Results for the second quarter ended July 31, 2013
TERREBONNE, QC, Sept. 5, 2013 /CNW Telbec/ - ADF GROUP INC. ("ADF" or the "Corporation") (TSX: DRX), closed the second quarter of the 2014 fiscal year with revenues of $17.6 million, up from those for the same quarter of the previous fiscal year. For the six-month period ended July 31, 2013, ADF Group recorded revenues of $29.9 million, compared with $23.0 million the previous year. These increases are explained by the recently awarded contracts, which are starting to yield results, and by the acceleration of the project in Western Canada.
The second-quarter gross margin, as a percentage of revenues, stood at 24% compared with 16% for the corresponding quarter the previous year, whereas the gross margin for the six-month period ended July 31, 2013 stood at 19% compared with 15% a year earlier. These increases are mainly explained by productivity improvements attributable to the additional volume of work, by the completion of certain projects with less favorable margins, and the acceleration of the project in Western Canada, mentioned previously.
ADF posted second-quarter net earnings of $1.2 million ($0.04 per share, basic and diluted), compared with $29,000 ($0.00 per share, basic and diluted) a year ago. For the first six months, net earnings totalled $1.0 million ($0.03 per share, basic and diluted), compared with $0.1 million ($0.00 per share, basic and diluted) for the first half of the previous year.
The Corporation's operating activities used cash flows of $1.7 million in the second quarter and $1.6 million during the six-month period ended July 31, 2013. As at July 31, 2013, the Corporation had working capital of $26.2 million, including short-term available liquidities (cash, cash equivalents and short-term investments) of $12.8 million. Therefore, available liquidities exceeded ADF Group's total debt by $10.3 million, placing the Corporation in a solid position to support its ongoing operations, pursue its development projects and remunerate its shareholders in accordance with the dividend payment policy.
Three Months Six Months
Periods ended July 31 2013 2012 2013 2012
(In thousands of dollars, and dollars $ $ $ $ per share)
Revenues 17,649 10,557 29,925 23,021
EBITDA 2,562 663 3,037 1,600
Net income 1,219 29 950 120
- Per share (basic and diluted) 0,04 0,00 0,03 0,00
Cash flows from (used in) operating activities (1,744) (1,777) (1,638) (1,662)
Average number of outstanding shares (basic, in thousands) 32,453 32,464 32,452 32,464
Average number of outstanding shares (diluted, in thousands) 32,941 32,869 32,928 32,900
In the scope of a contract it is currently carrying out in Western Canada, the Corporation is pleased to announce the award of additional work totalling close to $25 million. The original contract signed in July 2012 consists in the fabrication of the steel structures of a new plant for a company specializing in the petroleum industry. This project, including the new orders recently signed, will be delivered by the end of the Corporation's current fiscal year, ending January 31, 2014.
As at July 31, 2013, ADF Group's order backlog stood at $78 million, the execution schedule of which should extend over the next 12 months. Based on the current level of its order backlog, the Corporation estimates that its 2014 fiscal year revenues should reach close to $80 million.
"We have set two main objectives for the 2014 fiscal year, they are, the renewal of the order backlog and the commissioning of our new plant in Great Falls, Montana. Since the beginning of the current fiscal year, we have signed over $70 million worth in new contracts and the construction of our new plant is in full swing. Considering the progress made over the first half of the 2014 fiscal year, we are confident that ADF will achieve its objectives" added Mr. Jean Paschini, Co-Chairman of the Board and Chief Executive Officer.
The Corporation announces today the payment of a second semi-annual dividend of $0.01 per subordinate voting share and multiple voting share, which will be paid on October 16, 2013 to shareholders of record as at September 30, 2013.
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 6-month periods | | ended July 31, 2013, | | September 5, 2013 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, September 5, 2013 at 1:00 p.m. until midnight Thursday | | September 12, 2013, | | by dialing 1-855-859-2056; access code 41145728. | | | | The conference call (audio) will also be available at | | www.adfgroup.com | | Members of the media are invited to listen in. | |___________________________________________________________________|
Jean Paschini, Co-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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CO: ADF Group Inc. ST: Quebec NI: CST ERN CONF DIV
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