MONTREAL, Feb. 14, 2013 /CNW Telbec/ -
(All amounts are in Canadian dollars.)
For the third quarter of fiscal 2013, the Corporation reported a net
loss of $1.4 million or $0.03 per share, basic and diluted, compared
with a net loss of $1.6 million or $0.04 per share, basic and diluted,
for the corresponding period of the previous fiscal year. Excluding the net loss from discontinued operations discussed below, the
net earnings from continuing operations attributable to shareholders of
GLV Inc. is $3.0 million or $0.07 per share, basic and diluted,
compared with a net loss of $1.7 million or $0.04 per share, basic and
diluted, for the corresponding quarter of the previous fiscal year. This improved overall profitability stems primarily from the favourable
change in fair value of derivative financial instruments, lower net
financial expenses, and foreign exchange gains, partly offset by the
decline in the volume of business during the quarter compared with the
same quarter of the previous fiscal year.
Ovivo's plan to refocus announced last August continues to move forward
as planned. In line with Ovivo's new business strategy, during the quarter, the
Corporation decided to discontinue all operations in the waste to
energy segment, including the sale of its joint venture operating in
this market, which was completed on December 31, 2012. With respect to this segment, losses of $4.5 million and $6.5 million,
respectively, were reported under discontinued operations for the
three-month and nine-month periods ended December 31, 2012.
Although operating results are lower for both the Pulp and Paper Group
and Ovivo compared with the previous fiscal year, the markets targeted
by Ovivo's strategy to refocus its business continue to show promising
signs. The municipal market in Europe, Middle East and Africa generated better
results than the same quarter of the previous fiscal year by continuing
to perform well in contracts execution and follow-up. Results for other
targeted markets were slightly below levels for the same period of the
previous fiscal year due to the lower backlog during the second half of
fiscal 2012.
The workforce reduction plan is on target and should be nearly completed
by the middle of the next fiscal year. Also, as announced in the
previous MD&A, Ovivo sold one of its entities located in Finland during
the third quarter, recognizing an additionnal loss of $0.6 million.
The Pulp and Paper Group's operating results were lower than for the
same quarter of the previous fiscal year, mainly due to the lower
backlog during the first half of the current fiscal year caused by the
economic slowdown in Europe and Asia.
For the nine-month period ended December 31, 2012, the Corporation
reported a net loss of $13.2 million or $0.30 per share, basic and
diluted, compared with a net loss of $1.3 million or $0.03 per share,
basic and diluted, for the corresponding period of the previous fiscal
year. The Corporation reported a net loss from continuing operations
attributable to shareholders of GLV Inc. of $6.7 million or $0.15 per
share, basic and diluted, compared with $2.0 million or $0.05 per
share, basic and diluted, for the corresponding period of the previous
fiscal year. Excluding the impact of discontinued operations, the
changes stemmed primarily from the higher income tax expense and the
lower operating income mainly following restructuring costs of
$2.9 million, and an impairment charge of $0.7 million, partly offset
by the decrease in net financial expenses.
Backlog and outlook
As at December 31, 2012, the backlog, excluding that of discontinued
operations, amounted to $334.2 million, which is comparable to the
level at the end of the previous quarter. The increase in the Pulp and Paper Group's backlog, mainly in the pulp
segment in North America and Europe, was offset by the lower backlog at
Ovivo. This decrease resulted mainly from the cyclical slowdown for
order-taking by Ovivo in the electronics and metals market and in the
municipal segment in Europe, Middle East and Africa, partly offset by
an increase in the energy segment. Meanwhile, the order backlog in Ovivo's parts and services market showed
an increase for the third consecutive quarter, following implementation
of the group's refocusing strategy aimed at increasing this market
which generates recurring revenues.
For fiscal 2013 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 approximately $600
million.
This press release presents the highlights for the third quarter ended
December 31, 2012. For a detailed analysis, see the interim
management's discussion and analysis and unaudited interim condensed
consolidated financial statements, filed today on the websites of SEDAR
(www.sedar.com) and the Corporation (www.glv.com). Note that non-IFRS financial measures were used to analyze
performance, as management considers that they provide useful
information for investors seeking to assess the Corporation's
performance and financial position.
About GLV Inc.
GLV is a provider of water treatment technological solutions, under the
Ovivo brand, and technological solutions used in pulp and paper
production, under the GL&V brand. The Corporation operates in some 20
countries with approximately 2,100 employees. GLV Inc. is a public
company whose shares trade on the Toronto Stock Exchange under the
ticker symbols GLV.A and GLV.B.
Notice regarding forward-looking statements
Certain statements in this press release regarding management's
objectives, projections, estimates, expectations or forecasts may
constitute forward-looking statements within the meaning of applicable
securities legislation. Forward-looking statements are recognized by
the use of terms such as "forecast," "project," "could," "plan," "aim,"
"estimate" and other similar terms, possibly used in the future or
conditional, particularly with regard to certain assumptions. The
management of GLV would like to point out that forward-looking
statements involve a number of uncertainties and known and unknown
risks such that GLV's actual and future results could differ
considerably from those stated. There can be no assurance as to the
materialization of the results, performance or achievements as
expressed in or underlying the forward-looking statements. The
forward-looking statements included in this press release were made as
of the date hereof, and unless required to do so pursuant to applicable
securities legislation, management of GLV assumes no obligation to
update them.
Additional information about the risk factors to which GLV is exposed is
provided under section 10, "Risks and uncertainties," of the MD&A for
the fiscal year ended March 31, 2012 available on SEDAR (www.sedar.com) and the Corporation's website (www.glv.com).
CONFERENCE CALL
Date and time: Thursday, February 14, 2013 at 2:00 p.m. (EST)
Dial-in number:
1-888-231-8191 (North America)
1-647-427-7450 (International)
An audio webcast of the conference call will be streamed live on www.glv.com. An audio recording will be accessible on demand from 5:00 p.m. (EST),
February 14, 2013 until midnight Thursday, February 21, 2013 at
1-855-859-2056 (1-416-849-0833-International), access code: 89360391#.
SOURCE: GLV INC.
