Sigma Industries improves its operating profitability in the first quarter of fiscal 2009 and announces new contracts



    
    - EBITDA of $382,000 in the first quarter of fiscal 2009 as opposed to a
      loss a year earlier

    - Reduced net loss of $599,000 compared with $935,000 last year

    - New contracts representing additional sales of approximately
      $15.0 million
    

    QUEBEC CITY, Sept. 23 /CNW Telbec/ - Sigma Industries Inc. (TSX Venture
Exchange: SIC), a leading composite and metal products manufacturer, today
announced results for the first quarter of its 2009 fiscal year ended July 26,
2008.
    Sales reached $15.2 million compared with $18.8 million in the first
quarter last year. This decline is essentially attributable to lower sales to
the heavy-duty truck industry as well as the strength of the Canadian
currency. The contribution from Sigma OH for the quarter totalled
$1.4 million.
    Despite lower sales, first-quarter earnings before interest, taxes,
depreciation and amortization (EBITDA) amounted to $382,000 in fiscal 2008, as
opposed to a loss of $118,000 a year earlier. This improved profitability
stems from increased profitability resulting from earlier investments in
highly-automated and robotized equipment. EBITDA was reduced by approximately
$200,000 in non-recurring costs related to employee training required to
assimilate new manufacturing processes and new technologies implemented at
Sigma OH's facility. The strength of the Canadian dollar also reduced EBITDA
by $243,000.
    The Company significantly reduced its net loss which stood at $599,000,
or $0.014 per share, fully diluted, for the first quarter of fiscal 2009,
compared with a net loss of $935,000, or $0.022 per share, fully diluted, in
the first quarter of fiscal 2008.
    The Company's balance sheet continues to reflect a solid financial
position with a long-term debt, including its current portion, of
$19.6 million and shareholders' equity of $19.7 million. Cash flows from
operating activities before changes in non-cash working capital items reduced
liquidities by $202,000 compared with a reduction of $803,000 last year.
    "We are pleased with our productivity gains," said Denis Bertrand,
President and Chief Executive Officer. "This tangible progress further
validates our strategy to reduce costs through constant modernization of our
machinery and equipment. In addition, greater productivity will facilitate the
implementation of new technologies susceptible to create business
opportunities. Finally, there were encouraging signs of a recovery in the
heavy-duty truck industry, although the recovery was mainly limited to
manufacturers with which our business volume is of lesser importance."

    CONTRACTS TOTALLING ANNUAL SALES OF APPROXIMATELY $15.0 MILLION

    Sigma Industries has been awarded new long-term contracts to manufacture
composite parts for the bus and agricultural equipment industries. With a
three-year minimum duration, these contracts should generate annual sales of
approximately $15.0 million. Production of certain components started
recently, while it will begin shortly for remaining components.
    "These contracts clearly highlight our solid reputation as manufacturers
of high-quality composite products for all types of heavy vehicles. More
importantly, these contracts are perfectly in keeping with our strategic
objective to further diversify our operations. Combined with our recent
announcements about the upcoming marketing of our new Hybrid Composite Bus
Body and of our newly-created joint venture Sigma Compin Amérique, these new
contracts should enable to noticeably increase our sales and better absorb our
fixed operating expenses," concluded Mr. Bertrand.

    
    SELECTED FINANCIAL INFORMATION
                                           ----------------------------------
    Consolidated results of operations         Three-month periods ended
    (unaudited, in '000s of Cdn$, except   ----------------------------------
     per share amounts)                      July 26, 2008     July 28, 2007

                                                         $                 $
    Sales                                           15,209            18,780
    EBITDA                                             382              (118)
    Loss before income taxes                          (895)           (1,332)
    Net loss                                          (599)             (935)
    Net loss per share
      Basic                                         (0.014)           (0.022)
      Diluted                                       (0.014)           (0.022)
    -------------------------------------------------------------------------

    Reconciliation of EBITDA, EBITDAG and  ----------------------------------
     Net loss                                  Three-month periods ended
    (unaudited, in '000s of Cdn $)         ----------------------------------
                                             July 26, 2008     July 28, 2007

                                                         $                 $
    Net loss                                          (599)             (935)
    PLUS:
    Income tax recovery                               (296)             (397)
    Depreciation and amortization                      921               800
    Financial expenses                                 356               414
    EBITDA                                             382              (118)
    Foreign exchange loss (gain)                       (41)              101
    EBITDAG                                            341               (17)
    -------------------------------------------------------------------------
                                           ----------------------------------
                                                            As at
    Consolidated balance sheet data        ----------------------------------
    (in '000s of Canadian dollars)           July 26, 2008    April 26, 2008
                                                         $                 $
    Total assets                                    56,965            57,035
    Total liabilities                               37,261            36,722
    Shareholders' equity                            19,704            20,313
    -------------------------------------------------------------------------
    

    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, President and 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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