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GLV Inc, Canada
COMPANY WATCH
GLV Inc, Canada
H2O Innovation, Canada Key Figures (C$ thousand) Second quarter ended 31.12 2011
2010
Sales
7056.5
6354.1
Cost of Sales
5463.9
4360.3
Gross Profit
1592.6
1993.8
Operating Loss
(756.3)
(310.6)
40.3
EBITDA
(707.8)
(23.6)
6.5
6.9
Net Loss
(1214.5)
(523.7)
(1.6)
(0.7)
Six months ended 31.12 2011
2010 12 679.2
Key Figures (C$ million) Third quarter ended 31.12 2011
2010
Revenues Of Which: Ovivo Pulp and Paper
161.7
186.0
95.6 56.0
122.6 52.9
Cost of Sales
125.2
145.7
Gross Profit
36.5
EBITDA Net Earnings/(Loss)
Nine months ended 31.12 2011
2010
Sales
14 126.3
Revenues Of Which: Ovivo Pulp and Paper
486.0
495.6
Cost of Sales
293.4 161.9
320.9 144.4
Cost of Sales
379.7
394.1
Gross Profit
106.3
101.4
EBITDA
17.1
18.2
Net Earnings/(Loss)
(1.3)
(14.9)
COMMENT Industrial water and pulp treatment firm GLV Inc had a tough third quarter of fiscal 2012 with its revenues dropping 13.1% year-on-year to C$161.7 million and its loss for the period growing from C$0.7 million to C$1.6 million. The company attributed the sluggish performance to delays in the progress of some of its contracts, particularly in the Pulp and Paper Group, as well as to a slowdown in the pace of orders intake in its water treatment segment, Ovivo. The Pulp and Paper segment saw its sales for the quarter increase 5.9% on the year earlier to C$56.0 million, while Ovivo
March 2012
endured a drop of 22.0% to C$95.6 million. Performance for the corresponding nine-month period was similar, if a little stronger. Revenues were down 1.9% at C$486.0 million, while a net loss of C$1.3 million compared with the year earlier loss of C$14.9 million. At the end of the quarter GLV’s order backlog stood at C$396.1 million, down from C$430.0 million at the end of the second quarter. For the full year, assuming exchange rates remain stable, GLV is maintaining its forecast for consolidated revenues of C$650 million to C$675 million. ■ www.glv.com
10 788.7
8800.6
Gross Profit
3337.6
3878.6
Operating Loss
(795.9)
(684.6)
EBITDA
(468.4)
(111.5)
Net Loss
(1302.7)
(1153.3)
COMMENT H2O Innovation has posted sales for its second quarter of fiscal 2012 of C$7.1 million, up 11.1% on the previous year. Net loss for the period was C$1.2 million compared to 2011’s C$0.5 million. Results for the corresponding half-year followed a similar pattern with net sales up 11.4% at US$14.1 million, while the net loss rose from C$1.2 million to C$1.3 million. Both of the company’s business segments recorded increased revenues for the second quarter compared with the year earlier. Sales of water treatment systems were up 13.9% at C$4.1 million, while revenues from specialty chemicals and consumables reached grew 7.1% to C$3.0 million. These modest revenues increases, however, did not translate to an increase in the quarter’s gross margin, which was 22.6 % compared to fiscal 2011’s 31.4 %. The decrease was attributed to the
delay in delivery of projects, lower margins on key contracts and charges associated with reorganisation. “Our results for the second quarter of fiscal 2012 show both progress and challenges,” Frédéric Dugré, the company’s president and CEO, said. “While total revenues are up 11% compared to the second quarter of fiscal 2011, they have remained stable compared to this year’s first quarter and have failed to reach our projections.” Despite the mixed performance, Dugré remained upbeat. “With our order backlog remaining high and above the C$30 million mark throughout the first six months of the year, we continue to expect reaching record yearend revenues as project delivery schedules will require us to increase production levels, which in turn should have a positive impact on revenue,” he said. ■ www.h2oinnovation.com
Filtration Industry Analyst
9
GLV Inc, Canada
H2O Innovation, Canada Key Figures (C$ thousand) Second quarter ended 31.12 2011
2010
Sales
7056.5
6354.1
Cost of Sales
5463.9
4360.3
Gross Profit
1592.6
1993.8
Operating Loss
(756.3)
(310.6)
40.3
EBITDA
(707.8)
(23.6)
6.5
6.9
Net Loss
(1214.5)
(523.7)
(1.6)
(0.7)
Six months ended 31.12 2011
2010 12 679.2
Key Figures (C$ million) Third quarter ended 31.12 2011
2010
Revenues Of Which: Ovivo Pulp and Paper
161.7
186.0
95.6 56.0
122.6 52.9
Cost of Sales
125.2
145.7
Gross Profit
36.5
EBITDA Net Earnings/(Loss)
Nine months ended 31.12 2011
2010
Sales
14 126.3
Revenues Of Which: Ovivo Pulp and Paper
486.0
495.6
Cost of Sales
293.4 161.9
320.9 144.4
Cost of Sales
379.7
394.1
Gross Profit
106.3
101.4
EBITDA
17.1
18.2
Net Earnings/(Loss)
(1.3)
(14.9)
COMMENT Industrial water and pulp treatment firm GLV Inc had a tough third quarter of fiscal 2012 with its revenues dropping 13.1% year-on-year to C$161.7 million and its loss for the period growing from C$0.7 million to C$1.6 million. The company attributed the sluggish performance to delays in the progress of some of its contracts, particularly in the Pulp and Paper Group, as well as to a slowdown in the pace of orders intake in its water treatment segment, Ovivo. The Pulp and Paper segment saw its sales for the quarter increase 5.9% on the year earlier to C$56.0 million, while Ovivo
March 2012
endured a drop of 22.0% to C$95.6 million. Performance for the corresponding nine-month period was similar, if a little stronger. Revenues were down 1.9% at C$486.0 million, while a net loss of C$1.3 million compared with the year earlier loss of C$14.9 million. At the end of the quarter GLV’s order backlog stood at C$396.1 million, down from C$430.0 million at the end of the second quarter. For the full year, assuming exchange rates remain stable, GLV is maintaining its forecast for consolidated revenues of C$650 million to C$675 million. ■ www.glv.com
10 788.7
8800.6
Gross Profit
3337.6
3878.6
Operating Loss
(795.9)
(684.6)
EBITDA
(468.4)
(111.5)
Net Loss
(1302.7)
(1153.3)
COMMENT H2O Innovation has posted sales for its second quarter of fiscal 2012 of C$7.1 million, up 11.1% on the previous year. Net loss for the period was C$1.2 million compared to 2011’s C$0.5 million. Results for the corresponding half-year followed a similar pattern with net sales up 11.4% at US$14.1 million, while the net loss rose from C$1.2 million to C$1.3 million. Both of the company’s business segments recorded increased revenues for the second quarter compared with the year earlier. Sales of water treatment systems were up 13.9% at C$4.1 million, while revenues from specialty chemicals and consumables reached grew 7.1% to C$3.0 million. These modest revenues increases, however, did not translate to an increase in the quarter’s gross margin, which was 22.6 % compared to fiscal 2011’s 31.4 %. The decrease was attributed to the
delay in delivery of projects, lower margins on key contracts and charges associated with reorganisation. “Our results for the second quarter of fiscal 2012 show both progress and challenges,” Frédéric Dugré, the company’s president and CEO, said. “While total revenues are up 11% compared to the second quarter of fiscal 2011, they have remained stable compared to this year’s first quarter and have failed to reach our projections.” Despite the mixed performance, Dugré remained upbeat. “With our order backlog remaining high and above the C$30 million mark throughout the first six months of the year, we continue to expect reaching record yearend revenues as project delivery schedules will require us to increase production levels, which in turn should have a positive impact on revenue,” he said. ■ www.h2oinnovation.com
Filtration Industry Analyst
9