DRX ADF Group Inc

Highlights of the Period

• Revenues are up compared with the same period ended April 30, 2014
• Gross margin is up compared with April 30, 2014
• Order backlog totalling $65.3 million as at April 30, 2015
• Working capital of $18.3 million as at April 30, 2015

TERREBONNE, QC, June 10, 2015 /CNW Telbec/ - ADF Group Inc. ("ADF" or the "Corporation") (TSX: DRX) recorded revenues of $28.7 million for the first quarter ended April 30, 2015, up compared with $24.4 million for the comparable period a year ago.

During the three-month period ended April 30, 2015, the gross margin in dollars, totalling $3.6 million, posted a $.0.7 million increase, compare with the same period ended April 30, 2014, mainly due to the revenue mix and a better absorption of the fixed costs related to fabrication, in line with the volume at both our fabrication plants.  As a percentage of revenues, the gross margin went from 11.6% during the quarter ended April 30, 2014 to 12.4% during the three-month period ended April 30, 2015.

ADF recorded a net income of $57,000 ($0.00 basic and diluted per share) compared with a net income of $0.5 million ($0.01 basic and diluted per share) a year ago.

On April 30, 2015, working capital stood at $18.3 million, including $4.5 million in short-term available liquidities (comprising of cash, cash equivalents and short term investments). The Corporation is in a solid position to support its ongoing operations and remunerate its shareholders in accordance with the dividend payment policy.

Outlook

On April 9, 2015, the Corporation announced having concluded a series of commercial agreements totalling in excess of $46.0 million. All these new orders were awarded in the U.S. East Coast. ADF Group's order backlog totalled $65.3 million on April 30, 2015, and will extend to the spring of 2016.

"Although our revenues posted an increase compared with the same date a year ago, the results for the quarter ended April 30, 2015, are a confirmation that there is still work to be done. The market sale prices remain below the levels we have seen in the past years. Moreover, we are encouraged by the level of activity and the results at our Montana's operations" said Mr. Jean Paschini, Co-Chairman of the Board of Directors and Chief Executive Officer.

Dividend

On April 8, 2015, ADF Group's Board of Directors approved the payment of a semi-annual dividend of $0.01 per share that was paid on May 15, 2015 to shareholders of record as at April 30, 2015.

2015 Annual Meeting of Shareholders

ADF Group Inc. Annual Meeting of Shareholders will be held this morning at 10:30 a.m. at its headquarters in Terrebonne.

About ADF Group Inc.

ADF Group Inc. is a North American leader in the design and engineering of connections, fabrication, including industrial coating, 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. The Corporation operates two 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 Management's Discussion and Analysis for Three-Month Period Ended April 30, 2015, 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