PFB Corporation Announces Results for the Third Quarter Ended September 30, 2019 and Declares One Dollar Per Common Share Special Dividend

STOCK SYMBOL:  PFB

CALGARY, Oct. 24, 2019 /CNW/ - (TSX – PFB) PFB Corporation ("PFB" or the "Corporation") reports its financial results for the third quarter ended September 30, 2019. 

For the three month period ended September 30, 2019, PFB Corporation reports consolidated net income of $3,442,000, basic earnings of $0.51 per share, as compared to a consolidated net income of $3,263,000 basic earnings of $0.48 per share, in the comparative three month period of 2018.

Consolidated sales were $36,874,000 in the third quarter of 2019, compared to sales of $39,374,000 in the third quarter of 2018, a decrease of $2,500,000 or 6.3%. Gross margin during the period improved to 27.7% from 24.8% in the comparative 2018 period.

For the nine month period ended September 30, 2019, consolidated net income was $5,331,000, basic earnings of $0.79 per share, as compared to net income of $4,093,000, basic earnings of $0.61 per share reported in the comparative nine month period of 2018.

Consolidated sales in the nine month period ended September 30, 2019 were $96,408,000 as compared to sales of $93,062,000 in the comparative nine month period of 2018, an increase of $3,346,000 for the nine months. For the nine month period, gross margin was 25.3%, compared to 22.6% in the comparative 2018 period. 

Adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA)¹ for the third quarter of 2019 was $6,080,000 as compared to adjusted EBITDA of $5,965,000 in the third quarter of 2018, an increase of $115,000. For the nine month period ended September 30, 2018, adjusted EBITDA was $11,675,000, as compared to $10,153,000 in the nine month period 2018. 

Sales were lower in the most recent quarter, compared to the same quarter last year as a result of product mix and project timing. However, continued stable raw material input costs resulted in improved gross margins and a record adjusted EBITDA in a third quarter period.

Results for the comparative periods in 2018 have been adjusted to reflect the retrospective application of IFRS 16, Leases, which was adopted January 1, 2019. 

Dividend Payment

The Board of Directors has approved the payment of a regular quarterly dividend of $0.09 per common share plus a one-time special dividend of $1.00 per common share for a total combined dividend of $1.09 per common share. The combined dividend will be paid on November 29, 2019 to shareholders of record on November 15, 2019.

¹Non-GAAP Financial Measures

Adjusted EBITDA is a supplemental measure of performance not defined by International Financial Reporting Standards (IFRS) and, therefore, it does not have any standardized meaning under IFRS. Therefore, the measure is unlikely to be comparable to similar measures presented by other issuers. The reconciliation of adjusted EBITDA to net income and the reason why we use this measure can be found in Management's Discussion and Analysis (MD&A) for the third quarter ended September 30, 2019, under section 19 titled "Non-IFRS Financial Measures". 

About PFB

PFB Corporation has two operating subsidiaries, Plasti-Fab Ltd. that operates in Canada and PFB America Corporation that operates in the United States. The Canadian segment primarily derives its revenues from the sale of expanded polystyrene ("EPS") foam products, which it manufactures at its facilities in Canada. The USA segment primarily derives its revenues from the sale of EPS foam products, customized log and timber structures made at its facilities in the United States which typically include design and installation services that together provide the basis for a bundled sale of its manufactured products. Both segments develop, manufacture and market insulation building products and technologies based on expanded polystyrene technology; that, when used as components of a building envelope, enable residential and commercial structures to be highly energy-efficient. We are also experts in engineered geotechnical applications of our products. PFB building products are used in both new and renovation markets in residential, commercial and industrial projects.

PFB Corporation is listed for trading on the Toronto Stock Exchange, symbol PFB.

PFB's condensed interim consolidated financial statements and interim MD&A for the three month periods ended September 30, 2019 and 2018 will be posted on SEDAR (www.sedar.com) on or after October 24, 2019.

SOURCE PFB Corporation