Velan Inc. Reports Its Year-End and Fourth Quarter 2015/16 Financial Results
(firmenpresse) - MONTREAL, QUEBEC -- (Marketwired) -- 05/19/16 -- Velan Inc. (TSX: VLN) (the "Company"), a world-leading manufacturer of industrial valves, announced today its financial results for its fiscal year and fourth quarter ended February 29, 2016.
Highlights
Fourth Quarter Fiscal 2016 (unless otherwise noted, all amounts are in U.S. dollars and all comparisons are to the fourth quarter of fiscal 2015):
Year Ended Fiscal 2016 (unless otherwise noted, all amounts are in U.S. dollars and all comparisons are to the prior fiscal year)
John Ball, CFO of Velan Inc., said, "Fiscal 2016 was a year of challenges as our end user markets grappled with the impact of low oil prices. It provided the impetus for Velan to push for cost savings and efficiencies, and we will continue our efforts to rationalize operations in Fiscal 2017. We ended the year with a strong and healthy balance sheet, with cash generated from operations of US$28.9 million and ending net cash(1) balance of US$82.0 million. In addition, because of the challenges our Italian subsidiary has been facing this year in the upstream oil and gas market, we have written off the last of the goodwill remaining from our acquisition of that company in fiscal 2012."
Yves Leduc, President of Velan Inc., said, "We were successful in limiting the impact of the severe drop in bookings by responding quickly and decisively. Going forward, confronted with a challenging market environment, our priority is to control expenses and grow margins through operational improvements. Meanwhile, we have defined a path for growth and business improvement, and we have begun mobilizing our entire organization towards our new Velocity 2020 vision. As a goal, our strategy is to come out stronger than ever once the sector recovers."
Tom Velan, CEO of Velan Inc., said, "This was a year of turbulence and transition for our company. We are grateful for the dedication and resilience of our employees under challenging circumstances."
Dividend
The Board of Directors declared an eligible quarterly dividend of CA$0.10 per share, payable on June 30, 2016, to all shareholders of record as at June 15, 2016.
Conference call
Financial analysts, shareholders, and other interested individuals are invited to attend the fourth quarter conference call to be held on Thursday, May 19, 2016, at 4:30 p.m. (EST). The toll free call-in number is 1-888-273-1350, access code 21811460. A recording of this conference call will be available for seven days at 1-416-626-4100 or 1-800-558-5253, access code 21811460.
About Velan
Founded in Montreal in 1950, Velan Inc. () is one of the world''s leading manufacturers of industrial valves, with sales of US$426.9 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 or loss attributable to Subordinate and Multiple Voting Shares plus goodwill impairment loss, 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 Management Discussion and Analysis included in its Annual Report for the fiscal year ended February 29, 2016 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 Management Discussion and Analysis included in its Annual Report for the fiscal year ended February 29, 2016 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: 19.05.2016 - 11:59 Uhr
Sprache: Deutsch
News-ID 1436378
Anzahl Zeichen: 2437
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MONTREAL, QUEBEC
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Kategorie:
Machinery & Tools
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