News Column

5N Plus Reports Financial Results for the First Quarter with Revenues and EBITDA Reaching Highest Levels over Last Two Years

May 6, 2014

MONTREAL, May 6, 2014 /CNW Telbec/ -5N Plus Inc. (TSX: VNP), the leading producer of specialty metal and chemical products, today reported financial results for the first quarter ended March 31, 2014.

• Revenues for the first quarter 2014 reached $142.4 million, their highest level since Q1 2012, which corresponds to an increase of $24 million or 20% compared to $118.4 million for the first quarter of 2013.



• EBITDA1 for the first quarter 2014 also reached its highest level since Q1 2012, attaining $10.5 million up from $10.1 million for the first quarter of 2013.



• Net earnings for the first quarter 2014 reached $4.5 million or $0.05 per share compared to $5.5 million or $0.07 per share for the first quarter of 2013.



• Net debt1 was in line with year-end 2013 and stood at $60.6 million as at March 31st, 2014 down from $125.8 million as at March 31st, 2013.



• Bookings reached $159.6 million in the quarter leading to an increase in backlog which now stands at $187.3 million, its highest level since Q2 2012.  This represents a 34% increase in bookings and a 13% increase in backlog over the corresponding figures of the first quarter of 2013 which were $118.9 million and $166.3 million respectively.



Richard Perron was appointed Chief Financial Officer effective March 17, 2014 and subsequently Bertrand Lessard was appointed Chief Operating Officer effective April 28, 2014.



Jacques L'Ecuyer, President and Chief Executive Officer, said "We reported strong revenues and bookings in the first quarter and an improvement in profitability following increasing demand, especially for our bismuth based products, and a more favorable underlying commodity pricing trend.  We also reported strong bookings and an increase in backlog reflecting the expected beginning of the year increase in demand as well as a more bullish outlook from many customers on their overall requirements. "

Mr. L'Ecuyer continued, "Debt levels remained roughly constant when compared to the previous quarter despite some increases in underlying commodity prices.  This is in line with our efforts aimed at improving efficiency and reducing costs and working capital throughout the group."

Mr. L'Ecuyer concluded, "We made further strides in the quarter towards executing on our growth plan by significantly strengthening our senior management team.  Both Richard and Bertrand bring very relevant experience in closely related industries which will help us meet our short and long term objectives.  We also made important changes to our board of directors following the retirement of our chairman Dennis Wood and of John Davis and expect our three new board members, Jennie Hwang, Jim Fahey and Nathalie Le Prohon, to greatly contribute to our future success."

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' 2013 MD&A dated February 25, 2014 and note 11 of the unaudited interim condensed consolidated financial statements for the three-month periods ended March 31, 2014 and 2013 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.

UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(Figures in thousands of United States dollars)


    As at March 31,

2014
  As at December 31,

2013
    $   $
         
ASSETS        
Current        
Cash and cash equivalents   16,886   22,427
Temporary investments (restricted)   2,548   2,490
Accounts receivable   83,144   60,616
Inventories   176,353   174,374
Income tax receivable   6,563   8,455
Derivative financial assets   283   955
Other current assets   4,441   2,290
Total current assets   290,218   271,607
Property, plant and equipment   57,988   59,614
Intangible assets   12,273   13,143
Deferred tax asset   12,707   13,387
Investments accounted for using the equity method   467   444
Other assets   6,248   7,045
Total non-current assets   89,683   93,633
Total assets   379,901   365,240
         
LIABILITIES AND EQUITY        
Current        
Bank indebtedness and short-term debt   10,336   10,462
Trade and accrued liabilities   76,189   65,016
Income tax payable   6,577   3,660
Derivative financial liabilities   3,595   3,284
Long-term debt due within one year   4,184   4,439
Total current liabilities   100,881   86,861
Long-term debt   65,544   68,346
Deferred tax liability   1,030   1,600
Retirement benefit obligation   15,765   15,887
Derivative financial liabilities   572   953
Other liabilities   884   1,064
Total non-current liabilities   83,795   87,850
Total liabilities   184,676   174,711
Shareholders' equity   194,884   190,052
Non-controlling interest   341   477
Total equity   195,225   190,529
Total liabilities and equity   379,901   365,240






5N PLUS INC.

UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF EARNINGS

For the three-month periods ended March 31, 2014 and 2013

(Figures in thousands of United States dollars, except per share information)


    March 31, 2014   March 31, 2013
    $   $
         
Revenues   142,379   118,389
Cost of sales   122,743   99,388
Selling, general and administrative expenses   9,762   9,627
Other expenses   2,754   2,978
Share of (earnings) loss from joint ventures   (23)   136
    135,236   112,129
Operating income   7,143   6,260
         
Gain on disposal of property, plant and equipment   1,312   -
Financial expense (income)        
Interest on long-term debt   1,140   1,842
Other interest expense   276   1,470
Foreign exchange and derivative loss (gain)   16   (3,017)
    1,432   295
Earnings before income taxes   7,023   5,965
Income tax expense   2,504   427
Net earnings for the period   4,519   5,538
         
Attributable to:        
Equity holders of 5N Plus Inc.   4,655   5,371
Non-controlling interest   (136)   167
    4,519   5,538
         
Earnings per share attributable to equity holders of 5N Plus Inc.   0.06   0.06
Basic earnings per share   0.05   0.07
Diluted earnings per share   0.05   0.07






5N PLUS INC.

(Figures in thousands of United States dollars)


Cash Flows                        
                         
                Q1 2014   Q1 2013   % Change
                $   $    
Funds from operations1               6,806   4,608   48%
Net changes in non-cash working capital items               (9,553)   6,244   -253%
Operating activities               (2,747)   10,852   -125%
Investing activities               (332)   (2,586)   -87%
Financing activities               (2,436)   (6,040)   -60%
Effect of foreign exchange rate changes on cash and cash equivalents related to operations   (26)   460   -106%
Net (decrease) increase in cash and cash equivalents   (5,541)   2,686   -306%
                         
                         
Revenues by Segment                        
                         
                Q1 2014   Q1 2013   % Change
                $   $    
Electronic Materials Segment               48,141   48,356   0.%
Eco-Friendly Materials Segment               94,238   70,033   35%
Total Revenues               142,379   118,389   20%
                         
                         
EBITDA and Adjusted EBITDA                        
                         
                Q1 2014   Q1 2013   % Change
                $   $    
Electronic Materials               6,948   7,078   2%
Eco-Friendly Materials               6,405   5,067   26%
Corporate               (2,852)   (2,030)   40%
EBITDA1               10,501   10,115   4%
                         
Impairment of inventory               -   -    
Adjusted EBITDA1               10,501   10,115   4%
                         
                         
Backlog and Bookings                        
    BACKLOG1   BOOKINGS1
    Q1 2014   Q4 2013   Q1 2013   Q1 2014   Q4 2013   Q1 2013
    $   $   $   $   $   $
Electronic Materials   79,362   80,382   92,797   47,121   54,337   40,435
Eco-Friendly Materials   107,968   89,691   73,493   112,516   101,800   78,455
Total   187,330   170,073   166,290   159,637   156,137   118,890






____________________________

1 See Non-IFRS Measures

 

 

 

SOURCE 5N Plus Inc.


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Source: Canada Newswire