DRUMMONDVILLE, QUEBEC--(Marketwired - Nov. 9, 2015) - NAPEC Inc. ("NAPEC" or "the Corporation") (TSX:NPC) today reported results for its third quarter ended September 30, 2015. All amounts are in Canadian dollars unless otherwise indicated.

Financial highlights Three months ended Sept. 30, Nine months ended Sept. 30,
(in thousands of dollars, except per-share data) 2015 2014 2015 2014
Revenues 87,192 69,958 228,092 219,066
EBITDA 6,458 1,184 13,278 7,558
Net earnings 1,340 (2,965 ) 1,038 (2,239 )
Per share - basic and diluted ($) 0.02 (0.04 ) 0.01 (0.03 )
Weighted average number of outstanding shares (basic, in thousands) 79,866 71,533 75,237 71,533

"NAPEC's revenues grew strongly while its EBITDA margin progressed towards its historical level in the third quarter. U.S. revenues were up 36.0%, reflecting our growing presence in the eastern United States. At September 30, 2015, the value of our order backlog was $321 million, representing an increase of 40.8% in the last twelve months. This vitality illustrates the favourable strategic positioning of our subsidiaries in their respective markets following the implementation of our new business model", said Pierre L. Gauthier, President and Chief Executive Officer of NAPEC.


Revenues for the quarter were $87.2 million, up 24.6% from $70.0 million in the third quarter of 2014. The increase was mainly due to higher revenues from contracts related to electricity transmission lines and mechanical projects, offset in part by a decrease in revenues from contracts related to electricity projects for industrial, commercial and institutional customers. Fluctuations in the exchange value of the Canadian dollar increased the value of U.S.-dollar-denominated revenues during the quarter ended September 30, 2015 by approximately $10.9 million compared to the same period of 2014.

The increase in revenues and a more favourable revenue mix lifted earnings before interest, taxes, depreciation and amortization ("EBITDA") to $6.5 million, or 7.4% of revenues, from $1.2 million, or 1.7% of revenues, in the third quarter of 2014. EBITDA for the third quarter of 2015 includes expenses of $394,000 related to the acquisition of Bemis, LLC ("Bemis"), announced on October 9, 2015. In the third quarter of 2014, EBITDA was affected by the execution of an unprofitable contract.

Net earnings for the third quarter of 2015 were $1.3 million, or $0.02 per basic and diluted share, compared to a net loss of $3.0 million, or $0.04 per basic and diluted share, in the third quarter of 2014.


Revenues for the first nine months of 2015 were $228.1 million, versus $219.1 million for the corresponding period of 2014. EBITDA was $13.3 million, or 5.8% of revenues, up from $7.6 million, or 3.5% of revenues, a year earlier. Net earnings for the first nine months of 2015 were $1.0 million, or $0.01 per basic and diluted share, compared to a net loss of $2.2 million, or $0.03 per basic and diluted share, in the first nine months of 2014.


As at September 30, 2015, long-term debt, including the current portion, was $34.4 million, versus $34.3 million three months earlier, and the ratio of long-term debt to equity was 0.34, versus 0.36 three months earlier. At the same date, the Corporation held a cash balance of $4.9 million and had drawn a total of $25.6 million on its authorized renewable credit facility of $40.0 million.


"NAPEC remains focused on the execution of its strategic plan and the realization of synergies from its organizational transformation. These initiatives will enable our subsidiaries to capture additional business opportunities given the strong fundamentals and favourable trends prevailing in the industry, while setting themselves apart by delivering high-quality services. In this regard, the acquisition of Bemis further raises our profile in the U.S. Northeast and brings us a new field of value-added expertise that we can leverage across our network", concluded Mr. Gauthier.


EBITDA is a measure that has no standardized meaning prescribed by IFRS and is thus considered to be a non-IFRS measure. Therefore, this measure may not be comparable to similar measures presented by other issuers. This measure is presented and described in this release in order to provide additional information regarding the Corporation's liquidity and its ability to generate funds to finance its operations.


This document contains forward-looking statements that reflect management's current expectations regarding future events. Forward-looking statements are based on a number of factors and include risks and uncertainties. Actual results may differ from forecast results. Management assumes no obligation beyond what is required under the law to update or revise forward-looking statements pursuant to new information or future events.


NAPEC is a corporation operating in the energy sector. The Corporation is a leading service provider to the public utility and heavy industrial markets mainly in Quebec, Ontario and the eastern United States. NAPEC and its subsidiaries build and maintain electrical transmission and distribution grids, as well as networks for gas utilities. In addition, the Corporation installs gas-powered and electric-powered heavy equipment for utilities, gas-fired industrial power plants, and petrochemical facilities in North America.

Further information regarding NAPEC is available in the SEDAR database (www.sedar.com) and on the Corporation's website at www.napec.ca.

Contact Information:


Pierre L. Gauthier
President and Chief Executive Officer

Mario Trahan, CPA, CMA
Chief Financial Officer

Martin Goulet, CFA