MONTREAL, May 13, 2013 /CNW Telbec/ - 5N Plus Inc. (TSX: VNP), the leading producer of specialty metal and chemical products, today reported financial results for the first quarter ended March 31, 2013.
- EBITDA1 for the first quarter 2013 reached the highest level in four quarters lying at $10.1 million. This compares with an EBITDA of $16.9 million for the first quarter of 2012.
- Net debt1 decreased to $125.8 million down from $136.5 million on December 31, 2012 and $232.1 million on March 31, 2012. Total debt also decreased to $140.3 million down from $148.4 million on December 31, 2012 and $278.1 million on March 31, 2012.
- Net earnings for the first quarter 2013 reached $5.5 million or $0.07 per share and adjusted net earnings1 $6.3 million or $0.08 per share. Comparative figures for the first quarter 2012 were $4.9 million or $0.07 per share and $5.3 million or $0.07 per share.
- Revenues for the first quarter 2013 and the first quarter 2012 were $118.4 million and $162.2 million respectively following a trend of decreasing underlying commodity pricing.
- Similarly the backlog1 of orders expected to translate into sales over the following twelve months decreased to $166.3 million as at March 31, 2013 compared to $215.6 million one year earlier but remained approximately constant on a quarter-over-quarter basis at $165.8 million.
Jacques L'Ecuyer, President and Chief Executive Officer, said "Earnings and EBITDA recovered during the quarter despite the fact that the Company still holds a significant proportion of inventories which are fully valued and the costs incurred in the restructuring of a portion of the business which is the subject of the dispute with former shareholders and directors of MCP Group."
Mr. L'Ecuyer continued, "The quarter was generally characterized by healthy demand for most products which is expected in the first quarter of the year as customers replenish stock levels following year-end. Backlog and revenues were negatively impacted in the quarter by the decrease in the underlying commodity pricing but were otherwise very much in line with sales volumes for the previous fiscal year."
Mr. L'Ecuyer concluded, "We continue to focus on improving efficiency throughout the group and at reducing costs as previously announced and we remain cautiously optimistic about future prospects."
5N Plus will host a conference call on Tuesday, May 14, 2013 at 8:00 am ET with financial analysts to discuss results of the first quarter ended March 31, 2013. All interested parties are invited to participate in the live broadcast on the Company's Web site at www.5nplus.com. A replay of the webcast and a recording of the Q&A will be available until May 21, 2013.
To participate in the conference call:
- Montreal area: 514-807-9895
- Toronto area: 647-427-7450
- Toll-Free: 1- 888-231-8191
Enter access code 68998936.
Adjusted net earnings means the net earnings (loss) before the effect of charge and reversal of impairment related to inventory, PPE and intangible assets, litigation and restructuring costs and acquisitions costs net of the related income tax. We use adjusted net earnings (loss) because we believe it is a meaningful measure of the operating performance of our ongoing business without the effects of unusual inventory write-downs and property plant and equipment and intangible asset impairment charges, litigation and restructuring costs and acquisition costs. The definition of this non-IFRS measure used by the Company may differ from that used by other companies.
Backlog represents the expected value of orders we have received but have not yet executed and that are expected to translate into sales within the next 12 months. Bookings represents the value of orders received during the period considered and is calculated by adding revenues to the increase or decrease in backlog for the period considered. We use backlog to provide an indication of expected future revenues, and bookings to determine our ability to sustain and increase our revenues.
EBITDA means net earnings (loss) before financial expenses (income), income taxes, depreciation and amortization, impairment or reversal of impairment of property plant and equipment, litigation and restructuring costs and acquisition-related costs. We use EBITDA because we believe it is a meaningful measure of the operating performance of our ongoing business without the effects of certain expenses. The definition of this non-IFRS measure used by the Company may differ from that used by other companies.
Adjusted EBITDA means EBITDA as defined above before impairment of inventories. We use adjusted EBITDA because we believe it is a meaningful measure of the operating performance of our ongoing business without the effects of inventory write-downs. The definition of this non-IFRS measure used by the Company may differ from that used by other companies.
Funds from operations means the amount of cash generated from operating activities before changes in non-cash working capital balances related to operations. This amount appears directly in the consolidated statements of cash flows of the Company. We consider funds from operations to be a key measure as it demonstrates the Company's ability to generate cash necessary for future growth and debt repayment.
Net debt or net cash is a measure we use to monitor how much debt we have after taking into account cash and cash equivalents and temporary investments. We use it as an indicator of our overall financial position, and calculate it by taking our total debt, including the current portion, and subtracting cash and cash equivalents and temporary investments.
About 5N Plus Inc.
5N Plus is the leading producer of specialty metal and chemical products. Fully integrated with closed-loop recycling facilities, the Company is headquartered in Montreal, Québec, Canada and operates manufacturing facilities and sales offices in several locations in Europe, the Americas and Asia. 5N Plus deploys a range of proprietary and proven technologies to produce products which are used in a number of advanced pharmaceutical, electronic and industrial applications. Typical products include purified metals such as bismuth, gallium, germanium, indium, selenium and tellurium, inorganic chemicals based on such metals and compound semiconductor wafers. Many of these are critical precursors and key enablers in markets such as solar, light-emitting diodes and eco-friendly materials.
Forward-Looking Statements and Disclaimer
This press release may contain forward-looking information within the meaning of applicable securities laws. All information and statements other than statements of historical facts contained in this press release are forward-looking information. Such statements and information may be identified by words such as "about", "approximately", "may", "believes", "expects", "will", "intends", "should", "plans", "predicts", "potential", "projects", "anticipates", "estimates", "continues" or similar words or the negative thereof or other comparable terminology. Forward-looking statements are based on the best estimates available to 5N Plus at this time and involve known and unknown risks, uncertainties and other factors that may cause 5N Plus' actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. A description of the risks affecting 5N Plus' business and activities appears under the heading "Risks and Uncertainties" in Management's Discussion and Analysis for the fiscal year ended December 31, 2012 and Note 13 of the unaudited interim condensed consolidated financial statements for the three-month periods ended March 31, 2013 and 2012 available on SEDAR at www.sedar.com. No assurance can be given that any events anticipated by the forward-looking information in this press release will transpire or occur, or if any of them do so, what benefits that 5N Plus will derive therefrom. In particular, no assurance can be given as to the future financial performance of 5N Plus. The forward-looking information contained in this press release is made as of the date hereof and 5N Plus undertakes no obligation to publicly update such forward-looking information to reflect new information, subsequent or otherwise, unless required by applicable securities laws. The reader is warned against placing undue reliance on these forward-looking statements.
5N PLUS INC.
UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF EARNINGS
For the three-month periods ended March 31, 2013 and 2012
(Figures in thousands of United States dollars, except per share information)
| March 31,
| March 31,
|Cost of sales||99,388||132,247|
|Selling, general and administrative expenses||9,627||12,012|
|Other expenses, net||2,978||6,521|
|Share of loss from joint ventures||136||164|
|Financial expenses (income)|
|Interest on long-term debt||1,842||2,386|
|Other interest expense||1,470||611|
|Foreign exchange and derivative (gain) loss||(3,017)||1,682|
|Earnings before income tax||5,965||6,612|
|Net earnings for the period||5,538||4,891|
|Equity holders of 5N Plus Inc.||5,371||4,972|
|Earnings per share attributable to equity holders of 5N Plus Inc.||0.06||0.07|
|Basic earnings per share||0.07||0.07|
|Diluted earnings per share||0.07||0.07|
5N PLUS INC.
UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(Figures in thousands of United States dollars)
|As at March 31, 2013||As at December 31, 2012|
|Cash and cash equivalents||12,221||9,535|
|Temporary investments (restricted)||2,286||2,357|
|Income tax receivable||14,814||18,931|
|Derivative financial assets||1,262||-|
|Other current assets||2,407||2,514|
|Total current assets||287,394||291,437|
|Property, plant and equipment||55,377||55,548|
|Deferred tax asset||11,652||12,650|
|Investments accounted for using the equity method||367||503|
|Total non-current assets||88,479||93,959|
|LIABILITIES AND EQUITY|
|Bank indebtedness and short-term debt||11,152||8,014|
|Trade and accrued liabilities||57,775||62,214|
|Income tax payable||1,244||2,217|
|Derivative financial liabilities||1,639||2,817|
|Long-term debt due within one year||28,713||29,527|
|Total current liabilities||100,523||104,789|
|Deferred tax liability||2,712||2,632|
|Retirement benefit obligation||16,493||16,667|
|Derivative financial liabilities||2,870||3,537|
|Total non-current liabilities||124,226||135,294|
|Total liabilities and equity||375,873||385,396|
5N PLUS INC.
|Q1 2013||Q1 2012||% Change|
|Funds from operations1||4,608||11,236||-59%|
|Net changes in non-cash working capital items||6,244||26,971||-77%|
|Effect of foreign exchange rate changes on cash and cash equivalents related to operations||460||(423)||209%|
|Net increase (decrease) in cash and cash equivalents||2,686||(17,405)||115%|
|Revenues by Segment|
|Q1 2013||Q1 2012||% Change|
|Electronic Materials Segment||48,356||73,365||-34%|
|Eco-Friendly Materials Segment||70,033||88,870||-21%|
|Q1 2013||Q1 2012||% Change|
|Impairment of inventory||-||-||-|
|Bookings and Backlog|
|Q1 2013||Q4 2012||Q1 2012||Q1 2013||Q4 2012||Q1 2012|
|Electronic Materials Segment||92,797||100,718||133,747||40,435||59,342||57,073|
|Eco-Friendly Materials Segment||73,493||65,071||81,841||78,455||72,744||97,573|
1 See Non-IFRS Measures
SOURCE: 5N PLUS INC.
For further information:
Vice President, Legal Affairs and Corporate Secretary
5N Plus Inc.
(514) 856-0644 x6178