Day: September 12, 2024

HIGHLIGHTS
(All amounts are in Canadian dollars unless otherwise noted.)

• Revenue of $182.3 million recorded during the 6-month period ended July 31, 2024, up 13.6% compared with the same period a year earlier.
• Net income of $16.0 million and $31.3 million recorded for the 3-month and 6-month periods ended July 31, 2024, up 51.8 % and 96.5% respectively from the same periods a year ago.
• Cash flow from operating activities of $60.1 million for the 6-month period ended July 31, 2024.
• Order backlog ⁽¹⁾ at $402.3 million as at July 31, 2024.

TERREBONNE, QB, Sept. 12, 2024 /CNW/ – ADF GROUP INC. (“ADF” or the “Corporation”) DRX, recorded revenues of $74.9 million during the second quarter ended July 31, 2024, compared with $80.2 million for the same period a year earlier. After the first six months of the fiscal year, revenues totalled $182.3 million, which is $21.8 million or 13.6% more than for the same period a year earlier.

Although revenues to date are $21.8 million higher than a year ago, those for the second quarter were impacted by one client’s delays in construction site preparation. The Corporation estimates that had it not been for these delays, revenues for the quarter and the 6-month period ended July 31, 2024, would have been approximately $35.0 million higher, revenues coming from additional steel erecting (installation) work. In fact, more than 300 truck loads of fabricated structural steel and steel components are waiting for delivery to the construction site. These revenues are naturally not lost but rather pushed forward in time. Given that installation schedules are difficult to compress over time, these missing revenues risk being pushed forward to the next fiscal year.

Gross margin, as a percentage of revenues ⁽¹⁾ went from 22.2% for the 3-month period ended July 31, 2023, to 36.9% for the same period ended July 31, 2024. Gross margin, as a percentage of revenue ⁽¹⁾ went from 19.5% during the first semester ended July 31, 2023, to 32.3% in the same period ended July 31, 2024.

The improvement in margins is in line with the increase observed in recent quarters and is largely attributable to a better absorption of fixed costs, in line with the increase in fabrication volume, the continued favorable impact of the investments in automation at ADF’s plant in Terrebonne, Quebec, and a favorable mix of projects.  For the second consecutive quarter, the mix of products in fabrication was particularly favorable.

Adjusted earnings before interest, taxes, depreciation, and amortization (adjusted EBITDA) ⁽²⁾ for the 6-month period ended July 31, 2024, at $48.0 million, was $25.3 million higher than at the same date a year ago.

For the quarter ended July 31, 2024, ADF recorded net income of $16.0 million ($0.51 per basic and diluted share) compared with net income of $10.5 million ($0.32 per share, basic and diluted) a year earlier. At the close of the first semester on July 31, 2024, net income totalled $31.3 million ($0.98 per share, basic and diluted) compared with net income of $15.9 million ($0.49 per share, basic and diluted) for the same period a year ago.

The Corporation’s order backlog ⁽¹⁾ stood at $402.3 million as at July 31, 2024. Projects currently in the order backlog will extend until the end of the fiscal year ending January 31, 2026.

As at July 31, 2024, the Corporation had working capital ⁽¹⁾ of $90.1 million. The Corporation’s operating activities generated cash of $60.1 million during the first 6 months ended July 31, 2024. The Corporation remains in a good position to continue its current operations and carry out its development projects.

Financial Highlights

Outlook

“We closed the periods ended July 31, 2024, with higher net income while increasing our liquidities, even with the decrease in revenues during the quarter closed on July 31, 2024, compared with last fiscal year. We are therefore maintaining the same objectives that have guided us for the past few quarters, namely the order backlog growth, cash generation and operational excellence, in order to continue to grow our Corporation in the coming quarters” said Mr. Jean Paschini, Chairman of the Board and Chief Executive Officer.

Dividend

On September 11, 2024, the Board of Directors of ADF Group approved the payment of a semi-annual dividend of $0.02 per Subordinate Voting Share and per Multiple Voting Share, payable on October 17, 2024, to Shareholders of Record as at September 27, 2024.

Conference call with Investors

An investor conference call will be held this morning, September 12, 2024, at 10 a.m. (EST) to discuss results for the second quarter and 6-month period ended July 31, 2024.

To join the conference call without operator assistance, you can register with your phone number on https://link.meetingpanel.com/?id=64653 to receive an instant automated call back. You can also join the conference call with operator assistance by dialing 1 (888) 510-2154 a few minutes prior to the conference call scheduled start time.

A replay of the conference call will be available from 1:00 p.m. September 12, 2024, until midnight, September 19, 2024, by dialing 1 (888) 660-6345; followed by the access code 64653 #.

The conference call (audio) will also be available at www.adfgroup.com. Members of the media are invited to join in listening mode.

About ADF Group Inc. | ADF Group Inc. is a North American leader in the design and engineering of connections, fabrication, including the application of industrial coatings, and installation of complex steel structures, heavy steel built-ups, as well as in miscellaneous and architectural metals for the non-residential infrastructure sector. ADF Group Inc. is one of the few players in the industry capable of handling highly technically complex mega projects on fast-track schedules in the commercial, institutional, industrial and public sectors. The Corporation operates two fabrication plants and two paint shops, in Canada and in the United States, and a Construction Division in the United States, which specializes in the installation of steel structures and other related products.

Forward-Looking Information | This press release contains forward-looking statements reflecting ADF’s objectives and expectations. These statements are identified by the use of verbs such as “expect” as well as by the use of future or conditional tenses. By their very nature these types of statements involve risks and uncertainty. Consequently, reality may differ from ADF’s expectations.

Non-GAAP Financial Measures and Other Financial Measures | Are measures derived primarily from the consolidated financial statements but are not a standardized financial measure under the financial reporting framework used to prepare the Corporation’s financial statements. Therefore, readers should be careful not to confuse or substitute them with performance measures prepared in accordance with GAAP. In addition, readers should avoid comparing these non-GAAP financial measures to similarly titled measures provided or used by other issuers. The definition of these indicators and their reconciliation with comparable International Financial Reporting Standards measure is as follows:

Adjusted EBITDA

Adjusted EBITDA shows the extent to which the Corporation generates profits from operations, without considering the following items:

• Net financial expenses;
• Income tax expense;
• Foreign exchange (gains) losses, and
• Depreciation and amortization of property, plant and equipment, intangible assets, and right-of-use assets.

Net income is reconciled with adjusted EBITDA in the table below:

Gross Margin as a Percentage of Revenues

Gross margin as a percentage of revenue indicator is used by the Corporation to assess the level of profitability for a given period based on the project mix for that same period. This indicator is subject to fluctuations in project prices and also in the operational efficiency of the Corporation. The indicator of gross margin as a percentage of revenues results from dividing gross margin by revenues.

Order Backlog

The order backlog is a measure used by the Corporation to assess future revenue levels. The order backlog includes firm orders obtained by the Corporation, either through a firm contract or a formal notice to proceed confirmed by the client. The order backlog disclosed by the Corporation therefore includes the portion of confirmed contracts that have not been put into production.

Working Capital

The working capital indicator is used by the Corporation to assess whether current assets are sufficient to meet current liabilities. Working capital is equal to current assets, less current liabilities.

SOURCE ADF Group Inc.

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CBL INTERNATIONAL LIMITED
(Incorporated in Cayman Islands with limited liabilities)
BANL

KUALA LUMPUR, Malaysia, Sept. 12, 2024 (GLOBE NEWSWIRE) — CBL International Limited BANL (the “Company” or “CBL”), the listing vehicle of Banle Group (“Banle” or “the Group”), a leading marine fuel logistic company in the Asia-Pacific region, today announced its unaudited financial results for the six months ended June 30, 2024.

Financial Highlights:

• Revenue: Consolidated revenue for 1H 2024 increased by 44.4% to approximately $277.23 million, compared to $191.96 million in the same period in 2023. This significant growth was driven by a 39.4% year-over-year increase in sales volume, attributed to the expansion of the Company’s global supply network and higher marine fuel demand due to geopolitical factors.
• Gross Profit: Gross profit for the period was approximately $2.72 million, a decrease of 32.2% compared to $4.01 million for 1H 2023. This decline was primarily driven by the reduction in premium sold to customers and led to lower gross profit per ton, which was partially offset by an increase in volume sold.
• Operating Expenses: Operating expenses rose by 64.0% to approximately $4.12 million, up from $2.51 million in 1H 2023. This increase was attributed to higher selling and distribution expenses related to our sales growth, strategic expansion in the Company’s supply network to new geographic areas, and the development of our biofuel operations.
• Net Income: The company reported a net loss of approximately $1.62 million, compared to a net income of $1.15 million in 1H 2023. The loss was driven by lower gross margin and higher operating costs.
• Cash Flow: Net cash provided by operating activities was approximately $2.30 million, a significant improvement from a cash outflow of $7.24 million in 1H 2023, reflecting better management of working capital.
• Cash position: As of June 30, 2024, Banle’s consolidated cash balance increased by approximately $2.29 million, or 30.9%, to $9.69 million, compared to $7.40 million as of December 31, 2023. This increase was primarily driven by improved working capital management. The Company also reported a significant increase in accounts receivable and accounts payable balances, reflecting the growth in its sales activities.

Operational Highlights:

• Global Network Expansion: As of June 30, 2024, Banle expanded its global service network from 36 ports at our IPO in March 2023 to over 60 ports across Asia, Europe and Africa. This strategic expansion has enabled the Company to secure new bunkering business opportunities, particularly in European markets where environmental regulations are increasingly stringent. The opening of the Company’s new office in Ireland in late 2023 has bolstered our market coverage and enhanced local sourcing capabilities. Notably, the Company completed inaugural bunkering services through a local physical supplier in Mauritius in May 2024, further strengthening our market presence.
• Biofuel Initiatives: Banle continued its commitment to sustainability by expanding its B24 biofuel operations, obtaining ISCC EU and ISCC Plus certifications in 2023. The Company successfully commenced biofuel bunkering services through local physical suppliers in Hong Kong, China, and Malaysia, positioning itself as a pioneer in sustainable fuel solutions. The B24 biofuel blend, which includes 24% UCOME (used cooking oil methyl ester), offers a 20% reduction in greenhouse gas emissions compared to conventional marine fuels, aligning with global decarbonization efforts.
• Response to Macroeconomic Environment: The global economy has shown signs of moderate growth in 2024, with emerging markets, particularly in Asia, driving this recovery. However, the shipping industry continues to face challenges such as fluctuating freight rates, port congestion, and disruptions in major trade routes due to the ongoing Red Sea Crisis. Banle has proactively adapted to these conditions, coordinating increased fuel supplies in Asian ports to meet heightened demand, ensuring that our customers’ needs are met despite logistical challenges​​.

Management Commentary:

“We are pleased with the robust growth in our revenue and sales volume during the first half of 2024, despite the challenging market conditions. Our strategic initiatives, including the expansion of our service network and our focus on sustainable fuel solutions, have positioned us well to navigate these challenges and capitalize on emerging opportunities,” said Teck Lim Chia, Chairman & CEO of Banle Group. “While the current market environment has pressured our margins, we remain confident in our long-term strategy and our ability to deliver value to our shareholders.”

Outlook:

Looking ahead, Banle remains focused on expanding its market presence, particularly in the biofuel sector, and continuing to enhance its global supply network. The Company is committed to driving operational efficiency and delivering sustainable growth in the face of ongoing macroeconomic challenges.

Webcast Details

CBL International Limited BANL cordially invites you to participate in a webcast to discuss its financial results for the six months ended June 30, 2024.

About the Banle Group

CBL International Limited BANL is the listing vehicle of Banle Group, a reputable marine fuel logistic company based in the Asia Pacific region that was established in 2015. We are committed to providing customers with one-stop solution for vessel refueling, which is referred to as bunkering facilitator in the bunkering industry. We facilitate vessel refueling mainly through local physical suppliers in over 60 major ports covering Belgium, China, Hong Kong, India, Japan, Korea, Malaysia, Mauritius, Panama, the Philippines, Singapore, Taiwan, Thailand, Turkey and Vietnam, as of August 28, 2024. The Group actively promotes the use of sustainable fuels and is awarded with the ISCC EU and ISCC Plus certifications.

For more information about our company, please visit our website at: https://www.banle-intl.com.

Forward-Looking Statements

Certain statements in this announcement are not historical facts but are forward-looking statements. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “could,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “plan,” “should,” “would,” “plan,” “future,” “outlook,” “potential,” “project” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements include, but are not limited to, statements regarding estimates and forecasts of other performance metrics and projections of market opportunity. They involve known and unknown risks and uncertainties and are based on various assumptions, whether or not identified in this press release and on current expectations of BANL’s management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of BANL. Some important factors that could cause actual results to differ materially from those in any forward-looking statements could include changes in domestic and foreign business, markets, financial, political and legal conditions, geopolitical disruptions and other events that result in material changes in fuel prices. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s registration statement and other filings with the SEC.

For more information, please contact:

CBL International Limited

Strategic Financial Relations Limited