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SAINT-EPHREM-DE-BEAUCE, QUEBEC--(Marketwired - Mar 21, 2016) - Sigma Industries Inc. (TSX VENTURE:SSG), a manufacturing company specializing in the production of composite components, announces results for the third quarter of its 2016 fiscal year ended January 30, 2016.
"Sigma Industries' third quarter operating results reflect slowing activity in the heavy-duty truck market. Following several solid periods, industry sales declined this past quarter and manufacturers responded with a more cautious inventory management. Since this market is subject to cyclical fluctuations, our business volume may be under pressure over the short-term. However, we have made significant progress since initiating our strategic refocus and sustained efforts to enhance the work flow throughout the organization can lead to additional productivity gains and cost reductions," said Denis Bertrand, President and Chief Executive Officer of Sigma Industries.
THIRD QUARTER RESULTS
Revenues for the third quarter of fiscal 2016 totalled $15.1 million, compared with $16.1 million in the third quarter of fiscal 2015. This variation is mainly attributable to lower sales to the heavy-duty truck market as a result of manufacturer's inventory adjustments. This factor was partially offset by higher sales to the bus market due to greater industry shipments and to a higher year-over-year conversion rate applied to U.S. dollar denominated sales.
Sigma Industries recorded adjusted earnings before interest, taxes, depreciation and amortization ("EBITDA") of $900,153, or 6.0% of revenues, in the third quarter of fiscal 2016, versus $861,094, or 5.4% of revenues, a year earlier. The increase reflects benefits stemming from the specialization in closed mould manufacturing, including a greater proportion of costs labelled in Canadian dollars. The Company also incurred a foreign exchange loss in the third quarter of fiscal 2016, which reflects foreign exchange contracts entered into at rates that became less favourable than market rates due to important variations in the value of the Canadian dollar, as opposed to a foreign exchange gain in the third quarter of fiscal 2015.
As a result, Sigma Industries concluded the third quarter of fiscal 2016 with net income of $209,935, or $0.02 per basic and diluted share, compared with $124,107, or $0.01 per basic and diluted share, a year earlier.
For the nine-month period ended January 30, 2016, revenues amounted to $49.5 million, versus $46.4 million in the nine-month period ended January 24, 2015. Adjusted EBITDA reached $3.1 million, or 6.3% of revenues, versus $2.9 million, or 6.2% of revenues, last year. Net income totalled $1.2 million, or $0.10 per basic and diluted share, in the first nine months of fiscal 2016, compared with net income of $1.2 million, or $0.11 per basic and diluted share, in the first nine months of fiscal 2015.
SELECTED FINANCIAL INFORMATION
|Consolidated results of operations||Three months ended||Nine months ended|
|(unaudited, in thousands of Canadian dollars except per-share amounts)||January 30, 2016||January 24, 2015||January 30, 2016||January 24, 2015|
|Per share (basic and diluted)||0.02||0.01||0.10||0.11|
|Reconciliation of EBITDA, adjusted EBITDA and net income||Three months ended||Nine months ended|
|(unaudited, in thousands of Canadian dollars)||January 30, 2016||January 24, 2015||January 30, 2016||January 24, 2015|
|Income tax expense (recovery)||-||12||1||2|
|Gain on lease cancellation||-||-||-||(602||)|
|Gain on disaster||-||-||(264||)||-|
|Depreciation and amortization||371||326||1,101||948|
|Foreign exchange loss (gain)||96||(276||)||183||(320||)|
|Loss (gain) on disposal of property, plant and equipment||23||8||37||8|
|Consolidated balance sheet data||As at|
|(in thousands of Canadian dollars)||January 30, 2016||May 2, 2015|
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 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.
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 March 21, 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.
Sigma Industries Inc.
President and Chief Executive Officer