TERREBONNE, QC, Dec. 6, 2012 /CNW Telbec/ - ADF GROUP INC. ("ADF" or the "Corporation") (TSX: DRX) closed the third quarter of the 2013 fiscal year with revenues of $7.7 million, lower than those for the same quarter of the 2012 fiscal year. For the nine-month period ended October 31, 2012, ADF Group recorded year-to-date revenues of $30.7million, compared with $37.6 million the previous year. For the three-month and nine-month periods ended October 31, 2012, the decrease in revenues and gross margin is explained by the completion of work related to the World Trade Center projects in New York, by an unfavourable production mix and in some projects by fabrication delays resulting from the changes requested by clients. For the third quarter ended October 31, 2012, ADF posted second-quarter a negative net income of $1.2 million ($0.04 per share, basic and diluted), compared with net income of $0.4 million ($0.01 per share, basic and diluted) a year ago. For the first nine months, ADF posted a negative net income of $1.0million ($0.03 per share, basic and diluted), compared with net income of $2.3million ($0.07 per share, basic and diluted) for the same period last year. The Corporation's operating activities generated cash flows of $0.7million in the third quarter, and used $0.9 million during the nine-month period ended October31, 2012. As at October 31, 2012, the Corporation had working capital of $37.4million, including short-term available liquidities (cash, cash equivalents and short-term investments) of $17.6million. Available liquidities exceeded ADF Group's total debt by $13.3 million, placing the Corporation in a solid position to support its ongoing operations, carry out its development projects and remunerate its shareholders in accordance with the dividend payment policy implemented at the beginning of fiscal 2012. Although liquidities decreased as at October 31, 2012, the WTC project dispute settlement with WTC Tower 1 LLC, an assignee of 1 World Trade Center LLC owned by the Port Authority of New York and New Jersey, allowed ADF Group to secure its accounts receivables such that the Corporation will be able to collect significant liquidities by January 31, 2013. Financial Highlights Periods ended October 31, Three Months Nine Months 2012 2011 2012 2011 (In thousands of dollars, and $ $ $ $ dollars per share) Revenues 7,723 11,208 30,744 37,555 EBITDA (795) 1,009 805 5,631 Net income (1,160) 403 (1,040) 2,258 - Per share (basic and diluted) (0.04) 0.01 (0.03) 0.07 Cash flows from (used in) 749 (1,201) (913) 7,918 operating activities Average number of outstanding 32,455 32,792 32,461 32,785 shares (basic, in thousands) Average number of outstanding 32,893 33,259 32,899 33,347 shares (diluted, in thousands) New orders The Corporation announced today the award of two new contracts in Canada. Worth a total of $8.7 million, these contracts consist in the fabrication and installation of the structural steel of the new amphitheater in Trois-Rivières, Quebec. This new entertainment and art center will be located at the fork of the St. Maurice and St. Lawrence Rivers. The projects will be delivered by the end of the second quarter of fiscal 2014. Dividend On October 15, 2012, the Corporation paid a second semi-annual dividend of $0.01 per subordinate and multiple voting share to shareholders of record on September 21, 2012. Normal Course Issuer Bid The Corporation also announced today that the Board of Directors and the Toronto Stock Exchange approved the renewal of its normal course issuer bid (NCIB). Thus, from December 11, 2012 to December 10, 2013, ADF Group will be authorized to repurchase, for cancellation purposes, up to 1,552,731 of its subordinate voting shares. New Structural Steel Fabrication Plant in the United States As announced on November 5, 2012, ADF Group will invest US$24 million to build a new 9,290 m(2) (100,000 ft(2)) structural steel fabrication complex on a 100-acre industrial lot located in Great Falls, in the State of Montana, U.S.A. This investment will allow the Corporation to move closer to the Western Canadian market and to take part in U.S. public infrastructure projects. What's more, the size of the lot will also allow ADF to set up, adjacent to the new facility, a large structural steel fabrication and pre-assembly yard that will provide ADF Group with an important competitive edge to rapidly and effectively serve new sectors and fast-growing markets. The Corporation expect that the new plant will be operational during the third quarter of fiscal 2014. Outlook ADF Group's order backlog totalled $34 million on October 31, 2012. The schedule of contracts in hand is expected to continue through the third quarter of the 2014 fiscal year. "While building as of now the Corporation's future for the longer term, our immediate objectives remain to fill our order backlog and to pursue our development efforts in Western Canada and the U.S.A. Until our investment in the United States yields returns, we will continue to face challenging market conditions. We are confident that our strategy and management practices will ensure that ADF Group remains a sustainable value for our shareholders: a profitable, financially sound and well-positioned company in view of the next economic recovery" added Mr. Jean Paschini, Chairman of the Board and Chief Executive Officer. About ADF Group Inc. ADF Group Inc. is a North American leader in the design and engineering of connections, fabrication 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. 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. 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. All amounts are in Canadian dollars, unless otherwise indicated. ___________________________________________________________________ | CONFERENCE CALL WITH INVESTORS | | | |To discuss ADF Group's results for the 3-month and 9-month periods | | ended October 31, 2012, | | December 6, 2012 at 10:00 a.m. (Montreal time) | | | |To participate in the conference call, please dial 1-888-231-8191 a| | few minutes before the start of the call. | | | | For those unable to participate, a taped rebroadcast will be | | available from | | Thursday, December 6, 2012 at 1:00 p.m. until midnight Thursday | | December 13, 2012, | | by dialing 1-855-859-2056; access code 74618607. | | | | The conference call (audio) will also be available at | | www.adfgroup.com | | Members of the media are invited to listen in. | |___________________________________________________________________| Jean Paschini, Chairman of the Board of Directors and Chief Executive Officer Jean-François Boursier, CPA, CA, Chief Financial Officer Telephone: (450) 965-1911 / 1 (800) 263-7560 Web Site:www.adfgroup.com SOURCE: ADF GROUP INC. To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/December2012/06/c6578.html CO: ADF GROUP INC. ST: Quebec NI: CST ERN CONF -0- Dec/06/2012 12:15 GMT
Results for the third quarter ended October 31, 2012
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