Third quarter 2023 sales of US$558.7 million
Cash flow from
operations of US$59.1
million
Quarterly dividend increased by 8% to
C$0.14 per share
LANGLEY,
BC, Nov. 8, 2023 /CNW/ - ADENTRA Inc.
("ADENTRA" or the "Company") today announced financial results for
the three and nine months ended September 30, 2023. ADENTRA is
one of North America's largest
distributors of architectural building products to the residential,
repair and remodel, and commercial construction markets. We
currently operate a network of 85 facilities in the United States and Canada. All amounts are shown in United States dollars ("U.S. $" or "$"),
unless otherwise noted.
Financial Highlights for Q3 2023
- Generated sales of $558.7 million
(C$749.4 million)
- Achieved gross profit of $118.3
million, representing a gross margin percentage of
21.2%
- Excluding the one-time impact of trade case duties which were
accrued in the quarter, operating expenses decreased $5.6 million, or 6.1%
- Net income of $8.1 million, or
basic earnings per share of $0.36.
Adjusted net income of $20.7 million,
or Adjusted basic earnings per share of $0.93
- Adjusted EBITDA of $51.8 million
(C$69.4 million)
- Generated cash flow from operating activities of $59.1 million (C$79.3
million). Reduced bank debt by $49.6
million
- Declared a dividend of C$0.14 per
share, payable on January 26, 2024 to
shareholders of record as of January 15,
2024
"As anticipated, sales for the third quarter were down 15% as we
did not expect our Q3 results to keep pace with the record results
generated during the exceptional conditions of fiscal 2022," said
Rob Brown, ADENTRA's President and
CEO. "The sales decrease was comprised of approximately two-thirds
product price deflation and one-third lesser volumes as compared to
the same period in the prior year. Despite these headwinds, our
gross margin percentage of 21.2% was consistent with what we
achieved in the third quarter last year, underscoring our
disciplined operational execution."
"We also demonstrated the ability to tightly manage costs, with
operating expenses (excluding the one-time impact of trade case
duties accrued in the quarter) decreasing $5.6 million year-over-year in what has been a
higher inflationary environment over the past twelve months. Our
strong gross margin percentage and tight management of costs drove
an Adjusted EBITDA margin of 9.3% for the quarter, our best
performance since the third quarter of last year."
"In the quarter we further demonstrated the business's ability
to convert a high percentage of adjusted EBITDA into operating cash
flow before changes in working capital, and to release working
capital and generate additional cash flow in periods of reduced
economic activity. Third quarter operating cash flow was
$59.1 million, and this strong cash
flow generation enabled us to further reduce bank debt by
$49.6 million during the quarter,
bringing to $181.5 million the total
net debt reduction we have achieved in the first nine months of
2023. Our strong cash flow generation also supported the 8%
dividend increase announced today, bringing our quarterly dividend
to C$0.14 per share, or C$0.56 per share on an annualized basis."
"Looking forward, market headwinds are expected to persist in
the near term but our business model and strategies are designed
for success. Our performance in this period of reduced demand and
product price deflation underscores the success of our strategies
to grow and broaden our end-market participation, expand our
channels to market, diversify and strengthen our product mix, and
deepen our geographic coverage."
Outlook
The combined impact of recent inflation and interest rate hikes
is expected to have a continued near-term negative effect on
economic activity. This, in turn, is resulting in a moderation of
demand for our products as compared to 2022, and could lead to a
continuation of softer product pricing and volumes.
In the third quarter of 2023 our sales were down 15%, and we
expect fourth quarter sales to be down similarly when compared to
the same period in the prior year.
As we have demonstrated in previous business cycles and most
recently through the first nine months of 2023, we are adept at
managing our business and cash flows effectively in challenging
market conditions. Our size and scale, together with the diversity
in our product categories, customer channels and end-markets,
provide important stability while reducing our exposure to any one
geography or segment of the industry. Our strong balance sheet
provides financial stability as we move through periods of changing
market conditions, and our business model is expected to continue
converting a high proportion of EBITDA to operating cash flows
before changes in working capital. In addition, our investment in
working capital typically decreases during periods of reduced
activity, resulting in an additional source of cash.
Over the longer term our business is supported by strong
fundamentals in our end markets which include historic
under-building of homes, positive demographic factors, strong home
equity, and an aging housing stock. We continue to see a multi-year
runway for growth in the repair and remodel, residential, and
commercial markets we participate in.
Q3 2023 Investor Call
ADENTRA will hold an investor call on Thursday November 9, 2023 at 8:00 am Pacific (11:00
am Eastern). Participants should dial 1-888-664-6392 or
(416) 764-8659 (GTA) at least five minutes before the call begins.
A replay will be available through November
23, 2023 by calling toll free 1-888-390-0541 or (416)
764-8677 (GTA), followed by passcode 110261.
Summary of Results
|
|
|
|
|
|
|
|
|
|
Three
months
|
|
Three
months
|
|
Nine
months
|
|
Nine
months
|
|
|
ended
September 30
|
|
ended
September 30
|
|
ended
September 30
|
|
ended
September 30
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Total sales
|
$
558,673
|
|
$
659,685
|
|
$
1,724,465
|
|
$
2,004,834
|
|
Sales in the
US
|
516,510
|
|
610,360
|
|
1,593,682
|
|
1,847,481
|
|
Sales in Canada
(CAD$)
|
56,548
|
|
64,496
|
|
175,981
|
|
201,853
|
|
Gross profit
|
118,307
|
|
138,964
|
|
354,749
|
|
440,575
|
|
Gross profit
%
|
21.2 %
|
|
21.1 %
|
|
20.6 %
|
|
22.0 %
|
|
Operating
expenses
|
(100,860)
|
|
(90,902)
|
|
(287,707)
|
|
(268,549)
|
|
Income from
operations
|
$
17,447
|
|
$
48,062
|
|
$
67,042
|
|
$
172,026
|
|
Add: Depreciation and
amortization
|
17,390
|
|
16,830
|
|
52,121
|
|
48,523
|
|
Earnings before
interest, taxes, depreciation and
|
|
|
|
|
|
|
|
|
amortization
("EBITDA")
|
$
34,837
|
|
$
64,892
|
|
$
119,163
|
|
$
220,549
|
|
EBITDA as a % of
revenue
|
6.2 %
|
|
9.8 %
|
|
6.9 %
|
|
11.0 %
|
|
Add
(deduct):
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
(17,390)
|
|
(16,830)
|
|
(52,121)
|
|
(48,523)
|
|
Net finance
expense
|
(12,662)
|
|
(8,926)
|
|
(36,986)
|
|
(20,097)
|
|
Income tax recovery
(expense)
|
3,301
|
|
(9,260)
|
|
(3,005)
|
|
(36,650)
|
|
Net income for the
period
|
$
8,086
|
|
$
29,876
|
|
$
27,051
|
|
$
115,279
|
|
Basic earnings per
share
|
$
0.36
|
|
$
1.28
|
|
$
1.21
|
|
$
4.89
|
|
Diluted earnings per
share
|
$
0.36
|
|
$
1.27
|
|
$
1.19
|
|
$
4.85
|
|
Average US dollar
exchange rate for one Canadian dollar
|
$
0.745
|
|
$
0.766
|
|
$
0.743
|
|
$
0.780
|
|
Analysis of Specific
Items Affecting Comparability (in thousands of Canadian
dollars)
|
|
Three
months
|
|
Three
months
|
|
Nine
months
|
|
Nine
months
|
|
|
ended
September 30
|
|
ended
September 30
|
|
ended
September 30
|
|
ended
September 30
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Earnings before
interest, taxes, depreciation and
|
|
|
|
|
|
|
|
|
amortization
("EBITDA"), per table above
|
$
34,837
|
|
$
64,892
|
|
$
119,163
|
|
$
220,549
|
|
LTIP expense
|
1,293
|
|
1,075
|
|
5,986
|
|
2,927
|
|
Accrued trade
duties
|
15,640
|
|
—
|
|
15,640
|
|
—
|
|
Transaction
expense
|
—
|
|
—
|
|
—
|
|
892
|
|
Adjusted
EBITDA
|
$
51,770
|
|
$
65,967
|
|
$
140,789
|
|
$
224,368
|
|
Adjusted EBITDA as a
% of revenue
|
9.3 %
|
|
10.0 %
|
|
8.2 %
|
|
11.2 %
|
|
|
|
|
|
|
|
|
|
|
Net income for the
period, as reported
|
$
8,086
|
|
$
29,876
|
|
$
27,051
|
|
$
115,279
|
|
Adjustments, net of
tax
|
12,650
|
|
957
|
|
16,963
|
|
3,256
|
|
Adjusted net income for
the period
|
$
20,736
|
|
$
30,833
|
|
$
44,014
|
|
$
118,535
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share, as reported
|
$
0.36
|
|
$
1.28
|
|
$
1.21
|
|
$
4.89
|
|
Net impact of above
items per share
|
0.57
|
|
0.04
|
|
0.76
|
|
0.14
|
|
Adjusted basic earnings
per share
|
$
0.93
|
|
$
1.32
|
|
$
1.97
|
|
$
5.03
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share, as reported
|
$
0.36
|
|
$
1.27
|
|
$
1.19
|
|
$
4.85
|
|
Net impact of above
items per share
|
0.56
|
|
0.04
|
|
0.75
|
|
0.14
|
|
Adjusted diluted
earnings per share
|
$
0.92
|
|
$
1.31
|
|
$
1.94
|
|
$
4.99
|
|
|
|
|
|
|
|
|
|
|
Results from Operations - Three Months Ended
September 30, 2023
For the three months ended September 30, 2023, we generated
total sales of $558.7 million, as
compared to the $659.7 million we
achieved in Q3 2022 during a period of unusually high demand and
increasing product prices prices. The $101.0
million, or 15.3%, year-over-year decrease is comprised of
approximately two-thirds product price deflation and one-third
lesser volumes as compared to the same period in the prior year.
Sales results also include a $1.2
million unfavorable foreign exchange impact related to the
translation of Canadian sales to U.S. dollars for reporting
purposes.
Our U.S. operations generated third quarter sales of
$516.5 million, as compared to
$610.4 million in the same period in
2022. The $93.9 million, or 15.4%,
decrease primarily reflects lower product prices and volumes as
compared to the same period last year.
In Canada, third quarter sales
of C$56.5 million were C$7.9 million, or 12.3%, lower than the same
period in 2022. The year-over-year change in Canadian sales
primarily reflects product price deflation and to a lesser extent,
lower volumes.
We generated third quarter gross profit of $118.3 million, as compared to $139.0 million in the same period last year. The
$20.7 million, or 14.9%, decrease
primarily reflects lower sales. At 21.2%, our third quarter gross
margin percentage was slightly higher than the 21.1% achieved in Q3
2022.
For the three months ended September 30, 2023, operating
expenses increased to $100.9 million
(18.1% of sales), from $90.9 million
(13.8% of sales) in the same period last year. The $10.0 million increase was primarily driven by
accrued trade duties of $15.5 million
relating to the U.S. trade case affecting certain hardwood plywood
products produced in Vietnam.
Excluding the accrued trade duties, third quarter operating
expense decreased by $5.6 million
year-over-year to $85.3 million,
while operating expenses as a percentage of sales were 15.3% as
compared to 13.8% in Q3 2022. The decrease in underlying operating
expenses primarily reflects lower people costs, including a
reduction in variable compensation, and a decrease in premise
costs.
For the three months ended September 30, 2023, depreciation
and amortization increased to $17.4
million, from $16.8 million in
Q3 2022. Included in the depreciation and amortization was
$5.5 million of amortization on
acquired intangible assets, consistent with the same period last
year.
For the three months ended September 30, 2023, net finance
expense increased to $12.7 million,
from $8.9 million in Q3 2022. This
included $8.9 million of interest on
bank borrowing, as compared to $8.6
million in Q3 2022, primarily reflecting higher interest
rates, partially offset by lower bank indebtedness. We implemented
an interest rate swap during the third quarter which is expected to
mitigate some interest rate variability risk going
forward.
For the three months ended September 30, 2023, we
recognized an income tax recovery of $3.3
million as compared to an income tax expense of $9.3 million in the same period last year.
Current period income tax recovery primarily reflects changes in
estimates which lowered our taxable income, in addition to the
benefits resulting from other restructuring.
We generated third quarter Adjusted EBITDA of $51.8 million, as compared to $66.0 million during the same period in 2022.
This $14.2 million, or 21.5%,
year-over-year change largely reflects the $20.7 million decrease in gross profit, partially
offset by the $6.5 million decrease
in operating expenses (before changes in depreciation and
amortization, LTIP expense, and accrued trade duties).
Net income for the third quarter of 2023 was $8.1 million (basic earnings per share of
$0.36), as compared to $29.9 million (basic earnings per share of
$1.28) in Q3 2022. Accrued trade
duties and a moderating economic environment were the primary
factors in the year-over-year change. The $21.8 million, or 72.9%, decrease in net income
includes lower EBITDA of $30.1
million, an increase in net finance expense of $3.7 million, and an increase in depreciation and
amortization of $0.6 million,
partially offset by a $12.6 million
reduction in income tax expense.
After adjusting for accrued trade duties and LTIP expense, third
quarter adjusted net income was $20.7
million, as compared to $30.8
million in Q3 2022 and Adjusted basic earnings per share
were $0.93, as compared to
$1.32 in Q3 2022.
Results from Operations - Nine Months Ended
September 30, 2023
For the nine months ended September 30, 2023, we generated
total sales of $1.72 billion, as
compared to $2.0 billion in the same
period in 2022. The $280.4 million,
or 14.0%, decrease primarily reflects a $302.0 million reduction in organic sales,
partially offset by $28.0 million of
incremental revenue from our acquisitions of Mid-Am and Rojo. The
decrease in organic sales is comprised of approximately one-quarter
product price deflation and three-quarters lesser volume as
compared to the same period in the prior year. An unfavorable
foreign exchange impact related to the translation of Canadian
sales to U.S. dollars for reporting purposes accounted for the
remaining $6.4 million of sales
impact.
Nine month sales from our U.S. operations were $1.59 billion, as compared to $1.85 billion in the same period in 2022. The
$253.8 million, or 13.7%, decrease
reflects a $281.8 million
year-over-year market-driven reduction in organic sales following
the record-setting pace achieved in 2022. Organic sales in the U.S.
were primarily impacted by lower volumes and to a lesser extent,
product price deflation, partially offset by the addition of
$26.4 million of incremental revenue
from a full nine months of Mid-Am's results, as compared to just
under eight months' contribution in the same period last year.
Year-to-date U.S. sales also include $1.6
million of contribution from the Rojo business acquired in
the first quarter.
In Canada, sales for the first
nine months decreased by C$25.9
million to C$176.0 million,
from C$201.9 million in the same
period in 2022. This 12.8% change primarily reflects lower volumes
and product prices.
We generated gross profit of $354.7
million in the first nine months of 2023, as compared to
$440.6 million in the same period
last year. The $85.8 million, or
19.5%, year-over-year decrease reflects lower organic sales and a
gross profit percentage of 20.6%, as compared to 22.0% in the same
period in 2022. Our prior-year gross profit percentage was
temporarily elevated due to favorable market dynamics, including
strong demand and tight supply.
For the nine months ended September 30, 2023, operating
expenses increased by $19.2 million
to $287.7 million (16.7% of sales),
from $268.5 million (13.4% of sales)
in the same period last year. The $19.2 million increase primarily reflects accrued
trade duties of $15.5 million.
Excluding the accrued trade duties, operating expenses were
$272.2 million, $3.6 million higher than in the same period in
2022, and operating expense as a percentage of sales was 15.8%, as
compared to 13.4%. The increase in operating expenses was primarily
driven by $3.2 million of incremental
operating expenses from the inclusion of a full nine months'
results from the recently acquired Mid-Am operations and
$1.0 million of amortization on
intangible assets acquired in connection with the Mid-Am
acquisition, partially offset by a $0.6
million decrease in organic expenses.
For the nine months ended September 30, 2023, depreciation
and amortization increased to $52.1
million, from $48.5 million in
the same period of 2022. This $3.6
million increase includes $1.5
million of incremental depreciation and amortization related
to the Mid-Am acquisition, and $2.1
million attributed to higher depreciation on premise leases
in our existing operations. Included in the $52.1 million total is $16.6 million of amortization on acquired
intangible assets, as compared to $16.1
million in the prior-year period.
For the nine months ended September 30, 2023, net finance
expense increased to $37.0 million,
from $20.1 million in the same period
last year. Year-to-date net finance expense included $28.2 million of interest on bank borrowing, as
compared to $17.1 million last year,
reflecting higher interest rates on bank indebtedness in the
current period. We have entered into an interest rate swap to
mitigate some of our exposure to interest rate
variability.
For the nine months ended September 30, 2023, income tax
expense decreased to $3.0 million,
from $36.7 million in the same period
of 2022, primarily reflecting lower taxable income. The effective
tax rate for the first nine months was 10.0%, as compared to 24.1%
in the same period last year, which the decrease in effective tax
rate primarily reflects the benefit of other
restructuring.
We generated Adjusted EBITDA of $140.8
million in the first nine months of 2023, as compared to
$224.4 million during the same period
in 2022. The $83.6 million, or 37.3%,
change primarily reflects the $85.8
million decrease in gross profit and the $2.2 million decrease in operating expenses
(before changes in depreciation and amortization, LTIP expense, and
accrued trade duties).
Net income for the first nine months of 2023 was $27.1 million, as compared to $115.3 million in the same period in 2022. The
$88.2 million, or 76.5%, decrease
primarily reflects $101.4 million
lower EBITDA, a $3.6 million increase
in depreciation and amortization, and a $16.9 million increase in net finance expense,
partially offset by a $33.6 million
decrease in income tax expense.
For the nine months ended September 30, 2023, we generated
basic earnings per share of $1.21, as
compared to $4.89 in the same period
last year. Adjusted net income was $44.0
million, as compared to $118.5
million in the first nine months of 2022, and Adjusted basic
earnings per share were $1.97, as
compared to $5.03 in the same period
last year.
About ADENTRA
ADENTRA is one of North
America's largest distributors of architectural building
products to the residential, repair and remodel, and commercial
construction markets. The Company currently operates a network of
85 facilities in the United States
and Canada. ADENTRA's common
shares are listed on the Toronto Stock Exchange under the symbol
ADEN.
Non-GAAP and other Financial Measures
In this news release, reference is made to the following
non-GAAP financial measures:
- "Adjusted EBITDA" is EBITDA before long term incentive plan
("LTIP") expense, professional fees and transaction expenses. We
believe Adjusted EBITDA is a useful supplemental measure for
investors, and is used by management, for evaluating our ability to
meet debt service requirements and fund organic and inorganic
growth, and as an indicator of relative operating performance.
- "Adjusted net income" is net income before LTIP expense,
professional fees and transaction expenses. We believe adjusted
profit is a useful supplemental measure for investors, and is used
by management, for evaluating our profitability, our ability to
meet debt service and capital expenditure requirements, our ability
to generate cash flow from operations, and as an indicator of
relative operating performance.
- "EBITDA" is earnings before interest, income taxes,
depreciation and amortization, where interest is defined as net
finance income (expense) as per the consolidated statement of
comprehensive income. We believe EBITDA is a useful supplemental
measure for investors, and is used by management, for evaluating
our ability to meet debt service requirements and fund organic and
inorganic growth, and as an indicator of relative operating
performance.
- "Organic growth" and "acquisition-based growth" consists of
quantifying the change in total sales as either related to organic
growth or acquisition-based growth, or the impact of foreign
exchange related to the translation of Canadian sales to U.S.
dollars. Total sales earned by acquired companies in the first 12
months following an acquisition is reported as acquisition-based
growth and thereafter as organic growth. Organic growth excludes
the impact of acquisitions and foreign exchange impact related to
the translation of Canadian sales to U.S. dollars. From time to
time, we also quantify the impacts of certain unusual events to
organic growth to provide useful information to investors to help
better understand our financial results.
In this news release, reference is also made to the following
non-GAAP ratios: "adjusted basic earnings per share", "adjusted
diluted earnings per share", "Adjusted EBITDA margin" and "Leverage
Ratio". For a description of the composition of each non-GAAP ratio
and how each non-GAAP ratio provides useful information to
investors and is used by management, see "Non-GAAP and Other
Financial Measures" in the Company's management's discussion and
analysis for the year ended December 31,
2022 (which is incorporated by reference herein).
Such non-GAAP financial measures and non-GAAP ratios are not
standardized financial measures under International Financial
Reporting Standards ("IFRS") and might not be comparable to similar
financial measures disclosed by other issuers. For reconciliation
between non-GAAP measures and the most directly comparable
financial measure in our financial statements, please refer to the
"Summary of Results".
Forward-Looking Statements
Certain statements in this press release contain forward-looking
information within the meaning of applicable securities laws in
Canada ("forward-looking
information"). The words "anticipates", "believes", "budgets",
"could", "estimates", "expects", "forecasts", "intends", "may",
"might", "plans", "projects", "schedule", "should", "will", "would"
and similar expressions are often intended to identify
forward-looking information, although not all forward-looking
information contains these identifying words.
The forward-looking information in this press release includes,
but is not limited to: In the quarter we further demonstrate the
business's ability to convert a high percentage of adjusted EBITDA
into operating cash flow before changes in working capital, and to
release working capital and generate additional cash flow in
periods of reduced economic activity; looking forward, market
headwinds are expected to persist in the near term but our business
model and strategies are designed for success; our performance in
this period of reduced demand and product price deflation
underscores the success of our strategies to grow and broaden our
end-market participation, expand our channels to market, diversify
and strengthen our product mix, and deepen our geographic coverage;
the combined impact of recent inflation and interest rate hikes is
expected to have a continued near-term negative effect on economic
activity; this, in turn, is resulting in a moderation of demand for
our products as compared to 2022, and could lead to a continuation
of softer product pricing and volumes; in the third quarter of 2023
our sales were down 15%, and we expect fourth quarter sales to be
down similarly when compared to the same period in the prior year;
as we have demonstrated in previous business cycles and most
recently through the first nine months of 2023, we are adept at
managing our business and cash flows effectively in challenging
market conditions; our size and scale, together with the diversity
in our product categories, customer channels and end-markets,
provide important stability while reducing our exposure to any one
geography or segment of the industry; our strong balance sheet
provides financial stability as we move through periods of changing
market conditions, and our business model is expected to continue
converting a high proportion of EBITDA to operating cash flows
before changes in working capital; in addition, our investment in
working capital typically decreases during periods of reduced
activity, resulting in an additional source of cash; over the
longer term our business is supported by strong fundamentals in our
end markets which include historic under-building of homes,
positive demographic factors, strong home equity, and an aging
housing stock; we continue to see a multi-year runway for growth in
the repair and remodel, residential, and commercial markets we
participate in.
The forecasts and projections that make up the forward-looking
information are based on assumptions which include, but are not
limited to: there are no material exchange rate fluctuations
between the Canadian and U.S. dollar that affect our performance;
the general state of the economy does not worsen; we do not lose
any key personnel; there is no labor shortage across multiple
geographic locations; there are no circumstances, of which we are
aware that could lead to the Company incurring costs for
environmental remediation; there are no decreases in the supply of,
demand for, or market values of our products that harm our
business; we do not incur material losses related to credit
provided to our customers; our products are not subjected to
negative trade outcomes; we are able to sustain our level of sales
and earnings margins; we are able to grow our business long term
and to manage our growth; we are able to integrate acquired
businesses; there is no new competition in our markets that leads
to reduced revenues and profitability; we can comply with existing
regulations and will not become subject to more stringent
regulations; no material product liability claims; importation of
components or other innovative products does not increase and
replace products manufactured in North
America; our management information systems upon which we
are dependent are not impaired; we are not adversely impacted by
disruptive technologies; an outbreak or escalation of a contagious
disease does not adversely affect our business; and, our insurance
is sufficient to cover losses that may occur as a result of our
operations.
The forward-looking information is subject to risks,
uncertainties and other factors that could cause actual results to
differ materially from historical results or results anticipated by
the forward-looking information. The factors which could cause
results to differ from current expectations include, but are not
limited to: exchange rate fluctuations between the Canadian and
U.S. dollar could affect our performance; our results are dependent
upon the general state of the economy; impacts of COVID-19, further
mutations thereof or other outbreaks of disease, could have
significant impacts on our business; we depend on key personnel,
the loss of which could harm our business; a labour shortage across
multiple geographic locations could harm our business; decreases in
the supply of, demand for, or market values of hardwood lumber or
sheet goods could harm our business; we may incur losses related to
credit provided to our customers; our products may be subject to
negative trade outcomes; we may not be able to sustain our level of
sales or earnings margins; we may be unable to grow our business
long term or to manage any growth; we are unable to integrate
acquired businesses; competition in our markets may lead to reduced
revenues and profitability; we may fail to comply with existing
regulations or become subject to more stringent regulations;
product liability claims could affect our revenues, profitability
and reputation; importation of components or other innovative
products may increase, and replace products manufactured in
North America; disruptive
technologies could lead to reduced revenues or a change in our
business model; we are dependent upon our management information
systems; disruptive technologies could lead to reduced revenues or
a change in our business model; our information systems are subject
to cyber securities risks; our insurance may be insufficient to
cover losses that may occur as a result of our operations; an
outbreak or escalation of a contagious disease may adversely affect
our business; our credit facility affects our liquidity, contains
restrictions on our ability to borrow funds, and impose
restrictions on distributions that can be made by us and certain of
our subsidiaries; the market price of our Shares will fluctuate;
there is a possibility of dilution of existing Shareholders; and,
other risks described in our annual information form and in our
management's discussion and analysis for the year ended
December 31, 2022, each of which are
available on the Company's profile at www.sedarplus.ca.
This news release contains information that may constitute a
"financial outlook" within the meaning of applicable securities
laws. The financial outlook has been approved by management as of
the date of this news release. The financial outlook is provided
for the purpose of providing readers with an understanding of the
Company's anticipated financial performance. Readers are cautioned
that the information contained in the financial outlook may not be
appropriate for other purposes.
All forward-looking information in this news release is
qualified in its entirety by this cautionary statement and, except
as may be required by law, we undertake no obligation to revise or
update any forward-looking information as a result of new
information, future events or otherwise after the date
hereof.
Third-Party Information
Certain information contained in this news release includes
market and industry data that has been obtained from or is based
upon estimates derived from third-party sources, including industry
publications, reports and websites. Although the data is believed
to be reliable, we have not independently verified the accuracy,
currency or completeness of any of the information from third-party
sources referred to in this news release or ascertained from the
underlying economic assumptions relied upon by such sources. We
hereby disclaim any responsibility or liability whatsoever in
respect of any third-party sources of market and industry data or
information.
SOURCE ADENTRA Inc.