HIGHLIGHTS
(All amounts are in Canadian dollars,
unless otherwise indicated.)
- Quarterly and year-to-date results negatively impacted by a
non-recurrent charge of $7.7 million
following an out-of-court settlement related to a commercial
dispute.
- Despite this adjustment, revenues for the nine-month period
closed on October 31, 2019 totalled
$133.4 million, representing a
$27.1 million increase compared with
the same period a year ago.
- Net income down during the three-month and nine-month periods
ended October 31, 2019, compared with
the same periods a year ago, as a result of the above-mentioned
out-of-court settlement.
- Order backlog at $360.5 million
as at October 31, 2019, up from
January 31, 2019.
TERREBONNE, QC, Dec. 5, 2019 /CNW Telbec/ - ADF GROUP
INC. ("ADF" or the "Corporation") Ticker symbol: (TSX: DRX),
recorded revenues of $42.1 million
during the third quarter ended October 31,
2019, compared with $45.6
million for the same period a year ago. For the nine-month
period ended October 31, 2019, the Corporation recorded
revenues of $133.4 million, up from
the same period last year.
For the third quarter ended October 31,
2019, ADF recorded a net loss of $4.1
million (-$0.12 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 nine months,
the Corporation recorded a net loss of $2.0
million (-$0.06 per share,
basic and diluted), compared to a net income of $0.5 million ($0.01 per share, basic and diluted) for the
same period a year ago.
On October 9, 2019, the
Corporation announced the out-of-court settlement of a litigation
in Florida, USA. This settlement
ends a legal dispute opposing ADF to one of its clients with regard
to a structural steel fabrication and installation contract in
Florida, USA. ADF's Management and
its Board of Directors, deemed it appropriate, considering all the
factors involved, to settle out-of-court. Thus, ADF collected a
total sum of $13.9 million
(US$10.5 million). This settlement
has however generated a pre-tax loss of $7.7
million (US$5.8 million)
which is recognized in the results for the quarter ended
October 31, 2019.
Had it not been for this adjustment, and considering that it is
tax-free, revenues and net income for the three-month and
nine-month periods ended October 31,
2019, would have been $7.7
million higher, which would have brought the earnings per
share (basic and diluted) for these same periods to $0.11 per share and $0.18 per share, respectively.
On October 31, 2019, the
Corporation's working capital stood at $30.0
million. The Corporation remains well positioned to support
its ongoing operations and pursue its development projects.
The order backlog of the Corporation stood at $360.5 million as at October 31, 2019, compared with $219.5 million as at January 31, 2019.
The current order backlog will extend until the end of the next
fiscal year ending January 31, 2021.
Financial
Highlights
|
|
|
|
|
|
|
3 Months
|
9 Months
|
Periods ended October
31,
|
2019
|
2018
|
2019
|
2018
|
(In thousands of
dollars, and dollars per share)
|
$
|
$
|
$
|
$
|
Revenues
|
42,103
|
45,570
|
133,368
|
106,267
|
Earnings before
interest, taxes, depreciation and amortization (EBITDA)
|
(2,424)
|
2,594
|
3,607
|
1,517
|
Net income
(loss)
|
(4,059)
|
1,900
|
(2,022)
|
458
|
— Per share (basic
and diluted)
|
(0.12)
|
0.06
|
(0.06)
|
0.01
|
Cash flows from (used
in) operating activities
|
4,571
|
13,247
|
5,325
|
13,119
|
|
|
|
|
|
(In
thousands)
|
Number
|
Number
|
Number
|
Number
|
Average number of
outstanding shares (basic)
|
32,635
|
32,635
|
32,635
|
32,635
|
Average number of
outstanding shares (diluted)
|
32,635
|
32,636
|
32,635
|
32,636
|
New Orders
On October 15, 2019, ADF announced
the award of a series of major contracts valued at a total of
$70.0 million. The largest of this
series of contracts was won in the public infrastructure sector in
the U.S. Midwest and consists in the design and engineering of
connections, the fabrication, including the procurement of raw
material (steel) and industrial coating, as well as the
installation of complex steel structures and heavy steel
components, including architecturally exposed structural steel
(AESS) elements. This contract will be carried out at ADF's complex
located in Terrebonne, Quebec.
Fabrication work is scheduled to start in January 2020 and will extend until the end of
2020.
Outlook
"Although the settlement resulted in a negative impact of
$7.7 million on our results, we have
since been able to collect $13.9
million, which alleviate some of the pressure on our working
capital and allows us to continue to grow our backlog " said Mr.
Jean Paschini, Co-Chairman of the
Board and Chief Executive Officer. "This litigation, which
significantly increased legal fees, is now behind us, allowing us
to look ahead and pursue the growth started a few quarters ago"
concluded Mr. Paschini.
Conference Call with Investors
A conference call with investors is scheduled for today at
10 a.m. (Eastern time) to discuss the
results of the three-month and nine-month periods ended
October 31, 2019.
To take part in the conference call, dial
1-888-390-0620, 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., December 12, 2019, by dialing 1 (888)
259-6562, followed by the access code 090072 #.
Members of the media are invited to listen in.
The conference call (audio) will also be available at
www.adfgroup.com.
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
IFRS 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.
SOURCE ADF Group Inc.