TERREBONNE, QC, Sept. 11, 2015 /CNW Telbec/ - ADF GROUP INC. ("ADF" or the "Corporation") (TSX: DRX), closed the second quarter of the 2016 fiscal year with revenues of $19.1 million, down from those for the same quarter of the previous fiscal year. For the six-month period ended July 31, 2015, ADF Group recorded revenues of $47.7 million, compared with $44.8 million the previous year.
The second-quarter gross margin, as a percentage of revenues, stood at 9.9% compared with 10.8% for the corresponding quarter the previous year. The delays in the start of certain projects fabricated at the Terrebonne plant mainly explain this decrease. Although these delays will be recovered in the coming quarters, they nevertheless generated a lack of efficiency during the quarter ended July 31, 2015. For the six-month period ended July 31, 2015, the gross margin in dollar value stood at $5.5 million or 11.4% of revenues, compared with $5.0 million or 11.2% of revenues a year ago.
ADF posted a second-quarter negative net income of $0.5 million ($0.02 per share, basic and diluted), compared with a negative net income of $0.3 million ($0.01 per share, basic and diluted) a year ago. The six-month period ended July 31, 2015, posted negative net income of $0.5 million ($0.01 per share, basic and diluted) compared with net income of $0.1 million ($0.00 per share, basic and diluted) for the same period a year ago.
The Corporation's operating activities used cash flows of $1.8 million in the second quarter and $3.5 million during the six-month period ended July 31, 2015. As at July 31, 2015, the Corporation had a working capital of $17.7 million. 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 July 31, 2015, the Corporation backlog stood at $52.7 million. Most of the contracts on hand on July 31, 2015, will be progressively executed between now and the spring of 2016.
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Financial Highlights
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Three Months
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Six Months
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Periods ended July 31
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2015
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2014
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2015
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2014
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(In thousands of dollars, and dollars per share)
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$
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$
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$
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$
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Revenues
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19,063
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20,435
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47,745
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44,837
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EBITDA
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475
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496
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2,313
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1,902
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Net income
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(537)
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(347)
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(480)
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124
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—
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Per share (basic and diluted)
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(0.02)
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(0.01)
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(0.01)
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0.00
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Cash flows from (used in) operating activities
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(1,835)
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(9,644)
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(3,452)
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(11,204)
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Average number of outstanding shares (basic, in thousands)
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32,614
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32,492
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32,578
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32,492
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Average number of outstanding shares (diluted, in thousands)
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32,614
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32,492
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32,578
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33,282
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Outlook
"Although the Canadian economy is hit by the drop in crude oil and the provincial debt levels are driving down the recovery efforts, the steps we have taken over the last years to diversify our geographic footprint and our service offer allows us to face these challenges with a more efficient approach. As for the U.S. market, it looks promising and the marketing efforts put forward at the beginning of the 2015 fiscal year, mainly in Florida and in California, are starting to yield results." concluded Mr. Jean Paschini, Co-Chairman of the Board and Chief Executive Officer.
Dividend
The Corporation announces today the payment of a second semi-annual dividend of $0.01 per subordinate voting share and multiple voting share, which will be paid on October 15, 2015 to shareholders of record as at September 30, 2015.
About ADF Group Inc.
ADF Group Inc. is a North American leader in the design and engineering of connections, fabrication and installation of complex steel structures, heavy steel built-ups, as well as in miscellaneous and architectural metals for the non residential construction industry. 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, one in Canada and one in the United States.
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.
All amounts are in Canadian dollars, unless otherwise indicated.
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CONFERENCE CALL WITH INVESTORS
To discuss ADF Group's results for the 3-month and 6-month periods ended July 31, 2015,
September 11, 2015 at 10:00 a.m. (Montreal time)
To participate in the conference call, 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
Friday, September 11, 2015 at 1:00 p.m. until midnight Friday September 18, 2015,
by dialing 1-855-859-2056; access code 96670886.
The conference call (audio) will also be available at www.adfgroup.com
Members of the media are invited to listen in.
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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) 965-1911 / 1 (800) 263-7560, Web Site: www.adfgroup.comCopyright CNW Group 2015
