Q3 Financial and Operational Highlights
- Sales of
$157.3 million , up 8.8% from$ 144.5 million last year - Operating income of
$13.5 million , up 13.1% from$11.9 million last year - Adjusted EBITDA1 of
$24.6 million , up 7.3% from$22.9 million last year - Corporation announces increase to Fiscal 2020 sales guidance to
$600-610 million range - Funded backlog2 increased to a record-level of
$839 million , up 9.1% from$769 million in Q2 - Successful completion by Boeing, subsequent to quarter-end, of the first flight for the new Boeing 777X commercial aircraft for which Héroux-Devtek provides complete landing gear systems
"I am pleased with our Q3 results and by the continued growth of our commercial and defence sales, especially on the heels of what had been a particularly strong third quarter last year. Accordingly, we have reviewed our sales guidance for Fiscal 2020 upwards, which we now expect to reach
"We are committed to continue to deliver on all our programs, especially as several of them will be reaching important development milestones over the course of the next twelve months, including the very promising Boeing 777X program that successfully completed its first flight on
FINANCIAL HIGHLIGHTS | Three months ended | Nine months ended | ||
(in thousands, except per share data) | 2019 | 2018 | 2019 | 2018 |
Sales | $ 157,253 | $ 144,528 | $ 446,196 | $ 325,963 |
Operating income | 13,466 | 11,904 | 34,356 | 22,050 |
Adjusted operating income1 | 13,466 | 13,973 | 34,971 | 25,355 |
Adjusted EBITDA1 | 24,563 | 22,883 | 67,582 | 48,303 |
Net income | 8,705 | 7,390 | 21,455 | 14,236 |
Adjusted net income1 | 8,705 | 9,367 | 21,971 | 17,558 |
Cash flows related to operating activities | 9,664 | 12,651 | 25,863 | 32,788 |
Free cash flow1 | 7,939 | 11,901 | 13,599 | 26,241 |
in dollars per share | ||||
EPS – basic and diluted | $ 0.24 | $ 0.20 | $ 0.60 | $ 0.39 |
Adjusted EPS1 | 0.24 | 0.26 | 0.61 | 0.48 |
As at |
| 2019 | ||
Funded backlog2 | $ 839,000 | $ 769,000 |
1 This is a non-IFRS measure. Please refer to the "Non-IFRS Measures" section at the end of this press release. |
2 Represents firm orders |
THIRD QUARTER RESULTS
Consolidated sales grew 8.8% to
Strong performances by Beaver and CESA, offset by the temporarily dilutive effect of the margin of more recently acquired businesses, led to relatively stable gross profit as a percentage of sales for the third quarter as compared to the corresponding period last year.
Operating income increased to
EPS grew from
The Corporation's funded backlog increased to $839 million as at
NINE-MONTH RESULTS
Consolidated sales grew 36.9% to
Gross profit as a percentage of sales for the first nine months of the year was also negatively impacted by higher manufacturing costs at our
In the first nine months of the year, operating income increased to
For the same period, EPS grew from
GUIDANCE UPDATE
Management increased its Fiscal 2020 sales guidance to reflect stronger than expected growth. Management expects sales to reach between $600 million and $610 million in Fiscal 2020.
Please see "Forward-Looking Statements" below and the Guidance section in the Corporation's MD&A for the quarter ended December 31, 2019, for further details regarding the material assumptions underlying the foregoing guidance.
FINANCIAL POSITION
Cash flows related to operating activities reached
As at
Over the course of the third quarter, the Corporation reached an agreement with its syndicate of banks to extend the term of its Revolving Facility from
CONFERENCE CALL
Héroux-
If you are unable to call in at this time, you may access a recording of the meeting by calling 1-855-859-2056 and entering the passcode 8169806 on your phone. This recording will be available from
FORWARD-LOOKING STATEMENTS
Except for historical information provided herein, this press release contains information and statements of a forward-looking nature concerning the future performance of the Corporation.
Forward-looking statements are based on assumptions and uncertainties as well as on management's best possible evaluation of future events. Such factors may include, without excluding other considerations, fluctuations in quarterly results, evolution in customer demand for the Corporation's products and services, the impact of price pressures exerted by competitors, and general market trends or economic changes.
As a result, readers are advised that actual results may differ from expected results. Please see the Guidance section in the Corporation's MD&A for the third quarter ended
NON-IFRS MEASURES
Earnings before interest, taxes, depreciation and amortization ("EBITDA"), adjusted EBITDA, adjusted net income, adjusted earnings per share and free cash flow are financial measures not prescribed by International Financial Reporting Standards ("IFRS") and are not likely to be comparable to similar measures presented by other issuers. Management considers these to be useful information to assist investors in evaluating the Corporation's profitability, liquidity and ability to generate funds to finance its operations. Refer to Non-IFRS financial measures under Operating Results in the Corporation's MD&A for definitions of these measures and reconciliations to the most comparable IFRS measures.
ABOUT HÉROUX-DEVTEK
Héroux-
1 This is a non-IFRS measure. Please refer to the "Non-IFRS Measures" section at the end of this press release. | |
2 Represents firm orders | |
3 Pro forma net debt as at |
SOURCE Héroux-
© Canada Newswire, source