Sigma Industries Reports Fiscal 2015 Third Quarter Results

SAINT-EPHREM-DE-BEAUCE, QUEBEC -- (Marketwired) -- 03/20/15 -- Sigma Industries Inc. (TSX VENTURE: SSG), a manufacturing company specializing in the production of composite components, announces results for the third quarter of its 2015 fiscal year ended January 24, 2015. The results reflect the sale of the PNS Tech division effective October 1, 2013 and in accordance with IFRS, this division has been presented as discontinued operations in the Company's unaudited condensed interim consolidated financial statements.

"Sigma Industries' operating results showed more signs of improvement in the third quarter of fiscal 2015, as a stronger North American economy is bolstering demand in most of our main sectors of activity," said Denis Bertrand, President and Chief Executive Officer of Sigma Industries. "Sales rose 31.3% to $16.1 million mainly driven by higher sales to the heavy-duty truck market. Profitability also further increased, as we generated an adjusted EBITDA of $861,000, compared with a loss last year. Our overall efficiency continues to improve following the transfer of production of certain components from the United States to our Quebec-based facilities as part of our strategic decision to focus on our core competence of closed mould manufacturing."

THIRD QUARTER RESULTS

Revenues from continuing operations for the third quarter of fiscal 2015 totalled $16.1 million, up 31.3% from $12.2 million in the third quarter of fiscal 2014. This increase is mainly attributable to a rise of $2.7 million in sales to the heavy-duty truck market resulting from higher industry shipments. In addition, sales to the bus industry increased $1.4 million as a result of a new manufacturing contract.

Sigma Industries recorded adjusted earnings before interest, taxes, depreciation and amortization ("EBITDA") from continuing operations of $861,094, or 5.4% of revenues, in the third quarter of fiscal 2015, compared with ($430,338) in the third quarter of last year. This increase is attributable to the Company's specialization in closed mould manufacturing and to the favourable effect of higher business activity on the absorption of fixed overhead costs.

As a result, net income from continuing operations for the third quarter of fiscal 2015 amounted to $124,107, or $0.01 per basic and diluted share, versus a net loss from continuing operations of $1.2 million, or $0.11 per basic and diluted share, last year.

NINE-MONTH RESULTS

For the nine-month period ended January 24, 2015, revenues from continuing operations amounted to $46.4 million, versus $40.0 million for the nine-month period ended January 25, 2014. Adjusted EBITDA from continuing operations totalled $2.9 million, or 6.2% of revenues, up from $189,486, or 0.5% of revenues, last year. Net income from continuing operations reached $1.2 million, or $0.11 per basic and diluted share, versus a net loss from continuing operations of $2.1 million, or $0.18 per basic and diluted share, a year earlier.

SELECTED FINANCIAL INFORMATION

                          --------------------------------------------------
Consolidated results of
operations                       Three months ended       Nine months ended
                          --------------------------------------------------
(unaudited, in thousands
of Canadian dollars except  January 24, January 25, January 24, January 25,
per-share amounts)                 2015        2014        2015        2014
                                      $           $           $           $
Revenues from continuing
 operations                      16,086      12,248      46,373      40,044
Adjusted EBITDA from
 continuing operations              891        (430)      2,881         190
Net income (loss) from
 continuing operations              124      (1,239)      1,249      (2,074)
  Per share (basic and
   diluted)                        0.01       (0.11)       0.11       (0.18)
Net income (loss)                   124      (1,239)      1,249      (1,830)
  Per share (basic and
   diluted)                        0.01       (0.11)       0.11       (0.16)
----------------------------------------------------------------------------

                          --------------------------------------------------
Reconciliation of EBITDA,
adjusted EBITDA and net
income                           Three months ended       Nine months ended
                          --------------------------------------------------
(unaudited, in thousands    January 24, January 25, January 24, January 25,
of Canadian dollars)               2015        2014        2015        2014
                                      $           $           $           $
Net income (loss)                   124      (1,239)      1,249      (1,830)
MINUS:
Net income from
 discontinued operations              -           -           -         244
----------------------------------------------------------------------------
Net income (loss) from
 continuing operations              124      (1,239)      1,249      (2,074)
----------------------------------------------------------------------------
PLUS (less):
Income tax expense
 recovery                            12          (1)          2         (22)
Gain on lease cancellation            -           -        (602)          -
Depreciation and
 amortization                       326         308         948         929
Financial expenses                  399         502       1,284       1,357
----------------------------------------------------------------------------
Adjusted EBITDA from
 continuing operations              861        (430)      2,881         190
----------------------------------------------------------------------------
PLUS (less):
Foreign exchange gain              (276)       (357)       (320)       (450)
Gain on disposal of
 property, plant and
 equipment                            8           -           8           -
----------------------------------------------------------------------------
EBITDA from continuing
 operations                         593        (787)      2,569        (260)
----------------------------------------------------------------------------

                          --------------------------
Consolidated balance sheet
data                                          As at
                          --------------------------
(in thousands of Canadian   January 24,   April 26,
dollars)                           2015        2014
                                      $           $
Total assets                     26,251      25,344
Total liabilities                25,121      25,854
Shareholders' equity              1,130        (510)
----------------------------------------------------

NON-IFRS FINANCIAL MEASURES

The information in this press release includes certain measures that are not financial measures prescribed under IFRS. Sigma Industries uses adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") and earnings before interest, taxes, depreciation and amortization ("EBITDA") in assessing its financial performance. As there is no generally accepted method of calculating these financial measures, they may not be comparable to similar measures reported by other companies. Adjusted EBITDA is earnings before interest, income taxes, depreciation, amortization and other non-operating expenses and revenues, EBITDA consists of adjusted EBITDA plus (minus) foreign exchange loss (gain) and loss (gain) on disposal of property, plant and equipment. These measures do not represent cash flow available for repayment of debt, payment of dividends, reinvestment or other discretionary uses, and should not be considered in isolation or as a substitute for other measures of performance calculated according to IFRS.

ABOUT SIGMA INDUSTRIES

Sigma Industries Inc. (TSX VENTURE: SSG), a manufacturing company specializing in the production of composite components, has two operating subsidiaries and employs 375 people. The Company is active in the heavy-duty truck, coach, transit, machinery and wind energy markets. Sigma sells its products to original equipment manufacturers and distributors in the United States, Canada and Europe.

FORWARD-LOOKING STATEMENTS

This press release contains certain forward-looking statements about the Company. Such forward-looking statements are dependent on a number of factors and are subject to risks and uncertainties. Actual results may differ from those expected. The information contained in this press release is dated March 20, 2015, the date on which management approved the press release. Management does not assume any obligation to update or revise any forward-looking statements, whether as a result of new information or future events, except as required by law.

Note to readers: Complete unaudited condensed interim financial statements and Management's Discussion & Analysis of Financial Position and Operating Results have been posted on SEDAR and are available at www.sedar.com.

Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contacts:
Sigma Industries Inc.
Denis Bertrand
President and Chief Executive Officer
418-484-5282
[email protected]

Source: Sigma Industries Inc.

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