For the fourth quarter 2012
Revenues of $173.6 million compared with $168.2 million for the corresponding quarter of
Negative EBITDA of ($2.7 million) and normalized EBITDA of $2.3 million compared with year-over-year levels of $8.9 million and $7.4 million,
$40.9 million impairment charge against goodwill and intangible assets, of which
$23.7 million is attributable to the desalination segment,
$15.6 million to the Industrial segment and $1.6 million to the Other
Net loss and net loss related to continuing operations attributable to
shareholders of GLV Inc. of ($52.8 million) compared with ($8.2 million) and ($4.9 million), respectively, for the
corresponding quarter of fiscal 2011
Normalized net loss attributable to shareholders of GLV Inc. of ($7.0 million) or ($0.16) per share, basic and diluted compared with ($5.8 million) and ($0.13),
respectively, for the corresponding quarter of fiscal 2011
For the twelve-month period ended March 31, 2012
Revenues of $659.6 million compared with $663.8 million for the corresponding period of
EBITDA of $14.4 million and normalized EBITDA of $20.5 million compared with year-over-year levels of $21.0 million and $20.4 million,
Net loss and net loss related to continuing operations attributable to
shareholders of GLV Inc. of ($54.1 million) compared with ($23.2 million) and ($12.3 million), respectively, for
the corresponding period of fiscal 2011
Normalized net loss attributable to shareholders of GLV Inc. of ($7.1 million) or ($0.16) per share, basic and diluted compared with ($12.5 million) and ($0.28),
respectively, for the corresponding period of fiscal 2011
Datas as at March 31, 2012
Total net debt to invested capital ratio of 19.6% compared with 18.9% as at March 31, 2011
Working capital ratio of 1.53 compared with 1.53 as at March 31, 2011
Backlog of $354.8 million compared with $396.1 million as at December 31, 2011 and $372.2 million
as at March 31, 2011
MONTREAL, June 7, 2012 /CNW Telbec/ - (All amounts are in Canadian dollars)
GLV Inc. (the "Corporation") (TSX: GLV.A GLV.B) released its results today for
the fourth quarter and fiscal 2012, ended March 31, 2012. Those results
are presented in accordance with International Financial Reporting
Standards ("IFRS") as of the first quarter of fiscal 2012. The previous
year's results and data have been restated.
This press release presents the highlights of the fourth quarter and
fiscal 2012, ended March 31, 2012. For a detailed analysis, see the
management's discussion and analysis (MD&A) and consolidated financial
statements, filed today on the websites of SEDAR (www.sedar.com) and the Corporation (www.glv.com). Note that non-IFRS financial measures have been used to analyze
For the quarter ended March 31, 2012, Ovivo's performance fell short of
management's expectations but was partly offset by the Pulp and Paper
Group's good results. Disappointing results at three Ovivo divisions had a significant impact
on performance. The food and beverage processing division and a
European desalination unit recognized additional costs to complete
major contracts. In addition, the Canadian municipal segment division
posted losses due to low operating margins on certain contracts and
lower business volume. As explained below, streamlining measures have been implemented in these
entities and management is confident that these measures will improve
profitability in the coming quarters.
The streamlining measures implemented by GLV during the fourth quarter
of 2012 in its two core operating groups - Ovivo and the Pulp and Paper
Group - will generate annual cost savings of approximately $5 million.
These measures mainly consist in eliminating positions in North
America, Europe and Asia-Pacific. Given the global economic conditions
that impacted the Corporation's results for the second half of the year
and the level of its backlog as at March 31, 2012, management
considered these initiatives to be necessary. A restructuring charge of
$4.9 million was recognized in the fourth quarter of fiscal 2012,
primarily due to these measures, in addition to the $1.2 million
expense recorded in the past two quarters mainly for a subsidiary in
the desalination segment. Restructuring costs for fiscal 2012 total
$6.1 million. During fiscal 2013, we will continue to review the
operational performance and future outlook for certain units. Further
initiatives to generate greater synergies could be introduced.
The Corporation also recorded a $40.9 million impairment charge against
goodwill and intangible assets, of which $23.7 million is attributable
to the desalination segment, $15.6 million to the Industrial segment
and $1.6 million to the Other group. As this amount is a non-cash
charge, it has no impact on the Corporation's liquidity.
The energy, microelectronics and U.S. municipal segments met or exceeded
the profitability targets set by management. These divisions are
important for Ovivo and play a significant role in the Corporation's
growth and performance strategy.
As mentioned during previous quarters, the desalination segment faced
major challenges due to contracts with significantly negative margins
arising from the acquisition of Christ Water Technology ("CWT"). Since
the end of the first quarter of fiscal 2012, management has implemented
new policies for order taking in this segment. Its future development
will focus mainly on the supply of technological solutions and
equipment, and to a lesser extent on the supply of turnkey contracts
for which the execution risks are considered reasonable, allowing the
Corporation to reduce overall risk related to contract execution.
With respect to the Industrial segment, goodwill was written down
following significantly negative results in certain divisions and
persistent economic uncertainty in some of our markets.
For fiscal 2012 as a whole, despite lower revenues, normalized EBITDA is
comparable to the previous year level, driven by sustained performance
from the Pulp and Paper Group, improved results at the Van der Molen
division and head office cost savings. For Ovivo, in addition to the disappointing fourth quarter performance
mentioned above, results for previous quarters were also impacted by
the finalization of CWT legacy contracts in the desalination segment.
Management continues to closely monitor the sole remaining contract
which is near completion.
As at March 30, 2012, the Corporation had sold its investment in a
manufacturing subsidiary located in Austria whose activities were not
aligned with the corporate strategy. In addition to the impairment
charge against the related intangible assets, a $0.3 million loss on
disposal was recognized in the fourth quarter.
On December 19, 2011, the Corporation renewed its main financing
agreement, which was up for renewal in August 2012, for the next five
years. This multi‐jurisdictional and multi‐currency financing totals
$200 million and consists of a $100 million revolving credit facility
to meet the Corporation's day-to-day financing requirements, issue
letters of credit and finance business acquisitions, and a second
$100 million revolving credit facility to issue letters of credit
guaranteed by Export and Development Canada ("EDC"). The financing
agreement also includes an uncommitted accordion feature providing
access to an additional $50 million, providing the Corporation with the
flexibility it needs to pursue its growth strategy. Renewal costs of
$1.1 million were recognized through earnings in the third quarter as
financial expenses. As at March 31, 2012, all of the financial ratios
were in compliance with the requirements set out in current credit
agreements with different banking institutions.
As at March 31, 2012, the backlog stood at $354.8 million, down from
$396.1 million as at December 31, 2011 and $372.2 million as at
March 31, 2011. The decline in the backlog from its level as at
December 31, 2011 is mainly attributable to Ovivo's Industrial and U.S.
municipal segments. Compared with March 31, 2011, the backlog decline
was also significant for Ovivo's U.S. municipal segment, the
microelectronic market and the petrochemical and pulp and paper
divisions. The Pulp and Paper Group's backlog is up from the same date
last year and is comparable to the previous quarter level.
For fiscal 2013 as a whole, assuming exchange rates remain stable at
current levels and in light of the outlook in the markets serviced by
each group, the Corporation expects consolidated revenues to range from
$620 million to $670 million.
Moreover, the Corporation announces important organizational changes in
its leadership team. Marc Barbeau who has served as Executive
Vice-President and Chief Financial Officer of GLV Inc. since February
2007 is appointed president of Ovivo, position that was held by interim
up to now by Richard Verreault, President and Chief Executive Officer
of GLV Inc. Thereby, France De Blois, Vice-President, Accounting of the
Corporation since 2010 is promoted as Chief Financial Officer of GLV
Inc. A separate press release issued today provides more details in
About GLV Inc.
GLV Inc. is a leading global provider of water treatment technological
solutions, under the Ovivo brand, as well as technological solutions
used in pulp and paper production. The Corporation operates in some
20 countries with approximately 2,300 employees. GLV is a public
company whose shares trade on the Toronto Stock Exchange (TSX) under
the ticker symbols GLV.A and GLV.B; it is a constituent of the S&P/TSX
Clean Technology Index.
Notice regarding forward-looking statements
Certain statements in this press release regarding management's
objectives, projections, estimates, expectations or forecasts may
constitute forward-looking statements within the meaning of applicable
securities legislation. Forward-looking statements are recognized by
the use of terms such as "forecast," "project," "could," "plan," "aim,"
"estimate" and other similar terms, possibly used in the future or
conditional, particularly with regard to certain assumptions. The
management of GLV would like to point out that forward-looking
statements involve a number of uncertainties and known and unknown
risks such that GLV's actual and future results could differ
considerably from those stated. There can be no assurance as to the
materialization of the results, performance or achievements as
expressed in or underlying the forward-looking statements. The
forward-looking statements included in this press release were made as
of the date hereof, and unless required to do so pursuant to applicable
securities legislation, management of GLV assumes no obligation to
Additional information about the risk factors to which GLV is exposed is
provided under section 10, "Risks and uncertainties" in the MD&A for
the fiscal year ended March 31, 2012 available on SEDAR (www.sedar.com) and the Corporation's website (www.glv.com).
Date and time: Thursday, June 7, 2012 at 2 p.m. (EST)
1-888-231-8191 (North America)
An audio webcast of the conference call will be streamed live on www.glv.com. An audio recording will be accessible on demand from 5 p.m. (EST)
June 7, 2012 until midnight June 14, 2012 at 1-855-859-2056
(1-416-849-0833-International, access code: 80575811#).
SOURCE GLV INC.
For further information:
Investors and media:
Executive Vice-President and Chief Financial Officer
Tel.: +1 514-284-2224