Press release from CNW Group
GLV Group continues implementing its business plan
Thursday, August 08, 2013
GLV Group continues implementing its business plan11:13 EDT Thursday, August 08, 2013
MONTREAL, Aug. 8, 2013 /CNW Telbec/ - (All amounts are in Canadian dollars.)
GLV Inc. (GLV Group) announced today its financial results for the first quarter of fiscal 2014. The Corporation achieved profitability for the second consecutive quarter with net earnings of $1.3 million or $0.03 per share, basic and diluted, compared with a net loss of $5.5 million or $0.13 per share, basic and diluted, for the same quarter of the previous fiscal year. Among other factors, profitability stemmed from the reduction in financial expenses, due to gains related to changes in exchange rates and derivative financial instruments. "These encouraging results, combined with our backlog at a two-year high, point to a favourable outlook for GLV Group," stated Richard Verreault, President and Chief Executive Officer of GLV Inc.
|(in millions of dollars, excluding earnings (loss) per share)||Quarters ended June 30|
|Normalized adjusted EBITDA from continuing operations||4.9||6.6||(1.7)|
|Earnings (loss) before income taxes (EBIT)||2.8||(3.1)||5.9|
|Net earnings (loss)||1.3||(5.5)||6.8|
|June 30, 2013||March 31, 2013||Change|
GLV Group's consolidated revenues for the quarter ended June 30, 2013 were down slightly from the same period of the previous fiscal year, owing primarily to GL&V Pulp and Paper, partly offset by higher revenues at the Van der Molen division. Although its revenues were comparable to results in the same quarter of fiscal 2013, Ovivo reported organic growth of over 15% in its four target markets (Municipal, Electronics and Metals, Energy, and Parts and Services). Note that at both Ovivo and GL&V Pulp and Paper, the Parts and Services market increased its revenues compared with the last quarter of the previous fiscal year.
Operating results at the two core operating groups, namely Ovivo and GL&V Pulp and Paper, were down compared with the first quarter of the previous fiscal year. At Ovivo, the performance of the Electronics and Metals segment improved over the previous year, following a significant increase in the backlog as at March 31, 2013 compared with its level a year earlier. Results in the Municipal North America market were comparable to the previous fiscal year owing to the backlog level and efficient contract performance. However, these results were impacted by performance in the Energy market and Municipal segments in Europe, Middle East and Africa (EMEA) resulting from work performed on certain projects with lower-than-expected margins and investments in resources to develop the Parts and Services market.
Operating results at GL&V Pulp & Paper were down from the same quarter of the previous year, owing to a lower backlog at the beginning of the current fiscal year compared with last year, a reflection of the persistence of the economic slowdown in Europe, which is mainly affecting the new equipment market.
GLV Group's improvement in net earnings for the first quarter of fiscal 2014 compared with the corresponding quarter of the previous fiscal year arose primarily from favourable changes related to exchange rates and derivative instruments and the decrease in income tax expense, partly offset by the lower consolidated operating results.
Backlog and outlook
GLV Group's backlog increased to $395.3 million as at June 30, 2013 from $380.0 million as at March 31, 2013. Ovivo accounted for most of this increase with order-taking for two large contracts totalling $34.0 million in the Electronics and Metals market and in the Energy market during the first quarter. In addition, as announced in the press release issued last week, Ovivo is the only water treatment company to be invited to join a consortium of global microelectronics leaders to participate in its research program—an acknowledgement of GLV Group's technological skills in that area.Backlogs in all of Ovivo's target markets were up as at June 30, 2013 except for the Municipal EMEA market, which declined slightly from the previous quarter. This segment is currently experiencing a slowdown resulting, in particular, from the approaching end of the five-year AMP51 relating to infrastructure investments in the U.K.
The higher backlog also resulted from an increase noted in the Parts and Services market as at June 30, 2013, which is at a record level, reflecting the investments in resources made to develop this important market in Ovivo's business strategy. The implementation of initiatives launched during fiscal 2013 should continue to have a gradual impact on this market's performance in the coming quarters.
At GL&V Pulp and Paper, the backlog is relatively unchanged from the previous quarter, owing mainly to order-taking in the Parts and Services market. Since the beginning of the current fiscal year, GL&V Pulp and Paper has been deploying a five-year action plan based on three strategic pillars underlying its business strategy:
- Expanding the international supply network and low-cost manufacturing capabilities;
- Continuing implementation of an aftermarket services structure in Europe;
- Developing products via a structured approach and an innovation program to support investments.
Lastly, the Van der Molen division's backlog as at June 30, 2013 remained at satisfactory levels per management's expectations.
As announced at the end of the previous fiscal year, fiscal 2014 will be a year of investments for GLV Group, which is expected to translate into a gradual and sustained improvement in profitability. For fiscal 2014 as a whole, assuming exchange rates remain stable at current levels and in light of the outlook in the segments serviced by all groups, the Corporation expects consolidated revenues to range from $600 million to $625 million.
This press release presents the highlights for the first quarter ended June 30, 2013. For a detailed analysis, see the interim management's discussion and analysis and unaudited interim condensed consolidated financial statements, filed today on the websites of SEDAR (www.sedar.com) and the Corporation (www.glv.com). Note that non-IFRS financial measures were used to analyze performance, as management considers that they provide useful information for investors seeking to assess the Corporation's performance and financial position.
About GLV Group (GLV Inc.)
GLV Group is made up of international companies operating primarily in the water treatment (Ovivo) and pulp and paper (GL&V Pulp and Paper) industries that offer comprehensive technological solutions as well as services and equipment tailored to specific client needs. GLV Group's business units operate in more than 25 countries and have approximately 2,100 employees. GLV Inc. is a public company whose shares trade on the Toronto Stock Exchange under the ticker symbols GLV.A and GLV.B.
Notice regarding forward-looking statements
Certain statements in this press release and other public communications regarding management's objectives, projections, estimates, expectations or forecasts may constitute forward-looking statements within the meaning of applicable securities legislation. Forward-looking statements are recognized by the use of terms such as "forecast," "project," "could," "plan," "aim," "estimate" and other similar terms, possibly used in the future or conditional, particularly with regard to certain assumptions. The management of GLV Inc. would like to point out that forward-looking statements involve a number of uncertainties and known and unknown risks such that the actual and future results of GLV Inc. could differ considerably from those stated. There can be no assurance as to the materialization of the results, performance or achievements as expressed in or underlying the forward-looking statements. The forward-looking statements included in this press release were made as at the date hereof, and unless required to do so pursuant to applicable securities legislation, management of GLV Inc. assumes no obligation to update them.
Additional information about the risk factors to which GLV Inc. is exposed is provided under section 10, "Risks and uncertainties," of the management's discussion and analysis for the fiscal year ended March 31, 2013 available on SEDAR (www.sedar.com) and the Corporation's website (www.glv.com).
1 Asset Management Program 5
Date and time: Thursday, August 8, 2013 at 2:00 p.m. (EDT)
1-888-231-8191 (North America)
An audio webcast of the conference call will be streamed live on (www.glv.com). An audio recording will be accessible on demand from 5:00 p.m. (EDT), August 8, 2013 until midnight Thursday, August 15, 2013 at 1-855-859-2056 (1-416-849-0833 - International, access code: 18765545#).
SOURCE: GLV Inc.
For further information:
France De Blois
Chief Financial Officer
Tel.: +1 514-284-2224
Global Director, communications
Tel.: +1 514-284-2224