Sigma Industries reports fiscal 2013 first quarter results
SAINT-ÉPHREM-DE-BEAUCE, QC, Oct. 26, 2012 /CNW Telbec/ - Sigma Industries Inc. (TSXV: SSG), a manufacturing company specializing in the production of composite and metal components, today announced results for the first quarter of its 2013 fiscal year ended July 28, 2012.
Revenues totalled $18.1 million in the first quarter of fiscal 2013 compared with $15.2 million in the first quarter of fiscal 2012. This $2.9 million, or 19.2%, increase is mainly attributable to an improvement of $2.5 million in revenues from the heavy-duty truck industry as a result of the global economic recovery. In addition, revenues from wind energy products rose by $480,631, to more than $1.0 million, due to a short-term volume increase from the Company's largest customer in that market.
Driven by higher business activity, Sigma Industries recorded adjusted earnings before interest, taxes, depreciation and amortization ("EBITDA") of $863,921, in the first three months of fiscal 2013, up from $733,230 a year earlier. As a percentage of revenues, adjusted EBITDA was stable at 4.8%, as a better absorption of fixed costs and the effect of favourable currency variations on manufacturing costs were offset by an increase in administrative expenses.
The Company concluded the first quarter of fiscal 2013 with a net loss of $25,090, or $0.00 per basic and diluted share, versus a net loss of $313,865, or a loss of $0.03 per basic and diluted share, in the same period a year earlier.
CASH FLOW AND FINANCIAL POSITION
Reflecting improved operating results, cash flow from operations before changes in items of working capital reached $626,765 in the first quarter of fiscal 2013, up 41.0% from $444,637 in the first quarter of fiscal 2012. This cash generation enabled Sigma Industries to further improve its financial position. As a result, the Company's net debt stood at $18.1 million as at July 28, 2012, versus $19.0 million three months earlier.
During the quarter, the Company completed a private placement of $555,000 in convertible debentures whose net proceeds have been earmarked for the working capital of its U.S. subsidiary. In addition, subsequent to the end of the first quarter, Sigma successfully renegotiated its bank line of credit and secured new financing. More importantly, these agreements provide more favourable terms and conditions, including a lower interest rate.
"Notwithstanding the uncertain economy, Sigma Industries stands on stronger ground by virtue of successful restructuring efforts and ongoing initiatives to optimize operations. We are well positioned to leverage the progress accomplished and to this point, we are proactively seeking opportunities to further diversify our reach by broadening our customer base and product offering. We firmly believe that Sigma's solid reputation with regards to quality and its innovation capabilities should lead to increased market penetration, as we focus on improving existing products and developing new value-added solutions for our customers," said Denis Bertrand, President and Chief Executive Officer of Sigma Industries.
SELECTED FINANCIAL INFORMATION
|Consolidated results of operations||Three months ended|
(unaudited, in thousands of Canadian dollars except
|July 28, 2012||July 30, 2011|
|Net income (loss)||(25)||(314)|
|Per share (basic and diluted)||(0.00)||(0.03)|
|Cash flows provided by operating activities*||627||445|
|* Before changes in items of working capital|
Reconciliation of adjusted EBITDA and net income
(unaudited, in thousands of Canadian dollars)
|Three months ended|
|July 28, 2012||July 30, 2011|
|Net income (loss)||(25)||(314)|
|Income tax expense (recovery)||(27)||0|
|Depreciation and amortization||361||458|
|Consolidated balance sheet data||As at|
|(in thousands of Canadian dollars)||July 28, 2012||April 28, 2012|
NON-IFRS FINANCIAL MEASURES
The information in this press release includes certain measures that are not financial measures prescribed under IFRS. Sigma Industries uses adjusted earnings before interest, taxes, depreciation and amortization ("adjusted EBITDA") in assessing its financial performance. As there is no generally accepted method of calculating this financial measure, it may not be comparable to similar measures reported by other companies. Adjusted EBITDA is earnings before interest, income taxes, depreciation, amortization and other non-operating expenses and revenues. This measure does not represent cash flow available for repayment of debt, payment of dividends, reinvestment or other discretionary uses, and should not be considered in isolation or as a substitute for other measures of performance calculated according to IFRS.
ABOUT SIGMA INDUSTRIES
Sigma Industries Inc. (TSX-V: SSG), a manufacturing company specializing in the production of composite and metal components, has four operating subsidiaries and employs close to 475 people. The Company is active in the heavy-duty truck, coach, transit, machinery, agriculture, and wind energy markets. Sigma sells its products to original equipment manufacturers and distributors in the United States, Canada and Europe.
This press release contains certain forward-looking statements about the Company. Such forward-looking statements are dependent on a number of factors and are subject to risks and uncertainties. Actual results may differ from those expected. The information contained in this press release is dated October 26, 2012, the date on which management approved the press release. Management does not assume any obligation to update or revise any forward-looking statements, whether as a result of new information or future events, except as required by law.
Note to readers: Complete unaudited interim consolidated financial statements and Management's Discussion & Analysis of Financial Position and Operating Results have been posted on SEDAR and are available at www.sedar.com.
Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: SIGMA INDUSTRIES INC.For further information:
Sigma Industries Inc.
President and Chief Executive Officer
Martin Goulet, CFA