MONTREAL, Feb. 25, 2014 /CNW Telbec/ - 5N Plus Inc. (TSX: VNP), the leading producer of specialty metal and chemical products, today reported financial results for the quarter and fiscal year ended December 31, 2013.
- EBITDA1 increased by $26.1 million, from ($18.1) million in Q4 2012 to $7.9 million in Q4 2013 and by $32.9 million, from ($12.7) million in 2012 to $20.2 million in 2013.
- Revenues decreased by $9.2 million, or 7%, from $128.6 million in Q4 2012 to $119.4 million in Q4 2013 and by $92.7 million, or 17%, from $551.7 million in 2012 to $459.0 million in 2013. These decreases are mainly due to lower commodity prices.
- Net debt1 decreased by $78.2 million, from $136.5 million as at December 31, 2012 to $58.3 million as at December 31, 2013. The Net debt1 to adjusted EBITDA1 ratio improved in 2013, from 3.6 in 2012 to 1.9 in 2013.
- Net earnings of $1.6 million and adjusted net earnings1 of $2.1 million in Q4 2013 compared to net losses of $212.0 million and $6.9 million in Q4 2012. Net earnings of $42.8 million and adjusted net earnings of $10.8 million in 2013 compared to net loss of $227.9 million and adjusted net loss of $2.9 million in 2012.
- Bookings1 increased by 18% to $156.1 million compared to $132.1 million in the fourth quarter of last year. Backlog1 as at December 31, 2013 stood at $170.1 million which compares to backlog of $165.8 million one year ago.
- On November 13, 2013, the Company was named for a fourth consecutive year as one of Canada's fastest growing technology companies in the Deloitte Technology Fast 50TM based on the percentage of revenue growth over five years. 5N Plus' increase in revenues of 1,681% from 2008 to 2012 resulted in a number 5 ranking. The Company was also ranked 101 on Deloitte's Technology Fast 500TM, a list of the 500 fastest growing technology, media, telecommunications, life sciences and clean technology companies in North America.
- On October 24, 2013, the Company announced that it had entered into an exclusive long-term off-take agreement of bismuth with Masan Resources, one of the largest private sector natural resources companies in Vietnam.
- On July 9, 2013, the Company announced that it had entered into an exclusive option to acquire all of the issued and outstanding shares in the capital of AM&M Advanced Machine and Materials Inc., a corporation specialized in the manufacturing of micron size metallic powders.
- On June 18, 2013, the Company announced that it had entered into a full and final settlement with former shareholders of MCP Group SA, in relation with the dispute previously announced by the Corporation on December 21, 2012.
- On June 11, 2013, the Company announced an investment in a new gallium chemicals facility located in South Korea and that it had entered into an agreement with a local chemical distributor for the supply of operating services and logistics of the new facility. This initiative was taken to meet the growing demand for gallium in LED manufacturing in North East Asia.
Jacques L'Ecuyer, President and Chief Executive Officer, said "We ended the year with a relatively strong quarter with EBITDA levels reaching close to $8 million and quarterly revenues at their highest level since the beginning of the year, reflecting a more favorable business environment despite the typical year-end demand softness patterns. We were also able to continue our quarter-over-quarter reduction in net debt level which was cut by more than half during the year and now stands at less than $60 million providing greater financial flexibility. Underlying commodity prices together with inventory levels are now more manageable enabling us to perform much more effectively than we have been able to ever since the transformational acquisition made in 2011. Combined with our efforts aimed at improving overall efficiency, instilling greater discipline and reducing costs, we were able to report positive net earnings for a fourth consecutive quarter and break the trend of impairment charges every alternating quarter. Although the latter remains somewhat dependent on underlying commodity pricing trends, and thus to some extent beyond our control, we believe that we are now much better positioned to anticipate and take advantage of these pricing trends in the future."
Mr. L'Ecuyer continued, "In our respective markets, bismuth sales volumes reached a record level in both the quarter and the year reflecting growing demand and increases in market share. Demand for solar products also remained healthy, despite some year-end decreases resulting from unusual customer buying patterns, with a relatively bullish outlook for 2014 as the solar industry gradually recovers and demonstrates its overall competitiveness in a number of unsubsidized markets. Combined sales of electronic metals, namely gallium, indium and germanium, also increased primarily as a result of higher sales of gallium and related chemicals for the LED market, a market which is expected to continue to grow in the future as the use of LEDs for general lighting applications expands. As for our germanium substrate business, we made great progress during the year and are now fully qualified with both of the main US based suppliers of space solar cells. Overall, this relatively bright outlook in terms of markets is further confirmed by the bookings recorded in the quarter which reached their highest levels since the last two years enabling the backlog to increase back to its June 2012 level despite lower average underlying commodity prices."
Mr. L'Ecuyer pursued, "We continue to execute our strategic plan which aims to increase value added activities, broaden our footprint in Asia and expand our recycling business leveraging our international platform. As a result, we announced during the year commissioning of our new facility in Korea, our plans to enter the ultrafine metal powder business through the acquisition of AM&M and its breakthrough atomization technology, and our exclusive long-term bismuth off-take agreement with Masan Resources. We also intend to develop, manufacture and market selenium based chemicals for the animal feed, fertilizer, glass and metallurgical industry. Related investments at our Lao facility are underway and we intend to produce and sell such products before year-end."
Mr. L'Ecuyer concluded, "To our employees, we would like to thank you for your dedication and hard work in what was a very challenging year. Fortunately through our combined efforts, we were able to make tremendous progress and now have every reason to be optimistic on our ability to increase shareholder value in the future. To our stakeholders and shareholders, thank you as well for your confidence and support."
5N Plus will host a conference call on Wednesday, February 26, 2014 at 8:00 am ET with financial analysts to discuss results of the quarter and fiscal year ended December 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 March 5, 2014.
To participate in the conference call:
- Montreal area: 514-807-9895
- Toll-Free : 1-888-231-8191
Enter access code 2074852.
Adjusted net earnings means the net earnings (loss) before the effect of charge and reversal of impairment related to inventory, PPE and intangible assets, impairment of goodwill, litigation and restructuring costs, settlement of purchase price 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, the settlement of purchase price and acquisition costs. The definition of this non-IFRS measure used by the Company may differ from that used by other companies.
EBITDA means net earnings (loss) before financial expenses (income), income taxes, depreciation and amortization, impairment or reversal of impairment of PPE and intangible assets, impairment of goodwill, litigation and restructuring costs, acquisition-related costs and the settlement of purchase price of MCP. 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.
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.
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 "Risk and Uncertainties" of 5N Plus' 2013 MD&A dated February 25, 2014 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.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(Figures in thousands of United States dollars)
|As at December 31, 2013||As at December 31, 2012|
|Cash and cash equivalents||22,427||9,535|
|Temporary investments, restricted||2,490||2,357|
|Income tax receivable||8,455||18,931|
|Derivative financial assets||955||-|
|Other current assets||2,290||2,514|
|Total current assets||271,607||291,437|
|Property, plant and equipment||59,614||55,548|
|Deferred tax asset||13,387||12,650|
|Investments accounted for using the equity method||444||503|
|Total non-current assets||93,633||93,959|
|LIABILITIES AND EQUITY|
|Bank indebtedness and short-term debt||10,462||8,014|
|Trade and accrued liabilities||65,016||62,214|
|Income tax payable||3,660||2,217|
|Derivative financial liabilities||3,284||2,817|
|Long-term debt due within one year||4,439||29,527|
|Total current liabilities||86,861||104,789|
|Deferred tax liability||1,600||2,632|
|Retirement benefit obligation||15,887||16,667|
|Derivative financial liabilities||953||3,537|
|Total non-current liabilities||87,850||135,294|
|Total liabilities and equity||365,240||385,396|
5N PLUS INC.
CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)
For the years ended December 31
(Figures in thousands of United States dollars, except per share information)
|Cost of sales||405,114||520,247|
|Selling, general and administrative expenses||36,066||45,742|
|Other expenses, net||(32,854)||225,836|
|Share of loss from joint ventures||59||333|
|Operating earnings (loss)||50,627||(240,483)|
|Interest on long-term debt||5,935||8,012|
|Other interest expense||2,589||816|
|Foreign exchange and derivative loss (gain)||(2,590)||2,759|
|Earnings (loss) before income taxes||44,693||(252,070)|
|Income taxes expense (recovery)||1,913||(24,221)|
|Net earnings (loss) for the year||42,780||(227,849)|
|Equity holders of 5N Plus Inc.||42,661||(227,738)|
|Earnings (loss) per share attributable to equity holders of 5N Plus Inc.||0.51||(2.91)|
|Basic earnings (loss) per share||0.51||(2.91)|
|Diluted earnings (loss) per share||0.51||(2.91)|
5N PLUS INC.
(Figures in thousands of United States dollars)
|Q4 2013||Q4 2012||2013||2012|
|Funds from operations2||9,043||4,243||20,033||25,393|
|Net changes in non-cash working capital items||372||2,686||27,930||76,419|
|Effect of foreign exchange rate changes on cash and cash equivalents related to operations||(382)||(276)||(913)||(399)|
|Net increase (decrease) in cash and cash equivalents||8,788||2,207||12,892||(19,914)|
Revenues by Segment
|Q4 2013||Q4 2012||% Change||2013||2012||% Change|
|Electronic Materials Segment||46,264||55,254||-15%||179,368||232,013||-23%|
|Eco-Friendly Materials Segment||73,152||73,366||-2%||279,644||319,662||-13%|
EBITDA and Adjusted EBITDA
|Q4 2013||Q4 2012||2013||2012|
Bookings and Backlog
|Q4 2013||Q3 2013||Q4 2012||Q4 2013||Q3 2013||Q4 2012|
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