MONTREAL, QUEBEC -- (Marketwire) -- 01/08/13 -- Velan Inc. (TSX: VLN) (the "Company"), a world-leading manufacturer of industrial valves, announced today its financial results for its third quarter ended November 30, 2012.
Three-month periods Nine-month periods ended ended November 30 November 30(millions of U.S. dollars, excluding per share amounts) 2012 2011 2012 2011 ------------------------------------------------Sales $134.2 $118.9 $358.5 $319.4Gross profit 33.3 27.3 83.5 64.3Gross margin % 24.8% 23.0% 23.3% 20.1%Net income (loss) attributable to Subordinate and Multiple Voting Shares 5.7 4.0 9.7 2.0Net income (loss) per share - Basic 0.26 0.18 0.44 0.09- Diluted 0.26 0.18 0.44 0.09
Third Quarter Fiscal 2013 (unless otherwise noted, all comparisons are to the third quarter of fiscal 2012):
-- Net earnings(1) amounted to $5.7 million or $0.26 per share compared to $4.0 million or $0.18 per share last year. Excluding currency impacts, the Company would have reported net earnings(1) of $5.5 million or $0.25 per share this year compared to $2.1 million or $0.10 per share last year. Further excluding the results of Velan ABV S.p.A. ("ABV"), an Italian valve manufacturer acquired in the prior fiscal year, and the effects of purchase price accounting, the Company would have reported net earnings(1) of $5.6 million or $0.25 per share this year compared to $4.7 million or $0.21 per share last year.-- Net new orders received ("bookings") amounted to $83.3 million, a decrease of $10.9 million or 11.6% compared to last year. Excluding currency impacts, the decrease would have been $21.2 million or 22.5%. The Company ended the quarter with a backlog of $575.7 million, a decrease of $86.1 million since the beginning of the current fiscal year. Excluding currency impacts, the backlog would have decreased by $76.3 million over the same period to $585.5 million.-- Sales amounted to $134.2 million, an increase of $15.3 million or 12.9%. Excluding currency impacts, sales would have increased by $21.3 million or 18.1%.-- Gross margin increased by 1.8 percentage points from 23.0% to 24.8%. Excluding currency impacts, the gross margin percentage would have increased by 2.5 percentage points in the quarter. Further excluding the results of ABV and the effects of purchase price accounting, gross margin would have increased by 0.9 percentage points in the quarter.-- Foreign currency impacts: -- Based on average exchange rates, the euro weakened 5.7% against the U.S. dollar when compared to the same period last year. This weakening resulted in the Company's net profits from its European subsidiaries being reported as lower U.S. dollar amounts in the current quarter. -- Based on average exchange rates, the Canadian dollar strengthened 0.5% against the U.S. dollar when compared to the same period last year. This strengthening resulted in the Company's Canadian dollar expenses being reported as higher U.S. dollar amounts in the current quarter. -- The Korean won strengthened 4.7% against the U.S. dollar when comparing the spot rate at the beginning of the period to the period end rate. This strengthening resulted in the Company recording foreign exchange gains in the current quarter upon conversion of the balance sheet of its Korean subsidiary whose functional currency is the U.S. dollar. -- The net impact of these three currency swings was generally favourable to the Company's quarterly results since the positive impact of the stronger Korean won outweighed the negative impacts of a weaker euro and stronger Canadian dollar.