MONTREAL, Jan. 13 /CNW Telbec/ - 5N Plus Inc. (TSX: VNP) today announced
financial results for the second quarter of fiscal 2009 ended November 30,
2008. Results continued to reflect a trend of strong financial performance
with net earnings, sales and EBITDA(1) all reaching record levels. Net
earnings for the second quarter of 2009 were of $5,815,037 ($0.13 per share),
which represents a 376.8% increase over net earnings of $1,219,548 ($0.04 per
share) for the second quarter of the previous fiscal year. Sales for the
second quarter were of $18,135,824 up by 166.9% compared with sales of
$6,795,743 for the second quarter of the previous fiscal year. EBITDA
increased by 282.0% in the second quarter to $8,871,494 up from $2,322,589
during the second quarter of the previous fiscal year.
For the six month period ended November 30, 2008, net earnings increased
by 337.5% to $10,144,122 ($0.22 per share) and sales by 143.9% to $32,165,699.
This compares with net earnings of $2,318,804 ($0.08 per share) and sales of
$13,190,216 for the same period of the previous fiscal year. EBITDA also
increased during the six month period ended November 30, 2008 to $15,477,014
up by 252.1% from $4,395,074 for the corresponding period of the previous
fiscal year.
"We are pleased to report the results of the second quarter of our 2009
fiscal year which has been characterized by continuing growth and record level
profitability. This reflects the strong operational performance now at both of
our facilities and the increasing demand for our products. In spite of the
current financial world crisis, demand for our products remained strong during
the quarter as we managed to increase sales and further strengthen our twelve
month backlog of orders to a record level of $54,722,363 as at November 30,
2008. The current quarter was the first throughout which our German facility
was fully operational and we are extremely pleased by its performance and the
rapid ramp up in production capacity that has been achieved there" commented
Mr. Jacques L'Ecuyer, President and Chief Executive Officer.
He added, "We approved soon after the closing of the quarter a normal
course issuer bid as we believe that the underlying value of 5N Plus may not
be reflected in the market price of our common shares. Consequently we
estimate that the repurchase of our shares under certain conditions may
constitute an appropriate use of our financial resources and be beneficial to
5N Plus and its shareholders".
Mr. L'Ecuyer concluded, "We are monitoring closely the impact of the
current financial turbulences on our customers and business. We are confident
that we have both the operational and financial flexibility to make the
necessary adjustments in our operating practices if the situation warrants.
Furthermore, we continue to believe that our strong balance sheet with cash
and cash equivalents of over $60 million and our ability to generate positive
cash flows position us uniquely to take advantage of both organic growth and
in particular accretive acquisitions opportunities".
The interim consolidated financial statements of 5N Plus, as well as
Management's Discussion and Analysis of this second quarter ended November 30,
2008 are available on the 5N Plus website, at www.5nplus.com and on the SEDAR
website at www.sedar.com.
Webcast Information
The Company will host a conference call at 10:00 Eastern Time on
Wednesday January 14, 2009 with financial analysts to discuss the second
quarter results. All interested parties are invited to participate to the live
broadcast on the company's Web site at www.5nplus.com. A replay of the webcast
and a recording of the Q&A will be available until January 28, 2009.
Forward-Looking Statements and Disclaimer
Certain statements in this press release may be forward-looking.
Forward-looking statements are based on the best estimates available to the
Company at the time and involve known and unknown risks, uncertainties or
other factors that may cause the Company's actual results, performance or
achievements to be materially different from any future results, performance
or achievements expressed or implied by such forward-looking statements. The
Company disclaims any intention or obligation to update or revise any
forward-looking statements in order to account for any new information or any
other event. The reader is warned against undue reliance on these
forward-looking statements.
About 5N Plus Inc.
5N Plus draws its name from the purity of its products, 99.999% (five
nines or 5N) and more. 5N Plus, which has its head office in Montreal, Quebec,
develops and produces high-purity metals and compounds for electronic
applications and provides its customers with recycling solutions. The Company
is an integrated producer with both primary and secondary refining
capabilities. 5N Plus focuses on specialty metals such as tellurium, cadmium
and selenium and on related compounds such as cadmium telluride and cadmium
sulphide. The Company's products are critical precursors in a number of
electronic applications, including the rapidly-expanding solar (thin-film
photovoltaic) market, for which 5N Plus is a major supplier of cadmium
telluride, and the radiation detector market.
-------------------------------
(1) EBITDA is not defined by Canadian generally accepted accounting
principles and cannot be formally presented in financial statements.
EBITDA means earnings before financing costs, interest income, income
taxes, depreciation and amortization and start-up costs. The
definition of EBITDA used by the Company may differ from that used by
other companies. Please see management's discussion and analysis for
more details.Interim Consolidated Statements of Earnings
Periods ended November 30, 2008 and 2007
(unaudited) Three months Six months
-------------------------------------------------------------------------
(in Canadian dollars) 2008 2007 2008 2007
-------------------------------------------------------------------------
Sales $18,135,824 $ 6,795,743 $32,165,699 $13,190,216
Cost of goods sold 8,905,646 3,519,364 15,303,697 6,936,403
------------------------------------------------------
Gross profit 9,230,178 3,276,379 16,862,002 6,253,813
Expenses
Selling and
administrative 1,075,795 708,607 2,263,062 1,180,568
Research and
development 259,415 249,661 484,627 661,376
Foreign exchange
(gain) loss (976,526) (4,478) (1,362,701) 16,795
Financial 118,006 137,121 202,894 252,615
Interest income (359,934) - (769,111) -
Depreciation of
property, plant
and equipment 576,682 242,867 950,034 484,169
Amortization of
deferred start-up
costs 157,103 - 207,444 -
------------------------------------------------------
850,541 1,333,778 1,976,249 2,595,523
------------------------------------------------------
Earnings before
undernoted items 8,379,637 1,942,601 14,885,753 3,658,290
Start-up costs,
new plant - 102,015 206,390 173,356
------------------------------------------------------
Earnings before
income taxes 8,379,637 1,840,586 14,679,363 3,484,934
Income taxes
Current 2,331,449 567,038 4,075,273 1,041,130
Future 233,151 54,000 459,968 125,000
------------------------------------------------------
2,564,600 621,038 4,535,241 1,166,130
------------------------------------------------------
Net earnings $ 5,815,037 $ 1,219,548 $10,144,122 $ 2,318,804
-------------------------------------------------------------------------
Earnings per share
Basic $ 0.13 $ 0.04 $ 0.22 $ 0.08
Diluted $ 0.13 $ 0.04 $ 0.22 $ 0.07
-------------------------------------------------------------------------
Weighted average
number of
common shares
Basic 45,500,000 29,635,954 45,500,000 29,635,954
Diluted 45,721,205 31,909,531 45,926,010 31,909,531
-------------------------------------------------------------------------
5N Plus inc. As at November 30, As at May 31,
Interim Consolidated Balance Sheets 2008 2008
(in Canadian dollars) (unaudited)
-------------------------------------------------------------------------
Assets
Current assets
Cash and cash equivalents $ 60,528,235 $ 59,576,743
Accounts receivable 6,772,128 10,164,562
Inventories 23,122,482 12,727,564
Prepaid expenses and deposits 394,990 348,504
Future income taxes 120,000 456,325
----------------------------
90,937,835 83,273,698
Property, plant and equipment 25,850,925 21,220,889
Grant receivable 2,084,972 2,053,377
Future income taxes 800,821 909,536
Deferred start-up costs 1,076,280 821,008
Other assets 52,682 55,681
----------------------------
$120,803,515 $108,334,189
----------------------------
Liabilities and Shareholders' Equity
Current liabilities
Bank loan $ 2,956,610 $ 1,262,205
Accounts payable and accrued liabilities 8,844,149 7,486,227
Income taxes payable 1,094,121 1,754,114
Current potion of long-term debt 547,333 578,922
Current portion of other long-
term liabilities 108,984 270,251
----------------------------
13,551,197 11,351,719
Long-term debt 4,275,340 4,547,028
Other long-term liabilities - 127,906
Deferred revenue 730,983 753,606
----------------------------
18,557,520 16,780,259
Shareholders' Equity
Share capital 81,788,694 81,788,694
Contributed surplus 520,623 242,136
Accumulated other comprehensive income 269,456 -
Retained earnings 19,667,222 9,523,100
----------------------------
102,245,995 91,553,930
----------------------------
$120,803,515 $108,334,189
-------------------------------------------------------------------------
Reconciliation of EBITDA and Net Earnings
(in Canadian dollars)
-------------------------------------------------------------------------
Three months ended November 30
-------------------------------------------------------------------------
2008 2007 Increase
Net earnings $ 5,815,037 $ 1,219,548 376.8%
Add (deduct):
Income taxes 2,564,600 621,038
Financial expenses(1) &
Interest income (241,928) 137,121
Depreciation and amortization 733,785 242,867
Start-up costs, new plant - 102,015
-----------------------------
EBITDA $ 8,871,494 $ 2,322,589 282.0%
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Six months ended November 30
-------------------------------------------------------------------------
2008 2007 Increase
Net earnings $10,144,122 $ 2,318,804 337.5%
Add (deduct):
Income taxes 4,535,241 1,166,130
Financial expenses(1) &
Interest income (566,217) 252,615
Depreciation and amortization 1,157,478 484,169
Start-up costs, new plant 206,390 173,356
-----------------------------
EBITDA $15,477,014 $ 4,395,074 252.1%
-------------------------------------------------------------------------
(1) The foreign exchange gain or loss is presented independently from the
financial expenses. This presentation differs from those of previous
quarters.
Cash Flow
(in Canadian dollars)
-------------------------------------------------------------------------
Three months ended Six months ended
November 30 November 30
2008 2007 2008 2007
-------------------------------------------------------------------------
Operating
activities (1) $ 6,927,426 $ 1,522,557 $12,005,773 $ 2,979,654
Add (deduct):
Net change in
non-cash working
capital items 2,864,639 (644,346) (5,672,471) (2,784,849)
------------------------------------------------------
Operating
activities 9,792,065 878,211 6,333,302 194,805
Financing
activities 1,730,328 1,867,982 1,087,042 3,758,173
Investing
activities (1,188,946) (4,787,578) (6,483,620) (5,585,369)
Effect of changes
in foreign
exchange rate
on cash 14,768 - 14,768 -
------------------------------------------------------
Increase (decrease)
in cash and cash
equivalents 10,348,215 (2,041,385) 951,492 (1,632,391)
Cash and cash
equivalents,
beginning of
period 50,180,020 1,935,926 59,576,743 1,526,932
------------------------------------------------------
Cash and cash
equivalents, end
of period $60,528,235 $ (105,459) $60,528,235 $ (105,459)
-------------------------------------------------------------------------
(1) Before net change in non-cash working capital items
For further information: Jacques L'Ecuyer, President and Chief Executive
Officer, 5N Plus Inc., (514) 856-0644, jacques.lecuyer@5nplus.com
