Velan Inc. Reports its Third Quarter 2015/16 Financial Results
(firmenpresse) - MONTREAL, QUEBEC -- (Marketwired) -- 01/13/16 -- Velan Inc. (TSX: VLN) (the "Company"), a world-leading manufacturer of industrial valves, announced today its financial results for its third quarter ended November 30, 2015.
Highlights
Third Quarter Fiscal 2016 (unless otherwise noted, all amounts are in U.S. dollars and all comparisons are to the third quarter of fiscal 2015):
First Nine Months Fiscal 2016 (unless otherwise noted, all comparisons are to the first nine months of fiscal 2015)
"Although this quarter was a challenge in respect to both order bookings and sales, management continued to take actions to improve the efficiency and profitability of the business," said John Ball, CFO of Velan Inc. "While the weakening Canadian dollar did help contribute to margins in North America, the increasingly competitive nature of the business, particularly in the hard-hit oil and gas sector, largely offset those gains."
Yves Leduc, President of Velan Inc., said, "Confronted with a slumping global energy market, the strategic direction we have set earlier this year is to cut expenses and grow margins through operational improvements. Accordingly, in this last quarter, we have proceeded with an important restructuring initiative that is helping us manage a reduced backlog. It is also giving us the necessary headroom to carry out a number of elements of our strategic plan aimed at increasing our gross margin and delivery performance. While we are unsure as to the timing of the eventual market recovery, in the meantime we are actively targeting bottom-line improvements."
Tom Velan, CEO of Velan Inc., said, "We continued to buy back shares under our Normal Course Issuer Bid ("NCIB") and, in the quarter, we bought back 90,300 shares at an average price of CA$15.76 or US$12.68 per share. On November 30, 2015, our share price closed at CA$15.60 or US$11.68 per share compared to our book value of US$15.68 per share. We continue to pay an annual dividend of CA$0.40 per share. We will continue to buy shares under our NCIB as we consider it a good investment of our cash."
Dividend
The Board declared an eligible quarterly dividend of CA$0.10 per share, payable on March 31, 2016, to all shareholders of record as at March 15, 2016.
Conference call
Financial analysts, shareholders, and other interested individuals are invited to attend the third quarter conference call to be held on Wednesday, January 13, 2016, at 4:30 p.m. (EDT). The toll free call-in number is 1-888-273-1350, access code 21802376. A recording of this conference call will be available for seven days at 1-416-626-4100 or 1-800-558-5253, access code 21802376.
About Velan
Founded in Montreal in 1950, Velan Inc. () is one of the world''s leading manufacturers of industrial valves, with sales of US$455.7 million in its last reported fiscal year. The Company has manufacturing plants in 10 countries. Velan Inc. is a public company with its shares listed on the Toronto Stock Exchange under the symbol VLN.
Safe harbour statement
This news release may include forward-looking statements, which generally contain words like "should", "believe", "anticipate", "plan", "may", "will", "expect", "intend", "continue" or "estimate" or the negatives of these terms or variations of them or similar expressions, all of which are subject to risks and uncertainties, which are disclosed in the Company''s filings with the appropriate securities commissions. While these statements are based on management''s assumptions regarding historical trends, current conditions and expected future developments, as well as other factors that it believes are reasonable and appropriate in the circumstances, no forward-looking statement can be guaranteed and actual future results may differ materially from those expressed herein. The Company disclaims any intention or obligation to update or revise any forward-looking statements contained herein whether as a result of new information, future events or otherwise, except as required by the applicable securities laws. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
Non-IFRS measures
In this press release, the Company presented measures of performance and financial condition that are not defined under International Financial Reporting Standards ("non-IFRS measures") and are therefore unlikely to be comparable to similar measures presented by other companies. These measures are used by management in assessing the operating results and financial condition of the Company. In addition, they provide readers of the Company''s consolidated financial statements with enhanced understanding of its results and financial condition, and increase transparency and clarity into the operating results of its core business.
The term "adjusted net earnings" is defined as net income attributable to Subordinate and Multiple Voting Shares plus restructuring costs less the income tax effect of the restructuring costs. Refer to the "Reconciliations of Non- IFRS Measures" section in the Company''s MD&A for a detailed calculation of this measure.
The term "net cash" is defined as cash and cash equivalents plus short-term investments less bank indebtedness, short-term bank loans, and current portion of long-term bank borrowings. Refer to the "Reconciliations of Non-IFRS Measures" section in the Company''s MD&A for a detailed calculation of this measure.
Contacts:
VELAN Inc.
Tom Velan
Chief Executive Officer
(514) 748-7743
(514) 748-8635 (FAX)
VELAN Inc.
John D. Ball
Chief Financial Officer
(514) 748-7743
(514) 748-8635 (FAX)
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Datum: 13.01.2016 - 14:51 Uhr
Sprache: Deutsch
News-ID 1408782
Anzahl Zeichen: 4207
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MONTREAL, QUEBEC
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Kategorie:
Machinery & Tools
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