For the fourth quarter 2012
- Revenues of $173.6 million compared with $168.2 million for the corresponding quarter of fiscal 2011
- Negative EBITDA of ($2.7 million) and normalized EBITDA of $2.3 million compared with year-over-year levels of $8.9 million and $7.4 million, respectively
- $40.9 million impairment charge against goodwill and intangible assets, of which $23.7 million is attributable to the desalination segment, $15.6 million to the Industrial segment and $1.6 million to the Other group
- Net loss and net loss related to continuing operations attributable to shareholders of GLV Inc. of ($52.8 million) compared with ($8.2 million) and ($4.9 million), respectively, for the corresponding quarter of fiscal 2011
- Normalized net loss attributable to shareholders of GLV Inc. of ($7.0 million) or ($0.16) per share, basic and diluted compared with ($5.8 million) and ($0.13), respectively, for the corresponding quarter of fiscal 2011
For the twelve-month period ended March 31, 2012
- Revenues of $659.6 million compared with $663.8 million for the corresponding period of fiscal 2011
- EBITDA of $14.4 million and normalized EBITDA of $20.5 million compared with year-over-year levels of $21.0 million and $20.4 million, respectively
- Net loss and net loss related to continuing operations attributable to shareholders of GLV Inc. of ($54.1 million) compared with ($23.2 million) and ($12.3 million), respectively, for the corresponding period of fiscal 2011
- Normalized net loss attributable to shareholders of GLV Inc. of ($7.1 million) or ($0.16) per share, basic and diluted compared with ($12.5 million) and ($0.28), respectively, for the corresponding period of fiscal 2011
Datas as at March 31, 2012
- Total net debt to invested capital ratio of 19.6% compared with 18.9% as at March 31, 2011
- Working capital ratio of 1.53 compared with 1.53 as at March 31, 2011
- Backlog of $354.8 million compared with $396.1 million as at December 31, 2011 and $372.2 million as at March 31, 2011
MONTREAL, June 7, 2012 /CNW Telbec/ - (All amounts are in Canadian dollars)
GLV Inc. (the "Corporation") (TSX: GLV.A GLV.B) released its results today for the fourth quarter and fiscal 2012, ended March 31, 2012. Those results are presented in accordance with International Financial Reporting Standards ("IFRS") as of the first quarter of fiscal 2012. The previous year's results and data have been restated.
This press release presents the highlights of the fourth quarter and fiscal 2012, ended March 31, 2012. For a detailed analysis, see the management's discussion and analysis (MD&A) and consolidated financial statements, filed today on the websites of SEDAR (www.sedar.com) and the Corporation (www.glv.com). Note that non-IFRS financial measures have been used to analyze performance.
For the quarter ended March 31, 2012, Ovivo's performance fell short of management's expectations but was partly offset by the Pulp and Paper Group's good results. Disappointing results at three Ovivo divisions had a significant impact on performance. The food and beverage processing division and a European desalination unit recognized additional costs to complete major contracts. In addition, the Canadian municipal segment division posted losses due to low operating margins on certain contracts and lower business volume. As explained below, streamlining measures have been implemented in these entities and management is confident that these measures will improve profitability in the coming quarters.
The streamlining measures implemented by GLV during the fourth quarter of 2012 in its two core operating groups - Ovivo and the Pulp and Paper Group - will generate annual cost savings of approximately $5 million. These measures mainly consist in eliminating positions in North America, Europe and Asia-Pacific. Given the global economic conditions that impacted the Corporation's results for the second half of the year and the level of its backlog as at March 31, 2012, management considered these initiatives to be necessary. A restructuring charge of $4.9 million was recognized in the fourth quarter of fiscal 2012, primarily due to these measures, in addition to the $1.2 million expense recorded in the past two quarters mainly for a subsidiary in the desalination segment. Restructuring costs for fiscal 2012 total $6.1 million. During fiscal 2013, we will continue to review the operational performance and future outlook for certain units. Further initiatives to generate greater synergies could be introduced.
The Corporation also recorded a $40.9 million impairment charge against goodwill and intangible assets, of which $23.7 million is attributable to the desalination segment, $15.6 million to the Industrial segment and $1.6 million to the Other group. As this amount is a non-cash charge, it has no impact on the Corporation's liquidity.
The energy, microelectronics and U.S. municipal segments met or exceeded the profitability targets set by management. These divisions are important for Ovivo and play a significant role in the Corporation's growth and performance strategy.
As mentioned during previous quarters, the desalination segment faced major challenges due to contracts with significantly negative margins arising from the acquisition of Christ Water Technology ("CWT"). Since the end of the first quarter of fiscal 2012, management has implemented new policies for order taking in this segment. Its future development will focus mainly on the supply of technological solutions and equipment, and to a lesser extent on the supply of turnkey contracts for which the execution risks are considered reasonable, allowing the Corporation to reduce overall risk related to contract execution.
With respect to the Industrial segment, goodwill was written down following significantly negative results in certain divisions and persistent economic uncertainty in some of our markets.
For fiscal 2012 as a whole, despite lower revenues, normalized EBITDA is comparable to the previous year level, driven by sustained performance from the Pulp and Paper Group, improved results at the Van der Molen division and head office cost savings. For Ovivo, in addition to the disappointing fourth quarter performance mentioned above, results for previous quarters were also impacted by the finalization of CWT legacy contracts in the desalination segment. Management continues to closely monitor the sole remaining contract which is near completion.
As at March 30, 2012, the Corporation had sold its investment in a manufacturing subsidiary located in Austria whose activities were not aligned with the corporate strategy. In addition to the impairment charge against the related intangible assets, a $0.3 million loss on disposal was recognized in the fourth quarter.
On December 19, 2011, the Corporation renewed its main financing agreement, which was up for renewal in August 2012, for the next five years. This multi‐jurisdictional and multi‐currency financing totals $200 million and consists of a $100 million revolving credit facility to meet the Corporation's day-to-day financing requirements, issue letters of credit and finance business acquisitions, and a second $100 million revolving credit facility to issue letters of credit guaranteed by Export and Development Canada ("EDC"). The financing agreement also includes an uncommitted accordion feature providing access to an additional $50 million, providing the Corporation with the flexibility it needs to pursue its growth strategy. Renewal costs of $1.1 million were recognized through earnings in the third quarter as financial expenses. As at March 31, 2012, all of the financial ratios were in compliance with the requirements set out in current credit agreements with different banking institutions.
As at March 31, 2012, the backlog stood at $354.8 million, down from $396.1 million as at December 31, 2011 and $372.2 million as at March 31, 2011. The decline in the backlog from its level as at December 31, 2011 is mainly attributable to Ovivo's Industrial and U.S. municipal segments. Compared with March 31, 2011, the backlog decline was also significant for Ovivo's U.S. municipal segment, the microelectronic market and the petrochemical and pulp and paper divisions. The Pulp and Paper Group's backlog is up from the same date last year and is comparable to the previous quarter level.
For fiscal 2013 as a whole, assuming exchange rates remain stable at current levels and in light of the outlook in the markets serviced by each group, the Corporation expects consolidated revenues to range from $620 million to $670 million.
Moreover, the Corporation announces important organizational changes in its leadership team. Marc Barbeau who has served as Executive Vice-President and Chief Financial Officer of GLV Inc. since February 2007 is appointed president of Ovivo, position that was held by interim up to now by Richard Verreault, President and Chief Executive Officer of GLV Inc. Thereby, France De Blois, Vice-President, Accounting of the Corporation since 2010 is promoted as Chief Financial Officer of GLV Inc. A separate press release issued today provides more details in that regard.
About GLV Inc.
GLV Inc. is a leading global provider of water treatment technological solutions, under the Ovivo brand, as well as technological solutions used in pulp and paper production. The Corporation operates in some 20 countries with approximately 2,300 employees. GLV is a public company whose shares trade on the Toronto Stock Exchange (TSX) under the ticker symbols GLV.A and GLV.B; it is a constituent of the S&P/TSX Clean Technology Index.
Notice regarding forward-looking statements
Certain statements in this press release regarding management's objectives, projections, estimates, expectations or forecasts may constitute forward-looking statements within the meaning of applicable securities legislation. Forward-looking statements are recognized by the use of terms such as "forecast," "project," "could," "plan," "aim," "estimate" and other similar terms, possibly used in the future or conditional, particularly with regard to certain assumptions. The management of GLV would like to point out that forward-looking statements involve a number of uncertainties and known and unknown risks such that GLV's actual and future results could differ considerably from those stated. There can be no assurance as to the materialization of the results, performance or achievements as expressed in or underlying the forward-looking statements. The forward-looking statements included in this press release were made as of the date hereof, and unless required to do so pursuant to applicable securities legislation, management of GLV assumes no obligation to update them.
Additional information about the risk factors to which GLV is exposed is provided under section 10, "Risks and uncertainties" in the MD&A for the fiscal year ended March 31, 2012 available on SEDAR (www.sedar.com) and the Corporation's website (www.glv.com).
| CONFERENCE CALL
Date and time: Thursday, June 7, 2012 at 2 p.m. (EST)
1-888-231-8191 (North America)
|An audio webcast of the conference call will be streamed live on www.glv.com. An audio recording will be accessible on demand from 5 p.m. (EST) June 7, 2012 until midnight June 14, 2012 at 1-855-859-2056 (1-416-849-0833-International, access code: 80575811#).|
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