HIGHLIGHTS
- 29% increase in revenues compared with the previous fiscal year
- Gross margin, as a percentage of revenues, stood at 14.3%, which is a 4.7% increase compared with a year ago
- Return to profitability with the recording of a net income of $1.7 million
- New contract awards worth a total of $100 million during the 2016 fiscal year
- Construction of a new paint shop at ADF's own Terrebonne facilities
TERREBONNE, QC, April 14, 2016 /CNW Telbec/ - ADF GROUP INC. ("ADF" or the "Corporation") (TSX: DRX) recorded revenues of $98.1 million during the fiscal year ended January 31, 2016, up by $22.0 million compared with the previous fiscal year. The change in revenues results from the increase in the production level at all of the Corporation's facilities.
The gross margin as a percentage of revenues went from 9.6% during the fiscal year ended January 31, 2015 to 14.3% during the fiscal year ended January 31, 2016. This increase is mainly explained by a better product mix and a better absorption of the fabrication fixed costs, in line with the volume at both of our fabrication plants, as well as by the favorable foreign exchange rate impact.
ADF Group recorded a net income of $1.7 million ($0.05 basic and diluted per share) during the fiscal year ended January 31, 2016 compared with a negative net income of $1.6 million (-$0.05 basic and diluted per share) a year ago.
On January 31, 2016, the Corporation had $21.0 million in working capital including short-term available liquidities (comprised of cash, cash equivalents and short-term investments) of $2.4 million. On February 22, 2016, a few days after the close of its 2016 fiscal year, the Corporation drew the second tranche of $5.0 million from a bank loan contracted during the third quarter of the fiscal year ended January 31, 2016. The Corporation remains in a solid position to support its ongoing operations, pursue its development projects and remunerate its shareholders in accordance with the dividend payment policy.
As at January 31, 2016, the Corporation order book totalled $70.6 million, compared with $48.0 million as at January 31, 2015. These contracts will be progressively completed by the end of the second quarter of fiscal 2018.
|
Financial Highlights
|
|
|
|
|
|
|
Fiscal Years Ended January 31,
|
2016
|
2015
|
|
(In thousands of CA$, and dollars per share)
|
$
|
$
|
|
|
|
|
Revenues
|
98,089
|
76,058
|
|
EBITDA
|
7,244
|
1,594
|
|
Net income for the year
|
1,699
|
(1,570)
|
|
-
|
Basic per share
|
0.05
|
(0.05)
|
|
-
|
Diluted per share
|
0.05
|
(0.05)
|
|
Average number of outstanding shares (basic, in thousands)
|
32,597
|
32,499
|
|
Average number of outstanding shares (diluted, in thousands)
|
32,807
|
32,499
|
|
|
|
New Orders
On March 30, 2016, the Corporation announced the award of new contracts worth over $43.0 million, in Quebec and in U.S. East Coast. In addition to fabricating various steel structures and unique heavy steel built-ups, and performing the installation work thereof, ADF's contracts also include the supply of the shop drawings, the purchase of the steel required in the scope of these different projects, and in some cases, the application of special industrial coatings. These projects will be primarily carried out at ADF's Terrebonne fabrication plant and they are scheduled to extend until July 2017.
Outlook
"Including our recently commissioned new paint shop in Terrebonne, we now have five centers of excellence in North America, which will enable us to efficiently reach clients across this market" indicated Mr. Jean Paschini, Co-Chairman of the Board of Directors and Chief Executive Officer.
"For fiscal 2017, our goal is to integrate all of our recent investments and making sure we maintain a solid backlog to support all of our activities, and continue improving our operational processes" concluded Mr. Paschini.
Dividend
ADF Group announces the payment of a semi-annual dividend of $0.01 per subordinate voting share and multiple voting share to be paid on May 16, 2016 to shareholders of record as at April 29, 2016.
Annual Meeting of Shareholders
|
ADF Group Inc. Annual Meeting of Shareholders will be held on:
|
|
|
Date:
|
Wednesday, June 15, 2016
|
|
Time:
|
11:00 a.m.
|
|
Place:
|
Hotel Sheraton Laval, 2440 Des Laurentides, Laval, Quebec
|
Financial results for the first quarter ending April 30, 2016, will also be disclosed at the Corporation's shareholder meeting.
About ADF Group Inc.
ADF Group Inc. is a North American leader in the design and engineering of connections, fabrication, including the application of industrial coatings, and installation of complex steel structures, heavy steel built-ups, as well as in miscellaneous and architectural metals for the non residential infrastructure sector. ADF Group Inc. is one of the few players in the industry capable of handling highly technically complex mega projects on fast-track schedules in the commercial, institutional, industrial and public sectors. The Corporation operates two fabrication plants and two paint shops, in Canada and in the United States, and a Construction Division in the United States, which specializes in the installation of steel structures and other related products.
Forward-Looking Information
This press release contains forward-looking statements reflecting ADF objectives and expectations. These statements are identified by the use of verbs such as "expect" as well as by the use of future or conditional tenses. By their very nature these types of statements involve risks and uncertainty. Consequently, reality may differ from ADF's expectations.
Non-IFRS Measures
Earnings before interest, taxes, depreciation and amortization ("EBITDA") is not a performance measure recognized by IFRS standards, and is not likely to be comparable to similar measures presented by other issuers. Management, as well as investors, consider this to be useful information to assist them in assessing the Corporation's profitability and ability to generate funds to finance its operations. Refer to Section 10 "Non-GAAP Measures" of the Corporation's Management's Discussion and Analysis for Fiscal Year Ended January 31, 2016, for the definition of this metric and reconciliation to the most comparable IRFS measures.
All amounts are in Canadian dollars, unless otherwise indicated.
|
CONFERENCE CALL WITH INVESTOR, APRIL 14, 2016 AT 10:00 A.M. (Montreal time)
RESULTS FOR THE FISCAL YEAR ENDED JANUARY 31, 2016
|
|
TO PARTICIPATE, PLEASE DIAL 1-866-865-3087 A FEW MINUTES BEFORE THE START OF THE CALL.
For those unable to participate, a taped rebroadcast will be available from Thursday, April 14, 2016
at 1:00 p.m. until midnight Thursday, April 21, 2016, by dialing 1-855-859-2056; access code 77353950.
The conference call (audio) will also be available on ADF's Website at www.adfgroup.com.
Members of the media are invited to listen in.
|
|
CONSOLIDATED OF FINANCIAL POSITION
|
|
|
|
|
|
|
As at January 31,
|
2016
|
2015
|
|
(In thousands of Canadian dollars)
|
$
|
$
|
|
|
|
|
ASSETS
|
|
|
|
Current assets
|
|
|
|
Cash and cash equivalents
|
2,377
|
7,946
|
|
Short-term investments
|
―
|
789
|
|
Accounts receivable
|
23,146
|
14,143
|
|
Holdbacks on contracts
|
1,693
|
4,309
|
|
Income tax assets
|
―
|
29
|
|
Work in progress
|
7,521
|
6,834
|
|
Inventories
|
6,180
|
5,769
|
|
Prepaid expenses and other current assets
|
1,889
|
1,679
|
|
Total current assets
|
42,806
|
41,498
|
|
|
|
|
Non-current assets
|
|
|
|
Property, plant and equipment
|
91,067
|
83,000
|
|
Intangible assets
|
2,871
|
2,781
|
|
Other non-current assets
|
3,337
|
3,969
|
|
Deferred income tax assets
|
6,390
|
6,567
|
|
Total assets
|
146,471
|
137,815
|
|
|
|
|
LIABILITIES
|
|
|
|
Current liabilities
|
|
|
|
Accounts payable and other current liabilities
|
17,772
|
15,971
|
|
Income tax liability
|
49
|
―
|
|
Deferred revenues
|
2,753
|
4,173
|
|
Derivative financial instruments
|
403
|
1,115
|
|
Current portion of long-term debt
|
868
|
763
|
|
Total current liabilities
|
21,845
|
22,022
|
|
|
|
|
Non-current liabilities
|
|
|
|
Long-term debt
|
14,351
|
9,374
|
|
Deferred income tax liabilities
|
2,742
|
2,461
|
|
Total liabilities
|
38,938
|
33,857
|
|
|
|
|
SHAREHOLDERS' EQUITY
|
|
|
|
Capital stock
|
68,077
|
69,185
|
|
Contributed surplus
|
6,397
|
6,433
|
|
Accumulated other comprehensive income
|
9,507
|
5,835
|
|
Retained income
|
23,552
|
22,505
|
|
Total shareholders' equity
|
107,533
|
103,958
|
|
Total liabilities and shareholders' equity
|
146,471
|
137,815
|
|
|
|
|
CONSOLIDATED STATEMENTS OF INCOME
|
|
|
|
|
|
|
Fiscal Years Ended January 31,
|
2016
|
2015
|
|
(In thousands of Canadian dollars and in dollars per share)
|
$
|
$
|
|
|
|
|
Revenues
|
98,089
|
76,058
|
|
Cost of goods sold
|
84,069
|
68,791
|
|
Gross Margin
|
14,020
|
7,267
|
|
Selling and administrative expenses
|
11,391
|
9,854
|
|
Financial revenues
|
(79)
|
(151)
|
|
Financial expenses
|
574
|
399
|
|
Other gains
|
(653)
|
(58)
|
|
11,233
|
10,044
|
|
Income before income tax expense (recovery)
|
2,787
|
(2,777)
|
|
Income tax expense (recovery)
|
1,088
|
(1,207)
|
|
Net income for the year
|
1,699
|
(1,570)
|
|
Earnings per share
|
|
|
|
Basic per share
|
0,05
|
(0,05)
|
|
Diluted per share
|
0,05
|
(0,05)
|
|
Average number of outstanding shares (in thousands)
|
32,597
|
32,499
|
|
Average number of outstanding diluted shares (in thousands)
|
32,807
|
32,499
|
|
|
|
|
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
|
|
|
|
|
|
|
Fiscal Years Ended January 31,
|
2016
|
2015
|
|
(In thousands of Canadian dollars)
|
$
|
$
|
|
Net income for the year
|
1,699
|
(1,570)
|
|
Other comprehensive income (a) :
|
|
|
|
Exchange differences on translation of foreign operations
|
3,672
|
4,273
|
|
Comprehensive income for the year
|
5,371
|
2,703
|
|
|
|
|
(a) Will subsequently be reclassified to net income.
|
|
|
|
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
|
|
Capital Stock
|
Contributed
Surplus
|
Accumulated Other
Comprehensive
Income
|
Retained Income
|
Total
|
|
(In thousands of Canadian dollars)
|
$
|
$
|
$
|
$
|
$
|
|
|
|
|
|
|
|
Balance, February 1, 2014
|
69,139
|
6,407
|
1,562
|
24,725
|
101,833
|
|
Net income for the year
|
―
|
―
|
―
|
(1,570)
|
(1,570)
|
|
Other comprehensive income
|
―
|
―
|
4,273
|
―
|
4,273
|
|
Comprehensive income for the year
|
―
|
―
|
4,273
|
(1,570)
|
2,703
|
|
Share-based compensation
|
―
|
41
|
―
|
―
|
41
|
|
Options exercised
|
46
|
(15)
|
―
|
―
|
31
|
|
Dividends
|
―
|
―
|
―
|
(650)
|
(650)
|
|
Balance, January 31, 2015
|
69,185
|
6,433
|
5,835
|
22,505
|
103,958
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Stock
|
Contributed
Surplus
|
Accumulated Other
Comprehensive
Income
|
Retained Income
|
Total
|
|
(In thousands of Canadian dollars)
|
$
|
$
|
$
|
$
|
$
|
|
|
|
|
|
|
|
Balance, February 1, 2015
|
69,185
|
6,433
|
5,835
|
22,505
|
103,958
|
|
Net income for the year
|
―
|
―
|
―
|
1,699
|
1,699
|
|
Other comprehensive income
|
―
|
―
|
3,672
|
―
|
3,672
|
|
Comprehensive income for the year
|
―
|
―
|
3,672
|
1,699
|
5,371
|
|
Share-based compensation
|
―
|
44
|
―
|
―
|
44
|
|
Redemption of subordinate voting shares
|
(2,282)
|
364
|
―
|
―
|
(1,918)
|
|
Options exercised
|
1,174
|
(444)
|
―
|
―
|
730
|
|
Dividends
|
―
|
―
|
―
|
(652)
|
(652)
|
|
Balance, January 31, 2016
|
68,077
|
6,397
|
9,507
|
23,552
|
107,533
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
Fiscal Years Ended January 31,
|
2016
|
2015
|
|
(In thousands of Canadian dollars)
|
$
|
$
|
|
|
|
|
OPERATING ACTIVITIES
|
|
|
|
Net income for the year
|
1,699
|
(1,570)
|
|
Non-cash items:
|
|
|
|
|
Amortization of property, plant and equipment
|
4,294
|
3,874
|
|
|
Amortization of intangible assets
|
321
|
307
|
|
|
Gain on disposal of property, plant and equipment
|
(618)
|
―
|
|
|
Unrealized loss (gain) on derivative financial instruments
|
(712)
|
1,115
|
|
|
Non-cash exchange gain
|
(709)
|
(119)
|
|
|
Share-based compensation
|
44
|
41
|
|
|
Income tax expense (recovery)
|
1,088
|
(1,207)
|
|
|
Financial revenues
|
(79)
|
(151)
|
|
|
Financial expenses
|
574
|
399
|
|
Net income adjusted for non-cash items
|
5,902
|
2,689
|
|
Changes in non-cash working capital items (1)
|
(7,059)
|
(1,273)
|
|
Income tax expense recovery
|
―
|
4
|
|
Cash flows from (used in) operating activities
|
(1,157)
|
1,420
|
|
|
|
|
INVESTING ACTIVITIES
|
|
|
|
Disposal of short-term investments
|
778
|
―
|
|
Net acquisition of property, plant and equipment
|
(8,591)
|
(13,860)
|
|
Revenues from disposals of property, plant and equipment
|
1,457
|
―
|
|
Acquisition of intangible assets
|
(411)
|
(373)
|
|
Decrease (increase) in other non-current assets
|
641
|
(608)
|
|
Interest received
|
96
|
160
|
|
Cash flows from (used in) investing activities
|
(6,030)
|
(14,681)
|
|
|
|
|
FINANCING ACTIVITIES
|
|
|
|
Issuance of long-term debt
|
5,000
|
5,516
|
|
Financing costs relating to the debt
|
(107)
|
―
|
|
Repayment of long-term debt
|
(772)
|
(1,857)
|
|
Redemption of subordinate voting shares
|
(1,918)
|
―
|
|
Issuance of subordinate voting shares
|
730
|
31
|
|
Dividends paid
|
(652)
|
(650)
|
|
Interest paid on the interest rate swap
|
―
|
(2)
|
|
Interest paid
|
(552)
|
(371)
|
|
Cash flows from (used in) financing activities
|
1,729
|
2,667
|
|
Impact of fluctuations in foreign exchange rate on cash flow
|
(111)
|
(135)
|
|
Net change in cash and cash equivalents during the fiscal year
|
(5,569)
|
(10,729)
|
|
Cash and cash equivalents, beginning of year
|
7,946
|
18,675
|
|
Cash and cash equivalents, end of year
|
2,377
|
7,946
|
|
|
|
|
(1)
|
The following table sets out in detail the components of the "Changes in non-cash working capital items":
|
|
|
|
|
|
|
|
Fiscal Years Ended January 31,
|
2016
|
2015
|
|
(In thousands of Canadian dollars)
|
$
|
$
|
|
|
|
|
Accounts receivable
|
(8,008)
|
(881)
|
|
Holdbacks on contracts
|
2,636
|
(682)
|
|
Work in progress
|
(399)
|
(683)
|
|
Inventories
|
(309)
|
(44)
|
|
Prepaid expenses and other current assets
|
(139)
|
(475)
|
|
Accounts payable and other current liabilities
|
651
|
1,508
|
|
Deferred revenues
|
(1,491)
|
(16)
|
|
Changes in non-cash working capital items
|
(7,059)
|
(1,273)
|
|
|
|
SEGMENTED INFORMATION
The Corporation operates in the non-residential construction industry, primarily in the United States and Canada. Its operations include the design and engineering of connections, fabrication, including industrial coating, and installation of complex steel structures, heavy steel built-ups, as well as miscellaneous and architectural metalwork.
|
|
|
|
|
|
|
Fiscal Years Ended January 31,
|
2016
|
2015
|
|
(In thousands of Canadian dollars)
|
$
|
$
|
|
|
|
|
Revenues
|
|
|
|
Canada
|
22,368
|
59,879
|
|
United States
|
75,721
|
16,179
|
|
98,089
|
76,058
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at January 31,
|
2016
|
2015
|
|
(In thousands of Canadian dollars)
|
$
|
$
|
|
|
|
|
Non-current assets (1)
|
|
|
|
Canada
|
47,480
|
45,218
|
|
United States
|
49,795
|
44,532
|
|
97,275
|
89,750
|
|
|
|
|
|
|
(1)
|
The non-current assets mainly include property, plant and equipment, intangible assets, investment tax credits and others non-current assets.
|
Revenues from external clients were allocated to each country on the basis of the project's location.
During the fiscal year ended January 31, 2016, 70% of the Corporation's revenues were realized with three (3) clients, for respective amounts of $30,489,000 from the United States, $24,480,000 from the United States and Canada, and $13,269,000 from Canada, one (1) of whom was part of the Corporation's revenues concentration during the fiscal year ended January 31, 2015.
During the fiscal year ended January 31, 2015, 47% of the revenues were realized with two (2) clients for amounts of $27,526,000 and $8,313,000 respectively, all generated in Canada, and therefore each client accounted for more than 10% of the Corporation's revenues, one (1) of whom was part of the Corporation's revenues concentration during the fiscal year ended January 31, 2014.
SOURCE ADF Group Inc.
Jean Paschini, Co-Chairman of the Board of Directors and Chief Executive Officer; Jean-François Boursier, CPA, CA, Chief Financial Officer, Telephone: (450) 965-1911Copyright CNW Group 2016