- First quarter sales of $18.8 million, up from $11.6 million last year.
- EBITDA shows a loss of $0.1 million compared with a profit of
$1.3 million a year earlier.
- Net loss of $0.9 million in the first quarter of fiscal 2008, versus
net earnings of $0.4 million in 2007.
- As anticipated, results significantly impacted by a 40% decline in the
heavy-duty truck market in 2007.
QUEBEC CITY, Sept. 26 /CNW Telbec/ - Sigma Ventures Inc. (TSX Venture
Exchange: SVX), a leading composite and metal products manufacturer, today
announced results for the first quarter of its 2008 year ended July 28, 2007.
The significant sales increase compared with the prior year, mainly reflects
the acquisitions of Camoplast's composite truck division and of Groupe Synergy
Composites Inc., respectively completed on January 27, 2007, and February 1,
2007, as well as of René Composites Materials Ltd. for the entire period,
versus only one month a year ago. As anticipated, operating results reflect
the substantial decline in the heavy-duty truck market since the beginning of
2007 following the introduction of new environmental regulations regarding
greenhouse gas emissions on January 1, 2007.
FIRST QUARTER RESULTS
For the three-month period ended July 28, 2007, sales amounted to
$18.8 million, up 62.4% from $11.6 million for the three-month period ended
July 31, 2006, owing to the aforementioned acquisitions. However and as
anticipated, sales were sequentially down from $22.4 million in the preceding
quarter reflecting the sustained decline in the heavy-duty truck sector since
the beginning of 2007.
These sequentially-lower sales, combined with a $0.2 million negative
impact from the appreciation of the Canadian dollar, temporarily affected
profitability. As a result, the EBITDA showed a small loss of $0.1 million
compared with a profit of nearly $1.3 million during the first quarter last
year. Net loss stood at $0.9 million, or a loss of $0.022 per share, basic and
diluted, versus net earnings of $0.4 million, or $0.014 per share ($0.012 on a
diluted basis), a year earlier.
For the period ended July 28, 2007, cash flows from operating activities
before changes in non-cash working capital items used funds of $0.8 million,
compared with a cash generation of $1.0 million last year. On July 28, 2007,
Sigma's balance sheet remained solid with a total net debt of $19.0 million
and shareholders' equity of $19.9 million.
"Although slightly disappointing, these results strengthen our
determination to optimize operations of business entities acquired near the
end of fiscal 2007 in order to achieve synergies by sharing best practices and
exploiting new marketing opportunities at all levels of the organization,"
mentioned President and CEO, Denis Bertrand. "In addition, we will ensure that
all our operating subsidiaries support overall corporate objectives."
EXPANSION AT FAROEX AND NEW EQUIPMENT IN TWO PLANTS
Sigma's strategy aimed at fostering growth through the development of new
value-added products and continuous improvement of existing ones through
enhanced manufacturing processes is bearing fruit. First, during the second
quarter, the Company will expand its Faroex facility by 20,000 square feet to
increase production capacity of components for the wind energy market in order
to meet an increasingly greater demand.
Second, Sigma took advantage of lower demand for heavy-duty truck
components to finalize its automation and robotization program by acquiring
new machinery and equipment for its Saint-Ephrem and Sainte-Clotilde plants.
In addition to reducing costs, this program aims to benefit from sufficient
capacity for the anticipated recovery in heavy-duty trucks in 2008 and 2009
and to offer clients a one-stop-shop solution in terms of technological
expertise and manufacturing processes.
"We continue to carefully look at acquisition opportunities, particularly
in the vast U.S. market. The slowdown in the heavy truck industry validates
our decision to focus on acquisition targets that would bring diversification
by business segment, industry and geographic location in order to build
sustainable shareholder value. We remain very confident and enthusiastic about
our future. Sigma benefits from a solid and experienced management team as
well as highly devoted and competent employees. We offer world-class products
to global leaders, a status we aim to achieve in our field," concluded
SELECTED FINANCIAL INFORMATION
Consolidated results of operations Three-month periods ended
(in Canadian dollars) July 28, 2007 July 31, 2006
Sales 18,780,466 11,564,375
EBITDA (117,864) 1,294,283
Earnings (loss) before income taxes (1,332,047) 692,842
Net earnings (loss) (934,529) 436,138
Net earnings (loss) per share
Basic (0.022) 0.014
Diluted (0.022) 0.012
Consolidated balance sheet data As at
(in Canadian dollars) July 28, 2007 April 30, 2007
Total assets 57,891,878 59,014,965
Total liabilities 37,986,323 38,251,176
Shareholders' equity 19,905,555 20,763,789
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 569 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 September 26, 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 unaudited 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 TSX Venture 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, firstname.lastname@example.org; Bertrand
Côté, Chief Financial Officer, (418) 780-3903, email@example.com;
MaisonBrison/BarnesMcInerney: Martin Goulet, CFA, Senior Vice-President, IR,
(514) 731-0000, Ext. 229, firstname.lastname@example.org