HIGHLIGHTS
(All amounts are in Canadian dollars,
unless otherwise indicated.)
- Revenues of $73.2 million and
$123.6 million recorded during the
3-month and 6-month periods ended July 31,
2021, respectively, up compared with the same periods a year
ago.
- Order backlog totalling $374.0
million as at July 31, 2021,
excluding new contracts totalling $50.0
million signed since July 31,
2021.
- Limited impact of COVID-19 on ADF's operations during the first
semester ended July 31, 2021.
TERREBONNE, QC, Sept. 9, 2021 /CNW Telbec/ - ADF GROUP
INC. ("ADF" or the "Corporation") (TSX: DRX), recorded
revenues of $73.2 million during the
second quarter ended July 31, 2021,
compared with $42.5 million for the
same period a year earlier. After the first six months of the
fiscal year, revenues totaled $123.6
million, which is $35.3
million more than the same period a year earlier, in line
with the growth of the order backlog in recent quarters.
Gross margin, as a percentage of revenues, went from 17.4% for
the 3-month period ended July 31,
2020, to 7.7% for the same period ended July 31, 2021. Gross margin, as a percentage of
revenues, went from 13.9%, during the first semester ended
July 31, 2020, to 10.9% for the same period ended
July 31, 2021. These decreases are
mainly due to the pressure exerted on margins given the fabrication
start of some projects that were signed with lower prices.
For the quarter ended July 31,
2021, ADF recorded a net income of $1.5 million ($0.05
per share, basic and diluted) compared with a net income of
$2.1 million ($0.06 per share, basic and diluted) a year
earlier. At the close of the first semester, being July
31, 2021, net income totaled $5.9
million ($ 0.18 per share,
basic and diluted) compared to net income of $ 2.2 million (0.07 $ per share, basic and
diluted) for the same period one year earlier.
The Corporation's backlog stood at $374.0
million as at July 31, 2021,
compared with $436.2 million as at
January 31, 2021. The current order
backlog will extend until end of the fiscal year ending
January 31, 2023.
As of July 31, 2021, the
Corporation's working capital stood at $33.6
million. Operating activities generated $10.4 million in cash during the first six months
ended July 31, 2021. The Corporation
remains in a good position to continue its current operations and
carry out its development projects.
Financial Highlights
|
3
Months
|
6
Months
|
|
|
|
|
|
Periods ended July
31,
|
2021
|
2020
|
2021
|
2020
|
(In thousands of
dollars, and dollars per share)
|
$
|
$
|
$
|
$
|
Revenues
|
73,171
|
42,496
|
123,558
|
88,293
|
Earnings before
interest, taxes, depreciation and amortization (EBITDA)
|
3,074
|
4,577
|
9,186
|
7,544
|
Net income
|
1,498
|
2,112
|
5,893
|
2,180
|
— Per share (basic
and diluted)
|
0.05
|
0.06
|
0.18
|
0.07
|
Cash flows(used in)
from operating activities
|
(1,854)
|
9,575
|
10,376
|
21,622
|
(In
thousands)
|
Number
|
Number
|
Number
|
Number
|
Average number of
outstanding shares (basic and diluted)
|
32,635
|
32,635
|
32,635
|
32,635
|
|
|
|
|
|
New Contracts
The Corporation announces today the signing of new contracts
totalling nearly $50.0 million, in
Canada and the United States. The largest of these new
contracts was won in the transportation infrastructure sector in
the Western USA. Fabrication work
is scheduled to begin in early 2022 at both ADF's plants located in
Terrebonne, Quebec and in
Great Falls, Montana, and run
until the fall of 2022, followed by the steel erection work of this
new structure at the job site, which is scheduled to extend
approximately over a 10-month period.
Outlook
"The three-month and six-month periods ending this July 31st, reflect the efforts made
toward growing the order backlog, with a marked increase in
revenues. The revenue mix for the quarter ended July 31, 2021, however put some pressure on the
quarterly margins," said Jean
Paschini, Chairman of the Board of Directors and Chief
Executive Officer.
"That said, the level of activity in markets served by ADF
remains high, and although the announcement of new contracts takes
a little longer than anticipated, we are still confident that we
can continue to grow the Corporation's order backlog," concluded
Mr. Paschini.
Dividend
On September 8, 2021, ADF Group
announced the payment of a semi-annual dividend of $0.01 per subordinate voting share and per
multiple voting shares, which will be paid on October 15, 2021 to shareholders of record as of
September 30, 2021.
COVID-19
The Corporation has taken all necessary steps to protect its
employees and business partners, and will continue to follow the
advice and recommendations of local authorities wherever the
Corporation conducts business. These measures have resulted in
operational costs and inefficiencies that have been offset by the
government incentives previously mentioned. This situation is
changing rapidly and the Corporation will continue to monitor and
mitigate development affecting its personnel, suppliers, customers
and the general public to the extent it can.
Conference Call with Investors
A conference call with investors is scheduled for this morning,
September 9, 2021 at 10 a.m. (Montreal time) to discuss the results of
Corporation second quarter and first semester ended July 31, 2021.
To take part in the conference call, dial 1 (888) 390-0620, a
few minutes prior to the conference call scheduled start time.
Members of the media are invited to listen in.
A replay of this conference call will be available from
1:00 p.m. today, until Thursday, September 16, 2021, by dialing
1 (888) 259-6562, followed by the access code 632398#.
The conference call (audio) will also be available at
www.adfgroup.com.
About ADF Group Inc. | ADF Group Inc. is a North
American leader in the design and engineering of connections,
fabrication, including the application of industrial coatings,
and installation of complex steel structures, heavy steel
built-ups, as well as in miscellaneous and architectural metals for
the non-residential infrastructure sector. 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, and a Construction Division
in the United States, which
specializes in the installation of steel structures and other
related products.
Forward-Looking Information | This press release contains
forward-looking statements reflecting ADF's 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.
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
IFRS measures.
All amounts are in Canadian dollars, unless otherwise
indicated.
SOURCE ADF Group Inc.