Novik increased the net earnings by 52% - Third quarter 2012 highlights
- Revenues for the quarter at $7.4 M versus $7.0 M last year
- 6 point increase in gross margin to 51% of revenues
- Adjusted EBITDA margin of 26% versus 17% on revenues in Q3 - 2011
- Net earnings of $839,000 compared with $552,000, a 52% increase
- Year-to-date net earnings of $1,511,000 versus $924,000 last year, a 64% increase
QUEBEC CITY, Nov. 7, 2012 /CNW Telbec/ - Novik inc. (TSXV: NVK) releases today its results for the third quarter of fiscal year 2012. All amounts are expressed in Canadian dollars unless otherwise indicated.
|for the periods ended September 30, 2012 and 2011||Third||Third||Year to||Year to|
|(in thousands dollars, except for amounts per share)||quarter||quarter||date||date|
Earnings before depreciation, stock-based compensation,
financial expenses and income taxes
|Basic and diluted net earnings per share||0.017||0.011||0.031||0.019|
|September 30,||December 31,|
|(in thousands dollars, except for amounts per share)||2012||2011|
|Total long-term financial liabilities||8,138||9,092|
|Shareholder's equity per share||0.28||0.25|
|Number of shares outstanding||48,825,858||48,470,858|
During the course of the third quarter of fiscal year 2012, Novik recorded revenues of $7.4 M, compared with $7.0 M during the same quarter of the previous fiscal year. Mr. Gaudreau, Novik's CEO, is particularly proud to announce that "while sales increased by 6% this quarter compared to the third quarter 2011, Novik managed to realize a net earnings of 52% higher than during the same quarter of the previous fiscal year."
Novik's cumulative revenues, for the first nine months of 2012, amount to $20.1 M compared with $20.5 M for the same period of the previous year. Mr. Gaudreau points out that the shortfall in sales for the first nine months of 2012 is mostly tied to an apparent softness in export sales outside North America. As for the North American sales, they increased by 13% over the period compared to the same period in 2011.
EARNINGS BEFORE INTEREST, STOCK-BASED COMPENSATION COSTS, TAXES, DEPRECIATION AND AMORTIZATION ("adjusted EBITDA")
Earnings before interest, stock-based compensation costs, taxes, depreciation, and amortization (adjusted EBITDA) is a measure that has no standardized meaning prescribed by International Financial Reporting Standards (IFRS). It is therefore considered to be a non-IFRS measure. Accordingly, the measure may not be comparable to similar measures presented by other issuers. This measure is presented and described in this management report in order to provide shareholders and potential investors with additional information regarding the company's liquidity and ability to generate funds to finance its activities.
For the third quarter of fiscal year 2012, adjusted EBITDA on revenues increased to 26% compared to 17% for the same period of the previous fiscal year. Continued operating improvement, new product introductions and efficient strategic procurement of raw materials explain this progression in profitability.
For the nine-month period ended on September 30, 2012, adjusted EBITDA increased by 26% to $4,153,000 compared with $3,305,000 for the same period of the previous fiscal year. Adjusted EBITDA on revenues for the first nine months of 2012 was 21% versus 16% over the corresponding period of last year. This ratio demonstrates the significant increase in Novik's operating performance in 2012. The objective of Novik's management to improve the profitability threshold was clearly identified at the beginning of the year and will remain a constant priority.
The company's net earnings for the third quarter of fiscal year 2012 amounts to $839,000 compared with $552,000 for the same quarter of the previous fiscal year. This increase in profitability is directly in line with the same factors previously explained in the adjusted EBITDA section: better management of production costs, procurement strategies and new product introductions to the market.
For the nine-month period ended on September 30, 2012, net earnings is $1,511,000 compared with $924,000 for the same period of the previous fiscal year. This financial result represents a net improvement of 64% compared with the previous year and is directly in line with management's objective to maximize profitability.
Just like the first two quarters of fiscal year 2012, Novik's current financial performance is positive. Despite lingering effects on the industry from the latest economic crisis and pressures on the cost of its raw materials, Novik has managed to recover quickly to achieve better financial results. The company has successfully taken advantage of the opportunities created by the industry's weakness by increasing its presence with various distribution networks and intends to pursue this strategy to ensure continued growth in its sales.
At the operational level, we remain on the lookout for any opportunities to improve our production costs. Improving our productivity and buying raw materials at competitive prices are constantly on the agenda with our various teams in order to be able to generate potential savings.
Novik (NVK) is a leader in the design, manufacturer and distribution of innovative polymer exterior siding, roofing coverings and accessories that replace traditional materials such as stone, brick or wood shingles. These products target the world-wide residential and commercial construction industry.
Forward-looking statements contained in this press release involve known and unknown risks, uncertainties or other factors that may cause actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
SOURCE: Novik Inc.For further information:
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Interim Chief Financial Officer
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