HIGHLIGHTS(All amounts are in Canadian dollars unless otherwise noted.)
Revenue of $182.3 million recorded during the 6-month period ended July 31, 2024, up 13.6% compared with the same period a year earlier.
Net income of $16.0 million and $31.3 million recorded for the 3-month and 6-month periods ended July 31, 2024, up 51.8 % and 96.5% respectively from the same periods a year ago.
Cash flow from operating activities of $60.1 million for the 6-month period ended July 31, 2024.
Order backlog (1) at $402.3 million as at July 31, 2024.
TERREBONNE, QB, Sept. 12, 2024 /CNW/ - ADF GROUP INC. ("ADF" or the "Corporation") (TSX:DRX), recorded revenues of $74.9 million during the second quarter ended July 31, 2024, compared with $80.2 million for the same period a year earlier. After the first six months of the fiscal year, revenues totalled $182.3 million, which is $21.8 million or 13.6% more than for the same period a year earlier.
Although revenues to date are $21.8 million higher than a year ago, those for the second quarter were impacted by one client's delays in construction site preparation. The Corporation estimates that had it not been for these delays, revenues for the quarter and the 6-month period ended July 31, 2024, would have been approximately $35.0 million higher, revenues coming from additional steel erecting (installation) work. In fact, more than 300 truck loads of fabricated structural steel and steel components are waiting for delivery to the construction site. These revenues are naturally not lost but rather pushed forward in time. Given that installation schedules are difficult to compress over time, these missing revenues risk being pushed forward to the next fiscal year.
Gross margin, as a percentage of revenues (1) went from 22.2% for the 3-month period ended July 31, 2023, to 36.9% for the same period ended July 31, 2024. Gross margin, as a percentage of revenue (1) went from 19.5% during the first semester ended July 31, 2023, to 32.3% in the same period ended July 31, 2024.
The improvement in margins is in line with the increase observed in recent quarters and is largely attributable to a better absorption of fixed costs, in line with the increase in fabrication volume, the continued favorable impact of the investments in automation at ADF's plant in Terrebonne, Quebec, and a favorable mix of projects. For the second consecutive quarter, the mix of products in fabrication was particularly favorable.
Adjusted earnings before interest, taxes, depreciation, and amortization (adjusted EBITDA) (2) for the 6-month period ended July 31, 2024, at $48.0 million, was $25.3 million higher than at the same date a year ago.
For the quarter ended July 31, 2024, ADF recorded net income of $16.0 million ($0.51 per basic and diluted share) compared with net income of $10.5 million ($0.32 per share, basic and diluted) a year earlier. At the close of the first semester on July 31, 2024, net income totalled $31.3 million ($0.98 per share, basic and diluted) compared with net income of $15.9 million ($0.49 per share, basic and diluted) for the same period a year ago.
The Corporation's order backlog (1) stood at $402.3 million as at July 31, 2024. Projects currently in the order backlog will extend until the end of the fiscal year ending January 31, 2026.
As at July 31, 2024, the Corporation had working capital (1) of $90.1 million. The Corporation's operating activities generated cash of $60.1 million during the first 6 months ended July 31, 2024. The Corporation remains in a good position to continue its current operations and carry out its development projects.
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(1)
Gross margin, as a percentage of revenues, working capital, as well as the order backlog are additional financial measures. ...
