereas the gross margin for the nine-month period ended October 31, 2015 stood at 14.4% compared with 10.1% a year earlier. These increases are mainly explained by the revenue mix and a better absorption of the fixed costs related to fabrication, in line with the volume at both our fabrication plants.
ADF posted a third-quarter net income of $1.0 million ($0.03 per share, basic and diluted), compared with a net loss of $1.1 million ($0.04 per share, basic and diluted) a year ago. For the nine-month period, the net income was $0.6 million ($0.02 per share, basic and diluted), compared with a net loss of $1.0 million ($0.03 per share, basic and diluted) for the corresponding period of the previous year.
The Corporation's operating activities generated cash flows of $1.1 million in the third quarter ended October 31, 2015, and used cash flows of $2.4 million during the nine-month period ended October 31, 2015. As at October 31, 2015, the Corporation had a working capital of $23.9 million, including short-term available liquidities (cash, cash equivalents and short-term investments) of $5.4 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 October 31, 2015, the Corporation backlog stood at $89.4 million compared with $46.0 million as at October 31, 2014. These projects will be completed by the end of the fiscal year ending January 31, 2017.
| Financial Highlights |
||||
| Three Months |
Nine Months |
|||
| Periods ended October 31, |
2015 |
2014 |
2015 |
2014 |
| (In thousands of dollars, and dollars per share) |
$ |
$ |
$ |
$ |
| Revenues |
21,260 |
12,471 |
69,005 |
57,308 |
| EBITDA |
2,848 |
(511) |
5,161 |
1,391 |
| Net income |
1,041 |
(1,140) |
561 |
(1,016) |
| — Per share (basic and diluted) |
0.03 |
(0.04) |
0.02 |
(0.03) |
| Cash flows from (used in) operating activities |
1,051 |
4,411 |
(2,401) |
(6,869) |
| Average number of outstanding shares (basic, in thousands) |
32,625 |
32,501 |
32,594 |
32,495 |
| Average number of outstanding shares (diluted, in thousands) |
32,708 |
32,501 |
32,833 |
32,495 |
New Orders
On November 2, 2015, ADF announced a series of new contracts, totalling $49.0 million, most of which in the U.S. East Coast and in Quebec. ADF was mandated to fabricate and erect steel structures for different industrial and commercial buildings, as well as heavy and complex steel components for transport infrastructure projects. A certain number of these steel constructions also require special surface treatment. The execution of these projects is scheduled to extend over a period of one year.
Since the beginning of the 2016 fiscal year, ADF has announced $95.0 million in new contracts.
New Paint Shop at ADF's Terrebonne Facilities
On November 2, 2015, ADF also announced the construction of a new paint shop at its own fabrication complex in Terrebonne, Quebec. This development project represents a strategic $6.0 million investment as it will provide ADF with the tools to tap into new market sectors through the addition of new products and services of its overall offer.
Outlook
"The contract awards we announced in the beginning of November, totalling close to $50.0 million and the construction a new 3,900 square-meter (42,000-square-foot) paint shop at our Terrebonne complex attest to our commitment to grow our business and move forward" indicated Mr. Jean Paschini, Co-Chairman of the Board and Chief Executive Officer.
About ADF Group Inc.
ADF Group Inc. is a North American leader in the design and engineering of connections, fabrication 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 fabrication plants, one in Canada and one in the United States, as well as a paint shop in the United States.
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 interim Management's Discussion and Analysis for the nine-month period ended October 31, 2015 for the definition of this metric and reconciliation to the most comparable IRFS measures.
All amounts are in Canadian dollars, unless otherwise indicated.
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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 / 1 (800) 263-7560; Web Site: www.adfgroup.com
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