MONTREAL, Nov. 7, 2013 /CNW Telbec/ - (All amounts are in Canadian dollars.)
GLV Inc. (GLV Group) released its financial results for the second quarter of fiscal 2014 today. The Corporation reported positive net earnings for the third consecutive quarter. For the second quarter of fiscal 2014, net earnings amounted to $1.4 million or $0.03 per share, basic and diluted, compared with a net loss from continuing operations of $6.0 million or $0.13 per share, basic and diluted, for the same quarter of the previous fiscal year. The drivers of this higher profitability were, among others, reduced financial expenses and an improved operating performance, particularly for Ovivo, in its key segments. "We are staying the course with our business plan and we are well on track towards our targets. The outlook for our two core operating groups, namely Ovivo and GL&V Pulp and Paper, continues to be promising," stated Richard Verreault, President and Chief Executive Officer of GLV Inc.
|(in millions of dollars, excluding earnings (loss) per share)||Quarters ended September 30|
|Normalized adjusted EBITDA from continuing operations||5.9||5.2||0.7|
|Earnings (loss) before taxes (EBT)||1.7||(4.7)||6.4|
|Net earnings (loss) from continuing operations||1.4||(6.0)||7.4|
|Normalized net earnings (loss)||2.5||(3.3)||5.8|
| September 30,
| June 30,
GLV Group's consolidated revenues for the quarter ended September 30, 2013 were up 6.5% from the same quarter of the previous fiscal year, driven primarily by organic growth of 23% in Ovivo's four target markets (Municipal, Electronics and Metals, Energy, and Parts and Services), reflecting among others the implementation of the strategy of developing Ovivo's Parts and Services market. Revenues at GL&V Pulp and Paper declined slightly from the previous year due to the timing of new equipment sales, partly offset by higher sales in the Parts and Services market.
At Ovivo, the key Electronics and Metals and Municipal North America markets generated better results than in the same quarter of the previous fiscal year, bolstered by a favourable backlog and continuing effectiveness in contract performance and monitoring. The Energy segment's performance in the second quarter of 2014 fell short of results in the previous year, but was consistent with the business plan. Meanwhile, the economic slowdown in the Municipal market in Europe, Middle East and Africa (EMEA), mainly in the U.K., had an adverse impact on second quarter results compared with fiscal 2013.
Although revenues were lower, operating results at GL&V Pulp and Paper were comparable with performance in the same quarter of the previous fiscal year, demonstrating the significant contribution made by the Parts and Services market to group profitability.
GLV Group's improvement in net earnings for the second quarter of fiscal 2014 compared with the corresponding quarter of the previous fiscal year arose primarily from lower net financial expenses, favourable changes related to exchange rates and derivative instruments, the decrease in income tax expense and better consolidated operating performance.
For the six-month period ended September 30, 2013, the Corporation reported net earnings of $2.7 million or $0.06 per share, basic and diluted, compared with a net loss from continuing operations of $9.8 million or $0.22 per share, basic and diluted, for the same period of the previous fiscal year. This improved profitability was driven mainly by lower financial expenses as mentioned above and to a lesser extent by the decrease in the income tax expense that offset the slightly weaker operating performance compared with fiscal 2013.
Backlog and outlook
As at September 30, 2013, GLV Group's backlog stood at $391.9 million, compared with $395.3 million as at June 30, 2013, its highest level in two years. That amount excludes the impact of the large $28 million contract won by Ovivo for its involvement in the upgrading of a waste water purification plant at Canton in Ohio, U.S.A., as announced last October, which was included in the backlog in October.
Ovivo's backlog was slightly higher as at September 30, 2013, owing primarily to the Energy and Municipal North America markets, as well as the Parts and Services market. Following sustained order taking, the Electronics and Metals markets maintained a favourable backlog, despite the degree of completion of work on large contracts announced in the past quarters. The Municipal EMEA market's backlog was lower than in the previous quarter due to the current slowdown in the segment stemming, among others, from the approaching end of the five-year AMP51 relating to infrastructure investments in the U.K. However, potential opportunities in infrastructure projects elsewhere in Europe could offset, at least partially, this slowdown in the coming years.
At GL&V Pulp and Paper, the backlog is down marginally, stemming from delays in new equipment order taking, but is partly offset by order taking in the Parts and Services market.
In the Other group, the backlog is slightly down, owing to the backlog at the Van der Molen division which began in fiscal 2014 at a record high since 2010.
As announced, fiscal 2014 is a year of investment for GLV Group, which is expected to translate into a gradual and sustained improvement in profitability. For fiscal 2014 as a whole, assuming exchange rates remain stable at current levels and in light of the outlook in the segments serviced by all groups, the Corporation still expects consolidated revenues to range from $600 million to $625 million.
Organizational changes in senior management of Finance at GLV Group
With the accelerated deployment of Ovivo's business plan and the strategic importance of the water treatment segment for GLV Group, France De Blois, currently Chief Financial Officer, GLV Inc. will now specifically devote her time to Ovivo, assisting Marc Barbeau, President of Ovivo, as Vice-President, Finance of the group to continue the implementation of its strategy and ensure effective financial performance.
François Dufresne, who served as Vice-President, Corporate Development, was appointed Chief Financial Officer, GLV Inc., replacing France. François has acquired extensive experience in finance and transactions over the past 25 years, both in Canada and abroad. Before joining GLV Group last August, he had been a Partner of Ernst & Young LLP since 2002, where he headed the Montréal tax practice during a number of years, among other functions. Between 1997 and 2002, François served as Vice-President, Corporate Development at Telesystem International Wireless Inc. and prior to that, he was a Partner of Andersen.
This press release presents the highlights for the second quarter ended September 30, 2013. For a detailed analysis, see the interim management's discussion and analysis and unaudited interim condensed 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 were used to analyze performance, as management considers that they provide useful information for investors seeking to assess the Corporation's performance and financial position.
About GLV Group (GLV Inc.)
GLV Group is made up of international companies operating primarily in the water treatment (Ovivo) and pulp and paper (GL&V Pulp and Paper) industries that offer comprehensive technological solutions as well as services and equipment tailored to specific client needs. GLV Group's business units operate in more than 25 countries and have approximately 1,900 employees. GLV Inc. is a public company whose shares trade on the Toronto Stock Exchange under the ticker symbols GLV.A and GLV.B.
Notice regarding forward-looking statements
Certain statements in this press release and other public communications 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 Inc. would like to point out that forward-looking statements involve a number of uncertainties and known and unknown risks such that the actual and future results of GLV Inc. 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 at the date hereof, and unless required to do so pursuant to applicable securities legislation, management of GLV Inc. assumes no obligation to update them.
Additional information about the risk factors to which GLV Inc. is exposed is provided under section 10, "Risks and uncertainties," of the MD&A for the fiscal year ended March 31, 2013 available on SEDAR (www.sedar.com) and the Corporation's website (www.glv.com).
1 Asset Management Program 5
Date and time: Thursday, November 7, 2013 at 2:00 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 5:00 p.m. (EST), November 7, 2013 until midnight Thursday, November 14, 2013 at 1-855-859-2056 (1-416-849-0833-International), access code: 90411744#.
SOURCE: GLV Inc.
For further information:
France De Blois
Chief Financial Officer
Tel.: +1 514-284-2224
Global Director, Communications
Tel.: +1 514-284-2224