MONTREAL, June 6, 2013 /CNW Telbec/ - (All amounts are in Canadian dollars.)
GLV Inc. (GLV Group) announced today its financial results for the fourth quarter and the fiscal year ended March 31, 2013. The Corporation returned to profitability with net earnings of $0.4 million or $0.01 per share, basic and diluted, for the fourth quarter ended March 31, 2013, compared with a net loss of $52.8 million or $1.20 per share, basic and diluted, for the same quarter of the previous fiscal year, which included an asset impairment loss of $40.9 million. "With the backlog at its highest level for the past five quarters, GLV Inc.'s management team is satisfied with the work done until now to deliver sustained financial performance," stated Richard Verreault, President and Chief Executive Officer of GLV Inc.
The improvement in operating results over the previous fiscal year demonstrates the progress achieved following the implementation of Ovivo's business refocusing strategy announced at the beginning of fiscal 2013.As a result, order taking in Ovivo's targeted markets met management's expectations, contributing to the increase in the backlog as at March 31, 2013.
Compared with the fourth quarter of the previous fiscal year during which a significant asset impairment loss was recognized, the decrease in restructuring costs and the lower income tax expense also contributed to the return to profitability for the current quarter.
GL&V Pulp and Paper's operating performance was lower than for the same quarter of the previous year, owing primarily to the reduction of the backlog during the first half of fiscal 2013 caused by the continuing economic slowdown in Europe and Asia that mainly affects the new equipment market.The weaker performance was also attributable to cost overruns on certain new equipment sale projects.
Fiscal 2013
For the fiscal year ended March 31, 2013, the Corporation reported a net loss of $12.8 million or $0.29 per share, basic and diluted, compared with a net loss of $54.1 million or $1.23 per share, basic and diluted, for the corresponding period of the previous fiscal year.The loss from continuing operations attributable to shareholders of GLV Group (excluding the portion attributable to other shareholders of non-wholly owned subsidiaries) amounted to $5.7 million or $0.13 per share, basic and diluted, compared with $53.4 million or $1.21 per share, basic and diluted, for the corresponding period of the previous fiscal year. Excluding the impact of discontinued operations, the changes resulted primarily from the asset impairment charge recognized in 2012, the decrease in net financial expenses, and lower restructuring costs, partly offset by the increase in the income tax expense.
Discontinued operations
In line with Ovivo's new business strategy, the Corporation decided during fiscal 2013 to discontinue all operations in the Waste to Energy Industrial segment, including the sale of its joint venture operating in this market, which was completed during the fiscal year. With respect to this segment, losses of $0.5 million and $7.1 million, respectively, were reported under discontinued operations for the three-month and twelve-month periods ended March 31, 2013.
Backlog and outlook
As at March 31, 2013, GLV Group's backlog stood at $380.0 million, its highest level in the past five quarters,mainly driven by Ovivo's backlog resulting from three large contracts in Electronics and Metals as announced on April 9, 2013. Although Ovivo's backlog decreased in its other segments, tendering activity remains reasonable and the expected profitability of the backlog improved considerably as at March 31, 2013, compared with March 31, 2012. In the Parts and Services market, the backlog is stable and the measures taken to develop this important niche in Ovivo's strategy should have a gradual impact over fiscal 2014.
At GL&V Pulp and Paper, the backlog is comparable to the previous quarter's level, owing mainly to order taking in the Parts and Services market.Last, as at March 31, 2013, the backlog of the Van der Molen division, which was part of Christ Water Technology, is at its highest level since the acquisition of this company in 2009.
Fiscal 2014 will be a year of investment for GLV Group, which is expected to translate into a gradual and sustained improvement in profitability.For fiscal 2014 as a whole, assuming exchange rates remain stable at current levels and in light of the outlook in the segments serviced by each group, and in particular the refocusing of Ovivo's operations, the Corporation expects consolidated revenues to total between $600 million and $625 million.
From GLV to GLV Group
During fiscal 2013, management initiated a strategic reflection that led to a review of the Corporation's mission and business strategy as well as to a change in its business name. This change included a corporate signature representing what underlies GLV's past, present and future success, namely: its employees and its know-how. That is how GLV Group; Insightful people was born.