The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from CNW Group

Results for the first quarter ended April 30, 2013

Wednesday, June 12, 2013

Results for the first quarter ended April 30, 2013

07:00 EDT Wednesday, June 12, 2013

TERREBONNE, QC, June 12, 2013 /CNW Telbec/ - ADF GROUP INC. ("ADF" or the "Corporation") (DRX: TSX) closed the first quarter of the 2014 fiscal year with revenues of $12.3 million compared with $12.5 million during the same period the previous fiscal year.

As a percentage of revenues, the gross margin decreased from 14.7% during the three-month period ended April 30, 2012 to 11.3% during the three-month period ended April 30, 2013. This decrease is mainly explained by the fact that the newly signed contracts, which are currently in their early execution stage, carry lower margins than those generated last year by the World Trade Center projects. It should be noted that the gross profit margin for the quarter ended April 30, 2013, which was similar to those of the past quarters, also reflects the persistent pressure exerted on prices in ADF's markets.

The Corporation closed the first quarter ended April 30, 2013 with a negative net income of $0.3 million ($0.01 basic and diluted per share), as opposed to a slight net income of $0.1 million ($0.00 basic and diluted per share) in the same period the previous year.

During the first quarter, the Corporation's operating activities generated liquidities of $62,000. As at April 30, 2013, the Corporation had working capital of $31.4 million, of which $23.0 million in short-term available liquidities (cash, cash equivalents and short-term investments). Available liquidities thus exceeded the Corporation's total debt by $20.0 million, placing the Corporation in a solid position to support its ongoing operations, carry out its development projects and remunerate its shareholders in accordance with the dividend payment policy implemented at the beginning of fiscal 2012.

Financial Highlights

     
Three-Month Periods Ended April 30, 2013 2012
(In thousands of dollars, and dollars per share) $ $
Revenues 12,276 12,464
EBITDA 475 937
Net income (269) 91
Per share (basic and diluted) (0.01) 0.00
Cash flows from operating activities 62 131
Average number of outstanding shares (basic, in thousands) 32,451 32,464
Average number of outstanding shares (diluted, in thousands) 32,451 32,928

New Contract

On March 20, 2013, ADF announced the award of a $46.6 million contract for the fabrication and installation of the steel structure for Quebec City's future multipurpose amphitheatre. This contract will contribute to the Corporation's results as of the second half of the current fiscal year, in view of its final delivery scheduled for the second quarter of the 2015 fiscal year.

ADF Group's order backlog reached $72.0 million as of April 30, 2013 compared with $34.0 million on January 31, 2013.

Outlook

"During the third quarter ended April 30, 2013, in addition to increasing our backlog, we also achieved significant progress in regard to our plan to set up a fabrication plant in Great Falls, Montana. The site layout work and construction of the infrastructures are underway and we have already hired key personnel. We still aim to bring our new facility on-stream by early 2014" added Mr. Jean Paschini, Chairman of the Board and Chief Executive Officer.

"As we are witnessing early signs of a recovery in several of our key markets in North America, we are stepping up our efforts to build up the order backlogs of both our Terrebonne plant and future Great Falls plants, in order for further strengthen ADF's position for the next economic upturn", concluded Mr. Paschini.

Dividend

On April 10, 2013, the Corporation's Board of Directors approved the payment of a semi-annual dividend of $0.01 per share, which was paid on May 17, 2013 to shareholders of record as at April 30, 2013.

Annual Meeting of Shareholders

ADF Group's Annual Meeting of Shareholders will take place this morning, June 12, 2013 at 11:00 am at the Sheraton Hotel in Laval.

About ADF Group Inc.

ADF Group Inc. is a North American leader in the design and engineering of connections, fabrication 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.

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.

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.

All amounts are in Canadian dollars, unless otherwise indicated.

CONFERENCE CALL WITH INVESTORS

To discuss ADF Group's results for the first quarter ended April 30, 2013

Wednesday, June 12, 2013 at 10:00 a.m. (Montreal time)

To participate in the conference call, please dial 1-888-231-8191 a few minutes before the start of the call.
For those unable to participate, a taped rebroadcast will be available from
Wednesday, June 12, 2013 at 1:00 p.m. until midnight Wednesday, June 19, 2013,
by dialing 1-855-859-2056; access code 76451277.

The conference call (audio) will also be available at www.adfgroup.com
Members of the media are invited to listen in.

SOURCE: ADF Group Inc.

For further information:

Jean Paschini, Chairman of the Board of Directors and Chief Executive Officer
Jean-François Boursier, CPA, CA, Chief Financial Officer
Telephone:  (450) 965-1911 / 1 (800) 263-7560
Web Site:  www.adfgroup.com

Products
  • Globe Unlimited

    Digital all access pass across devices. subscribe

  • The Globe and Mail Newspaper

    Newspaper delivered to your doorstep. subscribe

  • Globe2Go

    The digital replica of our newspaper. subscribe

  • Globe eBooks

    A collection of articles by the Globe. subscribe

See all Globe Products

Advertise with us

GlobeLink.ca

Your number one partner for reaching Canada's Influential Achievers. learn more

The Globe at your Workplace
Our Company
Customer Service
Globe Recognition
Mobile Apps
NEWS APP
INVESTING APP
Other Sections