ADF Group inc. announces the results of the fiscal year ended January 31, 2007



    
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    2006-2007 Fiscal Year Highlights:

    - Revenues:           153% growth compared with last year.

    - Gross margin:       $16.5 million;
                          30.8% of revenues;
                          365% growth compared with last year.

    - Net income:         $10.4 million;
                          19% of revenues
                          437% growth compared with last year.

    - Return on Equity:   75%.

    - Order backlog:      $66.0 million on April 18, 2007.
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    TERREBONNE, QC, April 18 /CNW Telbec/ - ADF GROUP INC. ("ADF" or the
"Company") (TSX: DRX) posted profitable growth during the fiscal year ended
January 31, 2007, just one year after completing its major restructuring.
Quarter after quarter, ADF Group reached the targeted objectives and achieved
a return to operating profitability as of fiscal 2006-2007.
    For the fiscal year ended January 31, 2007, ADF generated contract
revenues totalling $53.6 million compared with $21.1 million the previous
fiscal year, representing a 153% growth. Our sales growth during 2006-2007 was
fuelled by our operations outside Canada, which represented 98% of revenues
generated by the fabrication of heavy and complex steel components.
    Gross margin increased by 365% compared with last year rising from
$3.6 million on January 31, 2006 to $16.5 million on January 31, 2007.
    ADF Group posted net earnings of $10.4 million ($0.36 basic earnings per
share and $0.35 diluted earnings per share), or 19% of revenues compared to
net earnings of $1.9 million ($0.07 basic and diluted per share) or 9% of
revenues on January 31, 2006, representing a 437% growth and a 75% return on
shareholders' equity as at January 31, 2007.
    Jean Paschini, chairman of the board and chief executive officer,
indicates "in fiscal 2006-2007, profitable growth was the year's goal, and it
was achieved. The contracts awarded yielded the anticipated profits. Building
on its strengths in engineering and fabrication, the new direction given in
2005 to the Company's business processes is focused above all on the
attainment of profitability. In targeting contracts, we gave priority to those
yielding higher potential profit margins and whose operational risk factors
are aligned with ADF's development strategy. All fabrication contracts signed
in 2006-2007 respected those selection criteria".
    The Company's order backlog rose from $ 22.3 million on January 31, 2006
to $66.0 million on April 18, 2007. During fiscal 2006-2007, the Company was
awarded contracts totalling more than $67.0 million. Since the beginning of
fiscal 2007-2008, ADF Group has been awarded more than $36.0 million in new
contracts in the U.S.A. and in Western Canada where the Company has effected
an initial breakthrough in the high-rise building sector.
    Owing to the increase of the backlog, plant personnel increased twofold
during fiscal 2006-2007. A total of 111 people joined ADF's ranks in 2006. In
addition as a result of fabrication contracts awarded since the beginning of
fiscal 2007-2008, the Company announced it was creating 100 permanent new jobs
at the Terrebonne fabrication plant.

    Outlook

    ADF Group will continue to focus its efforts on technically complex
fabrication contracts that enable the Company to stand apart from the
competition and leverage its industry know-how. At the same time, the company
will diversify into international markets through partnership opportunities,
which provide opportunities to grow the business, while maintaining
profitability.
    As reflected by our order backlog, we believe that demand in the airport
infrastructures and commercial buildings sectors, two sectors that are among
the Company's specialized niches, will remain solid in fiscal 2007-2008.
    In light of ADF Group's performance in 2006-2007, the expected sales
growth arising from the size of the backlog of signed orders on April 18, 2007
and the soundness of the Company's development strategy, we are quite
confident of our profitable growth outlook in fiscal 2007-2008.
    Jean Paschini, concludes "the 2006-2007 achievements are the result of
teamwork determined to bring ADF to the top. We are convinced that this
determination will reward the shareholders of ADF Group for their patience and
confidence in the Company".

    Annual Report

    The Company's annual report for the fiscal year ended January 31, 2007
will be available on May 1, 2007.

    Annual General Meeting

    The Annual General Meeting of Shareholders of ADF Group Inc. will be held
on Tuesday, June 12, 2007 at 11:00 am at the Omni Mont-Royal Hotel in
Montreal. The results of the first quarter ending April 30, 2007 will be also
be disclosed during the Company's Annual Meeting of Shareholders.

    ADF Group Inc. Ticker Symbol

    In December 2005, the TSX Group announced changes to trading symbols.
Since May 3, 2006, the stock symbol code of ADF Group Inc. subordinated-voting
shares listed on the Toronto Stock Exchange (S&P/TSX) is DRX.

    About ADF

    ADF Group Inc. is a North American leader in the design, engineering,
fabrication and selective installation of complex steel superstructures, as
well as in architectural metal work. ADF 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.


    
    CONSOLIDATED STATEMENTS OF INCOME
    ---------------------------------
    (In thousands of $, except
     per-share amounts)                        Fiscal Years Ended January 31

                                                            2007        2006
                                               ------------------------------
                                                               $           $
    Revenues                                              53,560      21,163
    Cost of goods sold                                    37,314      16,668
    -------------------------------------------------------------------------
    Gross margin before foreign exchange
     variation                                            16,246       4,495
    (Gain) loss on foreign exchange                         (261)        943
    -------------------------------------------------------------------------
    Gross margin                                          16,507       3,552
    Selling and administrative expenses                    5,368       4,984
    -------------------------------------------------------------------------
    Income (loss) from continuing operations
     before the undernoted items                          11,139      (1,432)
    Amortization
      Amortization of intangible assets                      726         966
      Amortization of property, plant and
       equipment                                           2,220       2,292
    -------------------------------------------------------------------------
                                                           2,946       3,258
    -------------------------------------------------------------------------
    Income (loss) from continuing operations
     before financial charges, unusual items
     and income taxes                                      8,193      (4,690)
    -------------------------------------------------------------------------
    Financial charges
      Interest on long-term debt                           1,499       2,136
      Interest income                                        (46)       (181)
      Other interest                                         717         554
    -------------------------------------------------------------------------
                                                           2,170       2,509
    -------------------------------------------------------------------------
    Income (loss) from continuing operations
     before unusual items and income taxes                 6,023      (7,199)
    -------------------------------------------------------------------------
    Unusual items
      Loss on claim                                            -      14,591
      Gain on forgiveness of interest                     (2,502)          -
      Loss (gain) on forgiveness of debt                     263     (27,586)
    -------------------------------------------------------------------------
                                                          (2,239)    (12,995)
    -------------------------------------------------------------------------
    Income from continuing operations, before
     income taxes                                          8,262       5,796
    -------------------------------------------------------------------------
    Income taxes
      Current                                                (30)        (12)
      Future                                              (1,017)          -
    -------------------------------------------------------------------------
                                                          (1,047)        (12)
    -------------------------------------------------------------------------
    Net income from continuing operations                  9,309       5,808
    Income (loss) from discontinued operations,
     net of taxes                                          1,112      (3,868)
    -------------------------------------------------------------------------
    Net income                                            10,421       1,940
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Basic earnings (loss) per share
      From continuing operations                            0.32        0.22
      From discontinued operations                          0.04       (0.15)
    -------------------------------------------------------------------------
                                                            0.36        0.07
    -------------------------------------------------------------------------
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    Diluted earnings (loss) per share
      From continuing operations                            0.31        0.22
      From discontinued operations                          0.04       (0.15)
    -------------------------------------------------------------------------
                                                            0.35        0.07
    -------------------------------------------------------------------------
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    Average number of outstanding shares
     (in thousands)                                       28,894      26,760
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    CONSOLIDATED STATEMENTS OF DEFICIT
    ----------------------------------
    (In thousands of $)                        Fiscal Years Ended January 31

                                                            2007        2006
                                               ------------------------------
                                                               $           $

    Deficit, beginning of year                          (118,709)   (120,649)
    Net income                                            10,421       1,940
    Shares issue expenses, net of taxes of
     $38,000                                                 (77)          -
    -------------------------------------------------------------------------
    Deficit, end of year                                (108,365)   (118,709)
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    CONSOLIDATED STATEMENTS OF CONTRIBUTED SURPLUS
    ----------------------------------------------
    (In thousands of $)                        Fiscal Years Ended January 31

                                                            2007        2006
                                               ------------------------------
                                                               $           $

    Contributed surplus, beginning of year                   273           -
    Employee stock options                                   144         111
    Warrants issue                                             -         162
    Maturity of warrants, net of taxes of
     $309,000                                              1,571           -
    -------------------------------------------------------------------------
    Contributed surplus, end of year                       1,988         273
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    CONSOLIDATED BALANCE SHEET
    --------------------------
    (In thousands $)                                        As at January 31

                                                            2007        2006
                                               ------------------------------
                                                               $           $
    ASSETS
      Current assets
        Cash and cash equivalents                          6,016         170
        Accounts receivable                                7,908      11,074
        Holdbacks on contracts                             3,519       2,311
        Contracts in progress                              2,178         214
        Inventories                                        3,278       4,087
        Prepaid expenses                                     874         639
        Future income tax assets                           1,000           -
        Current assets held for sale                           -         762
    -------------------------------------------------------------------------
                                                          24,773      19,257
    Long-term holdbacks on contracts                         880         906
    Property, plant and equipment                         30,521      31,780
    Intangible assets                                        382       1,081
    Other assets                                             168         275
    Long-term assets held for sale                             -         122
    -------------------------------------------------------------------------
                                                          56,724      53,421
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    LIABILITIES
      Current liabilities
        Credit facility                                        -       4,163
        Bank indebtedness                                    263         373
        Accounts payable and accrued charges               8,043      11,556
        Billings in excess of cost and recognized
         income on contracts in progress                   8,154       8,835
        Income taxes                                         104         422
        Current liabilities related to property
         held for sale                                         -       1,206
        Current portion of long-term debt                  2,606           -
    -------------------------------------------------------------------------
                                                          19,170      26,555

    Long-term debt                                        23,612      27,991
    -------------------------------------------------------------------------
                                                          42,782      54,546
    -------------------------------------------------------------------------
    Commitments and Contingencies

    Shareholders' equity
      Capital stock                                      120,319     117,311
      Contributed surplus                                  1,988         273
      Deficit                                           (108,365)   (118,709)
    -------------------------------------------------------------------------
                                                          13,942      (1,125)
    -------------------------------------------------------------------------
                                                          56,724      53,421
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    CONSOLIDATED STATEMENTS OF CASH FLOWS
    -------------------------------------
    (in thousands of $)                        Fiscal Years ended January 31

                                                            2007        2006
                                               ------------------------------
                                                               $           $
    OPERATING ACTIVITIES
      Net income from continuing operations                9,309       5,808
      Adjustments for:
        Amortization of property, plant and
         equipment                                         2,220       2,292
        Amortization of intangible assets                    726         966
        Amortization of other assets                          47          26
        Loss on claim                                          -      15,445
        Gain on disposal of property, plant
         and equipment                                        (7)        (31)
        Gain on forgiveness of debt and interest          (2,239)    (27,586)
        Non-cash exchange loss                                 -         770
        Future income taxes                               (1,017)          -
        Interest on convertible debenture                      -         221
        Warrant issue                                          -         162
        Stock option-based compensation                      144         111
    -------------------------------------------------------------------------
                                                           9,183      (1,816)
    -------------------------------------------------------------------------
    Changes in non-cash operating working
     capital items from continuing operations
      Accounts receivable                                  3,166      (5,183)
      Short-term and long-term holdbacks on
       contracts                                          (1,182)      1,861
      Contracts in progress                               (1,964)      1,752
      Inventories                                            809        (450)
      Income taxes                                          (318)        131
      Prepaid expenses                                      (235)       (217)
      Accounts payable and accrued charges                (1,011)        655
      Billings in excess of cost and recognized
       income on contracts in progress                      (681)      3,035
    -------------------------------------------------------------------------
                                                          (1,416)      1,584
    -------------------------------------------------------------------------
    Cash flows from operating activities of
     continuing operations                                 7,767        (232)
    Cash flows from operating activities of
     discontinued operations                              (1,002)     (3,944)
    -------------------------------------------------------------------------
                                                           6,765      (4,176)
    -------------------------------------------------------------------------
    INVESTING ACTIVITIES
      Acquisition of property, plant and
       equipment                                            (924)       (509)
      Acquisition of intangible assets                       (27)          -
      Proceeds from disposal of property, plant
       and equipment                                           7         347
      Decrease (increase) in other assets                     60        (170)
    -------------------------------------------------------------------------
    Cash flows from investing activities of
     continuing operations                                  (884)       (332)
    Cash flows from investing activities of
     discontinued operations                               1,538       1,246
    -------------------------------------------------------------------------
                                                             654         914
    -------------------------------------------------------------------------
    FINANCING ACTIVITIES
      Repayment of convertible debenture                       -        (300)
      Repayment of bank indebtedness                        (373)     (1,381)
      (Repayment of) increase in credit facility          (4,163)      4,163
      Increase in long-term debt                             564           -
      Repayment of long-term debt                           (723)        (45)
      Share issue                                          3,122           -
    -------------------------------------------------------------------------
    Cash flows from financing activities of
     continuing operations                                (1,573)      2,437
    Cash flows from financing activities of
     discontinued operations                                   -         605
    -------------------------------------------------------------------------
                                                          (1,573)      3,042
    -------------------------------------------------------------------------
    Net cash inflow (outflow)                              5,846        (220)
    Cash and cash equivalents, at beginning of
     year                                                    170         390
    -------------------------------------------------------------------------
    Cash and cash equivalents, at end of the
     year                                                  6,016         170
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Supplemental cash flows information
      Income taxes paid (recovery) on
       continuing operations                                   -        (161)
      Interest paid on continuing operations               2,289       1,195
      Non-cash financing and investing
       activities:
        Repayment of debenture by controlling
         shareholders                                          -         675
        Share issue in consideration of
         advances to controlling shareholders              1,651           -
        Assets acquired under a capital lease                 37           -
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    SEGMENTED REPORTING
    ---------------------------------------

    The Company operates in the non-residential construction sector, primarily
in Canada and the United States. Its operations include the design,
engineering, fabrication and installation of complex steel structures, as well
as architectural metal works. Up to June 2005, the Company was also involved
in the distribution of bolts and metal fasteners, which are included in
discontinued operations.

                                                2007                    2006
                                ---------------------------------------------
                                            Property,               Property,
                                           plant and               plant and
                                Revenues   equipment    Revenues   equipment
                                ---------------------------------------------
                                       $           $           $           $
    Continuing operations
      Canada                       1,301      30,331       4,532      31,531
      United States               48,861         190      16,129         249
      Trinidad                     3,160           -           -           -
      Other countries                238           -         502           -
    -------------------------------------------------------------------------
                                  53,560      30,521      21,163      31,780
    -------------------------------------------------------------------------
    Discontinued operations
      Canada                       2,748           -       6,790        116
      United States                    -           -          17          -
      Trinidad                         -           -           -          -
      Other countries                  -           -           -          -
    -------------------------------------------------------------------------
                                   2,748           -       6,807        116
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    During the fiscal year ended January 31, 2007, the Company made 64% of its
sales to two (2) clients, each of which accounted for more than 10% of
revenues.
    
    %SEDAR: 00011963EF




For further information:

For further information: Jean Paschini, Chairman of the Board and Chief
Executive Officer; Louis Potvin, Chief Financial Officer, (450) 965-1911,
1-800-263-7560; www.adfgroup.com; Source: ADF Group Inc.


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