Héroux-Devtek reported strong financial results for the first quarter ended June 30, 2019.
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Unless otherwise indicated, all amounts are in Canadian dollars.
Consolidated sales grew 67.2% to $143.4 million, up from $85.8 million in the same period last year.
$44.6 million of this increase was driven by the CESA and Beaver acquisitions while the growth of Héroux-Devtek legacy sales contributed 15.2% or $13.1 million.
Commercial sales grew 47.4% to $67.4 million, up from $45.8 million in the same period last year.
The strong increase was driven by the CESA and Beaver acquisitions and growing legacy sales from the ramp-up of the Boeing 777/777x programs.
Defence sales grew 89.9% to $76.0 million, up from $40.0 million in the same period last year.
This strong increase was driven by the CESA and Beaver acquisitions, growing Héroux-Devtek legacy sales mainly from the ramp-up of the F-35 program and higher aftermarket sales.
Gross profit increased to $24.2 million, or 16.9% of sales, up from $13.1 million, or 15.2% of sales last year.
The increase is attributable to the impact of the Beaver and CESA acquisitions and positive foreign exchange rate fluctuations, partially offset by higher manufacturing costs at our Longueuil facility.
Operating income increased to $10.4 million, or 7.2% of sales, up from $4.9 million, or 5.7% of sales last year.
This quarter's operating income included $0.6 million of non-recurring items, up from $0.4 million of non-recurring items in the same period last year.
These non-recurring items are mainly acquisition-related costs.
Adjusted EBITDA, which excludes these non-recurring items, stood at $21.5 million, or 15.0% of sales, compared with $12.2 million, or 14.3% of sales, one year ago.
Net income for the first quarter of fiscal 2020 stood at $6.4 million, or $0.18 per diluted share, up from $3.6 million, or $0.10 per diluted share, in the corresponding period of last fiscal year.
Excluding non-recurring items net of taxes, adjusted net income reached $7.0 million, or $0.19 per share, up from $3.8 million, or $0.10 per share last year.
As at June 30, 2019, Héroux-Devtek's funded (firm orders) backlog stood at $747 million, an increase of 19.7% from $624 million as at March 31, 2019 mainly on the strength of organic growth and the contribution of Alta. ■