- Revenues of $147.5 million compared with $150.4 million for the corresponding period of fiscal 2012
- EBITDA of $5.0 million compared with $4.0 million year-over-year
- Net loss attributable to the shareholders of GLV Inc. of ($5.5 million) or ($0.13) per share, basic and diluted, compared with ($4.1 million) or ($0.09), respectively, for the corresponding quarter of the previous fiscal year, owing primarily to a $3.5 million unfavourable foreign exchange effect
- Total net debt ratio of 25.5% compared with 19.6% as at March 31, 2012
- Working capital ratio of 1.56 compared with 1.57 as at March 31, 2012
- Backlog of $343.3 million compared with $354.8 million as at March 31, 2012 with Ovivo up $5.0 million and the Pulp and Paper Group and Other Group down $13.6 million and $2.9 million, respectively
MONTREAL, Aug. 9, 2012 /CNW Telbec/ - (All amounts are in Canadian dollars)
GLV Inc. (the "Corporation") (TSX: GLV.A GLV.B) disclosed its results today for the first quarter of fiscal 2013.
Following changes to the Corporation's leadership team, particularly at Ovivo, announced in June 2012, Ovivo management has reviewed its business strategy to ensure a gradual improvement in profitability and long-term growth. This new business strategy is based on the following themes:
- Simplify and refocus global operations on markets where Ovivo is recognized as a leader and where profitability has generally met management targets, namely the energy, electronics and metals (formerly called microelectronics), and municipal segments in North America, Europe, the Middle East and Africa;
- Maintain operations solely in regions with a solid business base and performance record for certain segments such as food and beverage processing;
- Accelerate development in aftermarket services, particularly in regions with a significant pool of operating equipment for which the Corporation is the original equipment manufacturer;
- Refocus efforts on contracts offering products and solutions without a construction component for all operations, except for a few entities with a proven track record in managing such projects.
This repositioning will reduce the workforce by approximately 10% for all of the group's subsidiaries, generating annual savings of about $8 million. Related restructuring costs, mainly comprising severance payments, are estimated at approximately $4 million and will be recognized in the coming quarters of the current fiscal year.
"GLV is undergoing a major shift during this quarter with the announcement to refocus its water treatment operations (Ovivo), targeting four promising markets. I'm confident that this repositioning will spearhead a return to sustained profitability for the Corporation, and its long-term development," said GLV President and CEO Richard Verreault.
Operating results for the quarter ended June 30, 2012 were slightly more favourable than for the first quarter of the previous fiscal year. Mixed results at Ovivo were offset by good performance within the Pulp and Paper Group. For Ovivo, the recognition of costs in the first quarter of the previous fiscal year in respect of certain large desalination contracts with negative margins arising from the acquisition of Christ Water Technology ("CWT") resulted in a significant favourable change for the current quarter. However, this positive impact was fully offset by the negative performance of a few entities stemming from a low backlog as at March 31, 2012 and the completion of a few large contracts with low profit margins. Results were also dampened by lower volume in the electronics and metals market during the current quarter. Despite a decrease in business volume, operating results in the energy market and the municipal segment in the U.S and in Europe, the Middle East and Africa met or exceeded management's profitability targets for the second straight quarter. These segments are very much part of the refocused performance and growth strategy for Ovivo and the Corporation.
The Pulp and Paper Group's operating results for the first quarter of 2013 showed a sharp improvement over the previous fiscal year, due to a higher backlog as at March 31, 2012.
The Corporation reported a net loss attributable to the shareholders of GLV Inc. of ($5.5 million) or ($0.13) per share, basic and diluted, compared with a net loss of ($4.1 million) or ($0.09), respectively, for the corresponding quarter of the previous fiscal year. The unfavourable changes, despite higher consolidated EBITDA and lower amortization expense, stem primarily from the impact of the foreign exchange loss and the higher income tax expense.
The backlog amounted to $343.3 million as at June 30, 2012, below the level as at March 31, 2012. The Pulp and Paper Group is mainly responsible for the decline. Ovivo's backlog increased, following growth in the energy market and the municipal segment in North America, partly offset by a decline in the municipal segment in Europe, the Middle East and Africa.
For fiscal 2013 as a whole, assuming exchange rates remain stable at current levels and in light of the outlook in the segments serviced by each group, and in particular the refocusing of Ovivo's operations, the Corporation expects consolidated revenues to range from $600 million to $650 million.
This press release presents the highlights of the first quarter ended June 30, 2012. 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 have been used to analyze performance.
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 over 20 countries with approximately 2,200 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," of 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).
Date and time: Thursday, August 9, 2012 at 2:00 p.m. (EDT)
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. (EDT), August 9, 2012 until midnight Thursday, August 16, 2012 at 1-855-859-2056 (1-416-849-0833-International) access code: 16465634#.
SOURCE: GLV INC.
For further information:
Investors and media:
France De Blois
Chief Financial Officer
Tel.: +1 514-284-2224