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
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.
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
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)
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.
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.
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
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.
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.
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.
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