HIGHLIGHTS
- ADF Group recorded revenues of $37.2
million and $131.1 million for
the three-month and nine-month periods ended October 31, 2017, respectively 76% and 98% higher
than revenues recorded in the corresponding periods a year
ago.
- Net income for the nine-month period ended October 31, 2017, totalled $1.6 million, up compared with the same period
last year.
- The order book stood at $115
million as at October 31,
2017.
TERREBONNE, QC, Dec. 7, 2017 /CNW Telbec/ - ADF GROUP INC.
("ADF" or the "Corporation") (TSX: DRX) recorded revenues of
$37.2 million for the third quarter
of the 2018 fiscal year, compared with $21.1
million for the same quarter a year ago. For the nine-month
period closed on October 31, 2017,
ADF Group recorded revenues of $131.1
million compared with $66.4
million during the corresponding period in 2016.
The third-quarter gross margin, in percentage of revenues, stood
at 6.5% compared with 15.4% for the corresponding period a year
ago. For the first nine months ended October
31, 2017, the gross margin reached $11.9 million or 9.1% of revenues, compared with
$12.4 million or 18.6% a year
ago.
The increase in revenues for the analysed periods stems largely
from the increase in business volume, and therefore, the costs
incurred on ongoing projects, whereas the decrease in margins is
mostly attributable to the drop in prices obtained on recently
awarded contracts.
Whereas the Corporation posted a negative third-quarter net
income of $0.7 million or
$(0.02) per share, basic and diluted)
compared with a net income of $36,000
($0.00 per share, basic and diluted)
a year ago, it recorded a net income of $1.6
million ($0.05 per share,
basic and diluted) for the nine-month period ended October 31, 2017, posting an increase over the
same nine-month period a year ago, when net income reached
$1.2 million ($0.04 per share, basic and diluted).
On October 31, 2017, the Corporation's working capital
stood at $29.8 million, up by
$5.0 million over January
31, 2017. In addition, during the nine-month period ended
October 31, 2017, the Corporation
generated cash flows from its operating activities of $4.4 million. The Corporation thus remains in a
solid position to support its ongoing operations and pursue its
development projects.
As at October 31, 2017, the
Corporation's backlog stood at $114.9
million, compared with $194.5
million on January 31, 2017. The contracts on hand
on October 31, 2017, will be carried out between now and
the end of the fiscal year ending January
31, 2019.
Financial
Highlights
|
|
|
|
Three (3)
Months
|
Nine (9)
Months
|
|
|
|
|
|
Periods ended October
31,
|
2017
|
2016
|
2017
|
2016
|
(In thousands of
dollars, and dollars per share)
|
$
|
$
|
$
|
$
|
|
|
|
|
|
Revenues
|
37,212
|
21,089
|
131,128
|
66,390
|
EBITDA
|
468
|
1,437
|
5,651
|
6,149
|
Net income
|
(698)
|
36
|
1,583
|
1,246
|
—
Per share (basic and diluted)
|
(0.02)
|
0.00
|
0.05
|
0.04
|
Cash flows from (used
in) operating activities
|
(1,971)
|
(1,046)
|
4,421
|
(3,463)
|
Average number of
outstanding shares (basic, in thousands)
|
32,635
|
32,627
|
32,632
|
32,624
|
Average number of
outstanding shares (diluted, in thousands)
|
32,635
|
32,677
|
32,664
|
32,690
|
Outlook
"Despite the increase in revenues, the third quarter results are
disappointing. Our recent results do not alter our growth
objectives and testify to our industry's ups and downs. Our
long-term outlook remains the same and we maintain our efforts to
renew our order backlog" said Mr. Jean
Paschini, Co-Chairman of the Board of Directors and
Chief Executive Officer.
Conference Call
With Investors
ADF Group Senior
Management will host a conference call with investors on Thursday,
December 7, 2017 at 10:00 a.m. (Eastern time) to discuss the
results of the three-month and nine-month periods ended October 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, December 7, 2017
at 1:00 p.m. until 11:59 p.m., Thursday, December 14, 2017, by
dialing 1-855-859-2056; followed by the access code
2989617.
The conference
call (audio) will be available on ADF's website at
www.adfgroup.com.
Members of the
media are invited to listen in.
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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, 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.