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5N Plus Inc. Reports Fourth Quarter Results and Record Sales and Earnings for Fiscal Year 2009

^{Published on 2009-08-12 17:09:21, Last Modified on 2009-08-12 17:09:35 - Market Wire}
 

 MONTREAL, Aug. 12 /CNW Telbec/ - 5N Plus Inc. (TSX: VNP) today reported financial results for its fourth quarter and fiscal year ended May 31, 2009 including record levels of earnings and sales for the fiscal year. Net earnings for the fourth quarter were $5,708,451 or $0.13 per share, representing a 111% increase over net earnings of $2,703,068 or $0.06 per share for the fourth quarter of the previous fiscal year. For the fiscal year ended May 31, 2009, net earnings were at a record level of $20,868,124 or $0.46 per share, representing an increase of 191% over net earnings of $7,175,011 or $0.20 per share for the previous fiscal year. EBITDA(1) for the fourth quarter was $8,576,126, representing an increase of 119% over EBITDA of $3,916,750 for the fourth quarter of the previous fiscal year. EBITDA reached a record level of $31,409,878 for the fiscal year ended May 31, 2009, an increase of 178% over EBITDA of $11,318,178 for the previous fiscal year. Sales for the fourth quarter were $18,057,223, representing an increase of 92% over sales of $9,423,908 for the fourth quarter of the previous fiscal year. Sales for the fiscal year ended May 31, 2009 were at a record level of $69,373,117, an increase of 124.0% compared to sales of $30,972,941 for the previous fiscal year. The backlog(2) of orders expected to translate into sales over the following twelve months stood at $52,224,368 at the fiscal year end which represents a 73 % increase over its level of $30,174,000 at the end of the previous fiscal year. Cash flow from operating activities was $4,965,655 for the quarter and $16,239,645 for the fiscal year ended May 31, 2009. This compares with a cash consumption of $3,519,086 and $2,163,317 for the corresponding periods of the previous fiscal year. Cash and cash equivalents increased by $5,489,787 during the fiscal year to $65,066,530 as at May 31, 2009, up from $59,576,743 as at May 31, 2008. Shareholders' equity also increased during the fiscal year to $112,368,764 as at May 31, 2009 up from $90,962,804 one year earlier. Jacques L'Ecuyer, President and Chief Executive Officer, said "The results of our fourth quarter are in line with those of the previous two quarters and complete a record breaking 2009 fiscal year which was transformational for 5N Plus in many respects. From an operational standpoint, fiscal 2009 was the year in which we completed our international expansion and successfully commissioned our new German facility in Eisenhuttenstadt which began shipments of solar grade products during the first quarter of the fiscal year. This $18 million investment, our largest project ever, was completed on time and within budget enabling us to better serve our European customers and develop a platform for future growth. From a financial standpoint, fiscal 2009 was a record breaking year with sales, EBITDA and earnings all more than doubling when compared to the previous fiscal year, in spite of the financial turmoil and the difficult economic environment. This has allowed us to further strengthen our balance sheet and cash position providing us with the flexibility needed to implement our growth plan which calls for investments aimed at positioning our firm as the leading electronic materials company through diversification of our product offering and accretive acquisitions. Fiscal year 2009 was also the year in which we truly became an international company with operations and employees in two different countries. Interactions and close collaboration between our two facilities has been a determining factor in our ability to improve operational performance, sales and margins and meet the growing demands of our customers." Mr. L'Ecuyer continued, "Although 2009 has been more difficult than initially anticipated for the solar industry, we have continued to experience an increasing demand for our solar grade products for most of the year. The recent extension of our supply agreements with our key customer and their corresponding commitments is perhaps the best example of this." Mr. L'Ecuyer concluded, "I would like to thank our employees for a truly outstanding year as well as our shareholders for their confidence and continuing support." The audited consolidated financial statements of 5N Plus, as well as the Management's Report of fiscal year ended May 31, 2009 are available on the 5N Plus website, at [ www.5nplus.com ] or at [ www.sedar.com ] Webcast Information The Company will host a conference call at 8:00 AM Eastern Time on Thursday, August 13, 2009 with financial analysts to discuss the fourth quarter and year ended May 31, 2009. All interested parties are invited to participate to the live broadcast on the company's Web site at [ www.5nplus.com ]. A replay of the webcast and a recording of the Q&A will be available until August 27, 2009. About 5N Plus Inc. 5N Plus draws its name from the purity of its products, 99.999% (five nines or 5N) and more. 5N Plus, which has its head office in Montreal, Quebec, develops and produces high-purity metals and compounds for electronic applications and provides its customers with recycling solutions. The Company is an integrated producer with both primary and secondary refining capabilities. 5N Plus focuses on specialty metals such as tellurium, cadmium and selenium and on related compounds such as cadmium telluride and cadmium sulphide. The Company's products are critical precursors in a number of electronic applications, including the rapidly-expanding solar (thin-film photovoltaic) market, for which 5N Plus is a major supplier of cadmium telluride, and the radiation detector market. -------------------------------------- (1) EBITDA is a non-GAAP measure and means earnings before financing costs, interest income, income taxes, depreciation and amortization and is presented on a consistent basis from period to period. The definition of this non-GAAP measure used by the Company may differ from that used by other companies. (2) Backlog is a non-GAAP measure that represents the expected value of orders we have received but have not yet executed and that are expected to translate into sales within the next 12 months. 5n Plus Inc. Consolidated Statements of Earnings Years ended May 31 ------------------------------------------------------------------------- (in Canadian dollars) 2009 2008 (Restated) ------------------------------------------------------------------------- Sales $ 69,373,117 $ 30,972,941 Cost of sales 34,174,231 14,649,152 -------------------------------- Gross profit 35,198,886 16,323,789 Expenses Selling and administrative 5,277,745 2,911,797 Depreciation of property, plant and equipment 2,154,552 1,048,886 Research and development 1,241,142 930,232 Foreign exchange gain (3,441,588) (124,710) Financial 377,449 360,903 Interest income (1,118,881) (419,901) -------------------------------- 4,490,419 4,707,207 -------------------------------- Earnings before undernoted items 30,708,467 11,616,582 Start-up costs, new plant 711,709 1,288,292 -------------------------------- Earnings before income taxes 29,996,758 10,328,290 Income taxes Current 7,727,016 3,395,315 Future 1,401,618 (242,036) -------------------------------- 9,128,634 3,153,279 -------------------------------- Net earnings $ 20,868,124 $ 7,175,011 ------------------------------------------------------------------------- Earnings per share Basic $ 0.46 $ 0.20 Diluted $ 0.45 $ 0.19 ------------------------------------------------------------------------- Weighted average number of common shares Basic 45,505,213 35,308,641 Diluted 45,876,122 36,884,776 ------------------------------------------------------------------------- 5N Plus Inc. Consolidated Balance Sheets As at May 31 ------------------------------------------------------------------------- (in Canadian dollars) 2009 2008 (Restated) ------------------------------------------------------------------------- Assets Current assets Cash and cash equivalents $ 65,066,530 $ 59,576,743 Accounts receivable 6,702,197 10,164,562 Inventories 27,054,960 12,727,564 Prepaid expenses and deposits 516,391 348,504 Foreign currency forward contracts 1,685,076 - Future income taxes 249,958 686,207 -------------------------------- 101,275,112 83,503,580 Property, plant and equipment 26,178,423 21,220,889 Grant receivable - 2,053,377 Future income taxes 662,639 909,536 Other assets 52,682 55,681 -------------------------------- $ 128,168,856 $ 107,743,063 -------------------------------- Liabilities and Shareholders' Equity Current liabilities Bank loan $ - $ 1,262,205 Accounts payable and accrued liabilities 6,791,675 7,486,227 Income taxes payable 3,021,632 1,754,114 Current portion of long-term debt 549,922 578,922 Current portion of other long-term liabilities 41,725 270,251 Future income taxes 311,897 - -------------------------------- 10,716,851 11,351,719 Long-term debt 3,997,923 4,547,028 Other long-term liabilities - 127,906 Deferred revenue 641,618 753,606 Future income taxes 443,700 - -------------------------------- 15,800,092 16,780,259 Shareholders' Equity Share capital 81,881,914 81,788,694 Contributed surplus 797,800 242,136 Accumulated other comprehensive income (111,048) - Retained earnings 29,800,098 8,931,974 -------------------------------- 112,368,764 90,962,804 -------------------------------- $ 128,168,856 $ 107,743,063 ------------------------------------------------------------------------- Reconciliation of EBITDA ------------------------------------------------ Three months ended May 31 ------------------------------------------------------------------------- 2009 2008 Increase ------------------------------------------------ Net earnings $ 5,708,451 $ 2,703,068 111.2 % Add (deduct): Income taxes 2,345,056 1,109,535 Financial expenses & Interest income (78,822) (193,590) Depreciation and amortization 601,441 297,737 ------------------------------------------------------------------------- EBITDA $ 8,576,126 $ 3,916,750 119.0 % ------------------------------------------------------------------------- ------------------------------------------------ Twelve months ended May 31 ------------------------------------------------------------------------- 2009 2008 Increase ------------------------------------------------ Net earnings $ 20,868,124 $ 7,175,011 190.8 % Add (deduct): Income taxes 9,128,634 3,153,279 Financial expenses & Interest income (741,432) (58,998) Depreciation and amortization 2,154,552 1,048,886 ------------------------------------------------------------------------- EBITDA $ 31,409,878 $ 11,318,178 177.5 % ------------------------------------------------------------------------- Cash Flows --------------------------------------------------------- Three months ended May 31 Twelve months ended May 31 --------------------------------------------------------- 2009 2008 2009 2008 ------------------------------------------------------------------------- Operating activities $ 4,965,655 $ (3,519,086) $ 16,239,645 $ (2,163,317) Financing activities (756,927) 48,935,874 (2,257,973) 76,297,401 Investing activities (1,129,436) (5,778,946) (8,660,804) (16,016,628) Effect of changes in foreign currency exchange (200,325) 38,831 168,919 (67,645) ------------------------------------------------------------------------- INCREASE IN CASH AND CASH EQUIVALENTS $ 2,878,967 $ 39,676,673 $ 5,489,787 $ 58,049,811 ------------------------------------------------------------------------- Selected Annual Financial Information ------------------------------------------------------------------------- YEARS ENDED MAY 31 2009 2008 2007 ------------------------------------------------------------------------- CONSOLIDATED RESULTS Sales $ 69,373,117 $ 30,972,941 $ 21,897,240 EBITDA $ 31,409,878 $ 11,318,178 $ 6,722,501 Net earnings $ 20,868,124 $ 7,175,011 $ 3,574,082 Net earnings per common share Basic $ 0.46 $ 0.20 $ 0.12 Diluted $ 0.45 $ 0.19 $ 0.11 Dividend per common share - $ 0.034 $ 0.003 BALANCE SHEET DATA Total assets $ 128,168,856 $ 107,743,063 $ 17,363,037 Long-term debt $ 3,997,923 $ 4,674,934 $ 3,500,645 Shareholders' equity $ 112,368,764 $ 90,962,804 $ 7,546,467 ------------------------------------------------------------------------- 2009 Selected Quarterly Financial Information (Unaudited) --------------------------------------------------------- Q4 Q3 Q2 Q1 ------------------------------------------------------------------------- Sales $ 18,057,223 $ 19,150,195 $ 18,135,824 $ 14,029,875 Gross profit $ 8,496,616 $ 9,840,268 $ 9,230,178 $ 7,631,824 EBITDA $ 8,576,126 $ 8,012,408 $ 8,798,520 $ 6,022,824 Net earnings $ 5,708,451 $ 5,189,673 $ 5,875,610 $ 4,094,390 Earnings per share Basic $ 0.13 $ 0.11 $ 0.13 $ 0.09 Diluted $ 0.12 $ 0.11 $ 0.13 $ 0.09 Backlog $ 52,224,368 $ 52,024,064 $ 54,722,363 $ 53,646,727 ------------------------------------------------------------------------- 

For further information: Jacques L'Ecuyer, President and Chief Executive Officer, 5N Plus Inc., (514) 856-0644, [ jacques.lecuyer@5nplus.com ]