Business
ADF GROUP INC. ANNOUNCE THE RESULTS FOR THE FISCAL YEAR ENDED JANUARY 31, 2023
ADF GROUP INC. ANNOUNCE THE RESULTS FOR THE FISCAL YEAR ENDED JANUARY 31, 2023 Canada N...
About this update from Adf Group Inc.
ADF GROUP INC. ANNOUNCE THE RESULTS FOR THE FISCAL YEAR ENDED JANUARY 31, 2023 /* Style Definitions */ span.prnews_span { font-size:8pt; font-family:"Arial"; color:black; } a.prnews_a { color:blue; } li.prnews_li { font-size:8pt; font-family:"Arial"; color:black; } p.prnews_p { font-size:0.62em; font-family:"Arial"; color:black; margin:0in; } .prngen13{ PADDING-RIGHT:0.33em; PADDING-LEFT:0.17em; VERTICAL-ALIGN: BOTTOM; TEXT-ALIGN: CENTER; BORDER-TOP:black 1pt; BORDER-RIGHT:black 1pt; BORDER-BOTTOM:black 1pt; BORDER-LEFT:black 1pt } .prngen29{ PADDING-RIGHT:0.17em; PADDING-LEFT:0.17em; VERTICAL-ALIGN: TOP; TEXT-ALIGN: LEFT; BORDER-TOP:black 0pt; BORDER-RIGHT:black 0pt; BORDER-BOTTOM:black 0pt; BORDER-LEFT:black 0pt } .prngen9{ PADDING-RIGHT:0.33em; PADDING-LEFT:0.17em; VERTICAL-ALIGN: BOTTOM; TEXT-ALIGN: RIGHT; BORDER-TOP:black 1pt; BORDER-RIGHT:black 0.5pt solid; BORDER-BOTTOM:black 1pt; BORDER-LEFT:black 1pt } .prngen10{ PADDING-RIGHT:0.17em; PADDING-LEFT:0.17em; VERTICAL-ALIGN: BOTTOM; TEXT-ALIGN: RIGHT; BORDER-TOP:black 1pt; BORDER-RIGHT:black 0.5pt solid; BORDER-BOTTOM:black 1pt; BORDER-LEFT:black 1pt } .prngen12{ PADDING-RIGHT:0.17em; PADDING-LEFT:0.17em; VERTICAL-ALIGN: BOTTOM; TEXT-ALIGN: CENTER; BORDER-TOP:black 1pt; BORDER-RIGHT:black 0.5pt solid; BORDER-BOTTOM:black 1pt; BORDER-LEFT:black 1pt } .prngen27{ PADDING-RIGHT:0.17em; PADDING-LEFT:0.17em; VERTICAL-ALIGN: BOTTOM; TEXT-ALIGN: CENTER; BORDER-TOP:black 1pt; BORDER-RIGHT:black 1pt; BORDER-BOTTOM:black 1pt; BORDER-LEFT:black 1pt } .prngen14{ PADDING-RIGHT:0.17em; PADDING-LEFT:0.17em; VERTICAL-ALIGN: TOP; TEXT-ALIGN: LEFT; BORDER-TOP:black 1pt; BORDER-RIGHT:black 1pt; BORDER-BOTTOM:black 1pt; BORDER-LEFT:black 1pt } .prngen8{ PADDING-RIGHT:0.33em; PADDING-LEFT:0.17em; VERTICAL-ALIGN: BOTTOM; TEXT-ALIGN: CENTER; BORDER-TOP:black 1pt; BORDER-RIGHT:black 0.5pt solid; BORDER-BOTTOM:black 1pt; BORDER-LEFT:black 1pt } .prngen36{ PADDING-RIGHT:0.33em; PADDING-LEFT:0.17em; VERTICAL-ALIGN: BOTTOM; TEXT-ALIGN: CENTER; BORDER-TOP:black 1pt; BORDER-RIGHT:black 0.5pt solid; BORDER-BOTTOM:black 3PT double; BORDER-LEFT:black 1pt } .prngen28{ PADDING-RIGHT:0.17em; PADDING-LEFT:0.17em; VERTICAL-ALIGN: BOTTOM; TEXT-ALIGN: RIGHT; BORDER-TOP:black 1pt; BORDER-RIGHT:black 0.5pt solid; BORDER-BOTTOM:black 0.5pt solid; BORDER-LEFT:black 0.5pt solid } .prngen6{ PADDING-RIGHT:0.33em; PADDING-LEFT:0.17em; VERTICAL-ALIGN: BOTTOM; TEXT-ALIGN: CENTER; BORDER-TOP:black 1pt; BORDER-RIGHT:black 0.5pt solid; BORDER-BOTTOM:black 0.5pt solid; BORDER-LEFT:black 1pt } .prngen35{ PADDING-RIGHT:0.33em; PADDING-LEFT:0.17em; VERTICAL-ALIGN: BOTTOM; TEXT-ALIGN: CENTER; BORDER-TOP:black 1pt; BORDER-RIGHT:black 1pt; BORDER-BOTTOM:black 3PT double; BORDER-LEFT:black 1pt } .prngen4{ PADDING-RIGHT:0.33em; PADDING-LEFT:0.17em; VERTICAL-ALIGN: BOTTOM; TEXT-ALIGN: CENTER; BORDER-TOP:black 1pt; BORDER-RIGHT:black 1pt; BORDER-BOTTOM:black 0.5pt solid; BORDER-LEFT:black 1pt } .prngen19{ PADDING-RIGHT:0.17em; PADDING-LEFT:0.17em; VERTICAL-ALIGN: BOTTOM; TEXT-ALIGN: CENTER; BORDER-TOP:black 1pt; BORDER-RIGHT:black 0.5pt solid; BORDER-BOTTOM:black 0.5pt solid; BORDER-LEFT:black 1pt } .prngen30{ PADDING-RIGHT:0.33em; PADDING-LEFT:0.17em; VERTICAL-ALIGN: BOTTOM; TEXT-ALIGN: RIGHT; BORDER-TOP:black 0.5pt solid; BORDER-RIGHT:black 1pt; BORDER-BOTTOM:black 1pt; BORDER-LEFT:black 0.5pt solid } .prngen18{ PADDING-RIGHT:0.17em; PADDING-LEFT:0.17em; VERTICAL-ALIGN: BOTTOM; TEXT-ALIGN: CENTER; BORDER-TOP:black 1pt; BORDER-RIGHT:black 1pt; BORDER-BOTTOM:black 0.5pt solid; BORDER-LEFT:black 1pt } .prngen2{ PADDING-RIGHT:0.33em; PADDING-LEFT:0.17em; VERTICAL-ALIGN: BOTTOM; TEXT-ALIGN: RIGHT; BORDER-TOP:black 1pt; BORDER-RIGHT:black 0.5pt solid; BORDER-BOTTOM:black 0.5pt solid; BORDER-LEFT:black 1pt } .prngen24{ PADDING-RIGHT:0.17em; PADDING-LEFT:0.17em; VERTICAL-ALIGN: BOTTOM; TEXT-ALIGN: RIGHT; BORDER-TOP:black 0.5pt solid; BORDER-RIGHT:black 0.5pt solid; BORDER-BOTTOM:black 1pt; BORDER-LEFT:black 1pt } .prngen20{ PADDING-RIGHT:0.17em; PADDING-LEFT:0.17em; VERTICAL-ALIGN: BOTTOM; TEXT-ALIGN: RIGHT; BORDER-TOP:black 1pt; BORDER-RIGHT:black 0.5pt solid; BORDER-BOTTOM:black 0.5pt solid; BORDER-LEFT:black 1pt } .prngen3{ PADDING-RIGHT:0.33em; PADDING-LEFT:0.17em; VERTICAL-ALIGN: BOTTOM; TEXT-ALIGN: CENTER; BORDER-TOP:black 0.5pt solid; BORDER-RIGHT:black 0.5pt solid; BORDER-BOTTOM:black 0.5pt solid; BORDER-LEFT:black 1pt } .prngen31{ PADDING-RIGHT:0.17em; PADDING-LEFT:0.17em; VERTICAL-ALIGN: BOTTOM; TEXT-ALIGN: CENTER; BORDER-TOP:black 0.5pt solid; BORDER-RIGHT:black 1pt; BORDER-BOTTOM:black 0.5pt solid; BORDER-LEFT:black 1pt } .prngen26{ PADDING-RIGHT:0.17em; PADDING-LEFT:0.17em; VERTICAL-ALIGN: BOTTOM; TEXT-ALIGN: RIGHT; BORDER-TOP:black 0.5pt solid; BORDER-RIGHT:black 0.5pt solid; BORDER-BOTTOM:black 0.5pt solid; BORDER-LEFT:black 1pt } .prngen17{ PADDING-RIGHT:0.17em; PADDING-LEFT:0.17em; VERTICAL-ALIGN: BOTTOM; TEXT-ALIGN: CENTER; BORDER-TOP:black 0.5pt solid; BORDER-RIGHT:black 0.5pt solid; BORDER-BOTTOM:black 0.5pt solid; BORDER-LEFT:black 1pt } .prngen15{ PADDING-RIGHT:0.17em; PADDING-LEFT:0.17em; VERTICAL-ALIGN: BOTTOM; BORDER-TOP:black 1pt; BORDER-RIGHT:black 1pt; BORDER-BOTTOM:black 1pt; BORDER-LEFT:black 1pt } .prngen32{ PADDING-RIGHT:0.17em; PADDING-LEFT:0.17em; VERTICAL-ALIGN: BOTTOM; BORDER-TOP:black 1pt; BORDER-RIGHT:black 1pt; BORDER-BOTTOM:black 1pt; BORDER-LEFT:black 0.5pt solid } .prngen7{ PADDING-RIGHT:0.17em; PADDING-LEFT:0.17em; VERTICAL-ALIGN: BOTTOM; BORDER-TOP:black 1pt; BORDER-RIGHT:black 0.5pt solid; BORDER-BOTTOM:black 1pt; BORDER-LEFT:black 0.5pt solid } .prngen5{ PADDING-RIGHT:0.17em; PADDING-LEFT:0.17em; VERTICAL-ALIGN: BOTTOM; BORDER-TOP:black 1pt; BORDER-RIGHT:black 0.5pt solid; BORDER-BOTTOM:black 0.5pt solid; BORDER-LEFT:black 0.5pt solid } .prngen34{ PADDING-RIGHT:0.17em; PADDING-LEFT:0.17em; VERTICAL-ALIGN: BOTTOM; BORDER-TOP:black 1pt; BORDER-RIGHT:black 1pt; BORDER-BOTTOM:black 3PT double; BORDER-LEFT:black 0.5pt solid } .prngen33{ PADDING-RIGHT:0.17em; PADDING-LEFT:0.17em; VERTICAL-ALIGN: BOTTOM; BORDER-TOP:black 1pt; BORDER-RIGHT:black 1pt; BORDER-BOTTOM:black 0.5pt solid; BORDER-LEFT:black 0.5pt solid } .prngen25{ PADDING-RIGHT:0.17em; PADDING-LEFT:0.17em; VERTICAL-ALIGN: BOTTOM; BORDER-TOP:black 0.5pt solid; BORDER-RIGHT:black 0.5pt solid; BORDER-BOTTOM:black 0.5pt solid; BORDER-LEFT:black 0.5pt solid } .prnpr4{ PADDING-RIGHT:0.33em } .prnrbrb1{ BORDER-RIGHT:black 1pt } .prnbsbls{ BORDER-LEFT:black 0.5pt solid } .prnml4{ MARGIN-TOP:0em; MARGIN-RIGHT:0em; MARGIN-BOTTOM:0em; MARGIN-LEFT:0.33em !IMPORTANT } .prnsbbb0{ BORDER-BOTTOM:black 0pt } .prnpl2{ PADDING-LEFT:0.17em } .prnml8{ MARGIN-TOP:0em; MARGIN-RIGHT:0em; MARGIN-BOTTOM:0em; MARGIN-LEFT:0.67em !IMPORTANT } .prntac{ TEXT-ALIGN: CENTER } .prntar{ TEXT-ALIGN: RIGHT } .prnbbbs{ BORDER-BOTTOM:black 0.5pt solid } .prnbrbrs{ BORDER-RIGHT:black 0.5pt solid } .prnsblb0{ BORDER-LEFT:black 0pt } .prnbcc{ BORDER-COLLAPSE: COLLAPSE; BORDER-TOP:1pt black; BORDER-RIGHT:1pt black; BORDER-BOTTOM:1pt black; BORDER-LEFT:1pt black } .prnsbtb1{ BORDER-TOP:black 1pt } .prncbts{ BORDER-TOP:black 0.5pt solid } .prnrbrb0{ BORDER-RIGHT:black 0pt } .prnpr2{ PADDING-RIGHT:0.17em } .prnsblb1{ BORDER-LEFT:black 1pt } .prnml10{ MARGIN-TOP:0em; MARGIN-RIGHT:0em; MARGIN-BOTTOM:0em; MARGIN-LEFT:0.83em !IMPORTANT } .prnml6{ MARGIN-TOP:0em; MARGIN-RIGHT:0em; MARGIN-BOTTOM:0em; MARGIN-LEFT:0.50em !IMPORTANT } .prnvab{ VERTICAL-ALIGN: BOTTOM } .prnsbbb1{ BORDER-BOTTOM:black 1pt } .prnsbtb0{ BORDER-TOP:black 0pt } Canada NewsWire HIGHLIGHTS Revenues of $250.9 million . Net income of $14.9 million , representing a 56% increase over the fiscal year ended January 31, 2022 . The Corporation's order backlog (1) stood at $376.5 million on January 31, 2023 . TERREBONNE, QC , April 13, 2023 /CNW/ - ADF GROUP INC. ("ADF" or the "Corporation") (TSX: DRX) recorded revenues of $250.9 million during the fiscal year ended January 31, 2023, compared with $280.7 million the previous fiscal year. This decrease in revenues is mainly attributable to the inclusion of high-volume projects with accelerated production schedules that increased the revenues of the previous fiscal year ended January 31, 2022 , but with much lower margins than normally generated by our Corporation. Gross margin, as a percentage of revenues (2) , went from 8.8% for the fiscal year ended January 31, 2022 , to 14.2% for the fiscal year ended January 31, 2023 . This increase, as a percentage of revenues, is mainly due to the projects mentioned above, as well as by internal efficiency improvement generated by the investments to automate fabrication processes at our plant in Terrebonne, Quebec . Adjusted earnings before interest, taxes, depreciation, and amortization (adjusted EBITDA) (3) for the fiscal year ended January 31, 2023, totalled $26.1 million , which is $8.4 million or 47% higher than at the same date a year earlier. For the fiscal year ended January 31, 2023 , ADF posted net income of $14.9 million (or $0.46 per share, basic and diluted) compared with a net income of $9.6 million (or $0.29 per share, basic and diluted) a year earlier. As at January 31, 2023 , the Corporation had a working capital of $65.6 million , 69% more than at the same date a year ago. The Corporation remains in a sound position to continue its ongoing operations and pursue its development projects. As at January 31, 2023 , the Corporation's order backlog (1) stood at $376.5 million , compared with $373.1 million as at January 31, 2022. The majority of projects in hand will be completed progressively by the middle of the fiscal year ending January 31, 2025. Financial Highlights Fiscal Years Ended January 31, 2022 (In thousands of Canadian dollars, and dollars per share) $ $ Revenues 250,890 280,740 Adjusted EBITDA (3) 26,119 17,759 Income before income tax expense 16,854 11,059 Net income for the year 14,935 9,563 — Basic and diluted per share 0.46 0.29 Cash flows from operating activities (2,612) 2,669 (In thousands) Number Number Average number of outstanding shares (basic and diluted, in thousands) 32,640 32,635 __________________________________ 1 The order backlog is an additional financial measure. Refer to the "Non-GAAP Financial Measures and Other Financial Measures" section of this press release for the definition of this indicator. 2 Gross margin, as a percentage of revenues is an additional financial measure. Refer to the "Non-GAAP Financial Measures and Other Financial Measures" section of this press release for the definition of this indicator. 3 Adjusted EBITDA is a non-GAAP financial measure. Refer to the "Non-GAAP Financial Measures and Other Financial Measures" section of this press release for the definition of this indicator. New Financing Agreement On February 10, 2023 , the Corporation reached an agreement with its Canadian financial institution on the terms and conditions amending its Canadian operating credit facility. Once finalized, within the next few weeks, the credit facility will increase from $30.0 million to $40.0 million ; this amount remaining subject to a margination calculation but only when the Corporation draws an amount greater than $20.0 million . The other conditions will remain similar to the current ones. Outlook "ADF closed its fiscal year ended January 31, 2023 with encouraging results, an increase in the order backlog, better margins and a net income 56% higher than that of the previous fiscal year" said Mr. Jean Paschini , Chairman of the Board and Chief Executive Officer. He concluded by pointing out that, "Our major investments in automation over the past two fiscal years have now been completed and allow us to face economic challenges with confidence". Dividend On April 12, 2023 , ADF Group announced the payment of a semi-annual dividend of $0.01 per subordinate voting share and per multiple voting shares, which will be paid on May 17, 2023 , to Shareholders of Record as at April 28, 2023 . Conference Call with Investors A conference call with investors is scheduled for Thursday, April 13, 2023 , at 10 a.m. ( Montreal time) to discuss the results of Corporation's fiscal year ended January 31, 2023 . To join the conference call without operator assistance, you can register with your phone number on https://emportal.ink/3l04Il2 to receive an instant automatic reminder. You can also join the conference call with operator assistance by dialing 1-888-390-0620 a few minutes prior to the conference call scheduled start time. A replay of this conference call will be available from 1:00 p.m. on Thursday, April 13, 2023 , until 11:59 p.m. Thursday, April 20, 2023 , by dialing 1-888-259-6562 , followed by access code 047645 # . The conference call (audio) will also be available at the www.adfgroup.com . Members of the media are invited to join in listening mode. ANNUAL GENERAL MEETING OF SHAREHOLDERS FOR THE FISCAL YEAR ENDED JANUARY 31, 2023 ADF Group Inc. will hold its Annual General Meeting of Shareholders via webcast, on Wednesday, June 7, 2023 , at 11 a.m. (EST). Shareholders' meeting details and webcasting connection instructions will be made available in the weeks preceding the meeting. Results for the first quarter ending April 30, 2023 , will also be disclosed during the Shareholders' meeting. About ADF Group Inc. | ADF Group Inc. is a North American leader in the design and engineering of connections, fabrication, including the application of industrial coatings, and installation of complex steel structures, heavy steel built-ups, as well as in miscellaneous and architectural metals for the non-residential infrastructure sector. ADF Group Inc. is one of the few players in the industry capable of handling highly technically complex mega projects on fast-track schedules in the commercial, institutional, industrial and public sectors. The Corporation operates two fabrication plants and two paint shops, in Canada and in the United States , and a Construction Division in the United States , which specializes in the installation of steel structures and other related products. Forward-Looking Information | This press release contains forward-looking statements reflecting ADF's objectives and expectations. These statements are identified by the use of verbs such as "expect" as well as by the use of future or conditional tenses. By their very nature these types of statements involve risks and uncertainty. Consequently, reality may differ from ADF's expectations. Non-GAAP Financial Measures and Other Financial Measures | Are measures derived primarily from the consolidated financial statements but are not a standardized financial measure under the financial reporting framework used to prepare the Corporation's financial statements. Therefore, readers should be careful not to confuse or substitute them with performance measures prepared in accordance with GAAP. In addition, readers should avoid comparing these non-GAAP financial measures to similarly titled measures provided or used by other issuers. The definition of these indicators and their reconciliation with comparable International Financial Reporting Standards measures is as follows: Adjusted EBITDA Adjusted EBITDA shows the extent to which the Corporation generates profits from operations, without considering the following items: Net financial expenses; Income tax expense ; Foreign exchange losses, and Depreciation and amortization of property, plant and equipment, intangible assets, and right-of-use assets. Net income is reconciled with adjusted EBITDA in the table below: Fiscal Years Ended January 31, 2023 2022 (In thousands of Canadian dollars) $ $ Net income 14,935 9,563 Income tax expense 1,919 1,496 Net financial expenses 1,999 1,174 Amortization 5,323 5,054 Foreign exchange loss 1,943 472 Adjusted EBITDA 26,119 17,759 Gross Margin as a Percentage of Revenues Gross margin as a percentage of revenue indicator is used by the Corporation to assess the level of profitability for a given period based on the project mix for that same period. This indicator is subject to fluctuations in project prices and also in the operational efficiency of the Corporation. The indicator of gross margin as a percentage of revenues results from dividing gross margin by revenues. Order Backlog The order backlog is a measure used by the Corporation to assess future revenue levels. The order backlog includes firm orders obtained by the Corporation, either through a firm contract or a formal notice to proceed confirmed by the client. The order backlog disclosed by the Corporation therefore includes the portion of confirmed contracts that have not been put into production. All amounts are in Canadian dollars unless otherwise specified. CONSOLIDATED STATEMENTS OF FINANCIAL POSITION As at January 31, 2023 2022 (In thousands of Canadian dollars) $ $ ASSETS Current assets Cash and cash equivalents 7,193 7,130 Accounts receivable 90,921 40,424 Current income tax assets 714 1,548 Contract assets 42,541 29,998 Inventories 10,679 9,690 Prepaid expenses and other current assets 2,332 2,312 Total current assets 154,380 91,102 Non-current assets Property, plant and equipment 90,378 83,629 Right-of-use assets 21,848 21,587 Intangible assets 3,640 3,357 Other non-current assets 1,371 1,375 Total assets 271,617 201,050 LIABILITIES Current liabilities Accounts payable and other current liabilities 39,985 34,421 Current income tax liabilities 235 ― Contract liabilities 44,533 13,770 Other current liabilities 964 ― Current portion of lease liabilities 806 841 Current portion of long-term debt 2,258 3,357 Total current liabilities 88,781 52,389 Non-current liabilities Long-term debt 44,927 28,702 Lease liabilities 3,528 3,772 Deferred income tax liabilities 9,240 7,571 Other non-current liabilities 156 166 Total liabilities 146,632 92,600 SHAREHOLDERS' EQUITY Capital stock 68,127 68,120 Contributed surplus 6,435 6,435 Accumulated other comprehensive income 8,107 5,861 Retained income 42,316 28,034 Total shareholders' equity 124,985 108,450 Total liabilities and shareholders' equity 271,617 201,050 CONSOLIDATED STATEMENTS OF INCOME Fiscal Years Ended January 31, 2023 2022 (In thousands of Canadian dollars, except the number of shares and the amounts per share) $ $ Revenues 250,890 280,740 Cost of goods sold 215,321 256,046 Gross Margin 35,569 24,694 Selling and administrative expenses 14,773 11,989 Net financial expenses 1,999 1,174 Foreign exchange loss 1,943 472 18,715 13,635 Income before income tax expense 16,854 11,059 Income tax expense 1,919 1,496 Net income for the fiscal year 14,935 9,563 Earnings per share — Basic and diluted per share 0.46 0.29 Average number of outstanding basic and diluted shares (in thousands) 32,640 32,635 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Fiscal Years Ended January 31, 2023 2022 (In thousands of Canadian dollars) $ $ Net income for the fiscal year 14,935 9,563 Other comprehensive income (loss) : Exchange differences on translation of foreign operations (a) 2,246 (25) Comprehensive income for the fiscal year 17,181 9,538 a)  Will subsequently be reclassified to net income. CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY Capital Stock Contributed Surplus Accumulated Other Comprehensive Income Retained Income Total (In thousands of Canadian dollars) $ $ $ $ $ Balance, February 1, 2021 68,120 6,435 5,886 19,124 99,565 Net income for the fiscal year ― ― ― 9,563 9,563 Other comprehensive income (loss) ― ― (25) ― (25) Comprehensive income (loss) for the fiscal year ― ― (25) 9,563 9,538 Dividends ― ― ― (653) (653) Balance, January 31, 2022 68,120 6,435 5,861 28,034 108,450 Capital Stock Contributed Surplus Accumulated Other Comprehensive Income Retained Income Total (In thousands of Canadian dollars) $ $ $ $ $ Balance, February 1, 2022 68,120 6,435 5,861 28,034 108,450 Net income for the fiscal year ― ― ― 14,935 14,935 Other comprehensive income ― ― 2,246 ― 2,246 Comprehensive income for the fiscal year ― ― 2,246 14,935 17,181 Dividends ― ― ― (653) (653) Shares Issuance 7 ― ― ― 7 Balance, January 31, 2023 68,127 6,435 8,107 42,316 124,985 CONSOLIDATED STATEMENTS OF CASH FLOWS Fiscal Years Ended January 31, 2023 2022 (In thousands of Canadian dollars) $ $ OPERATING ACTIVITIES Net income for the fiscal year 14,935 9,563 Non-cash items: Amortization of property, plant and equipment 4,118 3,543 Amortization of right-of-use assets 835 1,013 Amortization of intangible assets 370 498 Gain on disposal of property, plant and equipment (802) (2,111) Unrealized loss on derivative financial instruments 968 513 Unrealized foreign exchange (gain) loss (1,158) 705 Share-based compensation 724 361 Income tax expense 1,919 1,496 Government grants (1,280) ― Net financial expenses 1,999 1,174 Others (250) (148) Net income adjusted for non-cash items 22,378 16,607 Change in non-cash working capital items (1) (25,850) (12,511) Income tax recovery (paid) 860 (1,427) Cash flows (used in) from operating activities (2,612) 2,669 INVESTING ACTIVITIES Acquisition of property, plant and equipment (11,463) (21,477) Acquisition of intangible assets (698) (589) Others 80 77 Cash flows used in investing activities (12,081) (21,989) FINANCING ACTIVITIES Issuance of long-term debt 20,000 30,000 Repayment of long-term debt (2,216) (17,878) Payment of lease liabilities (804) (963) Dividends paid (653) (653) Interest paid (2,177) (988) Others 7 (316) Cash flows from financing activities 14,157 9,202 Impact of fluctuations in foreign exchange rate on cash flow 599 (558) Net change in cash and cash equivalents during the fiscal year 63 (10,676) Cash, and cash equivalents, beginning of fiscal year 7,130 17,806 Cash and cash equivalents, end of fiscal year 7,193 7,130 (1) The following table sets out in detail the components of the "Change in non-cash working capital items": Fiscal Years Ended January 31, 2023 2022 (In thousands of Canadian dollars) $ $ Accounts receivable (48,647) 20,342 Contract assets (12,011) (21,099) Inventories (550) (2,714) Prepaid expenses and other current assets 103 2,382 Accounts payable and other current liabilities 5,478 (2,041) Contract liabilities 29,787 (9,366) Others (10) (15) Change in non-cash working capital items (25,850) (12,511) Segmented Information The Corporation operates one operational sector, being, the non-residential construction industry, primarily in the United States and Canada . This sector includes the following areas of expertise: the design and engineering of connections, fabrication, including industrial coating, and installation of complex steel structures, heavy steel built-ups, as well as miscellaneous and architectural metalwork. Fiscal Years Ended January 31, 2023 2022 (In thousands of Canadian dollars) $ $ Revenues Canada 36,913 39,810 United States 213,977 240,930 250,890 280,740 As at January 31, 2023 2022 (In thousands of Canadian dollars) $ $ Non-current assets (1) Canada 74,424 68,907 United States 42,813 41,041 117,237 109,948 (1) The non-current assets mainly include property, plant and equipment, intangible assets, right-of-use assets, investment tax credits and others non-current assets. Revenues from external clients were allocated to each country on the basis of the project's location. During the fiscal year ended January 31, 2023, 62% of the Corporation's revenues was realized with three (3) clients, each representing 10% and more of its revenues (86% with three (3) clients during the fiscal year ended January 31, 2022 ). The following table presents the breakdown of revenues for each of these clients: Fiscal Years Ended January 31, 2023 2022 (In thousands of Canadian dollars) $ $ Client A (1) ― 168,950 Client B (1) 57,386 40,610 Client C (2) ― 31,381 Client D (1) 46,069 ― Client E (1) 52,886 ― 156,341 240,941 (1) From the United States (2) From Canada SOURCE ADF Group Inc. View original content: http://www.newswire.ca/en/releases/archive/April2023/13/c6803.html