SAINT-ÉPHREM-DE-BEAUCE, QUÉBEC--(Marketwired - June 21, 2017) - Sigma Industries Inc. (TSX VENTURE:SSG), a manufacturing company specializing in the production of composite components, announces results for the fourth quarter and fiscal year ended April 29, 2017.
"Fiscal 2017 proved the resiliency of our business model, as Sigma Industries had to contend with lower demand from its principal market, but managed to generate a good profitability. Looking ahead, we believe that market conditions will gradually improve in the heavy-duty truck industry over the course of the new fiscal year, which should progressively translate into a higher business volume. We also believe that our recent selection to participate in the Québec government's Accelerated Growth Center program will allow Sigma Industries to assess every opportunity to further increase its reach in the United States and to align its business strategy with the evolution of the American market. In addition, our plan to proceed with new capital investments as part of a modernization program of our facilities and equipment is progressing as anticipated," said Denis Bertrand, President and Chief Executive Officer of Sigma Industries.
FOURTH QUARTER RESULTS
Revenues for the fourth quarter of fiscal 2017 amounted to $15.5 million, compared with $15.4 million in the fourth quarter of fiscal 2016. This slight increase mainly reflects higher sales to the bus industry due to increased customer orders, partially offset by lower sales to the heavy-duty truck market resulting from lower industry shipments.
Excluding items not related to current operations, adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") reached $1.1 million in the fourth quarter of fiscal 2017, versus $967,924 last year. The increase reflects the year-over-year variations in the fair value of foreign exchange derivatives held by the Company. Earnings before interest, taxes, depreciation and amortization ("EBITDA") totalled $485,086, representing 3.1% of revenues, versus $1.3 million, or 8.7% of revenues, a year earlier. The decrease in dollars and as a percentage of sales mainly reflects a less favourable product mix, this year compared to last, due to the execution of a contract with a higher profitability in the fourth quarter of fiscal 2016.
Sigma Industries concluded the fourth quarter of fiscal 2017 with net income of $645,749, or $0.05 per basic share ($0.02 per diluted share), versus net income of $652,011, or $0.05 per basic and diluted share, in the fourth quarter of fiscal 2016.
FISCAL 2017 RESULTS
For the fiscal year ended April 29, 2017, revenues reached $54.6 million, versus $64.9 million in the fiscal year ended April 30, 2016. Adjusted EBITDA amounted to $4.4 million, up from $4.2 million a year earlier, while EBITDA stood at $3.7 million, compared with $4.7 million in the prior year. Net income totalled $1.8 million, or $0.15 per basic share ($0.07 per diluted share), versus $1.9 million, or $0.16 per basic and diluted share, last 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 29, 2017||April 30, 2016||April 29, 2017||April 30, 2016|
|per share (basic)||0.05||0.05||0.15||0.16|
|per share (diluted)||0.02||0.05||0.07||0.16|
|Reconciliation of EBITDA, adjusted EBITDA and net income||Three months ended||Fiscal years ended|
|(unaudited, in thousands of Canadian dollars)||April 29, 2017||April 30, 2016||April 29, 2017||April 30, 2016|
|Income tax expense (revenue)||(800||)||-||(800||)||1|
|Depreciation and amortization||374||365||1,417||1,466|
|Write-off of financial expenses and fees||-||-||192||-|
|Net loss (gain) in fair value of foreign exchange derivatives||611||(377||)||785||(228||)|
|Gain on disaster||-||-||-||(264||)|
|Consolidated balance sheet data||As at|
|(in thousands of Canadian dollars)||April 29, 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 June 21, 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 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.