SAINT-ÉPHREM-DE-BEAUCE, QC, Sept. 23,
2014 /CNW Telbec/ - Sigma Industries Inc. (TSX-V: SSG),
a manufacturing company specializing in the production of composite
components, announces results for the first quarter of its 2015
fiscal year ended July 26, 2014. The
results reflect the sale of the PNS Tech division effective
October 1, 2013 and in accordance
with IFRS, this division has been presented as discontinued
operations in the Company's unaudited condensed interim
consolidated financial statements.
"Operating results for the first quarter of fiscal 2015
provided Sigma Industries with initial benefits stemming from our
initiatives to focus on the closed mould manufacturing process,"
said Denis Bertrand, President and
Chief Executive Officer of Sigma Industries. "Sales rose by 11.2%
driven by new manufacturing contracts for industrial products and
bus components. The favourable impact of this greater business
activity on the absorption of fixed costs, as well as better
productivity and efficiency resulting from the transferred
production, led to a significant increase in adjusted EBITDA".
FIRST QUARTER RESULTS
Revenues from continuing
operations for the first quarter of fiscal 2015 totalled
$15.0 million, up 11.2% from
$13.5 million in the first
quarter of fiscal 2014. This increase is mainly attributable to a
rise of $1.1 million in sales of
industrial products reflecting the addition of a new customer in
the United States. In addition,
sales to the bus industry grew $673,923 as a result of a new manufacturing
contract, while sales to the wind energy market rose by
$606,933 resulting from increased
demand from an important customer. Conversely, sales to the
heavy-duty truck market declined $1.0
million reflecting the gradual phase out of a customer's
heavy-duty truck model.
Sigma Industries recorded adjusted earnings before interest,
taxes, depreciation and amortization ("EBITDA") from continuing
operations of $807,653 in the first
quarter of fiscal 2015, versus a negative adjusted EBITDA of
($76,974) in the first quarter of
last year. This increase is attributable to initial benefits
stemming from the specialization in closed mould manufacturing, as
well as the favourable effect of higher business activity on the
absorption of fixed overhead costs. The Company concluded the first
quarter of fiscal 2015 with net income from continuing operations
of $57,518, or $0.00 per basic and diluted share, versus a net
loss from continuing operations of ($816,770), or ($0.07) per basic and diluted share last
year.
Subsequent to the end of the first quarter, on August 20, 2014, the Company renewed its credit
facility and a bank loan with its main lender. The new maturing
date on the credit facility is August 31,
2015. Also, on August 26,
2014, the Company received the final portions of a secured
loan and of secured convertible debentures as part of a private
placement. These sources of funds show the confidence that Sigma
Industries' lenders have in its business plan and provide the
Company with the flexibility to proceed with its execution.
SELECTED FINANCIAL INFORMATION
|
|
Consolidated
results of operations
|
Three months
ended
|
(unaudited, in
thousands of Canadian dollars except per-share amounts)
|
July 26,
2014
|
July 27,
2013
|
|
$
|
$
|
Revenues from
continuing operations
|
15,000
|
13,493
|
Adjusted EBITDA from
continuing operations
|
808
|
(77)
|
Net income (loss)
from continuing operations
|
58
|
(817)
|
|
Per share (basic and
diluted)
|
0.00
|
(0.07)
|
Net income
(loss)
|
58
|
(783)
|
|
Per share (basic and
diluted)
|
0.00
|
(0.07)
|
|
|
Reconciliation of
EBITDA, adjusted EBITDA and net income
(unaudited, in
thousands of Canadian dollars)
|
Three months
ended
|
July 26,
2014
|
July 27,
2013
|
|
$
|
$
|
Net income
(loss)
|
58
|
(783)
|
MINUS:
|
|
|
Net income (loss)
from discontinued operations
|
-
|
34
|
Net income (loss)
from continuing operations
|
58
|
(817)
|
PLUS
(less):
|
|
|
Income tax expense
(recovery)
|
(10)
|
-
|
Depreciation and
amortization
|
312
|
314
|
Financial
expenses
|
448
|
426
|
Adjusted EBITDA
from continuing operations
|
808
|
(77)
|
PLUS
(less):
|
|
|
Foreign exchange loss
(gain)
|
104
|
(2)
|
Loss (gain) on
disposal of property, plant and equipment
|
-
|
-
|
EBITDA from
continuing operations
|
912
|
(79)
|
|
|
Consolidated
balance sheet data
|
As at
|
(in thousands of
Canadian dollars)
|
July 26,
2014
|
April 26,
2014
|
|
$
|
$
|
Total
assets
|
25,684
|
25,344
|
Total
liabilities
|
25,815
|
25,854
|
Shareholders'
equity
|
(131)
|
(510)
|
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 two operating subsidiaries
and employs 325 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 September 23, 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 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.