Canada NewsWire
MONTREAL, May 2, 2017
MONTREAL, May 2, 2017 /CNW Telbec/ - 5N Plus Inc. (TSX: VNP) ("5N Plus", the "Group" or the "Company"), the leading producer of specialty metal and chemical products, today reported financial results for the first quarter ended March 31, 2017. All amounts are expressed in U.S. dollars.
Following a transitional year, the Company continued to improve performance and profitability, reporting a strong quarter in terms of earnings and making further progress toward the objectives defined by its Strategic Plan, 5N21 ("5N21"). During this period, the Company continued to maintain a sound balance sheet in support of its growth initiatives.
Arjang Roshan, President and Chief Executive Officer, said "We are beginning to see results as we deliver the short-term objectives of our Strategic Plan, 5N21, specifically related to optimizing core businesses and global assets with notable progress in balancing quality of earnings while managing healthy market share along with consolidating the global footprint which is progressing in-line with our expectations." Mr. Roshan added, "In addition to improve profitability and quality of earnings, we expect much of this work to reduce earnings volatility." Mr. Roshan concluded, "The new executive team and I are encouraged by the results and remain on course in congruence with 5N21."
Webcast Information
5N Plus will host a conference call on Wednesday, May 3, 2017 at 8:00 am ET with financial analysts to discuss results of the quarter ended March 31, 2017. All interested parties are invited to participate in the live broadcast on the Company's Web site at www.5nplus.com. A replay of the webcast and a recording of the Q&A will be available until May 10, 2017.
To participate in the conference call:
Enter access code 14986470.
Non-IFRS Measures
EBITDA means net earnings (loss) before interest expenses (revenues), income taxes, depreciation and amortization. We use EBITDA because we believe it is a meaningful measure of the operating performance of our ongoing business without the effects of certain expenses. The definition of this non-IFRS measure used by the Company may differ from that used by other companies. EBITDA margin is defined as EBITDA divided by revenues.
Adjusted EBITDA means EBITDA as defined above before impairment of inventories, allowance for doubtful of a receivable from a related party, litigation and restructuring costs, gain on disposal of property, plant and equipment, change in fair value of debenture conversion option, foreign exchange and derivatives loss (gain). We use adjusted EBITDA because we believe it is a meaningful measure of the operating performance of our ongoing business without the effects of inventory write-downs. The definition of this non-IFRS measure used by the Company may differ from that used by other companies. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by revenues.
Net debt or net cash is a measure we use to monitor how much debt we have after taking into account cash and cash equivalents. We use it as an indicator of our overall financial position, and calculate it by taking our total debt, including the current portion and the cross-currency swap related to the convertible debenture, and subtracting cash and cash equivalents.
Backlog represents the expected orders we have received but have not yet executed and that are expected to translate into sales within the next twelve months expressed in number of days. Bookings represent orders received during the period considered, expressed in days, and is calculated by adding revenues to the increase or decrease in backlog for the period considered divided by annualized year revenues. We use backlog to provide an indication of expected future revenues in days, and bookings to determine our ability to sustain and increase our revenues.
Gross margin is a measure we use to monitor the sales contribution after paying cost of sales excluding depreciation of property, plant and equipment. We also expressed this measure in percentage of revenues by dividing the gross margin value by the total revenue.
About 5N Plus Inc.
5N Plus is the leading producer of specialty metal and chemical products. Fully integrated with closed-loop recycling facilities, the Company is headquartered in Montreal, Québec, Canada and operates manufacturing facilities and sales offices in several locations in Europe, the Americas and Asia. 5N Plus deploys a range of proprietary and proven technologies to produce products which are used in a number of advanced pharmaceutical, electronic and industrial applications. Typical products include purified metals such as bismuth, gallium, germanium, indium, selenium and tellurium, inorganic chemicals based on such metals and compound semiconductor wafers. Many of these are critical precursors and key enablers in markets such as solar, light-emitting diodes and eco-friendly materials.
Forward-Looking Statements and Disclaimer
This press release may contain forward-looking information within the meaning of applicable securities laws. All information and statements other than statements of historical facts contained in this press release are forward-looking information. Such statements and information may be identified by words such as "about", "approximately", "may", "believes", "expects", "will", "intends", "should", "plans", "predicts", "potential", "projects", "anticipates", "estimates", "continues" or similar words or the negative thereof or other comparable terminology. Forward-looking statements are based on the best estimates available to 5N Plus at this time and involve known and unknown risks, uncertainties and other factors that may cause 5N Plus' actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. A description of the risks affecting 5N Plus' business and activities appears under the heading "Risk and Uncertainties" of 5N Plus' 2016 MD&A dated February 21, 2017 and notes 11 and 12 of the unaudited condensed interim consolidated financial statements for the three-month periods ended March 31, 2017 and 2016, available on SEDAR at www.sedar.com. No assurance can be given that any events anticipated by the forward-looking information in this press release will transpire or occur, or if any of them do so, what benefits that 5N Plus will derive therefrom. In particular, no assurance can be given as to the future financial performance of 5N Plus. The forward-looking information contained in this press release is made as of the date hereof and 5N Plus undertakes no obligation to publicly update such forward-looking information to reflect new information, subsequent or otherwise, unless required by applicable securities laws. The reader is warned against placing undue reliance on these forward-looking statements.
5N PLUS INC. | ||
Condensed Interim Consolidated Statements of Financial Position | ||
(in thousands of United States dollars) | ||
March 31 |
December 31 | |
$ |
$ | |
Assets |
||
Current |
||
Cash and cash equivalents |
23,023 |
24,301 |
Accounts receivable |
38,225 |
29,799 |
Inventories |
75,074 |
80,309 |
Income tax receivable |
6,930 |
6,819 |
Other current assets |
3,753 |
2,831 |
Total current assets |
147,005 |
144,059 |
Property, plant and equipment |
58,435 |
59,945 |
Intangible assets |
11,561 |
11,109 |
Deferred tax assets |
1,758 |
1,883 |
Investment accounted for using the equity method |
778 |
779 |
Derivative financial assets |
818 |
189 |
Other assets |
1,043 |
1,093 |
Total non-current assets |
74,393 |
74,998 |
Total assets |
221,398 |
219,057 |
Liabilities |
||
Current |
||
Trade and accrued liabilities |
53,124 |
57,381 |
Income tax payable |
8,616 |
8,422 |
Current portion of long-term debt |
330 |
325 |
Total current liabilities |
62,070 |
66,128 |
Convertible debentures |
44,356 |
43,157 |
Deferred tax liabilities |
1,939 |
715 |
Employee benefit plan obligation |
14,688 |
14,813 |
Derivative financial liabilities |
47 |
68 |
Other liabilities |
5,656 |
5,662 |
Total non-current liabilities |
66,686 |
64,415 |
Total liabilities |
128,756 |
130,543 |
Equity |
||
Equity holders of 5N Plus Inc. |
92,651 |
88,522 |
Non-controlling interests |
(9) |
(8) |
Total equity |
92,642 |
88,514 |
Total liabilities and equity |
221,398 |
219,057 |
5N PLUS INC. | |||
Condensed Interim Consolidated Statements of Earnings (Loss) | |||
For the three-month periods ended March 31 | |||
(in thousands of United States dollars, except per share information) | |||
2017 |
2016 | ||
$ |
$ | ||
Revenue |
60,870 |
63,868 | |
Cost of sales |
48,760 |
53,739 | |
Selling, general and administrative expenses |
7,039 |
6,378 | |
Other (revenues) expenses |
(2,724) |
3,050 | |
Share of loss (gain) from joint ventures |
8 |
(113) | |
53,083 |
63,054 | ||
Operating earnings |
7,787 |
814 | |
Finance expense |
|||
Interest on long-term debt |
815 |
880 | |
Imputed interest and other interest expense |
990 |
1,819 | |
Changes in fair value of debenture conversion option |
(22) |
309 | |
Foreign exchange and derivative loss |
177 |
27 | |
1,960 |
3,035 | ||
Earnings (loss) before income taxes |
5,827 |
(2,221) | |
Income tax expense (recovery) |
|||
Current |
318 |
699 | |
Deferred |
1,356 |
(1,011) | |
1,674 |
(312) | ||
Net earnings (loss) |
4,153 |
(1,909) | |
Attributable to: |
|||
Equity holders of 5N Plus Inc. |
4,154 |
(1,907) | |
Non-controlling interests |
(1) |
(2) | |
4,153 |
(1,909) | ||
Earnings (loss) per share attributable to equity holders of 5N Plus Inc. |
0.05 |
(0.02) | |
Basic earning (loss) per share |
0.05 |
(0.02) | |
Diluted earnings (loss) per share |
0.05 |
(0.02) |
5N PLUS INC. | ||||
(in thousands of United States dollars) | ||||
Revenue by Segment and Gross Margin |
Q1 2017 |
Q1 2016 |
Change | |
$ |
$ |
|||
Electronic Materials |
19,339 |
19,568 |
(1%) | |
Eco-Friendly Materials |
41,531 |
44,300 |
(6%) | |
Total revenue |
60,870 |
63,868 |
(5%) | |
Cost of sales |
(48,760) |
(53,739) |
(9%) | |
Depreciation on property, plant and equipment (PPE) |
1,973 |
2,246 |
(12%) | |
Gross margin1 |
14,083 |
12,375 |
14% | |
Gross margin percentage1 |
23.1% |
19.4% |
Adjusted EBITDA and EBITDA |
Q1 2017 |
Q1 2016 | ||
$ |
$ | |||
Revenue |
60,870 |
63,868 | ||
Adjusted operating expenses1 * |
(54,798) |
(59,618) | ||
Adjusted EBITDA1 |
6,072 |
4,250 | ||
Impairment of inventory |
- |
- | ||
Gain on disposal of property, plant and equipment |
390 |
- | ||
Litigation and restructuring income (costs) |
3,368 |
(1,030) | ||
Change in fair value of debenture conversion option |
22 |
(309) | ||
Foreign exchange and derivative loss |
(177) |
(27) | ||
EBITDA1 |
9,675 |
2,884 | ||
Interest on long-term debt, imputed interest and other interest expense |
1,805 |
2,699 | ||
Depreciation and amortization |
2,043 |
2,406 | ||
Earnings (loss) before income taxes |
5,827 |
(2,221) | ||
Income tax expense (recovery) |
||||
Current |
318 |
699 | ||
Deferred |
1,356 |
(1,011) | ||
1,674 |
(312) | |||
Net earnings (loss) |
4,153 |
(1,909) | ||
*Excluding litigation and restructuring (income) costs, gain on disposal of property, plant and equipment and depreciation and amortization. |
Net Debt |
As at March 31, 2017 |
As at December 31, 2016 | |
$ |
$ | ||
Bank indebtedness |
- |
- | |
Long-term debt including current portion |
330 |
325 | |
Convertible debentures |
44,356 |
43,157 | |
Cross-currency swap |
(818) |
(189) | |
Total Debt |
43,868 |
43,293 | |
Cash and cash equivalents |
(23,023) |
(24,301) | |
Net Debt1 |
20,845 |
18,992 |
_____________________________________ |
1 See Non-IFRS Measures |
SOURCE 5N Plus Inc.
View original content: http://www.newswire.ca/en/releases/archive/May2017/02/c1165.html
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