MONTREAL, June 6, 2013 /CNW Telbec/ - (All amounts are in Canadian dollars.)
GLV Inc. (GLV Group) announced today its financial results for the fourth
quarter and the fiscal year ended March31,2013. The Corporation returned
to profitability with net earnings of $0.4million or $0.01per share, basic
and diluted, for the fourth quarter ended March 31, 2013, compared with a net
loss of $52.8million or $1.20per share, basic and diluted, for the same
quarter of the previous fiscal year, which included an asset impairment loss
of $40.9million. "With the backlog at its highest level for the past five
quarters, GLV Inc.'s management team is satisfied with the work done until now
to deliver sustained financial performance," stated Richard Verreault,
President and Chief Executive Officer of GLV Inc.
The improvement in operating results over the previous fiscal year
demonstrates the progress achieved following the implementation of Ovivo's
business refocusing strategy announced at the beginning of fiscal 2013. As a
result, order taking in Ovivo's targeted markets met management's
expectations, contributing to the increase in the backlog as at March 31, 2013.
Compared with the fourth quarter of the previous fiscal year during which a
significant asset impairment loss was recognized, the decrease in
restructuring costs and the lower income tax expense also contributed to the
return to profitability for the current quarter.
GL&V Pulp and Paper's operating performance was lower than for the same
quarter of the previous year, owing primarily to the reduction of the backlog
during the first half of fiscal 2013 caused by the continuing economic
slowdown in Europe and Asia that mainly affects the new equipment market.
The weaker performance was also attributable to cost overruns on certain new
equipment sale projects.
For the fiscal year ended March 31, 2013, the Corporation reported a net loss
of $12.8million or $0.29 per share, basic and diluted, compared with a net
loss of $54.1million or $1.23per share, basic and diluted, for the
corresponding period of the previous fiscal year. The loss from continuing
operations attributable to shareholders of GLV Group (excluding the portion
attributable to other shareholders of non-wholly owned subsidiaries) amounted
to $5.7million or $0.13per share, basic and diluted, compared with
$53.4million or $1.21per share, basic and diluted, for the corresponding
period of the previous fiscal year. Excluding the impact of discontinued
operations, the changes resulted primarily from the asset impairment charge
recognized in 2012, the decrease in net financial expenses, and lower
restructuring costs, partly offset by the increase in the income tax expense.
In line with Ovivo's new business strategy, the Corporation decided during
fiscal 2013 to discontinue all operations in the Waste to Energy Industrial
segment, including the sale of its joint venture operating in this market,
which was completed during the fiscal year. With respect to this segment,
losses of $0.5million and $7.1million, respectively, were reported under
discontinued operations for the three-month and twelve-month periods ended
March 31, 2013.
Backlog and outlook
As at March 31, 2013, GLV Group's backlog stood at $380.0million, its
highest level in the past five quarters, mainly driven by Ovivo's backlog
resulting from three large contracts in Electronics and Metals as announced on
April9,2013. Although Ovivo's backlog decreased in its other segments,
tendering activity remains reasonable and the expected profitability of the
backlog improved considerably as at March 31, 2013, compared with
March31,2012. In the Parts and Services market, the backlog is stable and
the measures taken to develop this important niche in Ovivo's strategy should
have a gradual impact over fiscal 2014.
At GL&V Pulp and Paper, the backlog is comparable to the previous quarter's
level, owing mainly to order taking in the Parts and Services market. Last, as
at March 31, 2013, the backlog of the Van der Molen division, which was part
of Christ Water Technology, is at its highest level since the acquisition of
this company in 2009.
Fiscal 2014 will be a year of investment for GLV Group, which is expected to
translate into a gradual and sustained improvement in profitability. For
fiscal 2014 as a whole, assuming exchange rates remain stable at current
levels and in light of the outlook in the segments serviced by each group, and
in particular the refocusing of Ovivo's operations, the Corporation expects
consolidated revenues to total between $600 million and $625million.
From GLV to GLV Group
During fiscal 2013, management initiated a strategic reflection that led to a
review of the Corporation's mission and business strategy as well as to a
change in its business name. This change included a corporate signature
representing what underlies GLV's past, present and future success, namely:
its employees and its know-how. That is how GLV Group; Insightful people was
On April 8, 2013, GLV Group launched its new website (www.glv.com) - a unique
communication tool that provides a single window for financial partners,
employees and clients to learn more about the Corporation.
This press release presents the highlights for the fourth quarter and the
fiscal year ended March 31, 2013. For a detailed analysis, see the
management's discussion and analysis and the consolidated financial statements
for the fiscal year ended March 31, 2013, filed today on the websites of SEDAR
(www.sedar.com) and the Corporation (www.glv.com). Note that non-IFRS
financial measures were used to analyze performance, as management considers
that they provide useful information for investors seeking to assess the
Corporation's performance and financial position.
About GLV Group (GLV Inc.)
GLV Group is made up of international companies operating primarily in the
water treatment (Ovivo) and pulp and paper (GL&V Pulp and Paper) industries
that offer comprehensive technological solutions as well as services and
equipment tailored to specific client needs. GLV Group's business units
operate in more than 25 countries and have approximately 2,100 employees. GLV
Inc. is a public company whose shares trade on the Toronto Stock Exchange
under the ticker symbols GLV.A and GLV.B.
Notice regarding forward-looking statements
Certain statements in this press release regarding management's objectives,
projections, estimates, expectations or forecasts may constitute
forward-looking statements within the meaning of applicable securities
legislation. Forward-looking statements are recognized by the use of terms
such as "forecast," "project," "could," "plan," "aim," "estimate" and other
similar terms, possibly used in the future or conditional, particularly with
regard to certain assumptions. The management of GLV Inc. would like to point
out that forward-looking statements involve a number of uncertainties and
known and unknown risks such that the actual and future results of GLV Inc.
could differ considerably from those stated. There can be no assurance as to
the materialization of the results, performance or achievements as expressed
in or underlying the forward-looking statements. The forward-looking
statements included in this press release were made as of the date hereof, and
unless required to do so pursuant to applicable securities legislation,
management of GLV Inc. assumes no obligation to update them.
Additional information about the risk factors to which GLV Inc. is exposed is
provided under section 10, "Risks and uncertainties," of the management's
discussion and analysis for the fiscal year ended March 31, 2013 available on
SEDAR (www.sedar.com) and the Corporation's website (www.glv.com).
Date and time: Thursday, June 6, 2013 at 2:00 p.m. (EDT)
1-888-231-8191 (North America)
An audio webcast of the conference call will be streamed live on www.glv.com.
An audio recording will be accessible on demand from 5:00 p.m. (EDT), June 6,
2013 until midnight Thursday, June 13, 2013 at 1-855-859-2056
(1-416-849-0833-International, access code: 71884100#).
Investors: France De Blois Chief Financial Officer Tel.: + 514 284-2224
Media: Julie Cusson Corporate Director, Communications Tel.: + 514 284-2224
SOURCE: GLV Inc.
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