We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Velan Inc | TSX:VLN | Toronto | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.23 | 3.97% | 6.03 | 5.77 | 5.91 | 5.92 | 5.92 | 5.92 | 400 | 22:00:00 |
Highlights:
Bruno Carbonaro, CEO and President of Velan Inc., said, “I am very pleased to announce our strong results this quarter. Our quarterly sales of $110.0 million yielded a gross margin of 32.6% and brought our year-to-date sales to $286.4 million, which represents our highest sales volume since fiscal year 2016. The sales volume was achieved thanks to the delivery of large orders dedicated to the petrochemical and oil and gas markets by our North American and Italian operations. Our backlog2 remains high at $543.0 million, and our book-to-bill ratio2 remains at an even 1.00 when we consider the nine-month period.
On the Covid-19 front, we took the necessary measures in all our subsidiaries. The fifth wave is challenging for us, especially in Europe and North America, and we are taking all the necessary precautions to ensure our employees’ safety and wellbeing.
We are now shifting our focus to our fourth quarter, where we will continue to build on the momentum from the last two quarters.”
Financial Highlights
Three-month periods ended | Nine-month periods ended | |||
(thousands of U.S. dollars, excluding per share amounts) | November 30, 2021 | November 30, 2020 | November 30, 2021 | November 30, 2020 |
Sales | $109,971 | $71,560 | $286,393 | $216,553 |
Gross profit | 35,861 | 22,022 | 87,246 | 57,467 |
Gross profit % | 32.6% | 30.8% | 30.5% | 26.5% |
Net income1 | 4,507 | 9,527 | 4,449 | 2,529 |
Net income1 per share – basic and diluted | 0.21 | 0.44 | 0.21 | 0.12 |
EBITDA2 | 13,291 | 13,784 | 23,007 | 13,925 |
EBITDA2 per share – basic and diluted | 0.62 | 0.64 | 1.07 | 0.65 |
Third Quarter Fiscal 2022 (unless otherwise noted, all amounts are in U.S. dollars and all comparisons are to the third quarter of fiscal 2021):
First nine months Fiscal 2022 (unless otherwise noted, all amounts are in U.S. dollars and all comparisons are to the first nine months of fiscal 2021):
Dividend
At the end of fiscal 2020, the Board of Directors deemed appropriate to suspend the quarterly dividend.
Conference call
Financial analysts, shareholders, and other interested individuals are invited to attend the third quarter conference call to be held on Thursday, January 13, 2022, at 11:00 a.m. (EDT). The toll free call-in number is 1-800-954-0653, access code 22014449. Live content to support the discussion will be presented to participants at the following link for the duration of the call: https://cc.callinfo.com/r/1f7s6438qq8sv&eom. A recording of this conference call will be available for seven days at 1-416-626-4100 or 1-800-558-5253, access code 22014449.
About Velan
Founded in Montreal in 1950, Velan Inc. (www.velan.com) is one of the world’s leading manufacturers of industrial valves, with sales of US$302.1 million in its last reported fiscal year. The Company employs close to 1,700 people and has manufacturing plants in 9 countries. Velan Inc. is a public company with its shares listed on the Toronto Stock Exchange under the symbol VLN.
Safe harbour statement
This news release may include forward-looking statements, which generally contain words like “should”, “believe”, “anticipate”, “plan”, “may”, “will”, “expect”, “intend”, “continue” or “estimate” or the negatives of these terms or variations of them or similar expressions, all of which are subject to risks and uncertainties, which are disclosed in the Company’s filings with the appropriate securities commissions. While these statements are based on management’s assumptions regarding historical trends, current conditions and expected future developments, as well as other factors that it believes are reasonable and appropriate in the circumstances, no forward-looking statement can be guaranteed and actual future results may differ materially from those expressed herein. The Company disclaims any intention or obligation to update or revise any forward-looking statements contained herein whether as a result of new information, future events or otherwise, except as required by the applicable securities laws. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
Non-IFRS and supplementary financial measures
In this press release, the Company has presented measures of performance or financial condition which are not defined under IFRS (“non-IFRS measures”) and are, therefore, unlikely to be comparable to similar measures presented by other companies. These measures are used by management in assessing the operating results and financial condition of the Company and are reconciled with the performance measures defined under IFRS. Company has also presented supplementary financial measures which are defined at the end of this report. Reconciliation and definition can be found on the next page.
Earnings (loss) before interest, taxes, depreciation and amortization ("EBITDA")
Three-month periods ended | Nine-month periods ended | |||
(thousands, except amount per shares) | November 30, 2021$ | November 30, 2020$ | November 30, 2021$ | November 30, 2020$ |
Net income1 | 4,507 | 9,527 | 4,449 | 2,529 |
Adjustments for: | ||||
Depreciation of property, plant and equipment | 2,382 | 2,541 | 7,190 | 7,516 |
Amortization of intangible assets | 556 | 674 | 1,565 | 1,868 |
Finance costs – net | 619 | 161 | 1,674 | 523 |
Income taxes | 5,227 | 881 | 8,129 | 1,489 |
EBITDA | 13,291 | 13,784 | 23,007 | 13,925 |
EBITDA per share | ||||
- Basic and diluted | 0.62 | 0.64 | 1.07 | 0.65 |
The term “EBITDA” is defined as net income or loss attributable to Subordinate and Multiple Voting Shares plus depreciation of property, plant & equipment, plus amortization of intangible assets, plus net finance costs plus income tax provision. The terms “EBITDA per share” is obtained by dividing EBITDA by the total amount of subordinate and multiple voting shares. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.
Definitions of supplementary financial measures
The term “Net new orders” or “bookings” is defined as firm orders, net of cancellations, recorded by the Company during a period. Bookings are impacted by the fluctuation of foreign exchange rates for a given period. The measure provides an indication of the Company’s sales operation performance for a given period as well as well as an expectation of future sales and cash flows to be achieved on these orders.
The term “backlog” is defined as the buildup of all outstanding bookings to be delivered by the Company. The Company’s backlog is impacted by the fluctuation of foreign exchange rates for a given period. The measure provides an indication of the future operational challenges of the Company as well as an expectation of future sales and cash flows to be achieved on these orders.
The term “book-to-bill ratio” is obtained by dividing bookings by sales. The measure provides an indication of the Company’s performance and outlook for a given period.
The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.
____________________________________1 Net earnings or loss refer to net income or loss attributable to Subordinate and Multiple Voting Shares2 Non-IFRS and supplementary financial measures – see explanation above.
Consolidated Statements of Financial Position | ||
(Unaudited) | ||
(in thousands of U.S. dollars) | ||
As at | ||
November 30, 2021 | February 28, 2021 | |
$ | $ | |
Assets | ||
Current assets | ||
Cash and cash equivalents | 66,687 | 74,688 |
Short-term investments | 1,971 | 285 |
Accounts receivable | 110,179 | 135,373 |
Income taxes recoverable | 3,253 | 3,798 |
Inventories | 229,466 | 204,161 |
Deposits and prepaid expenses | 8,674 | 8,670 |
Derivative assets | 278 | 196 |
Assets held for sale | 19,213 | - |
439,721 | 427,171 | |
Non-current assets | ||
Property, plant and equipment | 75,496 | 96,327 |
Intangible assets and goodwill | 16,387 | 17,319 |
Deferred income taxes | 36,686 | 39,067 |
Other assets | 717 | 949 |
129,286 | 153,662 | |
Total assets | 569,007 | 580,833 |
Liabilities | ||
Current liabilities | ||
Bank indebtedness | 850 | 11,735 |
Short-term bank loans | 35 | - |
Accounts payable and accrued liabilities | 91,425 | 90,840 |
Income taxes payable | 2,288 | 1,609 |
Customer deposits | 68,612 | 62,083 |
Provisions | 22,800 | 29,515 |
Derivative liabilities | 375 | 303 |
Liabilities held for sale | 18,359 | - |
Current portion of long-term lease liabilities | 1,454 | 1,578 |
Current portion of long-term debt | 7,591 | 9,902 |
213,789 | 207,565 | |
Non-current liabilities | ||
Long-term lease liabilities | 11,505 | 12,649 |
Long-term debt | 38,821 | 48,189 |
Income taxes payable | 1,244 | 1,410 |
Deferred income taxes | 2,251 | 2,545 |
Other liabilities | 6,890 | 8,254 |
60,711 | 73,047 | |
Total liabilities | 274,500 | 280,612 |
Total equity | 294,507 | 300,221 |
Total liabilities and equity | 569,007 | 580,833 |
Consolidated Statements of Income | |||||||||
(Unaudited) | |||||||||
(in thousands of U.S. dollars, excluding number of shares and per share amounts) | |||||||||
Three-month periods ended | Nine-month periods ended | ||||||||
November 30, 2021 | November 30, 2020 | November 30, 2021 | November 30, 2020 | ||||||
$ | $ | $ | $ | ||||||
Sales | 109,971 | 71,560 | 286,393 | 216,553 | |||||
Cost of sales | 74,110 | 49,538 | 199,147 | 159,086 | |||||
Gross profit | 35,861 | 22,022 | 87,246 | 57,467 | |||||
Administration costs | 26,436 | 19,288 | 74,192 | 55,911 | |||||
Restructuring and transformation income | - | (8,119 | ) | - | (5,220 | ) | |||
Other expense (income) | (579 | ) | 411 | (537 | ) | 2,535 | |||
Operating profit | 10,004 | 10,442 | 13,591 | 4,241 | |||||
Finance income | 77 | 161 | 367 | 575 | |||||
Finance costs | (696 | ) | (322 | ) | (2,041 | ) | (1,098 | ) | |
Finance costs – net | (619 | ) | (161 | ) | (1,674 | ) | (523 | ) | |
Income before income taxes | 9,385 | 10,281 | 11,917 | 3,718 | |||||
Income tax expense (recovery) | 5,227 | 881 | 8,129 | 1,489 | |||||
Net income for the period | 4,158 | 9,400 | 3,788 | 2,229 | |||||
Net income attributable to: | |||||||||
Subordinate Voting Shares and Multiple Voting Shares | 4,507 | 9,527 | 4,449 | 2,529 | |||||
Non-controlling interest | (349 | ) | (127 | ) | (661 | ) | (300 | ) | |
Net income for the period | 4,158 | 9,400 | 3,788 | 2,229 | |||||
Net income per Subordinate and Multiple Voting Share | |||||||||
Basic and diluted | 0.21 | 0.44 | 0.21 | 0.12 | |||||
Total weighted average number of Subordinate and | |||||||||
Multiple Voting Shares | |||||||||
Basic and diluted | 21,585,635 | 21,585,635 | 21,585,635 | 21,585,635 | |||||
Consolidated Statements of Comprehensive Income (Loss) | ||||||||
(Unaudited) | ||||||||
(in thousands of U.S. dollars) | ||||||||
Three-month periods ended | Nine-month periods ended | |||||||
November 30, 2021 | November 30, 2020 | November 30, 2021 | November 30, 2020 | |||||
$ | $ | $ | $ | |||||
Comprehensive income (loss) | ||||||||
Net income for the period | 4,158 | 9,400 | 3,788 | 2,229 | ||||
Other comprehensive income (loss) | ||||||||
Foreign currency translation | (6,080 | ) | 490 | (9,502 | ) | 11,299 | ||
Comprehensive income (loss) | (1,922 | ) | 9,890 | (5,714 | ) | 13,528 | ||
Comprehensive income (loss) attributable to: | ||||||||
Subordinate Voting Shares and Multiple Voting Shares | (1,559 | ) | 9,886 | (5,007 | ) | 13,663 | ||
Non-controlling interest | (363 | ) | 4 | (707 | ) | (135 | ) | |
Comprehensive income (loss) | (1,922 | ) | 9,890 | (5,714 | ) | 13,528 | ||
Other comprehensive income (loss) is composed solely of items that may be reclassified subsequently to the consolidated statement of income (loss). | ||||||||
Consolidated Statements of Changes in Equity | |||||||||||
(Unaudited) | |||||||||||
(in thousands of U.S. dollars, excluding number of shares) | |||||||||||
Equity attributable to the Subordinate and Multiple Voting shareholders | |||||||||||
Share capital | Contributed surplus | Accumulated other comprehensive loss | Retained earnings | Total | Non-controlling interest | Total equity | |||||
Balance - February 29, 2020 | 72,695 | 6,260 | (34,047 | ) | 236,269 | 281,177 | 3,684 | 284,861 | |||
Net income for the period | - | - | - | 2,529 | 2,529 | (300 | ) | 2,229 | |||
Other comprehensive income | - | - | 11,134 | - | 11,134 | 165 | 11,299 | ||||
Balance - November 30, 2020 | 72,695 | 6,260 | (22,913 | ) | 238,798 | 294,840 | 3,549 | 298,389 | |||
Balance - February 28, 2021 | 72,695 | 6,260 | (21,007 | ) | 239,136 | 297,084 | 3,137 | 300,221 | |||
Net income for the period | - | - | - | 4,449 | 4,449 | (661 | ) | 3,788 | |||
Other comprehensive loss | - | - | (9,456 | ) | - | (9,456 | ) | (46 | ) | (9,502 | ) |
Balance - November 30, 2021 | 72,695 | 6,260 | (30,463 | ) | 243,585 | 292,077 | 2,430 | 294,507 | |||
Consolidated Statements of Cash Flow | |||||||||
(Unaudited) | |||||||||
(in thousands of U.S. dollars) | |||||||||
Three-month periods ended | Nine-month periods ended | ||||||||
November 30, 2021 | November 30, 2020 | November 30, 2021 | November 30, 2020 | ||||||
$ | $ | $ | $ | ||||||
Cash flows from | |||||||||
Operating activities | |||||||||
Net income for the period | 4,158 | 9,400 | 3,788 | 2,229 | |||||
Adjustments to reconcile net income (loss) to cash provided (used) by operating activities | 4,918 | (6,096 | ) | 10,975 | (837 | ) | |||
Changes in non-cash working capital items | (1,512 | ) | (14,657 | ) | (4,771 | ) | 6,358 | ||
Cash provided (used) by operating activities | 7,564 | (11,353 | ) | 9,992 | 7,750 | ||||
Investing activities | |||||||||
Short-term investments | (268 | ) | 327 | (1,686 | ) | (200 | ) | ||
Additions to property, plant and equipment | (1,379 | ) | (3,575 | ) | (4,948 | ) | (7,511 | ) | |
Additions to intangible assets | (520 | ) | (470 | ) | (1,330 | ) | (993 | ) | |
Proceeds on disposal of property, plant and equipment, and intangible assets | 10,597 | 12,683 | 13,729 | 13,712 | |||||
Net change in other assets | 2 | 63 | (25 | ) | (426 | ) | |||
Cash provided by investing activities | 8,432 | 9,028 | 5,740 | 4,582 | |||||
Financing activities | |||||||||
Dividends paid to Subordinate and Multiple Voting shareholders | - | - | - | (482 | ) | ||||
Short-term bank loans | 35 | 5,913 | 35 | 4,536 | |||||
Net change in revolving credit facility | (11,872 | ) | (9,537 | ) | (5,624 | ) | 10,798 | ||
Increase in long-term debt | - | - | 5,889 | 14,305 | |||||
Repayment of long-term debt | (1,522 | ) | (873 | ) | (6,068 | ) | (2,931 | ) | |
Repayment of long-term lease liabilities | (427 | ) | (428 | ) | (1,284 | ) | (1,284 | ) | |
Cash provided (used) by financing activities | (13,786 | ) | (4,925 | ) | (7,052 | ) | 24,942 | ||
Effect of exchange rate differences on cash | (2,360 | ) | (430 | ) | (3,652 | ) | 4,736 | ||
Change in cash and cash equivalents from reclassification of cash and cash equivalents as held of sale | (2,144 | ) | - | (2,144 | ) | - | |||
Net change in cash during the period | (2,294 | ) | (7,680 | ) | 2,884 | 42,010 | |||
Net cash – Beginning of the period | 68,131 | 80,700 | 62,953 | 31,010 | |||||
Net cash – End of the period | 65,837 | 73,020 | 65,837 | 73,020 | |||||
Net cash is composed of: | |||||||||
Cash and cash equivalents | 66,687 | 79,961 | 66,687 | 79,961 | |||||
Bank indebtedness | (850 | ) | (6,941 | ) | (850 | ) | (6,941 | ) | |
Net cash – End of the period | 65,837 | 73,020 | 65,837 | 73,020 | |||||
Supplementary information | |||||||||
Interest received (paid) | (526 | ) | (482 | ) | (1,360 | ) | (945 | ) | |
Income taxes reimbursed (paid) | (1,782 | ) | (3,039 | ) | (3,366 | ) | (5,548 | ) | |
For further information please contact:Bruno Carbonaro, Chief Executive Officer and PresidentTel: (438) 817-7593orBenoit Alain, Chief Financial OfficerTel: (438) 817-9957
1 Year Velan Chart |
1 Month Velan Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions