HIGHLIGHTS
- ADF Group recorded revenues of $45.3
million and $93.9 million for
the three-month and six-month periods ended July 31, 2017, respectively, which is more than
double the revenues recorded in the corresponding periods a year
ago.
- Net income for the three-month and six-month periods ended
July 31, 2017, is up compared with
the same periods last year.
- The order book stood at $135.1
million as at July 31,
2017.
TERREBONNE, QC, Sept. 14, 2017 /CNW/ - ADF GROUP INC.
("ADF" or the "Corporation") (TSX: DRX) recorded revenues of
$45.3 million for the second quarter
of the 2018 fiscal year, compared with $19.9
million for the same period a year ago. For the six-month
period closed on July 31, 2017, ADF
Group recorded revenues of $93.9
million compared with $45.3
million during the corresponding period in 2016.
The second-quarter gross margin, as in percentage of revenues,
stood at 9.5% compared with 15.1% for the corresponding period a
year ago. For the first semester ended July
31, 2017, the gross margin reached $9.5 million or 10.1% of revenues, compared with
$9.1 million or 20.1% a year ago.
The increase in revenues for the analysed periods stems largely
from the activity level, and therefore, the costs incurred on
projects that are underway, whereas the decrease in margins is
mostly attributable to the drop in prices obtained on recently
awarded contracts.
ADF posted a second-quarter net income of $1.9 million ($0.06
per share, basic and diluted) compared with a net income of
$0.2 million ($0.01 per share, basic and diluted) a year ago.
For the six-month period ended July 31,
2017, the Corporation posted a net income of $2.3 million ($0.07
per share, basic and diluted) compared with a net income of
$1.2 million ($0.04 per share, basic and diluted) for the first
semester ended July 31, 2016.
On July 31, 2017, the Corporation's working capital stood
at $32.1 million, up by $7.3 million over January
31, 2017. In addition, during the three-month and six-month
periods ended July 31, 2017, the
Corporation generated cash flows from its operating activities of
$8.4 million and $6.2 million, respectively. The Corporation thus
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, 2017, the
Corporation's backlog stood at $135.1
million, compared with $194.5
million on January 31, 2017. The contracts on hand
on July 31, 2017, will be carried out between now and the
end of the fiscal year ending January 31,
2019.
Financial Highlights
|
Three (3)
Months
|
Six (6)
Months
|
|
|
|
|
|
|
|
|
|
|
|
Periods ended July
31,
|
2017
|
2016
|
2017
|
2016
|
|
(In thousands of
dollars, and dollars per share)
|
$
|
$
|
$
|
$
|
|
Revenues
|
45,278
|
19,861
|
93,916
|
45,301
|
|
EBITDA
|
2,102
|
1,669
|
5,183
|
4,712
|
|
Net income
|
1,927
|
245
|
2,281
|
1,210
|
|
— Per share (basic
and diluted)
|
0.06
|
0.01
|
0.07
|
0.04
|
|
Cash flows from (used
in) operating activities
|
8,420
|
(612)
|
6,231
|
(2,378)
|
|
Average number of
outstanding shares (basic, in thousands)
|
32,635
|
32,623
|
32,631
|
32,622
|
|
Average number of
outstanding shares (diluted, in thousands)
|
32,671
|
32,694
|
32,666
|
32,696
|
|
|
|
|
|
Outlook
"Standing at close to $94.0
million, revenues for the first six months of the current
fiscal year are almost at the same level as the annual revenues
recorded during the fiscal year ended on January 31, 2017. This increase is the result of
our hard work aiming at growing our order backlog," said Mr.
Jean Paschini, Co-Chairman of
the Board of Directors and Chief Executive Officer.
Dividend
On September 13, 2017, ADF Group's
Board of Directors approved the payment of a semi-annual dividend
of $0.01 per share, which will be
paid on October 17, 2017 to shareholders of record as at
September 29, 2017.
|
Conference Call
With Investors
ADF Group Senior
Management will host a conference call with investors on Thursday,
September 14, 2017 at 10:00 a.m. (Eastern time) to discuss the
results of the three-month and six-month periods ended July 31,
2017.
To take part in
the conference call, please dial 1-866-865-3087 a few
minutes prior to the conference call scheduled start time.
A replay of the
conference call will be available from Thursday, September 14, 2017
at 1:00 p.m. until midnight, Thursday, September 21, 2017, by
dialing 1-855-859-2056; followed by the access code 7 8 4
9 8 5 8 9. The conference call (audio) will be available on
ADF's website at www.adfgroup.com.
Members of the
media are invited to listen in.
|
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 Six-Month Periods Ended July
31, 2017, for the definition of this metric and
reconciliation to the most comparable IRFS measures.
All amounts are in Canadian dollars, unless otherwise
indicated.
SOURCE ADF Group Inc.