345% Increase in Net Earnings for Novik - 2012 Fiscal Year Highlights

  • 345% increase in net earnings to $1,919,030 compared to $431,073 in 2011
  • 49% increase in 2012 adjusted EBITDA to $5,060,075 compared to $3,390,290 in 2011
  • 20% EBITDA margin on revenue compared to 13% in 2011
  • 7 point increase in gross margin to 47% of revenues
  • Annual revenues at $25,395,236 compared to $25,936,880 in 2011
  • Net borrowings are down by 34% from $8,290,584 as of December 31, 2011 to $5,468,924

QUEBEC CITY, Feb. 28, 2013 /CNW Telbec/ - Novik Inc. (TSXV: NVK) releases today its 2012 annual results. All amounts are expressed in Canadian dollars.

 
NOVIK inc.
for the fiscal years ended December 31, 2012 and 2011
(in thousands dollars, except for amounts per share)
 
12 months
period
 
12 months
period
    2012   2011
    $   $
Operating results
         
Revenues   25,395   25,937
  Earnings before depreciation, amortization, financial expenses,
stock-based compensation costs and income taxes
  5,060   3,390
Net earnings   1,919   431
Basic and diluted net earnings per share   0.039   0.009
         
Financial position
         
Total assets   24,703   25,316
Working capital   4,494   3,363
Total long term financial liabilities   6,839   9,092
Total liabilities   13,270   13,072
Shareholder's' equity   14,242   12,046
Shareholder's equity per share     0.29   0.25
 
Number of shares outstanding   48,825,858   48,470,858

Mr. Michel Gaudreau, Chairman of the Board, is proud to announce net earnings of $1,919,030 for the fiscal year 2012, a 345% increase when compared to the previous year.  Mr. Gaudreau stated "Novik has succeeded in achieving record sales over the past two years, and is poised to benefit from additional market share gains in 2013.  The efforts in innovation made in recent years to develop new, sophisticated and unique products allow Novik to better position itself in the industry and to stand out further from its competitors.

REVENUES

During fiscal year 2012, the company generated $25,395,236 in revenues compared with $25,936,880 in 2011 in spite of very significant softness in international markets. Mr. Gaudreau considers that the current challenging environment within the construction and exterior covering market in North America has confirmed Novik's team commitment to reduce costs, improve operational effectiveness and offer more new products with better margin in order to keep creating sustainable value for the shareholders in the short term while building solid grounds for growth.

Sales in the final quarter of 2012 decreased by 3% to $5,252,323 compared with $5,431,077 in the same period of the previous year.  This decrease is mainly coming from unrealized outsourcing revenues from industrial customers in 2011 that did not occur in 2012.

Our sales team keep its focus in developing strong and strategic partnership with retailers and distributors in order to take advantage of business opportunities existing on the North American market even in the current market conditions.

EARNINGS BEFORE DEPRECIATION, AMORTIZATION, FINANCIAL EXPENSES, STOCK-BASED COMPENSATION COSTS AND TAXES ("Adjusted EBITDA")

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 in Canada. Accordingly, this measure may not be comparable to similar measures presented by other issuers. This measure is presented 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 fiscal year ended December 31, 2012, Adjusted EBITDA amounted to $5,060,075 compared with $3,390,290 for the previous fiscal year, representing year-over-year growth of 49%. Adjusted EBITDA margin increased to 20% in 2012 versus 13% in 2011 as a result of Novik's continued focus on improvement in manufacturing and operating efficiencies.

NET EARNINGS

The net earnings for fiscal year 2012 were $1,919,030 compared with $431,073 for the previous fiscal year.  Novik generated an operating profit of $3,335,108 in 2012 compared with $1,466,429 in 2011.  The improvement comes from a mix of higher margin products, the introduction of new products at the end of Q1 that generated sales all year, a clear focus on strategic procurement of resins and continued operations efficiencies.

OUTLOOK

Mr. Gaudreau concludes "after record results over the past two years, Novik is positioned to capture additional market share in 2013.  The addition of senior sales management in the latter part of 2012 will maximize our presence with our current and potential distributors on an increasing scale on the North American markets.

Our sales team is continuing to focus on increasing revenues from existing clients while also penetrating new distributors and large retailers. These efforts are supported by Novik's growing presence and brand recognition in the marketplace and our unique and innovative product lines. Additionally, we are continuing to make efforts to increase the visibility of our products to end-consumers through our Novexpert network and our participation at trade shows specializing in housing and renovation.

For 2013, management will continue to focus on sales growth objectives while ensuring greater profitability from higher sales volume and increased manufacturing and operating efficiencies."

About NOVIK

Novik (NVK) is a leader in the design, manufacture 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:



Michel Gaudreau
Chairman of the Board and Chief Executive Officer
Tel. : (418) 878-6161
E-mail : micgau@novik.com

François Giroux
EVP & General Manager and Interim Chief Financial Officer
Tel. : (418) 878-6161
E-mail : fragir@novik.com

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Novik Inc.

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