DRUMMONDVILLE, QUEBEC--(Marketwired - Nov. 14, 2016) - NAPEC Inc. ("NAPEC" or "the Corporation") (TSX:NPC) reported its results today for the third quarter ended September 30, 2016. All amounts are in Canadian dollars unless otherwise indicated.
| Financial highlights |
Three months ended Sept. 30, |
Nine months ended Sept. 30, |
| (in thousands of dollars, except the number of shares and per-share data) |
2016 |
|
2015 |
2016 |
|
2015 |
| Revenues |
85,483 |
|
87,192 |
255,895 |
|
228,092 |
| EBITDA |
6,248 |
|
6,458 |
17,648 |
|
13,278 |
| Net earnings (loss) |
(9 |
) |
1,340 |
(1,282 |
) |
1,038 |
| |
Per share - basic and diluted ($) |
0.00 |
|
0.02 |
(0.02 |
) |
0.01 |
| Weighted average number of outstanding shares (basic, in thousands) |
79,866 |
|
79,866 |
79,866 |
|
75,237 |
| |
|
|
|
|
|
|
"NAPEC posted strong revenue growth in the United States during the third quarter. This performance on U.S. soil reflects the execution of the large amount of contracts awarded since the beginning of this year stemming from our increased presence in core business areas. More importantly, our operating profitability improved significantly compared to the second quarter and now falls within our target range of an EBITDA margin between 7% and 8%", said Pierre L. Gauthier, President and Chief Executive Officer of NAPEC.
THIRD-QUARTER RESULTS
Revenues for the third quarter of 2016 amounted to $85.5 million, compared to $87.2 million a year earlier. This variation primarily reflects lower revenues from contracts for the construction, maintenance and repair of electricity transmission lines, as well as a decline in revenues from mechanical activities. Conversely, revenues from contracts for the construction, maintenance and repair of electricity distribution lines and substations recorded an increase, while revenues from road matting services also increased following the acquisition of Bemis, LLC ("Bemis") in October 2015.
In the third quarter of 2016, earnings before interest, taxes, depreciation and amortization ("EBITDA") totalled $6.2 million, or 7.3% of revenues, compared to $6.5 million, or 7.4% of revenues, for the same period last year. The EBITDA margin improved in the third quarter from 6.2% in the second quarter of 2016.
The Corporation ended the third quarter of 2016 with a net loss of $9,000, or $0.00 per share, basic and diluted, compared to net earnings of $1.3 million, or $0.02 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.
As at September 30, 2016, NAPEC's backlog stood at $386 million, up from $321 million as at September 30, 2015.
NINE-MONTH RESULTS
For the nine-month period ended September 30, 2016, revenues were $255.9 million, up from $228.1 million for the same period in 2015. EDITDA amounted to $17.6 million, or 6.9% of revenues, up from $13.3 million, or 5.8% of revenues, a year earlier. The Corporation posted a net loss of $1.3 million, or $0.02 per share, basic and diluted, compared to net earnings of $1.0 million, or $0.01 per share, basic and diluted, a year earlier.
FINANCIAL POSITION
As at September 30, 2016, long-term debt including the current portion totalled $62.5 million, compared to $59.5 million three months earlier. The ratio of long-term debt to equity was 0.62, up slightly from 0.60 at the end of the previous quarter. As at September 30, 2016, the Corporation had $2.0 million in cash and $16.2 million available on its $40.0 million authorized renewable credit facility.
OUTLOOK
"We are aiming to soon close the acquisition of PCT Contracting LLC. This acquisition falls perfectly in line with our strategic plan and will broaden our geographic coverage in the U.S. Northeast and with major clients that will benefit from the existing expertise and management capacity of our subsidiary Riggs Distler & Company, Inc. in the fast-growing gas sector. These key attributes will enable us to generate synergies and foster cross-selling opportunities throughout our network. In the longer term, NAPEC continues to rigorously implement its strategic plan in order to pursue business opportunities that will increase its reach in its target markets", 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, solar panel farms, 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.
