Third Quarter 2021 Results TORONTO, Nov. 09, 2021 (GLOBE NEWSWIRE) -- Shawcor Ltd. (“Shawcor” or the “Company”) (TSX: SCL) reported today its operational and financial results for the three and nine months ended September 30, 2021. This press release should be read in conjunction with the Company’s Management Discussion and Analysis (MD&A) and interim consolidated financial statements for the three and nine months ended September 30, 2021, which are available on the Company’s website and at www.sedar.com.
Highlights from the third quarter include:
- Adjusted EBITDA1 in the third quarter of 2021 was $31.8 million, 79% higher than the $17.8 million of Adjusted EBITDA reported in the third quarter of 2020, which included $17.0 million of COVID-19 related government wage subsidies.
- Order backlog increased by 4% to $507 million as at September 30, 2021, compared to $489 million at June 30, 2021.
- The Company has repaid $130 million of its outstanding Credit Facility debt in the current year. This includes a $35 million repayment made in the third quarter of 2021 and an additional $20 million repayment made subsequent to the end of the third quarter.
- Third quarter 2021 consolidated revenue was $291 million, 9% higher than the $268 million reported in the third quarter of 2020. Non-oil and gas businesses grew to 40% of total revenue.
- Net Loss2 in the third quarter of 2021 was $8.3 million (or loss per share of $0.12 diluted) compared with a net loss of $18.3 million (or $0.26 loss per share diluted) in the third quarter of 2020.
“The key macro drivers for our businesses continue to evolve favourably, with increasing global investment in critical infrastructure, accelerating demand for premium and electric vehicles, and strengthening commodity price fundamentals which underpin our confidence in a multi-year upcycle for virtually all of Shawcor’s product lines,” said Mike Reeves, President and CEO of Shawcor. “In the immediate term, seasonal cycles, an expected slowdown in pipe coating project activity, and increasingly significant tension in raw material supply chains are expected to yield slightly lower earnings in Q4-2021 and Q1-2022 than were seen in Q1-2021. Despite these near-term effects and the elimination of government subsidies, which enhanced 2021 earnings performance, I am confident that our full year 2022 Adjusted EBITDA1 will be greater than 2021 with weighting to the second half of the year.”
“During the third quarter we delivered revenue growth from all three segments of our operations compared with the prior year. Shawcor generated Adjusted EBITDA1 of $31.8 million on $291.4 million of revenue reflecting robust demand for many products within our Automotive & Industrial and Composite Systems segments, partially offset by expected lower activity within our Pipeline & Pipe Services segment and increasingly tight supply chain impacts across several business lines,” said Mr. Reeves. “The Company continues to focus on debt repayment, business efficiencies and cost reductions.”
1 EBITDA and Adjusted EBITDA are Non-GAAP measures. Non-GAAP measures do not have standardized meanings under GAAP and are not necessarily comparable to similar measures provided by other companies. See Section 5.0 – Reconciliation of Non-GAAP Measures for further details and a reconciliation of these Non-GAAP measures.
2 Net Loss attributable to shareholders of the Company.
https://www.globenewswire.com/news-release/2021/11/09/2330994/31758/en/Shawcor-Ltd-Announces-Third-Quarter-2021-Results.html