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The Corporation Concludes the Year With a Significant Increase in Profitability and a Record Backlog
DRUMMONDVILLE, QUEBEC--(Marketwired - Mar 24, 2016) - NAPEC Inc. ("NAPEC" or "the Corporation") (TSX:NPC) today reported its results today for the fourth quarter and fiscal year ended December 31, 2015. All amounts are in Canadian dollars unless otherwise indicated.
|Financial highlights||Three months ended Dec. 31,||Years ended Dec. 31,|
|(in thousands of dollars, except shares and per share data)||2015||2014||2015||2014|
|Net earnings (loss)||1,322||(88||)||2,360||(2,327||)|
|Per share - basic and diluted ($)||0.02||0.00||0.03||(0.03||)|
|Weighted average number of outstanding shares (basic, in thousands)||79,866||71,533||76,394||71,533|
"In 2015, NAPEC posted a significant improvement in operating results, completed a strategic acquisition and was awarded several important contracts in its principal market niches. At the very beginning of 2016, we also consolidated our Canadian operations under the unified banner of Thirau inc., thereby finalizing the adoption of our new business model. Furthermore, the major trends that we had observed and which led to the development of the strategic plan appear to be materializing, which is a positive sign for the coming years", said Pierre L. Gauthier, President and Chief Executive Officer of NAPEC.
FOURTH QUARTER RESULTS
Revenues were $115.9 million, up 57.4% from $73.6 million in the fourth quarter of 2014. The variation mainly reflects higher revenues from contracts related to electricity transmission lines, electrical projects for industrial, commercial and institutional customers, as well as the addition of the road matting services of Bemis, LLC ("Bemis"), which was acquired on October 8, 2015. Fluctuations in the exchange value of the Canadian dollar increased the value of U.S.-dollar-denominated revenues by approximately $13.4 million during the quarter ended December 31, 2015, compared to the same period in 2014.
The greater business volume and a more favourable revenue mix led to a rise in earnings before interest, taxes, depreciation and amortization ("EBITDA"), which amounted to $7.1 million, or 6.1% of revenues, up from $3.6 million, or 4.8% of revenues, a year earlier. NAPEC ended the fourth quarter of 2015 with net earnings of $1.3 million, or $0.02 per basic and diluted share, compared to a net loss of $88,000, or $0.00 per basic and diluted share, in the fourth quarter of 2014.
FISCAL 2015 RESULTS
Revenues for the fiscal year ended December 31, 2015 totalled $344.0 million, up 17.5% from $292.7 million in fiscal 2014. The currency translation effect increased the value of fiscal 2015 U.S.-dollar-denominated revenues by approximately $36.6 million relative to the previous year. Revenues from work carried out in the U.S. were up 33.2% to $268.6 million, while revenues from contracts performed in Canada declined by 16.8% to $75.4 million.
EBITDA amounted to $20.3 million, or 5.9% of revenues, up from $11.1 million, or 3.8% of revenues, a year earlier. EBITDA for fiscal 2015 includes expenses of $491,000 related to the Bemis acquisition. Net earnings for fiscal 2015 were $2.4 million, or $0.03 per basic and diluted share, compared to a net loss of $2.3 million, or $0.03 per basic and diluted share, the previous year.
As at December 31, 2015, long-term debt, including the current portion, was $63.5 million, versus $34.4 million three months earlier, while the long-term debt-to-equity ratio was 0.60, compared to 0.34 three months earlier. This increase reflects mainly the long-term debt contracted to finance the acquisition of Bemis. As at December 31, 2015, the Corporation also had a cash balance of $4.3 million, while an amount of $27.5 million was available on its $40.0 million authorized credit facility.
As at December 31, 2015, NAPEC's backlog stood at a record level of approximately $470.0 million. This value includes approximately $245.0 million in contracts announced in a press release dated January 14, 2016.
"NAPEC is staying on the course set in its strategic plan. The progress accomplished following the implementation of this plan has increased our confidence in our ability to achieve and surpass our goals. Our subsidiaries are well positioned in their respective markets and enjoy strong reputations. We will build on their core strengths and skills in the construction, installation and maintenance of electricity and gas networks to be in a position to take advantage of profitable business opportunities that can further increase our reach", concluded Mr. Gauthier.
NAPEC will hold a conference call to discuss its results and provide an update on its operations on Thursday, March 24, beginning at 2:00 p.m. Eastern Time. Interested parties can join the call by dialling 647-788-4922 (from Toronto and overseas) or 1-877-223-4471 (from elsewhere in North America). Those unable to participate can listen to a recording by dialling 1-800-585-8367 and entering the code 70966305 on the telephone keypad. The recording will be available from 5:00 p.m. on Thursday, March 24, 2016 until 11:59 p.m. on Thursday, March 31, 2016.
EBITDA does not have a standardized meaning prescribed by IFRS and is therefore considered to be a non-IFRS measure. It is therefore not necessarily comparable to similar measures presented by other companies. 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.
OVERVIEW OF THE CORPORATION
NAPEC is a company operating in the energy sector. The Corporation is a leading provider of construction and maintenance services 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 systems and natural gas networks. The Corporation also installs gas-powered and electric-powered heavy equipment for utilities, gas-fired industrial power plants and petrochemical facilities in North America. The Corporation also offers environmental construction and road matting services.
Pierre L. Gauthier
President and Chief Executive Officer
Mario Trahan, CPA, CMA
Chief Financial Officer
Martin Goulet, CFA