SAINT-EPHREM-DE-BEAUCE, QUEBEC -- (Marketwired) -- 09/28/16 -- Sigma Industries Inc. (TSX VENTURE: SSG), a manufacturing company specializing in the production of composite components, announces results for the first quarter of its 2017 fiscal year ended July 30, 2016.
"As anticipated, Sigma Industries' operating results of the first quarter were affected by the slowdown in the heavy-duty truck industry. However, we continued to benefit from healthy market conditions in the bus industry, where our revenues rose considerably. Looking ahead, we believe that market conditions will remain difficult in the heavy-duty truck market for the remainder of the fiscal year, putting additional pressure on our revenues and profitability. To mitigate the impact, we will remain diligent in our efforts to reduce costs and further improve operating efficiency," said Denis Bertrand, President and Chief Executive Officer of Sigma Industries.
FIRST QUARTER RESULTS
Revenues for the first quarter of fiscal 2017 amounted to $13.4 million, compared with $16.5 million in the first quarter of fiscal 2016. This decrease is essentially attributable to lower revenues from the heavy-duty truck industry resulting from a market slowdown. This factor was offset by higher sales to the bus industry due to greater industry shipments and a higher year-over-year conversion rate applied to U.S. dollar denominated sales as a result of currency fluctuations.
Sigma Industries recorded earnings before interest, taxes, depreciation and amortization ("EBITDA") of $1.0 million, or 7.4% of revenues, in the first quarter of fiscal 2017, versus $1.0 million, or 6.3% of revenues, a year earlier. The increase as a percentage of revenues mainly reflects the execution of a contract with a higher profitability during the quarter. As a result, Sigma Industries concluded the first quarter of fiscal 2017 with net income of $286,494, or $0.02 per basic share ($0.01 per diluted share), versus $286,915, or $0.02 per basic and diluted share, in the first quarter of fiscal 2016.
SELECTED FINANCIAL INFORMATION
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Consolidated results of operations Three months ended
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(unaudited, in thousands of Canadian dollars
except per-share amounts) July 30, 2016 August 1, 2015
$ $
Revenues 13,411 16,489
EBITDA 990 1,035
Net income 287 287
Per share (basic) 0.02 0.02
Per share (diluted) 0.01 0.02
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Reconciliation of EBITDA, adjusted EBITDA and
net income
(unaudited, in thousands of Canadian dollars) Three months ended
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July 30, 2016 August 1, 2015
$ $
Net income 287 287
PLUS (less):
Income tax expense 0 1
Depreciation and amortization 413 352
Financial expenses 290 395
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EBITDA and Adjusted EBITDA 990 1,035
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Consolidated balance sheet data As at
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(in thousands of Canadian dollars) July 30, 2016 April 30, 2016
$ $
Total assets 22,939 24,896
Total liabilities 18,957 21,697
Shareholders' equity 3,982 3,699
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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 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 300 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 September 28, 2016, 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.
Contacts:
Sigma Industries Inc.
Denis Bertrand
President and Chief Executive Officer
418-484-5282
denis.bertrand@sigmaindustries.ca
