Nine month profits up 94%
November 07 2011 - 8:00AM
PR Newswire (Canada)
-- Quarterly and year to date (YTD) sales of $7,001,000 and
$20,506,000 -- 6% sales growth for the first nine months -- Third
quarter gross margin increased from 42% to 45% -- 22% improvement
in Adjusted EBITDA to $3,300,000 compared with $2,700,000 for the
first nine months in 2010 -- Adjusted EBITDA to sales of 16% versus
14% for the first nine months -- 94% improvement in YTD net profit
of $924,000 versus last year's net profit of $477,000 -- Working
capital increased by $1,340,000 and total liabilities decreased by
$1,174,000 since December 2010 QUEBEC CITY, Nov. 7, 2011 /CNW
Telbec/ - Novik Inc. is pleased to release its results for the
third quarter and first nine months of fiscal year 2011. NOVIK inc.
for the periods ended September 30, 2011 and2010 (in thousands
dollars, Period of except for Period of three Period of Period of
amounts* threemonths months nine months nine months pershare) 2011
2010 2011 2010 $ $ $ $ Operating results Revenues 7,001 7,839
20,506 19,384 Gross margin 3,164 3,314 8,120 7,453 Profit before
depreciation, stock-based compensation, financial expenses and
income taxes 1,186 1,576 3,305 2,687 Net profit 552 743 924 477
Basic and diluted net profit per share 0.011 0.015 0.019 0.010
NOVIK inc. September 30 December 31 (in thousands dollars, except
for 2011 2010 amounts* pershare) $ $ Financial position Total
assets 24,431 24,372 Working capital 3,526 2,186 Total long-term
financial liabilities 9,362 8,960 Total liabilities 11,898 13,072
Shareholders' equity 12,532 11,301 Shareholders' equity per share
0.26 0.23 Number of outstanding shares 48,470,858 48,470,858 -- All
amounts are expressed in Canadian dollars unless otherwise
indicated. Mr. Michel Gaudreau, Chief Executive Officer of Novik
commented "I am pleased that Novik's profit in the first nine month
of fiscal 2011 is almost double that of the previous year."
Mr. Gaudreau also pointed out that "at the beginning of the year,
we established clear objectives in order to improve our
profits. Since then our team members have been focused on
improving our production and organizational cost structure.
We have also been able to maintain our gross margin at an
appropriate threshold. We will remain vigilant in our focus on
margin improvement in order to preserve our current achievements
and continue the efforts in this direction." SALES The general
slowdown across the construction and exterior siding sectors in
North America resulted in third quarter sales declining to $7.0 M
from the $7.8 M achieved during the same quarter of the previous
year. This decrease in sales of around 10% was the first
reduction in Novik's quarter-over-quarter sales since September
2009. Novik continued to outperform the industry however, with
industry sources indicating a decline in the quarter of
approximately 16% and 5% in Canada and USA respectively. Novik's
sales in the international markets remained stable. Mr. Gaudreau
stated that "despite this slight slowdown, Novik is making solid
progress in our business development activities. Our sales
team is working with potential major customers that have expressed
an interest in carrying Novik's product line. These customers
are attracted to Novik's innovative and complementary products
because they offer the chance to gain greater penetration within
the customers end markets. In fact, we are at the market test stage
with certain major accounts." Novik's cumulative sales for the
first nine months of 2011 amount to $20.5 M compared with $19.4 M
for the same period of the previous year, an increase of 6%.
This sales level represents a record in Novik's history after the
first nine months of the fiscal year. EARNINGS BEFORE INTEREST,
STOCK-BASED COMPENSATION COSTS, TAXES, DEPRECIATION AND
AMORTIZATION ("Adjusted EBITDA") Earnings before interest,
stock-based compensation costs, taxes, depreciation, and
amortization ("Adjusted EBITDA") is a measure that has no
standardized meaning prescribed by International Financial
Reporting Standards ("IFRS"). It is therefore considered to
be a non-IFRS measure. Accordingly, the measure may not be
comparable to similar measures presented by other issuers.
This measure is presented and described in this management report
in order to provide shareholders and potential investors with
additional information regarding the company's liquidity and
ability to generate funds to finance its activities. For the third
quarter, Adjusted EBITDA amounts to $1.2 M compared with $1.6 M for
the same period of the previous year. Increased selling
expenses and lower level of sales of nearly $800,000 from the
previous period were mainly responsible for this decrease. For the
nine month period ended on September 30, 2011, Adjusted EBITDA
increased 22% or $600,000 to $3.3 M compared with $2.7 M for the
same period of the previous year. The Adjusted EBITDA margin
percentage increased by 2% to 16% versus 14% during the period. NET
PROFIT The company's net profit for the third quarter of fiscal
year 2011 amounts to $552,000 compared with $743,000 for the same
quarter of the previous fiscal year. This decrease in net
profit is due to the same factors previously explained in the
Adjusted EBITDA section namely, the increase in selling expenses,
combined with the decrease in the sales. For the nine month ended
on September 30, 2011, net profit is $924,000 compared with a net
profit of $477,000 for the same period of the previous fiscal year,
representing a 94% improvement from the previous year and is the
result of management's focus to maximize profitability. OUTLOOK Mr.
Gaudreau concluded that: "Despite experiencing a decrease in sales
in the third quarter, we continue to outperform the industry, and
the 2011 first nine months results represent growing sales,
increasing Adjusted EBITDA margin by 2% and Net Income improvement
of almost 100% over the prior year. This shall improve the value of
our company. The final quarter of the current fiscal year seems to
be off to a good start compared with last year. The quarter
sales billed since early October 2011, the current level of orders
in hand, as well as the current discussions with our present and
potential customers indicates that we are expecting to at least
meet last year's sales. In addition, we have begun performing
subcontracting work and are in discussions to obtain other
assignments in order to utilize our equipment in shoulder periods."
About NOVIK Novik (NVK) is a leader in the design, manufacturer and
distribution of innovative polymer exterior siding, roofing
coverings and accessories that replace traditional materials such
as stone, brick or wood shingles. These products target the
world-wide residential and commercial construction industry.
Forward-looking statements contained in this press release involve
known and unknown risks, uncertainties or other factors that may
cause actual results, performance or achievements of the company to
be materially different from any future results, performance or
achievements expressed or implied by such forward-looking
statements. Novik Inc. CONTACT: Source : Novik inc.For
further information:Michel GaudreauPresidentTel. : (418)
878-6161E-mail : micgau@novik.comPascal Bouthot CAVice-President,
FinancesTel. : (418) 878-6161E-mail : pasbou@novik.com
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