ADF Group Inc. Announces First Quarter Results Ended April 30, 2021


—      At $50.4 million, 10% increase in revenues compared to the same period last year.

—      Net income of $4.4 million, up from the same quarter last year.

—      Order backlog at $394.9 million as of April 30, 2021.

TERREBONNE,QC, June 9, 2021 /CNW Telbec/ - ADF GROUP INC. ("ADF" or the "Corporation") (TSX: DRX) recorded revenues of $50.4 million during the first quarter ended April 30, 2021, compared with $45.8 million for the same period a year ago. 

Gross margin, as a percentage of revenues, increased from 10.6% in the three-month period ended April 30, 2020, to 15.4% for the same period ended April 30, 2021. Gross margin for the quarter ended April 30, 2021, benefited from a $1.6 million subsidy from Canada Emergency Wage Subsidy Program ("CEWS").

Considering the improved gross margin and lower selling and administrative expenses, earnings before interest, tax, depreciation and amortization (EBITDA), at $6.1 million, is $3.1 million higher than April 30, 2020.

For the first quarter ended April 30, 2021, ADF recorded a net income of $4.4 million ($0.13 basic and diluted per share) compared with a net income of $68,000 ($0.00 basic and diluted per share) for the same period a year ago.

The Corporation's order backlog reached $394.9 million at April 30, 2021, compared with $436.2 million at January 31, 2021. The contracts included in the order backlog will be progressively completed by the end of the fiscal year ending January 31, 2023.

As at April 30, 2021, the Corporation had a working capital of $39.1 million. Operating activities during the quarter ended April 30, 2021, generated close to $11.8 million in liquidities. As a result, the Corporation remains in a sound position to support its ongoing operations and carry out its development projects.

Financial Highlights

Three-Month Periods Ended April 30,



(in thousands of Canadian dollars and in dollar per share)






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



Net income before income tax expense (recovery)



Net income for the period



—      Per share (basic and diluted)



(In thousands)



Average number of outstanding shares (basic and diluted)




"The number of bids that have now reached the negotiation phase continues to be very interesting, and allows us to see the continued growth of our order backlog. While the growth of the backlog will continue to keep liquidities under a certain pressure, attributable to the fabrication start of recently signed major projects, we are nevertheless in a sound financial position to absorb this pressure, continue to grow revenues, and generate liquidities, in an orderly manner" said Mr. Jean Paschini, Co-Chair of the Board of Directors and Chief Executive Officer.

Mr. Paschini concluded by adding, "We cannot ignore the mobilization of our staff across Canada and the United States, particularly since the outbreak of COVID-19, which has made their work that much more difficult. For this reason, we would like to acknowledge the great work they are doing, and would like to thank them for their daily efforts."


The Corporation has taken all necessary steps to protect its employees and business partners, and will continue to follow the advice and recommendations of local authorities wherever the Corporation conducts business. These measures have resulted in operational costs and inefficiencies that have been offset by the government incentives previously mentioned. This situation is changing rapidly and the Corporation will continue to monitor and mitigate development affecting its personnel, suppliers, customers and the general public to the extent it can.

Conference Call with Investors

A conference call with investors is scheduled for this morning, June 9, 2021 at 10 a.m. (Montreal time) to discuss the results of Corporation first quarter results ended April 30, 2021.

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 pm today, until 11:59 p.m., Wednesday, June 16, 2021, by dialing 1 (888) 390-0541, followed by the access code 833770#.

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

Annual General Meeting of Shareholders

ADF Group Inc.'s annual shareholder meeting will take place today, June 9, 2021, at 11:00 a.m. (Montreal time) via webcast 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 by way of a live webcast that will be available at the link above-mentioned. Shareholders will be able to submit questions to management of the Corporation through the webcast at the conclusion of the meeting.

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 the application of industrial coatings, and installation of complex steel structures, heavy steel built-ups, as well as in miscellaneous and architectural metals for the non-residential infrastructure sector. 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, and a Construction Division in the United States, which specializes in the installation of steel structures and other related products.

Forward-Looking Information | This press release contains forward-looking statements reflecting ADF's 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.

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 IFRS measures.

All amounts are in Canadian dollars, unless otherwise indicated.


Jean Paschini, Co-Chairman of the Board of Directors and Chief Executive Officer, Jean-François Boursier, CPA, CA, Chief Financial Officer, Telephone: (450) 965-1911 (#2283) / Website: