HIGHLIGHTS
- Revenues, at $102.8 million, are
4.8% higher than last year
- Gross margin, as a percentage of revenues, stood at 16.7%,
which is a 2.4% increase compared with a year ago
- New contract awards worth a total of $235 million during the 2017 fiscal year
- Order backlog standing at $194.5
million as at January 31,
2017
TERREBONNE, QC, April 13, 2017 /CNW Telbec/ - ADF GROUP
INC. ("ADF" or the "Corporation") (TSX: DRX) recorded revenues
of $102.8 million during the fiscal
year ended January 31, 2017, up by $4.8
million compared with the previous fiscal year. The change
in revenues results from the increase in the production level at
all of the Corporation's facilities and by the year-to-year
favourable variation in the average exchange rate.
The gross margin as a percentage of revenues went from 14.3%
during the fiscal year ended January 31, 2016 to 16.7%
during the fiscal year ended January 31,
2017. This increase, as a percentage of revenues, is mainly
driven by the increase in the activity level, by a better
absorption of fixed costs and the favourable impact of the foreign
exchange.
ADF Group recorded a net income of $1.5
million ($0.05 basic and
diluted per share) during the fiscal year ended January 31,
2017 compared with a net income of $1.7
million ($0.05 basic and
diluted per share) a year ago.
On January 31, 2017, the Corporation had $24.8 million in working capital. On January 31, 2017, cash and cash equivalents
totalled $334,000, down by
$2.0 million compared with
January 31, 2016. In addition, as at
January 31, 2017, the Corporation
used $13.3 million on its credit
facilities, whereas they were unused as at January 31, 2016. The decrease in available cash
is explained by the start of new major projects for which raw
material purchases, including steel, require significant
liquidities. In spite of this, 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 January 31, 2017, the
Corporation order backlog totalled $194.5
million, compared with $70.6
million as at January 31, 2016. These contracts
will be progressively completed by the end of the second quarter of
the fiscal year ending January 31, 2019.
|
|
Financial
Highlights
|
|
|
|
|
|
Fiscal Years Ended
January 31,
|
2017
|
2016
|
(In thousands of CA$,
and dollars per share)
|
$
|
$
|
|
|
|
Revenues
|
102,846
|
98,089
|
EBITDA
|
8,462
|
7,244
|
Net income for the
year
|
1,499
|
1,699
|
- Basic per
share
|
0.05
|
0.05
|
- Diluted per
share
|
0.05
|
0.05
|
Average number of
outstanding shares (basic, in thousands)
|
32,624
|
32,597
|
Average number of
outstanding shares (diluted, in thousands)
|
32,686
|
32,807
|
|
|
|
Outlook
"Our revenues have surpassed for the first time since the 2004
fiscal year the $100-million mark. We
expect to maintain the growth of our revenues while improving at
the same time our operational efficiency" indicated
Mr. Jean Paschini, Co-Chairman of the Board of
Directors and Chief Executive Officer.
"Managing our working capital requirements will remain a key
element of fiscal 2018, especially during this period of growth of
our order backlog. We have, however, set up credit facilities to
manage this growth" concluded Mr. Paschini.
Dividend
ADF Group announces the payment of a semi-annual dividend of
$0.01 per subordinate voting share
and multiple voting share to be 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
on:
Date:
|
|
Wednesday, June 14,
2017
|
Time:
|
|
11:00 a.m.
|
Place:
|
|
Hotel Sheraton Laval,
2440 des Laurentides, Laval, Quebec
|
Financial results for the first quarter ending April 30, 2017, will also be disclosed at the
Corporation's shareholder meeting.
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 the section "Non-GAAP Measures" of
the Corporation's Management's Discussion and Analysis 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, APRIL 13, 2017 AT 10:00 A.M. (Montreal
time)
RESULTS FOR THE
FISCAL YEAR ENDED JANUARY 31, 2017
|
|
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, April 13, 2017
at 1:00 p.m. until
midnight Thursday, April 20, 2017, by dialing
1-855-859-2056; access code 82085707.
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.
|
CONSOLIDATED
STATEMENTS OF FINANCIAL POSITION
|
|
|
|
|
|
|
As at January
31,
|
2017
|
2016
|
(In thousands of
Canadian dollars)
|
$
|
$
|
|
|
|
ASSETS
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
334
|
2,377
|
|
Accounts
receivable
|
22,326
|
23,146
|
|
Holdbacks on
contracts
|
3,613
|
1,693
|
|
Income tax
assets
|
842
|
―
|
|
Work in
progress
|
21,077
|
7,521
|
|
Inventories
|
6,957
|
6,180
|
|
Derivative financial
instruments
|
696
|
―
|
|
Prepaid expenses and
other current assets
|
1,137
|
1,889
|
|
Total current
assets
|
56,982
|
42,806
|
|
|
|
|
Non-current
assets
|
|
|
|
Property, plant and
equipment
|
90,060
|
91,067
|
|
Intangible
assets
|
2,920
|
2,871
|
|
Other non-current
assets
|
3,406
|
3,337
|
|
Deferred income tax
assets
|
5,316
|
6,390
|
Total
assets
|
158,684
|
146,471
|
LIABILITIES
|
|
|
Current
liabilities
|
|
|
|
Credit
facilities
|
13,336
|
―
|
|
Accounts payable and
other current liabilities
|
16,585
|
17,772
|
|
Income tax
liability
|
184
|
49
|
|
Deferred
revenues
|
1,264
|
2,753
|
|
Derivative financial
instruments
|
―
|
403
|
|
Current portion of
long-term debt
|
844
|
868
|
|
Total current
liabilities
|
32,213
|
21,845
|
|
|
|
|
Non-current
liabilities
|
|
|
|
Long-term
debt
|
17,870
|
14,351
|
|
Deferred income tax
liabilities
|
2,951
|
2,742
|
Total
liabilities
|
53,034
|
38,938
|
SHAREHOLDERS'
EQUITY
|
|
|
|
Capital
stock
|
68,088
|
68,077
|
|
Contributed
surplus
|
6,422
|
6,397
|
|
Accumulated other
comprehensive income (loss)
|
6,741
|
9,507
|
|
Retained
income
|
24,399
|
23,552
|
Total shareholders'
equity
|
105,650
|
107,533
|
Total liabilities and
shareholders' equity
|
158,684
|
146,471
|
|
|
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
|
|
|
|
|
Fiscal Years Ended
January 31,
|
2017
|
2016
|
(In thousands of
Canadian dollars and in dollars per share)
|
$
|
$
|
|
|
|
Revenues
|
102,846
|
98,089
|
Cost of goods
sold
|
85,635
|
84,069
|
Gross
Margin
|
17,211
|
14,020
|
Selling and
administrative expenses
|
13,436
|
11,391
|
Financial
revenues
|
(49)
|
(79)
|
Financial
expenses
|
1,057
|
574
|
Other losses
(gains)
|
254
|
(653)
|
|
14,698
|
11,233
|
Income before income
tax expense
|
2,513
|
2,787
|
Income tax
expense
|
1,014
|
1,088
|
Net income for the
year
|
1,499
|
1,699
|
Earnings per
share
|
|
|
|
Basic and diluted per
share
|
0.05
|
0.05
|
Average number of
outstanding shares (in thousands)
|
32,624
|
32,597
|
Average number of
outstanding diluted shares (in thousands)
|
32,686
|
32,807
|
|
|
|
CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
|
|
|
|
|
|
|
Fiscal Years Ended
January 31,
|
2017
|
2016
|
(In thousands of
Canadian dollars)
|
$
|
$
|
|
|
|
Net income for the
year
|
1,499
|
1,699
|
Other comprehensive
income (loss) (a) :
|
|
|
|
Exchange differences
on translation of foreign operations
|
(2,816)
|
3,672
|
|
Change in value of
available-for-sale financial assets (b)
|
50
|
―
|
|
(2,766)
|
3,672
|
Comprehensive income
(loss) for the year
|
(1,267)
|
5,371
|
|
|
|
a)
|
Will subsequently be
reclassified to net income.
|
b)
|
Net of an immaterial
amount related income tax expense for the fiscal year ended January
31, 2017.
|
CONSOLIDATED
STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Capital
Stock
|
Contributed
Surplus
|
Accumulated
Other
Comprehensive
Income (Loss)
|
Retained
Income
|
Total
|
(In thousands of
Canadian dollars)
|
$
|
$
|
$
|
$
|
$
|
|
|
|
|
|
|
Balance, February 1,
2015
|
69,185
|
6,433
|
5,835
|
22,505
|
103,958
|
Net income for the
year
|
―
|
―
|
―
|
1,699
|
1,699
|
Other comprehensive
income (loss)
|
―
|
―
|
3,672
|
―
|
3,672
|
Comprehensive income
(loss) for the year
|
―
|
―
|
3,672
|
1,699
|
5,371
|
Share-based
compensation
|
―
|
44
|
―
|
―
|
44
|
Redemption of
subordinate voting shares
|
(2,282)
|
364
|
―
|
―
|
(1,918)
|
Options
exercised
|
1,174
|
(444)
|
―
|
―
|
730
|
Dividends
|
―
|
―
|
―
|
(652)
|
(652)
|
Balance,
January 31, 2016
|
68,077
|
6,397
|
9,507
|
23,552
|
107,533
|
|
|
|
|
|
|
|
Capital
Stock
|
Contributed
Surplus
|
Accumulated
Other
Comprehensive
Income
(Loss)
|
Retained
Income
|
Total
|
(In thousands of
Canadian dollars)
|
$
|
$
|
$
|
$
|
$
|
|
|
|
|
|
|
Balance, February 1,
2016
|
68,077
|
6,397
|
9,507
|
23,552
|
107,533
|
Net income for the
year
|
―
|
―
|
―
|
1,499
|
1,499
|
Other comprehensive
income (loss)
|
―
|
―
|
(2,766)
|
―
|
(2,766)
|
Comprehensive income
(loss) for the year
|
―
|
―
|
(2,766)
|
1,499
|
(1,267)
|
Share-based
compensation
|
―
|
30
|
―
|
―
|
30
|
Options
exercised
|
11
|
(5)
|
―
|
―
|
6
|
Dividends
|
―
|
―
|
―
|
(652)
|
(652)
|
Balance,
January 31, 2017
|
68,088
|
6,422
|
6,741
|
24,399
|
105,650
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
Fiscal Years Ended
January 31,
|
2017
|
2016
|
(In thousands of
Canadian dollars)
|
$
|
$
|
|
|
|
OPERATING
ACTIVITIES
|
|
|
|
Net income for the
year
|
1,499
|
1,699
|
|
Non-cash
items:
|
|
|
|
|
Amortization of
property, plant and equipment
|
4,326
|
4,294
|
|
|
Amortization of
intangible assets
|
361
|
321
|
|
|
Gain on disposal of
property, plant and equipment
|
―
|
(618)
|
|
|
Unrealized gain on
derivative financial instruments
|
(1,099)
|
(712)
|
|
|
Non-cash exchange
loss (gain)
|
683
|
(709)
|
|
|
Share-based
compensation
|
951
|
44
|
|
|
Income tax
expense
|
1,014
|
1,088
|
|
|
Inventories
depreciation allowance
|
209
|
―
|
|
|
Financial
revenues
|
(49)
|
(79)
|
|
|
Financial
expenses
|
1,057
|
574
|
|
Net income adjusted
for non-cash items
|
8,952
|
5,902
|
|
Changes in non-cash
working capital items (1)
|
(18,686)
|
(7,059)
|
|
Income tax
paid
|
(901)
|
―
|
Cash flows from (used
in) operating activities
|
(10,635)
|
(1,157)
|
INVESTING
ACTIVITIES
|
|
|
|
Disposal of
short-term investments
|
―
|
778
|
|
Net acquisition of
property, plant and equipment
|
(6,809)
|
(8,591)
|
|
Revenues from
disposals of property, plant and equipment
|
―
|
1,457
|
|
Acquisition of
intangible assets
|
(410)
|
(411)
|
|
(Increase) decrease
in other non-current assets
|
(12)
|
641
|
|
Interest
received
|
49
|
96
|
Cash flows from (used
in) investing activities
|
(7,182)
|
(6,030)
|
FINANCING
ACTIVITIES
|
|
|
|
Variation in credit
facilities
|
13,329
|
―
|
|
Issuance of long-term
debt
|
5,000
|
5,000
|
|
Financing costs
relating to the debt
|
―
|
(107)
|
|
Repayment of
long-term debt
|
(816)
|
(772)
|
|
Redemption of
subordinate voting shares
|
―
|
(1,918)
|
|
Issuance of
subordinate voting shares
|
6
|
730
|
|
Dividends
paid
|
(652)
|
(652)
|
|
Interest
paid
|
(1,040)
|
(552)
|
Cash flows from (used
in) financing activities
|
15,827
|
1,729
|
Impact of
fluctuations in foreign exchange rate on cash flow
|
(53)
|
(111)
|
Net change in cash
and cash equivalents during the fiscal year
|
(2,043)
|
(5,569)
|
Cash and cash
equivalents, beginning of year
|
2,377
|
7,946
|
Cash and cash
equivalents, end of year
|
334
|
2,377
|
|
|
|
(1)
|
The following table
sets out in detail the components of the "Changes in non-cash
working capital items":
|
|
|
|
|
|
|
Fiscal Years Ended
January 31,
|
2017
|
2016
|
(In thousands of
CA$)
|
$
|
$
|
|
|
|
|
Accounts
receivable
|
13
|
(8,008)
|
|
Holdbacks on
contracts
|
(1,895)
|
2,636
|
|
Work in
progress
|
(13,688)
|
(399)
|
|
Inventories
|
(1,057)
|
(309)
|
|
Prepaid expenses and
other current assets
|
688
|
(139)
|
|
Accounts payable and
other current liabilities
|
(1,310)
|
651
|
|
Deferred
revenues
|
(1,437)
|
(1,491)
|
Changes in non-cash
working capital items
|
(18,686)
|
(7,059)
|
|
|
|
SEGMENTED INFORMATION
The Corporation operates in the non-residential construction
industry, primarily in the United
States and Canada. Its
operations include the design and engineering of connections,
fabrication, including industrial coating, and installation of
complex steel structures, heavy steel built-ups, as well as
miscellaneous and architectural metalwork.
|
|
|
|
|
|
Fiscal Years Ended
January 31,
|
2017
|
2016
|
(In thousands of
CA$)
|
$
|
$
|
|
|
|
Revenues
|
|
|
|
Canada
|
17,957
|
22,368
|
|
United
States
|
84,889
|
75,721
|
|
102,846
|
98,089
|
|
|
|
|
|
|
|
|
|
As at January
31,
|
2017
|
2016
|
(In thousands of
CA$)
|
$
|
$
|
|
|
|
Non-current assets
(1)
|
|
|
|
Canada
|
50,110
|
47,480
|
|
United
States
|
46,276
|
49,795
|
|
96,386
|
97,275
|
|
|
|
(1)
|
The non-current
assets mainly include property, plant and equipment, intangible
assets, investment tax credits and others non-current
assets.
|
Revenues from external clients were allocated to each country on
the basis of the project's location.
During the fiscal year ended January 31, 2017, 60% of
the Corporation's revenues were realized with two (2) clients, for
respective amounts of $36.8 million
from the United States and
$24.3 million from the United States and Canada, one (1) of whom was part of the
Corporation's revenues concentration during the fiscal year ended
January 31, 2016.
During the fiscal year ended January 31, 2016, 70% of
the Corporation's revenues were realized with three (3) clients,
for respective amounts of $30.5
million from the United
States, $24.5 million from
the United States and Canada, and $13.3
million from Canada, one
(1) of whom was part of the Corporation's revenues concentration
during the fiscal year ended January 31,
2015.
SOURCE ADF Group Inc.