/EINPresswire.com/ -- SAINT-EPHREM-DE-BEAUCE, QUEBEC--(Marketwired - Nov 21, 2016) - Sigma Industries Inc. (TSX VENTURE:SSG), a manufacturing company specializing in the production of composite components, announces results for the second quarter of its 2017 fiscal year ended October 29, 2016.

"Sigma Industries' second quarter operating results continue to reflect the important slowdown in the U.S. heavy-duty truck industry. However, we remained profitable despite these adverse market conditions. During the quarter, we also made an important step forward by completing the refinancing of our long-term debt and subordinated convertible loan, which provides Sigma Industries with more favourable terms and conditions, while also improving working capital. Looking ahead, we expect market conditions to remain difficult in the heavy-duty truck market. While this will put additional pressure on revenue generation and profitability, we intend to remain focussed on reducing costs and further improving operating efficiency to mitigate the impact," said Denis Bertrand, President and Chief Executive Officer of Sigma Industries.

SECOND QUARTER RESULTS

Revenues for the second quarter of fiscal 2017 amounted to $12.6 million, compared with $18.0 million in the second quarter of fiscal 2016. This decrease is essentially attributable to lower revenues from the heavy-duty truck industry resulting from a market slowdown in the United States. This factor was partially offset by higher sales to the wind energy market due to increased customer orders.

Excluding items not related to current operations, Sigma Industries recorded adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") of $1.2 million in the second quarter of fiscal 2017, up from $1.0 million last year. The increase reflects year-over-year variations in the fair value of foreign exchange derivatives held by the Company. Earnings before interest, taxes, depreciation and amortization ("EBITDA") were $0.7 million, representing 5.4% of revenues, versus $1.5 million, or 8.1% of revenues, a year earlier. The reduction in dollars and as a percentage of sales mainly reflects lower business volume, partially offset by the execution of a contract with a higher profitability.

Sigma Industries concluded the second quarter of fiscal 2017 with net income of $149,746, or $0.01 per basic and diluted share, versus $717,919, or $0.06 per basic and diluted share, in the second quarter of fiscal 2016.

SIX-MONTH RESULTS

For the six-month period ended October 29, 2016, revenues reached $26.0 million, versus $34.4 million in the six-month period ended October 31, 2015. Adjusted EBITDA amounted to $2.4 million, up from $2.3 million a year earlier, while EBITDA stood at $1.7 million, compared with $2.5 million in the prior year. Net income totalled $436,240, or $0.04 per basic share ($0.02 per diluted share), versus $1.0 million, or $0.09 per basic and diluted share, last year.

SELECTED FINANCIAL INFORMATION

Consolidated results of operations		Three months ended		Six months ended
(unaudited, in thousands of Canadian dollars except per-share amounts)		October 29, 2016	October 31, 2015	October 29, 2016	October 31, 2015
		$	$	$	$
Revenues		12,621	17,951	26,032	34,440
EBITDA		678	1,462	1,668	2,496
Net income		150	718	436	1,005
	per share (basic)	0.01	0.06	0.04	0.09
	per share (diluted)	0.01	0.06	0.02	0.09

Reconciliation of EBITDA, adjusted EBITDA and net income	Three months ended			Six months ended
(unaudited, in thousands of Canadian dollars)	October 29, 2016	October 31, 2015		October 29, 2016	October 31, 2015
	$	$		$	$
Net income	150	718		436	1,005
PLUS (less):
Income tax expense	-	-		-	1
Depreciation and amortization	299	378		713	730
Financial expenses	229	366		519	760
EBITDA	678	1,462		1,668	2,496
PLUS (less):
Net loss (gain) in fair value of foreign exchange derivatives	332	(197	)	545	60
Write-off of financial expenses and fees related to new financing	192	-		192	-
Gain on disaster	-	(264	)	-	(264	)
Adjusted EBITDA	1,202	1,001		2,405	2,292

Consolidated balance sheet data	As at
(in thousands of Canadian dollars)	October 29, 2016	April 30, 2016
	$	$
Total assets	22,841	24,896
Total liabilities	18,931	21,697
Shareholders' equity	3,910	3,699

NON-IFRS FINANCIAL MEASURES

The information in this press release includes certain measures that are not financial measures prescribed under IFRS. Sigma Industries uses earnings before interest, taxes, depreciation and amortization ("EBITDA") and adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") in assessing its financial performance. As there is no generally accepted method of calculating these financial measures, they may not be comparable to similar measures reported by other companies. EBITDA is obtained by adding net income (loss) plus income taxes, financial expenses, as well as depreciation and amortization. Adjusted EBITDA consists of EBITDA plus (minus) items not related to current operations. These measures do not represent cash flow available for repayment of debt, payment of dividends, reinvestment or other discretionary uses, and should not be considered in isolation or as a substitute for other measures of performance calculated according to IFRS.

ABOUT SIGMA INDUSTRIES

Sigma Industries Inc. (TSX VENTURE:SSG), a manufacturing company specializing in the production of composite components, has two operating subsidiaries and employs 300 people. The Company is active in the heavy-duty truck, coach, transit, machinery and wind energy markets. Sigma sells its products to original equipment manufacturers and distributors in the United States, Canada and Europe.

FORWARD-LOOKING STATEMENTS

This press release contains certain forward-looking statements about the Company. Such forward-looking statements are dependent on a number of factors and are subject to risks and uncertainties. Actual results may differ from those expected. The information contained in this press release is dated November 21, 2016, the date on which management approved the press release. Management does not assume any obligation to update or revise any forward-looking statements, whether as a result of new information or future events, except as required by law.

Note to readers: Complete unaudited condensed interim financial statements and Management's Discussion & Analysis of Financial Position and Operating Results have been posted on SEDAR and are available at www.sedar.com.

Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.