SAINT-EPHREM-DE-BEAUCE, QUEBEC -- (Marketwired) -- 08/28/15 -- 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 May 2, 2015.
"Sigma Industries benefitted from improved market conditions in its main operating segments and from its decision to concentrate on manufacturing leading-edge composite products using the closed mould process. This initiative, completed early in the fiscal year, resulted in transferring the production of certain components to our subsidiary Rene Composites Materials. In so doing, we leveraged Rene's manufacturing expertise in this domain to step up our presence in strategic markets, and we also benefitted from important cost reductions," said Denis Bertrand, President and Chief Executive Officer of Sigma Industries.
FOURTH QUARTER RESULTS
Revenues from continuing operations for the fourth quarter of fiscal 2015 totalled $18.7 million, up 27.7% from $14.6 million in the fourth quarter of fiscal 2014. This increase mainly reflects a rise of $3.1 million in sales to the heavy-duty truck market resulting from higher industry shipments. The revenue increase also reflects a higher year-over-year conversion rate applied to U.S. dollar denominated sales as a result of currency fluctuations. Finally, the quarter ended May 2, 2015 comprised 14 weeks compared to 13 weeks for the quarter ended April 26, 2014. This additional week increased sales by approximately $1.2 million in the fourth quarter of fiscal 2015.
Sigma Industries recorded adjusted earnings before interest, taxes, depreciation and amortization ("EBITDA") from continuing operations of $1.3 million, or 6.9% of revenues, in the fourth quarter of fiscal 2015, compared with $357,460, or 2.4% of sales, in the fourth quarter of last year. This increase is attributable to benefits stemming from the specialization in closed mould manufacturing following the transfer of U.S. production to Rene's facilities early in fiscal 2015, and to the effect of a greater business volume on the absorption of fixed overhead costs.
Sigma Industries concluded the fourth quarter of fiscal 2015 with net income from continuing operations of $612,900, or $0.05 per basic and diluted share, versus a net loss from continuing operations of $1.7 million, or $0.14 per basic and diluted share, in the fourth quarter of fiscal 2014. The Company recorded a $206,405 gain in the fourth quarter of fiscal 2015, following a fire that severely damaged one of Rene's facilities in Saint-Ephrem on February 9, 2015. This gain represents initial proceeds from the insurance claim that exceeded the book value of the affected assets. In the fourth quarter of fiscal 2014, the Company recorded a loss of $1.2 million on the closure of its U.S. operations
FISCAL 2015 RESULTS
For the fiscal year ended May 2, 2015, revenues from continuing operations amounted to $65.1 million, versus $54.7 million for the fiscal year ended April 26, 2014. This 19.0% increase essentially reflects higher revenues from the heavy-duty truck industry, the bus industry and the wind energy market. The revenue increase also reflects a higher year-over-year conversion rate applied to U.S. dollar denominated sales as a result of currency fluctuations. Finally, fiscal 2015 comprised 53 weeks compared to 52 weeks for fiscal 2014. This additional week increased fiscal 2015 sales by about $1.2 million.
Driven by the transfer of U.S. production to Rene's facilities, the effect of higher business activity on the absorption of fixed overhead costs, and the net effect of a higher year-over-year conversion rate applied to U.S. dollar denominated sales and costs, adjusted EBITDA from continuing operations totalled $4.2 million, or 6.4% of revenues, up from $546,998, or 1.0% of revenues, last year. Net income from continuing operations reached $1.9 million, or $0.16 per basic and diluted share, versus a net loss from continuing operations of $3.8 million, or $0.32 per basic and diluted share, a year earlier.
SELECTED FINANCIAL INFORMATION
The selected financial information reflects the sale of the PNS Tech division effective October 1, 2013 and in accordance with IFRS, this division has been presented as discontinued operations in the Company's audited consolidated financial statements.
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Consolidated
results of
operations Three months ended Fiscal years ended
----------------------------------------------------------
(unaudited, in
thousands of
Canadian dollars
except per-share
amounts) May 2, 2015 April 26, 2014 May 2, 2015 April 26, 2014
$ $ $ $
Revenues from
continuing
operations 18,695 14,636 65,068 54,680
Adjusted EBITDA
from continuing
operations 1,294 357 4,175 547
Net income (loss)
from continuing
operations 613 (1,679) 1,862 (3,753)
Per share (basic
and diluted) 0.05 (0.14) 0.16 (0.32)
Net income (loss) 613 (1,745) 1,862 (3,575)
Per share (basic
and diluted) 0.05 (0.15) 0.16 (0.30)
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Reconciliation of
EBITDA, adjusted
EBITDA and net
income Three months ended Fiscal years ended
-----------------------------------------------------------
(unaudited, in
thousands of
Canadian
dollars) May 2, 2015 April 26, 2014 May 2, 2015 April 26, 2014
$ $ $ $
Net income (loss) 613 (1,745) 1,862 (3,575)
MINUS:
Net income from
discontinued
operations - (66) - 178
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Net income (loss)
from continuing
operations 613 (1,679) 1,862 (3,753)
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PLUS (less):
Income tax
expense recovery - (68) 2 (90)
Loss on closure
of US operations - 1,168 - 1,168
Gain on disaster (206) - (206) -
Gain on lease
cancellation - - (602) -
Depreciation and
amortization 383 317 1,331 1,246
Financial
expenses 504 619 1,788 1,976
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Adjusted EBITDA
from continuing
operations 1,294 357 4,175 547
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PLUS (less):
Foreign exchange
gain (177) 44 (497) (406)
Gain on disposal
of property,
plant and
equipment 73 - 81 -
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EBITDA from
continuing
operations 1,190 401 3,759 (141)
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Consolidated balance
sheet data As at
-------------------------------
(in thousands of
Canadian dollars) May 2, 2015 April 26, 2014
$ $
Total assets 26,490 25,344
Total liabilities 24,746 25,854
Shareholders' equity 1,744 (510)
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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 VENTURE: SSG), a manufacturing company specializing in the production of composite components, has two operating subsidiaries and employs 375 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 28, 2015, 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.
Contacts:
Sigma Industries Inc.
Denis Bertrand
President and Chief Executive Officer
418-484-5282
denis.bertrand@sigmaindustries.ca
