5N Plus Inc. Reports First Quarter Results for Fiscal Year 2011
MONTREAL, Oct. 5 /CNW Telbec/ - 5N Plus Inc. (TSX:VNP), a leading producer and provider of high-purity metals and compounds for electronic applications, today reported financial results for its first quarter ended August 31, 2010.
Sales for the first quarter ended August 31, 2010, increased by 16.9% to $18,770,228 compared to $16,053,220 for the first quarter of the previous fiscal year.
Net earnings for the first quarter were $4,033,224 ($0.09 per share), representing a 33.8% increase over net earnings of $3,014,608 ($0.07 per share) for the same period last year.
EBITDA(1) for the first quarter was $6,260,433, representing an increase of 24% compared to EBITDA of $5,049,538 for the first quarter of the previous fiscal year.
The backlog(2) of orders expected to translate into sales over the following twelve months stood at $57,423,649 as at August 31, 2010 compared to $56,277,503 a year ago. Changes in currency exchange rates had an adverse impact of approximately $4 million on the backlog.
The Company's financial position remains solid, with cash and cash equivalents of $64,000,238 as at August 31, 2010 compared to $67,992,321 as at May 31, 2010. Shareholders' equity also increased during the first quarter to $130,197,617 up from 125,678,537 as at May 31, 2010.
The Company is now also part of the S&P/TSX Small Cap Index as of September 17, 2010 and the S&P/TSX Clean Technology Index as of September 20, 2010.
Jacques L'Ecuyer, President and Chief Executive Officer, said "The results of our first fiscal quarter ended August 31, 2010 are in line with those of the previous quarters in terms of sales and profitability. Demand for our solar grade products remained strong throughout the quarter, although growth in overall sales revenues was driven primarily by our non-solar grade products, including those of our Firebird subsidiary. A further increase in the coming quarters for such non-solar products is expected, as our new Firebird facility is gradually brought up to speed."
Mr. L'Ecuyer continued, "Further strengthening in the demand for our solar products is also expected following recent capacity expansion announcements made by our main customer, as well as by the supply agreements we recently entered into with other CdTe solar module manufacturers, including Abound Solar. We are also extending the range of services offered to our solar customers to include full module recycling services, which will be soon be carried out in our new facility in Madison, Wisconsin, in an effort to address all key customer requirements."
Mr. L'Ecuyer concluded, "Consistent with our growth strategy, we also elected during the quarter to provide financing to Sylarus, one of the very few germanium substrate suppliers for high-efficiency solar cells in both space and terrestrial applications. This is an area of the solar market that we were not addressing through our existing product offering. As a result we expect to further strengthen our germanium related activities and leverage Firebird's line of products."
The unaudited consolidated financial statements of 5N Plus, as well as the Management's Report for the first quarter ended August 31, 2010 are available on the 5N Plus website, at www.5nplus.com and at www.sedar.com.
Webcast Information
The Company will host a conference call at 10:00 AM Eastern Time on Wednesday, October 6, 2010 with financial analysts to discuss the first quarter ended August 31, 2010. 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 October 29, 2010.
About 5N Plus Inc.
5N Plus Inc. draws its name from the purity of its products, 99.999% (five nines or 5N) and more. We have our head office in Montreal, Québec, and own two material subsidiaries which are 5N PV GmbH located in Eisenhuttenstadt, Germany and Firebird Technologies Inc. located in Trail, Canada. 5N Plus is a fully integrated producer and closed-loop recycler of highly purified metals and compounds. We use a range of proprietary and proven technologies to produce metals such as tellurium, cadmium, germanium, indium, antimony, selenium and related compounds such as cadmium telluride ("CdTe"), cadmium sulphide ("CdS") and indium antimonide ("InSb"). Our products are critical precursors that customers use in a number of electronic applications, including the rapidly-expanding solar (thin-film photovoltaic) market, for which we are a major supplier of CdTe, as well as the radiation detector and infrared markets.
Forward-Looking Statements and Disclaimer
Certain statements in this press release may be forward-looking. Forward-looking statements are based on the best estimates available to the Company at the time and involve known and unknown risks, uncertainties or other factors that may cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements in order to account for any new information or any other event. The reader is warned against undue reliance on these forward- looking statements.
5N Plus Inc.
Interim Consolidated Statements of Income
Three-month periods ended August 31
(unaudited)
(in Canadian dollars) 2010 2009
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$ $
Sales 18,770,228 16,053,220
Cost of sales 10,417,960 8,434,866
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Gross profit 8,352,268 7,618,354
Expenses
Selling, general and administrative 1,919,897 2,293,870
Research and development 767,595 375,872
Depreciation of property, plant and
equipment 619,610 627,782
Amortization of intangible assets 64,594 34,352
Foreign exchange gain (595,657) (100,926)
Financial 107,379 39,556
Interest income (148,917) (139,992)
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2,734,501 3,130,514
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Earnings before income taxes 5,617,767 4,487,840
Income taxes 1,584,543 1,473,232
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Net earnings 4,033,224 3,014,608
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Earnings per share
Basic 0.09 0.07
Diluted 0.09 0.07
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Weighted average number of common shares
outstanding
Basic 45,630,102 45,520,225
Diluted 45,985,109 45,929,751
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The accompanying notes are an integral part of these unaudited interim
consolidated financial statements.
5N Plus Inc.
Interim Consolidated Balance Sheets
As at As at
August 31, May 31,
2010 2010
(in Canadian dollars) (unaudited) (audited)
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Assets $ $
Current assets
Cash and cash equivalents 64,000,238 67,992,321
Accounts receivable 5,622,779 4,774,460
Inventories 30,391,225 27,705,149
Prepaid expenses and deposits 1,733,619 1,073,025
Derivative financial instruments - 1,362,804
Income taxes recoverable 1,269,306 516,602
Future income taxes 112,948 150,598
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103,130,115 103,574,959
Property, plant and equipment 29,424,782 26,437,302
Intangible assets 1,730,909 1,770,913
Goodwill 4,454,762 4,381,762
Future income taxes 2,096,286 2,311,191
Convertible debenture 3,111,970 -
Other assets 45,181 45,181
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143,994,005 138,521,308
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Liabilities
Current liabilities
Accounts payable and accrued liabilities 5,736,181 4,646,220
Derivative financial instruments 216,897 -
Current portion of long-term debt 572,820 622,820
Future income taxes 334,993 444,662
Income taxes payable - 43,826
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6,860,891 5,757,528
Long-term debt 4,155,524 4,197,803
Deferred revenues 530,334 553,578
Future income taxes 2,249,639 2,333,862
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13,796,388 12,842,771
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Shareholders' Equity
Share capital 82,417,862 82,389,870
Contributed surplus 1,581,076 1,372,523
Accumulated other comprehensive income (2,282,183) (2,531,494)
Retained earnings 48,480,862 44,447,638
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130,197,617 125,678,537
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143,994,005 138,521,308
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The accompanying notes are an integral part of these unaudited interim
consolidated financial statements.
5N Plus Inc.
Reconciliation of EBITDA
First quarter ended August 31 2010 2009 Increase
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$ $
Net earnings 4,033,224 3,014,608 33.8%
Add (deduct):
Financial expenses & Interest
income (41,538) (100,436)
Depreciation and amortization 684,204 662,134
Income taxes 1,584,543 1,473,232
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EBITDA 6,260,433 5,049,538 24.0%
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5N Plus Inc.
Cash Flows
First quarter ended August 31 2010 2009
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$ $
Cash flow provided (consumed) by operating
activities 650,342 (379,696)
Investing activities (5,922,680) (1,171,725)
Financing activities 1,205,474 1,560,088
Effect of foreign exchange rate changes on
cash and cash equivalents 74,771 52,168
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Net (decrease) increase in cash and cash
equivalents (3,992,093) 60,835
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(1) EBITDA is a non-GAAP measure and means earnings before financing
costs, interest income, income taxes,depreciation and amortization
and is presented on a consistent basis from period to period. The
definition of this non-GAAP measure used by the Company may differ
from that used by other companies.
(2) Backlog is a non-GAAP measure that 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.
For further information: Jacques L'Écuyer, President and Chief Executive Officer, 5N Plus Inc., (514) 856-0644, [email protected]
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