ADF GROUP INC. ('ADF' or the 'Company') (TSX: DRX), a North American leader in steel superstructure manufacturing, recorded revenues of $80.3 million in the first quarter ended April 30, 2023, compared to $68.0 million for the same period a year earlier.
Gross margin, as a percentage of revenues (1) increased from 12.1% in the three-month period ended April 30, 2022, to 16.8% for the same period ended April 30, 2023. Gross margin for the quarter ended April 30, 2023 benefited from operational efficiencies improvements generated by the installation of the brand new robotic manufacturing line and new programmable and automated equipment at ADF's plant located in Terrebonne, Quebec.
Earnings before interest, taxes, depreciation and amortization adjusted (adjusted EBITDA) (2) at $10.0 million, is $4.4 million or 79% higher than as at April 30, 2022.
For the first quarter ended April 30, 2023, ADF recorded net income of $5.4 million ($0.16 per basic and diluted share) compared to net income of $4.3 million ($0.13 per basic and diluted share) for the same period a year earlier.
As of April 30, 2023, the order book (1) of the Corporation was $312.4 million, excluding new contracts totalling $142.0 million announced on May 30, 2023.
As of April 30, 2023, the Company had working capital (1) of $73.7 million while the Company's operating activities generated cash of $41.2 million during the three months ended April 30, 2023.
The Corporation remains well positioned to continue its day-to-day operations and carry out its development projects.
New funding agreement
On April 28, 2023, the Company entered into a new agreement with its Canadian financial institution for its Canadian operating credit facility. This credit facility is now increased from $30.0 million to $40.0 million; this amount remains subject to margin calculation, but only when the Corporation needs to raise more than $20.0 million. The other terms and conditions remain similar to the previous conditions.
Prospects
With our backlog, to which we added $142.0 million in new contracts on May 30, 2023, we started fiscal 2024 on the right foot,' said Jean Paschini, Chairman of the Board and Chief Executive Officer.
The contribution of robotization and new programmable automated equipment to our manufacturing complex in Terrebonne, Quebec, continues to bring increased efficiency, thus improving our profitability,' concluded Mr. Paschini.
Conference Call with Investors
An investor conference call will be held today, June 7, 2023 at 10:30 a.m. (Montreal time) to discuss the results for the first quarter ended April 2023, .
To join the conference call without carrier assistance, you can sign up with your phone number on https://emportal.ink/40D7CuB to receive an instant automated callback. You can also reach the call through an operator by dialing 1-888-390-0620 a few minutes before the call starts.
A replay of the recording of this call will be available from Wednesday, June 7, 2023 at 13 p.m. until midnight on Wednesday, June 14, 2023, by dialing 1-888-259-6562, followed by access code 020433.
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 YEAR ENDED JANUARY 31, 2023
We encourage shareholders to vote by proxy on matters before the Meeting and to follow the proceedings online. At any time and at the end of the Meeting, shareholders may submit their questions to the Company's management via webcast. To this end, a dialog box will be available at the bottom of the screen allowing registered shareholders to write their questions.
About ADF Group Inc. | ADF Group Inc. is a North American leader in the design and engineering of connections, manufacturing, including the application of industrial coatings, the assembly of complex metal structures, heavy steel components, as well as fabricated and architectural metals, for the non-residential infrastructure sector. ADF Group Inc. is one of the few industry players able to carry out commercial, institutional, industrial and public megaprojects characterized by a very high level of technological complexity and accelerated timelines. The Company now operates two manufacturing plants and two paint shops; in Canada and the United States, as well as a 'Construction' division in the United States, which specializes in the assembly of steel structures and other related products.
Forward-Looking Statements | This press release contains forward-looking statements that reflect ADF's objectives and expectations. These statements are identified by verbs such as 'expects that' as well as by the use of future and conditional verb tenses. By their nature, these statements involve risks and uncertainties. As a result, actual facts may differ from ADF's expectations.
Non-GAAP and Other Financial Measures | Are measures derived primarily from the consolidated financial statements, but are not financial measures standardized under the financial reporting framework applied in preparing the Corporation's financial statements. Therefore, readers should be careful not to confuse or substitute for performance measures established in accordance with GAAP. In addition, the Bank should avoid comparing these non-GAAP financial measures to similarly named measures provided or used by other issuers. The definition of these indicators and their reconciliation to comparable measures in International Financial Reporting Standards is as follows:
Contact:
Tel: (450) 965-1911
Web: www.adfgroup.com
ADF GROUP INC. 
