Sigma Industries reports fiscal 2015 first quarter results

SAINT-ÉPHREM-DE-BEAUCE, QC, Sept. 23, 2014 /CNW Telbec/ - Sigma Industries Inc. (TSX-V: SSG), a manufacturing company specializing in the production of composite components, announces results for the first quarter of its 2015 fiscal year ended July 26, 2014. The results reflect the sale of the PNS Tech division effective October 1, 2013 and in accordance with IFRS, this division has been presented as discontinued operations in the Company's unaudited condensed interim consolidated financial statements.

"Operating results for the first quarter of fiscal 2015 provided Sigma Industries with initial benefits stemming from our initiatives to focus on the closed mould manufacturing process," said Denis Bertrand, President and Chief Executive Officer of Sigma Industries. "Sales rose by 11.2% driven by new manufacturing contracts for industrial products and bus components. The favourable impact of this greater business activity on the absorption of fixed costs, as well as better productivity and efficiency resulting from the transferred production, led to a significant increase in adjusted EBITDA".

FIRST QUARTER RESULTS
Revenues from continuing operations for the first quarter of fiscal 2015 totalled $15.0 million, up 11.2% from $13.5 million in the first quarter of fiscal 2014. This increase is mainly attributable to a rise of $1.1 million in sales of industrial products reflecting the addition of a new customer in the United States. In addition, sales to the bus industry grew $673,923 as a result of a new manufacturing contract, while sales to the wind energy market rose by $606,933 resulting from increased demand from an important customer. Conversely, sales to the heavy-duty truck market declined $1.0 million reflecting the gradual phase out of a customer's heavy-duty truck model.

Sigma Industries recorded adjusted earnings before interest, taxes, depreciation and amortization ("EBITDA") from continuing operations of $807,653 in the first quarter of fiscal 2015, versus a negative adjusted EBITDA of ($76,974) in the first quarter of last year. This increase is attributable to initial benefits stemming from the specialization in closed mould manufacturing, as well as the favourable effect of higher business activity on the absorption of fixed overhead costs. The Company concluded the first quarter of fiscal 2015 with net income from continuing operations of $57,518, or $0.00 per basic and diluted share, versus a net loss from continuing operations of ($816,770), or ($0.07) per basic and diluted share last year.

Subsequent to the end of the first quarter, on August 20, 2014, the Company renewed its credit facility and a bank loan with its main lender. The new maturing date on the credit facility is August 31, 2015. Also, on August 26, 2014, the Company received the final portions of a secured loan and of secured convertible debentures as part of a private placement. These sources of funds show the confidence that Sigma Industries' lenders have in its business plan and provide the Company with the flexibility to proceed with its execution.

 

SELECTED FINANCIAL INFORMATION

 

Consolidated results of operations		Three months ended
(unaudited, in thousands of Canadian dollars except per-share amounts)		July 26, 2014	July 27, 2013
		$	$
Revenues from continuing operations		15,000	13,493
Adjusted EBITDA from continuing operations		808	(77)
Net income (loss) from continuing operations		58	(817)
	Per share (basic and diluted)	0.00	(0.07)
Net income (loss)		58	(783)
	Per share (basic and diluted)	0.00	(0.07)

 

Reconciliation of EBITDA, adjusted EBITDA and net income (unaudited, in thousands of Canadian dollars)	Three months ended
	July 26, 2014	July 27, 2013
	$	$
Net income (loss)	58	(783)
MINUS:
Net income (loss) from discontinued operations	-	34
Net income (loss) from continuing operations	58	(817)
PLUS (less):
Income tax expense (recovery)	(10)	-
Depreciation and amortization	312	314
Financial expenses	448	426
Adjusted EBITDA from continuing operations	808	(77)
PLUS (less):
Foreign exchange loss (gain)	104	(2)
Loss (gain) on disposal of property, plant and equipment	-	-
EBITDA from continuing operations	912	(79)

 

Consolidated balance sheet data	As at
(in thousands of Canadian dollars)	July 26, 2014	April 26, 2014
	$	$
Total assets	25,684	25,344
Total liabilities	25,815	25,854
Shareholders' equity	(131)	(510)

 

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-V: SSG), a manufacturing company specializing in the production of composite components, has two operating subsidiaries and employs 325 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.

FORWARD-LOOKING STATEMENTS
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, 2014, 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.

 

SOURCE SIGMA INDUSTRIES INC.

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