HIGHLIGHTS
— At $50.4
million, 10% increase in revenues compared to the same
period last year.
— Net income of $4.4 million, up from the same quarter last
year.
— Order backlog at $394.9 million as of April
30, 2021.
TERREBONNE,QC, June 9, 2021 /CNW
Telbec/ - ADF GROUP INC. ("ADF" or the "Corporation")
(TSX: DRX) recorded revenues of $50.4 million during the first
quarter ended April 30, 2021, compared with $45.8 million for the same period a year
ago.
Gross margin, as a percentage of revenues, increased from 10.6%
in the three-month period ended April 30,
2020, to 15.4% for the same period ended April 30, 2021. Gross margin for the quarter
ended April 30, 2021, benefited from
a $1.6 million subsidy from
Canada Emergency Wage Subsidy
Program ("CEWS").
Considering the improved gross margin and lower selling and
administrative expenses, earnings before interest, tax,
depreciation and amortization (EBITDA), at $6.1 million, is $3.1
million higher than April 30,
2020.
For the first quarter ended April 30,
2021, ADF recorded a net income of $4.4 million ($0.13
basic and diluted per share) compared with a net income of
$68,000 ($0.00 basic and diluted per share) for the same
period a year ago.
The Corporation's order backlog reached $394.9 million at April
30, 2021, compared with $436.2
million at January 31, 2021.
The contracts included in the order backlog will be progressively
completed by the end of the fiscal year ending January 31, 2023.
As at April 30, 2021, the
Corporation had a working capital of $39.1
million. Operating activities during the quarter ended
April 30, 2021, generated close to $11.8 million in liquidities. As a result, the
Corporation remains in a sound position to support its ongoing
operations and carry out its development projects.
Financial Highlights
|
|
|
Three-Month Periods
Ended April 30,
|
2021
|
2020
|
(in thousands of
Canadian dollars and in dollar per share)
|
$
|
$
|
Revenues
|
50,387
|
45,797
|
Earnings before
interest, tax, depreciation and amortization (EBITDA)
|
6,112
|
2,967
|
Net income before
income tax expense (recovery)
|
4,496
|
(560)
|
Net income for the
period
|
4,395
|
68
|
— Per share (basic and
diluted)
|
0.13
|
0.00
|
(In thousands)
|
Number
|
Number
|
Average number of
outstanding shares (basic and diluted)
|
32,635
|
32,635
|
|
|
|
Outlook
"The number of bids that have now reached the negotiation phase
continues to be very interesting, and allows us to see the
continued growth of our order backlog. While the growth of the
backlog will continue to keep liquidities under a certain pressure,
attributable to the fabrication start of recently signed major
projects, we are nevertheless in a sound financial position to
absorb this pressure, continue to grow revenues, and generate
liquidities, in an orderly manner" said Mr. Jean Paschini, Co-Chair of the Board of
Directors and Chief Executive Officer.
Mr. Paschini concluded by adding, "We cannot ignore the
mobilization of our staff across Canada and the
United States, particularly since the outbreak of COVID-19,
which has made their work that much more difficult. For this
reason, we would like to acknowledge the great work they are doing,
and would like to thank them for their daily efforts."
COVID-19
The Corporation has taken all necessary steps to protect its
employees and business partners, and will continue to follow the
advice and recommendations of local authorities wherever the
Corporation conducts business. These measures have resulted in
operational costs and inefficiencies that have been offset by the
government incentives previously mentioned. This situation is
changing rapidly and the Corporation will continue to monitor and
mitigate development affecting its personnel, suppliers, customers
and the general public to the extent it can.
Conference Call with Investors
A conference call with investors is scheduled for this morning,
June 9, 2021 at 10 a.m. (Montreal time) to discuss the results of
Corporation first quarter results ended April 30, 2021.
To take part in the conference call, dial 1 (888) 390-0620, a
few minutes prior to the conference call scheduled start time.
A replay of this conference call will be available from
1:00 pm today, until 11:59 p.m., Wednesday,
June 16, 2021, by dialing 1 (888) 390-0541,
followed by the access code 833770#.
The conference call (audio) will also be available at
www.adfgroup.com. Members of the media are invited to listen
in.
Annual General Meeting of Shareholders
ADF Group Inc.'s annual shareholder meeting will take place
today, June 9, 2021, at 11:00
a.m. (Montreal time) via
webcast at:
https://produceredition.webcasts.com/starthere.jsp?ei=1445212&tp_key=02ca3c6676
Important Notice
In light of the ongoing public health concerns related
to the COVID-19 outbreak and in order to comply with the measures
imposed by the federal and provincial governments, the Corporation
is encouraging shareholders and others not to attend the meeting in
person.
Shareholders are urged to vote on the matters before the
meeting by proxy and to view the meeting online by way of a live
webcast that will be available at the link above-mentioned.
Shareholders will be able to submit questions to management of the
Corporation through the webcast at the conclusion of the
meeting.
The Corporation may take additional precautionary measures in
relation to the meeting in response to further developments in the
COVID-19 outbreak.
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's 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 the section "Non-GAAP Measures" of the
Corporation's Management's Discussion and Analysis for the
definition of this metric and reconciliation to the most comparable
IFRS measures.
All amounts are in Canadian dollars, unless otherwise
indicated.
SOURCE ADF Group Inc.