SAINT-ÉPHREM-DE-BEAUCE, QC, Dec. 20, 2013 /CNW Telbec/ - Sigma Industries
Inc. (TSX-V: SSG), a manufacturing company specializing in the
production of composite components, announces results for the
second quarter of its 2014 fiscal year ended October 26, 2013. The results reflect the sale of
the PNS Tech ("PNS") division effective October 1, 2013 and in accordance with IFRS, PNS
has been presented as discontinued operations in the Company's
unaudited consolidated interim financial statements.
SECOND QUARTER RESULTS
Revenues from continuing operations for the second quarter of
fiscal 2014 totalled $14.3 million, up from $13.4 million in the second quarter of
fiscal 2013. This increase of $894,391 is mainly attributable to a rise of
$483,288 in revenues from the
heavy-duty truck market as a result of higher industry shipments,
and to an increase of $390,088 in
sales of industrial products reflecting the addition of a new
customer in the United States.
Sigma Industries recorded adjusted earnings
before interest, taxes, depreciation and amortization from
continuing operations ("EBITDA") of $696,850 in the second quarter of fiscal 2014, up
from $552,862 a year earlier. This
increase reflects higher business activity, better operating
efficiency and a more favourable product mix, partially offset by
higher labour costs.
The Company concluded the second quarter of
fiscal 2014 with a net loss from continuing operations of
($18,134), or ($0.00) per basic and diluted share, versus a net
loss from continuing operations of ($285,418), or ($0.02) per basic and diluted share last year.
Discontinued operations provided net income of $209,781, including a gain on the disposition of
assets of $100,079, in the second
quarter of fiscal 2014, versus net income of $124,664 last year. As a result, net income for
the second quarter of fiscal 2014 stood at $191,647, or $0.02
per basic and diluted share, compared with a net loss of
($160,754), or ($0.01) per basic and diluted share last
year.
"Sigma Industries posted improved
year-over-year financial results in the second quarter. Revenues
from continuing operations grew 6.7% led by a recovery in the
heavy-duty truck market. Moreover, sales to the bus industry rose
by 12.9% as we increasingly benefit from greater business activity
with existing customers, while sales of industrial products nearly
doubled reflecting the addition of a new customer. More
importantly, this greater business volume led to increased
operating profitability," said Denis
Bertrand, President and Chief Executive Officer of Sigma
Industries.
SIX MONTHS RESULTS
For the six-month period ended October 26,
2013, revenues from continuing operations stood at
$27.8 million, versus $30.5 million for the corresponding period a year
earlier. Adjusted EBITDA from continuing operations amounted to
$619,824 compared with $1.4 million last year. The net loss from
continuing operations was ($834,906),
or ($0.07) per basic and diluted
share, versus ($303,190), or
($0.03) per basic and diluted share a
year ago, while the net loss reached ($591,151), or ($0.05) per basic and diluted share, compared
with ($185,844), or ($0.02) per basic and diluted share in the prior
year.
FINANCIAL POSITION
As at October 26, 2013, Sigma
Industries' net debt stood at $17.0
million. Subsequent to the end of the second quarter, the
Company proceeded with a private placement consisting of: (i) a
loan of $800,000 for a term of eight
years, bearing interest at an annual rate of 10%, payable
quarterly, and convertible at any time during the five years
following its disbursement, in whole or in part, into common shares
of Sigma, at a price of $0.05 per
share for an initial amount of $500,000 during the first year of the loan and
$0.10 per share for the balance
during the five years following disbursement; and (ii) five-year
debentures totalling an amount of $275,000, bearing interest at an annual rate of
10%, payable quarterly, and convertible at any time, in whole or in
part, into common shares of Sigma at a price of $0.10 per share.
OUTLOOK
"Going forward, our operating strategy will be focussed on further
developing market opportunities for Sigma's leading-edge composite
products. We believe our base business is solid and our proven
reputation in regards to quality and innovation should allow us to
further increase our presence in our strategic markets, as
evidenced by new business in the bus and the industrial products
markets. Still, as we do not expect the economy to improve
materially, we must continue our relentless drive to improve
profitability and cash flow by further optimizing our cost
structure. We have made interesting efficiency gains in recent
periods and we aim to achieve more to the benefit of our customers,
employees and shareholders," concluded Mr. Bertrand.
SELECTED FINANCIAL INFORMATION
|
|
|
|
Consolidated results of
operations |
Three months ended |
|
Six months ended |
(unaudited, in thousands of Canadian
dollars except per-share amounts) |
October 26, 2013 |
October 27, 2012 |
|
October 26, 2013 |
October 27, 2012 |
|
$ |
$ |
|
$ |
$ |
Revenues from continuing
operations |
14,302 |
13,408 |
|
27,795 |
30,550 |
Adjusted EBITDA from continuing
operations |
697 |
553 |
|
620 |
1,410 |
Net income (loss) from continuing
operations |
(18) |
(285) |
|
(835) |
(303) |
|
Per share (basic and diluted) |
(0.00) |
(0.02) |
|
(0.07) |
(0.03) |
Net income (loss) |
192 |
(161) |
|
(591) |
(186) |
|
Per share (basic and
diluted) |
0.02 |
(0.01) |
|
(0.05) |
(0.02) |
|
|
|
|
Reconciliation of
EBITDA, adjusted EBITDA and net income
(unaudited, in thousands of Canadian dollars) |
Three months ended |
|
Six months ended |
October 26, 2013 |
October 27, 2012 |
|
October 26, 2013 |
October 27, 2012 |
|
$ |
$ |
|
$ |
$ |
Net income (loss) |
192 |
(161) |
|
(591) |
(186) |
MINUS: |
|
|
|
|
|
Net income (loss) from discontinued
operations |
210 |
124 |
|
244 |
117 |
Net income (loss) from continuing
operations |
(18) |
(285) |
|
(835) |
(303) |
PLUS (less): |
|
|
|
|
|
Income tax expense (recovery) |
(21) |
- |
|
(21) |
- |
Depreciation and amortization |
307 |
320 |
|
621 |
665 |
Financial expenses |
409 |
518 |
|
855 |
1,048 |
Adjusted EBITDA from continuing
operations |
697 |
553 |
|
620 |
1,410 |
PLUS (less): |
|
|
|
|
|
Foreign exchange loss (gain) |
(91) |
57 |
|
(93) |
(81) |
Loss (gain) on disposal of property,
plant and equipment |
- |
- |
|
- |
(1) |
EBITDA from continuing
operations |
606 |
610 |
|
527 |
1,328 |
|
|
|
|
Consolidated balance sheet
data |
As at |
|
|
(in thousands of Canadian
dollars) |
October 26, 2013 |
April 27, 2013 |
|
|
|
$ |
$ |
|
|
Total assets |
27,199 |
27,483 |
|
|
Total liabilities |
24,881 |
24,537 |
|
|
Shareholders' equity |
2,318 |
2,946 |
NON-IFRS FINANCIAL MEASURES
The information in this press release includes certain measures
that are not financial measures prescribed under IFRS. Sigma
Industries uses adjusted earnings before interest, taxes,
depreciation and amortization ("Adjusted EBITDA") and earnings
before interest, taxes, depreciation and amortization ("EBITDA") in
assessing its financial performance. As there is no generally
accepted method of calculating these financial measures, they may
not be comparable to similar measures reported by other companies.
Adjusted EBITDA is earnings before interest, income taxes,
depreciation, amortization and other non-operating expenses and
revenues, EBITDA consists of adjusted EBITDA plus (minus) foreign
exchange loss (gain) and loss (gain) on disposal of property, plant
and equipment. These measures do not represent cash flow available
for repayment of debt, payment of dividends, reinvestment or other
discretionary uses, and should not be considered in isolation or as
a substitute for other measures of performance calculated according
to IFRS.
ABOUT SIGMA INDUSTRIES
Sigma Industries Inc. (TSX-V: SSG), a manufacturing company
specializing in the production of composite components, has four
operating subsidiaries and employs 400 people. The Company is
active in the heavy-duty truck, coach, transit, machinery and wind
energy markets. Sigma sells its products to original equipment
manufacturers and distributors in the
United States, Canada and
Europe.
FORWARD-LOOKING STATEMENTS
This press release contains certain forward-looking statements
about the Company. Such forward-looking statements are dependent on
a number of factors and are subject to risks and uncertainties.
Actual results may differ from those expected. The information
contained in this press release is dated December 20, 2013, the date on which management
approved the press release. Management does not assume any
obligation to update or revise any forward-looking statements,
whether as a result of new information or future events, except as
required by law.
Note to readers: Complete unaudited condensed
interim consolidated financial statements and Management's
Discussion & Analysis of Financial Position and Operating
Results have been posted on SEDAR and are available at
www.sedar.com.
Neither the TSX Venture Exchange nor its
regulation services provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
SOURCE SIGMA INDUSTRIES INC.