• Revenues up 35% to $68.0 million compared to the same period last year.
  • Net income of $4.3 million.
  • Order backlog at $325.4 million as at April 30, 2022.
  • New major contracts, totaling $90.0 million, signed since April 30, 2022.

TERREBONNE, QC, June 8, 2022 /CNW Telbec/ - (All amounts are in Canadian dollars unless otherwise noted.)

 ADF GROUP INC. ("ADF" or the "Corporation") (TSX: DRX), a North American leader in the fabrication of steel superstructures, recorded revenues of $68.0 million in the first quarter ended April 30, 2022, compared with $50.4 million for the same period a year earlier.

Gross margin, as a percentage of revenue (1), went from 15.4% in the three-month period ended April 30, 2021, to 12.1% for the same period ended April 30, 2022.  Gross margin for the three months ended April 30, 2022, was affected downward by the temporary loss of operational efficiency brought by the setting up of the all-new robotic production line and new programmable and automated equipment at our Terrebonne, Quebec plant.

Adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA) (2) at $5.6 million is $0.5 million lower than as at April 30, 2021. The quarter ended April 30, 2021, benefited from a COVID-related grant totalling $1.9 million which improved gross margin by $1.6 million or 3.2% of revenues, and reduced selling and administrative expenses by $0.3 million. Excluding this subsidy, gross margin, as a percentage of revenues, for the quarters ended April 30, 2022 and 2021, would have been similar, while adjusted EBITDA as at April 30, 2022, would have been $1.4 million higher than at the same date a year earlier.

For the first quarter ended April 30, 2022, ADF recorded a net income of $4.3 million ($0.13 per share, basic and diluted) compared with a net income of $4.4 million ($0.13 per share, basic and diluted) for the same period last year.

As at April 30, 2022, the Corporation's order backlog (1) reached $325.4 million, compared with $373.1 million as at January 31, 2022.

As at April 30, 2022, the Corporation had a working capital (1) of $54.4 million. The Corporation's operating activities required liquidities of nearly $4.7 million for the three-month period ended April 30, 2022. The Corporation remains in sound position to continue its day-to-day operations and pursue its development projects.

Financial Highlights (In thousands of dollars, and dollars per share)

Three-Month Periods Ended April 30,






Adjusted EBITDA (2)



Income before income tax expense



Net income for the period



—  Basic and diluted per share



(In thousands)



Average number of outstanding shares (basic and diluted)



New Contracts

On June 7, 2022, the Corporation announced the signing of new major contracts, all in the automotive sector in the U.S. Midwest region, with a total value of $90.0 million.

These new orders consist in the fabrication, including the supply of raw materials (steel) and industrial coating, as well as the design and engineering of connections, and the delivery of steel structures used in the construction of new large surface industrial facilities. Fabrication work on these new projects characterized by high tonnage and tight completion schedules, will begin in the coming weeks at ADF's Terrebonne plant, and is scheduled to extend until the first quarter of the fiscal year ending January 31, 2024.


Mr. Jean Paschini, Chairman of the Board of Directors and Chief Executive Officer, indicated "the results for the quarter ended April 30, 2022, are encouraging. While our operational efficiency was affected by the installation and commissioning of our new automated equipment, which temporarily impacted our margins downward, our quarterly revenues have nonetheless recorded an increase compared with the same period last year, and we have also been able to achieve an adequate net income."

Conference call with Investors

An investor conference call will be held this morning, June 8, 2022, at 10 a.m. (EST) to discuss results for the first quarter ended April 30, 2022.

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. on June 8, 2022, until midnight on Wednesday, June 15, 2022, by dialing 1 (888) 259-6562, followed by access code 613618 #.

The conference call (audio) will also be available at www.adfgroup.com. Members of the media are invited to listen in.


ADF Group Inc. will hold its Annual General Meeting of Shareholders by way of a webcast, today, June 8, 2022, at 11 a.m. (EST) available at https://produceredition.webcasts.com/starthere.jsp?ei=1535918&tp_key=d894e14b3b

Shareholders are encouraged to vote on the matters before the meeting by proxy and to view the meeting online by way of a live webcast. Shareholders will be able to submit questions to management of the Corporation through the webcast at any time and at the conclusion of the Meeting. To this end, a dialogue box will be available at the bottom of the screen allowing registered shareholders to write their questions.

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's 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-GAAP Financial Measures and Other Financial Measures | Are measures derived primarily from the consolidated financial statements, but are not a standardized financial measure under the financial reporting framework used to prepare the Corporation's financial statements. Therefore, readers should be careful not to confuse or substitute them with performance measures prepared in accordance with GAAP. In addition, readers should avoid comparing these non-GAAP financial measures to similarly titled measures provided or used by other issuers. The definition of these indicators and their reconciliation with comparable International Financial Reporting Standards measure is as follows:

Adjusted EBITDA

Adjusted EBITDA shows the extent to which the Corporation generates profits from operations, without considering the following items:

  • Financial revenues and financial expenses;
  • Income tax expense;
  • Foreign exchange losses, and
  • Depreciation and amortization of property, plant and equipment, intangible assets and right-of-use assets.

Net income is reconciled with adjusted EBITDA in the table below:

Three (3) Month Periods Ended April 30,



(In thousands of dollars)

Net income



Income tax expense (recovery)



Net financial expenses






Foreign exchange loss



Adjusted EBITDA



Gross Margin as a Percentage of Revenues

Gross margin as a percentage of revenue indicator is used by the Corporation to assess the level of profitability for a given period based on the project mix for that same period. This indicator is subject to fluctuations in project prices and also in the operational efficiency of the Corporation. The indicator of gross margin as a percentage of revenues results from dividing gross margin by revenues.

Order Backlog

The order backlog is a measure used by the Corporation to assess future revenue levels. The order backlog includes firm orders obtained by the Corporation, either through a firm contract or a formal notice to proceed confirmed by the client. The order backlog disclosed by the Corporation therefore includes the portion of confirmed contracts that have not been put into production.

Working Capital

The working capital indicator is used by the Corporation to assess whether current assets are sufficient to meet current liabilities. Working capital is equal to current assets, less current liabilities.


Gross margin, as a percentage of revenues, working capital, as well as the order backlog are additional financial measures. Refer to the "Non-GAAP Financial Measures and Other Financial Measures" section of this press release for the definition of these indicators.


Adjusted EBITDA is a non-GAAP financial measure. Refer to the "Non-GAAP Financial Measures and Other Financial Measures" section of this press release for the definition of this indicator.



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