Canada NewsWire
EDMONTON, Aug. 3, 2017
EDMONTON, Aug. 3, 2017 /CNW/ - ZCL Composites Inc. (TSX: ZCL) today announced financial results for the second quarter ended June 30, 2017.
Q2 2017 compared with Q2 2016 (Continuing Operations)
First Half 2017 compared with First Half 2016 (Continuing Operations)
"ZCL had a very strong second quarter in both revenue and profitability," said Ron Bachmeier, President and Chief Executive Officer. "We have fully made up for the weather-impacted slow first quarter, and saw activity pick up further, bringing us to 7% revenue growth when compared to the first half of 2016."
"While our backlog is down slightly, our outlook remains positive and we expect to continue our profitable revenue growth in the second half of the year," said Mr. Bachmeier.
Dividends
The Board has declared a quarterly dividend of $0.12 per share, the same rate as the prior quarter and a 50% increase over the $0.08 declared at the same time last year. The dividend will be paid on October 16, 2017, to the shareholders of record as of September 30, 2017.
Backlog
Backlog was $51.5 million as at June 30, 2017, down $3.6 million or 6%, from $55.0 million a year earlier. We believe the reduction is not an indicator of activity for the rest of the year and remain confident in continuing to grow revenue in the second half of the year.
Fuel Markets backlog of $45.6 million was $2.4 million or 5% lower compared to the second quarter of 2016. Although North American Fuel Markets backlog was down, this was partially offset by International Fuel Market backlog which was up $1.1 million compared to the same quarter in 2016.
Water & Wastewater Markets backlog of $4.8 million, was down $0.4 million compared to the quarter ended June 30, 2016 with the decrease attributable to US markets. Canadian Water & Wastewater Markets were comparable to the same quarter in 2016.
Oil & Gas/Industrial Market backlog of $1.1 million was down $0.8 million from a year earlier. A $0.3 million increase in Oil & Gas backlog was more than offset by a decrease in US Industrial Market backlog.
The total backlog increased by $0.6 million from $50.8 million at March 31, 2017. A $2.7 million increase in Fuel Markets backlog was partially offset by a decrease in Oil & Gas/Industrial backlog. Water & Wastewater Markets were comparable to a quarter earlier.
Financial Position
Our balance sheet remained strong, with working capital of $53.6 million and a cash and cash equivalents balance of $19.7 million. The strength of our balance sheet allows us to maintain flexibility and preserve our ability to take advantage of future profitable growth opportunities that may arise.
2017 Outlook
On a half-year basis, our 2017 revenues are up 7% over the same period of 2016. On balance, we expect continued growth in 2017. However, we caution that if the strengthening trend of the Canadian dollar against the US dollar in July 2017 continues, it might partially offset anticipated growth in revenue due to the translation of our US operations revenue to Canadian dollars for reporting purposes.
Our outlook for the remainder of 2017 in the Fuel Markets remains positive and we are confident in achieving our growth objectives for this market. Among other indications, this expectation is based on feedback from our customers across North America.
In early 2017, with the objective to focus on our emerging Water & Wastewater Markets, we launched a number of initiatives aimed at improving the effectiveness of our go-to-market strategy and increasing our market share. This included the restructuring of the Water & Wastewater sales group, culminating with the addition in early July of a seasoned executive to lead this team. We believe that this greater level of focus, combined with current market intelligence indicating that spending on Water & Wastewater related projects is again on the rise, will enable us to meet our future growth objectives in these markets.
The Oil and Gas and Industrial Markets, which comprise of approximately 5% to 10% of our total revenues, continue to lag in the face of reduced spending in the Oil Sands of Western Canada.
Summary Financial Results
For the three months ended | 2017 | 2016 | 2015 | ||||||||
(in thousands of dollars, | June 30 | Mar 31 | Dec 31 | Sep 30 | Jun 30 | Mar 31 | Dec 31 | Sep 30 | |||
except per share amounts) | $ | $ | $ | $ | $ | $ | $ | $ | |||
Revenue by Market: | | | | | | | | | |||
| Fuel | 42,975 | 26,913 | 39,030 | 49,664 | 34,978 | 29,118 | 34,501 | 46,278 | ||
| Water & Wastewater | 6,688 | 4,202 | 6,433 | 5,902 | 6,213 | 4,398 | 6,758 | 6,794 | ||
| Oil & Gas/Industrial | 3,643 | 626 | 1,139 | 2,319 | 3,528 | 1,400 | 3,139 | 2,564 | ||
Total revenue | 53,306 | 31,741 | 46,602 | 57,885 | 44,719 | 34,916 | 44,398 | 55,636 | |||
Net income | | | | | | | | | |||
| Continuing operations | 6,031 | 919 | 5,749 | 7,741 | 4,396 | 2,132 | 4,774 | 7,896 | ||
| Discontinued operations (note 1) | (374) | (37) | 146 | (1,249) | (2,842) | (1,094) | (889) Werbung Mehr Nachrichten zur ZCL COMPOSITES INC. Aktie kostenlos abonnieren
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