SAINT-ÉPHREM-DE-BEAUCE, Québec, March 26, 2018 (GLOBE NEWSWIRE) -- Sigma Industries Inc. (TSX VENTURE:SSG), a manufacturing company specializing in the production of composite components, announces results for the third quarter of its 2018 fiscal year ended January 27, 2018.
“Sigma Industries Inc. recorded higher sales for its third quarter of fiscal year 2018. Revenues increased 4.6% compared to the previous year, with higher year-over-year sales in the bus and industrial markets, partially offset by lower sales in the heavy-duty truck segment. Conversely, operating profitability was under pressure as our higher sales and our efforts to enhance profitability was more than offset by higher labour costs due to a workforce shortage,” said Denis Bertrand, President and Chief Executive Officer of Sigma Industries.
“As mentioned since the beginning of the fiscal year, Sigma Industries progressively accelerated the pace of its capital investments as part of a modernization program of its facilities and equipment. Year-to-date, we invested approximately $1.6 million, mainly in equipment aimed at increasing the automation of our operating activities, which will increase our productivity and partially alleviate the impact from the labour shortage. In addition, in the upcoming months, we will start to invest for the important long-term contract to manufacture components for a new vehicle program that we announced last December. In parallel, as part of our participation in the Québec government’s Accelerated Growth Center program, we have made progress in our search for an optimal location to set up a manufacturing facility in the United States. We have actually identified a number of interesting sites and are currently in the final negotiation stage. We are confident that this initiative will contribute to further increase our reach south of the border and provide Sigma Industries with several growth opportunities,” added Mr. Bertrand.
THIRD QUARTER RESULTS
Revenues for the third quarter of fiscal 2018 amounted to $13.7 million, up $0.6 million, or 4.6%, compared with $13.1 million in the third quarter of fiscal 2017. This increase essentially reflects higher sales in the bus and industrial markets due to higher customer orders, partially offset by lower sales from the heavy-duty truck industry.
Earnings before interest, taxes, depreciation and amortization (“EBITDA”) reached $943,240, representing 6.9% of revenues, in the third quarter of fiscal 2018, down from $1,309,777 or 10.0% of revenues, a year earlier. The decrease in dollars is attributable to higher labour costs, partially offset by higher sales and better productivity.
Sigma Industries concluded the third quarter of fiscal 2018 with a net income of $360,142, or $0.03 per basic share ($0.02 per diluted share), compared with a net income of $733,133, or $0.06 per basic share ($0.03 per diluted share) in the third quarter of fiscal 2017.
For the first nine months of fiscal 2018, revenues totalled $43.3 million, up 10.7% from $39.1 million in the first nine months of fiscal 2017. EBITDA amounted to $4.1 million, or 9.5% of revenues, versus $3.2 million, or 8.1% of revenues, last year. Net income reached $2.2 million, or $0.19 per basic share ($0.08 per diluted share), up sharply from $1.2 million, or $0.10 per basic share ($0.05 per diluted share), in the prior year.
“Going forward, we need to continue to look for new ways to increase our productivity while leveraging our proven reputation as an innovative provider of value-added products and systems to generate additional sales through the diversification of our products, the penetration of new markets and market share gains with existing customers. By building on its core strength, Sigma Industries is committed to create lasting value for its shareholders,” concluded Mr. Bertrand.
Selected Financial Information
|Consolidated results of operations||Three months ended||Nine months ended|
|(unaudited, in thousands of Canadian dollars except per-share amounts)||January 27, 2018||January 28, 2017||January 27, 2018||January 28, 2017|
|per share (basic)||0.03||0.06||0.19||0.10|
|per share (diluted)||0.02||0.03||0.08||0.05|
|Reconciliation of EBITDA and net income|
(unaudited, in thousands of Canadian dollars)
|Three months ended||Nine months ended|
|January 27, 2018||January 28, 2017||January 27, 2018||January 28, 2017|
|Income tax expense||100||-||400||-|
|Depreciation and amortization||257||331||854||1,044|
|Write-off of financial expenses and fees||-||-||-||192|
|Consolidated balance sheet data||As at|
|(in thousands of Canadian dollars)||January 27, 2018||April 29, 2017|
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”) 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. This measure does 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 275 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.
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 March 26, 2018, 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.
|Sigma Industries Inc.|
|President and Chief Executive Officer|
Source:Sigma Industries Inc.