Business
Results for the Fiscal Year Ended January 31, 2010 - ADF Group Inc. maintains a good financial performance and solid balance sheet despite the economic context
Results for the Fiscal Year Ended January 31, 2010 - ADF Group Inc. maintains a good financial pe...
About this update from Adf Group Inc.
[{"type":"text","content":"\n\n\n\nTERREBONNE, QC, Apr. 15, 2010 (Canada NewsWire Group) -- /CNW Telbec/ -- ADF GROUP INC. (\"ADF\" or the \"Corporation\") (ticker symbol: DRX/TSX) recorded revenues of $65.7 million for the fiscal year ended January 31, 2010, compared with $98.9 million the previous year. Besides the economic context, this 33% decrease can be explained by the different mix of revenues derived from contracts executed during the two comparative years, as well as delays attributable to clients in the progress of certain major projects under way.Due to the revenue decrease, the gross margin before foreign exchange variation declined from $29.5 million during fiscal 2009 to $18.7 million in 2010. However, ADF maintained a strong gross margin as a percentage of revenues, in the amount of 28.4% in 2010 versus 29.8% in 2009. It should be noted that during the fourth quarter ended January 31, 2010, the Corporation settled certain contractual changes for which the costs had been recorded in previous quarters.Earnings before interest, income taxes and amortization, excluding gains or losses on foreign exchange(1) (or \"EBITDA\") amounted to $14.2 million, compared with $23.0 million in 2009. However, the EBITDA margin as a percentage of revenues also remained high, at 21.5% in 2010 versus 23.2% in 2009.ADF recorded a gain on foreign exchange of $1.7 million in 2010, compared with a gain on foreign exchange of $3.8 million in 2009. Amortization increased by $0.7 million due to the investments allocated over the past two years to the expansion and optimization of the Terrebonne industrial complex. However, this increase was offset by the recognition of net interest income of $0.5 million as opposed to net financial charges of $0.3 million the previous year, representing a $0.8 million favourable variation attributable to the repayment of long-term debt, a lower variable interest rate and the Corporation's substantial available cash.Consequently, ADF Group posted earnings before income taxes of $13.3 million, compared with $24.0 million the previous year. The Corporation thus achieved an appreciable pre-tax profit margin of 20.2%, versus 24.3% the previous year.ADF closed fiscal 2010 with net earnings of $7.0 million or $0.20 basic per share ($0.19 diluted per share), compared with $15.6 million or $0.43 basic per share ($0.42 diluted per share) in 200...