Sigma Industries Reports Fiscal 2016 First Quarter Results
By Marketwired News
By Marketwired News
SAINT-ÉPHREM-DE-BEAUCE, QUEBEC–(Marketwired – Sept. 23, 2015) – Sigma Industries Inc. (TSX VENTURE:SSG), a manufacturing company specializing in the production of composite components, announces results for the first quarter of it 2016 fiscal year ended August 1, 2015.
“Sigma Industries continued to benefit from favourable market conditions in the first quarter of fiscal 2016. Revenues rose nearly 10% driven by the strength of the heavy-duty truck market while greater volume and our specialization in closed mould manufacturing enhanced profitability. Looking ahead, we believe we can achieve more efficiency gains and cost reductions, as we continually seek ways to enhance the work flow throughout the organization. These initiatives, combined with sustained strength in our main markets, should allow Sigma Industries to capture further business opportunities and to leverage its proven expertise in manufacturing innovative, high-quality products,” said Denis Bertrand, President and Chief Executive Officer of Sigma Industries.
FIRST QUARTER RESULTS
Revenues for the first quarter of fiscal 2016 totalled $16.5 million, up 9.9% from $15.0 million in the first quarter of fiscal 2015. This increase mainly reflects a rise of $2.4 million in sales to the heavy-duty truck market due to greater industry shipments and a higher year-over-year conversion rate applied to U.S. dollar denominated sales as a result of currency fluctuations. These factors were partially offset by a decline of $1.1 million in sales of industrial products due to a year-over-year reduction in tooling sales related to that product line.
Sigma Industries recorded adjusted earnings before interest, taxes, depreciation and amortization (“EBITDA”) of $1.0 million, or 6.3% of revenues, in the first quarter of fiscal 2016, up from $807,653, or 5.4% of revenues, a year earlier. This variation reflects benefits stemming from the specialization in closed mould manufacturing following the transfer of U.S. production to René’s facilities early in fiscal 2015, the effect of a greater business activity on the absorption of fixed overhead costs, and the net effect of a higher year-over-year conversion rate applied to U.S. dollar denominated sales and costs. As a result, the Company concluded the first quarter of fiscal 2016 with net income of $286,915, or $0.02 per basic and diluted share, compared with $57,518, or $0.00 per basic and diluted share, a year earlier.
SELECTED FINANCIAL INFORMATION
|Consolidated results of operations||Three months ended|
|(unaudited, in thousands of Canadian dollars except per-share amounts)||August 1, 2015||July 26, 2014|
|Per share (basic and diluted)||0.02||0.00|
|Reconciliation of EBITDA, adjusted EBITDA and net income|
(unaudited, in thousands of Canadian dollars)
|Three months ended|
|August 1, 2015||July 26, 2014|
|Income tax expense (recovery)||1||(10||)|
|Depreciation and amortization||352||312|
|Foreign exchange loss||42||104|
|Loss (gain) on disposal of property, plant and equipment||–||–|
|Consolidated balance sheet data||As at|
|(in thousands of Canadian dollars)||August 1, 2015||May 2, 2015|
NON-IFRS FINANCIAL MEASURES
The information in this press release includes certain measures that are not financial measures prescribed under IFRS. Sigma Industries uses adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) and 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. Adjusted EBITDA is earnings before interest, income taxes, depreciation, amortization and other non-operating expenses and revenues, EBITDA consists of adjusted EBITDA plus (minus) foreign exchange loss (gain) and loss (gain) on disposal of property, plant and equipment. These measures do 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 VENTURE:SSG), a manufacturing company specializing in the production of composite components, has two operating subsidiaries and employs 375 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 September 23, 2015, 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 unaudited condensed interim 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