Héroux-Devtek reports fiscal 2015 second quarter results

Héroux-Devtek, a leading Canadian manufacturer of aerospace products, today reported its results for the second quarter of fiscal 2015 ended September 30, 2014. Results include the contribution of APPH Limited and APPH Wichita Inc. (collectively “APPH”), acquired on February 3, 2014. Consolidated sales grew 49.1% to CA$84.1m, up from CA$56.4m in the second quarter of fiscal 2014. This CA$27.7m increase is essentially attributable to a CA$23.5m contribution from APPH, while year-over-year fluctuations in the value of the Canadian currency versus the US currency increased second-quarter sales by CA$1.5m. Excluding these elements, sales increased CA$2.7m, or 4.8%, on a comparable basis. Sales to the commercial aerospace market increased 38.8% to CA$37.5m reflecting commercial sales of CA$7.9m from APPH. Excluding the latter, commercial sales rose 9.4% due to higher production rates for certain large commercial aircraft programs, mainly the B-777 and B-787 aircraft, and higher sales to the business jet market reflecting the entry into production of the Embraer Legacy 450/500 program. Gross profit reached CA$13.1 million, or 15.6% of sales, up from CA$7.9m, or 14.0% of sales, last year. The increase in dollars and as a percentage of sales reflects the acquisition of APPH, including its more favourable product mix during the period. Reflecting higher gross profit, adjusted EBITDA, which excludes restructuring charges of CA$0.8m related to manufacturing capacity optimization and consolidation initiatives announced in January 2014, as well as certain charges related to the integration of APPH’s operations, stood at CA$10.0m, or 11.9% of sales, up from CA$6.5m, or 11.6% of sales, a year ago. Adjusted net income, which excludes restructuring charges of CA$0.6m, net of taxes, stood at CA$3.8m in the second quarter of fiscal 2015, versus CA$2.8m in the second quarter of fiscal 2014, excluding acquisition-related costs of CA$0.2m, net of taxes. Last year, the Corporation recorded a favourable adjustment of deferred income tax liabilities amounting to CA$0.9m.