ADS posts revenues of $15.3 million for its second quarter ended July 29, 2007



    
               This represents growth of almost 15% in revenues
                    compared to the same period last year

    Highlights
    ----------

    - Revenues of $15.3 million during the second quarter, an increase of
      $2 million, for growth of almost 15%;
    - The acquisition of Beckwith Bemis' assets generates additional sales of
      $1.6 million during the quarter, and is expected to bring in sales of
      $12 million on an annual basis;
    - Before tax net earnings were $633,000 during the last quarter;
    - ADS is closer to its objective of increasing its annual revenues to
      more than $100 million within two years; the Company's annualized
      sales have now reached approximately $70 million.
    

    SAINT-ELZEAR-DE-BEAUCE, QC, Sept. 11 /CNW Telbec/ - The board of
directors of ADS Inc. "ADS" (TSX: AAL.A) today announced the Company's
financial results for the second quarter ended July 29, 2007.
    The Company's sales volume for continuing activities for the three-month
period ended July 29, 2007 was $15.3 million, for an increase of $2.0 million
or 15% compared to sales of $13.3 million for the second quarter of the
preceding fiscal year. After six months, the Company's sales figures were
$26.2 million for growth of $1.3 million, or a little more than 5% on revenues
of $24.9 million for the first half of the preceding fiscal year. Beckwith
Bemis, which was acquired on June 18, 2007, generated sales of $1.6 million
during the last quarter. In general, the Company has performed well in its
various markets, since the beginning of the current fiscal year. Only sales in
the industrial and disposable wipes sectors are slightly lower than the
Company's objectives, although sales in these areas are growing compared to
last year. Business in the waterproof geomembrane installation market slowed
during the second quarter. Nevertheless, the Company's order book, for this
sector and for other markets served by the enterprise, is well filled for the
coming quarters.
    During the second quarter, ADS recorded net earnings of $418,000, or
$0.02 per share on a diluted basis, whereas for the corresponding quarter last
year, it recorded net earnings of $680,000 or $0.03 per share. For the first
half, the Company recorded net earnings of $369,000, or $0.02 per share, a
decline of $195,000 compared to net earnings of $564,000, or $0.03 per share
for the same period of the preceding fiscal year. This decline in net earnings
for the first six months of the fiscal year is mainly attributable to a
reduction of about $200,000 in tax expenses recorded by the Company in the
second quarter last year, following a federal tax rate decrease.
    "After several months of efforts, we are proud to have acquired the main
assets of Beckwith Bemis Inc. With a rich history of more than 90 years in
business, this Sherbrooke company is well established in its sector and its
product line complements that of ADS. In the months to come, we intend to
optimize the new opportunities for synergies presented by this acquisition.
Notably, we would like to become a non-woven materials supplier for some of
Beckwith Bemis' clients. In addition, we plan to make Beckwith Bemis a
preferred supplier of the Company whenever possible. Furthermore, during the
last quarter we began commercial production of a new product aimed at the
automobile market. This innovative product, and the acquisition of the
Beckwith Bemis assets, should provide two powerful growth engines for our
business activities in the coming quarters," said Mr. Guy Drouin, President
and Chief Executive Officer of ADS.
    "The acquisition of Beckwith Bemis is expected to result in additional
annual sales of about $12 million for ADS. As we achieved with this recent
acquisition, we will continue our evaluation program to look for quality
enterprises that offer opportunities for synergies and complementarity with
the Company's current sectors of activity. With the purchase of Beckwith
Bemis, we have brought ourselves closer to our goal of growing our revenues to
more than $100 million within two years. Our annual sales are now
approximately $70 million. We're continuing to pursue this goal, all while
maintaining high profitability targets," added Mr. Drouin.

    Forward-looking statement

    With the exception of historical information, this press release contains
forward-looking information and statements about the Company's
futureperformance. These statements are based on assumptions, uncertainties,
as well as on management's best evaluations possible in relation to future
events. These factors are subject to, but are not limited to, variations in
quarterly financial results, changes in demand for the Company's products and
services, the impact of the competition on pricing and on the market in
general, in addition to setbacks that could affect economic conditions.
Readers are therefore cautioned that actual results could differ from forecast
results.
    ADS Inc., whose head office is based in Beauce, near Quebec City, is a
corporation active primarily in the manufacturing sector through subsidiaries
operating in the technical textiles field.

    
    Interim Consolidated Statement of Earnings and Comprehensive Income
    -------------------------------------------------------------------
    -------------------------------------------------------------------
    (unaudited)
    (in thousands of dollars,
     except per share amounts)
                                 Three-Month Periods       Six-Month Periods
                                July 29,    July 30,    July 29,    July 30,
                                    2007        2006        2007        2006
                                       $           $           $           $


    Revenues                      15,281      13,292      26,215      24,861
                                 --------------------------------------------
    Cost of sales and operating
     expenses before the
     following items              13,414      11,572      23,353      22,254

    Research and development costs   185         171         453         400
    Depreciation of property,
     plant and equipment             849         728       1,581       1,453
    Amortization of
     intangible assets               150         102         248         204
                                 -------------------------------------------

                                  14,598      12,573      25,635      24,311
                                 -------------------------------------------
    Operating income                 683         719         580         550
                                 --------------------------------------------
    Financial expenses (revenues)
    Interest on long-term debt        62           8          62          12
    Interest and bank charges         30          35          48          61
    Interest income                  (42)        (50)       (101)       (109)
                                 -------------------------------------------
                                      50          (7)          9         (36)
                                 --------------------------------------------
    Earnings before income taxes     633         726         571         586

    Income tax expense               210          45         189           -
                                 --------------------------------------------
    Net earnings from
     continuing operations           423         681         382         586

    Net loss from
     discontinued operations          (5)         (1)        (13)        (22)
                                 --------------------------------------------
    Net earnings and comprehensive
     income for the period           418         680         369         564
                                 --------------------------------------------
                                 --------------------------------------------
    Basic and diluted net
     earnings per Class A share
     from continuing operations    $0.02       $0.03       $0.02       $0.03
                                 --------------------------------------------
                                 --------------------------------------------
    Basic and diluted
     net earnings per
     Class A share                 $0.02       $0.03       $0.02       $0.02
                                 --------------------------------------------
                                 --------------------------------------------

    Interim Consolidated Statement of Retained Earnings
    ---------------------------------------------------
    ---------------------------------------------------
    (unaudited)
    (in thousands of dollars)

                                                           Six-Month Periods
                                                        July 29,    July 30,
                                                            2007        2006
                                                               $           $

    Balance - Beginning of period                         10,862      12,991
    Adjustment related to the implementation
     of the new standard on financial instruments             25           -
    Net earnings for the period                              369         564
                                                    -------------------------

                                                          11,256      13,555

    Dividends on Class A shares                             (954)       (954)
                                                    -------------------------

    Balance - End of period                                10,302     12,601
                                                    -------------------------
                                                    -------------------------


    Interim Consolidated Balance Sheet
    ----------------------------------
    ----------------------------------
    (unaudited)
    (in thousands of dollars)

                                                           As at       As at
                                                            July     January
                                                             29,         28,
                                                            2007        2007
                                                               $           $

    ASSETS

    Current assets  Cash                                       -           2
    Short-term investment                                      -       1,506
    Accounts receivable                                   11,001       6,136
    Inventory                                              7,987       5,671
    Income taxes recoverable                                 401         175
    Prepaid expenses                                         422         431
    Future income tax assets                                  23          23
    Current portion of balances of sales
     price receivable                                        883         924
    Current assets of discontinued operations                335         278
                                                    -------------------------

                                                          21,052      15,146

    Research and development tax
     credits recoverable                                     314         182
    Long-term assets of discontinued operations                8           8
    Balances of sales price receivable                     1,708       2,399
    Property, plant and equipment                         27,587      22,148
    Intangible assets                                      3,146       1,975
    Future income tax assets                                  86          86
    Goodwill                                                  75          75
                                                    -------------------------
                                                          53,976      42,019
                                                    -------------------------
                                                    -------------------------
    LIABILITIES

    Current liabilities
    Excess of outstanding cheques over bank balance        1,029           -
    Bank loans                                             1,265          30
    Accounts payable and accrued liabilities               6,206       4,811
    Future income tax liabilities                              2          15
    Current portion of long-term debt                      2,187         159
    Current liabilities of discontinued operations            68         318
                                                    -------------------------

                                                          10,757       5,333

    Long-term debt                                         7,181         230
    Future income tax liabilities                          2,507       2,394
                                                    -------------------------

                                                          20,445       7,957
                                                    ------------------------
    SHAREHOLDERS' EQUITY

    Capital stock                                         22,722      22,722
    Contributed surplus                                      507         478
    Retained earnings                                     10,302      10,862
                                                    -------------------------

                                                          33,531      34,062
                                                    -------------------------

                                                          53,976      42,019
                                                    -------------------------
                                                    -------------------------
    




For further information:

For further information: Mr. Paul Drouin, Chairman of the board; Mr. Guy
Drouin, President and Chief Executive Officer, (418) 387-3383; Source: ADS
Inc.

Organization Profile

ADS Inc.

More on this organization


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