Results for the first quarter ended April 30, 2014

TERREBONNE, QC, June 11, 2014 /CNW Telbec/ - ADF GROUP INC. ("ADF" or the "Corporation") (TSX: DRX) closed the first quarter of the 2015 fiscal year with revenues of $24.4 million compared with $12.3 million during the same period the previous fiscal year.

The gross margin, in dollar value, at $2.8 million, increased by $1.5 million during the three-month period ended April 30, 2014 compared with the same period of the 2014 fiscal year, due mostly to the increase in fabrication and installation volume. As a percentage of revenues, the gross margin remained fairly stable at 11.6% during the three-month period ended April 30, 2014.

The Corporation closed the first quarter ended April 30, 2014 with a net profit of $0.5 million ($0.01 basic and diluted per share), compared with a net loss of $0.3 million ($0.01 basic and diluted per share) in the same period the previous year.

As at April 30, 2014, the Corporation had a working capital of $32.7 million, of which $19.5 million in short-term available liquidities (cash, cash equivalents and short-term investments). Available liquidities thus exceeded the Corporation's total debt by $9.7 million, placing the Corporation in a solid position to support its ongoing operations, carry out its development projects and remunerate its shareholders in accordance with the dividend payment policy implemented at the beginning of fiscal 2012.

Financial Highlights

Three-Month Periods Ended April 30,

2014

2013

(In thousands of dollars, and dollars per share)

$

$

Revenues

24,402

12,276

EBITDA

1,406

475

Net income

471

(269)

—    Per share (basic and diluted)

0.01

(0.01)

Cash flows from (used in) operating activities

(1,495)

62

Average number of outstanding shares (basic, in thousands)

32,491

32,451

Average number of outstanding shares (diluted, in thousands)

33,308

32,451

 Outlook

"With liquidities, net of debt, of close to $10 million, state-of-the-art assets in Terrebonne and in Great Falls and a solid expertise, we look to the future with optimism. However, given the continued pressure on prices in our markets and the start-up of our new plant in Montana, we foresee that fiscal 2015 will be a year of transition" pointed out Mr. Jean Paschini, Co-Chairman of the Board and Chief Executive Officer.

"We are stepping up our efforts to build the order backlogs of both our Terrebonne and Great Falls plants, in order to further strengthen ADF's position for the next economic upturn", concluded Mr. Paschini.

Dividend

On April 9, 2014, the Corporation's Board of Directors approved the payment of a semi-annual dividend of $0.01 per share, which was paid on May 16, 2014 to shareholders of record as at April 30, 2014.

Renewal of the normal course issuer bid program

On May 30, 2014, the Corporation announced that it has obtained the approval of its Board of Directors and the Toronto Stock Exchange to renew its normal course issuer bid. Thus, from June 4, 2014 to June 3, 2015, ADF is authorized to repurchase for cancellation, up to 1,375,824 subordinate voting shares. These shares will be repurchased from time to time when deemed appropriate by the Corporation, considering current economic conditions, its liquidities and the progress of its development project in the State of Montana, U.S.A.

Annual Meeting of Shareholders

ADF Group's Annual Meeting of Shareholders will take place this morning, June 11, 2014 at 11:00 am at the Hilton Montreal/Laval Hotel in Laval.

About ADF Group Inc.

ADF Group Inc. is a North American leader in the design and engineering of connections, fabrication and installation of complex steel structures, heavy steel built-ups, as well as in miscellaneous and architectural metals for the non residential construction industry. ADF Group Inc. is one of the few players in the industry capable of handling highly technically complex mega projects on fast-track schedules in the commercial, institutional, industrial and public sectors.

Forward-Looking Information

This press release contains forward-looking statements reflecting ADF objectives and expectations. These statements are identified by the use of verbs such as "expect" as well as by the use of future or conditional tenses. By their very nature these types of statements involve risks and uncertainty. Consequently, reality may differ from ADF's expectations.

Non-IFRS Measures

Earnings before interest, taxes, depreciation and amortization ("EBITDA") is not a performance measure recognized by IFRS standards, and is not likely to be comparable to similar measures presented by other issuers. Management, as well as investors, consider this to be useful information to assist them in assessing the Corporation's profitability and ability to generate funds to finance its operations.

All amounts are in Canadian dollars, unless otherwise indicated.

CONFERENCE CALL WITH INVESTORS

To discuss ADF Group's results for the first quarter ended April 30, 2014

 

Wednesday, June 11, 2014 at 10:00 a.m. (Montreal time)

To participate in the conference call, please dial 1-866-865-3087 a few minutes before the start of the call.


For those unable to participate, a taped rebroadcast will be available from Wednesday, June 11, 2014 at 1:00 p.m. until midnight Wednesday, June 18, 2014, by dialing 1-855-859-2056;  access code 50018078

The conference call (audio) will also be available at www.adfgroup.com

Members of the media are invited to listen in.

 

SOURCE: Groupe ADF Inc

For further information: Jean Paschini, Co-chairman of the Board of Directors and Chief Executive Officer; Jean-François Boursier, CPA, CA, Chief Financial Officer Telephone: (450) 965-1911 / 1 (800) 263-7560; Web Site: www.adfgroup.com

LIENS CONNEXES
www.adfgroup.com

Profil de l'entreprise

Groupe ADF Inc

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