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Press release from CNW Group

GLV Group releases its results for the fourth quarter and fiscal 2014

Thursday, June 05, 2014

GLV Group releases its results for the fourth quarter and fiscal 2014

16:01 EDT Thursday, June 05, 2014

Highlights - Fiscal 2014 Q4 compared with Fiscal 2013 Q4

  • Revenues of $182.1 million, up 19%
  • Adjusted EBITDA(1) of $9.3 million, up 19%
  • Net earnings attributable to shareholders of GLV Inc. of $1.7 million ($0.04 per share, basic and diluted), up $1.3 million
  • Backlog of $382.7 million, up 1%
  • Net Debt at $25.7 million, down 55%

(All amounts are in Canadian dollars)

MONTREAL, June 5, 2014 /CNW Telbec/ - For the fourth quarter of fiscal 2014, GLV Inc. (GLV Group or the Corporation) reported consolidated revenues of $182.1 million, up 19% from the fourth quarter of the previous fiscal year (organic growth at constant exchange rate of 12% (1)) and adjusted EBITDA (1) of $9.3 million, up 19%.  The Corporation recorded net earnings attributable to shareholders of GLV Inc. of $1.7 million or $0.04 per share, basic and diluted, compared with net earnings from continuing operations of $0.9 million or $0.02 per share, basic and diluted, for the same quarter of the previous fiscal year. The improvement in net earnings was driven primarily by GL&V Pulp and Paper's operating results for the quarter, partly offset by lower profitability at Ovivo, owing mainly to the unfavourable adjustment to forecasted costs for a large contract in the Energy segment. This project, which was accepted before implementation of Ovivo's refocusing strategy announced in summer 2012, would no longer have met today's selection criteria.

"The GLV Inc. management team is pleased with the Corporation's solid fourth-quarter performance on a consolidated basis, its best quarter in fiscal 2014 in terms of revenues, adjusted EBITDA (1) and earnings per share. With the roll-out of our strategic plans in our two core operating groups and rigorous cash management, we've got the right strategy to reach our objectives and maintain balanced growth across our operations," stated GLV Inc. President and CEO Richard Verreault.

Ovivo's revenues for the fourth quarter were up 16% from the same period of the previous fiscal year, bolstered essentially by the Electronics and Metals segment which doubled its operating volume mainly due to the three large contracts announced in April 2013. During the same period, Ovivo's Parts and Services market was up 16% from the fourth quarter of fiscal 2013. GL&V Pulp and Paper reported higher revenues, in both the Parts and Services and new equipment markets, up 32% from the corresponding quarter of the previous fiscal year.

Fiscal 2014

The Corporation generated consolidated revenues of $635.1 million for the year ended March 31, 2014, up 9% from the previous fiscal year (organic growth at constant exchange rate of 6% (1)) and adjusted EBITDA (1) of $25.2 million, up 4%. The Corporation reported a net loss attributable to shareholders of GLV Inc. of $22.3 million or $0.51 per share, basic and diluted, compared with a net loss from continuing operations of $5.8 million or $0.13 per share, basic and diluted, for the previous fiscal year. The net loss for fiscal 2014 resulted primarily from an asset impairment charge recorded in the third quarter as well the higher income tax expense. Excluding this one-time asset impairment charge and the restructuring costs, the Corporation recorded adjusted net earnings (1) of $7.1 million, up $6.9 million from the previous fiscal year.

Backlog and outlook

GLV Group's backlog as at March 31, 2014 amounted to $382.7 million, up slightly from $380.0 million as at March 31, 2013 but down $46.4 million from the backlog as at December 31, 2013. The decline is mainly attributable to Ovivo's backlog. After significant contract wins early in fiscal 2014, the Electronics and Metals market backlog was down as at March 31, 2014 due to the progress made in the projects. However, management does not expect fiscal 2015 results to be significantly affected by the lower backlog in this segment, given its quality and that it remains at a significant level. The backlog in the Municipal Europe/Middle East/Africa (EMEA) market continues to be affected by lower order taking caused by the ongoing slowdown in this market in recent quarters. In the Energy market, although the backlog is down as at March 31, 2014, tendering activity remains high and should support this market's performance in fiscal 2015. Meanwhile, Municipal North America's backlog is up amid sustained order taking and a record high backlog in the Parts and Services market as at March 31, 2014, reflecting the measures implemented to develop this key strategic niche for Ovivo.

As at March 31, 2014, the GL&V Pulp and Paper backlog was down compared with December 31, 2013 and March 31, 2013 due to the level of order taking for new equipment, partially offset by growth in the Parts and Services market backlog. However, the outlook in North America remains bright for fiscal 2015.

Finally, it is with great sadness that we learned of the death of Mr. Jacques Landreville, a member of the Board of Directors and the Audit Committee of GLV since September 2009. "Through the years, we benefitted from Mr. Landreville's financial expertise, as well as his skills and experience as a manager. His energy, teamwork and entrepreneurship will be greatly missed. On behalf of GLV and its Board of Directors, I would like to offer my sincere condolences to his family," declared Richard Verreault, President and CEO of GLV Inc.

This press release discusses the highlights for the fourth quarter and year ended March 31, 2014. For a detailed analysis, see the management's discussion and analysis and audited 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 1,800 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 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 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 of the date hereof, and unless required to do so pursuant to applicable securities legislation, management of GLV assumes no obligation to update them.

Additional information about the risk factors to which GLV Inc. is exposed is provided under section 11, "Risks and uncertainties," of the management's discussion and analysis for the fiscal year ended March 31, 2014 available on SEDAR (www.sedar.com) and the Corporation's website (www.glv.com).

CONFERENCE CALL
Date and time: Thursday, June 5, 2014 at 4:30 p.m. (EDT)
Dial-in number:
1-888-231-8191 (North America)
1-647-427-7450 (International)

An audio webcast of the conference call will be streamed live on www.glv.com. An audio recording will be accessible on demand from 7:30 p.m. (EDT), June 5, 2014 until midnight Thursday, June 12, 2014 at 1-855-859-2056 (1-416-849-0833-International), access code: 43508035#.

(1)  A non-IFRS financial measure, see section 13, "Reconciliation of non-IFRS financial measures," of the management's discussion and analysis of the Corporation for the year ended March 31, 2014.

 

SOURCE GLV Inc.

For further information:

Investors:
François Dufresne
Chief Financial Officer
Tel.: +1 514-842-7236
communications@glv.com 

Media:
Julie Cusson
Global Director, Communications
Tel.: +1 514-845-7233
communications@glv.com

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