Velan Inc. Reports its Second Quarter 2016/17 Financial Results
(firmenpresse) - MONTREAL, QUEBEC -- (Marketwired) -- 10/13/16 -- Velan Inc. (TSX: VLN) (the "Company"), a world-leading manufacturer of industrial valves, announced today its financial results for its second quarter ended August 31, 2016.
Highlights
Second Quarter Fiscal 2017 (unless otherwise noted, all amounts are in U.S. dollars and all comparisons are to the second quarter of fiscal 2016):
First Half Year Fiscal 2017 (unless otherwise noted, all amounts are in U.S. dollars and all comparisons are to the first half year of fiscal 2016):
"While we continued to experience softness in sales for a variety of reasons, both customer specific and general market conditions, we both improved margin and held expenses in line for the quarter," said John Ball, CFO of Velan Inc. "Our bookings and backlog, especially for longer term projects, and "bookings to sales" ratio all continued to improve, and our general working capital position remains strong. Furthermore, given our strong balance sheet, we intend, subject to Toronto Stock Exchange approval, to renew our normal course issuer bid when it expires on October 21, 2016. Under the bid, we may purchase up to 153,969 Subordinate Voting Shares (the "Shares"), representing approximately 2.5% of the issued Shares of such class as at October 13, 2016. All Shares purchased will be cancelled. As at October 13, 2016, we had 6,158,768 Shares outstanding. During the past 12 months, 137,700 Shares were purchased at a weighted average price of CA $15.56. We have concluded that purchases of up to 153,969 of the issued and outstanding Shares may be an appropriate and desirable use of available funds and, therefore, would be in the best interest of the Company. As a result of such purchases, the number of issued Shares will be decreased and, consequently, the proportionate share interest of all remaining shareholders will be increased on a pro rata basis."
Yves Leduc, President of Velan Inc., said, "The market downturn has deeply affected our performance in the first half of the year in several ways: we have seen lower bookings in North America, customers postponing shipments, and the increased complexity of some large orders causing supply chain and production delays. We are responding by intensifying our operational improvement efforts and by aggressively pursuing orders in specifically targeted markets. On the positive side, our backlog has increased steadily since the beginning of the year, which should benefit next year''s performance. The Company has the resilience to withstand a very challenging market and is taking actions that should help rebound strongly when it recovers."
Tom Velan, CEO of Velan Inc. said, "Recently, I attended the annual meeting of the North American Valve Manufacturers'' Association. The meeting confirmed that the industry is facing a tough market environment and we are continuing our efforts to improve our operations to be ready to benefit when the market conditions improve."
Dividend
The Board declared an eligible quarterly dividend of CDN$0.10 per share, payable on December 30, 2016, to all shareholders of record as at December 15, 2016.
Conference call
Financial analysts, shareholders, and other interested individuals are invited to attend the second quarter conference call to be held on Thursday, October 13, 2016, at 4:30 p.m. (EDT). The toll free call-in number is 1-888- 273-1350, access code 21819904. A recording of this conference call will be available for seven days at 1-416-626- 4100 or 1-800-558-5253, access code 21819904.
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 "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 Interim Report for the quarter ended August 31, 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.
Yves Leduc
President
(514) 748-7743
(514) 748-8635 (FAX)
VELAN Inc.
John D. Ball
Chief Financial Officer
(514) 748-7743
(514) 748-8635 (FAX)
Web:
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 13.10.2016 - 11:15 Uhr
Sprache: Deutsch
News-ID 1463630
Anzahl Zeichen: 2060
contact information:
Contact person:
Town:
MONTREAL, QUEBEC
Phone:
Kategorie:
Machinery & Tools
Typ of Press Release:
type of sending:
Date of sending:
Anmerkungen:
Diese Pressemitteilung wurde bisher 318 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Velan Inc. Reports its Second Quarter 2016/17 Financial Results
"
steht unter der journalistisch-redaktionellen Verantwortung von
VELAN Inc. (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
