Results for the first quarter ended April 30, 2016

HIGHLIGHTS

  • Revenues of $25.4 million compared with $28.7 million during the same period last year
  • Gross margin as a percentage of revenues totalled 24.1% compared with 12.4% a year ago
  • Increase in net income compared with the same period a year ago
  • Backlog of $78.4 million as at April 30, 2016

TERREBONNE, QC, June 14, 2016 /CNW Telbec/ - ADF Group Inc. ("ADF" or the "Corporation") (TSX: DRX) recorded revenues of $25.4 million for the first quarter ended April 30, 2016, compared with $28.7 million for the comparable period a year ago. The gross margin, as in percentage of revenues went from 12.4% during the quarter ended April 30, 2015 to 24.1% during the three-month period ended April 30, 2016. Besides certain non-recurring favorable adjustments, this increase stems from a better absorption of costs, in line with the increased fabrication volume, and a better mix of projects in our production plants.

ADF recorded a net income of $965,000 ($0.03 basic and diluted per share) compared with a net income of $57,000 ($0.00 basic and diluted per share) a year ago.

On April 30, 2016, working capital stood at $24.4 million, including $0.8 million in short-term available liquidities (comprising of cash, cash equivalents and short term investments). On February 22, 2016, the Corporation drew the second tranche of $5.0 million from a bank loan contracted during the third quarter of the fiscal year ended January 31, 2016. The Corporation remains in a solid position to support its ongoing operations, pursue its development projects and remunerate its shareholders in accordance with the dividend payment policy.

As at April 30, 2016, the Corporation order book totalled $78.4 million, compared with $70.6 million as at January 31, 2016. These contracts will be progressively completed by the end of the second quarter of fiscal 2018.

Financial Highlights




Three-Month Periods Ended April 30,

2016

2015

(In thousands of dollars, and dollars per share)

$

$




Revenues

25,440

28,682

EBITDA

3,043

1,838

Net income for the period

965

57

- Per share (basic and diluted)

0.03

0.00

Average number of outstanding shares (basic, in thousands)

32,621

32,541

Average number of outstanding shares (diluted, in thousands)

32,749

33,098

 

New Orders

On March 30, 2016, the Corporation announced the award of new contracts worth over $43.0 million, in Quebec and in U.S. East Coast. In addition to fabricating various steel structures and unique heavy steel built-ups, and performing the installation work thereof, ADF's contracts also include the supply of the shop drawings, the purchase of the steel required in the scope of these different projects, and in some cases, the application of special industrial coatings. These projects will be primarily carried out at ADF's Terrebonne fabrication plant and they are scheduled to extend until July 2017.

Outlook

"Now that our paint shop in Terrebonne is operational, our capital investments for the coming quarters will be minimal. Our focus will be to reap the full benefits of the investments we have made over the past years. Additionally, our renewed marketing efforts, as well as all of our assets, will allow us to adopt a comprehensive approach and thus ensure the sustainable growth of ADF Group" said Mr. Jean Paschini, Co-Chairman of the Board of Directors and Chief Executive Officer.

Dividend

On April 13, 2016, ADF Group's Board of Directors approved the payment of a semi-annual dividend of $0.01 per share that was paid on May 16, 2016 to shareholders of record as at April 29, 2016.

Annual Meeting of Shareholders

ADF Group Inc. Annual Meeting of Shareholders will be held on June 15, 2016 at 11:00 a.m. at the Sheraton Hotel, located at 2440, Highway Des Laurentides, in Laval.

About ADF Group Inc.

ADF Group Inc. is a North American leader in the design and engineering of connections, fabrication, including the application of industrial coatings, and installation of complex steel structures, heavy steel built-ups, as well as in miscellaneous and architectural metals for the non-residential infrastructure sector. ADF Group Inc. 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. The Corporation operates two fabrication plants and two paint shops, in Canada and in the United States, and a Construction Division in the United States, which specializes in the installation of steel structures and other related products.

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.

Non-IFRS Measures

Earnings before interest, taxes, depreciation and amortization ("EBITDA") is not a performance measure recognized by IFRS standards, and is not likely to be comparable to similar measures presented by other issuers. Management, as well as investors, consider this to be useful information to assist them in assessing the Corporation's profitability and ability to generate funds to finance its operations. Refer to Section 8 "Non-GAAP Measures" of the Corporation's Management's Discussion and Analysis for Three-Month Period Ended April 30, 2016, for the definition of this metric and reconciliation to the most comparable IRFS measures.

All amounts are in Canadian dollars, unless otherwise indicated.

 

CONFERENCE CALL WITH INVESTOR, JUNE 15, 2016 AT 10:00 A.M. (Montreal time)

 

RESULTS FOR THE THREE-MONTH PERIOD ENDED APRIL 30, 2016

 

TO PARTICIPATE, PLEASE DIAL 1-866-865-3087 A FEW MINUTES BEFORE THE START OF THE CALL.

 

For those unable to participate, a taped rebroadcast will be available from Wednesday, June 15, 2016

at 1:00 p.m. until midnight Wednesday, June 22, 2016, by dialing 1-855-859-2056; access code 11017131.

 

The conference call (audio) will also be available on ADF's Website at www.adfgroup.com.

 

Members of the media are invited to listen in.

 

 

SOURCE ADF Group Inc.



For further information: Jean Paschini, Co-Chairman of the Board of Directors and Chief Executive Officer; Jean-François Boursier, CPA, CA, Chief Financial Officer, Telephone: (450) 965-1911


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