ADF GROUP INC. ('ADF' or the 'Corporation') (TSX: DRX) ended fiscal 2023 with revenues of $250.9 million compared to revenues of $280.7 million last fiscal year.
This decrease in revenues is mainly due to the inclusion of high-volume, accelerated projects that increased revenues for the previous fiscal year ended January 31, 2022, but with much lower margins than normally generated by our Company.
Gross margin, as a percentage of revenues (2), increased from 8.8% in the year ended January 31, 2022 to 14.2% for the year ended January 31, 2023. This percentage increase in revenues is explained by the projects mentioned above, as well as by the improvement in internal efficiency generated by investments in the automation of manufacturing processes at our plant in Terrebonne, Quebec.
Earnings before interest, taxes, depreciation and amortization adjusted (adjusted EBITDA) (3) for the fiscal year ended January 31, 2023, at $26.1 million, is $8.4 million or 47% higher than at the same date a year earlier.
For the year ended January 31, 2023, ADF posted net income of $14.9 million ($0.46 per share, basic and diluted) compared to net income of $9.6 million ($0.29 per share, basic and diluted) a year earlier.
As at January 31, 2023, the Company had working capital of $65.6 million, 69% more than at the same date a year earlier. The Company remains in a strong position to continue its day-to-day operations and carry out its development projects.
The order book (1) of the Corporation was $376.5 million as at January 31, 2023, compared to $373.1 million as at January 31, 2022. The majority of projects in hand will be phased in by mid-year, January 31, 2025.
New funding agreement
On February 10, 2023, the Company entered into an agreement with its Canadian financial institution on the terms and conditions amending its Canadian operating credit facility. Once completed, the credit facility will increase from $30.0 million to $40.0 million in the coming weeks; this amount remains subject to a margin calculation but only when the Corporation needs to draw an amount greater than $20.0 million. The other terms and conditions will remain similar to the current arrangements.
Prospects
ADF ended its fiscal year ended January 31, 2023 with encouraging results, an increasing backlog, better margins and a 56% higher net income compared to a year ago,' said Jean Paschini, Chairman of the Board and Chief Executive Officer. He concluded, 'Our major investments in automation over the past two fiscal years are now complete, allowing us to face economic challenges with confidence.'
Dividend
On April 12, 2023, ADF Group's Board of Directors approved the payment of a semi-annual dividend of $0.01 per share, to be paid on May 17, 2023 to shareholders of record as of April 28, 2023.
ANNUAL GENERAL MEETING OF SHAREHOLDERS FOR THE YEAR ENDED JANUARY 31, 2023
ADF Group Inc. will hold its Annual General Meeting of Shareholders via webcast on Wednesday, June 7, 2023, at 11 a.m. (EST). Details of the upcoming shareholders' meeting and webcast login instructions will be available in the weeks leading up to the meeting.
Results for the first quarter ending April 30, 2023 will also be announced at this shareholders' meeting.
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.
Contact:
Tel: (450) 965-1911
Web: www.adfgroup.com
ADF GROUP INC. 
