MONTREAL, Aug. 7, 2014 /CNW Telbec/ - 5N Plus Inc. (TSX: VNP), the leading producer of specialty metal and chemical products, today reported financial results for the second quarter ended June 30, 2014.
- Revenues for the second quarter of 2014 reached $136.6 million, which corresponds to an increase of $24.0 million or 21% compared to $112.6 million for the second quarter of 2013.
- Adjusted EBITDA1 for the second quarter of 2014 also reached its highest level in the last 8 quarters, attaining $10.8 million up from $6.5 million for the second quarter of 2013 with EBITDA1,2 lying at $11.5 million also close to its highest level since the last 8 quarters when excluding the impact of the non-recurring gain recorded in the second quarter of 2013.
- Net earnings for the second quarter of 2014 reached $4.4 million or $0.05 per share compared to $34.3 million or $0.41 per share for the second quarter of 2013, positively impacted by the MCP litigation settlement of $45.2 million or $0.54 per share.
- Net debt1 stood at $70.4 million, up from March 31, 2014 but down from $84.7 million as at June 30, 2013.
- Bookings1 of $99.6 million in the quarter, in line with the second quarter of 2013. Bookings for the six-month period ended June 30, 2014 increased by 19% and stood at $259.3 million compared to $218.5 million for the same period last year.
- On April 3, 2014, 5N Plus announced that it had acquired the remaining 33.33% ownership interest in its subsidiary Sylarus Technologies, LLC, located in St. George, Utah, and had changed its name to 5N Plus Semiconductors LLC.
- On May 5, 2014, 5N Plus announced that it had completed the acquisition of all of the issued and outstanding shares in the capital of AM&M Advanced Machine and Materials Inc. ("AM&M").
- On May 29, 2014, 5N Plus announced that it had entered into new supply agreements with First Solar, Inc., the world's leading thin-film solar module manufacturer, covering First Solar's compound semiconductor needs until March 31, 2019.
- On June 26, 2014, 5N Plus announced the closing of its offering of CA$60 million of convertible unsecured subordinated debentures and that the underwriters had purchased an additional CA$6 million.
Jacques L'Ecuyer, President and Chief Executive Officer, said "We continued to improve profitability, reporting another strong quarter in terms of EBITDA supported by increasing demand, especially for our bismuth based products, and a more favorable sales mix and underlying commodity pricing trend. We continue our efforts aimed at improving efficiency, reducing costs and working capital throughout the group.
Mr. L'Ecuyer continued, "We made progress in the quarter towards executing on our growth plan by completing the acquisition of the remaining 33.33% ownership interest in our subsidiary, Sylarus Technologies LLC, a germanium substrate supplier, changing its name to 5N Plus Semiconductors LLC, and we acquired all the issued and outstanding shares in the capital of AM&M and its metal powder atomization technology for electronic packaging, solar modules and additive manufacturing applications."
Mr. L'Ecuyer concluded, "In order to support our operations and growth plan, we successfully completed the issuance of a convertible subordinated debenture for a total amount of CA$66.0 million ($60.8 million) before fees. Combined with the new credit facility announced today, this will further improve our financial flexibility and enable us to execute on several growth initiatives which we are currently working on."
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 13 of the unaudited interim condensed
consolidated financial statements for the three and six-month periods
ended June 30, 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 June 30, 2014 | As at December 31, 2013 | |||
| $ | $ | |||
| ASSETS | ||||
| Current | ||||
| Cash and cash equivalents | 21,655 | 22,427 | ||
| Temporary investments (restricted) | 2,377 | 2,490 | ||
| Accounts receivable | 83,436 | 60,616 | ||
| Inventories | 183,932 | 174,374 | ||
| Income tax receivable | 4,733 | 8,455 | ||
| Derivative financial assets | 373 | 955 | ||
| Other current assets | 2,231 | 2,290 | ||
| Total current assets | 298,737 | 271,607 | ||
| Property, plant and equipment | 63,061 | 59,614 | ||
| Intangible assets | 14,826 | 13,143 | ||
| Deferred tax asset | 12,189 | 13,387 | ||
| Investments accounted for using the equity method | 347 | 444 | ||
| Other assets | 5,706 | 7,045 | ||
| Total non-current assets | 96,129 | 93,633 | ||
| Total assets | 394,866 | 365,240 | ||
| LIABILITIES AND EQUITY | ||||
| Current | ||||
| Bank indebtedness | 8,937 | 10,462 | ||
| Trade and accrued liabilities | 55,142 | 65,016 | ||
| Income tax payable | 5,972 | 3,660 | ||
| Derivative financial liabilities | 1,940 | 3,284 | ||
| Long-term debt due within one year | 845 | 4,439 | ||
| Total current liabilities | 72,836 | 86,861 | ||
| Long-term debt | 35,339 | 68,346 | ||
| Convertible debentures | 49,309 | - | ||
| Deferred tax liability | 1,439 | 1,600 | ||
| Retirement benefit obligation | 16,669 | 15,887 | ||
| Derivative financial liabilities | 9,478 | 953 | ||
| Other liabilities | 13,491 | 1,064 | ||
| Total non-current liabilities | 125,725 | 87,850 | ||
| Total liabilities | 198,561 | 174,711 | ||
| Shareholders' equity | 196,306 | 190,052 | ||
| Non-controlling interest | (1) | 477 | ||
| Total equity | 196,305 | 190,529 | ||
| Total liabilities and equity | 394,866 | 365,240 |
5N PLUS INC.
UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF EARNINGS
For the three-month and six-month periods ended June 30, 2014 and 2013
(Figures in thousands of United States dollars, except per share
information)
| Three months | Six months | ||||||
| 2014 | 2013 | 2014 | 2013 | ||||
| $ | $ | $ | $ | ||||
| Revenues | 136,597 | 112,637 | 278,976 | 231,026 | |||
| Cost of sales | 117,041 | 106,645 | 239,784 | 206,033 | |||
| Selling, general and administrative expenses | 10,041 | 10,150 | 19,803 | 19,777 | |||
| Other expenses (income), net | 1,425 | (41,293) | 4,179 | (38,315) | |||
| Share of loss from joint ventures | 120 | 117 | 97 | 253 | |||
| 128,627 | 75,619 | 263,863 | 187,748 | ||||
| Operating income | 7,970 | 37,018 | 15,113 | 43,278 | |||
| Gain on disposal of property, plant and equipment | - | - | 1,312 | - | |||
| Financial expenses | |||||||
| Interest on long-term debt | 1,322 | 1,576 | 2,462 | 3,418 | |||
| Imputed interest and other interest expense | 409 | 245 | 685 | 1,715 | |||
| Foreign exchange and derivative (gain) loss | (714) | 1,308 | (698) | (1,709) | |||
| 1,017 | 3,129 | 2,449 | 3,424 | ||||
| Earnings before income taxes | 6,953 | 33,889 | 13,976 | 39,854 | |||
| Income taxes expense (recovery) | 2,517 | (392) | 5,021 | 35 | |||
| Net earnings for the period | 4,436 | 34,281 | 8,955 | 39,819 | |||
| Attributable to: | |||||||
| Equity holders of 5N Plus Inc. | 4,436 | 34,185 | 9,091 | 39,556 | |||
| Non-controlling interest | - | 96 | (136) | 263 | |||
| 4,436 | 34,281 | 8,955 | 39,819 | ||||
| Earnings per share attributable to equity holders of 5N Plus Inc. | $0.05 | $0.41 | $0.11 | $0.47 | |||
| Basic earnings per share | $0.05 | $0.41 | $0.11 | $0.47 | |||
| Diluted earnings per share | $0.05 | $0.41 | $0.11 | $0.47 | |||
5N PLUS INC.
(Figures in thousands of United States dollars)
| Cash Flows | ||||||
| Q2 2014 | Q2 2013 | % Change | YTD 2014 | YTD 2013 | % Change | |
| $ | $ | $ | $ | |||
| Funds from operations1 | 5,774 | 1,560 | 270% | 12,580 | 6,168 | 104% |
| Net change in non-cash working capital items | (16,665) | 1,272 | (1410%) | (26,218) | 7,516 | (449%) |
| Operating activities | (10,891) | 2,832 | (485%) | (13,638) | 13,684 | (200%) |
| Investing activities | (4,986) | (2,189) | 128% | (5,318) | (4,775) | 11% |
| Financing activities | 20,594 | 2,939 | 601% | 18,158 | (3,101) | 686% |
| Effect of foreign exchange rate changes on cash and cash equivalents related to operations | 52 | (315) | 117% | 26 | 145 | (82%) |
| Net (decrease) increase in cash and cash equivalents | 4,769 | 3,267 | 46% | (772) | 5,953 | (113%) |
| Revenues by Segment | ||||||
| Q2 2014 | Q2 2013 | % Change | YTD 2014 | YTD 2013 | % Change | |
| $ | $ | $ | $ | |||
| Electronic Materials Segment | 44,544 | 42,788 | 4% | 92,685 | 91,144 | 2% |
| Eco-Friendly Materials Segment | 92,053 | 69,849 | 32% | 186,291 | 139,882 | 33% |
| Total Revenues | 136,597 | 112,637 | 21% | 278,976 | 231,026 | 21% |
| Adjusted EBITDA | ||||||
| Q2 2014 | Q2 2013 | % Change | YTD 2014 | YTD 2013 | % Change | |
| $ | $ | $ | $ | |||
| Electronic Materials | 7,157 | 5,602 | 28% | 14,105 | 12,680 | 11% |
| Eco-Friendly Materials | 6,241 | 2,958 | 111% | 12,646 | 8,025 | 58% |
| Corporate | (2,582) | (2,017) | 28% | (5,434) | (4,047) | 34% |
| Adjusted EBITDA1 | 10,816 | 6,543 | 65% | 21,317 | 16,658 | 28% |
| Backlog and Bookings | ||||||
| BACKLOG1 | BOOKINGS1 | |||||
| Q2 2014 | Q1 2014 | Q2 2013 | Q2 2014 | Q1 2014 | Q2 2013 | |
| $ | $ | $ | $ | $ | $ | |
| Electronic Materials | 77,278 | 79,362 | 82,681 | 42,460 | 47,121 | 32,672 |
| Eco-Friendly Materials | 73,085 | 107,968 | 70,596 | 57,170 | 112,516 | 66,952 |
| Total | 150,363 | 187,330 | 153,277 | 99,630 | 159,637 | 99,624 |
___________________________________
1 See Non-IFRS Measures
2 The comparative periods have been restated to reflect a change in
EBITDA1 definition. See Selected Quarterly Financial Information
SOURCE 5N Plus Inc.
Jean Mayer
Vice President, Legal Affairs and Corporate Secretary
5N Plus Inc.
(514) 856-0644 x6178
[email protected]