Consolidated revenues of $62.8 million
EBITDA of $6.7 million or 10.7% of revenues, compared to $6.1 million or
7.9% of revenues in 2010
Profit for the period of $2.6 million or $0.04 per share, compared to
$2.2 million or $0.03 per share in 2010
DRUMMONDVILLE, QC, June 13, 2011 /CNW Telbec/ - CVTech Group Inc.
("CVTech" or the "Corporation") (TSX: CVT) today reported results for
its first quarter ended March 31, 2011. These results are the first
that CVTech presented following the adoption of International Financial
Reporting Standards ("IFRS") on January 1, 2011. Results for the
corresponding period of the previous year have been restated. All
amounts are in Canadian dollars unless otherwise indicated.
Consolidated revenues were $62.8 million, down $14.5 million or 18.8%
from $77.3 million in the first quarter of 2010. The variation was due
to a $5.3-million decrease in revenues related to winter storms in the
Northeastern United States in 2011, relative to the year-earlier
quarter. In addition, the GLR-Thiro G.P. consortium recorded revenues
of $7.1 million in the first quarter of 2010 from a contract that has
since ended. No revenues from this consortium were recorded in the
first quarter of 2011. Finally, the conversion effect from fluctuations
in the value of the Canadian dollar reduced the value of consolidated
revenues denominated in foreign currencies by approximately
$2.1 million relative to the same period a year earlier.
Consolidated earnings before interest, taxes, depreciation and
amortization ("EBITDA") were $6.7 million, or 10.7% of revenues, in the
first quarter of 2011 compared to $6.1 million, or 7.9% of revenues, in
the first quarter of 2010. Profit for the period was $2.6 million or
$0.04 per diluted share, compared to $2.2 million or $0.03 per diluted
share in the year-earlier period. The Corporation's order backlog as at
March 31, 2011 amounted to approximately $317 million.
Quarters ended March 31
(in thousands of dollars, except per-share data)
Profit for the period
Per share - basic ($)
Per share - diluted ($)
Weighted average number of shares outstanding (basic, in thousands)
Revenues of the Energy segment declined $14.2 million to $56.7 million
for the first quarter of 2011, from $70.9 million for the first quarter
of 2010. The decrease is attributable to a reduction in revenues
related to winter storms, to the absence of revenues from the GLR-Thiro
G.P. consortium and to the conversion effect from fluctuations in the
value of the Canadian dollar, which reduced the value of
U.S.-dollar-denominated revenues by approximately $2.0 million.
Excluding these factors, revenues were essentially stable relative to
the year-earlier period. Reflecting a more favourable revenue mix and
increased operating efficiency, EBITDA of the Energy segment was $5.2
million, or 9.2% of revenues, compared to $4.5 million, or 6.3% of
revenues, last year.
Revenues of the CVT systems and related products segment were $6.1
million in the first quarter of 2011, down from $6.4 million for the
corresponding quarter of 2010. The slight decline is attributable to
the operations of the CVTech-IBC Inc. subsidiary and to unfavourable
movements of the Canadian dollar against the U.S. dollar and the euro.
Also as a result of this exchange-rate variation, EBITDA was down
slightly to $1.5 million, or 25.0% or revenues, from $1.6 million, or
25.4% of revenues, a year earlier.
"The success of initiatives to increase our operating efficiency led to
a further significant improvement in our operating margin," said André
Laramée, President and Chief Executive Officer of CVTech. "CVTech
reduced its total debt by more than $7.8 million in the first quarter
of 2011. This strength in the Corporation's financial position leaves
it well-positioned to take advantage of business opportunities that
will create shareholder value."
As at March 31, 2011, CVTech's financial position remained sound, with
cash of $5.1 million and long-term debt, including the current portion,
of $35.9 million, a reduction of $3.2 million from December 31, 2010.
During the quarter, the Corporation used part of its cash position to
reduce short-term bank loans outstanding by $4.6 million. As a result,
the ratio of net debt to equity was 0.51 at March 31, 2011, compared to
0.52 at the beginning of the year.
"In the short term, CVTech aims to maximize the cross-selling effects of
its Energy segment subsidiaries to both existing and prospective
customers. We also see opportunities for expansion in this segment,
through the development of new territories adjacent to those where we
are already present, as well as through new strategic acquisitions.
Finally, we are actively pursuing efforts to divest our interests in
the CVT systems and related products segment in order to focus
exclusively on the Energy segment, although opportunities for our CVT
systems on the Asian market seem to be in the process of
materializing," Mr. Laramée concluded.
OVERVIEW OF THE CORPORATION
CVTech is a management company operating in two major sectors. Through
Thirau ltée and its subsidiary Thirau LLC, the Corporation provides
services to the electric power industry for the maintenance of
transmission and distribution lines, primarily in Quebec and the
eastern United States. Thirau ltée's subsidiary, J.J.L. Déboisement
inc., specializes in control of vegetation surrounding power lines and
in clearing rights of way. Thirau LLC's wholly owned subsidiary Riggs
Distler & Company, Inc. is a leading provider of maintenance and
construction services to the utility and heavy industrial markets. In
the CVT systems and related products segment, the Corporation, through
CVTech-IBC Inc., designs, manufactures and sells continuously variable
power transmission systems, or CVTs. CVTech-AAB inc. specializes in
rebuilding crankshafts and cylinders and in distributing engine parts.
EBITDA is a measure that has no standardized meaning prescribed by IFRS
and is thus considered to be a non-IFRS measure. Therefore, this
measure may not be comparable to similar measures presented by other
issuers. This measure is described and presented in this release in
order to provide additional information regarding the Corporation's
liquidity and its ability to generate funds to finance its operations.
This document may contain forward-looking statements that reflect
management's current expectations regarding future events.
Forward-looking statements are based on a number of factors and include
risks and uncertainties. Actual results may differ from forecast
results. Management has no obligation beyond what is required under the
law to update or revise forward-looking statements pursuant to new
information or future events.
Further information regarding CVTech is available in the SEDAR database
(www.sedar.com) and on the Corporation's website at www.cvtech.ca.
SOURCE CVTECH GROUP INC.
For further information:
Source: CVTech Group Inc.