Business
Results for the First Quarter Ended April 30, 2010 - ADF Group maintains its focus
Results for the First Quarter Ended April 30, 2010 - ADF Group maintains its focus
About this update from Adf Group Inc.
[{"type":"text","content":"\n\n\n\n Jun. 9, 2010 (Canada NewsWire Group) -- \n\n >\n\n\nTERREBONNE, QC, June 9 /CNW Telbec/ - For the three-month period ended April 30, 2010, ADF Group ("ADF" or the "Corporation") (ticker symbol: DRX/TSX) recorded revenues of $13.6 million, compared with $16.8 million for the same quarter of the previous year. The first-quarter gross margin stood at $4.6 million, representing 34% of revenues, compared with $5.4 million or 32% of revenues for the same period the previous year.\nThe relative strong operational performance was in part impacted by the delays attributable to clients on certain projects and the sharp increase in the Canadian dollar in relation to the U.S. dollar between the two comparable periods ended April 30, 2010 and 2009.\nEBITDA (earnings before interest, taxes, depreciation and amortization) margin also remained high, standing at 23.1%, compared with 24.4% in the same quarter of the previous year.\nADF closed the quarter with net earnings of $1.2 million or $0.03 per share (basic and diluted), compared with $2.2 million or $0.06 per share (basic and diluted) in the first quarter of the previous year. Besides the unfavourable impact of the appreciation in the Canadian dollar and the decrease in revenues due to delays caused by clients on certain projects, this variation reflects an increase in certain costs, including amortization and interest expenses resulting from the investments programs carried out over the past two fiscal years in order to expand, diversify and optimize ADF's production infrastructure.\nFinally, as at April 30, 2010, the Corporation remains in an excellent financial position, as attested to by its 5.15:1 current ratio, its $9 million liquidities surplus comprised of cash (including cash, cash equivalents and short term investments) over its long-term debt (including the current portion), and a long-term debt to equity ratio of just 0.12:1.\n"During the first quarter of fiscal 2011, ADF Group continued to address the challenges of a difficult business environment with efficiency and discipline. By keeping our focus on ADF's quality and profitability objectives, we were able to maintain and even increase our profit margins, regardless of the delays in connection with certain projects, and despite an unfavourable exchange rate" said Jean Paschini, Chairman...