Manac posts a Net Income of $1.9 million for the Second Quarter of 2014
SAINT-GEORGES, QC, August 5, 2014 /CNW Telbec/ - Manac Inc. (TSX: MA) ("Manac"), a North American leader in the design and manufacturing of specialty trailers, reports a net income of $1.9 million, or $0.11 per share, for the quarter ended June 21, 2014, compared with a net income of $1.6 million, or $0.10 per share, for the first quarter of 2014, and of $3.5 million, or $0.29 per share, for the second quarter of 2013. This result includes $0.8 million of business acquisition costs incurred during the second quarter for the acquisition of Peerless Limited ("Peerless") which closed on June 17, 2014. Sales for the second quarter of 2014 totaled $72.1 million compared with $78.9 million for the corresponding period in 2013, representing a decrease of 8.6%.
For the second quarter of 2014, Adjusted EBITDA (please refer to note 1 below) was $5.0 million, compared to $3.0 million for the first quarter of 2014, and to $6.2 million for the second quarter of 2013. The Adjusted Net Income (please refer to note 1 below) for the second quarter of 2014 was $2.7 million, compared to $1.3 million for the first quarter of 2014 and to $3.2 million for the second quarter of 2013.
For the first six months of 2014, net income was $3.5 million, or $0.21 per share, compared with net income of $6.3 million, or $0.52 per share, for the corresponding period in 2013. Revenues for the first six months of 2014 amounted to $138.3 million compared to $148.3 million for the corresponding period in 2013, representing a decrease of 6.7%.
"One of the highlights of the second quarter is our acquisition of Peerless. The expansion of our product range and the broadening of our geographic presence in North America are positive strategic elements which form part of our growth plan for the coming years. On the operations side, the second quarter was a transition period during which new employees were hired, trained and integrated, and where our improvement programs have kept pace. These improvements are implemented in an environment where we have added 124 employees in the first six months of the year to support the production resulting from our increased backlog. This is in addition to our new Peerless employees," mentioned Charles Dutil, President and Chief Executive Officer.
"Our profitability for the second quarter of 2014 was also affected by the composition of our sales, which included a larger proportion of vans than for the same period last year", added Charles Dutil.
Without taking into account the backlog acquired as part of the Peerless acquisition, our backlog remained strong in the second quarter and totaled $98.3 million on June 21, 2014. This compares to $63.1 million on June 22, 2013 and $78.5 million on December 31, 2013.
About Manac Inc.
Manac is the largest manufacturer of trailers in Canada and a leader in the manufacturing of specialty trailers in North America. Manac offers a wide range of vans, flatbeds and specialty trailers such as dumps, low beds, grain hoppers, chip and logging trailers, all of which are sold in Canada and the United States under the recognized brands Manac®, CPS®, Darkwing®, UltraPlate® and Liddell Canada®. Manac services the heavy-duty trailer industry for the highway transportation, construction, forestry and agricultural sectors and manufactures its trailers in facilities located in Saint-Georges, Quebec as well as Oran and Kennett, Missouri. Through its wholly-owned subsidiary Peerless, located in Penticton, British Columbia, Manac also designs and manufactures highly specialized trailers and chassis for the oil and gas, mining, forestry, logging and construction industries.
Manac will hold a conference call with financial analysts, investors and media representatives on Tuesday, August 5, 2014 at 11 a.m. (EDT). A webcast will be available at www.manac-ir.com and www.newswire.ca.
To join the conference toll free, please dial 1-866-865-3087. The conference access code is 75431318.
A replay of the conference call will be available until September 4, 2014, by dialing 1-855-859-2056 and entering conference ID 75431318, followed by the pound key (#).
Forward looking statements
The statements set forth in this press release, which describes Manac's objectives, projections, estimates, expectations or forecasts, may constitute forward-looking statements within the meaning of securities legislation. Positive or negative verbs such as "believe", "could", "should", "intend", "expect", "estimate", "assume" and other related expressions are used to identify such statements. Manac would like to point out that, by their very nature, forward-looking statements involve risks and uncertainties such that its results, or the measures it adopts, could differ materially from those indicated or underlying these statements, or could have an impact on the degree of realization of a particular projection. Major factors that may lead to a material difference between Manac's actual results and the projections or expectations set forth in the forward-looking statements include the effects of the integration of acquired businesses and the ability to achieve projected synergies, fluctuations in commodity prices, exchange rate variations, cost of material, competition in the transportation, trucking and trailer industries, and such other risks as described in detail from time to time in the reports filed by Manac with securities authorities in Canada. Unless otherwise required by applicable securities laws, Manac disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking information in this release is based on information available as of the date of the release.
Adjusted EBITDA and Adjusted net income are non-IFRS measures that Manac uses to assess its operating performance. Adjusted EBITDA is defined as net income before net finance costs, income tax, depreciation and amortization expense and increase in fair value of class B retractable shares, then excluding items that are not in Manac's normal business. Adjusted net income is defined as net income before increase in fair value of class B retractable shares and items that are not in Manac's normal business, adjusted to reflect the tax effect on these items.
For a reconciliation of these "non-IFRS" measures, please refer to Manac's "Management Discussion and Analysis of Financial Condition and Results of Operations for the 25-week period ended June 21, 2014" which has been filed via SEDAR (www.sedar.com).
SOURCE Manac Inc.
Image with caption: "Manac Inc. (CNW Group/Manac Inc.)". Image available at: http://photos.newswire.ca/images/download/20140805_C1690_PHOTO_EN_4618.jpgFor further information: Charles Dutil, President & Chief Executive Officer, Manac Inc., Email:email@example.com, Telephone: 418-228-2018