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Press release from CNW Group

5N Plus Inc. Reports $10.1 Million EBITDA, $5.5 Million Net Earnings and Debt Reduction for the First Quarter Ended March 31, 2013

Monday, May 13, 2013

5N Plus Inc. Reports $10.1 Million EBITDA, $5.5 Million Net Earnings and Debt Reduction for the First Quarter Ended March 31, 2013

17:38 EDT Monday, May 13, 2013

MONTREAL, May 13, 2013 /CNW Telbec/ - 5N Plus Inc. (TSX: VNP), the leading producer of specialty metal and chemical products, today reported financial results for the first quarter ended March 31, 2013.

  • EBITDA1 for the first quarter 2013 reached the highest level in four quarters lying at $10.1 million.  This compares with an EBITDA of $16.9 million for the first quarter of 2012.
  • Net debt1 decreased to $125.8 million down from $136.5 million on December 31, 2012 and $232.1 million on March 31, 2012.  Total debt also decreased to $140.3 million down from $148.4 million on December 31, 2012 and $278.1 million on March 31, 2012.
  • Net earnings for the first quarter 2013 reached $5.5 million or $0.07 per share and adjusted net earnings1 $6.3 million or $0.08 per share.  Comparative figures for the first quarter 2012 were $4.9 million or $0.07 per share and $5.3 million or $0.07 per share.
  • Revenues for the first quarter 2013 and the first quarter 2012 were $118.4 million and $162.2 million respectively following a trend of decreasing underlying commodity pricing.
  • Similarly the backlog1 of orders expected to translate into sales over the following twelve months decreased to $166.3 million as at March 31, 2013 compared to $215.6 million one year earlier but remained approximately constant on a quarter-over-quarter basis at $165.8 million.

Jacques L'Ecuyer, President and Chief Executive Officer, said "Earnings and EBITDA recovered during the quarter despite the fact that the Company still holds a significant proportion of inventories which are fully valued and the costs incurred in the restructuring of a portion of the business which is the subject of the dispute with former shareholders and directors of MCP Group."

Mr. L'Ecuyer continued, "The quarter was generally characterized by healthy demand for most products which is expected in the first quarter of the year as customers replenish stock levels following year-end.  Backlog and revenues were negatively impacted in the quarter by the decrease in the underlying commodity pricing but were otherwise very much in line with sales volumes for the previous fiscal year."

Mr. L'Ecuyer concluded, "We continue to focus on improving efficiency throughout the group and at reducing costs as previously announced and we remain cautiously optimistic about future prospects."

Webcast Information
5N Plus will host a conference call on Tuesday, May 14, 2013 at 8:00 am ET with financial analysts to discuss results of the first quarter ended March 31, 2013.  All interested parties are invited to participate in the live broadcast on the Company's Web site at www.5nplus.com.  A replay of the webcast and a recording of the Q&A will be available until May 21, 2013.

To participate in the conference call:

  • Montreal area: 514-807-9895
  • Toronto area: 647-427-7450
  • Toll-Free: 1- 888-231-8191

Enter access code 68998936.

Non-IFRS Measures
Adjusted net earnings means the net earnings (loss) before the effect of charge and reversal of impairment related to inventory, PPE and intangible assets, litigation and restructuring costs and acquisitions costs net of the related income tax. We use adjusted net earnings (loss) because we believe it is a meaningful measure of the operating performance of our ongoing business without the effects of unusual inventory write-downs and property plant and equipment and intangible asset impairment charges, litigation and restructuring costs and acquisition costs. The definition of this non-IFRS measure used by the Company may differ from that used by other companies.

Backlog represents the expected value of orders we have received but have not yet executed and that are expected to translate into sales within the next 12 months. Bookings represents the value of orders received during the period considered and is calculated by adding revenues to the increase or decrease in backlog for the period considered.  We use backlog to provide an indication of expected future revenues, and bookings to determine our ability to sustain and increase our revenues.

EBITDA means net earnings (loss) before financial expenses (income), income taxes, depreciation and amortization, impairment or reversal of impairment of property plant and equipment, litigation and restructuring costs and acquisition-related costs. We use EBITDA because we believe it is a meaningful measure of the operating performance of our ongoing business without the effects of certain expenses. The definition of this non-IFRS measure used by the Company may differ from that used by other companies.

Adjusted EBITDA means EBITDA as defined above before impairment of inventories. We use adjusted EBITDA because we believe it is a meaningful measure of the operating performance of our ongoing business without the effects of inventory write-downs. The definition of this non-IFRS measure used by the Company may differ from that used by other companies.

Funds from operations means the amount of cash generated from operating activities before changes in non-cash working capital balances related to operations. This amount appears directly in the consolidated statements of cash flows of the Company. We consider funds from operations to be a key measure as it demonstrates the Company's ability to generate cash necessary for future growth and debt repayment.

Net debt or net cash is a measure we use to monitor how much debt we have after taking into account cash and cash equivalents and temporary investments. We use it as an indicator of our overall financial position, and calculate it by taking our total debt, including the current portion, and subtracting cash and cash equivalents and temporary investments.

About 5N Plus Inc.
5N Plus is the leading producer of specialty metal and chemical products.  Fully integrated with closed-loop recycling facilities, the Company is headquartered in Montreal, Québec, Canada and operates manufacturing facilities and sales offices in several locations in Europe, the Americas and Asia.  5N Plus deploys a range of proprietary and proven technologies to produce products which are used in a number of advanced pharmaceutical, electronic and industrial applications.  Typical products include purified metals such as bismuth, gallium, germanium, indium, selenium and tellurium, inorganic chemicals based on such metals and compound semiconductor wafers.  Many of these are critical precursors and key enablers in markets such as solar, light-emitting diodes and eco-friendly materials.

Forward-Looking Statements and Disclaimer
This press release may contain forward-looking information within the meaning of applicable securities laws.  All information and statements other than statements of historical facts contained in this press release are forward-looking information.  Such statements and information may be identified by words such as "about", "approximately", "may", "believes", "expects", "will", "intends", "should", "plans", "predicts", "potential", "projects", "anticipates", "estimates", "continues" or similar words or the negative thereof or other comparable terminology.  Forward-looking statements are based on the best estimates available to 5N Plus at this time and involve known and unknown risks, uncertainties and other factors that may cause 5N Plus' actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.  A description of the risks affecting 5N Plus' business and activities appears under the heading "Risks and Uncertainties" in Management's Discussion and Analysis for the fiscal year ended December 31, 2012 and Note 13 of the unaudited interim condensed consolidated financial statements for the three-month periods ended March 31, 2013 and 2012 available on SEDAR at www.sedar.com.  No assurance can be given that any events anticipated by the forward-looking information in this press release will transpire or occur, or if any of them do so, what benefits that 5N Plus will derive therefrom.  In particular, no assurance can be given as to the future financial performance of 5N Plus.  The forward-looking information contained in this press release is made as of the date hereof and 5N Plus undertakes no obligation to publicly update such forward-looking information to reflect new information, subsequent or otherwise, unless required by applicable securities laws.  The reader is warned against placing undue reliance on these forward-looking statements.

5N PLUS INC.
UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF EARNINGS
For the three-month periods ended March 31, 2013 and 2012
(Figures in thousands of United States dollars, except per share information)

    March 31,
2013
  March 31,
2012
    $   $
         
Revenues   118,389   162,235
Cost of sales   99,388   132,247
Selling, general and administrative expenses   9,627   12,012
Other expenses, net   2,978   6,521
Share of loss from joint ventures   136   164
    112,129   150,944
Operating income   6,260   11,291
Financial expenses (income)        
Interest on long-term debt   1,842   2,386
Other interest expense   1,470   611
Foreign exchange and derivative (gain) loss   (3,017)   1,682
    295   4,679
Earnings before income tax   5,965   6,612
Income tax   427   1,721
Net earnings for the period   5,538   4,891
         
Attributable to:        
Equity holders of 5N Plus Inc.   5,371   4,972
Non-controlling interest   167   (81)
    5,538   4,891
Earnings per share attributable to equity holders of 5N Plus Inc.   0.06   0.07
Basic earnings per share   0.07   0.07
Diluted earnings per share   0.07   0.07



5N PLUS INC.
UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(Figures in thousands of United States dollars)

    As at March 31, 2013   As at December 31, 2012
    $   $
         
ASSETS        
Current        
Cash and cash equivalents   12,221   9,535
Temporary investments (restricted)   2,286   2,357
Accounts receivable   83,857   87,807
Inventories   170,547   170,293
Income tax receivable   14,814   18,931
Derivative financial assets   1,262   -
Other current assets   2,407   2,514
Total current assets   287,394   291,437
Property, plant and equipment   55,377   55,548
Intangible assets   14,925   16,010
Deferred tax asset   11,652   12,650
Investments accounted for using the equity method   367   503
Other assets   6,158   9,248
Total non-current assets   88,479   93,959
Total assets   375,873   385,396
         
LIABILITIES AND EQUITY        
Current        
Bank indebtedness and short-term debt   11,152   8,014
Trade and accrued liabilities   57,775   62,214
Income tax payable   1,244   2,217
Derivative financial liabilities   1,639   2,817
Long-term debt due within one year   28,713   29,527
Total current liabilities   100,523   104,789
Long-term debt   100,453   110,898
Deferred tax liability   2,712   2,632
Retirement benefit obligation   16,493   16,667
Derivative financial liabilities   2,870   3,537
Other liabilities   1,698   1,560
Total non-current liabilities   124,226   135,294
Total liabilities   224,749   240,083
Shareholders' equity   150,599   144,955
Non-controlling interest   525   358
Total equity   151,124   145,313
Total liabilities and equity   375,873   385,396



5N PLUS INC.

Cash Flows      
  Q1 2013 Q1 2012 % Change
  $ $  
Funds from operations1 4,608 11,236 -59%
Net changes in non-cash working capital items 6,244 26,971 -77%
Operating activities 10,852 38,207 -72%
Investing activities (2,586) 13,287 -119%
Financing activities (6,040) (68,476) 91%
Effect of foreign exchange rate changes on cash and cash equivalents related to operations 460 (423) 209%
Net increase (decrease) in cash and cash equivalents 2,686 (17,405) 115%
 
 
Revenues by Segment      
  Q1 2013 Q1 2012 % Change
  $ $  
  Electronic Materials Segment 48,356 73,365 -34%
  Eco-Friendly Materials Segment 70,033 88,870 -21%
Total Revenues 118,389 162,235 -27%
 
 
EBITDA      
  Q1 2013 Q1 2012 % Change
  $ $  
  Electronic Materials 7,078 10,766 -34%
  Eco-Friendly Materials 5,067 10,066 -50%
  Corporate (2,030) (3,965) 49%
EBITDA 1 10,115 16,867 -40%
  Impairment of inventory - - -
Adjusted EBITDA 1 10,115 16,867 -40%
 
 
Bookings and Backlog
  BACKLOG 1 BOOKINGS
  Q1 2013 Q4 2012 Q1 2012 Q1 2013 Q4 2012 Q1 2012
  $ $ $ $ $ $
  Electronic Materials Segment 92,797 100,718 133,747 40,435 59,342 57,073
  Eco-Friendly Materials Segment 73,493 65,071 81,841 78,455 72,744 97,573
  166,290 165,789 215,588 118,890 132,086 154,646



__________________________________
1 See Non-IFRS Measures 

 

 

 

SOURCE: 5N PLUS INC.

For further information:

Jean Mayer
Vice President, Legal Affairs and Corporate Secretary
5N Plus Inc.
(514) 856-0644 x6178
invest@5nplus.com

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