- Revenues for the quarter at $7.4
M versus $7.0 M last
year
- 6 point increase in gross margin to 51% of revenues
- Adjusted EBITDA margin of 26% versus 17% on revenues in Q3 -
2011
- Net earnings of $839,000
compared with $552,000, a 52%
increase
- Year-to-date net earnings of $1,511,000 versus $924,000 last year, a 64% increase
QUEBEC CITY, Nov. 7, 2012 /CNW Telbec/ - Novik inc. (TSXV:
NVK) releases today its results for the third quarter of fiscal
year 2012. All amounts are expressed in Canadian dollars unless
otherwise indicated.
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|
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|
|
NOVIK inc. |
|
|
|
|
for the periods ended September
30, 2012 and 2011 |
Third |
Third |
Year to |
Year to |
(in thousands dollars, except for amounts
per share) |
quarter |
quarter |
date |
date |
|
2012 |
2011 |
2012 |
2011 |
|
$ |
$ |
$ |
$ |
Operating results
|
|
|
|
|
|
|
|
|
|
Revenues |
7,362 |
7,001 |
20,143 |
20,506 |
Gross margin |
3,752 |
3,164 |
9,453 |
8,118 |
Earnings before depreciation, stock-based compensation,
financial expenses and income taxes |
1,899 |
1,215 |
4,153 |
3,305 |
Net earnings |
839 |
552 |
1,511 |
924 |
Basic and diluted net earnings per share |
0.017 |
0.011 |
0.031 |
0.019 |
|
|
|
|
|
|
|
|
|
|
NOVIK inc. |
|
|
|
|
|
September 30, |
December 31, |
|
|
(in thousands
dollars, except for amounts per share) |
2012 |
2011 |
|
|
|
$ |
$ |
|
|
Financial position |
|
|
|
|
|
|
|
|
|
Total assets |
25,666 |
25,316 |
|
|
Working capital |
5,241 |
3,362 |
|
|
Total long-term financial liabilities |
8,138 |
9,092 |
|
|
Total liabilities |
11,832 |
13,270 |
|
|
Shareholder's equity |
13,834 |
12,046 |
|
|
Shareholder's equity per
share |
0.28 |
0.25 |
|
|
|
|
|
|
|
Number of shares
outstanding |
48,825,858 |
48,470,858 |
During the course of the third quarter of fiscal
year 2012, Novik recorded revenues of $7.4 M, compared with $7.0 M during the same quarter of the previous
fiscal year. Mr. Gaudreau, Novik's CEO, is particularly proud
to announce that "while sales increased by 6% this quarter compared
to the third quarter 2011, Novik managed to realize a net earnings
of 52% higher than during the same quarter of the previous fiscal
year."
Novik's cumulative revenues, for the first nine
months of 2012, amount to $20.1 M
compared with $20.5 M for the same
period of the previous year. Mr. Gaudreau points out that the
shortfall in sales for the first nine months of 2012 is mostly tied
to an apparent softness in export sales outside North America. As for the North American
sales, they increased by 13% over the period compared to the same
period in 2011.
EARNINGS BEFORE INTEREST, STOCK-BASED
COMPENSATION COSTS, TAXES, DEPRECIATION AND AMORTIZATION ("adjusted
EBITDA")
Earnings before interest, stock-based
compensation costs, taxes, depreciation, and amortization (adjusted
EBITDA) is a measure that has no standardized meaning prescribed by
International Financial Reporting Standards (IFRS). It is
therefore considered to be a non-IFRS measure. Accordingly,
the measure may not be comparable to similar measures presented by
other issuers. This measure is presented and described in
this management report in order to provide shareholders and
potential investors with additional information regarding the
company's liquidity and ability to generate funds to finance its
activities.
For the third quarter of fiscal year 2012,
adjusted EBITDA on revenues increased to 26% compared to 17% for
the same period of the previous fiscal year. Continued operating
improvement, new product introductions and efficient strategic
procurement of raw materials explain this progression in
profitability.
For the nine-month period ended on September 30, 2012, adjusted EBITDA increased by
26% to $4,153,000 compared with
$3,305,000 for the same period of the
previous fiscal year. Adjusted EBITDA on revenues for the
first nine months of 2012 was 21% versus 16% over the corresponding
period of last year. This ratio demonstrates the significant
increase in Novik's operating performance in 2012. The
objective of Novik's management to improve the profitability
threshold was clearly identified at the beginning of the year and
will remain a constant priority.
NET EARNINGS
The company's net earnings for the third quarter
of fiscal year 2012 amounts to $839,000 compared with $552,000 for the same quarter of the previous
fiscal year. This increase in profitability is directly in
line with the same factors previously explained in the adjusted
EBITDA section: better management of production costs, procurement
strategies and new product introductions to the market.
For the nine-month period ended on September 30, 2012, net earnings is $1,511,000 compared with $924,000 for the same period of the previous
fiscal year. This financial result represents a net
improvement of 64% compared with the previous year and is directly
in line with management's objective to maximize profitability.
OUTLOOK
Just like the first two quarters of fiscal year
2012, Novik's current financial performance is positive.
Despite lingering effects on the industry from the latest economic
crisis and pressures on the cost of its raw materials, Novik has
managed to recover quickly to achieve better financial
results. The company has successfully taken advantage of the
opportunities created by the industry's weakness by increasing its
presence with various distribution networks and intends to pursue
this strategy to ensure continued growth in its sales.
At the operational level, we remain on the
lookout for any opportunities to improve our production
costs. Improving our productivity and buying raw materials at
competitive prices are constantly on the agenda with our various
teams in order to be able to generate potential savings.
About NOVIK
Novik (NVK) is a leader in the design,
manufacturer and distribution of innovative polymer exterior
siding, roofing coverings and accessories that replace traditional
materials such as stone, brick or wood shingles. These
products target the world-wide residential and commercial
construction industry.
Forward-looking statements contained in this
press release involve known and unknown risks, uncertainties or
other factors that may cause actual results, performance or
achievements of the company to be materially different from any
future results, performance or achievements expressed or implied by
such forward-looking statements.
SOURCE Novik Inc.