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ADF GROUP INC. ANNOUNCES THE RESULTS FOR THE FISCAL YEAR ENDED JANUARY 31, 2025
ADF GROUP INC. ANNOUNCES THE RESULTS FOR THE FISCAL YEAR ENDED JANUARY 31, 2025 Canada ...
About this update from Adf Group Inc.
ADF GROUP INC. 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BORDER-TOP:1pt black; BORDER-RIGHT:1pt black; BORDER-BOTTOM:1pt black; BORDER-LEFT:1pt black } .prntal{ TEXT-ALIGN: LEFT } .prnvab{ VERTICAL-ALIGN: BOTTOM } .prnbsbls{ BORDER-LEFT:black 0.5pt solid } Canada NewsWire HIGHLIGHTS Revenues of $339.6 million , up by $8.6 million from the previous fiscal year. Net income of $56.8 million , up by $19.2 million or 50.9% from the previous fiscal year. Cash flow from operations of $55.1 million for the fiscal year ended January 31, 2025 . The Corporation's order backlog (1) totalled $293.1 million as at January 31, 2025 , excluding the new orders totalling $120.0 million announced on February 26, 2025 . TERREBONNE, QC , April 10, 2025 /CNW/ - ADF GROUP INC. ("ADF" or the "Corporation") (TSX: DRX) recorded revenues of $339.6 million during the fiscal year ended January 31, 2025, compared with $331.0 million the previous fiscal year. Gross margin, as a percentage of revenues (1) , went from 22.0% for the fiscal year ended January 31, 2024 , to 31.6% for the fiscal year ended January 31, 2025 . This variation as a percentage of revenues is explained by the level of fabrication activity compared to the previous fiscal year, thus generating a better absorption of fixed costs and also by the improvement in internal efficiency gained by the investments in automation made in recent years at ADF's plant in Terrebonne, Quebec . Adjusted earning before interest, taxes, depreciation, and amortization (2) (adjusted EBITDA) for the fiscal year ended January 31, 2025, totalled $91.3 million , which is $35.4 million or 63.2% higher than at the same date a year earlier. For the fiscal year ended January 31, 2025 , ADF posted net income of $56.8 million ( $1.84 per share basic and diluted) compared with net income of $37.6 million ( $1.15 per share, basic and diluted) a year earlier. As at January 31, 2025 , the Corporation had a working capital (1) of $109.2 million , practically unchanged from the same date a year earlier. In addition, the Corporation generated cash flow from operating activities totalling $55.1 million during the fiscal year ended January 31, 2025 . The Corporation closed the fiscal year ended January 31, 2025 , with $60.0 million in liquidity compared to $72 .4 million on January 31, 2024 , including the full buyback for cancellation of 3,487,589 Subordinated Voting Shares, for a total cash consideration of $54.6 million during the fiscal year ended January 31, 2025 . As at January 31, 2025 , the Corporation's order backlog (1) stood at $293.1 million excluding the new orders totaling $120.0 million announced on February 26, 2025 , compared with $510.9 million as at January 31, 2024. The majority of projects in hand will be progressively carried out by the second semester of the fiscal year ending January 31, 2027. Financial Highlights Fiscal Years Ended January 31, 2025 2024 (In thousands of Canadian dollars, and dollars per share) $ $ Revenues 339,632 331,023 Adjusted EBITDA (2) 91,289 55,939 Income before income taxes expense 78,407 46,406 Net income for the fiscal year 56,790 37,622 —    Basic and diluted per share 1.84 1.15 Cash flows from operating activities 55,056 77,860 (In thousands) Number Number Average number of outstanding shares (basic and diluted) 30,852 32,640 The order backlog, gross margin as a percentage of revenues and working capital are additional financial measures. Refer to the "Non-IFRS and Other Financial Measures" section herein for the definition of these indicators. Adjusted EBITDA is a non-IFRS financial measure.  Refer to the "Non-IFRS Financial Measures and Other Financial Measures" section of this press release for the definition of this indicator Work-Sharing Program Given the projects in the pipeline and the fabrication schedule, the Corporation has applied for and will soon received authorization from Service Canada to implement a Work-Sharing program for some of its employees at its fabrication plant in Terrebonne, Quebec . The program would come into effect on April 14, 2025 , and would allow some employees to benefit from the Employment Insurance program to compensate for reduced working hours. This program, as already discussed with the union executive, will be submitted to a vote of its unionized employees on April 12, 2025 . This program would allow ADF to closely manage its costs until the fabrication phase of the recently announced projects begins. As a result, approximately 200 employees would see their working hours reduced between 50% and 60% ; hours which would be compensated by the government program. Outlook "Although we announced $120.0 million in new contracts at the very beginning of the current fiscal year, the uncertainty caused by the imposition of U.S. tariffs is delaying the conclusion of new commercial agreements, and in this context, we are compelled to analyze certain contingency measures, including the implementation of the Work-Sharing Program at our plant located in Terrebonne, Quebec . In this sense, we can already confirm that revenues for the fiscal year ending January 31, 2026 , will be down, mainly in the first quarters, and that our margins will also be affected by the direct and indirect impacts of U.S. tariffs," said Mr. Jean Paschini , Chairman of the Board of Directors and Chief Executive Officer. "Rest assured, as ADF has always done for nearly 70 years now, that our decisions will be made based on the Corporation's continued sound and prudent growth," concluded Mr. Paschini. Dividend On April 9, 2025 , ADF Group announced the payment of a semi-annual dividend of $0.02 per subordinate voting share and per multiple voting shares, which will be paid on May 15, 2025 , to Shareholders of Record as at April 24, 2025 . Conference Call with Investors A conference call with investors is scheduled for Thursday, April 10, 2025 , at 10 a.m. ( Montreal time) to discuss the results of fiscal year ended January 31, 2025 . To join the conference call without operator assistance, you can register with your phone number on https://emportal.ink/42IwHZF to receive an instant automatic reminder. You can also join the conference call with operator assistance by dialing 1-800-990-4777 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 April 10, 2025 , until April 17, 2025 , by dialing 1-888-660-6345 , followed by access code 49276 # . 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, 2025 ADF Group Inc.'s Annual Meeting of Shareholders will be held on: Date:           June 10, 2025 Time:           11 a.m. Location:     Imperia Hotel and Suites 2935 de La Pinière Boulevard, Terrebonne, Quebec Results for the first quarter ended April 30, 2025 , will also be released at the Annual Meeting of Shareholders. 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-IFRS 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 IFRS. In addition, readers should avoid comparing these non-IFRS 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 issued by the International Accounting Standards Board ("IFRS Accounting Standards") 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 taxes 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, 2025 2024 (In thousands of Canadian dollars) $ $ Net income 56,790 37,622 Income taxes expense 21,617 8,784 Net financial expenses 1,116 2,573 Amortization 6,160 5,800 Foreign exchange loss 5,606 1,160 Adjusted EBITDA 91,289 55,939 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. Working Capital The working capital indicator is used by the Corporation to assess whether current assets are sufficient to meet current liabilities. It is therefore equal to current assets, less current liabilities. All amounts are in Canadian dollars unless otherwise specified. CONSOLIDATED STATEMENTS OF FINANCIAL POSITION As at January 31, 2025 2024 (In thousands of Canadian dollars) $ $ ASSETS Current assets Cash and cash equivalents 59,983 72,379 Accounts receivable 83,910 77,844 Current income taxes assets 1,586 115 Contract assets 26,491 44,862 Inventories 13,489 13,534 Investment taxes credit 834 3,112 Prepaid expenses and other current assets 3,271 3,730 Total current assets 189,564 215,576 Non-current assets Property, plant and equipment 91,886 86,615 Right-of-use assets 22,119 21,173 Intangible assets 4,328 3,925 Deferred income tax assets ― 266 Other non-current assets ― 1,050 Total assets 307,897 328,605 LIABILITIES Current liabilities Accounts payable and other current liabilities 50,236 55,441 Current income taxes liabilities 6,454 ― Contract liabilities 11,484 46,168 Derivative financial instruments 7,198 ― Current portion of lease liabilities 821 827 Current portion of long-term debt 4,177 3,040 Total current liabilities 80,370 105,476 Non-current liabilities Long-term debt 38,208 42,138 Lease liabilities 2,423 2,839 Deferred income taxes liabilities 17,449 15,876 Other non-current liabilities 135 146 Total liabilities 138,585 166,475 SHAREHOLDERS' EQUITY Capital stock 61,754 68,127 Contributed surplus 6,179 6,435 Accumulated other comprehensive income 15,536 8,283 Retained income 85,843 79,285 Total shareholders' equity 169,312 162,130 Total liabilities and shareholders' equity 307,897 328,605 CONSOLIDATED STATEMENTS OF INCOME Fiscal Years Ended January 31, 2025 2024 (In thousands of Canadian dollars, except the number of shares and the amounts per share) $ $ Revenues 339,632 331,023 Cost of goods sold 232,391 258,102 Gross Margin 107,241 72,921 Selling and administrative expenses 22,112 22,782 Net financial expenses 1,116 2,573 Foreign exchange loss 5,606 1,160 28,834 26,515 Income before income taxes expense 78,407 46,406 Income taxes expense 21,617 8,784 Net income for the fiscal year 56,790 37,622 Earnings per share —      Basic and diluted per share 1.84 1.15 Weighted average number of outstanding basic and diluted shares (in thousands) 30,852 32,640 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Fiscal Years Ended January 31, 2025 2024 (In thousands of Canadian dollars) $ $ Net income for the fiscal year 56,790 37,622 Other comprehensive income (loss): Exchange differences on translation of foreign operations (a) 7,253 176 Comprehensive income for the fiscal year 64,043 37,798 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, 2023 68,127 6,435 8,107 42,316 124,985 Net income for the fiscal year ― ― ― 37,622 37,622 Other comprehensive income ― ― 176 ― 176 Comprehensive income for the fiscal year ― ― 176 37,622 37,798 Dividends ― ― ― (653) (653) Balance, January 31, 2024 68,127 6,435 8,283 79,285 162,130 Capital Stock Contributed Surplus Accumulated Other Comprehensive Income Retained Income Total (In thousands of Canadian dollars) $ $ $ $ $ Balance, February 1, 2024 68,127 6,435 8,283 79,285 162,130 Net income for the fiscal year ― ― ― 56,790 56,790 Other comprehensive income ― ― 7,253 ― 7,253 Comprehensive income for the fiscal year ― ― 7,253 56,790 64,043 Repurchase and cancellation of shares (6,373) (256) ― (49,308) (55,937) Dividends ― ― ― (924) (924) Balance, January 31, 2025 61,754 6,179 15,536 85,843 169,312 CONSOLIDATED STATEMENTS OF CASH FLOWS Fiscal Years Ended January 31, 2025 2024 (In thousands of Canadian dollars) $ $ OPERATING ACTIVITIES Net income for the fiscal year 56,790 37,622 Non-cash items: Amortization of property, plant and equipment 4,917 4,612 Amortization of right-of-use assets 745 753 Amortization of intangible assets 498 435 Loss (gain) on derivative financial instruments 7,403 (1,168) Non-cash foreign exchange gain (5,298) (176) Share-based compensation 1,386 4,576 Income taxes expense 21,617 8,784 Investment tax credit (1,601) ― Net financial expenses 1,116 2,573 Interest income 2,590 1,363 Others (362) (583) Net income adjusted for non-cash items 89,801 58,791 Change in non-cash working capital items (1) (24,855) 19,162 Income taxes paid (9,890) (93) Cash flows from operating activities 55,056 77,860 INVESTING ACTIVITIES Acquisition of property, plant and equipment (8,283) (5,768) Acquisition of intangible assets (810) (720) Others 384 222 Cash flows used in investing activities (8,709) (6,266) FINANCING ACTIVITIES Repurchase and cancellation of shares (54,574) ― Repayment of the long-term debt (3,076) (2,296) Payment of lease liabilities (700) (686) Dividends paid (924) (653) Interest paid (2,795) (3,053) Cash flows used in financing activities (62,069) (6,688) Impact of fluctuations in foreign exchange rate on cash and cash equivalents 3,326 280 Net change in cash and cash equivalents during the fiscal year (12,396) 65,186 Cash, and cash equivalents, beginning of fiscal year 72,379 7,193 Cash and cash equivalents, end of fiscal year 59,983 72,379 (1) The following table sets out in detail the components of the "Change in non-cash working capital items": Fiscal Years Ended January 31, 2025 2024 (In thousands of Canadian dollars) $ $ Accounts receivable 159 13,589 Contract assets 20,210 (2,217) Inventories 456 (2,849) Prepaid expenses and other current assets 118 (1,213) Accounts payable and other current liabilities (9,398) 10,749 Contract liabilities (36,389) 1,113 Others (11) (10) Change in non-cash working capital items (24,855) 19,162 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, 2025 2024 (In thousands of Canadian dollars) $ $ Revenues Canada 40,836 36,060 United States 298,796 294,963 339,632 331,023 As at January 31, 2025 2024 (In thousands of Canadian dollars) $ $ Non-current assets (1) Canada 68,624 69,359 United States 49,709 43,404 118,333 112,763 (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, 2025, 78% of the Corporation's revenues was realized with two (2) clients, each representing 10% and more of its revenues (69% with four (4) clients during the fiscal year ended January 31, 2024 ). The following table presents the breakdown of revenues for each of these clients: Fiscal Years Ended January 31, 2025 (1) 2024 (1) (In thousands of Canadian dollars) $ $ Client A ― 45,739 Client B 170,351 ― Client C ― 42,086 Client D ― 92,240 Client E 93,383 48,723 263,734 228,788 (1) From the United States. SOURCE ADF Group Inc. View original content to download multimedia: http://www.newswire.ca/en/releases/archive/April2025/10/c0659.html