MONTREAL, Nov. 8, 2012 /CNW Telbec/ - (All amounts are in Canadian dollars)
For the second quarter of fiscal 2013, GLV Inc. (the "Corporation") (TSX: GLV.A GLV.B) reported consolidated revenues
and normalized adjusted EBITDA of $142.8 million and $4.9 million,
respectively. The Corporation reported a net loss attributable to
shareholders of GLV Inc. of $6.3 million or $0.14 per share, basic and
diluted, compared with net earnings of $4.4 million or $0.10 per share
for the same quarter of the previous fiscal year. The decline stemmed
primarily from lower operating income, restructuring costs of $1.6
million, an impairment charge of $1.1 million, the impact of foreign
exchange losses and the higher income tax expense, among other factors.
Normalized net loss attributable to shareholders of GLV Inc. amounted
to $3.6 million or $0.08 per share (basic and diluted).
"Despite the net loss reported for the quarter, we see encouraging
outlook, as efforts to refocus Ovivo operations, announced in August,
continue as planned. Nearly half of the planned 10% workforce reduction
for the group has been achieved and remaining half should be completed
by the end of the current fiscal year, which should generate annualized
savings of approximately $7 million once the plan is fully implemented.
These measures are expected to give rise to restructuring costs of
about $2 million, half the initially estimated cost of $4 million,
mainly for severance benefits" declared the President and Chief
Executive Officer Richard Verreault.
"Given challenging global economic conditions, our Pulp and Paper Group
recently announced the streamlining of one of its European divisions.
However, the Group's performance, particularly in North American
aftermarket segment which is countercyclical and a major recent
contract win in pulp processing equipment, sustains our confidence in
its outlook" concluded Richard Verreault.
Although the Corporation's operating results for the quarter ended
September 30, 2012 declined compared with the second quarter of the
previous fiscal year, the markets targeted by the refocusing of Ovivo's
business strategy initiated last August showed promising signs. The
energy and municipal markets in Europe, the Middle East and Africa
reached or exceeded management's profitability targets while continuing
to excel in contract performance and monitoring. Second quarter
operating results in the U.S. municipal market and the electronics and
metals market decreased compared with the same quarter of the previous
fiscal year, stemming primarily from the lower backlog during the
second half of the previous fiscal year. This situation improved as at
September 30, 2012 with significant growth in the backlog of each of
the two segments, allowing the electronics and metals market to reach
an 18-month high. Furthermore, Ovivo's normalized adjusted EBITDA
margin stands at nearly 5%, improving on performance in the same
quarter of the previous fiscal year and the first quarter of the
current fiscal year.
The Pulp and Paper Group's results met management expectations although
weaker than in the previous fiscal year, primarily due to lower
operating volumes in Europe and Asia.
For the six-month period ended September 30, 2012, the Corporation
reported a net loss attributable to shareholders of GLV Inc. of
$11.8 million or $0.27 per share, basic and diluted, compared with net
earnings of $0.3 million or $0.01 per share for the same period of the
previous fiscal year. The weaker results were caused by the same
unfavourable factors identified for the current quarter.
The backlog as at September 30, 2012 stood at $338.7 million, down
slightly from the two previous quarters. At constant exchange rates and
excluding the backlog of Ovivo Finland that was sold after the end of
the second quarter of 2013, Ovivo's backlog grew compared with the
previous quarter. This increase, at constant exchange rates, results
primarily from significant order taking in the electronics and metals
market and in the municipal segment in North America, partially offset
by a decrease in the energy and municipal markets in Europe, the Middle
East and Africa. The backlog for Ovivo's aftermarket also increased
compared with the past two quarters, following implementation of
Ovivo's refocusing strategy aimed at significantly increasing this
market with recurring revenues. For the Pulp and Paper Group, as
discussed above, slowing economies in Europe and Asia led to a lower
backlog compared with the past two quarters.
For fiscal 2013 as a whole, assuming exchange rates remain stable at
current levels and in light of the outlook in the segments serviced by
each group, and in particular the refocusing of Ovivo's operations, the
Corporation expects consolidated revenues to range from $600 million to
This press release presents the highlights for the second quarter ended
September 30, 2012. For a detailed analysis, see the interim
management's discussion and analysis and unaudited interim condensed
consolidated financial statements, filed today on the websites of SEDAR
(www.sedar.com and the Corporation www.glv.com). Note that non-IFRS financial measures were used to analyze
performance, as management considers that they provide useful
information for investors seeking to assess the Corporation's
performance and financial position.
About GLV Inc.
GLV is a provider of water treatment technological solutions, under the
Ovivo brand, and technological solutions used in pulp and paper
production, under the GL&V brand. The Corporation operates in some 20
countries with approximately 2,100 employees. GLV Inc. is a public
company whose shares trade on the Toronto Stock Exchange ("TSX") under
the ticker symbols GLV.A and GLV.B; it is a constituent of S&P/TSX
Clean Technology Index.
Notice regarding forward-looking statements
Certain statements in this press release regarding management's
objectives, projections, estimates, expectations or forecasts may
constitute forward-looking statements within the meaning of applicable
securities legislation. Forward-looking statements are recognized by
the use of terms such as "forecast," "project," "could," "plan," "aim,"
"estimate" and other similar terms, possibly used in the future or
conditional, particularly with regard to certain assumptions. The
management of GLV would like to point out that forward-looking
statements involve a number of uncertainties and known and unknown
risks such that GLV's actual and future results could differ
considerably from those stated. There can be no assurance as to the
materialization of the results, performance or achievements as
expressed in or underlying the forward-looking statements. The
forward-looking statements included in this press release were made as
of the date hereof, and unless required to do so pursuant to applicable
securities legislation, management of GLV assumes no obligation to
Additional information about the risk factors to which GLV is exposed is
provided under section 10, "Risks and uncertainties," of the MD&A for
the fiscal year ended March 31, 2012 available on SEDAR (www.sedar.com and the Corporation's website www.glv.com).
Date and time: Thursday, November 8, 2012 at 2:00 p.m. (EST)
1-888-231-8191 (North America)
An audio webcast of the conference call will be streamed live on www.glv.com. An audio recording will be accessible on demand from 5:00 p.m. (EST),
November 8, 2012 until midnight Thursday, November 15, 2012 at
1-855-859-2056 (1-416-849-0833-International), access code: 40891546#.
SOURCE: GLV INC.