SAINT-ÉPHREM-DE-BEAUCE, QC, Aug. 25, 2014 /CNW Telbec/ - Sigma Industries
Inc. (TSXV: SSG), a manufacturing company specializing in the
production of composite components, announces results for the
fourth quarter and fiscal year ended April
26, 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 audited consolidated
financial statements.
"During fiscal 2014, Sigma Industries focussed
on consolidating its status as a prominent manufacturer of
leading-edge composite products to its main markets," said
Denis Bertrand, President and Chief
Executive Officer of Sigma Industries. "The disposal of PNS, our
metal products division, paved the way to the decision to
concentrate on manufacturing components using the closed mould
process. The outlook for closed moulded components is favourable
and we can leverage the expertise of our subsidiary René Composites
Materials Ltd. in this domain to step up our presence in strategic
markets. This initiative implied the closure of our U.S. operations
and the transfer of about $8.0
million in production to René's facilities, resulting in the
creation of approximately 50 direct jobs and about 15 indirect
jobs. The transfer was completed early in the first quarter of
fiscal 2015."
FOURTH QUARTER RESULTS
Revenues from continuing operations for the fourth quarter of
fiscal 2014 totalled $14.6 million, up 6.3% from $13.8 million in the fourth quarter of
fiscal 2013. This increase is mainly attributable to a rise of
$1.3 million in sales of industrial
products reflecting the addition of a new customer in the United States. Production of these
components was transferred to Sigma's Quebec-based facilities as part of its
specialization in closed moulding. This factor was partially offset
by a $548,212 decrease in sales to
the heavy-duty truck industry resulting from the beginning of the
gradual phase out of a customer's heavy-duty truck model.
Sigma Industries recorded adjusted earnings
before interest, taxes, depreciation and amortization from
continuing operations ("EBITDA") of $357,511 in the fourth quarter of fiscal 2014,
versus $384,239 in the fourth quarter
of last year. This variation is attributable to a foreign exchange
loss of $44,050 in the fourth quarter
of fiscal 2014, as opposed to a foreign exchange gain of
$47,531 in the fourth quarter of
fiscal 2013. Excluding these elements, EBITDA from continuing
operations rose 19.3% to $401,561 in
the fourth quarter of fiscal 2014, from $336,708 a year earlier, as a result of the
effect of greater business activity on the absorption of fixed
overhead costs.
The Company concluded the fourth quarter of
fiscal 2014 with a net loss from continuing operations of
($1.7) million, or ($0.14) per basic and diluted share, versus
($301,742), or ($0.03) per basic and diluted share last year.
During the fourth quarter of fiscal 2014, the Company recorded a
loss of $1.2 million on the closure
of its U.S. operations. Excluding this loss, the net loss from
continuing operations was ($510,127),
or ($0.04) par basic and diluted
share. Given net losses from discontinued operations of
($65,900) and ($142,575), respectively, in the fourth quarters
of fiscal 2014 and fiscal 2013, the net loss reached ($1.7) million, or ($0.15) per basic and diluted share in the fourth
quarter of fiscal 2014 and ($444,317), or ($0.04) per basic and diluted share in the fourth
quarter of fiscal 2013.
FISCAL 2014 RESULTS
For the fiscal year ended April 26,
2014, revenues from continuing operations amounted to
$54.7 million, versus $55.5 million for the fiscal year ended
April 27, 2013. Adjusted EBITDA from
continuing operations was $546,998,
compared with $1.6 million in the
previous year. The net loss from continuing operations reached
($3.8) million, or ($0.32) per basic and diluted share, versus
($1.5) million, or ($0.13) per basic and diluted share a year ago.
Excluding the loss on the closure of U.S. operations, the net loss
from continuing operations for fiscal 2014 was ($2.6) million, or ($0.22) per basic and diluted share. Finally, the
net loss reached ($3.6) million, or
($0.30) per basic and diluted share,
compared with ($1.4) million, or
($0.12) per basic and diluted share
in the prior year.
SELECTED FINANCIAL INFORMATION
|
|
|
|
|
|
Consolidated results of
operations |
Three months ended |
|
Fiscal years ended |
(unaudited, in thousands of Canadian
dollars except
per-share amounts) |
April 26, 2014 |
April 27, 2013 |
|
April 26, 2014 |
April 27, 2013 |
|
$ |
$ |
|
$ |
$ |
Revenues from continuing
operations |
14,636 |
13,765 |
|
54,680 |
55,461 |
Adjusted EBITDA from continuing
operations |
357 |
383 |
|
547 |
1,618 |
Net income (loss) from continuing
operations |
(1,679) |
(302) |
|
(3,753) |
(1,504) |
|
Per share (basic and diluted) |
(0.14) |
(0.03) |
|
(0.32) |
(0.13) |
Net income (loss) |
(1,745) |
(444) |
|
(3,575) |
(1,359) |
|
Per share (basic and
diluted) |
(0.15) |
(0.04) |
|
(0.30) |
(0.12) |
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of EBITDA, adjusted EBITDA and
net income |
Three
months ended |
|
Fiscal
years ended |
(unaudited, in
thousands of Canadian dollars) |
April 26, 2014 |
April 27, 2013 |
|
April 26, 2014 |
April 27, 2013 |
|
$ |
$ |
|
$ |
$ |
Net income (loss) |
(1,745) |
(444) |
|
(3,575) |
(1,359) |
MINUS: |
|
|
|
|
|
Net income
(loss) from discontinued operations |
|
(142) |
|
244 |
145 |
Net
income (loss) from continuing operations |
(1,745) |
(302) |
|
(3,818) |
(1,504) |
PLUS (less): |
|
|
|
|
|
Income tax expense (recovery) |
(68) |
(12) |
|
(91) |
(12) |
Depreciation and amortization |
317 |
314 |
|
1,246 |
1,301 |
Financial expenses |
619 |
384 |
|
1,976 |
1,833 |
Loss on
closure of US operations |
1,168 |
- |
|
1,168 |
- |
Adjusted
EBITDA from continuing operations |
357 |
384 |
|
547 |
1,618 |
PLUS (less): |
|
|
|
|
|
Foreign exchange loss (gain) |
44 |
(47) |
|
(406) |
(136) |
Loss (gain)
on disposal of property, plant and equipment |
- |
- |
|
- |
4 |
EBITDA
from continuing operations |
401 |
337 |
|
141 |
1,486 |
|
|
|
Consolidated balance sheet data |
As at |
(in thousands of Canadian dollars) |
April 26, 2014 |
April 27, 2013 |
|
$ |
$ |
Total assets |
25,344 |
27,483 |
Total liabilities |
25,854 |
24,537 |
Shareholders'
equity |
(510) |
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 two
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 August 25, 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 audited 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.