ADF GROUP INC. ('ADF' or the 'Corporation') (Ticker symbol: TSX/DRX), recorded revenues of $42.5 million during the second quarter ended July 31, 2020, compared with $54.1 million for the same period a year earlier.
After the first six months of the fiscal year, revenues totaled $88.3 million, which is approximately $3.0 million lower than the same period a year earlier. These decreases are mainly explained by the schedules of the various projects during the periods analyzed. Gross margin, as a percentage of revenues, went from 10.6% for the three-month period ended July 31, 2019, to 17.4% for the same period ended July 31, 2020. Gross margin, as a percentage of revenues, went from 12.6%, during the six-month period ended July 31, 2019, to 13.9% for the same period ended July 31, 2020. These increases are mainly explained by the mix of ongoing projects in our facilities during the periods analyzed, and by a better absorption of fixed costs resulting from internal efficiency gains achieved in our fabrication plants. For the quarter ended July 31, 2020, ADF recorded a net income of $2.1 million ($0.06 per share, basic and diluted) compared with a net income of $0.4 million ($0.01 per share, basic and diluted) a year earlier. At the close of the first semester, being July 31, 2020, net income totaled $2.2 million ($ 0.07 per share, basic and diluted) compared to net income of $ 2.0 million (0.06 $ per share, basic and diluted) for the same period one year earlier.
The Corporation's backlog stood at $314.5 million as at July 31, 2020, compared with $328.7 million as at January 31, 2020. The current order backlog will extend until end of the fiscal year ending January 31, 2022. As of July 31, 2020, the Corporation's working capital stood at $35.4 million. Operating activities generated $21.6 million in cash during the first six months ended July 31, 2020. As a result, as at July 31, 2020, the Corporation's net cash position improved by $23.8 million, compared with January 31, 2020. The Corporation remains in a good position to continue its current operations and carry out its development projects.
About ADF
ADF Group Inc. is a North American leader in the design and engineering of connections, fabrication, including industrial coatings, and installation of complex steel structures, heavy steel built-ups, as well as in miscellaneous and architectural metals for the nonresidential 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 and two paint shops, in Canada and 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.
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ADF GROUP INC. 
