Official news[url=https://www.stockwatch.com/News/Item.aspx?bid=Z-C:DRX-2818227&symbol=DRX®ion=C][/url]
ADF Group settles Florida lawsuit, to receive $13.7M
2019-10-09 16:50 ET - News Release
Mr. Jean Paschini reports
ADF GROUP INC. ANNOUNCES AN OUT OF COURT SETTLEMENT OF A LITIGATION IN FLORIDA, USA
ADF Group Inc. has entered an out-of-court settlement of a suit in Florida, United States.
This settlement ends a legal dispute opposing ADF to one of its clients with regard to a structural steel fabrication and installation contract in Florida, USA. ADF's Management and its Board of Directors, deemed it appropriate, considering all the factors involved, to settle out of court.
Thus, within the next few days, ADF should collect a total sum of $13.7 million (US$10.5 million). This settlement will however generate a pre-tax loss of $6.9 million (US$5.3 million) which will be recognized in the results for the quarter ending October 31, 2019, given the write-off of an equivalent amount under the Corporation's Contract Assets financial statement heading.
Mr. Jean Paschini, Co-Chair of the Board of Directors and Chief Executive Officer of ADF Group Inc., indicates that taking into account all the factors related to this litigation, and although we were confident that we would have been able to pursue the legal proceedings, we deemed it more appropriate to look forward in order to continue growing our order backlog. The significant sums we should receive in the coming days will allow us to support this growth, despite the short-term impact this settlement will have on our financial results.
RESULTS FOR THE THIRD QUARTER ENDED OCTOBER 31, 2019
The Corporation will publish the results for the third quarter ending October 31, 2019, on December 5, 2019, prior to the opening of the markets.
About ADF Group Inc.
ADF Group Inc. is a North American leader in the design and engineering of connections, fabrication, including industrial coatings, and installation of complex steel structures, heavy steel built-ups, as well as in miscellaneous and architectural metals for the non-residential construction industry. ADF Group Inc. is one of the few players in the industry capable of handling highly technically complex mega projects on fast-track schedules in the commercial, institutional, industrial and public sectors. The Corporation operates two fabrication plants and two paint shops, in Canada and in the United States.
We seek Safe Harbor.