SAINT-ÉPHREM-DE-BEAUCE, QC, March 25, 2014 /CNW Telbec/ - Sigma Industries Inc. (TSXV: SSG), a manufacturing company specializing in the production of composite components, announces results for the third quarter of its 2014 fiscal year ended January 25, 2014. The results reflect the sale of the PNS Tech ("PNS") division effective October 1, 2013 and in accordance with IFRS, PNS has been presented as discontinued operations in the Company's unaudited consolidated interim financial statements.
THIRD QUARTER RESULTS
Revenues from continuing operations for the third quarter of fiscal 2014 totalled $12.2 million, up 9.9% from $11.1 million in the third quarter of fiscal 2013. This increase is mainly attributable to a rise of $534,720 in revenues from the heavy-duty truck market as a result of higher year-over-year industry shipments, and to an increase of $399,428 in sales of industrial products reflecting the addition of a new customer in the United States.
Sigma Industries recorded adjusted earnings before interest, taxes, depreciation and amortization from continuing operations ("EBITDA") of ($430,338) in the third quarter of fiscal 2014, versus ($175,962) in the third quarter of last year. This decrease reflects the impact on profitability of a sudden decline in customer orders beginning in December 2013 due to the Company's fixed cost base and higher labour costs at its U.S.-based facility.
The Company concluded the third of fiscal 2014 with a net loss from continuing operations of ($1.2) million, or ($0.11) per basic and diluted share, compared with ($898,641), or ($0.08) per basic and diluted share last year. The net loss, which includes discontinued operations until the sale of PNS, amounted to ($1.2) million, or ($0.11) per basic and diluted share, versus ($729,045), or ($0.06) per basic and diluted share last year.
NINE MONTHS RESULTS
For the nine-month period ended January 25, 2014, revenues from continuing operations stood at $40.0 million, versus $41.7 million for the corresponding period a year earlier. Adjusted EBITDA from continuing operations amounted to $189,487, compared with $1.2 million last year. The net loss from continuing operations was ($2.1) million, or ($0.18) per basic and diluted share, versus ($1.2) million, or ($0.10) per basic and diluted share a year ago. Finally, the net loss reached ($1.8) million, or ($0.16) per basic and diluted share, compared with ($914,889), or ($0.08) per basic and diluted share in the prior year.
SELECTED FINANCIAL INFORMATION
| Consolidated results of operations | Three months ended | Nine months ended | ||||||
| (unaudited, in thousands of Canadian dollars except per-share amounts) | January 25, 2014 | January 26, 2013 | January 25, 2014 | January 26, 2013 | ||||
| $ | $ | $ | $ | |||||
| Revenues from continuing operations | 12,248 | 11,146 | 40,044 | 41,696 | ||||
| Adjusted EBITDA from continuing operations | (430) | (176) | 189 | 1,234 | ||||
| Net income (loss) from continuing operations | (1,239) | (899) | (2,074) | (1,202) | ||||
| Per share (basic and diluted) | (0.11) | (0.08) | (0.18) | (0.10) | ||||
| Net income (loss) | (1,239) | (729) | (1,830) | (915) | ||||
| Per share (basic and diluted) | (0.11) | (0.06) | (0.16) | (0.08) | ||||
| Reconciliation of EBITDA, adjusted EBITDA and net income | Three months ended | Nine months ended | ||||||
| (unaudited, in thousands of Canadian dollars) | January 25, 2014 | January 26, 2013 | January 25, 2014 | January 26, 2013 | ||||
| $ | $ | $ | $ | |||||
| Net income (loss) | (1,239) | (729) | (1,830) | (915) | ||||
| MINUS: | ||||||||
| Net income (loss) from discontinued operations | - | 170 | 244 | 287 | ||||
| Net income (loss) from continuing operations | (1,239) | (899) | (2,074) | (1,202) | ||||
| PLUS (less): | ||||||||
| Income tax expense (recovery) | (1) | - | (22) | - | ||||
| Depreciation and amortization | 308 | 321 | 929 | 986 | ||||
| Financial expenses | 502 | 401 | 1,357 | 1,450 | ||||
| Adjusted EBITDA from continuing operations | (430) | (176) | 190 | 1,410 | ||||
| PLUS (less): | ||||||||
| Foreign exchange loss (gain) | (357) | (7) | (450) | (89) | ||||
| Loss (gain) on disposal of property, plant and equipment | - | 5 | - | 4 | ||||
| EBITDA from continuing operations | (787) | (178) | (260) | 1,149 | ||||
| Consolidated balance sheet data | As at | |||||||
| (in thousands of Canadian dollars) | January 25, 2014 | April 27, 2013 | ||||||
| $ | $ | |||||||
| Total assets | 25,847 | 27,483 | ||||||
| Total liabilities | 24,600 | 24,537 | ||||||
| Shareholders' equity | 1,247 | 2,946 | ||||||
NON-IFRS FINANCIAL MEASURES
The information in this press release includes certain measures that are not financial measures prescribed under IFRS. Sigma Industries uses adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") and earnings before interest, taxes, depreciation and amortization ("EBITDA") in assessing its financial performance. As there is no generally accepted method of calculating these financial measures, they may not be comparable to similar measures reported by other companies. Adjusted EBITDA is earnings before interest, income taxes, depreciation, amortization and other non-operating expenses and revenues, EBITDA consists of adjusted EBITDA plus (minus) foreign exchange loss (gain) and loss (gain) on disposal of property, plant and equipment. These measures do not represent cash flow available for repayment of debt, payment of dividends, reinvestment or other discretionary uses, and should not be considered in isolation or as a substitute for other measures of performance calculated according to IFRS.
ABOUT SIGMA INDUSTRIES
Sigma Industries Inc. (TSX-V: SSG), a manufacturing company specializing in the production of composite components, has four operating subsidiaries and employs 400 people. The Company is active in the heavy-duty truck, coach, transit, machinery and wind energy markets. Sigma sells its products to original equipment manufacturers and distributors in the United States, Canada and Europe.
FORWARD-LOOKING STATEMENTS
This press release contains certain forward-looking statements about the Company. Such forward-looking statements are dependent on a number of factors and are subject to risks and uncertainties. Actual results may differ from those expected. The information contained in this press release is dated March 18, 2014, the date on which management approved the press release. Management does not assume any obligation to update or revise any forward-looking statements, whether as a result of new information or future events, except as required by law.
Note to readers: Complete unaudited condensed interim consolidated financial statements and Management's Discussion & Analysis of Financial Position and Operating Results have been posted on SEDAR and are available at www.sedar.com.
Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: SIGMA INDUSTRIES INC.
Sigma Industries Inc.
Denis Bertrand
President and Chief Executive Officer
418-484-5282
[email protected]
Share this article