HIGHLIGHTS
- ADF Group signed $175 million
worth in new contracts during the third quarter.
- The order book reached $216
million as at October 31, 2016
; a new high since January 2003
- Revenues totalled $66.4 million
for the nine-month periods ended October 31,
2016, slightly below revenues recorded during the same
period a year earlier.
- Increase in net income during the nine-month period ended
October 31, 2016, compared with the
same period a year ago.
TERREBONNE, QC, Dec. 8, 2016 /CNW Telbec/ - ADF Group Inc.
("ADF" or the "Corporation") (TSX: DRX) recorded revenues of
$21.1 million for the third quarter
ended October 31, 2016, almost similar to the same period
a year ago. For the nine-month period ended October 31, 2016, ADF Group recorded $66.4 million in revenues compared with
$69.0 million during the same period
in 2015.
The third-quarter gross margin, as in percentage of revenues,
stood at 15.4% compared with 21.2% for the corresponding period a
year ago. Furthermore, the gross margin during the first nine-month
period ended October 31, 2016, posted
an increase, reaching $12.4 million
or 18.6% of revenues, compared with $10.0
million or 14.4% a year ago.
ADF posted a third-quarter net income of $36,000 ($0.00 per
share, basic and diluted) compared with a net income of
$1.0 million ($0.03 per share, basic and diluted) a year ago.
For the nine-month period ended October 31,
2016, the Corporation posted a net income of $1.2 million ($0.04
per share, basic and diluted) compared with a net income of
$0.6 million ($0.02 per share, basic and diluted) during the
nine-month period ended October 31,
2015.
The Corporation's operating activities used cash flows of
$1.0 million in the third
quarter and $3.5 million during
the nine-month period ended October 31,
2016. As at October 31, 2016,
the Corporation had a working capital of $24.0 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, 2016, the
Corporation's backlog stood at $215.8
million, compared with $70.6
million as at January 31, 2016. The contracts on
hand on October 31, 2016, will be carried out between now
and the end of the second quarter of fiscal 2019.
Financial
Highlights
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Three
Months
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Nine
Months
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Periods ended October
31
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2016
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2015
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2016
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2015
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(In thousands of
dollars, and dollars per share)
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$
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$
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$
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$
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Revenues
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21,089
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21,260
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66,390
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69,005
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EBITDA
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1,437
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2,848
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6,149
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5,161
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Net income
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36
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1,041
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1,246
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561
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- Per share (basic and diluted)
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0.00
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0.03
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0.04
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0.02
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Cash flows from (used
in) operating activities
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(1,046)
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1,051
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(3,463)
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(2,401)
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Average number of
outstanding shares (basic, in thousands)
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32,627
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32,625
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32,624
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32,594
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Average number of
outstanding shares (diluted, in thousands)
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32,677
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32,708
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32,690
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32,833
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New Orders
During the quarter ended October 31,
2016, the Corporation signed $175
million in new contracts in the
United States, amongst which the contract at the new
Salt Lake City International
Airport. This contract is one of the most important contract ever
won by ADF in North America, in
terms of value. The other contracts announced by ADF were won in
the commercial building sector in Florida and in the US Northeast and Midwest
transport infrastructure sector. These new contracts are scheduled
to extend between the end of the current fiscal year and the second
quarter of ADF Group's 2019 fiscal year.
Outlook
"We have announced $175 million
worth in new contracts during the quarters, bringing our order
backlog over the $200-million mark
for the first time since January
2003. We are pursuing our efforts to grow our order
backlog.
At the same time, and following a global review of our business
processes, we have begun the implementation of our new business
plan, which aims, among other things, to optimize our five
operational units in Terrebonne,
Great Falls and Florida. All these measures will allow us to
reach our goals of growth and cash generation, while maintaining
the level of operational excellence for which our Corporation is
known for, for over 60 years" said Mr. Jean Paschini, Co-Chairman of the Board of
Directors and Chief Executive Officer.
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 and Nine-Month Periods Ended October 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, DECEMBER 8, 2016 AT 10:00 A.M. (Montreal
time)
RESULTS FOR THE
THREE-MONTH AND NINE-MONTH PERIODS ENDED OCTOBER 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 Thursday,
December 8, 2016
at 1:00 p.m. until
11:30 p.m., Thursday, December 15, 2016, by dialing
1-855-859-2056; access code 22666157.
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.