HIGHLIGHTS
- Revenues and net income down compared with the same periods a
year ago.
- Order backlog at $141.1 million
as at July 31, 2018, which is
$55.6 million more than as at
January 31, 2018.
TERREBONNE, QC, Sept. 13, 2018 /CNW Telbec/ - ADF GROUP
INC. ("ADF" or the "Corporation") (TSX: DRX), recorded revenues
of $32.2 million and
$ 60.7 million respectively during the three-month and
six-month periods ended July 31,
2018, down from the same periods a year earlier.
Gross margin as a percentage of revenue went from 9.5% for the
three-month period ended July 31,
2017, to 6.4% for the same period ended July 31, 2018. For six-month periods ended on the
same dates, the gross margin as a percentage of revenue decreased
from 10.1% to 4.7%. These decreases, as a percentage of revenues,
are mainly attributable to the lower level of activity. While some
projects are nearing completion at the time of writing these lines,
the projects that were signed during the first quarter have barely
started. The initiatives announced during the first quarter,
including temporary layoffs and a work-sharing program, helped
reduce the costs, and reducing by the same token the impact on
second-quarter margins compared to the first quarter ended
April 30, 2018.
For the second quarter ended July 31,
2018, ADF recorded a net loss of $532,000 (-$0.02
per share, basic and diluted) compared to a net income of
$1.9 million ($0.06 per share, basic and diluted) a year
earlier. After the first six months, the Corporation recorded a net
loss of $1.4 million (-$0.04 per share, basic and diluted) compared to a
net income of $2.3 million
($0.07 per share, basic and
diluted).
On July 31, 2018, the Corporation's working capital stood
at $30.6 million. The Corporation
remains well positioned to support its ongoing operations and
pursue its development projects, despite the current pressure on
its liquidities.
The order backlog of the Corporation stood at $141.1 million as at July
31, 2018, compared with $85.5
million as at January 31, 2018. The current order
backlog will extend until the third quarter of the fiscal year
ending January 31, 2020.
Financial
Highlights
|
|
|
|
|
Three (3)
Months
|
Six (6)
Months
|
|
|
|
|
|
Periods ended July
31,
|
2018
|
2017
|
2018
|
2017
|
(In thousands of
dollars, and dollars per share)
|
$
|
$
|
$
|
$
|
|
|
|
|
|
Revenues
|
32,220
|
45,278
|
60,697
|
93,916
|
EBITDA
|
109
|
2,102
|
(1,077)
|
5,183
|
Net income
(loss)
|
(532)
|
1,927
|
(1,442)
|
2,281
|
—
Per share (basic and diluted)
|
(0.02)
|
0.06
|
(0.04)
|
0.07
|
Cash flows from (used
in) operating activities
|
4,187
|
8,420
|
(24)
|
6,231
|
Average number of
outstanding shares (basic, in thousands)
|
32,635
|
32,635
|
32,635
|
32,631
|
Average number of
outstanding shares (diluted, in thousands)
|
32,635
|
32,671
|
32,635
|
32,666
|
Outlook
"As in the previous quarter, ADF's results as at July 31, 2018 were tinged with the uncertainty
surrounding customs tariffs. Despite these uncertainties, we
continue our efforts to grow the order book" said Mr.
Jean Paschini, Co-Chairman of
the Board and Chief Executive Officer.
Dividend
On September 12, 2018, 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 16, 2018 to
shareholders of record as at September 28,
2018.
Conference Call with Investors
A conference call with investors is scheduled for today,
September 13, 2018 at 10 a.m. (Eastern time) to discuss the results of
Corporation three-month and six-month periods ended July 31, 2018.
To take part in the conference call, dial 1-888-390-0549, a few
minutes prior to the conference call scheduled start time.
A replay of this conference call will be available from
1:00 p.m. today until 11:59 p.m., Thursday, September 20, 2018, by
dialing 1-888-259-6562, followed by the access code 199213#.
The conference call (audio) will also be available 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 industrial
coatings, and installation of complex steel structures, heavy steel
built-ups, as well as in miscellaneous and architectural metals for
the non-residential construction industry. 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.
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.
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.
All amounts are in Canadian dollars, unless otherwise
indicated.
Website: www.adfgroup.com
SOURCE ADF Group Inc.