SAINT-ÉPHREM-DE-BEAUCE, Québec, June 13, 2018 (GLOBE NEWSWIRE) — Sigma Industries Inc. (TSX-V:SSG), a manufacturing company specializing in the production of composite components, announces results for the fourth quarter and fiscal year ended April 28, 2018.
“Sigma Industries Inc. recorded higher sales, EBITDA and net income in fiscal 2018. Revenues increased 7.9% to $59.0 million, mainly attributable to higher sales in the bus and industrial markets. EBITDA increased 37% to reach $5.0 million, up from $3.7 million last year. This increase is primarily attributable to higher sales, efficiency gains as well as a foreign exchange gain, partially offset by increased labour costs due to a labour shortage. As a result, we concluded fiscal 2018 with net income of $3.2 million, or $0.27 per basic share, as compared to $1.8 million, or $0.15 per basic share, last year.
During the year, we signed an important long-term contract to manufacture components for a new vehicle program and also closed a financing for the investment required for this contract. After the end of the fiscal year, we acquired a facility in Surgoinsville, Tennessee in order to expand our operations in the U.S. The new facility is expected to be operational by the end of the second quarter of calendar 2019.
Looking forward we are excited about the future. Over the next few years, our capital expenditures will increase as we will make investments to modernize our existing facilities and equipment, prepare for the important long-term contract announced last December and expand our operations in the U.S. In parallel, we will continue to look for new ways to increase our productivity,” said Denis Bertrand, President and Chief Executive Officer of Sigma Industries.
FOURTH QUARTER RESULTS
Revenues for the quarter ended April 28, 2018 reached $15.7 million, up from $15.5 million in the quarter ended April 29, 2017. This slight increase mainly reflects higher sales to the heavy-duty truck and industrial markets, partially offset by lower sales to the bus, agriculture and wind energy markets.
Earnings before interest, taxes, depreciation and amortization (“EBITDA”) amounted to $892,223, or 5.7% of revenues, in the fourth quarter of fiscal 2018, versus $485,086, or 3.1% of revenues, in the fourth quarter of fiscal 2017. This increase reflects higher sales, a more favorable product mix, increased efficiency gains and a favourable foreign exchange variation as compared to last year.
Sigma Industries concluded the fourth quarter of fiscal 2018 with net income of $1,002,925, or $0.09 per basic share ($0.03 per diluted share), versus net income of $645,749, or $0.05 per basic share ($0.02 per diluted share), in the fourth quarter of fiscal 2017.
FISCAL 2018 RESULTS
For the fiscal year ended April 28, 2018, revenues reached $59.0 million, versus $54.6 million in the fiscal year ended April 29, 2017. EBITDA amounted to $5.0 million, up from $3.7 million a year earlier. Net income totalled $3.2 million, or $0.27 per basic share (0.11 per diluted share), versus $1.8 million, or $0.15 per basic share ($0.07 per diluted share) last year.
|SELECTED FINANCIAL INFORMATION|
|Consolidated results of operations||Three months ended||Fiscal years ended|
|(unaudited, in thousands of Canadian dollars except per-share amounts)||April 28,
|per share (basic)||0.09||0.05||0.27||0.15|
|per share (diluted)||0.03||0.02||0.11||0.07|
|Reconciliation of EBITDA and net income
(unaudited, in thousands of Canadian dollars)
|Three months ended||Fiscal years ended|
|Income tax recovery||(650||)||(800||)||(250||)||(800||)|
|Depreciation and amortization||289||374||1,143||1,417|
|Write-off of financial expenses and fees||–||–||–||192|
|Consolidated balance sheet data||As at|
|(in thousands of Canadian dollars)||April 28, 2018||April 29, 2017|
NON-IFRS FINANCIAL MEASURES
The information in this press release includes certain measures that are not financial measures prescribed under IFRS. Sigma Industries uses earnings before interest, taxes, depreciation and amortization (“EBITDA”) in assessing its financial performance. As there is no generally accepted method of calculating these financial measures, they may not be comparable to similar measures reported by other companies. EBITDA is obtained by adding net income (loss) plus income taxes, financial expenses, as well as depreciation and amortization. This measure does not represent cash flow available for repayment of debt, payment of dividends, reinvestment or other discretionary uses, and should not be considered in isolation or as a substitute for other measures of performance calculated according to IFRS.
ABOUT SIGMA INDUSTRIES
Sigma Industries Inc. (TSX-V:SSG), a manufacturing company specializing in the production of composite components, has two operating subsidiaries and employs 275 people. The Company is active in the heavy-duty truck, coach, transit, machinery and wind energy markets. Sigma sells its products to original equipment manufacturers and distributors in the United States, Canada and Europe.
This press release contains certain forward-looking statements about the Company. Such forward-looking statements are dependent on a number of factors and are subject to risks and uncertainties. Actual results may differ from those expected. The information contained in this press release is dated June 13, 2018, the date on which management approved the press release. Management does not assume any obligation to update or revise any forward-looking statements, whether as a result of new information or future events, except as required by law.
Note to readers: Complete audited consolidated financial statements and Management’s Discussion & Analysis of Financial Position and Operating Results have been posted on SEDAR and are available at www.sedar.com.
Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
|Sigma Industries Inc.|
|President and Chief Executive Officer|