SIGMA INDUSTRIES INC. SAINT-EPHREM-DE-BEAUCE, QUEBEC--(Marketwired - Jul 14, 2016) - Sigma Industries Inc. (TSX VENTURE:SSG), a manufacturing company specializing in the production of composite components, announces results for the fourth quarter and fiscal year ended April 30, 2016.
"Sigma Industries' fourth quarter results reflect weakness in the heavy-duty truck market. This industry is currently in a capacity reduction mode and we foresee lower demand in the new fiscal year. However, our proven reputation for high-quality products and innovation should allow us to capture new business opportunities and we are constantly looking to generate additional sales by diversifying our product offering and stepping up the penetration of existing customers. We will also continue to reduce costs and improve operating efficiency," said Denis Bertrand, President and Chief Executive Officer of Sigma Industries.
FOURTH QUARTER RESULTS
Revenues for the fourth quarter of fiscal 2016 totalled $15.4 million, compared with $18.7 million in the fourth quarter of fiscal 2015. This variation is mainly attributable to a decrease in sales to the heavy-duty truck market resulting from lower industry shipments. This factor was partially offset by higher sales to the bus market due to greater industry shipments and to a higher year-over-year conversion rate applied to U.S. dollar denominated sales.
Sigma Industries recorded earnings before interest, taxes, depreciation and amortization ("EBITDA") of $1.3 million, or 8.4% of revenues, in the fourth quarter of fiscal 2016, versus $1.5 million, or 8.0% of revenues, a year earlier. The variation stems from lower revenues partially offset by benefits from the specialization in closed mould manufacturing, including a greater proportion of costs labelled in Canadian dollars. The Company also incurred a foreign exchange loss in the fourth quarter of fiscal 2016 due to its hedging position. The loss resulted from foreign exchange contracts entered into at rates that became less favourable than market rates due to important variations in the value of the Canadian dollar. The fourth quarter of fiscal 2015 included a foreign exchange gain and a gain related to a fire.
As a result, Sigma Industries concluded the fourth quarter of fiscal 2016 with net income of $652,011, or $0.05 per basic and diluted share, versus $612,900, or $0.05 per basic and diluted share, in the fourth quarter of fiscal 2015.
FISCAL 2016 RESULTS
For the fiscal year ended April 30, 2016, revenues amounted to $64.9 million, versus $65.1 million in the fiscal year ended May 2, 2015. EBITDA reached $4.7 million, or 7.2% of revenues, versus $5.0 million, or 7.7% of revenues, last year. Net income totalled $1.6 million, or $0.14 per basic and diluted share in fiscal 2016, compared with net income of $1.9 million, or $0.16 per basic and diluted share, in fiscal 2015.
SELECTED FINANCIAL INFORMATION
| Consolidated results of operations | Three months ended | Fiscal year ended | ||||
| (unaudited, in thousands of Canadian dollars except per-share amounts) | April 30, 2016 | May 2, 2015 | April 30, 2016 | May 2, 2015 | ||
| $ | $ | $ | $ | |||
| Revenues | 15,430 | 18,695 | 64,923 | 65,068 | ||
| EBITDA | 1,344 | 1,500 | 4,741 | 4,983 | ||
| Net income | 652 | 613 | 1,867 | 1,862 | ||
| Per share (basic and diluted) | 0.05 | 0.05 | 0.16 | 0.16 | ||
| Reconciliation of EBITDA, adjusted EBITDA and net income(unaudited, in thousands of Canadian dollars) | Three months ended | Fiscal year ended | ||||
| April 30, 2016 | May 2, 2015 | April 30, 2016 | May 2, 2015 | |||
| $ | $ | $ | $ | |||
| Net income | 652 | 613 | 1,867 | 1,862 | ||
| PLUS (less): | ||||||
| Income tax expense | - | - | 1 | 2 | ||
| Depreciation and amortization | 365 | 383 | 1,466 | 1,331 | ||
| Financial expenses | 368 | 504 | 1,407 | 1,788 | ||
| EBITDA | 1,345 | 1,500 | 4,741 | 4,983 | ||
| PLUS (less): | ||||||
| Gain on lease cancellation | - | - | - | (602 | ) | |
| Gain on disaster | - | (206 | ) | (264) | (206 | ) |
| Adjusted EBITDA | 1,345 | 1,294 | 4,227 | 4,175 | ||
| Consolidated balance sheet data | As at | |||||
| (in thousands of Canadian dollars) | April 30, 2016 | May 2, 2015 | ||||
| $ | $ | |||||
| Total assets | 24,896 | 26,490 | ||||
| Total liabilities | 21,697 | 24,746 | ||||
| Shareholders' equity | 3,699 | 1,744 | ||||
NON-IFRS FINANCIAL MEASURES
The information in this press release includes certain measures that are not financial measures prescribed under IFRS. Sigma Industries uses earnings before interest, taxes, depreciation and amortization ("EBITDA") and adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted 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. EBITDA is obtained by adding net income (loss) plus income taxes, financial expenses, as well as depreciation and amortization. Adjusted EBITDA consists of EBITDA plus (minus) items not related to current operations. 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 300 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 July 14, 2016, 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 audited consolidated 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.
