Novik Inc. - 104% increase in net earnings over Q3 2012 - Novik reports third quarter 2013 results

  • Revenues of $9,798,691 compared to $7,361,752, an increase of 33% over the same quarter in 2012
  • 104% increase in net earnings to $1,710,938 compared to $839,093
  • 29% EBITDA margin on revenue compared to 26% in Q3 2012
  • 52% increase in EBITDA to $2,880,255 compared to $1,899,173
  • 58% decrease in net borrowings from $6,289,500 as of September 30, 2012 to $2,620,444
  • 80% increase in year-to-date net earnings of $2,715,303 compared to $1,511,103 for the same quarter in 2012

QUEBEC CITY, Nov. 18, 2013 /CNW Telbec/ - Novik Inc. (TSXV: NVK) ("Novik" or the "Corporation") released today its 2013 third quarter results. All amounts are expressed in Canadian dollars.

         
NOVIK INC.
for the periods ended September 30, 2013 and 2012
Period of
three months
Period of
three months
Period of
nine months
Period of
nine months
(in thousands of dollars, except data per share)  2013 2012 2013 2012
  $ $ $ $
Operating results        
         
Revenues 9,799 7,362 23,040 20,143
Gross margin 4,778 3,752 10,718 9,453
Earnings before interest, income taxes, stock-based
compensation costs, depreciation, and amortization
2,359 1,535 3,742 2,800
Net earnings 1,711 839 2,715 1,511
Basic and diluted net earnings per share  0.034 0.017 0.054 0.031

     
NOVIK INC. September 30 December 31
(in thousands of dollars, except data per share) 2013 2012
  $ $
Financial position    
     
Total assets 27,496 24,703
Working capital 8,305 4,494
Long-term debt including the current portion 5,847 6,839
Total liabilities   10,226 10,461
Shareholders' equity 17,270 14,242
Shareholders' equity per share 0.35 0.29
     
Number of outstanding shares 49,200,858 48,825,858

Mr. Michel Gaudreau, Chairman of the Board and President and Chief Executive Officer of the Corporation, was pleased with the results for the third quarter 2013. Mr. Gaudreau stated that "the introduction of innovative products and the ramp up of new targeted customers contributed to the increase in revenues".

During the third quarter of 2013, the Corporation generated record revenues for a third quarter at $9,798,691 compared with $7,361,752 in 2012, an increase of 33%.

During the first nine months of 2013, the Corporation generated $23,039,899 in revenues compared with $20,142,912 in 2012, a 14% increase. Management believes that the product and market strategies implemented in the latter part of the previous year and the successful execution of its business plan are resulting in the improvements being realized in the generation of increased revenues, EBITDA and Net Income.

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 Corporation's liquidity and ability to generate funds to finance its activities.

For the third quarter of 2013, adjusted EBITDA amounted to $2,610,065 compared with $1,508,064 for the same period of the previous fiscal year, a significant increase of 73%. Adjusted EBITDA on sales for the third quarter of 2013 was 27% versus 20% over the corresponding period of last year. Higher overall sales, changes in the product mix with the introduction of new products, new customers and continuous improvement activities support this level of performance.

For the first six-month period ended on June 30, 2013, adjusted EBITDA increased by 13% to $2,551,074 compared with $2,253,364 for the same period of the previous fiscal year.  Adjusted EBITDA on sales for the first half of 2013 was 19% versus 18% over the corresponding first half of last year, despite a slow start in Q1 2013.

NET EARNINGS

The net earnings for the third quarter of the fiscal year 2013 were $1,710,938 compared with $839,093 for the same quarter of the previous fiscal year. This increase of 104% in profitability is directly in line with the increase of the sales and the same factors previously referred to in the adjusted EBITDA section.

For the nine-month period ended on September 30, 2013, net earnings were $2,715,303 compared with $1,511,103 for the same period of the previous fiscal year. This financial result represents a net improvement compared with the previous year and is directly in line with management's desire to maximize profitability through innovation and operational efficiency.

OUTLOOK

Mr. Gaudreau concluded that "with the improvements in the North American markets, Novik is pleased with the positive results delivered".

Management believes that the innovation efforts made in recent years in designing and marketing unique products have allowed Novik to differentiate itself from its competitors. At the same time, internal efforts to generate operational savings through better use of raw materials, equipment, and value-added production methods have been implemented to allow Novik to improve its profitability despite the constant pressure of raw material price levels.

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 are based upon current expectations and involve known and unknown risks, uncertainties or other factors associated with Novik's business and the environment in which the business is operated and that may cause actual results, performance or achievements of the Corporation to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements including the matters discussed in the MD&A of Novik for the year ended December 31, 2012.

Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking, including those identified by the expressions "anticipate", "believe", "plan", "estimate", "expect", "intend", and similar expressions to the extent they relate to Novik or its management. Forward-looking statements are not historical facts, but reflect Novik's current expectations regarding future results or events. Novik assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements except as may be required by Canadian securities laws.

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: Novik Inc.

For further information:

Michel Gaudreau
Chairman of the Board and President 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

Profil de l'entreprise

Novik Inc.

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