5N Plus Incorporated Reports Third Quarter Results on Record Sales



    MONTREAL, April 7 /CNW Telbec/ - 5N Plus Inc. (TSX: VNP) today announced
financial results for its third quarter ended February 28, 2009. Results
continued to reflect a trend of strong financial performance with sales
reaching record levels for a sixth consecutive quarter lying at $19,150,195 up
by 129.1% compared with sales of $8,358,817 for the third quarter of the
previous fiscal year. Net earnings for the third quarter increased by 125.0%
to $5,103,971 ($0.11 per share) up from $2,268,712 ($0.06 per share) when
compared with the third quarter of the previous fiscal year and EBITDA(1) by
139.9% to $8,066,290 up from $3,362,649.
    For the nine month period ended February 28, 2009, sales increased to
$51,315,894, net earnings to $15,248,093 ($0.34 per share) and EBITDA(1) to
$23,543,304. This represents increases of 138.1%, 232.4% and 203.5%
respectively over results for the corresponding period of the previous fiscal
year where sales reached $21,549,033, net earnings $4,587,516 ($0.14 per
share) and EBITDA $7,757,723.
    "We are pleased to report the results of the third quarter of our 2009
fiscal year. Despite the current economic turmoil, we managed to increase
sales and maintain profit margins at high levels. Operational performance was
good throughout the quarter at both of our facilities in Montreal and
Eisenhuttenstadt and our twelve month backlog of orders remained strong at
$52,024,064" commented Mr. Jacques L'Ecuyer, President and Chief Executive
Officer.
    He added, "We continue to monitor closely the impact of the current
economic crisis on our business and our customers. Given our strong balance
sheet and the ability of our operating activities to generate significant cash
flows, we believe that we are well positioned to overcome any slowdown in the
market and take advantage of growth opportunities."
    The interim consolidated financial statements of 5N Plus, as well as the
Management's Discussion and Analysis of this third quarter ended February 28,
2009 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 April 8, 2009 with financial analysts to discuss the third 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 April 22, 2009.

    Forward-Looking Statements

    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.

    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.


    5N Plus Inc.
    Interim Consolidated Statements of Earnings
    Periods ended February 28, 2009 and February 29, 2008
    (unaudited)
                                 Three months                Nine months
    -------------------------------------------------------------------------
    (in Canadian
     dollars)                 2009          2008          2009          2008
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Sales             $ 19,150,195  $  8,358,817  $ 51,315,894  $ 21,549,033
    Cost of sales        9,309,927     3,904,679    24,613,624    10,841,082
                     --------------------------------------------------------
    Gross profit         9,840,268     4,454,138    26,702,270    10,707,951

    Expenses
      Selling and
       administrative    1,343,814       827,715     3,606,876     2,008,283
      Research and
       development         333,238       203,008       817,865       864,384
      Foreign exchange
       (gain) loss          96,926        60,766    (1,265,775)       77,561
      Financial            130,812        51,196       333,706       303,811
      Interest income     (227,205)     (169,219)     (996,316)     (169,219)
      Depreciation of
       property, plant
       and equipment       603,077       266,980     1,553,111       751,149
      Amortization of
       deferred start-
       up costs            172,912             -       380,356             -
                     --------------------------------------------------------
                         2,453,574     1,240,446     4,429,823     3,835,969
                     --------------------------------------------------------
    Earnings before
     undernoted items    7,386,694     3,213,692    22,272,447     6,871,982
    Start-up costs,
     new plant                   -        22,421       206,390       195,777
                     --------------------------------------------------------
    Earnings before
     income taxes        7,386,694     3,191,271    22,066,057     6,676,205
    Income taxes
      Current            2,248,822     1,021,559     6,324,095     2,062,689
      Future                33,901       (99,000)      493,869        26,000
                     --------------------------------------------------------
                         2,282,723       922,559     6,817,964     2,088,689
                     --------------------------------------------------------
    Net earnings      $  5,103,971  $  2,268,712  $ 15,248,093  $  4,587,516
    -------------------------------------------------------------------------
    Earnings per share
      Basic           $       0.11  $       0.06  $       0.34  $       0.14
      Diluted         $       0.11  $       0.06  $       0.33  $       0.13
    -------------------------------------------------------------------------
    Weighted average
     number of common
     shares
      Basic             45,505,413    39,006,408    45,501,804    32,748,039
      Diluted           45,815,527    39,996,036    45,889,182    34,595,195
    -------------------------------------------------------------------------


    5N Plus Inc.
    Interim Consolidated Balance Sheets
                                                  ---------------------------
                                                       As at         As at
                                                    February 28,     May 31,
                                                        2009          2008
    (in Canadian dollars)                            (unaudited)
    -------------------------------------------------------------------------
    Assets
    Current assets
      Cash and cash equivalents                   $ 62,187,563  $ 59,576,743
      Accounts receivable                            5,234,040    10,164,562
      Inventories                                   27,942,334    12,727,564
      Prepaid expenses and deposits                    749,407       348,504
      Future income taxes                              174,000       456,325
                                                -----------------------------
                                                    96,287,344    83,273,698
    Property, plant and equipment                   26,229,667    21,220,889
    Grant receivable                                 2,135,682     2,053,377
    Future income taxes                                735,540       909,536
    Deferred start-up costs                            978,504       821,008
    Other assets                                        52,682        55,681
                                                -----------------------------
                                                 $ 126,419,419 $ 108,334,189
                                                -----------------------------
    Liabilities and Shareholders' Equity
    Current liabilities
      Bank loan                                  $     616,111 $   1,262,205
      Accounts payable and accrued liabilities      10,040,271     7,486,227
      Income taxes payable                           2,443,427     1,754,114
      Current portion of long-term debt                549,922       578,922
      Current portion of other long-term
       liabilities                                      48,371       270,251
                                                -----------------------------
                                                    13,698,102    11,351,719

    Long-term debt                                   4,147,893     4,547,028
    Deferred revenue                                   707,871       753,606
    Other long-term liabilities                              -       127,906
                                                -----------------------------
                                                    18,553,866    16,780,259

    Shareholders' Equity
      Share capital                                 81,838,589    81,788,694
      Contributed surplus                              638,579       242,136
      Accumulated other comprehensive income           617,192             -
      Retained earnings                             24,771,193     9,523,100
                                                -----------------------------
                                                   107,865,553    91,553,930
                                                -----------------------------
                                                 $ 126,419,419 $ 108,334,189
    -------------------------------------------------------------------------


    Reconciliation of EBITDA and Net Earnings
    (in Canadian dollars)
    -------------------------------------------------------------------------
                                                   Three months ended
    -------------------------------------------------------------------------
                                     February 28   February 29      Increase
                                            2009          2008
    -------------------------------------------------------------------------
    Net earnings                    $  5,103,971  $  2,268,712         125.0%
    Add (deduct):
    Income taxes                       2,282,723       922,559
    Financial expenses(1)
    & Interest income                    (96,393)     (118,023)
    Depreciation and amortization        775,989       266,980
    Expensed start-up costs                    -        22,421
    EBITDA                          $  8,066,290  $  3,362,649         139.9%
    -------------------------------------------------------------------------

                                   ------------------------------------------
                                                  Nine months ended
                                   ------------------------------------------

                                     February 28   February 29      Increase
                                            2009          2008
                                   ------------------------------------------
    Net earnings                    $ 15,248,093  $  4,587,516         232.4%
    Add (deduct):
    Income taxes                       6,817,964     2,088,689
    Financial expenses(1)
    & Interest income                   (662,610)      134,592
    Depreciation and amortization      1,933,467       751,149
                                         206,390       195,777
                                    $ 23,543,304  $  7,757,723         203.5%
    -------------------------------------------------------------------------
    (1) The foreign exchange gain or loss is presented independently from the
        financial expenses. This presentation differs from those of previous
        management's discussion and analysis.


    Cash Flow
    (in Canadian dollars)
                       ------------------------------------------------------
                              Three months             Nine months ended
                       ------------------------------------------------------
                        February 28  February 29   February 28   February 29
                              2009          2008          2009          2008
    -------------------------------------------------------------------------
    Operating
     activities(1)    $  6,031,131  $  3,355,047  $ 18,036,904  $  6,327,809
    Add (deduct):
    net change in
     non-cash working
     capital items        (243,510)   (1,337,441)   (5,915,981)   (4,122,290)
                       ------------------------------------------------------
    Operating
     activities (total)  5,787,621     2,017,606    12,120,923     2,205,519
    Financing
     activities         (2,588,088)   22,640,236    (1,501,046)   26,405,301
    Investing
     activities         (1,550,910)   (4,652,313)   (8,034,530)  (10,237,682)
    Effect of changes
     in foreign
     currency exchange      10,705             -        25,473             -
                       ------------------------------------------------------
    Increase (decrease)
     in cash and cash
     equivalents       $ 1,659,328  $ 20,005,529  $  2,610,820  $ 18,373,138
    -------------------------------------------------------------------------
    (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


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