MONTREAL, Nov. 8, 2012 /CNW Telbec/ - (All amounts are in Canadian dollars)
For the second quarter of fiscal 2013, GLV Inc. (the "Corporation") (TSX: GLV.A GLV.B) reported consolidated revenues and normalized adjusted EBITDA of $142.8 million and $4.9 million, respectively. The Corporation reported a net loss attributable to shareholders of GLV Inc. of $6.3 million or $0.14 per share, basic and diluted, compared with net earnings of $4.4 million or $0.10 per share for the same quarter of the previous fiscal year. The decline stemmed primarily from lower operating income, restructuring costs of $1.6 million, an impairment charge of $1.1 million, the impact of foreign exchange losses and the higher income tax expense, among other factors. Normalized net loss attributable to shareholders of GLV Inc. amounted to $3.6 million or $0.08 per share (basic and diluted).
"Despite the net loss reported for the quarter, we see encouraging outlook, as efforts to refocus Ovivo operations, announced in August, continue as planned. Nearly half of the planned 10% workforce reduction for the group has been achieved and remaining half should be completed by the end of the current fiscal year, which should generate annualized savings of approximately $7 million once the plan is fully implemented. These measures are expected to give rise to restructuring costs of about $2 million, half the initially estimated cost of $4 million, mainly for severance benefits" declared the President and Chief Executive Officer Richard Verreault.
"Given challenging global economic conditions, our Pulp and Paper Group recently announced the streamlining of one of its European divisions. However, the Group's performance, particularly in North American aftermarket segment which is countercyclical and a major recent contract win in pulp processing equipment, sustains our confidence in its outlook" concluded Richard Verreault.
Although the Corporation's operating results for the quarter ended September 30, 2012 declined compared with the second quarter of the previous fiscal year, the markets targeted by the refocusing of Ovivo's business strategy initiated last August showed promising signs. The energy and municipal markets in Europe, the Middle East and Africa reached or exceeded management's profitability targets while continuing to excel in contract performance and monitoring. Second quarter operating results in the U.S. municipal market and the electronics and metals market decreased compared with the same quarter of the previous fiscal year, stemming primarily from the lower backlog during the second half of the previous fiscal year. This situation improved as at September 30, 2012 with significant growth in the backlog of each of the two segments, allowing the electronics and metals market to reach an 18-month high. Furthermore, Ovivo's normalized adjusted EBITDA margin stands at nearly 5%, improving on performance in the same quarter of the previous fiscal year and the first quarter of the current fiscal year.
The Pulp and Paper Group's results met management expectations although weaker than in the previous fiscal year, primarily due to lower operating volumes in Europe and Asia.
For the six-month period ended September 30, 2012, the Corporation reported a net loss attributable to shareholders of GLV Inc. of $11.8 million or $0.27 per share, basic and diluted, compared with net earnings of $0.3 million or $0.01 per share for the same period of the previous fiscal year. The weaker results were caused by the same unfavourable factors identified for the current quarter.
The backlog as at September 30, 2012 stood at $338.7 million, down slightly from the two previous quarters. At constant exchange rates and excluding the backlog of Ovivo Finland that was sold after the end of the second quarter of 2013, Ovivo's backlog grew compared with the previous quarter. This increase, at constant exchange rates, results primarily from significant order taking in the electronics and metals market and in the municipal segment in North America, partially offset by a decrease in the energy and municipal markets in Europe, the Middle East and Africa. The backlog for Ovivo's aftermarket also increased compared with the past two quarters, following implementation of Ovivo's refocusing strategy aimed at significantly increasing this market with recurring revenues. For the Pulp and Paper Group, as discussed above, slowing economies in Europe and Asia led to a lower backlog compared with the past two quarters.
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 for the second quarter ended September 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 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 Inc.
GLV is a provider of water treatment technological solutions, under the Ovivo brand, and technological solutions used in pulp and paper production, under the GL&V brand. The Corporation operates in some 20 countries with approximately 2,100 employees. GLV Inc. 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 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, November 8, 2012 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 8, 2012 until midnight Thursday, November 15, 2012 at 1-855-859-2056 (1-416-849-0833-International), access code: 40891546#.
SOURCE: GLV INC.
For further information:
Investors and media:
France De Blois
Chief Financial Officer
Tel.: +1 514-284-2224