Velan Inc. Reports Its First Quarter 2011/12 Financial Results
(firmenpresse) - MONTREAL, QUEBEC -- (Marketwire) -- 08/02/11 -- Velan Inc. (TSE: VLN), a world-leading manufacturer of industrial valves, announced today its financial results for its first quarter ended May 31, 2011.
Highlights
First Quarter 2012 (all comparisons versus first quarter fiscal 2011, unless otherwise noted):
International Financial Reporting Standards "IFRS"
The Company's quarterly results are prepared in accordance with Canadian Generally Accepted Accounting Principles ("GAAP") which now reflects the adoption of IFRS. Adopting IFRS resulted in the Company changing its functional currency from Canadian dollars to U.S. dollars. Additionally, the Company elected to change its reporting currency to the U.S. dollar. This change has been consistently applied to all financial information presented in this press release, unless otherwise stated.
"This was a challenging quarter. Despite increase in sales, bookings and backlog, our net earnings were down compared to last year," said Tom Velan, President and CEO of Velan Inc. "Faced with significant material cost increases, we have been raising our selling prices. For some of our product lines we still face lower margins due to a combination of material cost increases and the increase in all our Canadian costs in relation to our US dollar selling prices. The weakness of the US dollar is an important concern for us as it results in higher material costs and lower margins in all our plants that produce in a country with strengthening currency but sell mainly in US dollars. We need to raise our margin by increasing volume as well as continuing to make selective price increases to cover cost increases."
"The increases in bookings, backlog and sales are good indications of an improving global market for our products. We are starting our second quarter with the highest backlog in our history and the challenge we faced last year due to not enough orders has changed to the challenge of producing our orders as quickly and profitably as possible."
"The acquisition of ABV is a great opportunity to help grow our sales and earnings over the coming years. In the shorter term, purchase price accounting, whereby part of goodwill is attributed to the assets (including inventory), will reduce the contribution to our results. We are happy to see bookings of $8.1 million during the first month of our acquisition and we continue to be optimistic about the sales growth potential for Velan ABV."
"We are pleased to have maintained a solid balance sheet," said John Ball, CFO of Velan Inc., "and end the quarter with net cash(1)of $63.8 million after having acquired ABV. We used cash in operating activities this quarter as we needed to increase our inventory in relation to our growing backlog."
Tom Velan concluded, "We are encouraged by the positive trend in bookings and backlog. We are continuing to take measures to broaden our product offering, to improve our cost competitiveness, and to strengthen our presence in international markets in order to improve our long-term performance and increase the value of our company. In the shorter-term, we are focused on improved execution of our large project order backlog to increase sales and improve earnings."
Dividend
The Board declared an eligible quarterly dividend of Canadian dollar $0.08 per share, payable on September 30, 2011, to all shareholders of record as at September 15, 2011.
Annual General Meeting
Velan Inc. will be holding its Annual General Meeting at 11:00 a.m. on Wednesday, August 3, 2011, at the Delta Centre-Ville, 777 University Street, St. Jacques room, Montreal, Quebec.
Conference Call
Financial analysts, shareholders, and other interested individuals are invited to attend the first quarter conference call to be held on August 2, 2011, at 4:30 PM (EST). The toll free call-in number is 1-800-268-2160, access code 21532681. A recording of this conference call will be available for seven days at 1-416-626-4100 or 1-800-558- 5253, access code 21532681.
About Velan
Velan Inc. () is a world-leading manufacturer of industrial valves with sales of $381 million in its last reported fiscal year. The company employs over 1,800 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-GAAP measures
In this press release, the Company presented measures of performance and financial condition which are not defined under Canadian GAAP ("non-GAAP 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.
Net cash is defined as cash and cash equivalents plus short-term investments less bank indebtedness and short- term bank loans.
Contacts:
VELAN Inc.
Tom Velan
President and Chief Executive Officer
514-748-7743
(514) 748-8635 (FAX)
VELAN Inc.
M. John D. Ball
Chief Financial Officer
514-748-7743
(514) 748-8635 (FAX)
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Datum: 02.08.2011 - 18:03 Uhr
Sprache: Deutsch
News-ID 40989
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contact information:
Town:
MONTREAL, QUEBEC
Kategorie:
Machinery & Tools
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