Results for the Fiscal Year Ended January 31, 2010 - ADF Group Inc. maintains
a good financial performance and solid balance sheet despite the economic
context

    
    -------------------------------------------------------------------------
    - Revenues amounted to $65.7 million.
    - The Corporation maintained healthy profit margins, including a gross
      margin of 28.4%, an "EBITDA(1)" margin of 21.5%, a pre-tax profit
      margin of 20.2% and a net profit margin of 10.6%.
    - ADF closed fiscal 2010 with net earnings of $7.0 million or $0.20 basic
      per share ($0.19 diluted per share) compared with $15.6 million or
      $0.43 basic per share ($0.42 diluted per share) in 2009.
    - As at January 31, 2010, the Corporation's available cash of
      $17.4 million exceeded its long-term debt by more than $10 million.
    - ADF now meets the nuclear system requirements of the American Society
      of Mechanical Engineering ("ASME"), allowing it to participate in the
      fabrication of steel structures for nuclear power plants.
    -------------------------------------------------------------------------
    

TERREBONNE, QC, April 15 /CNW Telbec/ - ADF GROUP INC. ("ADF" or the "Corporation") (ticker symbol: DRX/TSX) recorded revenues of $65.7 million for the fiscal year ended January 31, 2010, compared with $98.9 million the previous year. Besides the economic context, this 33% decrease can be explained by the different mix of revenues derived from contracts executed during the two comparative years, as well as delays attributable to clients in the progress of certain major projects under way.

Due to the revenue decrease, the gross margin before foreign exchange variation declined from $29.5 million during fiscal 2009 to $18.7 million in 2010. However, ADF maintained a strong gross margin as a percentage of revenues, in the amount of 28.4% in 2010 versus 29.8% in 2009. It should be noted that during the fourth quarter ended January 31, 2010, the Corporation settled certain contractual changes for which the costs had been recorded in previous quarters.

Earnings before interest, income taxes and amortization, excluding gains or losses on foreign exchange(1) (or "EBITDA") amounted to $14.2 million, compared with $23.0 million in 2009. However, the EBITDA margin as a percentage of revenues also remained high, at 21.5% in 2010 versus 23.2% in 2009.

ADF recorded a gain on foreign exchange of $1.7 million in 2010, compared with a gain on foreign exchange of $3.8 million in 2009. Amortization increased by $0.7 million due to the investments allocated over the past two years to the expansion and optimization of the Terrebonne industrial complex. However, this increase was offset by the recognition of net interest income of $0.5 million as opposed to net financial charges of $0.3 million the previous year, representing a $0.8 million favourable variation attributable to the repayment of long-term debt, a lower variable interest rate and the Corporation's substantial available cash.

Consequently, ADF Group posted earnings before income taxes of $13.3 million, compared with $24.0 million the previous year. The Corporation thus achieved an appreciable pre-tax profit margin of 20.2%, versus 24.3% the previous year.

ADF closed fiscal 2010 with net earnings of $7.0 million or $0.20 basic per share ($0.19 diluted per share), compared with $15.6 million or $0.43 basic per share ($0.42 diluted per share) in 2009. The net profit margin thus stood at 10.6% in 2010, versus 15.8% the previous year.

As regards investments, following the award of major contracts during fiscal 2010, the Corporation launched a new investment program of approximately $6 million aimed at increasing production flexibility and efficiency. Some 50 new jobs were also created.

Despite disbursements totalling more than $10 million for the purchase of new property, plant and equipment ($4.0 million), debt repayment ($1.7 million) and redemption of shares in the normal course of business ($4.5 million), the Corporation continued to benefit from a solid balance sheet at the close of fiscal 2010, including a working capital of $35.6 million for a current ratio of 4.81:1, compared with working capital of $31.6 million and a 2.39:1 ratio as at January 31, 2009. As at January 31, 2010, the Corporation notably benefited from available cash of $17.4 million (including cash, cash equivalents and short-term investments), exceeding by more than $10 million its long-term debt of $7.1 million (including the current portion).

Jean Paschini, Chairman of the Board and Chief Executive Officer, qualified the financial performance achieved in 2009-2010 as satisfactory, considering the challenging economic conditions the industry had to deal with in recent quarters. "We addressed the challenges of the global economic crisis with efficiency and discipline, as a result of which ADF maintained healthy profit margins and ended the year in an excellent financial position. We garnered some of the most prestigious contracts awarded in North America over the past quarters. We further invested in the quality of our labour force and production infrastructures in order to enhance our technological advance and competitive edge. Furthermore, we undertook to position ADF Group in another specialized market niche - the construction and refurbishment of nuclear power plants -- thereby providing the Corporation with an additional potential source of growth over the medium term," he pointed out.

Order Backlog and Outlook

As at January 31, 2010, ADF Group's order backlog stood at $116 million, up 17% over the previous year, with an execution schedule extending over a period of 12 to 15 months. The Corporation is also at the negotiation stage for additional contracts totalling $250 million.

"We are witnessing an increase in bidding activity in Canada and in certain niches of the U.S. market," indicated Jean Paschini. "Furthermore, beginning in fiscal 2011, we intend to lay the foundations for ADF Group's next growth phase, as we will focus on the following key development objectives: (1) increase our market share in our existing specialized niches and geographic territories; (2) establish our presence in a new specialized niche; nuclear infrastructures, for which we recently qualified in accordance with the nuclear systems requirements in effect in America. This market could represent an attractive source of growth for the Corporation considering the major investments planned over the next 20 years to refurbish existing power plants and construct new facilities, especially in North America; and (3) expand our geographical footprint by seeking opportunities for partnerships, strategic alliances or acquisitions in line with our strategic vision and could arise in our key target niches in the current economic context."

Renewal of Redemption of Subordinate Voting Shares in the Normal Course of Business

The Corporation announces that it has obtained the approval of its Board of Directors and the Toronto Stock Exchange to renew its normal course issuer bid.

Thus, from April 19, 2010 to April 18, 2011, ADF will be authorized to redeem for cancellation, from time to time and as it may deem appropriate, up to 1,940,000 subordinate voting shares, representing approximately 10% of the subordinate voting shares held by the public. At the close of business on April 9, 2010, the number of subordinate voting shares outstanding totalled 20,134,605, of which 19,444,663 shares or 96.6% thereof were held by the public.

ADF's management and Board of Directors 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 ADF's funds.

The redemption of the subordinate voting shares will be carried out by ADF on the open market through the Toronto Stock Exchange in compliance with its requirements, which currently limit redemptions to 12,971 shares per day, or 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 ADF will pay for the subordinate voting shares that it will acquire will be the market price of those shares at their acquisition date. All the shares redeemed under the normal course issuer bid will be cancelled. The redemption of shares will be made at ADF's discretion.

Under the normal course issuer bid that began on April 17, 2009 and will end on April 16, 2010, ADF redeemed 1,850,000 subordinate voting shares for cancellation. These redemptions were carried out through the Toronto Stock Exchange at a weighted average price of $2.45.

To the knowledge of ADF, no director or executive officer of the Corporation has the intent to sell shares for the duration of the offer, with the exception of Mr. Louis Potvin, actual Chief Financial Officer who will be leaving the Corporation on April 23, 2010, and who could sell in part or in whole the shares he holds further to the exercise of his stock option.

Fiscal 2010 Report and Annual Shareholders' Meeting

The report for the fiscal year ended January 31, 2010 will be available as of May 1, 2010.

ADF Group Inc.'s Annual General and Special Meeting of Shareholders will be held on June 9, 2010 at 11:00 a.m. at the Omni Mont-Royal Hotel in Montreal. Financial results for the first quarter ending April 30, 2010 will also be disclosed at 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.

    
    -------------------------------------------------------------------------
                       CONFERENCE CALL WITH INVESTORS

                       TO DISCUSS ADF GROUP'S RESULTS
                 FOR THE FISCAL YEAR ENDED JANUARY 31, 2010

             Thursday, April 15, 2010 at 10:00 am (Montreal time)

     To participate in the conference call, please dial 1-888-231-8191 a few
                    minutes before the start of the call.

     For those unable to participate, a taped rebroadcast will be available
     from April 15, 2010 at 1:00 p.m. until midnight April 21, 2010, by
                dialing 1-800-642-1687; access code 67764623.

       The conference call (audio) will also be available at www.cnw.ca.

               Members of the media are invited to listen in.
    -------------------------------------------------------------------------



    CONSOLIDATED STATEMENTS OF EARNINGS

                                                        (In thousands of $,
    Fiscal Years Ended January 31,                  except per share amounts)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                           2010        2009
    -------------------------------------------------------------------------
                                                              $           $
    Revenues                                             65,740      98,851
    Cost of goods sold                                   47,087      69,396
    -------------------------------------------------------------------------
    Gross margin before foreign exchange variation       18,653      29,455
    Gain on foreign exchange                             (1,680)     (3,759)
    -------------------------------------------------------------------------
    Gross margin                                         20,333      33,214
    Selling and administrative expenses                   4,493       6,496
    -------------------------------------------------------------------------
    Earnings before undernoted items:                    15,840      26,718
    Amortization
      Amortization of property, plant and equipment       2,657       2,319
      Amortization of intangible assets                     400          53
    -------------------------------------------------------------------------
                                                          3,057       2,372
    -------------------------------------------------------------------------
    Earnings before (interest income) financial
     charges and income taxes                            12,783      24,346
    -------------------------------------------------------------------------
    (Interest income) financial charges
      Interest on long-term debt                            198         469
      Interest income                                      (715)       (328)
      Other interest                                         28         166
    -------------------------------------------------------------------------
                                                           (489)        307
    -------------------------------------------------------------------------
    Earnings before income taxes                         13,272      24,039
    -------------------------------------------------------------------------
    Income taxes
      Current                                               235         207
      Future                                              6,045       8,258
    -------------------------------------------------------------------------
                                                          6,280       8,465
    -------------------------------------------------------------------------
    Net earnings                                          6,992      15,574
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Basic earnings per share                               0.20        0.43
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Diluted earnings per share                             0.19        0.42
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Average number of outstanding shares (in thousands)  35,480      36,152
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Average number of outstanding diluted shares
     (in thousands)                                      36,334      37,206
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

    Fiscal Years Ended January 31,                       (In thousands of $)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                           2010        2009
    -------------------------------------------------------------------------
                                                              $           $
    Net earnings                                          6,992      15,574
    -------------------------------------------------------------------------
    Other comprehensive income
      Unrealized losses on assets available for sale          -        (142)
      Related income taxes                                    -          22
    -------------------------------------------------------------------------
                                                              -        (120)
    -------------------------------------------------------------------------
    Comprehensive income                                  6,992      15,454
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    CONSOLIDATED STATEMENTS OF RETAINED EARNINGS (DEFICIT)

    Fiscal Years Ended January 31,                       (In thousands of $)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                                  Restated*
                                                           2010        2009
    -------------------------------------------------------------------------
                                                              $           $
    Retained earnings (deficit), beginning of year        2,807     (75,538)
    Adjustment                                                -       1,035
    -------------------------------------------------------------------------
    Retained earnings (deficit), beginning of year,
     restated                                             2,807     (74,503)
    Net earnings                                          6,992      15,574
    Reduction in stated capital                               -      61,736
    -------------------------------------------------------------------------
    Retained earnings, end of year                        9,799       2,807
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    CONSOLIDATED STATEMENTS OF CONTRIBUTED SURPLUS

    Fiscal Years Ended January 31,                       (In thousands of $)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                           2010        2009
    -------------------------------------------------------------------------
                                                              $           $
    Contributed surplus, beginning of year                2,175       1,965
    Stock-based compensation                                308         234
    Exercise of options                                     (44)        (24)
    Excess of the book value over the acquisition
     cost of redeemed subordinate voting shares             932           -
    -------------------------------------------------------------------------
    Contributed surplus, end of year                      3,371       2,175
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    * See Note 8 of the Notes to the consolidated financial statements for
        the fiscal year ended January 31, 2010, included in the Corporation's
        Annual Report, which will become available on May 1, 2010 on the
        SEDAR website (at www.sedar.com).



    CONSOLIDATED BALANCE SHEETS

    At January 31,                                       (In thousands of $)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                                  Restated*
                                                           2010        2009
    -------------------------------------------------------------------------
                                                              $           $
    ASSETS
    Current
      Cash and cash equivalents                           5,770      22,490
      Short-term investments                             11,652       6,000
      Accounts receivable                                14,850      11,165
      Income taxes                                          442           -
      Holdbacks on contracts                              2,692       3,462
      Investment tax credits                                536           -
      Work in progress                                    1,574         628
      Inventories                                         3,093       3,271
      Prepaid expenses                                      334         660
      Derivative financial instruments                      832           -
      Future income tax assets                            3,182       6,666
    -------------------------------------------------------------------------
                                                         44,957      54,342
    Holdbacks on long-term contracts                      1,297       1,129
    Investment tax credits                                2,065       2,505
    Property, plant and equipment                        42,760      41,395
    Intangible assets                                     2,590       2,402
    Other assets                                            247         185
    Future income tax assets                              9,452      13,444
    -------------------------------------------------------------------------
                                                        103,368     115,402
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    LIABILITIES
    Current
      Accounts payable                                    1,955       5,170
      Accrued charges                                       994       4,716
      Salaries and fringe benefits payable                1,732       3,762
      Income taxes                                            -         226
      Deferred revenues                                   2,242       4,767
      Derivative financial instruments                        -       1,058
      Current portion of long-term debt                   2,422       3,018
    -------------------------------------------------------------------------
                                                          9,345      22,717
    Long-term debt                                        4,645       6,827
    Future income tax liabilities                           713          47
    -------------------------------------------------------------------------
                                                         14,703      29,591
    -------------------------------------------------------------------------
    Shareholders' equity
      Retained earnings                                   9,799       2,807
      Accumulated other comprehensive income                144         144
    -------------------------------------------------------------------------
                                                          9,943       2,951
      Capital stock                                      75,351      80,685
      Contributed surplus                                 3,371       2,175
    -------------------------------------------------------------------------
                                                         88,665      85,811
    -------------------------------------------------------------------------
                                                        103,368     115,402
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    * See the note at the bottom of page 5.



    CONSOLIDATED STATEMENTS OF CASH FLOWS

    Fiscal Years Ended January 31,                       (In thousands of $)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                           2010        2009
    -------------------------------------------------------------------------
                                                              $           $
    OPERATING REVENUES
      Net earnings                                        6,992      15,574
      Adjustments for:
        Amortization of property, plant and equipment     2,657       2,319
        Amortization of intangible assets                   400          53
        Gain on disposal of property, plant and equipment    (9)       (974)
        Unrealized (gain) loss on derivative financial
         instruments                                     (1,890)      1,058
        Non-cash exchange loss (gain)                     1,541      (1,992)
        Interest capitalized on long-term debt               20          19
        Stock-based compensation                            308         234
        Future income taxes                               6,045       8,258
    -------------------------------------------------------------------------
      Net earnings adjusted for non-monetary items       16,064      24,549
    -------------------------------------------------------------------------
      Changes in non-cash operating working capital items
        Accounts receivable                              (3,685)      6,712
        Short-term and long-term holdbacks on contracts     602      (1,088)
        Income taxes                                       (668)        407
        Investment tax credits                              (96)          -
        Work in progress                                   (946)        684
        Inventories                                         178        (720)
        Prepaid expenses                                    326        (394)
        Accounts payable, accrued charges, salaries
         and fringe benefits payable                     (8,967)      3,873
        Deferred revenues                                (2,525)     (1,299)
    -------------------------------------------------------------------------
                                                        (15,781)      8,175
    -------------------------------------------------------------------------
    Cash flows from operating activities                    283      32,724
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    INVESTING ACTIVITIES
      Acquisitions of short-term investments             (5,652)     (6,000)
      Acquisition of property, plant and equipment
       (net of grants of $444 in 2010 and $198 in 2009)  (4,046)     (8,623)
      Acquisition of intangible assets (net of grants
       of $126 in 2010)                                    (588)     (1,302)
      Proceeds from disposal of property, plant and
       equipment                                             33           -
      (Increase) decrease in other assets                   (62)          1
    -------------------------------------------------------------------------
    Cash flows applied to investing activities          (10,315)    (15,924)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    FINANCING ACTIVITIES
      Redemption of shares                               (4,533)          -
      Repayment of long-term debt                        (1,718)     (2,228)
      Issuance of subordinate voting shares                  87          68
    -------------------------------------------------------------------------
    Cash flows from financing activities                 (6,164)     (2,160)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Impact of fluctuations in foreign exchange rate
     on cash                                               (524)        164
    -------------------------------------------------------------------------
    Net cash (outflows) inflows                         (16,720)     14,804
    Cash and cash equivalents, beginning of year         22,490       7,686
    -------------------------------------------------------------------------
    Cash and cash equivalents, end of year(1)             5,770      22,490
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Supplemental cash flow information
      Income taxes paid                                     206         162
      Interest (received) paid                             (144)        397
      Non-cash financing and investing activities:
        Property, plant and equipment given in exchange
         for new equipment                                    -       2,261
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    1. At January 31, 2010, cash and cash equivalents were composed of
       $5,770,000 in cash ($17,690,000 in cash and $4,800,000 in cash
       equivalents as at January 31, 2009.)
    

SEGMENTED INFORMATION

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 installation of complex steel structures, heavy and oversized built-ups as well as miscellaneous and architectural metal work.

    
    Fiscal Years Ended January 31
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                           2010        2009
    -------------------------------------------------------------------------
                                                              $           $
    Revenues
      Canada                                             10,312       9,634
      United-States                                      55,428      89,217
    -------------------------------------------------------------------------
                                                         65,740      98,851
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    At January 31,
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                                  Restated*
                                                           2010        2009
    -------------------------------------------------------------------------
                                                              $           $
    Property, Plant and Equipment
      Canada                                             42,620      41,183
      United-States                                         140         212
    -------------------------------------------------------------------------
                                                         42,760      41,395
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    * See the note at the bottom of page 5.
    

During the fiscal year ended January 31, 2010, 70% of the Corporation's revenues were recorded with two clients (63% with two clients during the fiscal year ended January 31, 2009), each of which accounted for more than 10% of revenues.

SOURCE ADF Group Inc.

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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