Highlights
- Sales of $184.1 million, up 18.0%
from $156.0 million a year ago
- Operating income of $27.6
million, compared to $9.9
million a year ago
- Adjusted EBITDA1 of $33.1
million or 18.0% of sales, compared to $19.6 million or 12.6% of sales a year ago
- Earnings per share increased to $0.61 compared to $0.18 last year and to $0.49 from $0.18 on
an adjusted1 basis
- Cash flows related to operating activities increased to
$19.7 million compared to
$4.5 million last year
- Backlog reached a record $951.0
million, bolstered by both civil and defence orders, up
from $864.0 million last year
LONGUEUIL, QC, May 22, 2024
/CNW/ - Héroux-Devtek Inc. (TSX: HRX) ("Héroux-Devtek" or the
"Corporation"), a leading international manufacturer of aerospace
products and the world's third-largest landing gear manufacturer,
today reported its financial results for the fourth quarter ended
March 31, 2024. Unless otherwise indicated, all amounts are in
Canadian dollars.
"I am proud to announce a very strong quarter of sales and
profitability. These results were driven by the many measures put
in place over the last two years to improve productivity through
automation, the stabilization of our production systems and pricing
initiatives. I am confident that this marks the beginning of a
sustainable trend of improving performance propelled by our great
teams who are now better equipped to manage the persistent supply
chain issues," said Martin Brassard,
President and CEO of Héroux-Devtek.
"As we look ahead, the current macroeconomic environment is
favourable for Héroux-Devtek, especially in the defence sector. The
demand from prime contractors around the world for our products has
never been higher, which demonstrates the trust and recognition our
clients place in the quality, safety, and excellence of our
products" added Mr. Brassard.
FINANCIAL
HIGHLIGHTS
|
Quarters ended March
31,
|
|
Twelve months ended
March 31,
|
(in thousands, except
per share data)
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Sales
|
$
184,053
|
|
$
155,978
|
|
$
629,767
|
|
$
543,622
|
Operating
income
|
27,612
|
|
9,879
|
|
59,763
|
|
26,198
|
Adjusted
EBITDA1
|
33,069
|
|
19,595
|
|
92,184
|
|
61,366
|
Net income
|
20,693
|
|
6,288
|
|
38,271
|
|
13,825
|
Adjusted net
income1
|
16,732
|
|
6,288
|
|
34,310
|
|
12,606
|
Cash flows related to
operating activities
|
19,743
|
|
4,518
|
|
2,933
|
|
30,060
|
Free cash
flow1
|
10,267
|
|
(8,740)
|
|
(31,501)
|
|
(1,718)
|
In dollars per
share
|
|
|
|
|
EPS –
diluted
|
$
0.61
|
|
$
0.18
|
|
$
1.13
|
|
$
0.40
|
Adjusted
EPS1
|
0.49
|
|
0.18
|
|
1.01
|
|
0.37
|
__________________________________
|
1 This is
a non-IFRS measure. Please refer to the "Non-IFRS Measures"
section at the end of this press release.
|
FOURTH QUARTER RESULTS
Consolidated sales increased 18.0% to a record $184.1 million from $156.0
million in the same period last year, largely as a result of
the actions taken to better navigate the challenges of the current
environment.
Civil sales were up 55.0% to $75.8
million, mainly driven by increased deliveries for the
Boeing 777, Embraer Praetor and E2 programs. Defence sales were
slightly up at $108.2 million, a 1.1%
increase compared to the same quarter last year, mainly due to
higher aftermarket business for legacy programs and higher
deliveries for the Sikorsky CH-53K and Lockheed Martin F-35
programs, partly offset by lower demand for Boeing F-18
production.
Gross profit increased to $39.4
million from $22.7 million or
to 21.4% of sales from 14.6% last year due to the positive impact
of higher volume and pricing initiatives, partly offset by the
effects of inflation on costs.
As a result, operating income increased to $27.6 million, or 15.0% of sales, from
$9.9 million, or 6.3% of sales last
year. Adjusted EBITDA1, for the same reasons, rose 68.8%
to $33.1 million, or 18.0% of sales,
from $19.6 million or 12.6% of sales
last year.
Net income increased to $20.7
million, or $0.61 per diluted
share compared to $6.3 million or
$0.18 per diluted share in the
corresponding quarter last year. On an adjusted1 basis,
net income increased to $16.7 million
or $0.49 per share compared to
$6.3 million or $0.18 last year.
FISCAL 2024 RESULTS
Consolidated sales increased 15.8% to a record $629.8 million, from $543.6 million last year, exceeding pre-pandemic
levels through growth in both civil and defence market segments as
well as the 2.8% positive impact of foreign exchange.
Civil sales were up 42.6% to $243.4
million, mainly driven by increased deliveries for the
Boeing 777, Embraer Praetor and E2 programs. Defence sales were up
3.6% at $386.4 million,mainly due to
higher aftermarket business for legacy programs as well as higher
deliveries for the Sikorsky CH-53K and Lockheed Martin F-35
programs. These positive elements were partly offset by lower
demand for Boeing F-18 production.
Gross profit was $111.1 million or
17.6% of sales compared to $73.5
million or 13.5% of sales last year. This is mainly due to
the positive impact of higher volume and pricing initiatives,
partly offset by the effects of inflation on costs.
As a result, operating income increased to $59.8 million or 9.5% of sales from
$26.2 million or 4.8% of sales
last year. Adjusted EBITDA1, for the same reasons, rose
50.2% to $92.2 million, or 14.6%
of sales, from $61.4 million or
11.3% last year.
Net income for the fiscal year stood at $38.3 million, or $1.13 per diluted share, up from $13.8 million, or $0.40 per diluted share last year. Adjusted net
income rose to $34.3 million or
$1.01 per share, up from $12.6 million or $0.37 last year.
FINANCIAL POSITION
Cash flows related to operating activities reached $19.7 million in the fourth quarter compared
to $4.5 million during the
corresponding period last year that reflects the impact of higher
throughput. For the fiscal year, cash flows related to operating
activities stood at $2.9 million, compared to $30.1 million last year, mainly resulting
from a lower increase in customer advances and progress
billings.
As at March 31, 2024, net debt stood at $209.9 million an increase as compared to
$165.0 million as at
March 31, 2023 mainly as a result of the investments in
inventory. The improved profitability over the fiscal year offset
the effects of increasing net debt on the net debt to adjusted
EBITDA1 ratio, which decreased to 2.3x from 2.7x at
March 31, 2023.
CONFERENCE CALL
Héroux-Devtek Inc. will hold a conference call to discuss these
results on Wednesday, May 22, 2024,
at 8:30 AM Eastern Time. Interested
parties can join the call by dialing 1-888-390-0549. The conference
call can also be accessed via live webcast on Héroux-Devtek's
website, https://investors.herouxdevtek.com/events-webcasts or at
https://app.webinar.net/mDa5YWkYKq4.
If you are unable to call in at this time, you may access a
tape-recording of the meeting by calling toll-free 1-888-390-0541
and entering the passcode 291322 on your phone. Local dial-in
number is 1-416-764-8677. This recording will be available from
Wednesday, May 22, 2024, as of
11:30 AM, until 23:59 PM on
Wednesday, May 29, 2024.
FORWARD-LOOKING STATEMENTS
Except for historical information provided herein, this press
release contains information and statements of a forward-looking
nature concerning the future performance of the Corporation,
including sales volume and profitability. These statements are
provided for the purpose of assisting the reader in understanding
the Corporation's financial performance and prospects and to
present management's assessment of future plans and operations, and
the reader is cautioned that such statements may not be appropriate
for other purposes.
Forward-looking statements are based on assumptions and on
management's best possible evaluation of future events and are
subject to risks, uncertainties and other important factors that
could cause the Corporation's actual performance to differ
materially from expected results expressed in or implied by such
statements. Such factors include, but are not limited to customers,
supply chain, the aerospace industry and the economy in general;
the impact of other worldwide geopolitical and general economic
conditions; industry conditions including changes in laws and
regulations; increased competition; the lack of availability of
qualified personnel or management; availability of commodities and
fluctuations in commodity prices; financial and operational
performance of suppliers and customers; foreign exchange or
interest rate fluctuations; and the impact of accounting policies
issued by international standard setters. For further details,
please see the Risk Management section under Additional Information
in the Corporation's MD&A. Readers are cautioned that the
foregoing list of factors that may affect future growth, results
and performance is not exhaustive and undue reliance should not be
placed on forward-looking statements.
As a result, readers are advised that actual results may differ
materially from expected results. Unless otherwise required by
applicable securities laws, the Corporation expressly disclaims any
intention, and assumes no obligation to update or revise any
forward-looking statements whether as a result of new information,
future events or otherwise.
NON-IFRS FINANCIAL MEASURES
Earnings before interest, taxes, depreciation and amortization
("EBITDA"), adjusted EBITDA, adjusted net income, adjusted earnings
per share and free cash flow are financial measures not prescribed
by International Financial Reporting Standards ("IFRS") and are not
likely to be comparable to similar measures presented by other
issuers. Management considers these to be useful information to
assist investors in evaluating the Corporation's profitability,
liquidity and ability to generate funds to finance its operations.
Refer to Non-IFRS Financial Measures section under Operating
Results in the Corporation's MD&A for definitions of these
measures and reconciliations to the most comparable IFRS
measures.
ABOUT HÉROUX-DEVTEK
Héroux-Devtek Inc. (TSX: HRX) is an international company
specializing in the design, development, manufacture, repair and
overhaul of aircraft landing gear, hydraulic and electromechanical
actuators, custom ball screws and fracture-critical components for
the Aerospace market. The Corporation is the third-largest landing
gear company worldwide, supplying both the defence and commercial
sectors. Approximately 94% of the Corporation's sales are outside
of Canada, including about 57% in
the United States. The
Corporation's head office is located in Longueuil, Québec with facilities in
Canada, the United States, the United Kingdom and Spain.
SOURCE Héroux-Devtek Inc.