SAINT-GEORGES, QC, Nov. 11, 2014 /CNW Telbec/ - Manac Inc. (TSX: MA) ("Manac"), a North American leader in the design and manufacturing of specialty trailers, reports a net income of $2.7 million, or $0.16 per share (based on a weighted average number of outstanding common shares of 16,868,485) for the quarter ended September 27, 2014, compared with a net income of $1.9 million, or $0.11 per share for the second quarter of 2014, and of $2.0 million, or $0.17 per share (based on a weighted average number of outstanding common shares of 12,203,762) for the third quarter of 2013.
Revenues for the third quarter of 2014 totaled $93.2 million compared with $69.8 million for the corresponding period in 2013, representing an increase of 33.5%. The increase in revenues is attributable to the addition of Peerless Limited ("Peerless"), and by an increased level of activity, mainly in the van segment.
For the third quarter of 2014, Adjusted EBITDA (please refer to note 1 below) was $5.8 million, compared to $5.0 million for the second quarter of 2014, and to $5.2 million for the third quarter of 2013. The Adjusted Net Income (please refer to note 1 below) for the third quarter of 2014 was $2.9 million, compared to $2.7 million for the second quarter of 2014 and to $2.4 million for the third quarter of 2013.
For the first nine months of 2014, net income was $6.2 million, or $0.37 per share (based on a weighted average number of outstanding common shares of 16,868,485) compared with a net income of $8.3 million, or $0.69 per share (based on a weighted average number of outstanding common shares of 12,141,723) for the corresponding period in 2013. Revenues for the first nine months of 2014 amounted to $231.5 million compared to $218.1 million for the corresponding period in 2013, representing an increase of 6.1%.
"The third quarter activities from our market segments supported an increase in our backlog. The backlog of the trailer industry also increased, an indication of market strength as third quarter backlog usually contracts. These strong indicators as well as the continued downward movement of the Canadian dollar relative to the US dollar are very positive factors as we look into 2015. The Company's third quarter income was impacted by the higher discount vans that were in the backlog at the start of 2014. Also, the inventory revaluation following the acquisition reduced the impact of Peerless' contribution to these quarterly results. While the Peerless inventory valuation effect is limited only to this quarter; the impact of the higher discount van orders should conclude in our fourth quarter," mentioned Charles Dutil, President and Chief Executive Officer.
The Company's backlog gained strength in the third quarter and totaled $121.4 million on September 27, 2014. This compares to $112.3 million on June 21, 2014 and $53.4 million on September 28, 2013.
About Manac Inc.
Manac is the largest manufacturer of trailers in Canada and a leader in the manufacturing of specialty trailers in North America. Manac offers a wide range of vans, flatbeds and specialty trailers such as dumps, low beds, grain hoppers, chip and logging trailers, all of which are sold in Canada and the United States under the recognized brands Manac®, CPS®, Darkwing®, UltraPlate® and Liddell Canada®. Manac services the heavy-duty trailer industry for the highway transportation, construction, forestry and agricultural sectors and manufactures its trailers in facilities located in Saint-Georges, Quebec as well as Oran and Kennett, Missouri. Through its wholly-owned subsidiary Peerless, located in Penticton, British Columbia, Manac also designs and manufactures highly specialized trailers and chassis for the oil and gas, mining, forestry, logging and construction industries.
Manac will hold a conference call with financial analysts, investors and media representatives on Wednesday, November 12, 2014 at 11:30 a.m. (ET). A webcast will be available at www.manac-ir.com and www.newswire.ca.
To join the conference toll free, please dial 1-866-865-3087. The conference access code is 22755045.
A replay of the conference call will be available until November 26, 2014, by dialing 1-855-859-2056 and entering conference ID 22755045, followed by the pound key (#).
Forward looking statements
The statements set forth in this press release, which describes Manac's objectives, projections, estimates, expectations or forecasts, may constitute forward-looking statements within the meaning of securities legislation. Positive or negative verbs such as "believe", "could", "should", "intend", "expect", "estimate", "assume" and other related expressions are used to identify such statements. Manac would like to point out that, by their very nature, forward-looking statements involve risks and uncertainties such that its results, or the measures it adopts, could differ materially from those indicated or underlying these statements, or could have an impact on the degree of realization of a particular projection. Major factors that may lead to a material difference between Manac's actual results and the projections or expectations set forth in the forward-looking statements include the effects of the integration of acquired businesses and the ability to achieve projected synergies, fluctuations in commodity prices, exchange rate variations, cost of material, competition in the transportation, trucking and trailer industries, and such other risks as described in detail from time to time in the reports filed by Manac with securities authorities in Canada. Unless otherwise required by applicable securities laws, Manac disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking information in this release is based on information available as of the date of the release.
Adjusted EBITDA and Adjusted net income are non-IFRS measures that Manac uses to assess its operating performance. Adjusted EBITDA is defined as net income before net finance costs, income tax, depreciation and amortization expense, then excluding items that are not in Manac's normal business. Adjusted net income is defined as net income before items that are not in Manac's normal business, adjusted to reflect the tax effect on these items.
For a reconciliation of these "non-IFRS" measures, please refer to Manac's "Management Discussion and Analysis for the third quarter ended September 27, 2014" which has been filed via SEDAR (www.sedar.com).
Image with caption: "Manac Logo (CNW Group/Manac Inc.)". Image available at: http://photos.newswire.ca/images/download/20141111_C5053_PHOTO_EN_7827.jpg
SOURCE: Manac Inc.
For further information: Charles Dutil, President & Chief Executive Officer, Manac Inc., Email: [email protected], Telephone: 418-228-2018