HIGHLIGHTS OF THE
QUARTER
- Revenues up 18% to $80.3 million
compared to the same period last year.
- Cash flows from operations at $41.2
million for the quarter ended April
30, 2023.
- Net income of $5.4 million, up
26.2%.
- Order backlog (1) at $312.4
million as at April 30, 2023,
excluding new contracts worth $142.0
million announced on May 30,
2023.
TERREBONNE, QC, June 7, 2023
/CNW/ -
(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 $80.3
million in the first quarter ended April 30, 2023, compared with $68.0 million for the same period a year
earlier.
Gross margin, as a percentage of revenue (1), went
from 12.1% during the three-month period ended April 30, 2022, to 16.8% for the same period
ended April 30, 2023. Gross margin
for the quarter ended April 30, 2023,
benefited from improvements stemming from operational efficiencies
driven by the commissioning of the all-new robotic production line
and new programmable and automated equipment at ADF's fabrication
facility in Terrebonne,
Quebec.
Adjusted earnings before interest, taxes, depreciation and
amortization (Adjusted EBITDA) (2) at
$10.0 million, is $4.4 million higher or 79% than as at
April 30, 2022.
For the first quarter ended April 30,
2023, ADF recorded a net income of $5.4 million ($0.16
per share, basic and diluted) compared with a net income of
$4.3 million ($0.13 per share, basic and diluted) for the same
period last year.
As at April 30, 2023, the
Corporation's order backlog (1) reached $312.4 million, excluding the new contracts worth
a total of $142.0 million announced
on May 30, 2023.
As at April 30, 2023, the
Corporation had a working capital (1) of
$73.7 million while cash flows from
operating activities generated liquidities of $41.2 million for the quarter ended April 30, 2023.
The Corporation remains in sound position to continue its
day-to-day operations and pursue its development projects.
Financial Highlights
|
|
|
Three-Month Periods
Ended April 30
|
2023
|
2022
|
(In thousands of
Canadian dollars and in dollars per share)
|
$
|
$
|
Revenues
|
80,271
|
68,008
|
Adjusted EBITDA
(2)
|
10,031
|
5,602
|
Income before income
tax expense
|
7,925
|
3,890
|
Net income for the
period
|
5,371
|
4,256
|
—
Basic and diluted per share
|
0.16
|
0.13
|
|
|
|
(In
thousands)
|
Number
|
Number
|
Average number of
outstanding shares (basic and diluted)
|
32,640
|
32,635
|
|
|
|
_______________
|
(1)
|
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.
|
(2)
|
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.
|
New Financing
On April 28, 2023, the Corporation
entered into a new agreement with its Canadian financial
institution for its Canadian operating credit facility which
increased from $30.0 million to
$40.0 million. This amount remains
subject to a margination calculation, but only when the Corporation
needs to draw over $20.0 million. All
other terms and conditions remain similar to the previous
terms.
Outlook
"Building on our backlog, in addition to the new contracts worth
a total of $142.0 million announced
on May 30, 2023, we are starting the
2024 fiscal year on the right foot" indicated Mr. Jean Paschini, Chairman of the Board of
administration and Chief Executive officer.
"The addition of robotization and new programmable automated
equipment to our fabrication plant in Terrebonne, Quebec, continues to bring
increased efficiency, thereby improving our profitability"
concluded Mr. Paschini."
Conference call with
Investors
An investor conference call will be held this morning,
June 7, 2023, at 10 a.m. (EST) to discuss results for the first
quarter ended April 30, 2023.
To join the conference call without operator assistance, you can
register with your phone number on
https://emportal.ink/40D7CuB to receive an instant automated
call back. You can also join the conference call with operator
assistance by dialing 1 (888) 390-0620 a few minutes prior
to the conference call scheduled start time.
A replay of the conference call will be available from 1:00 p.m,
Wednesday, June 7, 2023, until
midnight, Wednesday, June 14, 2023,
by dialing 1 (888) 259-6562; followed by the access code
020433 #.
The conference call (audio) will also be available at
www.adfgroup.com. Members of the media are invited to join in
listening mode.
ANNUAL GENERAL MEETING OF SHAREHOLDERS FOR THE FISCAL YEAR
ENDED JANUARY 31, 2023
ADF Group Inc. will hold its Annual General Meeting of
Shareholders by way of a webcast, today, June 7, 2023, at 11 a.m. (EST) which
will also be available by way of webcast at
https://app.webinar.net/9K2PYLZrLVm.
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:
- Net financial expenses;
- Income tax expense (recovery);
- Foreign exchange loss (gain), 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,
|
2023
|
2022
|
(In thousands of
dollars)
|
$
|
$
|
Net income
|
5,371
|
4,256
|
Income tax expense
(recovery)
|
2,554
|
(366)
|
Net financial
expenses
|
839
|
198
|
Amortization
|
1,444
|
1,183
|
Foreign exchange (gain)
loss
|
(177)
|
331
|
Adjusted
EBITDA
|
10,031
|
5,602
|
|
|
|
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.
SOURCE ADF Group Inc.