SAINT-ÉPHREM-DE-BEAUCE, QUÉBEC--(Marketwired - Dec. 13, 2017) - Sigma Industries Inc. (TSX VENTURE:SSG), a manufacturing company specializing in the production of composite components, announces results for the second quarter of its 2018 fiscal year ended October 28, 2017.
"Sigma Industries recorded another solid financial and operating performance in the second quarter of its 2018 fiscal year. Revenue growth was significant in the bus and industrial markets where customer demand for our high-quality products remains strong, while business activity in the heavy-duty truck industry continues to gradually improve. Operating profitability also remained solid, as our constant efforts to enhance productivity more than offset higher labour costs and unfavourable currency movements," said Denis Bertrand, President and Chief Executive Officer of Sigma Industries.
"This quarter, we invested approximately $1.0 million, mainly to increase the automation of our activities. We believe these investments, combined with our proven reputation for innovation and high-quality solutions, will allow Sigma Industries to sustain its momentum and to remain at the forefront of business opportunities that may arise. We are satisfied with the progress accomplished and we will proactively seek additional initiatives to improve efficiency. In parallel, we continue to carefully study the U.S. market as part of our participation in the Québec government's Accelerated Growth Center program. We are in the process of finding an optimal location to set up a manufacturing facility in the United States in order to benefit from a closer proximity with our U.S.-based clients and better labour availability. We are confident that this initiative will further increase our reach south of the border and provide Sigma Industries with new growth opportunities," added Mr. Bertrand.
SECOND QUARTER RESULTS
Revenues for the second quarter of fiscal 2018 amounted to $14.2 million, up $1.6 million, or 12.7%, from $12.6 million in the previous year. This increase essentially reflects higher sales to the bus and industrial markets due to higher customer orders, as well as higher revenues from the heavy-duty truck industry resulting from improving market conditions.
Earnings before interest, taxes, depreciation and amortization ("EBITDA") totalled $975,000, representing 6.9% of revenues, versus $870,000, or 6.9% of revenues, a year earlier. The increase in dollars is attributable to greater business activity and better efficiency, partially offset by higher labour costs and year-over-year currency fluctuations.
Sigma Industries concluded the second quarter of fiscal 2018 with net income of $377,000, or $0.03 per basic share ($0.01 per diluted share), versus net income of $150,000, or $0.01 per basic share ($0.01 per diluted share) in the second quarter of fiscal 2017.
For the first six months of fiscal 2018, revenues totalled $29.6 million, up 13.7% from $26.0 million in the first six months of fiscal 2017. EBITDA amounted to $3.2 million, or 10.8% of revenues, versus $1.9 million, or 7.1% of revenues, last year. Net income reached $1.8 million, or $0.16 per basic share ($0.06 per diluted share), up sharply from $436,000, or $0.04 per basic share ($0.02 per diluted share), in the prior year.
"Looking ahead, market conditions should remain healthy in the majority of our markets. Given this mostly favourable backdrop, Sigma Industries is well positioned to make further progress as it remains focused on generating additional sales by diversifying its product offering and stepping up penetration of existing customers. Our drive to optimize overall efficiency will leverage our proven reputation as a provider of innovative, value-added composite products and systems. By building on its core strength, Sigma Industries is committed to create lasting value for its shareholders," concluded Mr. Bertrand.
|SELECTED FINANCIAL INFORMATION|
|Consolidated results of operations||Three months ended||Six months ended|
|(unaudited, in thousands of Canadian dollars except per-share amounts)||October 28,
|per share (basic)||0.03||0.01||0.16||0.04|
|per share (diluted)||0.01||0.01||0.06||0.02|
|Reconciliation of EBITDA, adjusted EBITDA and net income||Three months ended||Six months ended|
|(unaudited, in thousands of Canadian dollars)||October 28,
|Income tax expense||150||-||300||-|
|Depreciation and amortization||218||299||597||713|
|Write-off of financial expenses and fees||-||192||-||192|
|Net loss (gain) in fair value of foreign exchange derivatives||338||332||(1,028||)||545|
|Consolidated balance sheet data||As at|
|(in thousands of Canadian dollars)||October 28, 2017||April 29, 2017|
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 December 13, 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.