Encouraging outlook at GLV - Fiscal 2013 Third Quarter Results
MONTREAL, Feb. 14, 2013 /CNW Telbec/ -
(All amounts are in Canadian dollars.)
For the third quarter of fiscal 2013, the Corporation reported a net loss of $1.4 million or $0.03 per share, basic and diluted, compared with a net loss of $1.6 million or $0.04 per share, basic and diluted, for the corresponding period of the previous fiscal year. Excluding the net loss from discontinued operations discussed below, the net earnings from continuing operations attributable to shareholders of GLV Inc. is $3.0 million or $0.07 per share, basic and diluted, compared with a net loss of $1.7 million or $0.04 per share, basic and diluted, for the corresponding quarter of the previous fiscal year. This improved overall profitability stems primarily from the favourable change in fair value of derivative financial instruments, lower net financial expenses, and foreign exchange gains, partly offset by the decline in the volume of business during the quarter compared with the same quarter of the previous fiscal year.
Ovivo's plan to refocus announced last August continues to move forward as planned. In line with Ovivo's new business strategy, during the quarter, the Corporation decided to discontinue all operations in the waste to energy segment, including the sale of its joint venture operating in this market, which was completed on December 31, 2012. With respect to this segment, losses of $4.5 million and $6.5 million, respectively, were reported under discontinued operations for the three-month and nine-month periods ended December 31, 2012.
Although operating results are lower for both the Pulp and Paper Group and Ovivo compared with the previous fiscal year, the markets targeted by Ovivo's strategy to refocus its business continue to show promising signs. The municipal market in Europe, Middle East and Africa generated better results than the same quarter of the previous fiscal year by continuing to perform well in contracts execution and follow-up. Results for other targeted markets were slightly below levels for the same period of the previous fiscal year due to the lower backlog during the second half of fiscal 2012.
The workforce reduction plan is on target and should be nearly completed by the middle of the next fiscal year. Also, as announced in the previous MD&A, Ovivo sold one of its entities located in Finland during the third quarter, recognizing an additionnal loss of $0.6 million.
The Pulp and Paper Group's operating results were lower than for the same quarter of the previous fiscal year, mainly due to the lower backlog during the first half of the current fiscal year caused by the economic slowdown in Europe and Asia.
For the nine-month period ended December 31, 2012, the Corporation reported a net loss of $13.2 million or $0.30 per share, basic and diluted, compared with a net loss of $1.3 million or $0.03 per share, basic and diluted, for the corresponding period of the previous fiscal year. The Corporation reported a net loss from continuing operations attributable to shareholders of GLV Inc. of $6.7 million or $0.15 per share, basic and diluted, compared with $2.0 million or $0.05 per share, basic and diluted, for the corresponding period of the previous fiscal year. Excluding the impact of discontinued operations, the changes stemmed primarily from the higher income tax expense and the lower operating income mainly following restructuring costs of $2.9 million, and an impairment charge of $0.7 million, partly offset by the decrease in net financial expenses.
Backlog and outlook
As at December 31, 2012, the backlog, excluding that of discontinued operations, amounted to $334.2 million, which is comparable to the level at the end of the previous quarter. The increase in the Pulp and Paper Group's backlog, mainly in the pulp segment in North America and Europe, was offset by the lower backlog at Ovivo. This decrease resulted mainly from the cyclical slowdown for order-taking by Ovivo in the electronics and metals market and in the municipal segment in Europe, Middle East and Africa, partly offset by an increase in the energy segment. Meanwhile, the order backlog in Ovivo's parts and services market showed an increase for the third consecutive quarter, following implementation of the group's refocusing strategy aimed at increasing this market which generates recurring revenues.
For fiscal 2013 as a whole, assuming exchange rates remain stable at current levels and in light of the outlook in the segments serviced by each group, and in particular the refocusing of Ovivo's operations, the Corporation expects consolidated revenues to total approximately $600 million.
This press release presents the highlights for the third quarter ended December 31, 2012. 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 Inc.
GLV is a provider of water treatment technological solutions, under the Ovivo brand, and technological solutions used in pulp and paper production, under the GL&V brand. The Corporation operates in some 20 countries with 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 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 GLV's actual and future results 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 is exposed is provided under section 10, "Risks and uncertainties," of the MD&A for the fiscal year ended March 31, 2012 available on SEDAR (www.sedar.com) and the Corporation's website (www.glv.com).
Date and time: Thursday, February 14, 2013 at 2:00 p.m. (EST)
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. (EST), February 14, 2013 until midnight Thursday, February 21, 2013 at 1-855-859-2056 (1-416-849-0833-International), access code: 89360391#.
SOURCE: GLV INC.For further information:
France De Blois
Chief Financial Officer
Tel.: + 514 284-2224
Corporate Director, Communications
Tel.: + 514 284-2224