5N Plus Inc. Reports Record Sales and Net Earnings for the Second Quarter Ended November 30, 2008



    MONTREAL, Jan. 13 /CNW Telbec/ - 5N Plus Inc. (TSX: VNP) today announced
financial results for the second quarter of fiscal 2009 ended November 30,
2008. Results continued to reflect a trend of strong financial performance
with net earnings, sales and EBITDA(1) all reaching record levels. Net
earnings for the second quarter of 2009 were of $5,815,037 ($0.13 per share),
which represents a 376.8% increase over net earnings of $1,219,548 ($0.04 per
share) for the second quarter of the previous fiscal year. Sales for the
second quarter were of $18,135,824 up by 166.9% compared with sales of
$6,795,743 for the second quarter of the previous fiscal year. EBITDA
increased by 282.0% in the second quarter to $8,871,494 up from $2,322,589
during the second quarter of the previous fiscal year.
    For the six month period ended November 30, 2008, net earnings increased
by 337.5% to $10,144,122 ($0.22 per share) and sales by 143.9% to $32,165,699.
This compares with net earnings of $2,318,804 ($0.08 per share) and sales of
$13,190,216 for the same period of the previous fiscal year. EBITDA also
increased during the six month period ended November 30, 2008 to $15,477,014
up by 252.1% from $4,395,074 for the corresponding period of the previous
fiscal year.
    "We are pleased to report the results of the second quarter of our 2009
fiscal year which has been characterized by continuing growth and record level
profitability. This reflects the strong operational performance now at both of
our facilities and the increasing demand for our products. In spite of the
current financial world crisis, demand for our products remained strong during
the quarter as we managed to increase sales and further strengthen our twelve
month backlog of orders to a record level of $54,722,363 as at November 30,
2008. The current quarter was the first throughout which our German facility
was fully operational and we are extremely pleased by its performance and the
rapid ramp up in production capacity that has been achieved there" commented
Mr. Jacques L'Ecuyer, President and Chief Executive Officer.
    He added, "We approved soon after the closing of the quarter a normal
course issuer bid as we believe that the underlying value of 5N Plus may not
be reflected in the market price of our common shares. Consequently we
estimate that the repurchase of our shares under certain conditions may
constitute an appropriate use of our financial resources and be beneficial to
5N Plus and its shareholders".
    Mr. L'Ecuyer concluded, "We are monitoring closely the impact of the
current financial turbulences on our customers and business. We are confident
that we have both the operational and financial flexibility to make the
necessary adjustments in our operating practices if the situation warrants.
Furthermore, we continue to believe that our strong balance sheet with cash
and cash equivalents of over $60 million and our ability to generate positive
cash flows position us uniquely to take advantage of both organic growth and
in particular accretive acquisitions opportunities".
    The interim consolidated financial statements of 5N Plus, as well as
Management's Discussion and Analysis of this second quarter ended November 30,
2008 are available on the 5N Plus website, at www.5nplus.com and on the SEDAR
website at www.sedar.com.

    Webcast Information

    The Company will host a conference call at 10:00 Eastern Time on
Wednesday January 14, 2009 with financial analysts to discuss the second
quarter results. 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 January 28, 2009.

    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.

    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 not defined by Canadian generally accepted accounting
    principles and cannot be formally presented in financial statements.
    EBITDA means earnings before financing costs, interest income, income
    taxes, depreciation and amortization and start-up costs. The
    definition of EBITDA used by the Company may differ from that used by
    other companies. Please see management's discussion and analysis for
    more details.

    
    Interim Consolidated Statements of Earnings
    Periods ended November 30, 2008 and 2007

    (unaudited)                  Three months                 Six months
    -------------------------------------------------------------------------
    (in Canadian dollars)     2008          2007          2008          2007
    -------------------------------------------------------------------------

    Sales              $18,135,824   $ 6,795,743   $32,165,699   $13,190,216
    Cost of goods sold   8,905,646     3,519,364    15,303,697     6,936,403
                       ------------------------------------------------------
    Gross profit         9,230,178     3,276,379    16,862,002     6,253,813

    Expenses
      Selling and
       administrative    1,075,795       708,607     2,263,062     1,180,568
      Research and
       development         259,415       249,661       484,627       661,376
      Foreign exchange
       (gain) loss        (976,526)       (4,478)   (1,362,701)       16,795
      Financial            118,006       137,121       202,894       252,615
      Interest income     (359,934)            -      (769,111)            -
      Depreciation of
       property, plant
       and equipment       576,682       242,867       950,034       484,169
      Amortization of
       deferred start-up
       costs               157,103             -       207,444             -
                       ------------------------------------------------------
                           850,541     1,333,778     1,976,249     2,595,523
                       ------------------------------------------------------
    Earnings before
     undernoted items    8,379,637     1,942,601    14,885,753     3,658,290
    Start-up costs,
     new plant                   -       102,015       206,390       173,356
                       ------------------------------------------------------
    Earnings before
     income taxes        8,379,637     1,840,586    14,679,363     3,484,934
    Income taxes
      Current            2,331,449       567,038     4,075,273     1,041,130
      Future               233,151        54,000       459,968       125,000
                       ------------------------------------------------------
                         2,564,600       621,038     4,535,241     1,166,130
                       ------------------------------------------------------
    Net earnings       $ 5,815,037   $ 1,219,548   $10,144,122   $ 2,318,804
    -------------------------------------------------------------------------
    Earnings per share
      Basic            $      0.13   $      0.04   $      0.22   $      0.08
      Diluted          $      0.13   $      0.04   $      0.22   $      0.07
    -------------------------------------------------------------------------
    Weighted average
     number of
     common shares
      Basic             45,500,000    29,635,954    45,500,000    29,635,954
      Diluted           45,721,205    31,909,531    45,926,010    31,909,531
    -------------------------------------------------------------------------



    5N Plus inc.                             As at November 30, As at May 31,
    Interim Consolidated Balance Sheets                   2008          2008
    (in Canadian dollars)                           (unaudited)
    -------------------------------------------------------------------------

    Assets
    Current assets
      Cash and cash equivalents                   $ 60,528,235  $ 59,576,743
      Accounts receivable                            6,772,128    10,164,562
      Inventories                                   23,122,482    12,727,564
      Prepaid expenses and deposits                    394,990       348,504
      Future income taxes                              120,000       456,325
                                                 ----------------------------
                                                    90,937,835    83,273,698
    Property, plant and equipment                   25,850,925    21,220,889
    Grant receivable                                 2,084,972     2,053,377
    Future income taxes                                800,821       909,536
    Deferred start-up costs                          1,076,280       821,008
    Other assets                                        52,682        55,681
                                                 ----------------------------
                                                  $120,803,515  $108,334,189
                                                 ----------------------------

    Liabilities and Shareholders' Equity
    Current liabilities
      Bank loan                                   $  2,956,610  $  1,262,205
      Accounts payable and accrued liabilities       8,844,149     7,486,227
      Income taxes payable                           1,094,121     1,754,114
      Current potion of long-term debt                 547,333       578,922
      Current portion of other long-
       term liabilities                                108,984       270,251
                                                 ----------------------------
                                                    13,551,197    11,351,719

    Long-term debt                                   4,275,340     4,547,028
    Other long-term liabilities                              -       127,906
    Deferred revenue                                   730,983       753,606
                                                 ----------------------------
                                                    18,557,520    16,780,259

    Shareholders' Equity
      Share capital                                 81,788,694    81,788,694
      Contributed surplus                              520,623       242,136
      Accumulated other comprehensive income           269,456             -
      Retained earnings                             19,667,222     9,523,100
                                                 ----------------------------
                                                   102,245,995    91,553,930
                                                 ----------------------------
                                                  $120,803,515  $108,334,189
    -------------------------------------------------------------------------


    Reconciliation of EBITDA and Net Earnings
    (in Canadian dollars)

    -------------------------------------------------------------------------
                                              Three months ended November 30
    -------------------------------------------------------------------------
                                               2008         2007    Increase

    Net earnings                        $ 5,815,037  $ 1,219,548       376.8%

    Add (deduct):

    Income taxes                          2,564,600      621,038

    Financial expenses(1) &
     Interest income                       (241,928)     137,121

    Depreciation and amortization           733,785      242,867

    Start-up costs, new plant                     -      102,015
                                     -----------------------------
    EBITDA                              $ 8,871,494  $ 2,322,589       282.0%
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
                                                Six months ended November 30
    -------------------------------------------------------------------------
                                               2008         2007    Increase

    Net earnings                        $10,144,122  $ 2,318,804       337.5%

    Add (deduct):

    Income taxes                          4,535,241    1,166,130

    Financial expenses(1) &
     Interest income                       (566,217)     252,615

    Depreciation and amortization         1,157,478      484,169

    Start-up costs, new plant               206,390      173,356
                                     -----------------------------
    EBITDA                              $15,477,014  $ 4,395,074       252.1%
    -------------------------------------------------------------------------
    (1) The foreign exchange gain or loss is presented independently from the
        financial expenses. This presentation differs from those of previous
        quarters.


    Cash Flow
    (in Canadian dollars)

    -------------------------------------------------------------------------
                              Three months ended           Six months ended
                                  November 30                 November 30
                              2008          2007          2008          2007
    -------------------------------------------------------------------------
    Operating
     activities (1)    $ 6,927,426   $ 1,522,557   $12,005,773   $ 2,979,654
    Add (deduct):
    Net change in
     non-cash working
     capital items       2,864,639      (644,346)   (5,672,471)   (2,784,849)
                       ------------------------------------------------------
    Operating
     activities          9,792,065       878,211     6,333,302       194,805
    Financing
     activities          1,730,328     1,867,982     1,087,042     3,758,173
    Investing
     activities         (1,188,946)   (4,787,578)   (6,483,620)   (5,585,369)
    Effect of changes
     in foreign
     exchange rate
     on cash                14,768             -        14,768             -
                       ------------------------------------------------------
    Increase (decrease)
     in cash and cash
     equivalents        10,348,215    (2,041,385)      951,492    (1,632,391)
    Cash and cash
     equivalents,
     beginning of
     period             50,180,020     1,935,926    59,576,743     1,526,932
                       ------------------------------------------------------
    Cash and cash
     equivalents, end
     of period         $60,528,235   $  (105,459)  $60,528,235   $  (105,459)
    -------------------------------------------------------------------------
    (1) Before net change in non-cash working capital items
    




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