ADF GROUP INC. ANNOUNCES THE RESULTS FOR THE FIRST QUARTER ENDED APRIL 30, 2024
HIGHLIGHTS OF THE QUARTER
- Revenues up 33.8% to
$107.4 million compared to the same period last year. - Gross margins as a percentage of revenues (1) at 29.2% compared to 16.8% a year before.
- Net income of
$15.3 million , up$9.9 million or 184.2%. - Order backlog (1) at
$427.5 million as atApril 30, 2024 , excluding new contracts announced onMay 28, 2024 . - Announcing cash utilization strategy, including the intention to repurchase up to 3,000,000 shares and the increase of the semi-annual dividend from
$0.01 per share to$0.02 per share.
(All amounts are in Canadian dollars unless otherwise noted.)
Gross margin, as a percentage of revenue (1), went from 16.8% for the 3-month period ended
Adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA) (2) at
For the first quarter ended
As at
As at
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1. |
The order backlog, gross margin as a percentage of revenues and working capital are additional financial measures. Refer to the "Non-GAAP and Other Financial Measures" section herein 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
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Three-Month Periods Ended |
2024 |
2023 |
(In thousands of Canadian dollars and in dollars per share) |
$ |
$ |
Revenues |
107,400 |
80,271 |
Adjusted EBITDA (2) |
23,099 |
10,031 |
Income before income tax expense |
21,258 |
7,925 |
Net income for the period |
15,265 |
5,371 |
— Basic and diluted per share |
0.47 |
0.16 |
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|
|
(In thousands) |
Number |
Number |
Weighted average number of outstanding shares (basic and diluted) |
32,640 |
32,640 |
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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. |
Cash Utilization Strategy of the Corporation
As at
The Corporation believes that the available cash will significantly exceed the amounts required to support the growth and execution of its order backlog on hand as at
Given the Corporation's favorable financial position, the size of its order backlog and its cash flow generation profile, the Board of Directors is evaluating the options available to the Corporation with respect to the use of excess cash to create value for shareholders, including dividends and share repurchases, and opportunities to finance certain projects that could provide additional long-term competitive advantages and allow the Corporation to benefit from prompt payment discounts negotiated with its suppliers.
With this in mind, the Corporation intends to enter into private agreements, within 30 days of
Furthermore, the Corporation's Board of Directors approved the amendment to its Dividend Policy to increase its semi-annual dividend from
New Contracts
On
Outlook
"We started the 2025 fiscal year strong. With revenues for the 3-month period ended
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/3xHjN0U 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.
ANNUAL GENERAL MEETING OF SHAREHOLDERS FOR THE FISCAL YEAR ENDED
Date: |
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Time: |
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Location: |
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2440, Autoroute des Laurentides, |
About
Forward-Looking Statements | This press release contains forward-looking statements that reflect ADF's objectives and expectations. These statements are identified by words such as "expects" as well as by the use of future and conditional verb tenses and include, but are not limited to, the Corporation's intention to repurchase up to 3,000,000 Subordinate Voting Shares of the Corporation. By their nature, these statements involve risks and uncertainties. In particular, there can be no assurance that an agreement will be reached between the parties with respect to the proposed repurchase. Consequently, actual facts 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 measures issued by the
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 gains, and
- Depreciation and amortization of property, plant and equipment, intangible assets, and right-of-use assets.
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|
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Three (3) Month Periods Ended |
2024 |
2023 |
(In thousands of dollars) |
$ |
$ |
Net income |
15,265 |
5,371 |
Income tax expense |
5,993 |
2,554 |
Net financial expenses |
398 |
839 |
Amortization |
1,489 |
1,444 |
Foreign exchange gain |
(46) |
(177) |
Adjusted EBITDA |
23,099 |
10,031 |
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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. It is therefore equal to current assets, less current liabilities.
All amounts are in Canadian dollars unless otherwise specified.
SOURCE