OAKVILLE, ON, March 6, 2013 /CNW/ - Vicwest Inc. (the "Company") (TSX:
VIC, VIC.DB) today reported strong operating performance gains for the
three and 12 months ended December 31, 2012 as well as record annual
agricultural product sales.
Consolidated Performance Highlights
($ millions except per share)
|
Three months
ended
December 31,
2012
|
Three months
ended
December 31,
2011
|
12 months
ended
December 31,
2012
|
12 months
ended
December 31,
2011
|
Revenue
|
$
|
103.1
|
$
|
108.8
|
$
|
411.8
|
$
|
417.3
|
Gross profit
|
|
19.1
|
|
17.0
|
|
76.1
|
|
67.7
|
EBITDA1
|
|
8.7
|
|
6.2
|
|
34.3
|
|
24.7
|
EBITDA margin1
|
|
8.4%
|
|
5.7%
|
|
8.3%
|
|
5.9%
|
Net income
|
|
2.8
|
|
1.8
|
|
11.6
|
|
12.5
|
Net income per share (basic)
|
|
0.15
|
|
0.09
|
|
0.62
|
|
0.67
|
Net income excluding change in fair value of embedded derivative2
|
|
3.3
|
|
1.8
|
|
12.8
|
|
8.7
|
Net income per share (basic, excluding change in fair value of embedded
derivative2)
|
|
0.18
|
|
0.09
|
|
0.68
|
|
0.45
|
|
|
|
|
|
|
|
|
|
1EBITDA is calculated as earnings before finance expense, income taxes,
depreciation, amortization and change in fair value of embedded
derivative. EBITDA and EBITDA margin are non-IFRS measures.
|
2 Net income excluding change in fair value of the embedded derivative is
a non-IFRS measure.
|
"We ended 2012 with another strong quarter of earnings performance and
the successful completion of our largest-ever organic growth
investments," said Colin Osborne, President and CEO. "Higher earnings
reflect growth in value-added product sales at Westeel, All Weather and
in Vicwest Building Products western Canadian regions, lower
procurement costs and improving business efficiencies. Our newly opened
insulated metal panel ("IMP") plant in Little Rock, Arkansas, and our
new automated roofline at Westeel Winnipeg prepare us well for the next
stage of growth."
"Continued cash flow and earnings growth throughout the final half of
2012, along with strong working capital management, allowed us to
dramatically reduce year end leverage even while investing in these
important capital projects," said Kent Harris, Chief Financial Officer.
"Our financial position is the strongest it's been in years and gives
us the foundation to support our organic and acquisition growth plans
to achieve broader market leadership."
Divisional Results
($ millions)
|
Three months
ended
December 31,
2012
|
Three months
ended
December 31,
2011
|
12 months
ended
December 31,
2012
|
12 months
ended
December 31,
2011
|
Revenue
|
|
|
|
|
|
|
|
|
Vicwest Building Products
|
$
|
66.7
|
$
|
75.1
|
$
|
256.3
|
$
|
274.6
|
Westeel
|
|
36.5
|
|
33.7
|
|
155.5
|
|
142.7
|
Net Income3
|
|
|
|
|
|
|
|
|
Vicwest Building Products
|
$
|
2.4
|
$
|
0.6
|
$
|
5.4
|
$
|
2.2
|
Westeel
|
|
3.6
|
|
3.7
|
|
19.1
|
|
14.8
|
|
|
|
|
|
|
|
|
|
3 Net income before finance expense, income taxes and change in fair
value of embedded derivative.
|
Divisional Highlights
-
Vicwest Building Products ("Vicwest BP") opened its new 100,000 square
foot IMP manufacturing plant in Little Rock, Arkansas in November 2012,
a strategic move that increases IMP capacity by more than 50% and
creates a more effective network to serve the growing North American
IMP market;
-
Subsequent to quarter end, on January 22, 2013, the Company executed its
rights under a convertible debenture and acquired 56% of the common
shares of All Weather. The purchase of the majority position supports
the Company's overall growth strategy, provides greater opportunities
for IMP market expansion across North America and capitalizes on recent
business advancements between the two companies;
-
Westeel automated the production of its innovative roof system products
in the fourth quarter, a move that enhances throughput and flexibility
for its Winnipeg plant in serving both on-farm and commercial
agriculture applications;
-
Westeel opened a new U.S. warehouse in the fourth quarter and early in
2013 announced the opening of a new sales and engineering branch in
Mumbai, India to serve one of the world's largest grain and
oilseed-producing countries. This branch will be operational in the
second quarter of this year.
Financial Position
At December 31, 2012, senior net debt to EBITDA1 improved to 0.3 to 1 from 1.4 to 1 at year-end 2011. At period end, the
Company had net debt of $61.4 down from $73.6 million at September 30,
2012 and $85.4 million at December 31, 2011, on improved working
capital management. At year end 2012, the Company had $79.6 million in
unused availability under its $100 million credit facility secured
February 27, 2012.
Dividend
The Board of Directors has declared a first quarter dividend of $0.15
per share, payable on April 15, 2013 for shareholders of record on
March 29, 2013. This is consistent with the quarterly dividends
declared and paid in 2012.
Outlook
Management believes that the trends driving long term demand for the
Company's products are positive and that the business will benefit from
these trends because of its competitive advantages including strong
customer relationships, extensive distribution networks, well
recognized brands, and efficient operations. These trends include i)
the growing global need for grain storage and management systems to
increase crop yields in support of population growth, ii) improving
construction markets in North America and iii) increasing demand for
energy efficient buildings. The combination of our inherent Company
strengths and exposure to these markets provide good fundamentals to
support long-term growth.
In the short run, the Company's early results in 2013 will not be
indicative of performance for the year due primarily to a temporary but
significant shift in customer buying patterns at Westeel. This change
will substantially reduce the normal run up in sales and profitability
that occurs early in the year, however we expect this to lead to more
even order flow as the year progresses. Westeel's outlook beyond the
opening months of 2013 is positive based on expectations of year over
year domestic and international agricultural product sales growth.
Westeel is positioned to serve European, Middle Eastern and African
("EMEA") markets through its office in Madrid, Spain, and to broaden
its opportunity in the Far East with its soon to be opened office in
Mumbai, India. Westeel continues to focus on catalogue expansion
within the grain market and growth opportunities in liquid storage,
including opportunities made available by the 2012 introduction of
portable, reusable above-ground water storage systems for condensate
and rainwater harvesting, irrigation and hydro fracking.
In 2013, Vicwest BP is projected to generate growing revenues due to
contributions made by All Weather and the recent opening of the
division's third insulated metal panel manufacturing facility. Adding
this new facility to its North American IMP network provides Vicwest BP
with a stronger platform to attract new customers and better serve
existing customers throughout all major segments of the construction
industry; from commercial and industrial to cold storage. Vicwest BP
continues to focus on new product development and margin expansion
within its traditional product offerings and expects to capitalize on
these initiatives in 2013. While Vicwest BP expects ongoing
improvement in U.S. non-residential construction activity to support
its overall growth prospects in 2013, it expects challenging market
conditions to continue in the Canadian building products market.
Fourth Quarter Conference Call and Webcast
Vicwest Inc. will host its fourth quarter 2012 conference call and
webcast on webcast on March 7, 2013 at 11:00 a.m. (ET). To participate
in the teleconference, the numbers are 416-644-3414 or 1-800-814-4859.
Callers are advised to call in 10 minutes in advance. To participate in
the webcast, please visit www.vicwestinc.com.
About Vicwest Inc.
Vicwest Inc. is a leading North American manufacturer and distributor of
engineered storage and handling systems for grain, fertilizer and
liquid storage as well as building construction products for
agricultural, institutional, commercial, industrial and residential
markets. We operate through two strategically aligned divisions:
Vicwest Building Products and Westeel. With approximately 7,000
customers, 1,200 dedicated employees and 34 business partners, the
Company is positioned for growth in domestic and international
markets. Vicwest Inc. is a member of the S&P/TSX SmallCap Index. For
more information, visit www.vicwestinc.com.
Forward-Looking Statements
Certain statements in this news release constitute forward-looking
statements within the meaning of applicable securities laws.
Forward-looking statements include, but are not limited to,
management's beliefs, plans, estimates, and intentions, and similar
statements concerning anticipated future events, results,
circumstances, performance or expectations that are not historical
facts. Forward-looking statements generally can be identified by the
use of forward-looking terminology such as "outlook", "objective",
"may", "will", "expect", "intend", "estimate", "anticipate", "believe",
"should", "plans" or "continue", or similar expressions suggesting
future outcomes or events. Such forward-looking statements reflect
management's current beliefs and are based on information currently
available to management. Forward-looking statements involve risks and
uncertainties that could cause actual results to differ materially from
those contemplated by such statements. Readers are encouraged to
review the most recently filed Management's Discussion and Analysis and
other disclosure documents filed by the Company with Canadian
securities regulatory agencies and commissions. Readers are cautioned
not to place undue reliance on the Company's forward-looking
statements. The forward-looking statements contained herein are made
as of the date of this press release and except as required by
applicable law, the Company undertakes no obligation to publicly update
or revise any forward-looking statement, whether as a result of new
information, future events or otherwise.
SOURCE: Vicwest Inc.