TERREBONNE, QC, June 12, 2013 /CNW Telbec/ - ADF GROUP INC. ("ADF" or the "Corporation") (DRX: TSX) closed the first quarter of the
2014 fiscal year with revenues of $12.3 million compared with $12.5
million during the same period the previous fiscal year.
As a percentage of revenues, the gross margin decreased from 14.7%
during the three-month period ended April 30, 2012 to 11.3% during the
three-month period ended April 30, 2013. This decrease is mainly
explained by the fact that the newly signed contracts, which are
currently in their early execution stage, carry lower margins than
those generated last year by the World Trade Center projects. It should
be noted that the gross profit margin for the quarter ended April 30,
2013, which was similar to those of the past quarters, also reflects
the persistent pressure exerted on prices in ADF's markets.
The Corporation closed the first quarter ended April 30, 2013 with a
negative net income of $0.3 million ($0.01 basic and diluted per
share), as opposed to a slight net income of $0.1 million ($0.00 basic
and diluted per share) in the same period the previous year.
During the first quarter, the Corporation's operating activities
generated liquidities of $62,000. As at April 30, 2013, the Corporation
had working capital of $31.4 million, of which $23.0 million in
short-term available liquidities (cash, cash equivalents and short-term
investments). Available liquidities thus exceeded the Corporation's
total debt by $20.0 million, placing the Corporation in a solid
position to support its ongoing operations, carry out its development
projects and remunerate its shareholders in accordance with the
dividend payment policy implemented at the beginning of fiscal 2012.
Three-Month Periods Ended April 30,
(In thousands of dollars, and dollars per share)
— Per share (basic and diluted)
Cash flows from operating activities
Average number of outstanding shares (basic, in thousands)
Average number of outstanding shares (diluted, in thousands)
On March 20, 2013, ADF announced the award of a $46.6 million contract
for the fabrication and installation of the steel structure for Quebec
City's future multipurpose amphitheatre. This contract will contribute
to the Corporation's results as of the second half of the current
fiscal year, in view of its final delivery scheduled for the second
quarter of the 2015 fiscal year.
ADF Group's order backlog reached $72.0 million as of April 30, 2013
compared with $34.0 million on January 31, 2013.
"During the third quarter ended April 30, 2013, in addition to
increasing our backlog, we also achieved significant progress in regard
to our plan to set up a fabrication plant in Great Falls, Montana. The
site layout work and construction of the infrastructures are underway
and we have already hired key personnel. We still aim to bring our new
facility on-stream by early 2014" added Mr. Jean Paschini, Chairman of the Board and Chief Executive Officer.
"As we are witnessing early signs of a recovery in several of our key
markets in North America, we are stepping up our efforts to build up
the order backlogs of both our Terrebonne plant and future Great Falls
plants, in order for further strengthen ADF's position for the next
economic upturn", concluded Mr. Paschini.
On April 10, 2013, the Corporation's Board of Directors approved the
payment of a semi-annual dividend of $0.01 per share, which was paid on
May 17, 2013 to shareholders of record as at April 30, 2013.
Annual Meeting of Shareholders
ADF Group's Annual Meeting of Shareholders will take place this morning,
June 12, 2013 at 11:00 am at the Sheraton Hotel in Laval.
About ADF Group Inc.
ADF Group Inc. is a North American leader in the design and engineering
of connections, fabrication and installation of complex steel
structures, heavy steel built-ups, as well as in miscellaneous and
architectural metals for the non residential construction industry. ADF
Group Inc. 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
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
Earnings before interest, taxes, depreciation and amortization
("EBITDA") is not a performance measure recognized by IFRS standards,
and is not likely to be comparable to similar measures presented by
other issuers. Management, as well as investors, consider this to be
useful information to assist them in assessing the Corporation's
profitability and ability to generate funds to finance its operations.
All amounts are in Canadian dollars, unless otherwise indicated.
CONFERENCE CALL WITH INVESTORS
To discuss ADF Group's results for the first quarter ended April 30,
Wednesday, June 12, 2013 at 10:00 a.m. (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
Wednesday, June 12, 2013 at 1:00 p.m. until midnight Wednesday, June 19,
by dialing 1-855-859-2056; access code 76451277.
The conference call (audio) will also be available at www.adfgroup.com
Members of the media are invited to listen in.
SOURCE: ADF Group Inc.
For further information:
Jean Paschini, Chairman of the Board of Directors and Chief Executive Officer
Jean-François Boursier, CPA, CA, Chief Financial Officer
Telephone: (450) 965-1911 / 1 (800) 263-7560
Web Site: www.adfgroup.com