Novik results remain strong - First quarter 2013 highlights

  • Revenues for the quarter at $3,601,678 compared to $5,352,514 for the same quarter last year
  • Net loss of $382,635 compared with net income of $109,958 in 2012
  • First quarter shipments impacted by severe weather conditions leading to strong backlog entering Q2
  • Net borrowings are down by 25% from $10,226,106 as of March 31, 2012 to $7,670,900

QUEBEC CITY, May 16, 2013 /CNW Telbec/ - Novik Inc. (TSXV: NVK) releases today its 2013 first quarter results. All amounts are expressed in Canadian dollars.

     
NOVIK INC. 
for the periods ended March 31, 2013 and 2012
(in thousands of dollars, except data per share) 
Period of
three months
2013
Period of
three months
2012
  $ $
Operating results    
     
Revenues  3,602 5,353
Gross margin 1,327 2,170
Earnings (loss) before interest, income taxes, stock-based
compensation costs, depreciation, and amortization
(59) 745
Net earnings (loss) (383) 110
Basic and diluted net earnings (loss) per share  (0.008) 0.002
     

     
NOVIK INC.
(in thousands of dollars, except data per share)
March 31
2013
December 31
2012
  $ $
Financial position     
     
Total assets 23,918 24,703
Working capital 3,642 4,494
Long-term debt including the current portion 6,537 6,839
Total liabilities 10,051 10,461
Shareholders' equity 13,868 14,242
Shareholders' equity per share 0.28 0.29
     
Number of outstanding shares 48,825,858 48,825,858

Mr. Michel Gaudreau, Chairman of the Board, was pleased that the corporation's financial results remained relatively strong during the first quarter while combating the operating environment.  Mr. Gaudreau stated "the severity of the weather conditions that prevailed in the general northeast and midwest quadrants of the United States through a great part of the first three months of the year had a detrimental impact on the housing and home repairs construction business to the extent that it materially had a negative impact on Novik revenues. This region represents Novik's largest market in the United States".

REVENUES

During the first quarter of 2013, the corporation generated $3,601,678 in revenues compared with $5,352,514 in 2012, a 33% difference explained primarily by the weather situation described above. The consequences of those conditions resulted in a deferment in demand for our current and new products, in the execution of a significant private label agreement and a new distribution agreement for Novik branded products.

Our sales team is focusing on 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 corporation's liquidity and ability to generate funds to finance its activities.

For the first quarter 2013, adjusted EBITDA amounted to $(58,991) compared with $745,300 for the same period of the previous fiscal year.

NET EARNINGS

The net loss for the first quarter of the fiscal year 2013 was $382,635 compared with net earnings of $109,958 for the same quarter of the previous fiscal year.  Due to seasonality, the corporation historically produces a net loss in its first quarter of the fiscal year.  As explained earlier, the first quarter of 2012 was much higher than usual while its first quarter of 2013 although soft, is much closer to historical trends.

OUTLOOK

Mr. Gaudreau concludes "that even if the industry is still facing challenges, Novik has succeeded in producing positive results over the past two years."

The innovation efforts made in recent years in marketing of new sophisticated, unique products have allowed Novik to better position itself in the industry and to stand out even more 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 allowed Novik to improve its profitability despite the constant pressure of raw material price levels.

The US housing market is starting to show signs of sustained improvement should create additional demand for the corporation's product.  Whereas the first quarter is historically more variable due winter conditions, we expect that the second quarter will produce improvement over last year.

The introduction of a unique and exciting new product at the end of the first quarter 2013 has already made its impact in much improved order book.  By the end of the first quarter, the corporation has also finalized a new agreement with one of the largest two step distributors in the USA that is expected to produce additional market share for the balance of the year.

"We believe that Novik is positioned to capture additional market share in 2013 given the addition of senior sales management in the latter part of 2012 to maximize our presence with our current and potential distributors on an increasing scale on the North American markets" added Mr. Gaudreau. "We keep our focus on creating value for the shareholders not only by increasing our sales volume but also by organizational efficiency".

OTHER

Following the annual general meeting held this morning, the directors have approved the grant of 800 000 stock options available to directors and certain officers at $0.42 a share, options which we issued as per the compensation package allowed by the corporation to its officers and directors.

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 corporation 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

Profil de l'entreprise

Novik Inc.

Renseignements sur cet organisme


FORFAITS PERSONNALISÉS

Jetez un coup d’œil sur nos forfaits personnalisés ou créez le vôtre selon vos besoins de communication particuliers.

Commencez dès aujourd'hui .

ADHÉSION À CNW

Remplissez un formulaire d'adhésion à CNW ou communiquez avec nous au 1-877-269-7890.

RENSEIGNEZ-VOUS SUR LES SERVICES DE CNW

Demandez plus d'informations sur les produits et services de CNW ou communiquez avec nous au 1‑877-269-7890.