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.
CONFERENCE CALL
WITH INVESTORS
To discuss ADF Group's results for the three-month and
nine-month periods ended October 31, 2015,
December 10, 2015 at 10:00 a.m. (Montreal time)
To participate in the conference call, please dial
1-866-865-3087 a few minutes before the start of the
call.
For those unable to participate, a taped rebroadcast will be
available from
Thursday, December 10, 2015 at 1:00 p.m. until midnight Thursday,
December 17, 2015,
by dialing 1-855-859-2056; access code 72006871.
The conference call (audio) will also be available at
www.adfgroup.com
Members of the media are invited to listen in.
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SOURCE ADF Group Inc