Sigma Industries reports fiscal 2009 year-end results



    QUEBEC CITY, Aug. 20 /CNW Telbec/ - Sigma Industries Inc. (TSX Venture
Exchange: SIC), a manufacturing company specialized in the production of
composite and metal components, today announced results for the fourth quarter
and fiscal year ended April 25, 2009.

    FOURTH-QUARTER RESULTS

    Sales reached $11.3 million, down 34.5% from $17.2 million in the fourth
quarter last year. The decline is mainly attributable to the economic slowdown
that resulted in lower activity in the heavy-duty truck and industrial product
markets, as well as to lower sales of snow removal and agricultural products
following the Company's decision to focus on the most profitable products.
Conversely, sales to the bus market tripled to reach $2.2 million as a result
of new contracts.
    The Company reported an adjusted loss before interest, taxes,
depreciation and amortization of $489,743, as opposed to adjusted earnings
before interest, taxes, depreciation and amortization (EBITDA) of $1.6 million
a year earlier. This reduction stems from a lower sales volume that had a
negative influence on fixed cost absorption. As in previous quarters, Canadian
operations were profitable, while the adjusted loss before interest, taxes,
depreciation and amortization was entirely attributable to Sigma US, the
Company's self-sustaining US subsidiary.
    The net loss amounted to $402,150, or $0.009 per share, fully diluted, in
the fourth quarter of fiscal 2009, compared with net earnings of $602,185, or
$0.014 per share, fully diluted, in the fourth quarter of fiscal 2008. Despite
a net lost in the most recent quarter, it was nevertheless the lowest one of
the fiscal year.
    "Encouraging signs of operating profitability improvements were revealed
at year end as a result of our cost reduction measures," mentioned Denis
Bertrand, President and Chief Executive Officer. "This being said, we will
continue to tightly manage our costs in order to return to profitability as
soon as possible and strengthen our balance sheet."

    FISCAL 2009 RESULTS

    For the fiscal year ended April 25, 2009, sales reached $57.5 million
compared with $69.8 million a year earlier. The Company posted an adjusted
loss before interest, taxes, depreciation and amortization of $3.8 million
versus an adjusted EBITDA of $2.3 million last year. Given non-recurring
charges of $3.5 million ad restructuring costs of $554,356 incurred in fiscal
2009, the year ended with a net loss of $10.1 million compared with a loss of
$550,438 in fiscal 2008, which also included a gain on insurance settlement of
$1.4 million before taxes
    The Company's balance sheet showed total net debt of $25.3 million at the
end of fiscal 2009, similar to the previous quarter. As at April 25, 2009,
main financial ratios were met. In April 2009, the Company negotiated a
$5.0-million term loan with Investissement Québec as part of the Renfort
program launched in December 2008 by the Québec Department of Economic
Development, Innovation and Export Trade. Proceeds from this financing were
used to reimburse a portion of short-term bank loans. Management nevertheless
continues to proactively assess all operational aspects of the Company as well
as its global cost structure in order to foster net cash flow generation.

    OUTLOOK

    "Given better production capacity utilization, any production schedule
increase in our target markets will have a direct and positive impact on our
results. We perceive attractive opportunities in the heavy equipment and truck
markets and we intend to advantageously position ourselves for the recovery in
these markets through our innovative technical solutions. We aim to broaden
our reach with respect to composite flooring as well as through various
sub-assemblies in order to offer our customers enhanced value-added.
Nevertheless, given the fragile economic environment, we are maintaining a
prudent approach, as we enter fiscal 2010," concluded Mr. Bertrand.

    
    SELECTED FINANCIAL INFORMATION

                                     -------------------  -------------------
    Consolidated results of              Three-month             Fiscal
     operations                         periods ended         years ended
    (unaudited, in '000s of          -------------------  -------------------
     Cdn$, except per share          April 25, April 26,  April 25, April 26,
     figures)                            2009      2008       2009      2008
                                            $         $          $         $
    Sales                              11,257    17,186     57,483    69,769
    Adjusted EBITDA                      (489)    1,560     (3,795)    2,294
    Restructuring costs                    (6)        0        554         0
    Other non-cash charges                (40)        0      3,455         0
    Gain on insurance settlement            0         0          0    (1,436)
    Other-than-temporary loss in
     value on short-term investment        62         0         62         0
                                        ------    ------     ------    ------
    Loss before income taxes           (1,707)      199    (13,020)   (1,401)
    Net loss                             (402)      602    (10,067)     (550)
    Net loss per share
     (basic and diluted)               (0.009)    0.014     (0.235)   (0.013)
    -------------------------------------------------------------------------

                                     -------------------  -------------------
    Reconciliation of Adjusted           Three-month             Fiscal
     EBITDA and Net earnings (net       periods ended         years ended
     loss)                          -------------------  -------------------
    (unaudited, in '000s of Cdn $)   April 25, April 26,  April 25, April 26,
                                         2009      2008       2009      2008
                                            $         $          $         $
    Net loss                             (402)      602    (10,067)     (550)
    PLUS:
    Income tax recovery                (1,305)     (403)    (2,953)     (850)
    Gain on insurance settlement            0         0          0    (1,436)
    Depreciation and amortization         685       868      3,413     3,287
    Financial expenses                    517       493      1,741     1,843
    Other non-cash charges                (40)        0      3,455         0
    Restructuring costs                    (6)        0        554         0
    Other-than-temporary loss in
     value on short-term investment        62         0         62         0
                                        ------    ------     ------    ------
    Adjusted EBITDA                      (489)    1,560     (3,795)    2,294
    -------------------------------------------------------------------------

                                     -------------------
    Consolidated balance sheet data         As at
                                     -------------------
    (in '000s of Canadian dollars)   April 25, April 26,
                                         2009      2008
                                            $         $
    Total assets                       46,558    57,035
    Total liabilities                  36,927    36,722
    Shareholders' equity                9,631    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 adjusted 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. Adjusted 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 manufacturing company specialized
in the production of composite and metal components, has five operating
subsidiaries and employs close to 350 people. The Company is active in the
heavy-duty truck, coach, transit and bus, train and subway, machinery,
agriculture, and wind energy market segments. Sigma sells its products to
original equipment manufacturers and distributors in the United States, Canada
and Europe.

    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 20, 2009, 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 law.

    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@sigmaindustries.ca; Bertrand Côté, Chief Financial Officer,
Sigma Industries Inc., (418) 780-3903, bertrand.cote@sigmaindustries.ca;
Martin Goulet, CFA, MaisonBrison, (514) 731-0000, martin@maisonbrison.com

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