CORRECTION FROM SOURCE/Velan Inc. Reports its Year-End and Fourth Quarter 2012/13 Financial Results
(firmenpresse) - MONTREAL, QUEBEC -- (Marketwired) -- 05/28/13 -- This document corrects and replaces the release sent earlier today at 2:34 PM EDT.
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 28, 2013.
Highlights
Year-ended fiscal 2013 (unless otherwise noted, all amounts are in U.S. dollars and all comparisons are to the prior fiscal year):
Fourth Quarter Fiscal 2013 (unless otherwise noted, all amounts are in U.S. dollars and all comparisons are to the fourth quarter of fiscal 2012):
"We were generally pleased about the progress for the year, notwithstanding the challenges to our earnings posed by the integration of the Italian company acquired in 2011 and the continued depreciation of the Euro against the U.S. dollar," said John Ball, CFO of Velan Inc. "Our investments in our manufacturing capacity both in Canada and Asia have been extensive and should start to pay dividends. Our balance sheet remains healthy and well financed and our backlog is now at a manageable level."
Tom Velan, President and CEO of Velan Inc. said, "We are pleased to have reached the $500 million sales milestone and we are starting this year with a good order backlog of $531 million. Our challenge will be to continue the high level of production of our complex project order backlog while using our shorter lead-times to increase our order bookings from last year's level."
"We have expanded our local manufacturing presence in Korea, China and India with an objective to lower production costs and increase our local sales in Asia. During the last year, we invested $28.5 million in our global manufacturing infrastructure. In our North American operations, we invested in large test fixtures, robotic welding, and computer numeric control ("CNC") machines. We also modified some of our production cells for improved production flow in accordance with Lean principles. We completed construction of a new greenfield plant in southern India and started to manufacture small forged valves; the plant will expand into other products in the future and will supply valves to the Indian and global markets. In China, we invested in test fixtures, CNC machines, and robotic welding to produce pressure seal valves for the Chinese power market. In Korea, we are establishing a new production line for larger valves to better service Korean engineering, procurement, and construction customers."
"We are continuing to take measures to improve our operational excellence and cost competitiveness, while strengthening our presence in international markets in order to improve our performance. Now, we are working to continue to build on the positive momentum to further improve our performance and operating results."
Dividend
The Board declared an eligible quarterly dividend of Canadian dollar $0.08 per share, payable on June 28, 2013, to all shareholders of record as at June 14, 2013.
Conference call
Financial analysts, shareholders, and other interested individuals are invited to attend the fourth quarter conference call to be held on May 28, 2013, at 4:30 PM (EST). The toll free call-in number is 1-888-224-7971, access code 21658132. A recording of this conference call will be available for seven days at 1-416-626-4100 or 1-800-558-5253, access code 21658132.
About Velan
Velan Inc. () is a world-leading manufacturer of industrial valves with sales of over $500 million in its last reported fiscal year. The Company employs over 2,000 people and 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
Except for historical information provided herein, this press release may contain information and statements of a forward-looking nature concerning the future performance of the Company. These statements are based on suppositions and uncertainties as well as on management's best possible evaluation of future events. Such factors may include, without excluding other considerations, fluctuations in quarterly results, evolution in customer demand for the Company's products and services, the impact of price pressures exerted by competitors, and general market trends or economic changes. As a result, readers are advised that actual results may differ from expected results.
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 excluding a goodwill impairment loss of $11.7 million for the current quarter and fiscal year, and positive fair value adjustments to the ABV purchase price proceeds payable. For both the current year and prior year quarters, as well as for the prior fiscal year, the amount of such fair value adjustment was $2.2 million. For the current fiscal year, the amount was $2.4 million.
The term "adjusted net operating results" for the annual results is defined as net income or loss attributable to Subordinate and Multiple Voting Shares excluding the net loss of ABV, the goodwill impairment loss, the purchase price accounting and interest accretion adjustments, the positive fair value adjustments to the ABV purchase price proceeds payable, and the impact of currency changes. Refer to the "Reconciliations and Non-IFRS Measures" section in the Company's Management Discussion and Analysis ("MD&A") for a detailed calculation of this measure.
The term "adjusted net operating results" for the quarterly results is defined as net income or loss attributable to Subordinate and Multiple Voting Shares excluding the goodwill impairment loss, the positive fair value adjustments to the ABV purchase price proceeds payable, and the impact of currency changes. Refer to the "Reconciliations and Non-IFRS Measures" section in the Company's MD&A for a detailed calculation of this measure.
Note that, for the calculation of the adjusted net operating results for the quarter, the net loss of ABV, as well as the purchase price accounting and interest accretion adjustments were not included as adjustments because both comparable periods included such items for the entire applicable period. The Company included these adjustments in the calculation of adjusted net operating results for the full fiscal year since the acquisition of ABV occurred part way through the 2012 fiscal year. As such, both periods would not be comparable since fiscal year 2012 includes 10 months of activity for ABV while fiscal year 2013 includes 12 months of activity.
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 and Non- IFRS Measures" section in the Company's MD&A for a detailed calculation of this measure.
Contacts:
Tom Velan
President and Chief Executive Officer
(514) 748-7743
(514) 748-8635 (FAX)
John D. Ball
Chief Financial Officer
(514) 748-7743
(514) 748-8635 (FAX)
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Datum: 28.05.2013 - 19:50 Uhr
Sprache: Deutsch
News-ID 264064
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contact information:
Town:
MONTREAL, QUEBEC
Kategorie:
Machinery & Tools
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