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Novik increased the net earnings by 52% - Third quarter 2012 highlights


Novik increased the net earnings by 52% - Third quarter 2012 highlights


    --  Revenues for the quarter at $7.4 M versus $7.0 M last year
    --  6 point increase in gross margin to 51% of revenues
    --  Adjusted EBITDA margin of 26% versus 17% on revenues in Q3 -
        2011
    --  Net earnings of $839,000 compared with $552,000, a 52% increase
    --  Year-to-date net earnings of $1,511,000 versus $924,000 last
        year, a 64% increase

QUEBEC CITY, Nov. 7, 2012 /CNW Telbec/ - Novik inc. (TSXV: NVK) releases today 
its results for the third quarter of fiscal year 2012. All amounts are 
expressed in Canadian dollars unless otherwise indicated.
                                                                 

NOVIK inc.                                                             

for the periods ended
September 30, 2012 and 2011          Third        Third Year to Year to

(in thousands dollars,
except for amounts per
share)                             quarter      quarter    date    date
                                      2012         2011    2012    2011
                                         $            $       $       $

Operating results                                                
                                                                          

Revenues                             7,362        7,001  20,143  20,506

Gross margin                         3,752        3,164   9,453   8,118

Earnings before
depreciation, stock-based
compensation,
financial expenses and                                                 
income taxes                         1,899        1,215   4,153   3,305

Net earnings                           839          552   1,511     924

Basic and diluted net
earnings per share                   0.017        0.011   0.031   0.019
                                                                       
                                                                       

NOVIK inc.                                                             
                             September 30, December 31,                

(in thousands dollars,
except for amounts per
share)                                2012         2011                
                                         $            $                

Financial position                                                     
                                                                       

Total assets                        25,666       25,316                

Working capital                      5,241        3,362                

Total long-term financial
liabilities                          8,138        9,092                

Total liabilities                   11,832       13,270                

Shareholder's equity                13,834       12,046                

Shareholder's equity per
share                                 0.28         0.25                
                                                                       

Number of shares outstanding    48,825,858   48,470,858

During the course of the third quarter of fiscal year 2012, Novik recorded 
revenues of $7.4 M, compared with $7.0 M during the same quarter of the 
previous fiscal year.  Mr. Gaudreau, Novik's CEO, is particularly proud to 
announce that "while sales increased by 6% this quarter compared to the third 
quarter 2011, Novik managed to realize a net earnings of 52% higher than 
during the same quarter of the previous fiscal year."

Novik's cumulative revenues, for the first nine months of 2012, amount to 
$20.1 M compared with $20.5 M for the same period of the previous year. Mr. 
Gaudreau points out that the shortfall in sales for the first nine months of 
2012 is mostly tied to an apparent softness in export sales outside North 
America.  As for the North American sales, they increased by 13% over the 
period compared to the same period in 2011.

EARNINGS BEFORE INTEREST, STOCK-BASED COMPENSATION COSTS, TAXES, DEPRECIATION 
AND AMORTIZATION ("adjusted EBITDA")

Earnings before interest, stock-based compensation costs, taxes, depreciation, 
and amortization (adjusted EBITDA) is a measure that has no standardized 
meaning prescribed by International Financial Reporting Standards (IFRS).  It 
is therefore considered to be a non-IFRS measure.  Accordingly, the measure 
may not be comparable to similar measures presented by other issuers.  This 
measure is presented and described in this management report in order to 
provide shareholders and potential investors with additional information 
regarding the company's liquidity and ability to generate funds to finance its 
activities.

For the third quarter of fiscal year 2012, adjusted EBITDA on revenues 
increased to 26% compared to 17% for the same period of the previous fiscal 
year. Continued operating improvement, new product introductions and efficient 
strategic procurement of raw materials explain this progression in 
profitability.

For the nine-month period ended on September 30, 2012, adjusted EBITDA 
increased by 26% to $4,153,000 compared with $3,305,000 for the same period of 
the previous fiscal year.  Adjusted EBITDA on revenues for the first nine 
months of 2012 was 21% versus 16% over the corresponding period of last year. 
This ratio demonstrates the significant increase in Novik's operating 
performance in 2012.  The objective of Novik's management to improve the 
profitability threshold was clearly identified at the beginning of the year 
and will remain a constant priority.

NET EARNINGS

The company's net earnings for the third quarter of fiscal year 2012 amounts 
to $839,000 compared with $552,000 for the same quarter of the previous fiscal 
year.  This increase in profitability is directly in line with the same 
factors previously explained in the adjusted EBITDA section: better management 
of production costs, procurement strategies and new product introductions to 
the market.

For the nine-month period ended on September 30, 2012, net earnings is 
$1,511,000 compared with $924,000 for the same period of the previous fiscal 
year.  This financial result represents a net improvement of 64% compared 
with the previous year and is directly in line with management's objective to 
maximize profitability.

OUTLOOK

Just like the first two quarters of fiscal year 2012, Novik's current 
financial performance is positive.  Despite lingering effects on the industry 
from the latest economic crisis and pressures on the cost of its raw 
materials, Novik has managed to recover quickly to achieve better financial 
results.  The company has successfully taken advantage of the opportunities 
created by the industry's weakness by increasing its presence with various 
distribution networks and intends to pursue this strategy to ensure continued 
growth in its sales.

At the operational level, we remain on the lookout for any opportunities to 
improve our production costs.  Improving our productivity and buying raw 
materials at competitive prices are constantly on the agenda with our various 
teams in order to be able to generate potential savings.

About NOVIK

Novik (NVK) is a leader in the design, manufacturer and distribution of 
innovative polymer exterior siding, roofing coverings and accessories that 
replace traditional materials such as stone, brick or wood shingles.  These 
products target the world-wide residential and commercial construction 
industry.

Forward-looking statements contained in this press release involve known and 
unknown risks, uncertainties or other factors that may cause actual results, 
performance or achievements of the company to be materially different from any 
future results, performance or achievements expressed or implied by such 
forward-looking statements.

Michel Gaudreau President Tel. : (418) 878-6161 E-mail : micgau@novik.com

François Giroux EVP & General Manager Interim Chief Financial Officer Tel. : 
(418) 878-6161 E-mail : fragir@novik.com

SOURCE: Novik Inc.

To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/November2012/07/c5930.html

CO: Novik Inc.
ST: Quebec
NI: CST RET ERN FIN 

-0- Nov/07/2012 21:30 GMT

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