SAINT-ÉPHREM-DE-BEAUCE, QC, March 25, 2014 /CNW Telbec/ - Sigma Industries
Inc. (TSXV: SSG), a manufacturing company specializing in the
production of composite components, announces results for the third
quarter of its 2014 fiscal year ended January 25, 2014. 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.
THIRD QUARTER RESULTS
Revenues from continuing operations for the third quarter of fiscal
2014 totalled $12.2 million, up
9.9% from $11.1 million in the
third quarter of fiscal 2013. This increase is mainly attributable
to a rise of $534,720 in revenues
from the heavy-duty truck market as a result of higher
year-over-year industry shipments, and to an increase of
$399,428 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 ($430,338) in the third quarter of fiscal 2014,
versus ($175,962) in the third
quarter of last year. This decrease reflects the impact on
profitability of a sudden decline in customer orders beginning in
December 2013 due to the Company's
fixed cost base and higher labour costs at its U.S.-based
facility.
The Company concluded the third of fiscal 2014
with a net loss from continuing operations of ($1.2) million, or ($0.11) per basic and diluted share, compared
with ($898,641), or ($0.08) per basic and diluted share last year.
The net loss, which includes discontinued operations until the sale
of PNS, amounted to ($1.2) million,
or ($0.11) per basic and diluted
share, versus ($729,045), or
($0.06) per basic and diluted share
last year.
NINE MONTHS RESULTS
For the nine-month period ended January 25,
2014, revenues from continuing operations stood at
$40.0 million, versus $41.7 million for the corresponding period a year
earlier. Adjusted EBITDA from continuing operations amounted to
$189,487, compared with $1.2 million last year. The net loss from
continuing operations was ($2.1)
million, or ($0.18) per basic
and diluted share, versus ($1.2)
million, or ($0.10) per basic
and diluted share a year ago. Finally, the net loss reached
($1.8) million, or ($0.16) per basic and diluted share, compared
with ($914,889), or ($0.08) per basic and diluted share in the prior
year.
SELECTED FINANCIAL INFORMATION
|
|
|
|
|
|
|
Consolidated results of
operations |
|
Three months ended |
|
Nine months ended |
(unaudited, in
thousands of Canadian dollars except per-share amounts) |
|
January 25,
2014 |
January 26,
2013 |
|
January 25,
2014 |
January 26,
2013 |
|
|
$ |
$ |
|
$ |
$ |
Revenues from continuing
operations |
|
12,248 |
11,146 |
|
40,044 |
41,696 |
Adjusted EBITDA from continuing
operations |
|
(430) |
(176) |
|
189 |
1,234 |
Net income (loss) from continuing
operations |
|
(1,239) |
(899) |
|
(2,074) |
(1,202) |
|
Per share (basic and diluted) |
|
(0.11) |
(0.08) |
|
(0.18) |
(0.10) |
Net income (loss) |
|
(1,239) |
(729) |
|
(1,830) |
(915) |
|
Per
share (basic and diluted) |
|
(0.11) |
(0.06) |
|
(0.16) |
(0.08) |
|
|
|
|
|
|
|
Reconciliation of EBITDA, adjusted EBITDA and
net income |
|
Three
months ended |
|
Nine
months ended |
(unaudited, in thousands of Canadian dollars) |
|
January 25, 2014 |
January 26, 2013 |
|
January 25, 2014 |
January 26, 2013 |
|
|
$ |
$ |
|
$ |
$ |
Net income (loss) |
|
(1,239) |
(729) |
|
(1,830) |
(915) |
MINUS: |
|
|
|
|
|
|
Net income (loss) from discontinued
operations |
|
- |
170 |
|
244 |
287 |
Net income (loss) from continuing
operations |
|
(1,239) |
(899) |
|
(2,074) |
(1,202) |
PLUS (less): |
|
|
|
|
|
|
Income tax expense (recovery) |
|
(1) |
- |
|
(22) |
- |
Depreciation and amortization |
|
308 |
321 |
|
929 |
986 |
Financial expenses |
|
502 |
401 |
|
1,357 |
1,450 |
Adjusted EBITDA from continuing
operations |
|
(430) |
(176) |
|
190 |
1,410 |
PLUS (less): |
|
|
|
|
|
|
Foreign exchange loss (gain) |
|
(357) |
(7) |
|
(450) |
(89) |
Loss (gain) on disposal of property,
plant and equipment |
|
- |
5 |
|
- |
4 |
EBITDA from continuing
operations |
|
(787) |
(178) |
|
(260) |
1,149 |
|
|
|
|
|
|
|
Consolidated balance sheet
data |
|
As at |
|
|
|
(in thousands of Canadian
dollars) |
|
January 25, 2014 |
April 27, 2013 |
|
|
|
|
|
$ |
$ |
|
|
|
Total assets |
|
25,847 |
27,483 |
|
|
|
Total liabilities |
|
24,600 |
24,537 |
|
|
|
Shareholders' equity |
|
1,247 |
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 March 18, 2014, 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.