GLV - Fiscal 2012 Third Quarter Results
(All amounts are in Canadian dollars)
For the third quarter 2012
- Revenues of $161.7 million compared with $186.0 million for the corresponding quarter of fiscal 2011
- EBITDA of $6.5 million and normalized EBITDA of $6.9 million compared with year-over-year levels of $10.7 million and $11.6 million, respectively
- Net earnings (loss) and net earnings (loss) related to continuing operations attributable to shareholders of GLV Inc. of ($1.6 million) compared with ($0.7 million) and $3.5 million, respectively, for the corresponding quarter of fiscal 2011
- Normalized net loss attributable to shareholders of GLV Inc. of ($1.2 million) or ($0.03) per share, basic and diluted
For the nine-month period ended December 31, 2011
- Revenues of $486.0 million compared with $495.6 million for the corresponding period of fiscal 2011
- EBITDA of $17.1 million and normalized EBITDA of $18.2 million compared with year-over-year levels of $12.1 million and $13.0 million, respectively
- Net loss and net loss related to continuing operations attributable to shareholders of GLV Inc. of ($1.3 million) compared with ($14.9 million) and ($7.5 million), respectively, for the corresponding period of fiscal 2011
- Normalized net loss attributable to shareholders of GLV Inc. of ($0.1 million)
Data as at December 31, 2011
- Total net debt ratio of 15.8% compared with 18.9% as at March 31, 2011
- Working capital ratio of 1.56 compared with 1.52 as at March 31, 2011
- Backlog of $396.1 million compared with $430.0 million as at September 30, 2011 and $372.2 million as at March 31, 2011
MONTREAL, Feb. 9, 2012 /CNW Telbec/ - GLV Inc. (the "Corporation") (TSX: GLV.A GLV.B) released its results today for the third quarter of fiscal 2012. Those results are presented in accordance with International Financial Reporting Standards ("IFRS") as of the first quarter of fiscal 2012. The previous year's results and data have been restated.
This press release presents the highlights of the third quarter ended December 31, 2011. For a detailed analysis, see the interim management's discussion and analysis (MD&A) and unaudited interim condensed consolidated financial statements, filed today on the websites of SEDAR (www.sedar.com and the Corporation www.glv.com). Note that non-IFRS financial measures have been used to analyze performance.
For the quarter ended December 31, 2011, the Corporation's results were not in line with management's expectations, resulting from lower-than-expected operational margins and delays in the progress of some contracts, particularly in the Pulp and Paper Group, as well as to a slowdown in the pace of orders intake in certain Ovivo segments in light of the prevailing economic environment.
As at December 31, 2011, excluding a contract still in progress, the Chris Water Technology (CWT) contracts in a desalination segment subsidiary whose completion had a significant adverse effect on results in the first two quarters of fiscal 2012 and the fourth quarter of fiscal 2011 are now complete or awaiting start-up per client timelines. Management continues to closely monitor the last contract in progress with a tight focus on estimating the forthcoming related costs.
While the operating results for most entities remain positive, the Corporation recorded a year-over-year decline in revenues and EBITDA for the current quarter. However, for the nine-month period ended December 31, 2011, EBITDA is higher relative to earnings for the same period of the previous year owing primarily to higher profitability for Ovivo and in the Other group resulting from improved performance in the Van Der Molen division and lower overhead costs at head office.
On December 19, 2011, the Corporation renewed its main financing agreement, which was up for renewal in August 2012, for the next five years. This multi‐jurisdictional and multi‐currency financing totals $200 million and consists of a $100 million revolving credit facility to meet the Corporation's day-to-day financing requirements, issue letters of credit and finance business acquisitions, and a second $100 million revolving credit facility to issue letters of credit guaranteed by Export and Development Canada ("EDC"). The financing agreement also includes an uncommitted accordion feature providing access to an additional $50 million, providing the Corporation with the flexibility it needs to pursue its growth strategy. Renewal fees of $1.1 million were recognized under financial expenses in earnings for the current quarter.
As at December 31, 2011, the backlog stood at $396.1 million, down from $430.0 million as at the end of the previous quarter, September 30, 2011, but up from $372.2 million as at the beginning of the current fiscal year, March 31, 2011.
The decrease in backlog relative to September 30, 2011, accentuated by an unfavourable foreign exchange effect, was primarily attributable to Ovivo in the desalination segment, the U.S. municipal segment and the petrochemical and pulp and paper divisions. The increase in backlog compared with March 31, 2011 was significant in the Pulp and Paper Group, particularly for new equipment market. For Ovivo, growth in the energy and renewable energy segments was offset by a decline in the U.S. municipal segment.
For fiscal 2012 as a whole, assuming exchange rates remain stable at current levels and in light of the outlook in the sectors served by each group, the Corporation is maintaining its forecast for consolidated revenues of $650 million to $675 million.
About GLV Inc.
GLV Inc. is a leading global provider of water treatment technological solutions, under the Ovivo brand, as well as technological solutions used in pulp and paper production. The Corporation operates in some 30 countries with approximately 2,300 employees. GLV is a public company whose shares trade on the Toronto Stock Exchange (TSX) under the ticker symbols GLV.A and GLV.B; it is a constituent of the S&P/TSX Clean Technology Index.
Notice regarding forward-looking statements
Certain statements in this press release regarding management's objectives, projections, estimates, expectations or forecasts may constitute forward-looking statements within the meaning of applicable securities legislation. Forward-looking statements are recognized by the use of terms such as "forecast," "project," "could," "plan," "aim," "estimate" and other similar terms, possibly used in the future or conditional, particularly with regard to certain assumptions. The management of GLV would like to point out that forward-looking statements involve a number of uncertainties and known and unknown risks such that GLV's actual and future results could differ considerably from those stated. There can be no assurance as to the materialization of the results, performance or achievements as expressed in or underlying the forward-looking statements. The forward-looking statements included in this press release were made as of the date hereof, and unless required to do so pursuant to applicable securities legislation, management of GLV assumes no obligation to update them.
Additional information about the risk factors to which GLV is exposed is provided under section 11, "Risks and uncertainties" in the MD&A for the fiscal year ended March 31, 2011 available on SEDAR (www.sedar.com and the Corporation's website www.glv.com).
Date and time: Thursday, February 9, 2012 at 2 p.m. (EST)
1-800-731-5319 (North America)
An audio webcast of the conference call will be streamed live on www.glv.com. An audio recording will be accessible on demand from 5 p.m. (EST) February 9, 2012 until midnight February 16, 2012 at 1-877-289-8525 (1-416-640 1917 - International; access code: 4505181#).
Investors and media:
Executive Vice-President and Chief Financial Officer
Tel.: +1 514-282-2224