Sigma Industries reports fiscal 2014 fourth quarter and year-end results
SAINT-ÉPHREM-DE-BEAUCE, QC, Aug. 25, 2014 /CNW Telbec/ - Sigma Industries Inc. (TSXV: SSG), a manufacturing company specializing in the production of composite components, announces results for the fourth quarter and fiscal year ended April 26, 2014. The results reflect the sale of the PNS Tech ("PNS") division effective October 1, 2013 and in accordance with IFRS, PNS has been presented as discontinued operations in the Company's audited consolidated financial statements.
"During fiscal 2014, Sigma Industries focussed on consolidating its status as a prominent manufacturer of leading-edge composite products to its main markets," said Denis Bertrand, President and Chief Executive Officer of Sigma Industries. "The disposal of PNS, our metal products division, paved the way to the decision to concentrate on manufacturing components using the closed mould process. The outlook for closed moulded components is favourable and we can leverage the expertise of our subsidiary René Composites Materials Ltd. in this domain to step up our presence in strategic markets. This initiative implied the closure of our U.S. operations and the transfer of about $8.0 million in production to René's facilities, resulting in the creation of approximately 50 direct jobs and about 15 indirect jobs. The transfer was completed early in the first quarter of fiscal 2015."
FOURTH QUARTER RESULTS
Revenues from continuing operations for the fourth quarter of fiscal 2014 totalled $14.6 million, up 6.3% from $13.8 million in the fourth quarter of fiscal 2013. This increase is mainly attributable to a rise of $1.3 million in sales of industrial products reflecting the addition of a new customer in the United States. Production of these components was transferred to Sigma's Quebec-based facilities as part of its specialization in closed moulding. This factor was partially offset by a $548,212 decrease in sales to the heavy-duty truck industry resulting from the beginning of the gradual phase out of a customer's heavy-duty truck model.
Sigma Industries recorded adjusted earnings before interest, taxes, depreciation and amortization from continuing operations ("EBITDA") of $357,511 in the fourth quarter of fiscal 2014, versus $384,239 in the fourth quarter of last year. This variation is attributable to a foreign exchange loss of $44,050 in the fourth quarter of fiscal 2014, as opposed to a foreign exchange gain of $47,531 in the fourth quarter of fiscal 2013. Excluding these elements, EBITDA from continuing operations rose 19.3% to $401,561 in the fourth quarter of fiscal 2014, from $336,708 a year earlier, as a result of the effect of greater business activity on the absorption of fixed overhead costs.
The Company concluded the fourth quarter of fiscal 2014 with a net loss from continuing operations of ($1.7) million, or ($0.14) per basic and diluted share, versus ($301,742), or ($0.03) per basic and diluted share last year. During the fourth quarter of fiscal 2014, the Company recorded a loss of $1.2 million on the closure of its U.S. operations. Excluding this loss, the net loss from continuing operations was ($510,127), or ($0.04) par basic and diluted share. Given net losses from discontinued operations of ($65,900) and ($142,575), respectively, in the fourth quarters of fiscal 2014 and fiscal 2013, the net loss reached ($1.7) million, or ($0.15) per basic and diluted share in the fourth quarter of fiscal 2014 and ($444,317), or ($0.04) per basic and diluted share in the fourth quarter of fiscal 2013.
FISCAL 2014 RESULTS
For the fiscal year ended April 26, 2014, revenues from continuing operations amounted to $54.7 million, versus $55.5 million for the fiscal year ended April 27, 2013. Adjusted EBITDA from continuing operations was $546,998, compared with $1.6 million in the previous year. The net loss from continuing operations reached ($3.8) million, or ($0.32) per basic and diluted share, versus ($1.5) million, or ($0.13) per basic and diluted share a year ago. Excluding the loss on the closure of U.S. operations, the net loss from continuing operations for fiscal 2014 was ($2.6) million, or ($0.22) per basic and diluted share. Finally, the net loss reached ($3.6) million, or ($0.30) per basic and diluted share, compared with ($1.4) million, or ($0.12) per basic and diluted share in the prior year.
SELECTED FINANCIAL INFORMATION
|Consolidated results of operations||Three months ended||Fiscal years ended|
(unaudited, in thousands of Canadian dollars except
|April 26, 2014||April 27, 2013||April 26, 2014||April 27, 2013|
|Revenues from continuing operations||14,636||13,765||54,680||55,461|
|Adjusted EBITDA from continuing operations||357||383||547||1,618|
|Net income (loss) from continuing operations||(1,679)||(302)||(3,753)||(1,504)|
|Per share (basic and diluted)||(0.14)||(0.03)||(0.32)||(0.13)|
|Net income (loss)||(1,745)||(444)||(3,575)||(1,359)|
|Per share (basic and diluted)||(0.15)||(0.04)||(0.30)||(0.12)|
|Reconciliation of EBITDA, adjusted EBITDA and net income||Three months ended||Fiscal years ended|
|(unaudited, in thousands of Canadian dollars)||April 26, 2014||April 27, 2013||April 26, 2014||April 27, 2013|
|Net income (loss)||(1,745)||(444)||(3,575)||(1,359)|
|Net income (loss) from discontinued operations||(142)||244||145|
|Net income (loss) from continuing operations||(1,745)||(302)||(3,818)||(1,504)|
|Income tax expense (recovery)||(68)||(12)||(91)||(12)|
|Depreciation and amortization||317||314||1,246||1,301|
|Loss on closure of US operations||1,168||-||1,168||-|
|Adjusted EBITDA from continuing operations||357||384||547||1,618|
|Foreign exchange loss (gain)||44||(47)||(406)||(136)|
|Loss (gain) on disposal of property, plant and equipment||-||-||-||4|
|EBITDA from continuing operations||401||337||141||1,486|
|Consolidated balance sheet data||As at|
|(in thousands of Canadian dollars)||April 26, 2014||April 27, 2013|
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") and earnings before interest, taxes, depreciation and amortization ("EBITDA") in assessing its financial performance. As there is no generally accepted method of calculating these financial measures, they 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, EBITDA consists of adjusted EBITDA plus (minus) foreign exchange loss (gain) and loss (gain) on disposal of property, plant and equipment. These measures do 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 components, has two operating subsidiaries and employs 400 people. The Company is active in the heavy-duty truck, coach, transit, machinery 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 August 25, 2014, 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 audited 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