HIGHLIGHTS
- Revenues of $19.9 million and
$45.3 million for the three-month and
six-month periods ended July 31,
2016, respectively, which are essentially the same as a year
earlier.
- Gross margins, as a percentage of revenues, is up in comparison
to the same period last year.
- Increase in net income during the second quarter and the first
semester ended July 31, 2016,
compared to the same periods a year ago.
- The order book stood at $72.7
million as at July 31,
2016
TERREBONNE, QC, Sept. 14, 2016 /CNW Telbec/ - ADF Group
Inc. ("ADF" or the "Corporation") (TSX: DRX) recorded revenues
of $19.9 million for the second
quarter ended July 31, 2016, up compared with the same
period a year ago. For the six-month period ended July 31, 2016, ADF Group recorded $45.3 million in revenues compared with
$47.7 million during the same quarter
in 2015.
The second-quarter gross margin, as in percentage of revenues,
stood at 15.1% compared with 9.9% for the corresponding period a
year ago. Furthermore, the gross margin during the first semester
ended July 31, 2016, posted an
increase, reaching $9.1 million or
20.1% of revenues, compared with $5.5
million or 11.4% a year ago. Although revenues during the
first six months of the 2017 fiscal year recorded a decrease, the
fabrication hours are generally up, which leads to improved
efficiency throughout its facilities. This efficiency is also
reflected in the margins.
ADF posted a second-quarter net income of $0.2 million ($0.01
per share, basic and diluted) compared with a negative net income
of $0.5 million (-$0.02 per share, basic and diluted) a year ago.
For the six-month period ended July 31,
2016, the Corporation posted a net income of $1.2 million ($0.04
per share, basic and diluted) compared with a negative net income
of $0.5 million (-$0.01 per share, basic and diluted) during the
first semester ended July 31,
2015.
The Corporation's operating activities used cash flows of
$0.6 million in the second
quarter and $2.4 million during
the six-month period ended July 31,
2016. As at July 31, 2016, the
Corporation had a working capital of $24.2 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 July 31, 2016, the
Corporation's backlog stood at $72.7
million, compared with $70.6
million as at January 31,
2016. The contracts on hand on July 31, 2016, will
be carried out between now and the end of the second quarter of
fiscal 2018.
Financial
Highlights
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|
|
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Three
Months
|
Six Months
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Periods ended July
31
|
2016
|
2015
|
2016
|
2015
|
(In thousands of
dollars, and dollars per share)
|
$
|
$
|
$
|
$
|
|
Revenues
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19,861
|
19,063
|
45,301
|
47,745
|
EBITDA
|
1,669
|
475
|
4,712
|
2,313
|
Net income
|
245
|
(537)
|
1,210
|
(480)
|
—
|
Per share (basic and
diluted)
|
0.01
|
(0.02)
|
0.04
|
(0.01)
|
Cash flows from (used
in) operating activities
|
(612)
|
(1,835)
|
(2,378)
|
(3,452)
|
Average number of
outstanding shares (basic, in thousands)
|
32,623
|
32,614
|
32,622
|
32,578
|
Average number of
outstanding shares (diluted, in thousands)
|
32,694
|
32,614
|
32,696
|
32,578
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Outlook
"The U.S. market continues to show encouraging signs, the level
of bids remains high and margins continue to grow. The Corporation
will pursue its goals of growing its order backlog, integrating its
new facilities and expanding its geographic footprint so as to
continue improving its results and thus generate cash" said Mr.
Jean Paschini, Co-Chairman of
the Board of Directors and Chief Executive Officer.
Dividend
On September 13, 2016, ADF Group's
Board of Directors approved the payment of a second semi-annual
dividend of $0.01 per subordinate
voting share and multiple voting share, which will be paid on
October 17, 2016 to shareholders of record as at
September 30, 2016.
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 8 "Non-GAAP Measures" of
the Corporation's Management's Discussion and Analysis for
Three-Month and Six-Month Periods Ended July
31, 2016, 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, SEPTEMBER 14, 2016 AT 10:00 A.M. (Montreal
time)
RESULTS FOR THE THREE-MONTH AND SIX-MONTH PERIODS
ENDED JULY 31, 2016
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TO PARTICIPATE, 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 Wednesday, September 14, 2016
at 1:00 p.m. until midnight Wednesday,
September 21, 2016, by dialing 1-855-859-2056; access code
78814111. The conference
call (audio) will also be available on ADF's Website at
www.adfgroup.com. Members of the media are invited to listen
in.
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SOURCE ADF Group Inc.