Price Jump? Its earnings, EBITDA up 45% This Q Report,ThePR SAINT-PHREM-DE-BEAUCE, QUBEC--(Marketwired - March 2, 2017) - Sigma Industries Inc. (TSX VENTURE:SSG), a manufacturing company specializing in the production of composite components, announces results for the third quarter of its 2017 fiscal year ended January 28, 2017.
"Sigma Industries' third quarter results remain affected by the slowdown in the U.S. heavy-duty truck industry. Despite lower revenue, we remained profitable with net income of $733,000 due to benefits from our specialization in the closed mould manufacturing process, as well as our constant focus on reducing costs and further improving efficiency. While we expect market conditions to remain relatively difficult in the heavy-duty truck industry, we are confident in our ability to further expand our reach in our main markets. For this reason, we recently announced our intention to proceed with new capital investments as part of a modernization program of our facilities and equipment to ensure we remain a leading manufacturer of innovative and high-quality products," said Denis Bertrand, President and Chief Executive Officer of Sigma Industries.
THIRD QUARTER RESULTS
Revenues for the third quarter of fiscal 2017 amounted to $13.1 million, compared with $15.1 million in the third quarter of fiscal 2016. This decrease is essentially attributable to lower revenues from the heavy-duty truck industry resulting from a market slowdown in the United States. This factor was partially offset by higher sales to the wind energy market due to increased customer orders.
Earnings before interest, taxes, depreciation and amortization ("EBITDA") were $1.3 million, representing 10.0% of revenues, versus $900,153, or 6.0% of revenues, a year earlier. The increase in dollars and as a percentage of sales mainly reflects the favourable settlement of a litigation with a raw-material supplier applied against cost of sales and further benefits from the specialization in closed-mould manufacturing. Excluding items not related to current operations, such as variations in the fair value of foreign exchange derivatives held by the Company, adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") were $937,974 in the third quarter of fiscal 2017, versus $989,518 last year.
Sigma Industries concluded the third quarter of fiscal 2017 with net income of $733,133, or $0.06 per basic share ($0.03 per diluted share), versus $209,935, or $0.02 per basic and diluted share, in the third quarter of fiscal 2016.
NINE-MONTH RESULTS
For the nine-month period ended January 28, 2017, revenues reached $39.1 million, versus $49.5 million in the nine-month period ended January 30, 2016. EBITDA stood at $3.0 million, compared with $3.4 million in the prior year, while adjusted EBITDA amounted to $3.3 million, stable from a year earlier. Net income totalled $1.2 million, or $0.10 per basic share ($0.05 per diluted share), versus $1.2 million, or $0.10 per basic and diluted share, last year.
| SELECTED FINANCIAL INFORMATION |
| Consolidated results of operations | Three months ended | Nine months ended |
| (unaudited, in thousands of Canadian dollars except per-share amounts) | January 28, 2017 | January 30, 2016 | January 28, 2017 | January 30, 2016 |
| | $ | $ | $ | $ |
| Revenues | 13,078 | 15,053 | 39,110 | 49,493 |
| EBITDA | 1,310 | 900 | 2,978 | 3,396 |
| Net income | 733 | 210 | 1,169 | 1,215 |
| | per share (basic) | 0.06 | 0.02 | 0.10 | 0.10 |
| | per share (diluted) | 0.03 | 0.02 | 0.05 | 0.10 |
| | | | | | |
| Reconciliation of EBITDA, adjusted EBITDA and net income | Three months ended | Nine months ended | |
| (unaudited, in thousands of Canadian dollars) | January 28, 2017 | | January 30, 2016 | January 28, 2017 | January 30, 2016 | |
| | $ | | $ | $ | $ | |
| Net income | 733 | | 210 | 1,169 | 1,215 | |
| PLUS (less): | | | | | | |
| Income tax expense | - | | - | - | 1 | |
| Depreciation and amortization | 331 | | 371 | 1,044 | 1,101 | |
| Financial expenses | 246 | | 319 | 765 | 1,079 | |
| EBITDA | 1,310 | | 900 | 2,978 | 3,396 | |
| PLUS (less): | | | | | | |
| Net loss (gain) in fair value of foreign exchange derivatives | (372 | ) | 89 | 174 | 149 | |
| Write-off of financial expenses and fees related to new financing | - | | - | 192 | - | |
| Gain on disaster | - | | - | - | (264 | ) |
| Adjusted EBITDA | 938 | | 989 | 3,344 | 3,281 | |
| | | | | | | |
| Consolidated balance sheet data | As at |
| (in thousands of Canadian dollars) | January 28, 2017 | April 30, 2016 |
| | $ | $ |
| Total assets | 23,259 | 24,896 |
| Total liabilities | 18,615 | 21,697 |
| Shareholders' equity | 4,644 | 3,699 |
Read more at https://www.stockhouse.com/news/press-releases/2017/03/02/sigma-industries-reports-fiscal-2017-third-quarter-results#kk4efx8PX0WHxd8M.99