- Fiscal 2007 sales of $83.2 million, EBITDA of $9.4 million and net
earnings of $3.7 million.
- Fourth quarter sales reach $22.4 million, up from $2.9 million last
- EBITDA during the fourth quarter of $1.7 million compared with a loss
of $0.6 million a year earlier.
- Net earnings of $0.5 million in the fourth quarter of 2007 versus a net
loss of $0.5 million in 2006.
QUEBEC CITY, Aug. 23 /CNW Telbec/ - Sigma Ventures Inc. (TSX Venture
Exchange: SVX), a leading composite and metal products manufacturer, today
announced results for the fourth quarter and fiscal year ended April 30, 2007.
For the fourth quarter, the Company posted significant sales, EBITDA and net
earnings increases compared with the prior year, mainly reflecting the recent
acquisitions of Camoplast's composite truck division and Groupe Synergy
Composites Inc., respectively completed on January 27, 2007, and February 1,
2007. Results for the fiscal year also reflect the acquisition of René
Composites Materials Ltd. on June 28, 2006, as well as a full-year
contribution from Faroex Ltd., which was acquired on March 15, 2006.
FISCAL 2007 RESULTS
For the fiscal year ended April 30, 2007, sales amounted to
$83.2 million, up 466% from $14.7 million for fiscal 2006. EBITDA for the year
ended April 30, 2007 was $9.4 million, compared with $1.0 million for the same
period in 2006. EBITDA margin reached 11.3% in fiscal 2007, up sharply from
6.6% in fiscal 2006. The Company posted net earnings of $3.7 million or $0.104
per share ($0.099 per share, fully diluted) for the year ended April 30, 2007,
compared with $0.2 million or $0.011 per share ($0.011 per share, fully
diluted) for fiscal 2006. These increases were primarily attributable to
acquisitions made during fiscal 2007.
For the year ended April 30, 2007, cash flows from operating activities
before changes in non-cash working capital items reached $5.6 million, or
$0.16 per share, compared with $0.6 million, or $0.03 per share, in fiscal
2006. On April 30, 3007, Sigma's balance sheet was strong, with a total net
debt of $19.0 million and shareholders' equity of $20.8 million following the
completion of a $5.0 million private placement in March.
FOURTH QUARTER RESULTS
Sales for the quarter ended April 30, 2007 totalled $22.4 million, up
$19.5 million from $2.9 million for the same period last year and down
$0.5 million from $22.9 million in the third quarter. The year-over-year sales
increase was mainly due to the acquisitions mentioned above, while the small
sequential decline was caused by lower sales to the heavy truck industry owing
to new environmental regulations on greenhouse gas emissions that came into
effect on January 1, 2007.
Fourth quarter EBITDA was $1.7 million, up $2.3 million from negative
$0.6 million in the same period of fiscal 2006, primarily due to the
contribution of companies acquired during the year. EBITDA would have been
higher if not for $547,200 in additional fixed costs at the Acton Vale and
Tring Jonction plants in the fourth quarter, as the transfer of operations of
the Tring Jonction plant was only completed in May 2007.
Net earnings for the fourth quarter ended April 30, 2007 amounted to
$0.5 million or $0.013 per share ($0.013 per share, fully diluted), compared
with a net loss of $0.5 million or $0.026 per share ($0.026 per share, fully
diluted) for the same period last year.
DEPLOYMENT OF GROWTH STRATEGY
Early in the fourth quarter, the Company completed the acquisition of
Groupe Synergy Composites Inc. (GSC), a company specializing in the
development of advanced composite products for the utility vehicle and bus
industries. GSC's innovative technology and promising product line are a
natural fit for Sigma, as the Company integrates GSC's longstanding culture of
innovation and its unique technology, while Sigma's manufacturing capability
allows GSC to address the potential of its existing markets.
"Sigma Ventures clearly demonstrated its ability to achieve measured and
opportunistic growth while maintaining a strong financial performance," said
President and CEO, Denis Bertrand. "During our 2007 fiscal year, we
successfully integrated three companies into our corporate framework,
providing us with additional access points to a broad range of opportunities
while achieving solid revenue and EBITDA growth supported by a healthy,
consistent cash flow."
"We are building a company that has abundant technological expertise,
excellent products and a solid reputation in the marketplace. To sustain that
reputation, we intend that fiscal 2008 will be primarily a period of
consolidation for Sigma as we strive to ensure that each of our operating
subsidiaries works together closely in support of overall corporate objectives
Still, we will continue to look in a disciplined manner at acquisition
opportunities, particularly in the vast U.S. market. Given the anticipated
slowdown in the heavy truck industry, we must maintain our focus on
diversification by business segment, industry and geographic location to build
sustainable shareholder value," concluded Mr. Bertrand.
SELECTED FINANCIAL INFORMATION
Consolidated results Three-month periods Fiscal years
of operations ended April 30 ended April 30
(in Canadian dollars) ------------------------- -------------------------
2007 2006 2007 2006
$ $ $ $
Sales 22,397,613 2,868,189 83,161,145 14,695,424
EBITDA 1,714,453 (603,870) 9,416,190 974,303
income taxes 278,404 (803,853) 5,183,768 360,378
Net earnings 532,548 (549,472) 3,651,313 205,793
Net earnings per share
Basic 0.013 (0.026) 0.104 0.011
Diluted 0.013 (0.026) 0.099 0.011
Consolidated balance sheet data As at
(in Canadian dollars) -------------------------
April 30, April 30,
Total assets 59,380,750 18,286,942
Total liabilities 38,616,961 14,227,623
Shareholders' equity 20,763,789 4,059,319
NON-GAAP FINANCIAL MEASURES
The information included in this press release contains certain
information which are not financial measures prescribed under GAAP. Sigma
Ventures uses earnings before interest, taxes, depreciation and amortization
("EBITDA") in the assessment of its financial performance. As there is no
generally accepted method of calculating this financial measure, it may not be
comparable to similar measures reported by other companies. EBITDA refers to
earnings before interest, income taxes, depreciation, amortization and other
non-operating expenses and revenues. This measure does not represent the cash
flow for the repayment of long-term debt, the payment of dividends,
reinvestment or other discretionary uses, and should not be considered in
isolation or as a substitute of other measures of performance calculated
according to GAAP.
ABOUT SIGMA VENTURES
Sigma Ventures Inc. (TSX-V: SVX), a leading composite and metal products
manufacturer, has five operating subsidiaries and employs 600 people. The
Company is active in the growing heavy-duty truck, coach, transit and bus,
train and subway, machinery, agriculture, light forestry, and wind energy
market segments. Sigma sells its products to original equipment manufacturers
and distributors in the United States, Canada and Europe.
Sigma has had a recent history of steady growth and accretive
acquisitions. Its recent and planned growth initiatives are expected to
continue to raise Sigma's profile with investors.
This press release contains certain forward-looking statements with
respect to the Company. Such forward-looking statements are dependent upon a
certain number of factors and are subject to risks and uncertainties. Actual
results may differ from those expected. The information contained in this
press release is dated August 22, 2007, the date on which the Directors
approved the press release. Management does not assume any obligation to
update or revise any forward-looking statements, whether as a result of new
information or future events, except when required by the regulatory
Note to readers: Complete audited consolidated financial statements and
Management's Discussion & Analysis of Financial Position and Operating Results
were posted on SEDAR and are available at www.sedar.com.
The exchange does not accept responsibility for the adequacy or accuracy
of this release.
For further information:
For further information: Sigma Ventures Inc.: Denis Bertrand, Chief
Executive Officer, (418) 780-3902, email@example.com; Bertrand
Côté, Chief Financial Officer, (418) 780-3903, firstname.lastname@example.org;
MaisonBrison/BarnesMcInerney: Martin Goulet, CFA, Senior Vice-President, IR,
(514) 731-0000, Ext. 229, email@example.com