TSE:DRX ADF Group Q2 2024 Earnings Report GBX 2.57 +0.02 (+0.78%) As of 04/17/2025 11:43 AM Eastern Earnings History Brave Bison Group EPS ResultsActual EPSGBX 0.32Consensus EPS N/ABeat/MissN/AOne Year Ago EPSN/ABrave Bison Group Revenue ResultsActual Revenue$80.22 millionExpected RevenueN/ABeat/MissN/AYoY Revenue GrowthN/ABrave Bison Group Announcement DetailsQuarterQ2 2024Date9/7/2023TimeN/AConference Call DateThursday, September 7, 2023Conference Call Time10:00AM ETConference Call ResourcesConference Call AudioConference Call TranscriptPress ReleaseEarnings HistoryCompany ProfilePowered by Brave Bison Group Q2 2024 Earnings Call TranscriptProvided by QuartrSeptember 7, 2023 ShareLink copied to clipboard.There are 2 speakers on the call. Operator00:00:00Good morning, ladies and gentlemen, and welcome to ADF Group Second Quarter Results Ended July 31, 2023 Conference Call. At this time, all lines are in listen only mode. Following the presentation, we will conduct a question and answer session. 1. This call is being recorded on Thursday, September 7, 2023. Operator00:00:26I would now like to turn the conference over to Jean Francois Broussier, Chief Financial Officer. Please go ahead. Speaker 100:00:33Thank you. Good morning and welcome to ADF's conference call covering the 2nd quarter 6 months ended July 31, 2023. I will first update you on our quarterly and year to date results, which were disclosed earlier this morning by press release and then proceed with a quick update about our operations. First, a word of caution. Please note that Some of the issues discussed today may include forward looking statements. Speaker 100:01:02These are documented in ADF Group's management report 1, 2023, which were filed with SEDAR this morning. The positive trends started in our Q1 continued during our Q2. As such, We closed the quarter ended July 31, 2023 with revenues of $80,200,000 $13,800,000 higher than for the same quarter ended a year ago. Year to date, revenues stood at $160,500,000 compared to $134,400,000 for the 6 month period ended July 31, 2022. These increases are in line with the past quarters trend and our increased backlog. Speaker 100:01:56Gross margin as a percentage of revenues at 22.2% is up from the 12.9% margin for the quarter ended July 31, 2022, while adjusted EBITDA at $12,600,000 was $5,500,000 or 78% higher than the Q2 ended last year. Year to date, gross margins as a percentage of our revenues at 19.5% is up from the 12.5% margin for the 6 month period ended July 31, 2022, while adjusted EBITDA at $22,700,000 was $10,000,000 or 78.5 percent higher than the 6 month period ended last year. Gross margin for the 3 month 6 month periods ended July 31, 2023 benefited primarily from U. S. Projects presently being fabricated and installed. Speaker 100:02:55These favorable gross margin variance did not entirely trickle down to adjusted EBITDA considering the increased selling and administrative expenses. For the 3 6 month periods ended July 31, 2023, SG and A expenses stood at 6,600,000 dollars respectively, dollars 3,900,000 $5,000,000 higher than for the corresponding period a year earlier. These increases come from the higher salary levels in line with the recent inflation trends and share based compensation fair market valuation in line with ADF stock price increase. In addition, selling and administrative expenses for the 3 6 month periods ended last year on July 31, 2022 benefited from an $800,000 gain on disposal of fixed assets. We therefore closed our 2nd quarter with net income of $10,500,000 or $0.32 per share compared to $5,400,000 or $0.17 per share for the corresponding quarter a year ago. Speaker 100:04:07Year to date, net income stood at $15,900,000 or $0.49 per share compared to dollars 9,700,000 or $0.30 per share for the same period ended July 31, 2022. As of July 31, 2023, cash and cash equivalents stood at $52,200,000 $45,000,000 higher than as of January 31, 2023, while working capital stood at $83,000,000 26.5 percent higher than the January 31, 2023 level. Now that our investment program for the automation of our fabrication facility in Turbon is finalized, we expect full year CapEx to be under $5,000,000 with $1,800,000 being spent year to date. Yesterday, our Board of Directors approved the payment of the second $0.01 per share semiannual dividend, which will be paid on October 17 to shareholders of record as at September 29, 2023. Bolstered by our strong results, we turn to the second half of our fiscal year with sustained confidence. Speaker 100:05:24With a strong backlog, which reached $373,700,000 as of July 31, 2023, a sound financial position and state of the art fabrication equipment and plants, we are poised to take advantage of the market conditions allowing us to pursue our growth. Thank you for your interest and confidence in ADF. We will now answer your questions. Operator00:05:50Thank you. Ladies and gentlemen, we will now begin the question and answer session. 1. There are no questions at this time. Please proceed. Speaker 100:06:25Again, we wish to thank you for your interest in and support of ADF Group. Have a nice day. Operator00:06:35Thank you. Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines.Read morePowered by Conference Call Audio Live Call not available Earnings Conference CallBrave Bison Group Q2 202400:00 / 00:00Speed:1x1.25x1.5x2x Earnings DocumentsPress Release Brave Bison Group Earnings HeadlinesQ1 Earnings Estimate for ADF Group Issued By Atrium ResearchApril 15, 2025 | americanbankingnews.comADF Group Shares Fall Sharply After Revenue Warning on Hit From TariffsApril 10, 2025 | marketwatch.comThe Trump Dump is starting; Get out of stocks now?The first 365 days of the Trump presidency… Will be the best time to get rich in American history.April 19, 2025 | Paradigm Press (Ad)Tariffs loom over Quebec’s ADF Group as stock value crashes on lower sales, profit warningsApril 10, 2025 | theglobeandmail.comADF GROUP INC. FISCAL YEAR 2025 CONFERENCE CALL INVITATIONApril 3, 2025 | finance.yahoo.comIs Weakness In ADF Group Inc. (TSE:DRX) Stock A Sign That The Market Could be Wrong Given Its Strong Financial Prospects?March 25, 2025 | finance.yahoo.comSee More ADF Group Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like Brave Bison Group? Sign up for Earnings360's daily newsletter to receive timely earnings updates on Brave Bison Group and other key companies, straight to your email. Email Address About Brave Bison GroupA world where complexity is the only constant demands a new breed of company. Brave Bison is a different beast: a media, marketing and technology company purpose built for the digital era. With four specialist practices—Brave Bison Performance, Brave Bison Commerce, SocialChain and our own media network—we help some of the world's most ambitious brands and businesses capitalise on complexity from trend to spend. 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There are 2 speakers on the call. Operator00:00:00Good morning, ladies and gentlemen, and welcome to ADF Group Second Quarter Results Ended July 31, 2023 Conference Call. At this time, all lines are in listen only mode. Following the presentation, we will conduct a question and answer session. 1. This call is being recorded on Thursday, September 7, 2023. Operator00:00:26I would now like to turn the conference over to Jean Francois Broussier, Chief Financial Officer. Please go ahead. Speaker 100:00:33Thank you. Good morning and welcome to ADF's conference call covering the 2nd quarter 6 months ended July 31, 2023. I will first update you on our quarterly and year to date results, which were disclosed earlier this morning by press release and then proceed with a quick update about our operations. First, a word of caution. Please note that Some of the issues discussed today may include forward looking statements. Speaker 100:01:02These are documented in ADF Group's management report 1, 2023, which were filed with SEDAR this morning. The positive trends started in our Q1 continued during our Q2. As such, We closed the quarter ended July 31, 2023 with revenues of $80,200,000 $13,800,000 higher than for the same quarter ended a year ago. Year to date, revenues stood at $160,500,000 compared to $134,400,000 for the 6 month period ended July 31, 2022. These increases are in line with the past quarters trend and our increased backlog. Speaker 100:01:56Gross margin as a percentage of revenues at 22.2% is up from the 12.9% margin for the quarter ended July 31, 2022, while adjusted EBITDA at $12,600,000 was $5,500,000 or 78% higher than the Q2 ended last year. Year to date, gross margins as a percentage of our revenues at 19.5% is up from the 12.5% margin for the 6 month period ended July 31, 2022, while adjusted EBITDA at $22,700,000 was $10,000,000 or 78.5 percent higher than the 6 month period ended last year. Gross margin for the 3 month 6 month periods ended July 31, 2023 benefited primarily from U. S. Projects presently being fabricated and installed. Speaker 100:02:55These favorable gross margin variance did not entirely trickle down to adjusted EBITDA considering the increased selling and administrative expenses. For the 3 6 month periods ended July 31, 2023, SG and A expenses stood at 6,600,000 dollars respectively, dollars 3,900,000 $5,000,000 higher than for the corresponding period a year earlier. These increases come from the higher salary levels in line with the recent inflation trends and share based compensation fair market valuation in line with ADF stock price increase. In addition, selling and administrative expenses for the 3 6 month periods ended last year on July 31, 2022 benefited from an $800,000 gain on disposal of fixed assets. We therefore closed our 2nd quarter with net income of $10,500,000 or $0.32 per share compared to $5,400,000 or $0.17 per share for the corresponding quarter a year ago. Speaker 100:04:07Year to date, net income stood at $15,900,000 or $0.49 per share compared to dollars 9,700,000 or $0.30 per share for the same period ended July 31, 2022. As of July 31, 2023, cash and cash equivalents stood at $52,200,000 $45,000,000 higher than as of January 31, 2023, while working capital stood at $83,000,000 26.5 percent higher than the January 31, 2023 level. Now that our investment program for the automation of our fabrication facility in Turbon is finalized, we expect full year CapEx to be under $5,000,000 with $1,800,000 being spent year to date. Yesterday, our Board of Directors approved the payment of the second $0.01 per share semiannual dividend, which will be paid on October 17 to shareholders of record as at September 29, 2023. Bolstered by our strong results, we turn to the second half of our fiscal year with sustained confidence. Speaker 100:05:24With a strong backlog, which reached $373,700,000 as of July 31, 2023, a sound financial position and state of the art fabrication equipment and plants, we are poised to take advantage of the market conditions allowing us to pursue our growth. Thank you for your interest and confidence in ADF. We will now answer your questions. Operator00:05:50Thank you. Ladies and gentlemen, we will now begin the question and answer session. 1. There are no questions at this time. Please proceed. Speaker 100:06:25Again, we wish to thank you for your interest in and support of ADF Group. Have a nice day. Operator00:06:35Thank you. Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines.Read morePowered by