5N Plus Inc. Reports Fourth Quarter Results and Record Sales for Fiscal Year
2010

MONTREAL, Aug. 10 /CNW Telbec/ - 5N Plus Inc. (TSX: VNP) today reported financial results for its fourth quarter and fiscal year ended May 31, 2010 including record levels of sales for the fiscal year.

For a second consecutive quarter, sales reached a record level and stood at $19,729,553, representing an increase of 9.3% over sales of $18,057,223 for the fourth quarter of the previous fiscal year. Sales for the fiscal year ended May 31, 2010 were at a record level of $70,763,345, an increase of 2.0% compared to sales of $69,373,117 for the previous fiscal year. The backlog(1) of orders expected to translate into sales over the following twelve months stood at $52,650,764 at the fiscal year end over its level of $52,224,368 at the end of the previous fiscal year. Changes in currency exchange rates had an adverse impact of approximately $4,300,000 on the backlog comparisons.

Net earnings from continuing operations for the fourth quarter were $4,362,612 or $0.10 per share, representing a 23.6% decrease compared to net earnings from continuing operations of $5,708,451 or $0.13 per share for the fourth quarter of the previous fiscal year. For the fiscal year ended May 31, 2010, net earnings from continuing operations were $15,143,310 or $0.33 per share, representing a decrease of 27.4% compared to net earnings of $20,868,124 or $0.46 per share for the previous fiscal year.

EBITDA(2) for the fourth quarter was $6,742,096 representing a decrease of 21,4% compared to EBITDA of $8,576,126 for the fourth quarter of the previous fiscal year. EBITDA reached $24,109,939 for the fiscal year ended May 31, 2010, a decrease of 23.2% compared to EBITDA of $31,409,878 for the previous fiscal year.

Cash flow provided by continuing operating activities was $6,188,039 for the quarter and $16,828,300 for the fiscal year ended May 31, 2010. This compares with cash flow provided by continuing operating activities of $4,965,655 and $16,239,645 for the corresponding periods of the previous fiscal year. Cash and cash equivalents increased by $2,925,791 during the fiscal year to $67,992,321 as at May 31, 2010, up from $65,066,530 as at May 31, 2009. Shareholders' equity also increased during the fiscal year to $125,678,537 as at May 31, 2010, up from $112,368,764 one year earlier.

Jacques L'Écuyer, President and Chief Executive Officer, said "We are pleased to report our fourth quarter and year-end results as we complete our 10th year of operation in which there is much to celebrate. The quarter and the year proved decisive for our flagship product cadmium telluride as our main customer continued to expand and demonstrate a significant cost advantage over competing technologies leading in turn to an increasing demand for our products. Despite some currency headwinds, we turned in record revenues in fiscal year 2010 and net profit margins exceeded 20% for a third consecutive year as our facility in Germany operated for the first time throughout the year and contributed accordingly to both our sales and net profits. We have also seen a positive contribution from our new subsidiary Firebird which turned in positive earnings in both quarters since joining us."

Mr. L'Écuyer continued, "In the year ended, we have laid the foundation for sustainable growth as we made great strides to strengthen our business, leverage our existing facilities and position ourselves to play a larger role in recycling. At the same time, we also broadened our product portfolio to include semiconductor wafers, germanium and products for other thin-film photovoltaic technologies as we successfully completed the acquisition of Firebird Technologies".

Mr. L'Écuyer concluded, "All of these accomplishments would not have been possible without the support and dedication of our employees. Many thanks to them again for another great year and a special welcome to the Firebird employees who not only recently joined the 5N Plus team but also managed to make a positive contribution to our financial results."

The audited consolidated financial statements of 5N Plus, as well as the Management's Report for the fiscal year ended May 31, 2010 are available on the 5N Plus website, at www.5nplus.com and at www.sedar.com

Webcast Information

The Company will host a conference call at 10:00 AM Eastern Time on Wednesday, August 11, 2010 with financial analysts to discuss the fourth quarter and year ended May 31, 2010 results. All interested parties are invited to participate in 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 26, 2010.

About 5N Plus Inc.

5N Plus Inc. draws its name from the purity of its products, 99.999% (five nines or 5N) and more. We have our head office in Montreal, Québec, and own two material subsidiaries which are 5N PV GmbH located in Eisenhuttenstadt, Germany and Firebird Technologies Inc. located in Trail, Canada. 5N Plus is a fully integrated producer and closed-loop recycler of highly purified metals and compounds. We use a range of proprietary and proven technologies to produce metals such as tellurium, cadmium, germanium, indium, antimony, selenium and related compounds such as cadmium telluride ("CdTe"), cadmium sulphide ("CdS") and indium antimonide ("InSb"). Our products are critical precursors that customers use in a number of electronic applications, including the rapidly-expanding solar (thin-film photovoltaic) market, for which we are a major supplier of CdTe, as well as the radiation detector and infrared markets.

Forward-Looking Statements and Disclaimer

Certain statements in this press release may be forward-looking. Forward-looking statements are based on the best estimates available to the Company at the time and involve known and unknown risks, uncertainties or other factors that may cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements in order to account for any new information or any other event. The reader is warned against undue reliance on these forward- looking statements.

    
    ---------------
    (1) 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.

    (2) EBITDA is a non-GAAP measure and means earnings from continued
        operations 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.



    5N Plus Inc.
    Consolidated Statements of Income
    Years ended May 31

    (in Canadian dollars)                              2010            2009
    -------------------------------------------------------------------------
                                                          $               $

    Sales                                        70,763,345      69,373,117
    Cost of sales                                38,910,641      34,174,231
    -------------------------------------------------------------------------
    Gross profit                                 31,852,704      35,198,886
    Expenses
      Selling and administrative                  7,068,705       5,277,745
      Depreciation of property, plant and
       equipment                                  2,544,542       2,154,552
      Amortization of intangible assets             188,249               -
      Research and development                    1,858,038       1,241,142
      Foreign exchange (gain) loss               (1,183,978)     (3,441,588)
      Financial                                     185,512         377,449
      Interest income                              (463,678)     (1,118,881)
    -------------------------------------------------------------------------
                                                 10,197,390       4,490,419
    -------------------------------------------------------------------------
    Earnings before undernoted items             21,655,314      30,708,467
    Start-up costs, new plant                             -         711,709
    -------------------------------------------------------------------------
    Earnings before income taxes from
     continuing operations                       21,655,314      29,996,758
    Income taxes                                  6,512,004       9,128,634
    -------------------------------------------------------------------------
    Net earnings from continuing operations      15,143,310      20,868,124
    -------------------------------------------------------------------------
    Net loss from discontinued operations          (495,770)              -
    -------------------------------------------------------------------------
    Net earnings                                 14,647,540      20,868,124
                                             --------------------------------
                                             --------------------------------

    Earnings per share from continuing
     operations
      Basic                                            0.33            0.46
      Diluted                                          0.33            0.45

    Earnings per share
      Basic                                            0.32            0.46
      Diluted                                          0.32            0.45

    Weighted average number of common shares
      Basic                                      45,578,992      45,505,213
      Diluted                                    45,833,291      45,876,122
    -------------------------------------------------------------------------


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

    (in Canadian dollars)                              2010            2009
    -------------------------------------------------------------------------
                                                          $               $
    Assets
    Current assets
      Cash and cash equivalents                  67,992,321      65,066,530
      Accounts receivable                         4,774,460       6,702,197
      Inventories                                27,705,149      27,054,960
      Prepaid expenses                            1,073,025         516,391
      Derivative financial instruments            1,362,804       1,685,076
      Income taxes recoverable                      516,602               -
      Future income taxes                           150,598         249,958
    -------------------------------------------------------------------------
                                                103,574,959     101,275,112
    Property, plant and equipment                26,437,302      25,823,473
    Intangible assets                             1,770,913         354,950
    Goodwill                                      4,381,762               -
    Future income taxes                           2,311,191         662,639
    Other assets                                     45,181          52,682
    -------------------------------------------------------------------------
                                                138,521,308     128,168,856
                                             --------------------------------
                                             --------------------------------

    Liabilities and Shareholders' Equity
    Current liabilities
      Accounts payable and accrued liabilities    4,646,220       6,791,675
      Income taxes payable                           43,826       3,021,632
      Current portion of long-term debt             622,820         549,922
      Current portion of other long-term
       liabilities                                        -          41,725
      Future income taxes                           444,662         311,897
    -------------------------------------------------------------------------
                                                  5,757,528      10,716,851
    Long-term debt                                4,197,803       3,997,923
    Deferred revenue                                553,578         641,618
    Future income taxes                           2,333,862         443,700
    -------------------------------------------------------------------------
                                                 12,842,771      15,800,092
    -------------------------------------------------------------------------
    Shareholders' equity
      Share capital                              82,389,870      81,881,914
      Contributed surplus                         1,372,523         797,800
      Accumulated other comprehensive income     (2,531,494)       (111,048)
      Retained earnings                          44,447,638      29,800,098
    -------------------------------------------------------------------------
                                                125,678,537     112,368,764
    -------------------------------------------------------------------------
                                                138,521,308     128,168,856
                                             --------------------------------
                                             --------------------------------

    5N Plus Inc.
    Reconciliation of EBITDA

                                          Three months ended May 31
    -------------------------------------------------------------------------
                                       2010            2009       (Decrease)
    -------------------------------------------------------------------------
    Net earnings from continuing
     operations                 $ 4,362,612     $ 5,708,451          (23.6%)
    Add (deduct):
    Income taxes                  1,734,901       2,345,056
    Financial expenses &
     Interest income                (60,442)        (78,822)
    Depreciation and
     amortization                   705,025         601,441
    -------------------------------------------------------------------------
    EBITDA                      $ 6,742,096     $ 8,576,126          (21.4%)
                              -----------------------------------------------
                              -----------------------------------------------

                                          Twelve months ended May 31
    -------------------------------------------------------------------------
                                       2010            2009       (Decrease)
    -------------------------------------------------------------------------
    Net earnings from continuing
     operations                $ 15,143,310    $ 20,868,124          (27.4%)
    Add (deduct):
    Income taxes                  6,512,004       9,128,634
    Financial expenses &
     Interest income               (278,166)       (741,432)
    Depreciation and
     amortization                 2,732,791       2,154,552
    -------------------------------------------------------------------------
    EBITDA                     $ 24,109,939    $ 31,409,878          (23.2%)
                              -----------------------------------------------
                              -----------------------------------------------


    5N Plus Inc.
    Cash Flows

                      Three months ended May 31  Twelve months ended May 31
    -------------------------------------------------------------------------
                             2010          2009          2010          2009
    -------------------------------------------------------------------------
    Cash flow
     provided by
     continuing
     operating
     activities       $ 6,188,039   $ 4,965,655  $ 16,828,300  $ 16,239,645
    Investing
     activities          (784,603)   (1,129,436)  (12,577,665)   (8,660,804)
    Financing
     activities          (169,334)     (756,927)     (295,299)   (2,257,973)
    Effect of foreign
     exchange rate
     changes on cash
     and cash
     equivalents         (280,794)     (200,325)     (533,775)      168,919
    -------------------------------------------------------------------------
    Net increase in
     cash and cash
     equivalents from
     continuing
     activities       $ 4,953,308   $ 2,878,967   $ 3,421,561   $ 5,489,787
                     --------------------------------------------------------
                     --------------------------------------------------------
    

SOURCE 5N Plus Inc.

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


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