Héroux-Devtek reports fiscal 2014 fourth quarter and year-end results

Consolidated sales from continuing operations amounted to $91.2m, up from $73.8m in the fourth quarter of fiscal 2013. This $17.4m increase reflects mainly a $14.7m contribution over a two-month period from APPH. Sales to the commercial aerospace market increased 17.9% to $38.0m reflecting commercial sales of $6.9m from APPH over a two-month period. Excluding the latter, commercial sales declined slightly, as lower sales in the regional jet market and lower aftermarket sales on the Bombardier CL-415 program were partially offset by higher sales to the large commercial aircraft market, mainly from new actuator business on the B-777 program. Sales to the military aerospace market rose 28.0% to $53.2m mainly driven by a $7.8m two-month contribution from APPH. On an internal basis, military sales increased 9.2% due to higher spare parts requirements on the P-3 and C-130 programs and favourable currency fluctuations. Gross profit reached $15.4m, or 16.9% of sales, up from $12.0m, or 16.3% of sales, last year. Adjusted net income from continuing operations, which excludes acquisition-related costs and restructuring charges, net of taxes, stood at $6.0m in the fourth quarter of fiscal 2014, versus $4.6m in the fourth quarter of fiscal 2013. For the fiscal year ended March 31, 2014, consolidated sales from continuing operations reached $272.0m, up 5.8% from $257.0m in fiscal 2013. Gross profit amounted to $42.4m, or 15.6% of sales, up from $39.8m, or 15.5% of sales, in fiscal 2013 reflecting the addition of APPH. Excluding acquisition-related costs of $5.0m and restructuring charges of $1.9m, adjusted EBITDA from continuing operations stood at $35.8m, or 13.2% of sales, in fiscal 2014, compared with $33.0m, or 12.8% of sales, a year earlier. Adjusted net income from continuing operations totalled $15.3m versus $13.4m in the prior year. (all amounts are in Canadian dollars)