ADF GROUP INC. HIGHLIGHTS
(All amounts are in Canadian dollars unless otherwise noted.)
- Revenue of
$242.6 million recorded during the 9-month period endedOctober 31, 2023 , up 21.7% compared with the same period a year earlier. - Net income of
$11.2 million and$27.1 million recorded for the 3-month and 9-month periods endedOctober 31, 2023 , respectively, up by$8.3 million and$14.5 million , respectively from the same periods a year ago. - Cash flow from operating activities of
$45.7 million for the 9-month period endedOctober 31, 2023 . - Order backlog (1) at
$339.3 million as atOctober 31, 2023 . - Ratification of a 5-year collective bargaining agreement by the unionized employees at ADF's
Terrebonne plant, onDecember 3, 2023 .
Gross margin, as a percentage of revenues (1) went from 15.0% for the 3-month period ended
These variances are mainly explained by the operational efficiency generated by the commissioning of the new robotic production line and the new programmable and automated equipment at ADF's plant in
Adjusted earnings before interest, taxes, depreciation, and amortization (adjusted EBITDA) (2) for the 9-month period ended
For the quarter ended
The Corporation's order backlog (1) stood at
As at
______________ | |
(1) | Gross margin, as a percentage of revenues, working capital, as well as the order backlog are additional financial measures. Refer to the "Non-GAAP Financial Measures and Other Financial Measures" section of this press release for the definition of these indicators. |
(2) | Adjusted EBITDA is a non-GAAP financial measure. Refer to the "Non-GAAP Financial Measures and Other Financial Measures" section of this press release for the definition of this indicator. |
Financial Highlights
3 Months | 9 Months | |||
Periods ended | 2023 | 2022 | 2023 | 2022 |
(In thousands of dollars, and dollars per share) | $ | $ | $ | $ |
Revenues | 82,143 | 64,999 | 242,629 | 199,389 |
Adjusted EBITDA (1) | 17,769 | 7,543 | 40,444 | 20,246 |
Income before income tax expense | 13,277 | 3,300 | 32,151 | 12,936 |
Net income for the period | 11,198 | 2,910 | 27,111 | 12,592 |
— Per share (basic and diluted) | 0.34 | 0.09 | 0.83 | 0.39 |
(In thousands) | Number | Number | Number | Number |
Average number of outstanding shares (basic and diluted) | 32,640 | 32,640 | 32,640 | 32,640 |
(1) | Adjusted EBITDA is a non-GAAP financial measure. Refer to the "Non-GAAP Financial Measures and Other Financial Measures" section of this press release for the definition of this indicator. |
Outlook
"The good performance of the last few quarters continued in the quarter ended
Dividend
On
Ratification of the Collective Bargaining Agreement for Unionized Employees at ADF's Plant in
On
Conference Call with Investors
An investor conference call will be held this morning,
To join the conference call without operator assistance, you can register with your phone number on https://emportal.ink/40oMbin to receive an instant automated call back.
You can also join the conference call with operator assistance by dialing 1 (888) 390-0620 a few minutes prior to the conference call scheduled start time.
A replay of the conference call will be available from 1:00 p.m,
The conference call (audio) will also be available at www.adfgroup.com. Members of the media are invited to join in listening mode.
About
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-GAAP Financial Measures and Other Financial Measures | Are measures derived primarily from the consolidated financial statements but are not a standardized financial measure under the financial reporting framework used to prepare the Corporation's financial statements. Therefore, readers should be careful not to confuse or substitute them with performance measures prepared in accordance with GAAP. In addition, readers should avoid comparing these non-GAAP financial measures to similarly titled measures provided or used by other issuers. The definition of these indicators and their reconciliation with comparable International Financial Reporting Standards measure is as follows:
Adjusted EBITDA
Adjusted EBITDA shows the extent to which the Corporation generates profits from operations, without considering the following items:
- Net financial expenses;
- Income tax expense;
- Foreign exchange losses, and
- Depreciation and amortization of property, plant and equipment, intangible assets, and right-of-use assets.
Net income is reconciled with adjusted EBITDA in the table below:
3 Months | 9 Months | |||
Periods Ended | 2023 | 2022 | 2023 | 2022 |
(In thousands of dollars) | $ | $ | $ | $ |
Net income | 11,198 | 2,910 | 27,111 | 12,592 |
Income tax expense | 2,079 | 390 | 5,040 | 344 |
Net financial expenses | 354 | 377 | 1,821 | 1,014 |
Amortization | 1,460 | 1,408 | 4,338 | 3,826 |
Foreign exchange loss | 2,678 | 2,458 | 2,134 | 2,470 |
Adjusted EBITDA | 17,769 | 7,543 | 40,444 | 20,246 |
Gross Margin as a Percentage of Revenues
Gross margin as a percentage of revenue indicator is used by the Corporation to assess the level of profitability for a given period based on the project mix for that same period. This indicator is subject to fluctuations in project prices and also in the operational efficiency of the Corporation. The indicator of gross margin as a percentage of revenues results from dividing gross margin by revenues.
Order Backlog
The order backlog is a measure used by the Corporation to assess future revenue levels. The order backlog includes firm orders obtained by the Corporation, either through a firm contract or a formal notice to proceed confirmed by the client. The order backlog disclosed by the Corporation therefore includes the portion of confirmed contracts that have not been put into production.
Working Capital
The working capital indicator is used by the Corporation to assess whether current assets are sufficient to meet current liabilities. Working capital is equal to current assets, less current liabilities.
SOURCE
© Canada Newswire, source
