HIGHLIGHTS
- Revenues of $48.6 million, up
compared with the same period last year.
- $51 million in new contracts
obtained since the end of the first quarter.
- Backlog of $155.5 million as at
April 30, 2017, which is almost twice
as much than a year ago.
TERREBONNE, QC, June 14, 2017 /CNW Telbec/ - ADF Group
Inc. ("ADF" or the "Corporation") (TSX: DRX) recorded revenues
of $48.6 million for the first
quarter ended April 30, 2017, compared with $25.4 million for the comparable period a year
ago. The gross margin, as in percentage of revenues went from 24.1%
during the quarter ended April 30,
2016 to 10.7% during the three-month period ended
April 30, 2017. This decrease stems from the mix of
products in fabrication between the analyzed quarters and the
pressure on prices in markets served by ADF Group.
For the first quarter ended April 30,
2017, ADF recorded a net income of $354,000 ($0.01
basic and diluted per share) compared with a net income of
$965,000 ($0.03 basic and diluted per share) a year
ago.
On April 30, 2017, working capital stood at $24.8 million. The Corporation remains in a good
position to support its ongoing operations, pursue its development
projects and remunerate its shareholders in accordance with the
dividend payment policy.
As at April 30, 2017, the
Corporation order book totalled $155.5
million, compared with $194.5
million as at January 31, 2017. These contracts
will be progressively completed by the end of the third quarter of
the fiscal year ending on January 31,
2019.
Financial Highlights
|
|
|
Three-Month Periods
Ended April 30,
|
2017
|
2016
|
(In thousands of
dollars, and dollars per share)
|
$
|
$
|
|
|
|
Revenues
|
48,638
|
25,440
|
EBITDA
|
3,081
|
3,043
|
Net income for the
period
|
354
|
965
|
—
Per share (basic and diluted)
|
0.01
|
0.03
|
Average number of
outstanding shares (basic, in thousands)
|
32,627
|
32,621
|
Average number of
outstanding shares (diluted, in thousands)
|
32,660
|
32,749
|
New Orders
On May 30, 2017, the Corporation
announced the signing a series of commercial agreements valued at
$51 million. These new orders were
obtained in the U.S. East Coast and West Coast markets and are for
the fabrication and the erection of steel structures and heavy
steel components that are part of new commercial building projects.
These new projects will extend over a 16-month period.
Outlook
"Our first quarter's results are encouraging with the increase
in our revenues and the level of our order backlog. The increase in
volume will allow us to better absorb our costs and we continue at
the same time our work toward further improving our operational
efficiency. However, it should be noted that the profitability we
aim to achieve on each of our projects depends on the current level
of selling prices, which remain under pressure due to the strong
local and international competition that exists today across our
markets" said Mr. Jean
Paschini, Co-Chairman of the Board of Directors and
Chief Executive Officer.
Dividend
On April 12, 2017, ADF Group's
Board of Directors approved the payment of a semi-annual dividend
of $0.01 per share that was paid on
May 16, 2017 to shareholders of
record as at April 28, 2017.
Annual Meeting of Shareholders
ADF Group Inc. Annual Meeting of Shareholders will be held
today, June 14, 2017 at 11:00 a.m. at the Sheraton Hotel, located at
2440, Highway Des Laurentides, in Laval.
About ADF Group Inc.
ADF Group Inc. is a North American leader in the design and
engineering of connections, fabrication, including the application
of industrial coatings, 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 two fabrication plants and two
paint shops, in Canada and in
the United States, and a
Construction Division in the United
States, which specializes in the installation of steel
structures and other related products.
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,
2017, 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 INVESTOR, JUNE 14, 2017 AT 10:00 A.M. (Montreal
time)
RESULTS FOR THE
THREE-MONTH PERIOD ENDED APRIL 30, 2017
|
Please dial
1-866-865-3087 a few minutes prior to the conference call
scheduled start time.
A replay of this
conference call will be available from Wednesday, June 14, 2017, at
1:00 p.m. until
midnight Wednesday,
June 21, 2017, by dialing 1-855-859-2056; access code
31459181.
The conference call
(audio) will also be available on ADF's Website at
www.adfgroup.com.
Members of the media
are welcome to participate in this call in a listen only
mode.
|
SOURCE ADF Group Inc.