ADF Group Announces the Results for the First Quarter Ended April 30, 2020


  • Revenues up by 23% compared with the same period a year ago.
  • Net income of $68,000.
  • $65.0 million worth of new contracts signed in the first quarter.
  • Order backlog reached $343.3 million as at April 30, 2020, up compared with January 31, 2020.
  • COVID-19 had limited impact on ADF's operations during the quarter ended April 30, 2020.

TERREBONNE, QC, June 10, 2020 /CNW Telbec/ - ADF GROUP INC. ("ADF" or the "Corporation") Ticker symbol: (TSX: DRX), recorded revenues of $45.8 million during the first quarter ended April 30, 2020, compared with $37.1 million for the same quarter a year ago.

The gross margin, as a percentage of revenues, went from 15.5% during the quarter ended April 30, 2019, to 10.6% during the three-month period ended April 30, 2020. Gross margin for the three months ended April 30, 2020, is slightly higher than the previous quarter's gross margin ended January 31, 2020, and reflects the level of fabrication hours and prices of recently signed and ongoing projects. It should be noted that gross margin, as a percentage of revenues, for the same period a year earlier, had benefited from the settlement of certain contractual changes.

For the first quarter ended April 30, 2020, ADF recorded a net income of $68,000 ($0.00 basic and diluted per share) compared with a net income of $1.6 million ($0.05 basic and diluted per share) a year ago.

The order backlog of the Corporation stood at $343.3 million as at April 30, 2020, compared with $328.7 million as at January 31, 2020. The current order backlog will extend until end of the fiscal year ending January 31, 2022.

On April 30, 2020, working capital stood at $28.5 million. Operational activities generated over $12.0 million in liquidities during the quarter ended April 30, 2020. The Corporation remains therefore in a sound position to support its ongoing operations and pursue its development projects.

Financial Highlights

Three-Month Periods Ended April 30,



(In thousands of CA$, and dollars per share)






Earnings before interest, tax, depreciation and amortization (EBITDA)



Net income before income tax recovery



Net income for the period



—    Per share (basic and diluted)



(In thousands)



Average number of outstanding shares (basic and diluted)



New Orders

On March 23, 2020, the Corporation announced the award of two new contracts in North America worth a total of $65.0 million, one as part of the construction of a new industrial building in the transportation sector in Quebec, and the other consists in the construction of a new commercial building in California. In both cases, ADF was entrusted with the design and engineering of connections, the fabrication, including the procurement of raw material (steel) and industrial coating, as well as the installation of these new structures. These new contracts will be carried out at both of ADF's fabrication plants, one in Terrebonne, Quebec and the other in Great Falls, Montana. Fabrication work on both new projects is scheduled to start in the month of July 2020 and extend over a 12-month period.


"We continued to grow our order backlog with the announcement of new contracts totaling $65.0 million in the first quarter ended April 30, 2020, and also significantly improved our cash position. However, like many others, this Coronavirus pandemic has brought us into uncharted territory. Although this pandemic currently has a mixed impact on our operations, we stay abreast of economic development and trends" indicated Mr. Jean Paschini, Co-Chairman of the Board of Directors and Chief Executive Officer. 

Mr. Paschini added "In these exceptional times, we must underscore the concerted efforts by our employees, and for this reason, we would like to acknowledge and thank them.".


Since the beginning of this Coronavirus pandemic and at the date hereof, all of our facilities, including all of our job sites, remained open and operational.

However, in order for our fabrication plant in Terrebonne, Quebec, to remain in operation, and in addition to the required sanitary and physical distancing measures, the Corporation had to limit the number of employees per work shift. While this has resulted in some operational limitations, the Corporation has nevertheless been able to maintain a sufficient level of fabrication in order to adequately serve its customers.

The Corporation introduced the telework program and implemented strategies to support appropriate physical distancing techniques for its staff who cannot work remotely. It should be noted that the various measures taken in response to the pandemic have also resulted in some additional costs.

This situation is evolving rapidly and the Corporation continues to monitor and mitigate developments affecting its staff, suppliers, customers and the general public as much as it can.  Although the impact of COVID-19 on ADF's operations is limited for the time being, the extent to which the virus can have an impact on our results will depend on future developments, which are very uncertain and cannot be predicted at this time, including new information that may emerge regarding the severity of COVID-19 and the measures taken to contain it or address its impact, among others.

Conference Call with Investors

A conference call with investors is scheduled for today, June 10, 2020, at 10 a.m. (Montreal time) to discuss the results of Corporation first quarter results ended April 30, 2020.

To take part in the conference call, dial 1-888-390-0620, a few minutes prior to the conference call scheduled start time. A replay of this conference call will be available from 1:00 p.m. today, until midnight, Wednesday June 17, 2020, by dialing 1-888-390-0541, followed by the access code 378870 #.

The conference call (audio) will also be available at Members of the media are invited to listen in.

Annual Meeting of Shareholders by Webcast

ADF Group is holding its Annual Meeting of Shareholders today, June 10, 2020, at 11:00 a.m. (Montreal time), by way of a live webcast that will be available at:

Important notice

In light of the ongoing public health concerns related to the COVID-19 outbreak and in order to comply with the measures imposed by the federal and provincial governments, the Corporation is encouraging shareholders and others not to attend the meeting in person.

Shareholders are urged to vote on the matters before the meeting by proxy and to view the meeting online. Shareholders will be able to submit questions to management of the Corporation through the webcast.

The Corporation may take additional precautionary measures in relation to the meeting in response to further developments in the COVID-19 outbreak.

About ADF Group Inc.

ADF Group Inc. is a North American leader in the design and engineering of connections, fabrication, including industrial coatings, and installation of complex steel structures, heavy steel built-ups, as well as in miscellaneous and architectural metals for the non-residential construction industry. ADF Group Inc. is one of the few players in the industry capable of handling highly technically complex mega projects on fast-track schedules in the commercial, institutional, industrial and public sectors. The Corporation operates two fabrication plants and two paint shops, in Canada and in the United States.

Non-IFRS Measures

Earnings before interest, taxes, depreciation and amortization ("EBITDA") is not a performance measure recognized by IFRS standards, and is not likely to be comparable to similar measures presented by other issuers. Management, as well as investors, consider this to be useful information to assist them in assessing the Corporation's profitability and ability to generate funds to finance its operations. Refer to the section "Non-GAAP Measures" of the Corporation's Management's Discussion and Analysis for the definition of this metric and reconciliation to the most comparable IRFS measures.

Forward-Looking Information

This press release contains forward-looking statements reflecting ADF objectives and expectations. These statements are identified by the use of verbs such as "expect" as well as by the use of future or conditional tenses. By their very nature these types of statements involve risks and uncertainty. Consequently, reality may differ from ADF's expectations.

All amounts are in Canadian dollars, unless otherwise indicated.


ADF GROUP INC., Mr. Jean Paschini, Co-Chair of the Board of Directors and Chief Executive Officer; Mr. Jean-François Boursier, CPA, CA, Chief Financial Officer, Telephone: (450) 965-1911 (#2283) / Website: