HIGHLIGHTS
(All amounts are in Canadian dollars,
unless otherwise indicated.)
- Solid increase of 68% and 50% in revenues during the
three-month and six-month periods ended July
31, 2019 respectively compared with the same periods a year
ago.
- Net income improvement year-over-year.
- New orders totalling $165.0
million signed during the second quarter.
- Order backlog at $345.1 million
as at July 31, 2019, up from
January 31, 2019.
TERREBONNE, QC, Sept. 12, 2019 /CNW Telbec/ - ADF GROUP
INC. ("ADF" or the "Corporation") (TSX: DRX), recorded revenues
of $54.1 million during the quarter
ended July 31, 2019, compared with
$32.2 million for the same period a
year ago. After the first semester of the current fiscal year, the
Corporation recorded revenues of $91.3
million, which is $30.6
million more than for the same period last year.
Gross margin, as a percentage of revenue, went from 6.4% for the
three-month period ended July 31,
2018, to 10.6% for the same period ended July 31, 2019. The margin improvement was even
more significant on a cumulative basis, which went from 4.7% for
the six months ended July 31, 2018,
to 12.6% for the same period ended July 31,
2019. These increases, as a percentage of revenues is
attributable to an increase in business volume and a better
absorption of fixed costs in line with the increase in the level of
fabrication activities. It should be noted that the results for the
first semester ended July 31, 2018,
were negatively impacted by the uncertainty surrounding the new
tariffs on steel and aluminum imports.
For the second quarter ended July 31,
2019, ADF recorded a net income of $0.4 million ($0.01
per share, basic and diluted) compared to a net loss of
$0.5 million (-$0.02 per share, basic and diluted) a year
earlier. After the first six months, the Corporation recorded a net
income of $2.0 million ($0.06 per share, basic and diluted) on
July 31, 2019, compared to a net loss
of $1.4 million (-$0.04 per share, basic and diluted) for the same
period a year ago.
The order backlog of the Corporation stood at $345.1 million as at July
31, 2019, compared with $219.5
million as at January 31, 2019. The current order
backlog will extend until the end of the next fiscal year ending
January 31, 2021.
On July 31, 2019, the Corporation's working capital stood at $34.2 million.
Operating activities generated $0.8
million liquidities during the first six-month period ended
July 31, 2019.
The Corporation remains well positioned to support
its ongoing operations and pursue its development projects.
Financial Highlights
|
3
Months
|
6
Months
|
|
|
|
|
|
Periods ended July
31,
|
2019
|
2018
|
2019
|
2018
|
(In thousands of
dollars, and dollars per share)
|
$
|
$
|
$
|
$
|
|
|
|
|
|
Revenues
|
54,119
|
32,220
|
91,265
|
60,697
|
Earnings before
interest, taxes, depreciation and amortization (EBITDA)
|
3,012
|
109
|
6,031
|
(1,077)
|
Net income
(loss)
|
419
|
(532)
|
2,037
|
(1,442)
|
— Per share (basic
and diluted)
|
0.01
|
(0.02)
|
0.06
|
(0.04)
|
Cash flows from (used
in) operating activities
|
3,570
|
4,187
|
754
|
(24)
|
|
|
|
|
|
(In
thousands)
|
Number
|
Number
|
Number
|
Number
|
Average number of
outstanding shares (basic and diluted)
|
32,635
|
32,635
|
32,635
|
32,635
|
|
|
|
|
|
New Orders
On June 12, 2019, the Corporation
announced the signing of a series of new commercial agreements in
the commercial building sector in the
United States, worth a total of $165.0 million. The scope of the largest project
among this series of new commercial agreements, in terms of value,
involves erecting the entire steel structure of a new multi-story
building in Southeastern U.S.A.,
and includes design-assist services, the design and engineering of
connections, as well as the fabrication and industrial coating. The
fabrication and steel erecting work are scheduled to begin next
year.
The other largest project, in terms of value, consists in the
design and engineering of connections, the supply of the material
(steel), the fabrication work, which includes the application of
industrial coating, as well as construction engineering services
and the installation of the steel structure of a new commercial
building on the U.S. West Coast. The fabrication portion of this
new project will begin in the coming weeks.
Outlook
"We are pleased with the improvement in our results so far. We
continue our efforts to increase the order backlog, which remains
the cornerstone of our growth" said Mr. Jean Paschini, Co-Chairman of the Board and
Chief Executive Officer. "In addition, given our backlog and the
pipeline of projects we are currently bidding on, we are confident
and we look forward to the coming quarters with optimism" concluded
Mr. Paschini.
Dividend
On September 11, 2019, ADF Group's
Board of Directors approved the payment of a semi-annual dividend
of $0.01 per share, which will be
paid on October 16, 2019 to
shareholders of record as at September 30,
2019.
Conference Call with Investors
A conference call with investors is scheduled for today at
10 a.m. (Eastern time) to discuss the
results of the second quarter and first semester ended July 31, 2019.
To take part in the conference call, dial 1-888-390-0549,
a few minutes prior to the conference call scheduled start time. A
replay of this conference call will be available from 1:00 p.m. today until 11:59 p.m., September 19,
2019, by dialing 1 (888) 259-6562, followed by the
access code 055635 #.
The conference call (audio) will also be available at
www.adfgroup.com. Members of the media are invited to listen
in.
About ADF Group Inc.
ADF Group Inc. is a North American leader in the design and
engineering of connections, fabrication, including industrial
coatings, 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. The
Corporation operates two fabrication plants and two paint shops, in
Canada and in the United States.
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. Refer to the section "Non-GAAP Measures" of
the Corporation's Management's Discussion and Analysis for the
definition of this metric and reconciliation to the most comparable
IRFS measures.
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.
SOURCE ADF Group Inc.