SAINT-EPHREM-DE-BEAUCE, QUEBEC--(Marketwired - Mar 2, 2017) - Sigma Industries Inc. (TSX VENTURE:SSG), a manufacturing company specializing in the production of composite components, announces results for the third quarter of its 2017 fiscal year ended January 28, 2017.
"Sigma Industries' third quarter results remain affected by the slowdown in the U.S. heavy-duty truck industry. Despite lower revenue, we remained profitable with net income of $733,000 due to benefits from our specialization in the closed mould manufacturing process, as well as our constant focus on reducing costs and further improving efficiency. While we expect market conditions to remain relatively difficult in the heavy-duty truck industry, we are confident in our ability to further expand our reach in our main markets. For this reason, we recently announced our intention to proceed with new capital investments as part of a modernization program of our facilities and equipment to ensure we remain a leading manufacturer of innovative and high-quality products," said Denis Bertrand, President and Chief Executive Officer of Sigma Industries.
THIRD QUARTER RESULTS
Revenues for the third quarter of fiscal 2017 amounted to $13.1 million, compared with $15.1 million in the third quarter of fiscal 2016. This decrease is essentially attributable to lower revenues from the heavy-duty truck industry resulting from a market slowdown in the United States. This factor was partially offset by higher sales to the wind energy market due to increased customer orders.
Earnings before interest, taxes, depreciation and amortization ("EBITDA") were $1.3 million, representing 10.0% of revenues, versus $900,153, or 6.0% of revenues, a year earlier. The increase in dollars and as a percentage of sales mainly reflects the favourable settlement of a litigation with a raw-material supplier applied against cost of sales and further benefits from the specialization in closed-mould manufacturing. Excluding items not related to current operations, such as variations in the fair value of foreign exchange derivatives held by the Company, adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") were $937,974 in the third quarter of fiscal 2017, versus $989,518 last year.
Sigma Industries concluded the third quarter of fiscal 2017 with net income of $733,133, or $0.06 per basic share ($0.03 per diluted share), versus $209,935, or $0.02 per basic and diluted share, in the third quarter of fiscal 2016.
For the nine-month period ended January 28, 2017, revenues reached $39.1 million, versus $49.5 million in the nine-month period ended January 30, 2016. EBITDA stood at $3.0 million, compared with $3.4 million in the prior year, while adjusted EBITDA amounted to $3.3 million, stable from a year earlier. Net income totalled $1.2 million, or $0.10 per basic share ($0.05 per diluted share), versus $1.2 million, or $0.10 per basic and diluted share, last 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 28, 2017||January 30, 2016||January 28, 2017||January 30, 2016|
|per share (basic)||0.06||0.02||0.10||0.10|
|per share (diluted)||0.03||0.02||0.05||0.10|
|Reconciliation of EBITDA, adjusted EBITDA and net income||Three months ended||Nine months ended|
|(unaudited, in thousands of Canadian dollars)||January 28, 2017||January 30, 2016||January 28, 2017||January 30, 2016|
|Income tax expense||-||-||-||1|
|Depreciation and amortization||331||371||1,044||1,101|
|Net loss (gain) in fair value of foreign exchange derivatives||(372||)||89||174||149|
|Write-off of financial expenses and fees related to new financing||-||-||192||-|
|Gain on disaster||-||-||-||(264||)|
|Consolidated balance sheet data||As at|
|(in thousands of Canadian dollars)||January 28, 2017||April 30, 2016|
NON-IFRS FINANCIAL MEASURES
The information in this press release includes certain measures that are not financial measures prescribed under IFRS. Sigma Industries uses earnings before interest, taxes, depreciation and amortization ("EBITDA") and adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted 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. EBITDA is obtained by adding net income (loss) plus income taxes, financial expenses, as well as depreciation and amortization. Adjusted EBITDA consists of EBITDA plus (minus) items not related to current operations. 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 VENTURE:SSG), a manufacturing company specializing in the production of composite components, has two operating subsidiaries and employs 275 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.
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 2, 2017, 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.