2011 FISCAL YEAR HIGHLIGHTS
- Record annual sales at $25,937,000; 9% sales growth compared with 2010
- 23% sales growth in Q4 2011 to $5,431,000 versus $4,392,000 in Q4 2010
- 40% gross margin in 2011 versus 39% in 2010
- 15% growth in 2011 adjusted EBITDA to $3,390,000 versus $2,960,000 in 2010
- Adjusted EBITDA margin of 13% versus 12% in 2010
- $431,000 in net earnings compared with $411,000 in 2010
- 100% elimination of the bank loan from $1,622,000
QUEBEC CITY, March 2, 2012 /CNW Telbec/ - Novik inc. (TSXV: NVK) releases today its 2011 annual results. All amounts are expressed in Canadian dollars.
|for the fiscal years ended December 31, 2011 and 2010||12 months||12 months|
|(in thousands dollars, except for amounts per share)||period||period|
| Earnings before depreciation, amortization, financial expenses,
stock-based compensation costs and income taxes
|Basic and diluted net earnings per share||0.009||0.008|
|Total long term financial liabilities||9,092||8,960|
|Shareholder's equity per share||0.25||0.23|
|Number of shares outstanding||48,470,858||48,470,858|
Mr. Michel Gaudreau, Chairman of the Board, is proud to announce a new annual sales record for Novik in 2011. Mr. Gaudreau stated "Novik has succeeded in achieving record sales over the past two years, and continues to enjoy positive sales momentum in early 2012. The efforts in innovation we have made in recent years to develop new, sophisticated and unique products have allowed Novik to better position itself in the industry and to stand out further from its competitors. At the same time, efforts to improve margins through better use of raw materials, equipment, and value-added production methods have allowed Novik to increase its profitability despite the constant pressure of raw material price levels."
During fiscal year 2011, the company generated $25,937,000 in revenues compared with $23,776,000 in 2010. Mr. Gaudreau explains "this 9% increase in sales was achieved despite the current challenging environment within the construction and exterior covering market in North America. Interest from current and potential customers is still being felt, allowing Novik to continue its growth in the industry. Sales growth was primarily realized in the North American market while international sales remained stable."
Sales in the final quarter of 2011 increased 23% to $5,431,000 compared with $4,392,000 in the same period of the previous year. This increase was realized mainly in the North American market through the addition of new customers and increased buying volume of certain existing customers. Our sales team is continuing their discussions with a number of different retailers and distributors in order to take advantage of business opportunities existing on the North American market.
EARNINGS BEFORE DEPRECIATION, AMORTIZATION, FINANCIAL EXPENSES, STOCK-BASED COMPENSATION COSTS AND TAXES ("Adjusted EBITDA")
Adjusted EBITDA is a measure that has no standardized meaning prescribed by international financial reporting standards (IFRS). It is therefore considered to be a non-IFRS measure in Canada. Accordingly, this measure may not be comparable to similar measures presented by other issuers. This measure is presented in order to provide shareholders and potential investors with additional information regarding the company's liquidity and ability to generate funds to finance its activities.
For the fiscal year ended December 31, 2011, Adjusted EBITDA amounted to $3,390,000 compared with $2,960,000 for the previous fiscal year, representing year-over-year growth of 15%. Adjusted EBITDA margin increased to 13% in 2011 versus 12% in 2012 as a result of Novik's continued focus on improvement in manufacturing and operating efficiencies.
The net earnings for fiscal year 2011 were $431,000 compared with $411,000 for the previous fiscal year. Novik generated an operating profit of $1,466,000 in 2011 compared with $1,256,000 in 2010. Management's initiatives to mitigate an increase in the cost of raw materials made it possible to improve profitability while allowing the organization to maintain its market development efforts.
Mr. Gaudreau concludes "after a strong fourth quarter of 2011 with sales growth of 23% compared with the same period in 2010, Novik is on track to maintain the same trend for first quarter 2012. This positive sales momentum is expected to continue, supported by the planned launch of two innovative exterior covering products which offer new finishes and improved aesthetics. Orders for these new products have already been received, and we expect to start their delivery in spring 2012.
Our sales team is continuing to focus on increasing revenues from existing clients while also penetrating new distributors and large retailers. These efforts are supported by Novik's growing presence and brand recognition in the marketplace and our unique and innovative product lines. Additionally, we are continuing to make efforts to increase the visibility of our products to end-consumers through our Novexpert network and our participation at trade shows specializing in housing and renovation.
For 2012, management will continue to focus on sales growth objectives while ensuring greater profitability from higher sales volume and increased manufacturing and operating efficiencies."
Novik (NVK) is a leader in the design, manufacturer and distribution of innovative polymer exterior siding, roofing coverings and accessories that replace traditional materials such as stone, brick or wood shingles. These products target the world-wide residential and commercial construction industry.
Forward-looking statements contained in this press release involve known and unknown risks, uncertainties or other factors that may cause actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
For further information:
For further information:
Chairman of the Board and Chief Executive Officer
Tel. : (418) 878-6161
E-mail : firstname.lastname@example.org
Pascal Bouthot, CA
Vice President and Chief Financial Officer
Tel. : (418) 878-6161
E-mail : email@example.com