CALGARY, Oct. 20, 2017 /CNW/ - (TSX – PFB) PFB Corporation ("PFB" or the "Corporation") reports its financial results for the third quarter ended September 30, 2017.
For the three month period ended September 30, 2017, PFB Corporation reports consolidated net income of $1,519,000, basic earnings of $0.23 per share, as compared to a consolidated net income of $1,936,000, basic earnings of $0.29 per share, in the comparative three month period of 2016.
Consolidated sales were $28,649,000 in the third quarter of 2017, compared to sales of $28,838,000 in the third quarter of 2016, a decrease of $189,000 or 0.7%. For the three month period, gross margin declined to 23.2% from 25.8% in the comparative 2016 period.
The effects of an increase in our principal raw material costs, caused by manufacturing disruptions in the upstream petrochemical supply chain, that were experienced in the first quarter and second quarter operations persisted into early July, but normalized during the latter two months of the third quarter period.
For the nine month period ended September 30, 2017, consolidated net income was $1,041,000, basic earnings of $0.16 per share, as compared to net income of $3,543,000, basic earnings of $0.53 per share reported in the comparative nine month period of 2016. Sales in the nine month period ended September 30, 2017 were $77,512,000 as compared to sales of $76,475,000 in the comparative nine month period of 2016. For the nine month period, gross margin was 19.4%, compared to 24.5% in the comparative 2016 period.
Adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA)1 for the third quarter of 2017 was $3,240,000 as compared to adjusted EBITDA of $4,066,000 in the third quarter of 2016, a decrease of $826,000. For the nine month period ended September 30, 2017, adjusted EBITDA was $5,034,000, as compared to $9,109,000 in the nine month period 2016, a decrease of $4,075,000.
Additionally, a copy of the presentation PFB will present at the TMX Industrial Technology Investor Day in Toronto on October 24, 2017 is available at its website, www.pfbcorp.com.
The Board of Directors has approved an increase of $0.01 to the regular quarterly dividend per common share; accordingly, a regular quarterly dividend of $0.08 per common share will be paid on November 30, 2017 to shareholders of record on November 15, 2017.
1Non-IFRS Financial Measures
Adjusted EBITDA is a supplemental measure of performance not defined by International Financial Reporting Standards (IFRS) and, therefore, it does not have any standardized meaning under IFRS. Therefore, the measure is unlikely to be comparable to similar measures presented by other issuers. The reconciliation of adjusted EBITDA to net income and the reason why we use this measure can be found in Management's Discussion and Analysis (MD&A) for the third quarter ended September 30, 2017, under section 19 titled "Non-IFRS Financial Measures".
PFB Corporation has two operating subsidiaries, Plasti-Fab Ltd. that operates in Canada and PFB America Corporation that operates in the United States. The Canadian segment primarily derives its revenues from the sale of expanded polystyrene ("EPS") foam products, which it manufactures at its facilities in Canada. The USA segment primarily derives its revenues from the sale of EPS foam products, customized log and timber structures made at its facilities in the United States which typically include design and installation services that together provide the basis for a bundled sale of its manufactured products. Both segments develop, manufacture and market insulation building products and technologies based on expanded polystyrene technology; that, when used as components of a building envelope, enable residential and commercial structures to be highly energy-efficient. We are also experts in engineered geotechnical applications of our products. PFB building products are used in both new and renovation markets in residential, commercial and industrial projects.
PFB Corporation is listed for trading on the Toronto Stock Exchange, symbol PFB.
PFB's condensed interim consolidated financial statements and interim MD&A for the three month periods ended September 30, 2017 and 2016 will be posted on SEDAR (www.sedar.com) on or after October 26, 2017.
SOURCE PFB Corporation
For further information: C. Alan Smith, Chief Executive Officer, PFB Corporation, #100, 2886 Sunridge Way NE, Calgary, Alberta T1Y 7H9, Tel: (403) 569-4303, Fax: (403) 569-4075