TERREBONNE, QC, Oct. 9, 2019 /CNW Telbec/ - ADF GROUP INC.
("ADF" or the "Corporation") Ticker symbol: (TSX: DRX), a North
American leader in the fabrication of steel superstructures,
announces an out-of-court settlement of a suit in Florida, USA.
This settlement ends a legal dispute opposing ADF to one of its
clients with regard to a structural steel fabrication and
installation contract in Florida,
USA. ADF's Management and its Board of Directors, deemed it
appropriate, considering all the factors involved, to settle out of
court.
Thus, within the next few days, ADF should collect a total sum
of $13.7 million (US$10.5 million). This settlement will however
generate a pre-tax loss of $6.9
million (US$5.3 million) which
will be recognized in the results for the quarter ending
October 31, 2019, given the write-off
of an equivalent amount under the Corporation's ″Contract Assets″
financial statement heading.
Mr. Jean Paschini, Co-Chair of the Board of
Directors and Chief Executive Officer of ADF Group Inc., indicates
that ″taking into account all the factors related to this
litigation, and although we were confident that we would have been
able to pursue the legal proceedings, we deemed it more appropriate
to look forward in order to continue growing our order backlog. The
significant sums we should receive in the coming days will allow us
to support this growth, despite the short-term impact this
settlement will have on our financial results″.
RESULTS FOR THE THIRD QUARTER ENDED OCTOBER 31, 2019
The Corporation will publish the results for the third quarter
ending October 31, 2019, on
December 5, 2019, prior to the
opening of the markets.
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.