DRX ADF Group Inc

TERREBONNE, QC, June 12, 2013 /CNW Telbec/ - ADF GROUP INC. ("ADF" or the "Corporation") (DRX: TSX) closed the first quarter of the 2014 fiscal year with revenues of $12.3 million compared with $12.5 million during the same period the previous fiscal year.

As a percentage of revenues, the gross margin decreased from 14.7% during the three-month period ended April 30, 2012 to 11.3% during the three-month period ended April 30, 2013. This decrease is mainly explained by the fact that the newly signed contracts, which are currently in their early execution stage, carry lower margins than those generated last year by the World Trade Center projects. It should be noted that the gross profit margin for the quarter ended April 30, 2013, which was similar to those of the past quarters, also reflects the persistent pressure exerted on prices in ADF's markets.

The Corporation closed the first quarter ended April 30, 2013 with a negative net income of $0.3 million ($0.01 basic and diluted per share), as opposed to a slight net income of $0.1 million ($0.00 basic and diluted per share) in the same period the previous year.

During the first quarter, the Corporation's operating activities generated liquidities of $62,000. As at April 30, 2013, the Corporation had working capital of $31.4 million, of which $23.0 million in short-term available liquidities (cash, cash equivalents and short-term investments). Available liquidities thus exceeded the Corporation's total debt by $20.0 million, placing the Corporation in a solid position to support its ongoing operations, carry out its development projects and remunerate its shareholders in accordance with the dividend payment policy implemented at the beginning of fiscal 2012.

Financial Highlights

New Contract

On March 20, 2013, ADF announced the award of a $46.6 million contract for the fabrication and installation of the steel structure for Quebec City's future multipurpose amphitheatre. This contract will contribute to the Corporation's results as of the second half of the current fiscal year, in view of its final delivery scheduled for the second quarter of the 2015 fiscal year.

ADF Group's order backlog reached $72.0 million as of April 30, 2013 compared with $34.0 million on January 31, 2013.

Outlook

"During the third quarter ended April 30, 2013, in addition to increasing our backlog, we also achieved significant progress in regard to our plan to set up a fabrication plant in Great Falls, Montana. The site layout work and construction of the infrastructures are underway and we have already hired key personnel. We still aim to bring our new facility on-stream by early 2014" added Mr. Jean Paschini, Chairman of the Board and Chief Executive Officer.

"As we are witnessing early signs of a recovery in several of our key markets in North America, we are stepping up our efforts to build up the order backlogs of both our Terrebonne plant and future Great Falls plants, in order for further strengthen ADF's position for the next economic upturn", concluded Mr. Paschini.

Dividend

On April 10, 2013, the Corporation's Board of Directors approved the payment of a semi-annual dividend of $0.01 per share, which was paid on May 17, 2013 to shareholders of record as at April 30, 2013.

Annual Meeting of Shareholders

ADF Group's Annual Meeting of Shareholders will take place this morning, June 12, 2013 at 11:00 am at the Sheraton Hotel in Laval.

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 construction industry. 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.

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.

All amounts are in Canadian dollars, unless otherwise indicated.

SOURCE ADF Group Inc.