5N Plus Inc. Reports Financial Results for the Second Quarter Ended June 30, 2014

MONTREAL, Aug. 7, 2014 /CNW Telbec/ - 5N Plus Inc. (TSX: VNP), the leading producer of specialty metal and chemical products, today reported financial results for the second quarter ended June 30, 2014.

  • Revenues for the second quarter of 2014 reached $136.6 million, which corresponds to an increase of $24.0 million or 21% compared to $112.6 million for the second quarter of 2013.

  • Adjusted EBITDA1 for the second quarter of 2014 also reached its highest level in the last 8 quarters, attaining $10.8 million up from $6.5 million for the second quarter of 2013 with EBITDA1,2 lying at $11.5 million also close to its highest level since the last 8 quarters when excluding the impact of the non-recurring gain recorded in the second quarter of 2013.

  • Net earnings for the second quarter of 2014 reached $4.4 million or $0.05 per share compared to $34.3 million or $0.41 per share for the second quarter of 2013, positively impacted by the MCP litigation settlement of $45.2 million or $0.54 per share.

  • Net debt1 stood at $70.4 million, up from March 31, 2014 but down from $84.7 million as at June 30, 2013.

  • Bookings1 of $99.6 million in the quarter, in line with the second quarter of 2013. Bookings for the six-month period ended June 30, 2014 increased by 19% and stood at $259.3 million compared to $218.5 million for the same period last year.

  • On April 3, 2014, 5N Plus announced that it had acquired the remaining 33.33% ownership interest in its subsidiary Sylarus Technologies, LLC, located in St. George, Utah, and had changed its name to 5N Plus Semiconductors LLC.

  • On May 5, 2014, 5N Plus announced that it had completed the acquisition of all of the issued and outstanding shares in the capital of AM&M Advanced Machine and Materials Inc. ("AM&M").

  • On May 29, 2014,  5N Plus announced that it had entered into new supply agreements with First Solar, Inc., the world's leading thin-film solar module manufacturer, covering First Solar's compound semiconductor needs until March 31, 2019.

  • On June 26, 2014, 5N Plus announced the closing of its offering of CA$60 million of convertible unsecured subordinated debentures and that the underwriters had purchased an additional CA$6 million.

Jacques L'Ecuyer, President and Chief Executive Officer, said "We continued to improve profitability, reporting another strong quarter in terms of EBITDA supported by increasing demand, especially for our bismuth based products, and a more favorable sales mix and underlying commodity pricing trend. We continue our efforts aimed at improving efficiency, reducing costs and working capital throughout the group.

Mr. L'Ecuyer continued, "We made progress in the quarter towards executing on our growth plan by completing the acquisition of the remaining 33.33% ownership interest in our subsidiary, Sylarus Technologies LLC, a germanium substrate supplier, changing its name to 5N Plus Semiconductors LLC, and we acquired all the issued and outstanding shares in the capital of AM&M and its metal powder atomization technology for electronic packaging, solar modules and additive manufacturing applications."

Mr. L'Ecuyer concluded, "In order to support our operations and growth plan, we successfully completed the issuance of a convertible subordinated debenture for a total amount of CA$66.0 million ($60.8 million) before fees. Combined with the new credit facility announced today, this will further improve our financial flexibility and enable us to execute on several growth initiatives which we are currently working on."

About 5N Plus Inc.
5N Plus is the leading producer of specialty metal and chemical products.  Fully integrated with closed-loop recycling facilities, the Company is headquartered in Montreal, Québec, Canada and operates manufacturing facilities and sales offices in several locations in Europe, the Americas and Asia.  5N Plus deploys a range of proprietary and proven technologies to produce products which are used in a number of advanced pharmaceutical, electronic and industrial applications.  Typical products include purified metals such as bismuth, gallium, germanium, indium, selenium and tellurium, inorganic chemicals based on such metals and compound semiconductor wafers.  Many of these are critical precursors and key enablers in markets such as solar, light-emitting diodes and eco-friendly materials.

Forward-Looking Statements and Disclaimer
This press release may contain forward-looking information within the meaning of applicable securities laws.  All information and statements other than statements of historical facts contained in this press release are forward-looking information.  Such statements and information may be identified by words such as "about", "approximately", "may", "believes", "expects", "will", "intends", "should", "plans", "predicts", "potential", "projects", "anticipates", "estimates", "continues" or similar words or the negative thereof or other comparable terminology.  Forward-looking statements are based on the best estimates available to 5N Plus at this time and involve known and unknown risks, uncertainties and other factors that may cause 5N Plus' actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.  A description of the risks affecting 5N Plus' business and activities appears under the heading "Risk and Uncertainties" of 5N Plus' 2013 MD&A dated February 25, 2014 and note 13 of the unaudited interim condensed consolidated financial statements for the three and six-month periods ended June 30, 2014 and 2013 available on SEDAR at www.sedar.com. No assurance can be given that any events anticipated by the forward-looking information in this press release will transpire or occur, or if any of them do so, what benefits that 5N Plus will derive therefrom.  In particular, no assurance can be given as to the future financial performance of 5N Plus.  The forward-looking information contained in this press release is made as of the date hereof and 5N Plus undertakes no obligation to publicly update such forward-looking information to reflect new information, subsequent or otherwise, unless required by applicable securities laws.  The reader is warned against placing undue reliance on these forward-looking statements.

5N PLUS INC.
UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(Figures in thousands of United States dollars)

    As at June 30,
2014
   As at December 31,
  2013
    $   $
         
ASSETS        
Current        
Cash and cash equivalents   21,655   22,427
Temporary investments (restricted)   2,377   2,490
Accounts receivable   83,436   60,616
Inventories   183,932   174,374
Income tax receivable   4,733   8,455
Derivative financial assets   373   955
Other current assets   2,231   2,290
Total current assets   298,737   271,607
Property, plant and equipment   63,061   59,614
Intangible assets   14,826   13,143
Deferred tax asset   12,189   13,387
Investments accounted for using the equity method   347   444
Other assets   5,706   7,045
Total non-current assets   96,129   93,633
Total assets   394,866   365,240
         
LIABILITIES AND EQUITY        
Current        
Bank indebtedness   8,937   10,462
Trade and accrued liabilities   55,142   65,016
Income tax payable   5,972   3,660
Derivative financial liabilities   1,940   3,284
Long-term debt due within one year   845   4,439
Total current liabilities   72,836   86,861
Long-term debt   35,339   68,346
Convertible debentures   49,309   -
Deferred tax liability   1,439   1,600
Retirement benefit obligation   16,669   15,887
Derivative financial liabilities   9,478   953
Other liabilities   13,491   1,064
Total non-current liabilities   125,725   87,850
Total liabilities   198,561   174,711
Shareholders' equity   196,306   190,052
Non-controlling interest   (1)   477
Total equity   196,305   190,529
Total liabilities and equity   394,866   365,240



5N PLUS INC.
UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF EARNINGS
For the three-month and six-month periods ended June 30, 2014 and 2013
(Figures in thousands of United States dollars, except per share information)

  Three months   Six months
               
  2014   2013   2014   2013
                                                    $   $   $   $
               
Revenues 136,597   112,637   278,976   231,026
Cost of sales 117,041   106,645   239,784   206,033
Selling, general and administrative expenses 10,041   10,150   19,803   19,777
Other expenses (income), net 1,425   (41,293)   4,179   (38,315)
Share of loss from joint ventures 120   117   97   253
  128,627   75,619   263,863   187,748
Operating income 7,970   37,018   15,113   43,278
               
Gain on disposal of property, plant and equipment -   -   1,312   -
               
Financial expenses              
Interest on long-term debt 1,322   1,576   2,462   3,418
Imputed interest and other interest expense 409   245   685   1,715
Foreign exchange and derivative (gain) loss (714)   1,308   (698)   (1,709)
  1,017   3,129   2,449   3,424
Earnings before income taxes 6,953   33,889   13,976   39,854
Income taxes expense (recovery) 2,517   (392)   5,021   35
Net earnings for the period 4,436   34,281   8,955   39,819
               
Attributable to:              
Equity holders of 5N Plus Inc. 4,436   34,185   9,091   39,556
Non-controlling interest -   96   (136)   263
  4,436   34,281   8,955   39,819
Earnings per share attributable to equity holders of 5N Plus Inc. $0.05   $0.41   $0.11   $0.47
Basic earnings per share $0.05   $0.41   $0.11   $0.47
Diluted earnings per share $0.05   $0.41   $0.11   $0.47


5N PLUS INC.
(Figures in thousands of United States dollars)

Cash Flows            
  Q2 2014 Q2 2013 % Change YTD 2014 YTD 2013 % Change
  $ $   $ $  
Funds from operations1 5,774 1,560 270% 12,580 6,168 104%
Net change in non-cash working capital items (16,665) 1,272 (1410%) (26,218) 7,516 (449%)
Operating activities (10,891) 2,832 (485%) (13,638) 13,684 (200%)
Investing activities (4,986) (2,189) 128% (5,318) (4,775) 11%
Financing activities 20,594 2,939 601% 18,158 (3,101) 686%
Effect of foreign exchange rate changes on cash and cash equivalents related to operations 52 (315) 117% 26 145 (82%)
Net (decrease)  increase in cash and cash equivalents 4,769 3,267 46%  (772) 5,953 (113%)
             
             
Revenues by Segment            
  Q2 2014 Q2 2013 % Change YTD 2014 YTD 2013 % Change
  $ $   $ $  
Electronic Materials Segment 44,544 42,788 4% 92,685 91,144 2%
Eco-Friendly Materials Segment 92,053 69,849 32% 186,291 139,882 33%
Total Revenues 136,597 112,637 21% 278,976 231,026 21%
             
             
Adjusted EBITDA            
  Q2 2014 Q2 2013 % Change YTD 2014 YTD 2013 % Change
  $ $   $ $  
Electronic Materials 7,157 5,602 28% 14,105 12,680 11%
Eco-Friendly Materials 6,241 2,958 111% 12,646 8,025 58%
Corporate (2,582) (2,017) 28% (5,434) (4,047) 34%
Adjusted EBITDA1 10,816 6,543 65% 21,317 16,658 28%
             
     
Backlog and Bookings    
  BACKLOG1 BOOKINGS1 
  Q2 2014 Q1 2014 Q2 2013 Q2 2014 Q1 2014 Q2 2013
  $ $ $ $ $ $
Electronic Materials 77,278 79,362 82,681 42,460 47,121 32,672
Eco-Friendly Materials 73,085 107,968 70,596 57,170 112,516 66,952
Total 150,363 187,330 153,277 99,630 159,637 99,624

___________________________________

1 See Non-IFRS Measures
2 The comparative periods have been restated to reflect a change in EBITDA1 definition. See Selected Quarterly Financial Information

 

 

 

SOURCE: 5N Plus Inc.

For further information:

Jean Mayer
Vice President, Legal Affairs and Corporate Secretary
5N Plus Inc.
(514) 856-0644 x6178
invest@5nplus.com


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