Construction/Building — November 6, 2012PFB Corporation Announces Its Third Quarter Results for 2012, Declares Regular Quarterly Dividend, and Provides Update on Nova Chemicals Corporation Transaction
CALGARY, ALBERTA--(Marketwire - Nov. 6, 2012) - PFB Corporation (TSX:PFB) reports its financial results for the three and nine month periods ended September 30, 2012, and declares regular quarterly dividend.
Results for the Three Month and Nine Month Periods Ended September 30, 2012
Consolidated income for the three month period ended September 30, 2012, was $316,000, basic earnings per share of $0.05, compared to income of $2,870,000, basic earnings per share of $0.44, reported in the comparative three month period of 2011. Sales in the three month period ended September 30, 2012, were $23,298,000 as compared to sales of $28,920,000 in the comparative three month period of 2011.
Sales to a large public works project were $893,000 compared with $4,991,000 in the comparative period of 2011, accounting for $4,098,000 of the decrease in sales. This project is reaching a close in the fourth quarter but there are significant volumes to be delivered under new awarded contracts in both Q4 and in 2013. Additionally, third quarter sales by the USA operations decreased by $1,884,000 when compared to the 2011 period. The timing of sales recognition is the source of these differences. Currently both Canadian and USA operations are experiencing order book strength.
Consolidated income reported in the current quarter includes the deduction of one-time acquisition costs of $309,000 ($226,000 after tax), that relate to legal and due diligence charges as a result of business development activities. Unrealized foreign exchange losses during the quarter of $532,000 ($388,000 after tax) arose from the combined impact of out-of-the-money forward foreign exchange contracts, revaluing larger than normal cash balances held in USD, and revaluing a currency sensitive loan between operating segments. A non-recurring gain on an insurance claim of $726,000 ($463,000 after tax) was recorded in the comparative period of 2011.
The consolidated results for the nine month period ended September 30, 2012, were income of $306,000, basic earnings per share of $0.05, compared to income of $2,230,000, basic earnings per share of $0.34, reported in the comparative nine month period of 2011. Sales in the nine month period ended September 30, 2012, were $64,576,000 compared to sales of $65,791,000 in the comparative nine month period of 2011, a decrease of $1,215,000.
Shipments to the large public works project were $6,284,000 during the nine month period of 2012 compared with shipments of $11,156,000 in the comparative period of 2011. Additionally, during the nine month period of 2012, one-time acquisition costs of $1,083,000 ($791,000 after tax) were incurred that relate to legal and due diligence charges as a result of possible corporate transactions and unrealized foreign exchange losses amounted to $489,000 ($357,000 after tax).
Quarterly Dividend Payment
The Board of Directors has approved the payment of a regular quarterly dividend of $0.06 per common share. The dividend will be paid on November 30, 2012, to shareholders of record on November 15, 2012.
Update on Nova Chemicals Corporation Transaction
On May 9, 2012, PFB Corporation and NOVA Chemicals Corporation ("NOVA Chemicals") announced that they had signed a letter of intent for PFB Corporation to acquire NOVA Chemicals' Performance Styrenics business. NOVA Chemicals will acquire an equity stake in the Corporation and hold two seats on the Corporation's Board of Directors following closing. Both parties continue to work diligently on finalizing the definitive agreement. The acquisition is subject to a definitive agreement being entered into, regulatory approval, and other customary conditions, including approval of the Boards of Directors of both companies, and PFB Corporation's shareholder approval.
Honourable Harvie Andre
On October 21, 2012 we received news that our long standing director Hon. Harvie Andre PhD passed on. Dr. Andre was a strong supporter during his many years of service to the Company for which we will always be most grateful. We extend our most sincere condolences to his family.
PFB Corporation is a vertically integrated manufacturer of insulating building products that are marketed across North America under five brands. Plasti-Fab, EPS Product Solutions® are products, manufactured using expanded polystyrene (EPS) as base raw materials, that are delivered to customers in five segmented markets. Advantage ICF Systems® are insulating concrete forming systems that are employed to build insulated foundations and walls from concrete in both residential and commercial markets. Insulspan® Structural Insulating Panels Systems (SIPS) are used to create structural walls and to replace trusses on roof systems to form an energy-efficient structural envelope. PFB Custom Homes Group includes Riverbend® Timber Framing, PrecisionCraft® Log &Timber Homes, Point Zero™ Homes and M.T.N Architects. Each brand provides clients with our exclusive Total Home Solution® for building custom homes in the US, Canada and internationally that can include Insulspan SIPS for the walls and roof, and Advantage ICFS for the building's foundations.
PFB Corporation is listed for trading on the Toronto Stock Exchange, symbol PFB.
PFB Corporation's unaudited condensed consolidated financial statements and interim MD&A for the three and nine month periods ended September 30, 2012 and 2011 will be posted on SEDAR (www.sedar.com) before November 14, 2012.
Stephen P. Hardy
Vice President & CFO
(403) 569 4303
(403) 569 4075 (FAX)
100, 2886 Sunridge Way NE
Calgary, Alberta T1Y 7H9
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