Sigma Industries concludes fiscal 2008 on a positive note



    
    - Net earnings of $602,000 in the fourth quarter of fiscal 2008
    - Fourth quarter EBITDA margin of 9.1% compared with 7.7% a year earlier
    - Future oriented towards development of environmentally-conscious
      products
    

    QUEBEC CITY, Aug. 25 /CNW Telbec/ - Sigma Industries Inc. (TSX Venture
Exchange: SIC), a leading composite and metal products manufacturer, today
announced results for its fourth quarter and fiscal year ended April 26, 2008.
A stronger Canadian dollar, a substantial decline in the heavy truck market
over the last twelve months following the introduction of new environmental
regulations regarding greenhouse gas emissions in January 2007 and the
economic slowdown impacted fiscal 2008 results. These factors offset the
contribution from the acquisitions of Pickens Plastics, since renamed Sigma OH
Industries Inc. ("Sigma OH") for the last two months of the fiscal year and of
the Acton Vale plant and Groupe Synergy Composites Inc. for the entire period.

    FOURTH QUARTER RESULTS

    For the fourth quarter ended April 26, 2008, sales reached $17.2 million
compared with $22.4 million in the fourth quarter last year. This decline is
essentially attributable to the decline in the heavy truck market, the
economic slowdown as well as the strength of the Canadian currency. The
contribution from Sigma OH for the last two months of the period amounted to
$0.9 million.
    Despite lower sales, fourth-quarter earnings before interest, taxes,
depreciation and amortization (EBITDA) amounted to $1.6 million in 2008, a
level comparable to $1.7 million achieved a year earlier. The strength of the
Canadian dollar reduced EBITDA by $0.3 million in the fourth quarter of fiscal
2008. As a percentage of sales, fourth-quarter EBITDA was 9.1% of sales
compared with 7.7% a year ago, an improvement resulting from the Company's
significant investments in automation and robotization in order to enhance its
productivity and further reduce operating costs. Of note, EBITDA as a
percentage of sales sequentially improved in the four quarters of fiscal 2008.
    The Company posted net earnings of $602,000, or $0.014 per diluted share,
for the fourth quarter of fiscal 2008, compared with $533,000, or $0.013 per
diluted share, for the same period a year earlier. For the fourth quarter
ended April 26, 2008, cash flows from operating activities before changes in
non-cash working capital items stood at $1.0 million, versus $0.1 million last
year.

    FISCAL 2008 RESULTS

    For fiscal 2008, sales reached $69.8 million, a decline of 16.1% in
comparison with sales $83.2 million recorded during fiscal 2007. This decrease
reflects lower activity in the heavy truck market as well as the impact of a
stronger Canadian dollar. Fiscal 2008 EBITDA stood at $2.3 million compared
with EBITDA of $9.4 million one year earlier. In addition to the business
slowdown in the heavy truck market, the strength of the Canadian dollar
reduced fiscal 2008 EBITDA by $1.2 million. The Company's net loss for fiscal
2008 was $0.6 million, or $0.013 per diluted share, as opposed to net earnings
of $3.7 million, or $0.099 per diluted share, in the previous fiscal year.
    "Although affected by the anticipated slowdown in the heavy truck market,
our operating profitability improved throughout the year," said Denis
Bertrand, President and Chief Executive Officer. "Our efforts to further
diversify our activities were successful. Sales of agricultural and industrial
products as well as of components for the rapidly-growing wind power market
represented more than 20% of sales in fiscal 2008 sales, a percentage nearly
twice as high as a year earlier. The acquisition of Sigma OH and the creation
of our joint venture, Compin Sigma Amérique, announced at the beginning of
fiscal 2009, are perfectly in keeping with our growth strategy."
    The Company's financial position remained solid at the end of fiscal 2008
with total net debt of $18.9 million and shareholders' equity of
$20.3 million. Fiscal 2008 cash flows from operating activities before changes
in non-cash working capital items totalled $1.1 million, compared with
$5.6 million a year earlier.

    FUTURE ORIENTED TOWARDS DEVELOPMENT OF ENVIRONMENTALLY-CONSCIOUS PRODUCTS

    Sigma intends to be a forerunner of the broad trends that will shape the
future. The Company's mission is therefore resolutely focussed on the
environment through the development of new natural resins and of technological
processes incorporating these materials.
    "The announcement, in May 2008, of the upcoming marketing of our new
Hybrid Composite Bus Body confirms our leading position in terms of
environmentally-conscious technological innovations. In fact, all partakers,
from original equipment manufacturers to transit operators, will enjoy the
benefits of this revolutionary, high value-added body shell. In addition, we
are actively pursuing our penetration of the fast-growing wind power market
and we now benefit from a greater production capacity to meet increasing
demand," concluded Mr. Bertrand.

    
    SELECTED FINANCIAL INFORMATION

                          -------------------------  ------------------------
    Consolidated results
     of operations        Three-month periods ended     Fiscal years ended
                          -------------------------  ------------------------
    (unaudited, in '000s
     of Cdn$, except per     April 26,    April 30,    April 26,    April 30,
     share amounts)              2008         2007         2008         2007

                                    $            $            $            $
    Sales                      17,186       22,398       69,769       83,161
    EBITDA                      1,560        1,714        2,294        9,416
    Earnings (loss)
     before income taxes          199          278       (1,401)       5,184
    Net earnings (loss)           602          533         (550)       3,651
    Net earnings (loss)
     per share
      Basic                     0.014        0.013       (0.013)       0.104
      Diluted                   0.014        0.013       (0.013)       0.099
    -------------------------------------------------------------------------


                          -------------------------  ------------------------
    Reconciliation of
     EBITDA, EBITDAG and
     Net earnings         Three-month periods ended     Fiscal years ended
                          -------------------------  ------------------------
    (unaudited, in '000s
     of Cdn $)               April 26,    April 30,    April 26,    April 30,
                                 2008         2007         2008         2007

                                    $            $            $            $
    Net earnings (loss)           602          533         (550)       3,651
    PLUS:
    Income tax expense
     (recovery)                  (403)        (254)        (850)       1,533
    Gain on insurance
     settlement                     -            -       (1,436)           -
    Depreciation and
     amortization                 868          975        3,287        2,509
    Financial expenses            493          460        1,843        1,723
    EBITDA                      1,560        1,714        2,294        9,416
    Foreign exchange loss
     (gain)                      (319)         157          (51)         (72)
    EBITDAG                     1,241        1,871        2,243        9,344
    -------------------------------------------------------------------------

                                                     ------------------------
    Consolidated balance sheet data                            As at
                                                     ------------------------
    (in '000s of Canadian dollars)                     April 26,    April 30,
                                                           2008         2007
                                                              $            $
    Total assets                                         57,035       59,381
    Total liabilities                                    36,722       38,617
    Shareholders' equity                                 20,313       20,764
    -------------------------------------------------------------------------
    

    NON-GAAP FINANCIAL MEASURES

    The information included in this press release contains certain
information which are not financial measures prescribed under GAAP. Sigma
Industries uses earnings before interest, taxes, depreciation and amortization
("EBITDA"), excluding the non-recurring gain on insurance settlement, in the
assessment of its financial performance. As there is no generally accepted
method of calculating this financial measure, it may not be comparable to
similar measures reported by other companies. EBITDA refers to earnings before
interest, income taxes, depreciation, amortization and other non-operating
expenses and revenues. This measure does not represent the cash flow for the
repayment of long-term debt, the payment of dividends, reinvestment or other
discretionary uses, and should not be considered in isolation or as a
substitute of other measures of performance calculated according to GAAP.

    ABOUT SIGMA INDUSTRIES

    Sigma Industries Inc. (TSX-V: SIC), a leading composite and metal
products manufacturer, has six operating subsidiaries and employs close to
550 people. The Company is active in the growing heavy-duty truck, coach,
transit and bus, train and subway, machinery, agriculture, light forestry, and
wind energy market segments. Sigma sells its products to original equipment
manufacturers and distributors in the United States, Canada and Europe.
    Sigma has had a recent history of steady growth and accretive
acquisitions. Its recent and planned growth initiatives are expected to
continue to raise Sigma's profile with investors.

    FORWARD-LOOKING STATEMENTS

    This press release contains certain forward-looking statements with
respect to the Company. Such forward-looking statements are dependent upon a
certain number of factors and are subject to risks and uncertainties. Actual
results may differ from those expected. The information contained in this
press release is dated August 22, 2008, the date on which the Directors
approved the press release. Management does not assume any obligation to
update or revise any forward-looking statements, whether as a result of new
information or future events, except when required by the regulatory
authorities.

    Note to readers: Complete unaudited interim consolidated financial
    statements and Management's Discussion & Analysis of Financial Position
    and Operating Results were posted on SEDAR and are available at
    www.sedar.com.

    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.




For further information:

For further information: Denis Bertrand, Chief Executive Officer, Sigma
Industries Inc., (418) 780-3902, denis.bertrand@sigmaventures.ca; Bertrand
Côté, Chief Financial Officer, Sigma Industries Inc., (418) 780-3903,
bertrand.cote@sigmaventures.ca; Martin Goulet, CFA, MaisonBrison, (514)
731-0000, martin@maisonbrison.com

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