5N Plus Inc. Reports Fourth Quarter Results and Record Sales and Earnings for Fiscal Year 2009



    MONTREAL, Aug. 12 /CNW Telbec/ - 5N Plus Inc. (TSX: VNP) today reported
financial results for its fourth quarter and fiscal year ended May 31, 2009
including record levels of earnings and sales for the fiscal year.
    Net earnings for the fourth quarter were $5,708,451 or $0.13 per share,
representing a 111% increase over net earnings of $2,703,068 or $0.06 per
share for the fourth quarter of the previous fiscal year. For the fiscal year
ended May 31, 2009, net earnings were at a record level of $20,868,124 or
$0.46 per share, representing an increase of 191% over net earnings of
$7,175,011 or $0.20 per share for the previous fiscal year.
    EBITDA(1) for the fourth quarter was $8,576,126, representing an increase
of 119% over EBITDA of $3,916,750 for the fourth quarter of the previous
fiscal year. EBITDA reached a record level of $31,409,878 for the fiscal year
ended May 31, 2009, an increase of 178% over EBITDA of $11,318,178 for the
previous fiscal year.
    Sales for the fourth quarter were $18,057,223, representing an increase
of 92% over sales of $9,423,908 for the fourth quarter of the previous fiscal
year. Sales for the fiscal year ended May 31, 2009 were at a record level of
$69,373,117, an increase of 124.0% compared to sales of $30,972,941 for the
previous fiscal year. The backlog(2) of orders expected to translate into
sales over the following twelve months stood at $52,224,368 at the fiscal year
end which represents a 73 % increase over its level of $30,174,000 at the end
of the previous fiscal year.
    Cash flow from operating activities was $4,965,655 for the quarter and
$16,239,645 for the fiscal year ended May 31, 2009. This compares with a cash
consumption of $3,519,086 and $2,163,317 for the corresponding periods of the
previous fiscal year. Cash and cash equivalents increased by $5,489,787 during
the fiscal year to $65,066,530 as at May 31, 2009, up from $59,576,743 as at
May 31, 2008. Shareholders' equity also increased during the fiscal year to
$112,368,764 as at May 31, 2009 up from $90,962,804 one year earlier.
    Jacques L'Ecuyer, President and Chief Executive Officer, said "The
results of our fourth quarter are in line with those of the previous two
quarters and complete a record breaking 2009 fiscal year which was
transformational for 5N Plus in many respects. From an operational standpoint,
fiscal 2009 was the year in which we completed our international expansion and
successfully commissioned our new German facility in Eisenhuttenstadt which
began shipments of solar grade products during the first quarter of the fiscal
year. This $18 million investment, our largest project ever, was completed on
time and within budget enabling us to better serve our European customers and
develop a platform for future growth. From a financial standpoint, fiscal 2009
was a record breaking year with sales, EBITDA and earnings all more than
doubling when compared to the previous fiscal year, in spite of the financial
turmoil and the difficult economic environment. This has allowed us to further
strengthen our balance sheet and cash position providing us with the
flexibility needed to implement our growth plan which calls for investments
aimed at positioning our firm as the leading electronic materials company
through diversification of our product offering and accretive acquisitions.
Fiscal year 2009 was also the year in which we truly became an international
company with operations and employees in two different countries. Interactions
and close collaboration between our two facilities has been a determining
factor in our ability to improve operational performance, sales and margins
and meet the growing demands of our customers."
    Mr. L'Ecuyer continued, "Although 2009 has been more difficult than
initially anticipated for the solar industry, we have continued to experience
an increasing demand for our solar grade products for most of the year. The
recent extension of our supply agreements with our key customer and their
corresponding commitments is perhaps the best example of this."    Mr.
L'Ecuyer concluded, "I would like to thank our employees for a truly
outstanding year as well as our shareholders for their confidence and
continuing support."
    The audited consolidated financial statements of 5N Plus, as well as the
Management's Report of fiscal year ended May 31, 2009 are available on the 5N
Plus website, at www.5nplus.com or at www.sedar.com

    Webcast Information

    The Company will host a conference call at 8:00 AM Eastern Time on
Thursday, August 13, 2009 with financial analysts to discuss the fourth
quarter and year ended May 31, 2009. All interested parties are invited to
participate to the live broadcast on the company's Web site at www.5nplus.com.
A replay of the webcast and a recording of the Q&A will be available until
August 27, 2009.

    About 5N Plus Inc.

    5N Plus draws its name from the purity of its products, 99.999% (five
nines or 5N) and more. 5N Plus, which has its head office in Montreal, Quebec,
develops and produces high-purity metals and compounds for electronic
applications and provides its customers with recycling solutions. The Company
is an integrated producer with both primary and secondary refining
capabilities. 5N Plus focuses on specialty metals such as tellurium, cadmium
and selenium and on related compounds such as cadmium telluride and cadmium
sulphide. The Company's products are critical precursors in a number of
electronic applications, including the rapidly-expanding solar (thin-film
photovoltaic) market, for which 5N Plus is a major supplier of cadmium
telluride, and the radiation detector market.

    
    --------------------------------------
    (1) EBITDA is a non-GAAP measure and means earnings before financing
        costs, interest income, income taxes, depreciation and amortization
        and is presented on a consistent basis from period to period. The
        definition of this non-GAAP measure used by the Company may differ
        from that used by other companies.

    (2) Backlog is a non-GAAP measure that represents the expected value of
        orders we have received but have not yet executed and that are
        expected to translate into sales within the next 12 months.


    5n Plus Inc.
    Consolidated Statements of Earnings
    Years ended May 31

    -------------------------------------------------------------------------
    (in Canadian dollars)                              2009            2008
                                                                  (Restated)
    -------------------------------------------------------------------------

    Sales                                     $  69,373,117   $  30,972,941
    Cost of sales                                34,174,231      14,649,152
                                             --------------------------------
    Gross profit                                 35,198,886      16,323,789

    Expenses
      Selling and administrative                  5,277,745       2,911,797
      Depreciation of property, plant and
       equipment                                  2,154,552       1,048,886
      Research and development                    1,241,142         930,232
      Foreign exchange gain                      (3,441,588)       (124,710)
      Financial                                     377,449         360,903
      Interest income                            (1,118,881)       (419,901)
                                             --------------------------------
                                                  4,490,419       4,707,207
                                             --------------------------------
    Earnings before undernoted items             30,708,467      11,616,582
    Start-up costs, new plant                       711,709       1,288,292
                                             --------------------------------
    Earnings before income taxes                 29,996,758      10,328,290
    Income taxes
      Current                                     7,727,016       3,395,315
      Future                                      1,401,618        (242,036)
                                             --------------------------------
                                                  9,128,634       3,153,279
                                             --------------------------------
    Net earnings                              $  20,868,124   $   7,175,011
    -------------------------------------------------------------------------
    Earnings per share
      Basic                                   $        0.46   $        0.20
      Diluted                                 $        0.45   $        0.19
    -------------------------------------------------------------------------
    Weighted average number of common shares
      Basic                                      45,505,213      35,308,641
      Diluted                                    45,876,122      36,884,776
    -------------------------------------------------------------------------


    5N Plus Inc.
    Consolidated Balance Sheets
    As at May 31

    -------------------------------------------------------------------------
    (in Canadian dollars)                              2009            2008
                                                                  (Restated)
    -------------------------------------------------------------------------
    Assets
    Current assets
      Cash and cash equivalents               $  65,066,530   $  59,576,743
      Accounts receivable                         6,702,197      10,164,562
      Inventories                                27,054,960      12,727,564
      Prepaid expenses and deposits                 516,391         348,504
      Foreign currency forward contracts          1,685,076               -
      Future income taxes                           249,958         686,207
                                             --------------------------------
                                                101,275,112      83,503,580
    Property, plant and equipment                26,178,423      21,220,889
    Grant receivable                                      -       2,053,377
    Future income taxes                             662,639         909,536
    Other assets                                     52,682          55,681
                                             --------------------------------
                                              $ 128,168,856   $ 107,743,063
                                             --------------------------------
    Liabilities and Shareholders' Equity
    Current liabilities
      Bank loan                               $           -   $   1,262,205
      Accounts payable and accrued
       liabilities                                6,791,675       7,486,227
      Income taxes payable                        3,021,632       1,754,114
      Current portion of long-term debt             549,922         578,922
      Current portion of other long-term
       liabilities                                   41,725         270,251
      Future income taxes                           311,897               -
                                             --------------------------------
                                                 10,716,851      11,351,719

    Long-term debt                                3,997,923       4,547,028
    Other long-term liabilities                           -         127,906
    Deferred revenue                                641,618         753,606
    Future income taxes                             443,700               -
                                             --------------------------------
                                                 15,800,092      16,780,259
    Shareholders' Equity
      Share capital                              81,881,914      81,788,694
      Contributed surplus                           797,800         242,136
      Accumulated other comprehensive income       (111,048)              -
      Retained earnings                          29,800,098       8,931,974
                                             --------------------------------
                                                112,368,764      90,962,804
                                             --------------------------------
                                              $ 128,168,856   $ 107,743,063
    -------------------------------------------------------------------------


    Reconciliation of EBITDA

                             ------------------------------------------------
                                         Three months ended May 31
    -------------------------------------------------------------------------
                                       2009            2008        Increase
                             ------------------------------------------------
    Net earnings              $   5,708,451   $   2,703,068           111.2 %
    Add (deduct):
    Income taxes                  2,345,056       1,109,535
    Financial expenses &
     Interest income                (78,822)       (193,590)
    Depreciation and
     amortization                   601,441         297,737
    -------------------------------------------------------------------------
    EBITDA                    $   8,576,126   $   3,916,750           119.0 %
    -------------------------------------------------------------------------

                             ------------------------------------------------
                                         Twelve months ended May 31
    -------------------------------------------------------------------------
                                       2009            2008        Increase
                             ------------------------------------------------
    Net earnings              $  20,868,124   $   7,175,011           190.8 %
    Add (deduct):
    Income taxes                  9,128,634       3,153,279
    Financial expenses &
     Interest income               (741,432)        (58,998)
    Depreciation and
     amortization                 2,154,552       1,048,886
    -------------------------------------------------------------------------
    EBITDA                    $  31,409,878   $  11,318,178           177.5 %
    -------------------------------------------------------------------------


    Cash Flows

                    ---------------------------------------------------------
                      Three months ended May 31  Twelve months ended May 31
                    ---------------------------------------------------------
                             2009          2008          2009          2008
    -------------------------------------------------------------------------
    Operating
     activities      $  4,965,655  $ (3,519,086) $ 16,239,645  $ (2,163,317)
    Financing
     activities          (756,927)   48,935,874    (2,257,973)   76,297,401
    Investing
     activities        (1,129,436)   (5,778,946)   (8,660,804)  (16,016,628)
    Effect of changes
     in foreign
     currency
     exchange            (200,325)       38,831       168,919       (67,645)
    -------------------------------------------------------------------------
    INCREASE IN CASH
     AND CASH
     EQUIVALENTS     $  2,878,967  $ 39,676,673  $  5,489,787  $ 58,049,811
    -------------------------------------------------------------------------


    Selected Annual Financial Information

    -------------------------------------------------------------------------
    YEARS ENDED MAY 31                 2009            2008            2007
    -------------------------------------------------------------------------

    CONSOLIDATED RESULTS
    Sales                     $  69,373,117   $  30,972,941   $  21,897,240
    EBITDA                    $  31,409,878   $  11,318,178   $   6,722,501
    Net earnings              $  20,868,124   $   7,175,011   $   3,574,082
    Net earnings per common
     share
      Basic                         $ 0.46           $ 0.20          $ 0.12
      Diluted                       $ 0.45           $ 0.19          $ 0.11
      Dividend per common
       share                             -          $ 0.034         $ 0.003

    BALANCE SHEET DATA
    Total assets              $ 128,168,856   $ 107,743,063   $  17,363,037
    Long-term debt            $   3,997,923   $   4,674,934   $   3,500,645
    Shareholders' equity      $ 112,368,764   $  90,962,804   $   7,546,467
    -------------------------------------------------------------------------


    2009 Selected Quarterly Financial Information
    (Unaudited)

                    ---------------------------------------------------------
                               Q4            Q3            Q2            Q1
    -------------------------------------------------------------------------
    Sales            $ 18,057,223  $ 19,150,195  $ 18,135,824  $ 14,029,875
    Gross profit     $  8,496,616  $  9,840,268  $  9,230,178  $  7,631,824
    EBITDA           $  8,576,126  $  8,012,408  $  8,798,520  $  6,022,824
    Net earnings     $  5,708,451  $  5,189,673  $  5,875,610  $  4,094,390

    Earnings per
     share
      Basic                $ 0.13        $ 0.11        $ 0.13        $ 0.09
      Diluted              $ 0.12        $ 0.11        $ 0.13        $ 0.09

    Backlog          $ 52,224,368  $ 52,024,064  $ 54,722,363  $ 53,646,727
    -------------------------------------------------------------------------
    




For further information:

For further information: Jacques L'Ecuyer, President and Chief Executive
Officer, 5N Plus Inc., (514) 856-0644, jacques.lecuyer@5nplus.com


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890