DRUMMONDVILLE, QUEBEC--(Marketwired - Aug. 11, 2016) - NAPEC Inc. ("NAPEC" or "the Corporation") (TSX:NPC) reported its results today for the second quarter ended June 30, 2016. All amounts are in Canadian dollars unless otherwise indicated.
| Financial highlights |
Three months ended June 30, |
Six months ended June 30, |
|
| (in thousands of dollars, except the number of shares and per-share data) |
2016 |
|
2015 |
2016 |
|
2015 |
|
| Revenues |
77,779 |
|
82,077 |
170,412 |
|
140,900 |
|
| EBITDA |
4,835 |
|
5,111 |
11,400 |
|
6,820 |
|
| Net earnings (loss) |
(897 |
) |
829 |
(1,273 |
) |
(302 |
) |
| |
Per share - basic and diluted ($) |
(0.01 |
) |
0.01 |
(0.02 |
) |
0.00 |
|
| Weighted average number of outstanding shares (basic, in thousands) |
79,866 |
|
74,311 |
79,866 |
|
72,922 |
|
| |
|
|
|
|
|
|
|
| |
|
|
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"The second quarter results reflect a temporary decline in activity in some markets. In addition, our Ontario operations recorded an operating loss, but we are continuing to make the corrective actions required to improve profitability in the shortest time frame possible. NAPEC, however, remains very active in terms of bidding, as demonstrated by the recent announcement of new contract awards", said Pierre L. Gauthier, President and Chief Executive Officer of NAPEC.
SECOND-QUARTER RESULTS
Revenues for the second quarter of 2016 were $77.8 million, compared to $82.1 million a year ago. This variation was mainly driven by a decline in revenues from mechanical projects, as well as a reduction in revenues from contracts for the construction, maintenance and repair of transmission and distribution lines. However, the Corporation posted higher revenues from road matting services following the acquisition of Bemis, LLC ("Bemis") in October 2015. Fluctuations in the exchange value of the Canadian dollar increased the value of U.S.-dollar-denominated revenues by approximately $2.6 million during the second quarter of 2016, compared to the same period in 2015.
The lower business volume and the operating loss in Ontario resulted in a decline in the Corporation's earnings before interest, taxes, depreciation and amortization ("EBITDA"). EBITDA for the second quarter of 2016 was $4.8 million, or 6.2% of revenues, compared to $5.1 million, or 6.2% of revenues for the corresponding period a year earlier.
The Corporation ended the second quarter of 2016 with a net loss of $897,000, or $0.01 per share, basic and diluted, compared to net earnings of $829,000, or $0.01 per share, basic and diluted, a year earlier. The net loss reflects increases in depreciation arising from important capital investments made to support growth, and in the amortization of intangible assets related to the acquisition of Bemis.
SIX-MONTH RESULTS
Revenues for the six months ended June 30, 2016 were $170.4 million, up from $140.9 million for the six months ended June 30, 2015. EDITDA was $11.4 million, or 6.7% of revenues, up from $6.8 million, or 4.8% of revenues, a year earlier. The net loss amounted to $1.3 million or $0.02 per basic and diluted share, compared to a net loss of $302,000, or $0.00 per basic and diluted share, a year earlier.
FINANCIAL POSITION
As at June 30, 2016, the long-term debt including the current portion was $59.5 million, versus $60.3 million three months earlier. The ratio of long-term debt to equity was 0.60, unchanged from the end of the previous quarter. At June 30, 2016, the Corporation had a cash balance of $3.6 million, while an amount of $16.6 million was available on its $40.0 million authorized renewable credit facility.
STRONG BACKLOG
As at June 30, 2016, NAPEC's backlog stood at $417.0 million. This amount excludes approximately $29.0 million of the total $67.1 million in contracts announced in a press release dated August 4, 2016.
OUTLOOK
"In the short term, the recent contract awards will have a significant impact on our results for the second half of this year. In the longer term, NAPEC will continue to rigorously implement its strategic plan to capture business opportunities and stimulate cross-selling across our network. We will also remain on the lookout for acquisitions that would enhance our geographical coverage and expertise", concluded Mr. Gauthier.
NON-IFRS MEASURE
EBITDA does not have a standardized meaning prescribed by IFRS and is therefore considered to be a non-IFRS measure. It is therefore not necessarily comparable to similar measures presented by other companies. This measure is presented and described in this release in order to provide additional information regarding the Corporation's liquidity and its ability to generate funds to finance its operations.
FORWARD-LOOKING STATEMENTS
This document contains forward-looking statements that reflect management's current expectations regarding future events. Forward-looking statements are based on a number of factors and include risks and uncertainties. Actual results may differ from forecast results. Management assumes no obligation beyond what is required under the law to update or revise forward-looking statements pursuant to new information or future events.
OVERVIEW OF THE CORPORATION
NAPEC is a company operating in the energy sector. The Corporation is a leading provider of construction and maintenance services to the public utility and heavy industrial markets, mainly in Quebec, Ontario, and the eastern United States. NAPEC and its subsidiaries build and maintain electrical transmission and distribution systems and natural gas networks. The Corporation also installs gas-powered and electric-powered heavy equipment for utilities, gas-fired industrial power plants and petrochemical facilities in North America. The Corporation also offers environmental construction and road matting services.
Additional information on NAPEC can be found in the SEDAR database (www.sedar.com) and on the Corporation's website, at www.napec.ca.
