TORONTO–(BUSINESS WIRE)–ABC Technologies Holdings Inc. (TSX: ABCT) (“ABC Technologies”, “ABC”, or the “Company”), a leading manufacturer and supplier of custom, highly engineered, technical plastics and lightweighting innovations to the North American light vehicle industry, today announced results for the three months ended September 30, 2022 (“Q1 Fiscal 2023”) and has declared a quarterly cash dividend of C$0.0375 per share. All amounts are shown in United States Dollars (“$”), unless otherwise noted.
Please click HERE for ABC’s Q1 Fiscal 2023 Management’s Discussion and Analysis (“MD&A”) or refer to the Company’s Interim Condensed Consolidated Financial Statements and MD&A for the three months ended September 30, 2022 available on the Company’s profile at www.SEDAR.com and on the Company website.
TORONTO–(BUSINESS WIRE)–ABC Technologies Holdings Inc. (TSX: ABCT) (“ABC Technologies”, “ABC”, or the “Company”), a leading manufacturer and supplier of custom, highly engineered, technical plastics and lightweighting innovations to the North American light vehicle industry, today announced results for the three months ended September 30, 2022 (“Q1 Fiscal 2023”) and has declared a quarterly cash dividend of C$0.0375 per share. All amounts are shown in United States Dollars (“$”), unless otherwise noted.
Please click HERE for ABC’s Q1 Fiscal 2023 Management’s Discussion and Analysis (“MD&A”) or refer to the Company’s Interim Condensed Consolidated Financial Statements and MD&A for the three months ended September 30, 2022 available on the Company’s profile at www.SEDAR.com and on the Company website.
Q1 Fiscal 2023 Highlights
- Q1 Fiscal 2023 Revenue increased by 95.1% to $318.9 million from $163.4 million for the three months ended September 30, 2021 (“Q1 Fiscal 2022”).
- Q1 Fiscal 2023 Net Loss of $23.4 million, compared to a Net Loss of $28.2 million in Q1 Fiscal 2022.
- Q1 Fiscal 2023 Adjusted EBITDA1,2 of $23.9 million, compared with $(11.3) million in Q1 Fiscal 2022, with the increase primarily driven by a higher sales and gross profit in the quarter from both existing operations as well as acquisitions.
- Q1 Fiscal 2023 Adjusted Free Cash Flow3 of $2.4 million, up from $(59.5) million in Q1 Fiscal 2022.
- Dividend of C$0.0375 per share declared.
- Subsequent to the end of the quarter, on October 25, 2022, the Board of Directors approved a plan to shut down Company’s Poland plant. For the Company, Poland is a small operation that was not able to overcome the dramatic increased costs for utilities, freight, material and labor experienced in that market. The Company is proactively working with its customers to relocate their production which is expected to take until Q4 Fiscal 2023 to complete. The plant is expected to be shut down when that activity is completed. A write-down relating to the tooling inventories of $2.0 million was recorded during the three months ended September 30, 2022 and an impairment charge relating to property, plant and equipment of $8.2 million was recorded during the year-end June 30, 2022. No additional significant impairment charges are expected at this time, although charges for severance and other estimated closure costs will be recorded in Q2 Fiscal 2023.
| ______________________________________ |
| 1 The Company prepares its consolidated financial statements in accordance with International Financial Reporting Standards (“IFRS”). However, the Company considers certain non-IFRS financial measures including “Adjusted EBITDA”, and “Adjusted Free Cash Flow” as useful additional information in measuring the financial performance and condition of the Company. These measures, which the Company believes are widely used by investors, securities analysts and other interested parties in evaluating the Company’s performance, do not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similarly titled measures presented by other publicly traded companies, nor should they be construed as an alternative to financial measures determined in accordance with IFRS. For a reconciliation of non-IFRS measures to measures determined in accordance with IFRS, please see heading “Non-IFRS Measures and Key Indicators” below. |
| 2 Adjusted EBITDA is a non-IFRS measure. For a reconciliation of non-IFRS measures to measures determined in accordance with IFRS, please see heading “Non-IFRS Measures and Key Indicators” below. |
| 3 Adjusted Free Cash Flow is a non-IFRS measure. For a reconciliation of non-IFRS measures to measures determined in accordance with IFRS, please see heading “Non-IFRS Measures and Key Indicators” below. |
ABC Technologies’ President and Chief Executive Officer, Terry Campbell, commented: “We saw meaningful year-over-year improvement in our financial performance this quarter, driven by strong top-line growth supported by acquisition contribution, along with management efforts to improve operating performance and reduce costs. Looking ahead, our team continues to navigate lingering economic headwinds while building a more resilient business. ABC’s leadership is focused on operationalizing our new business model that will help improve efficiency at our plants while reducing complexity both within the organization and for our customers. We are committed to optimizing our cost structure, successfully completing our customer cost recovery negotiations, and converting top-line growth to sustained bottom-line performance. There is a lot of work ahead of us, but our team continues to be excited about tackling these challenges head on.”
Q1 Fiscal 2023 Results of Operations
Sales were $318.9 million in Q1 Fiscal 2023 compared with $163.4 million in Q1 Fiscal 2022, an increase of $155.4 million or 95.1%. Of this increase, $56.9 million is attributable to the dlhBOWLES and Karl Etzel acquisitions completed in the third quarter of the fiscal year 2022 (“Q3 Fiscal 2022”), accounting for 36.6% of the increase. According to IHS Markit reports, industry production in North America increased by 24.2% in Q1 Fiscal 2023 compared to Q1 Fiscal 2022. The Company enjoyed better than industry growth as a result of improved sales to a number of significant customers due to its product mix relative to the industry.
Cost of sales was $288.3 million in Q1 Fiscal 2023 compared with $162.6 million in Q1 Fiscal 2022, an increase of $125.7 million or 77.3%, of which $45.2 million or 36.0% is attributable to the dlhBOWLES and Karl Etzel acquisitions completed in Q3 Fiscal 2022. As a percentage of sales, cost of sales was 90.4% in Q1 Fiscal 2023 compared with 99.5% in Q1 Fiscal 2022. Gross margin in Q1 Fiscal 2023 was higher than the comparable prior year’s quarter resulting from improved efficiencies due to a decrease in semiconductor shortages allowing for increased production volumes. Gross margin continued to be lower than normal as a result of higher labor and freight costs, and increased raw material costs, primarily resin, glass, rubber, paint and steel which the Company attributes to inflationary trends seen throughout both the industry and general economy.
Selling, general and administrative expenses were $45.9 million in Q1 Fiscal 2023 compared with $28.1 million in Q1 Fiscal 2022, an increase of $17.8 million or 63.3%. As a percentage of sales, selling, general and administrative expenses were 14.4% in Q1 Fiscal 2023 compared with 17.2% in Q1 Fiscal 2022.
Significant differences quarter over quarter include:
- higher business transformation related costs in Q1 Fiscal 2023 of $12.1 million;
- higher wages, benefits and professional fees in Q1 Fiscal 2023 of $2.6 million;
- higher depreciation and amortization expense in Q1 Fiscal 2023 of $2.6 million; and
- higher foreign exchange loss in Q1 Fiscal 2023 of $1.4 million partially offset by, lower share-based compensation expense of $1.7 million.
Net loss was $23.4 million in Q1 Fiscal 2023 compared with $28.2 million in Q1 Fiscal 2022, a decrease of $4.8 million or 16.8%. Primary contributors to the change between periods are a $29.8 million increase in gross profit in Q1 Fiscal 2023 due to the significant increase in sales and the efficiencies resulting from the increase, largely offset by a $17.8 million increase in SG&A expenses as previously noted, increased interest expense of $2.5 million and lower income tax recoveries of $6.6 million.
Adjusted EBITDA was $23.9 million in Q1 Fiscal 2023 compared with $(11.3) million in Q1 Fiscal 2022, an increase of $35.2 million or 311.4% primarily due to higher sales and gross profit in Q1 Fiscal 2023 compared with Q1 Fiscal 2022.
Adjusted Free Cash Flow was $2.4 million in Q1 Fiscal 2023, or $61.9 million higher compared with Q1 Fiscal 2022 primarily due to higher net cash flows from operating activities of $73.0 million which was partly offset by the higher purchases of property plant and equipment of $8.8 million.
Market Dynamics
The Company’s financial results during the last half of the fiscal year of the Company ended June 30, 2021 (“Fiscal 2021”) and fiscal year of the Company ended June 30, 2022 (“Fiscal 2022”) were significantly impacted by disruptions and shortages in the supply of critical components and materials globally, particularly semiconductors, which were indirect outcomes of the COVID-19 pandemic. When the COVID-19 pandemic caused a significant drop in vehicle sales in spring 2020, OEMs cut their orders of all parts and materials, including the semiconductors needed for functions ranging from touchscreen displays to collision-avoidance systems. In the fall of 2020, when demand for passenger vehicles rebounded, OEMs were not able to secure adequate supply of semiconductors as chip manufacturers were already committed to supplying other customers in consumer electronics. The global semiconductor shortage resulted in temporary shut-downs or slowdowns of the production lines at the majority of our OEM customers beginning in February and March 2021, which impacted the production levels in our plants that supply those customers. In Fiscal 2022, primarily in the first and the second fiscal quarters, COVID-19 had a more direct effect on operations. Outbreaks in major semiconductor manufacturing countries, such as Malaysia, resulted in the temporary shutdown of the manufacturing sector in those countries. As a result, the lost production exacerbated the shortage of semiconductors, leading to increased shutdowns by nearly all OEMs. These shutdowns, frequently with very short notice, resulted in inefficiencies at the Company’s production facilities. In the third and the fourth fiscal quarters of Fiscal 2022 and Q1 Fiscal 2023, supply chain disruptions to OEM customers abated to some extent, but not completely. Supply chain disruptions and economic conditions, which also include the conflict between Russia and Ukraine have introduced higher levels of inflation for costs including, but not limited to, labor, freight, utilities, resin, glass, rubber, paint and steel.
We believe these conditions are temporary for many of our costs and will abate over time when supply conditions are successfully resolved. Presently we expect costs to remain elevated from now until the end of calendar year 2023. However, it is notable that increased costs in several areas, including, but not limited to labor, benefits, freight and utilities costs are likely not temporary and will remain part of the cost of the business. The Company is in discussions with its largest customers to adjust its prices for the effects of inflation that were not present when the programs were awarded to the Company. The Company is also refining its quoting practices to more proactively address input and conversion costs in its pricing to customers.
As a result of the global semiconductor shortages and production disruptions, inventories for new vehicles had reached historic lows, but have been bouncing back toward more normal levels. The high consumer demand for vehicles, lower than normal inventory supply and inflationary price increases has pushed prices for both new and used vehicles to record levels. Several OEMs are recording strong earnings as the average price of new models has increased. Due to the scarcity of new vehicles, used vehicle prices experienced new highs, at times exceeding the price of new vehicles, as customers turned to alternatives when new models were not available for purchase. Recently, used prices have diminished somewhat, but continue to be elevated relative to previous years.
Dividend
The Board of Directors today has declared a Q1 Fiscal 2023 quarterly cash dividend of C$0.0375 per share, payable on or about December 30, 2022 to shareholders of record on November 30, 2022.
Conference Call Information
ABC will host a conference call today, November 11, 2022 at 8:30am ET to discuss the results. Participants may listen to the call via audio streaming at www.abctechnologies.com/investors.
The dial-in number to participate in the call is:
Toll Free: 1-855-327-6837
Toll/International: 1-631-891-4304
A telephonic replay will be available approximately two hours after the call. The replay will be available until 11:59pm ET on Friday, November 25th, 2022.
Replay Information:
Toll Free: 1-844-512-2921
Toll/International: 1-412-317-6671
Replay Pin Number: 10020435
A webcast replay will be available approximately one hour after the conclusion of the call at www.abctechnologies.com/investors under the Events & Presentations section.
Non-IFRS Measures and Key Indicators
This Press Release uses certain non-IFRS financial measures and ratios. Management uses these non-IFRS financial measures for purposes of comparison to prior periods, to prepare annual operating budgets, and for the development of future projections and earnings growth prospects. This information is also used by management to measure the profitability of ongoing operations and in analyzing our financial condition, business performance and trends. These measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similarly titled measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management’s perspective. Accordingly, they should not be considered in isolation, nor as a substitute, for analysis of our financial information reported under IFRS. We use non-IFRS financial measures including Net Debt, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted Free Cash Flow to provide supplemental measures of our operating performance and thus highlight trends in our core business that may not otherwise be apparent when using IFRS financial measures. We believe that the presentation of these financial measures enhances an investor’s understanding of our financial performance as these measures are widely used by investors, securities analysts and other interested parties.
“Net Debt” means (i) long-term debt less cash plus (ii) proportionate long-term debt held at joint ventures less proportionate cash held at joint ventures.
“EBITDA” means net earnings (loss) before interest expense, income tax expense (recovery), depreciation of property, plant and equipment, depreciation of right-of-use assets, and amortization of intangible assets.
“Adjusted EBITDA” means EBITDA plus: loss on disposal and write-down of assets, unrealized loss (gain) on derivative financial instruments, transactional, recruitment, and other bonuses, EBITDA from Poland operations which is being shut down, business transformation and related costs (which may include severance and restructuring expenses) and write-down of inventories less: our share of income of joint ventures plus the Company’s proportionate share of the EBITDA generated by our joint ventures, and share-based compensation expense. We also present Adjusted EBITDA excluding the impact of IFRS 16 by charging the lease payments applicable to those periods to expense as was the case prior to IFRS 16 – Leases (“IFRS 16”).
“Adjusted EBITDA Margin” means Adjusted EBITDA divided by sales adjusted to include the proportional share of joint venture sales attributable to ABC.
“Adjusted Free Cash Flow” means Net Cash Flows from Operating Activities less: purchases of property, plant and equipment, additions to intangible assets, lease payments, net impact of hedge monetization, plus: proceeds from disposal of property, plant, and equipment, cash dividends received from joint ventures, and one-time advisory, bonus and other costs.
Additional information about the Company, including the Company’s Management Discussion and Analysis of Operating Results and Financial Position for the three months ended September 30, 2022 and the Company’s Interim Condensed Consolidated Financial Statements for the three months ended September 30, 2022 can be found at www.sedar.com.
|
Fiscal Q1 2023 Financial Results (Expressed in thousands of United States dollars, unless otherwise specified)
ABC Technologies Holdings Inc. Interim Condensed Consolidated Statement of Financial Position |
|||||||
|
|
September 30, 2022 |
|
June 30, 2022 |
||||
|
Assets |
(unaudited) |
|
|
||||
|
Current assets |
|
|
|
||||
|
Cash |
$ |
46,807 |
|
|
$ |
25,400 |
|
|
Trade and other receivables |
|
107,758 |
|
|
|
122,192 |
|
|
Inventories |
|
156,697 |
|
|
|
152,461 |
|
|
Prepaid expenses and other |
|
32,299 |
|
|
|
42,094 |
|
|
Total current assets |
|
343,561 |
|
|
|
342,147 |
|
|
|
|
|
|
||||
|
Property, plant and equipment |
|
419,786 |
|
|
|
425,645 |
|
|
Right-of-use assets |
|
160,530 |
|
|
|
165,679 |
|
|
Intangible assets |
|
154,849 |
|
|
|
156,844 |
|
|
Deferred income taxes |
|
9,207 |
|
|
|
9,445 |
|
|
Investment in joint ventures |
|
45,205 |
|
|
|
45,556 |
|
|
Derivative financial assets |
|
508 |
|
|
|
3,996 |
|
|
Goodwill |
|
112,330 |
|
|
|
112,369 |
|
|
Other long-term assets |
|
15,621 |
|
|
|
16,392 |
|
|
Total non-current assets |
|
918,036 |
|
|
|
935,926 |
|
|
Total assets |
$ |
1,261,597 |
|
|
$ |
1,278,073 |
|
|
|
|
|
|
||||
|
Liabilities and equity |
|
|
|
||||
|
Current liabilities |
|
|
|
||||
|
Trade payables |
$ |
157,577 |
|
|
$ |
147,981 |
|
|
Accrued liabilities and other payables |
|
121,320 |
|
|
|
98,280 |
|
|
Provisions |
|
19,744 |
|
|
|
24,132 |
|
|
Current portion of lease liabilities |
|
12,779 |
|
|
|
13,087 |
|
|
Purchase option |
|
5,883 |
|
|
|
6,206 |
|
|
Total current liabilities |
|
317,303 |
|
|
|
289,686 |
|
|
|
|
|
|
||||
|
Long-term debt |
|
375,000 |
|
|
|
400,000 |
|
|
Lease liabilities |
|
171,177 |
|
|
|
175,940 |
|
|
Deferred income taxes |
|
17,486 |
|
|
|
33,097 |
|
|
Derivative financial liabilities |
|
6,118 |
|
|
|
1,453 |
|
|
Other long-term liabilities |
|
37,577 |
|
|
|
2,137 |
|
|
Total non-current liabilities |
|
607,358 |
|
|
|
612,627 |
|
|
Total liabilities |
|
924,661 |
|
|
|
902,313 |
|
|
|
|
|
|
||||
|
Equity |
|
|
|
||||
|
Capital stock |
|
292,304 |
|
|
|
291,960 |
|
|
Other reserves |
|
1,736 |
|
|
|
3,094 |
|
|
Retained earnings |
|
50,868 |
|
|
|
77,453 |
|
|
Foreign currency translation reserve and other |
|
(12,326 |
) |
|
|
(7,524 |
) |
|
Cash flow hedge reserve, including cost of hedging |
|
4,354 |
|
|
|
10,777 |
|
|
Total equity |
|
336,936 |
|
|
|
375,760 |
|
|
Total liabilities and equity |
$ |
1,261,597 |
|
|
$ |
1,278,073 |
|
|
ABC Technologies Holdings Inc. Interim Condensed Consolidated Statement of Comprehensive Income (Loss) |
||||||||
|
|
|
For the three months ended |
||||||
|
|
|
|
2022 |
|
|
|
2021 |
|
|
(unaudited) |
|
|
|
|
||||
|
Sales |
|
$ |
318,864 |
|
|
$ |
163,415 |
|
|
Cost of sales |
|
|
288,254 |
|
|
|
162,563 |
|
|
Gross profit |
|
|
30,610 |
|
|
|
852 |
|
|
|
|
|
|
|
||||
|
Selling, general and administrative |
|
|
45,923 |
|
|
|
28,128 |
|
|
Loss (gain) on disposal and write-down of assets |
|
|
687 |
|
|
|
(24 |
) |
|
Loss (gain) on derivative financial instruments |
|
|
(549 |
) |
|
|
461 |
|
|
Share of loss of joint ventures |
|
|
40 |
|
|
|
1,574 |
|
|
Operating loss |
|
|
(15,491 |
) |
|
|
(29,287 |
) |
|
|
|
|
|
|
||||
|
Interest expense, net |
|
|
9,859 |
|
|
|
7,366 |
|
|
Loss before income tax |
|
|
(25,350 |
) |
|
|
(36,653 |
) |
|
|
|
|
|
|
||||
|
Income tax expense (recovery) |
|
|
|
|
||||
|
Current |
|
|
11,027 |
|
|
|
1,103 |
|
|
Deferred |
|
|
(12,928 |
) |
|
|
(9,570 |
) |
|
Total income tax recovery |
|
|
(1,901 |
) |
|
|
(8,467 |
) |
|
|
|
|
|
|
||||
|
Net loss |
|
$ |
(23,449 |
) |
|
$ |
(28,186 |
) |
|
|
|
|
|
|
||||
|
Other comprehensive income (loss) |
|
|
|
|
||||
|
Items that may be recycled subsequently to net earnings (loss): |
|
|
|
|
||||
|
Foreign currency translation of foreign operations and other |
|
|
(4,802 |
) |
|
|
(593 |
) |
|
Cash flow hedges, net of taxes |
|
|
(5,268 |
) |
|
|
(4,474 |
) |
|
Cash flow hedges recycled to net earnings, net of taxes |
|
|
(82 |
) |
|
|
447 |
|
|
Other comprehensive loss |
|
$ |
(10,152 |
) |
|
$ |
(4,620 |
) |
|
|
|
|
|
|
||||
|
Total comprehensive loss for the period |
|
$ |
(33,601 |
) |
|
$ |
(32,806 |
) |
|
|
|
|
|
|
||||
|
Earnings (loss) per share – basic and diluted |
|
$ |
(0.20 |
) |
|
$ |
(0.54 |
) |
|
ABC Technologies Holdings Inc. Interim Condensed Consolidated Statement of Cash Flows |
||||||||
|
|
|
For the three months ended |
||||||
|
(unaudited) |
|
|
2022 |
|
|
|
2021 |
|
|
Cash flows from (used in) operating activities |
|
|
|
|
||||
|
|
|
|
|
|||||
|
Net loss |
|
$ |
(23,449 |
) |
|
$ |
(28,186 |
) |
|
Adjustments for: |
|
|
|
|
||||
|
Depreciation of property, plant and equipment |
|
|
17,271 |
|
|
|
11,967 |
|
|
Depreciation of right-of-use assets |
|
|
4,226 |
|
|
|
3,626 |
|
|
Amortization of intangible assets |
|
|
7,744 |
|
|
|
5,186 |
|
|
Loss (gain) on disposal and write-down of assets |
|
|
687 |
|
|
|
(24 |
) |
|
Unrealized loss (gain) on derivative financial instruments |
|
|
(549 |
) |
|
|
417 |
|
|
Interest expense |
|
|
9,859 |
|
|
|
7,366 |
|
|
Share of loss of joint ventures |
|
|
40 |
|
|
|
1,574 |
|
|
Income tax recovery |
|
|
(1,901 |
) |
|
|
(8,467 |
) |
|
Share-based compensation expense (reversal) |
|
|
(1,026 |
) |
|
|
713 |
|
|
Write-down of inventories |
|
|
2,030 |
|
|
|
— |
|
|
Changes in: |
|
|
|
|
||||
|
Trade and other receivables and prepaid expenses and other |
|
|
18,544 |
|
|
|
18,199 |
|
|
Inventories |
|
|
(5,915 |
) |
|
|
(18,909 |
) |
|
Trade payables, accrued liabilities and other payables, and provisions |
|
|
14,173 |
|
|
|
(26,680 |
) |
|
Cash generated from (used in) operating activities |
|
|
41,734 |
|
|
|
(33,218 |
) |
|
|
|
|
|
|
||||
|
Interest received |
|
|
120 |
|
|
|
129 |
|
|
Income taxes paid |
|
|
(1,020 |
) |
|
|
(275 |
) |
|
Interest paid on leases, net of interest received |
|
|
(3,459 |
) |
|
|
(3,387 |
) |
|
Interest paid on long-term debt and other |
|
|
(5,997 |
) |
|
|
(4,896 |
) |
|
Net cash flows from (used in) operating activities |
|
|
31,378 |
|
|
|
(41,647 |
) |
|
|
|
|
|
|
||||
|
Cash flows used in investing activities |
|
|
|
|
||||
|
Purchases of property, plant and equipment |
|
|
(19,859 |
) |
|
|
(11,015 |
) |
|
Additions to intangible assets |
|
|
(5,761 |
) |
|
|
(5,375 |
) |
|
Net cash flows used in investing activities |
|
|
(25,620 |
) |
|
|
(16,390 |
) |
|
|
|
|
|
|
||||
|
Cash flows from (used in) financing activities |
|
|
|
|
||||
|
Net drawings (payments) on revolving credit facilities |
|
|
(25,000 |
) |
|
|
56,837 |
|
|
Principal payments of lease liabilities, net of sublease receipts |
|
|
(3,186 |
) |
|
|
(2,597 |
) |
|
Financing costs |
|
|
— |
|
|
|
(580 |
) |
|
Proceeds from other financing arrangement |
|
|
44,469 |
|
|
|
— |
|
|
Net cash flows from financing activities |
|
|
16,283 |
|
|
|
53,660 |
|
|
|
|
|
|
|
||||
|
Net increase (decrease) in cash |
|
|
22,041 |
|
|
|
(4,377 |
) |
|
Net foreign exchange difference |
|
|
(634 |
) |
|
|
(173 |
) |
|
Cash, beginning of period |
|
|
25,400 |
|
|
|
14,912 |
|
|
Cash, end of period |
|
$ |
46,807 |
|
|
$ |
10,362 |
|
Reconciliation of Net loss to Adjusted EBITDA
|
|
|
For the three months ended |
||||||
|
|
|
|
2022 |
|
|
|
2021 |
|
|
Reconciliation of Net loss to Adjusted EBITDA |
|
|
|
|
||||
|
Net loss |
|
$ |
(23,449 |
) |
|
$ |
(28,186 |
) |
|
Adjustments: |
|
|
|
|
||||
|
Income tax recovery |
|
|
(1,901 |
) |
|
|
(8,467 |
) |
|
Interest expense |
|
|
9,859 |
|
|
|
7,366 |
|
|
Depreciation of property, plant and equipment |
|
|
17,271 |
|
|
|
11,967 |
|
|
Depreciation of right-of-use assets |
|
|
4,226 |
|
|
|
3,626 |
|
|
Amortization of intangible assets |
|
|
7,744 |
|
|
|
5,186 |
|
|
EBITDA |
|
$ |
13,750 |
|
|
$ |
(8,508 |
) |
|
|
|
|
|
|
||||
|
Loss (gain) on disposal and write-down of assets |
|
|
687 |
|
|
|
(24 |
) |
|
Unrealized loss (gain) on derivative financial instruments |
|
|
(549 |
) |
|
|
417 |
|
|
Transactional, recruitment and other bonuses |
|
|
— |
|
|
|
11 |
|
|
EBITDA from Poland operations1 |
|
|
1,389 |
|
|
|
— |
|
|
Business transformation related costs2 |
|
|
13,228 |
|
|
|
1,164 |
|
|
Share of loss of joint ventures |
|
|
40 |
|
|
|
1,574 |
|
|
EBITDA from joint ventures3 |
|
|
1,016 |
|
|
|
(678 |
) |
|
Write-down of inventories4 |
|
|
2,030 |
|
|
|
— |
|
|
Share-based compensation expense |
|
|
(1,026 |
) |
|
|
713 |
|
|
Lease payments, net of sublease receipts |
|
|
(6,645 |
) |
|
|
(5,984 |
) |
|
Adjusted EBITDA |
|
$ |
23,920 |
|
|
$ |
(11,315 |
) |
- Represents net impact on EBITDA from Poland operations that are planned to be shut down in Q4 Fiscal 2023. Refer to the subsequent event section for more details.
- Includes $7.4 million of costs incurred in connection with the restructuring activities, which mainly relates to the severance and asset relocation expenses. Refer to the recent development section for more details. In addition, $2.6 million of costs were incurred in connection with the ongoing work to evaluate potential acquisition targets.
- Represents 50% of joint ventures’ EBITDA, which corresponds to the Company’s proportionate share of ownership in the joint ventures.
- A write-down relating to Poland tooling inventories of $2.0 was recorded in Q1 Fiscal 2023.
Reconciliation of net cash flows from (used in) operat
Contacts
Investor Contact:
Nathan Barton
Investor Relations
[email protected]