5N Plus Inc. (5N Plus) has reports sales of CAD18.1 million for the second quarter of fiscal 2009, compared with the sales of CAD6.8 million in the year-ago quarter. It has also reported net earnings of CAD5.8 million, or CAD0.13 per share, for the second quarter of fiscal 2009, compared with the net earnings of CAD1.2 million, or CAD0.04 per share, in the year-ago quarter.
EBITDA increased by 282.0% in the second quarter to CAD8,871,494 up from CAD2,322,589 during the second quarter of the previous fiscal year.
For the six month period ended November 30, 2008, net earnings increased by 337.5% to CAD10,144,122 (CAD0.22 per share) and sales by 143.9% to CAD32,165,699. This compares with net earnings of CAD2,318,804 (CAD0.08 per share) and sales of CAD13,190,216 for the same period of the previous fiscal year. EBITDA also increased during the six month period ended November 30, 2008 to CAD15,477,014 up by 252.1% from CAD4,395,074 for the corresponding period of the previous fiscal year.
“We are pleased to report the results of the second quarter of our 2009 fiscal year which has been characterized by continuing growth and record level profitability. This reflects the strong operational performance now at both of our facilities and the increasing demand for our products. In spite of the current financial world crisis, demand for our products remained strong during the quarter as we managed to increase sales and further strengthen our twelve month backlog of orders to a record level of $54,722,363 as at November 30, 2008. The current quarter was the first throughout which our German facility was fully operational and we are extremely pleased by its performance and the rapid ramp up in production capacity that has been achieved there” commented Mr. Jacques L’Ecuyer, president and chief executive officer.
Ecuyer added, “We approved soon after the closing of the quarter a normal course issuer bid as we believe that the underlying value of 5N Plus may not be reflected in the market price of our common shares. Consequently we estimate that the repurchase of our shares under certain conditions may constitute an appropriate use of our financial resources and be beneficial to 5N Plus and its shareholders”.
L’Ecuyer concluded, “We are monitoring closely the impact of the current financial turbulences on our customers and business. We are confident that we have both the operational and financial flexibility to make the necessary adjustments in our operating practices if the situation warrants. Furthermore, we continue to believe that our strong balance sheet with cash and cash equivalents of over $60 million and our ability to generate positive cash flows position us uniquely to take advantage of both organic growth and in particular accretive acquisitions opportunities”.