Results for the Fiscal Year Ended January 31, 2009 - ADF Group deliver a performance in line with expectations, and even higher, for the fiscal year 2009



    
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    - Revenues increased by 66% to $98.9 million.

    - EBITDA margin reached 23.2% of revenues, according to the management's
      forecasts establish at the beginning of the fiscal year 2009.

    - Excluding the tax attributes of 2008, net earnings grew by 170% to
      $15.6 million.

    - Cash flows from operating activities totalled $32.7 million,
      permitting ADF to close its fiscal year with an $18.6 million surplus
      over the total debt.

    - The Corporation announces a redemption of shares under normal course of
      business.

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    TERREBONNE, QC, April 15 /CNW Telbec/ - For the fiscal year ended January
31, 2009, ADF GROUP INC. ("ADF" or the "Corporation") (TSX: DRX) posted a 66%
increase in revenues to $98.9 million, over $59.5 million for the previous
fiscal year. This increase stems from the growth in the order backlog in 2008,
as well as its nature of the work contracted for.
    The gross margin before foreign exchange variation grew by 51%, rising
from $19.5 million or 33% of revenues in fiscal 2008 to $29.5 million or 30%
of revenues in fiscal 2009. Earnings before interest, taxes, depreciation and
amortization, excluding exchange gains or losses ("EBITDA") also continued to
improve, rising from $15.1 million in 2008 to $23.0 million in 2009. Excluding
the recording of net tax attributes of $28.2 million in fiscal 2008 related to
prior years, net earnings in fiscal 2009 grew by 170% to $15.6 million, while
basic earnings per share reached $0.43, up $0.26 over the previous year.
    During fiscal 2009, the Corporation generated cash flows from operating
activities totalling $32.7 million, which permitted to increase its
liquidities to $28.5 million at January 31, 2009 (including cash, cash
equivalents and short-term investments). As at January 31, 2009, the
Corporation's short-term available cash posted a surplus of $18.6 million over
its total debt, which stood at $9.8 million.
    Commenting on ADF's financial performance, Mr. Jean Paschini, Chairman of
the Board and Chief Executive Officer, said that ADF achieved one of the best
financial performances of its history during fiscal 2009. "The past fiscal
year was in line with our expectations, and even higher to some extent, in
terms of revenues, profitability and cash flows. This solid performance is
mainly attributable to the disciplined approach to every aspect of our
business: from the selection of projects to their efficient execution, and
through responsible management of our costs, cash flows and risks" added Mr.
Paschini.
    ADF Group's order backlog reached $99 million on January 31, 2009,
compared with $165 million at the same date last year. This 40% decline is
mostly attributable to the impact of the financial and economic crisis
affecting both the Canadian and U.S. markets. Most contracts in hand will be
progressively executed over a period of 12 months. Mr. Paschini pointed out
that the market remains fairly active in regard to calls for tender, which
leads the Corporation to believe it will be able to increase its order backlog
in the coming quarters. In addition, because more than 80% of the order
backlog consists of fabrication hours, it is therefore mostly made up of
projects relating to ADF's primary field of expertise - fabrication -, which
yields higher profit margins for ADF and carries lower risk.

    Redemption of Subordinate Voting Shares of the Corporation

    ADF Group announces that it has obtained the approval of its Board of
Directors and the Toronto Stock Exchange to proceed with a normal course
issuer bid.
    As a result, from April 17, 2009 to April 16, 2010, ADF will be
authorized to redeem for cancellation, from time to time and as it may deem
appropriate, a maximum of 1,850,000 Subordinate Voting Shares, that is to say
about 10% of the Subordinate Voting Shares held by the public. As at the close
of business on April 10, 2009, the number of outstanding Subordinate Voting
Shares stood at 21,854,469, of which 18,509,544 Subordinate Voting Shares were
held by the public.
    The management and Board of Directors of ADF believe that the price of
the Subordinate Voting Shares sometimes does not reflect the intrinsic value
of the Corporation and that, consequently, this redemption of the Subordinate
Voting Shares would be a judicious use of the Corporation's funds.
    The redemption of the Subordinate Voting Shares will be carried out by
the Corporation on the open market through the Toronto Stock Exchange in
compliance with its requirements, which currently limit redemptions to 20,761
shares per day, in other words 25% of the number of Subordinate Voting Shares
traded daily, on average, over the last six months, with the exception of
block trades. The price that the Corporation will pay to acquire the
Subordinate Voting Shares will be the market price of these securities at the
time of purchase.
    The Corporation has not redeemed any shares within the last 12 months.

    Outlook

    In view of the current context, the Company is cautious, yet confident,
for the coming year. "We will remain focused on our vision, which is built on
our positioning in a strong value-added niche market enjoying higher barriers
to entry and fewer competitors, and backed by our remarkable labour force,
quality infrastructures, solid balance sheet and upmost respect for our
employees, shareholders, clients, suppliers and all our partners" Mr. Paschini
concluded.

    Annual Report And Annual General Meeting of Shareholders

    The Corporation's annual report for the fiscal year ended January 31,
2009, will be available on May 1, 2009.
    The Annual General Meeting of Shareholders of ADF Group Inc. will be held
on Tuesday, June 9, 2009, at 11:00 am at the Omni Mont-Royal Hotel in
Montreal. The results of the first quarter ending April 30, 2009 will also be
disclosed during the Corporation's Annual Meeting.

    About ADF

    ADF Group Inc. is a North American leader in the design, engineering,
fabrication and selective installation in the non-residential construction
industry of complex steel structures, heavy built-ups, as well as in
miscellaneous and architectural metals. 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.
    All amounts are in Canadian dollars.

    
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                       CONFERENCE CALL WITH INVESTORS :

                       TO DISCUSS ADF GROUP'S RESULTS
                 FOR THE FISCAL YEAR ENDED JANUARY 31, 2009

             Wednesday, April 15, 2009 at 2:00 pm (Montreal time)

      To participate in the conference call, please dial 1-800-732-6179
                       a few minutes before the call.

         For those unable to participate, a taped re-broadcast will
           be available from Wednesday, April 15, 2009, 4:00 p.m.,
            until midnight Wednesday, April 22, 2009, by dialing:
                 1-877-289-8525; access code 21303575 #.

     The conference call (audio) will be available at www.adfgroup.com.

               Members of the media are invited to listen in.
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    Consolidated Statements of Earnings
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    Fiscal Years Ended January 31                          2009        2008
                                                        ---------------------
    (In thousands of $, except per-share amounts)           $           $

    Revenues                                              98,851      59,470
    Cost of goods sold                                    69,396      39,983
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    Gross margin before foreign exchange variation        29,455      19,487
    (Gain) loss on foreign exchange                       (3,759)      1,730
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    Gross margin                                          33,214      17,757
    Selling and administrative expenses                    6,496       4,418
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    Earnings before undernoted items:                     26,718      13,339
    Amortization
      Amortization of property, plant and equipment        2,319       2,237
      Amortization of intangible assets                       53         237
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                                                           2,372       2,474
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    Earnings before financial charges, other items
     and income taxes                                     24,346      10,865
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    Financial charges
      Interest on long-term debt                             469       1,606
      Interest income                                       (328)       (268)
      Other interest                                         166          79
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                                                             307       1,417
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    Earnings before other items and income taxes          24,039       9,448
    Other items - Investment tax credits                       -      (2,514)
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    Earnings before income taxes                          24,039      11,962
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    Income taxes
      Current                                                207          13
      Future                                               8,258     (22,014)
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                                                           8,465     (22,001)
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    Net earnings                                          15,574      33,963
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    Basic earnings per share                                0.43        1.02
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    Diluted earnings per share                              0.42        0.98
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    Average number of outstanding shares (in thousands)   36,152      33,292
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    Average number of outstanding diluted
     shares (in thousands)                                37,206      34,674
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    Consolidated Statements of Comprehensive Income
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    Fiscal Years Ended January 31                          2009        2008
                                                        ---------------------
    (In thousands of $)                                     $           $

    Net earnings                                          15,574      33,963
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    Other comprehensive income
      Unrealized (loss) gain on assets available
       for sale                                             (142)        305
      Related income taxes                                    22         (41)
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                                                            (120)        264
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    Comprehensive income                                  15,454      34,227
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    Consolidated Statements of Retained Earnings (Deficit)
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    Fiscal Years Ended January 31                          2009        2008
                                                        ---------------------
    (In thousands of $)                                     $           $

    Deficit, beginning of year                           (75,538)   (108,365)
    Net earnings                                          15,574      33,963
    Reduction in stated capital                           61,736           -
    Share issuance costs, net of income
     taxes of $487 in 2008                                     -      (1,136)
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    Retained earnings (deficit), end of year               1,772     (75,538)
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    Consolidated Statements of Contributed Surplus
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    Fiscal Years Ended January 31                          2009        2008
                                                        ---------------------
    (In thousands of $)                                     $           $

    Contributed surplus, beginning of year                 1,965       1,988
    Stock-based compensation                                 234         179
    Exercise of options and warrants                         (24)       (202)
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    Contributed surplus, end of year                       2,175       1,965
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    Consolidated Balance Sheets
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    At January 31                                          2009        2008
                                                        ---------------------
    (In thousands of $)                                     $           $

    ASSETS
    Current
      Cash and cash equivalents                           22,490       7,686
      Short-term Investments                               6,000           -
      Accounts receivable                                 11,165      17,877
      Holdbacks on contracts                               3,462       3,158
      Work in progress                                       628       1,312
      Inventories                                          3,271       2,551
      Prepaid expenses                                       660         266
      Income taxes                                             -         181
      Future income tax assets                             6,666      11,660
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                                                          54,342      44,691

    Holdbacks on long-term contracts                       1,129         345
    Property, plant and equipment                         40,360      33,082
    Intangible assets                                      2,402       1,153
    Other assets                                             185         328
    Future income tax assets                              13,444      13,066
    Investment tax credits                                 2,505       2,514
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                                                         114,367      95,179
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    LIABILITIES
    Current
      Accounts payable                                     5,170       5,494
      Accrued charges                                      4,716       1,787
      Salaries and fringe benefits payable                 3,762       2,494
      Deferred revenues                                    4,767       6,066
      Income taxes                                           226           -
      Derivative financial instruments                     1,058           -
      Current portion of long-term debt                    3,018       2,228
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                                                          22,717      18,069
    Future income tax liabilities                             47           -
    Long-term debt                                         6,827       8,089
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                                                          29,591      26,158
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    Shareholders' equity
      Retained earnings (deficit)                          1,772     (75,538)
      Accumulated other comprehensive income                 144         264
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                                                           1,916     (75,274)
    Capital stock                                         80,685     142,330
    Contributed surplus                                    2,175       1,965
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                                                          84,776      69,021
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                                                         114,367      95,179
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    Consolidated Statements of Cash Flows
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    Fiscal Years Ended January 31                          2009        2008
                                                        ---------------------
    (In thousands of $)                                     $           $

    OPERATING REVENUES
      Net earnings                                        15,574      33,963
      Adjustments for:
        Amortization of property, plant and equipment      2,319       2,237
        Amortization of intangible assets                     53         237
        Amortization of other assets                           -         143
        Gain on disposal of property, plant
         and equipment                                      (974)       (230)
        Unrealized loss on derivative financial
         instruments                                       1,058           -
        Non-cash exchange gain                            (1,992)       (301)
        Future income taxes                                8,258     (22,014)
        Investment tax credits                                 -      (2,514)
        Interest accretion on long-term debt                  19          17
        Stock-based compensation                             234         179
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      Net earnings adjusted                               24,549      11,717
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    Changes in non-cash operating working capital items
      Accounts receivable                                  6,712      (9,969)
      Short-term and long-term holdbacks on contracts     (1,088)        896
      Work in progress                                       684         866
      Inventories                                           (720)        727
      Income taxes                                           407        (285)
      Prepaid expenses                                      (394)        608
      Accounts payable, accrued charges, salaries
       and fringe benefits payable                         3,873       1,732
      Deferred revenues                                   (1,299)     (2,088)
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                                                           8,175      (7,513)
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    Cash flows from operating activities                  32,724       4,204
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    INVESTING ACTIVITIES
      Acquisitions of short-term investments              (6,000)          -
      Acquisition of property, plant and equipment
       (net of grants of $198 in 2009 and $183 in 2008)   (8,623)     (4,693)
      Acquisition of intangible assets                    (1,302)     (1,008)
      Proceeds from disposal of property,
       plant and equipment                                     -          32
      Decrease in other assets                                 1           2
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    Cash flows applied to investing activities           (15,924)     (5,667)
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    FINANCING ACTIVITIES
      Repayment of bank indebtedness                           -        (263)
      Increase in long-term debt                               -         583
      Repayment of long-term debt                         (2,228)    (17,245)
      Issuance of subordinate voting shares                   68      20,186
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    Cash flows from financing activities                  (2,160)      3,261
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    Impact of fluctuations in foreign exchange
     rate on cash                                            164        (128)
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    Net cash inflows                                      14,804       1,670
    Cash and cash equivalents, beginning of year           7,686       6,016
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    Cash and cash equivalents, end of year                22,490       7,686
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    Supplemental cash flow information
      Income taxes paid                                      162          23
      Interest paid                                          397       1,340
      Non-cash financing and investing activities:
        Property, plant and equipment given in
         exchange for new equipment                        2,261         611
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    The Corporation operates in the non-residential construction sector,
primarily in the United States and Canada. Its operations include the
connections design and engineering, fabrication and selective installation of
complex steel structures, heavy built-ups as well as miscellaneous and
architectural metal work.

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                                         2009                    2008
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                                            Property,               Property,
                                           Plant and               Plant and
                                Revenues   Equipment    Revenues   Equipment
                                ---------------------------------------------
                                    $           $           $           $

    Canada                         9,634      40,148       4,699      32,889
    United-States                 89,217         212      54,771         193
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                                  98,851      40,360      59,470      33,082
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    During the fiscal year ended January 31, 2009, 63% of the Corporation's
revenues were recorded with two clients (82% with three clients during the
fiscal year ended January 31, 2008), each of which accounted for more than 10%
of revenues.




For further information:

For further information: Jean Paschini, Chairman of the Board and Chief
Executive Officer, (450) 965-1911, 1-800-263-7560; Louis Potvin, Chief
Financial Officer, (450) 965-1911, 1-800-263-7560; www.adfgroup.com; Media:
Caroline Couillard, Morin Relations Publiques, (514) 289-8688, ext. 233;
Source: ADF Group Inc.


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