5N Plus Inc. Reports Fourth Quarter Results and Record Revenues and Earnings for Fiscal Year 2011

Press Release Source: 5N PLUS INC. On Wednesday August 24, 2011, 7:00 pm EDT

MONTREAL, Aug. 24, 2011 /CNW Telbec/ - 5N Plus Inc. (Toronto:VNP.TO), the leading producer of specialty metal and chemical products, today reported financial results for its fourth quarter and fiscal year ended May 31, 2011 in which revenues, earnings, EBITDA, funds from operations and backlog all reached record levels.

On April 11, 2011, 5N Plus announced that it had completed the acquisition of MCP Group SA. Results for the quarter and year ended May 31, 2011 include the operating results of MCP from the date of acquisition. 5N Plus now operates and reports operating performance under two business segments, namely Electronic Materials and Eco-Friendly Materials.

Revenues for the fourth quarter ended May 31, 2011 reached $119.8 million, an increase of 507% over revenues of $19.7 million for the fourth quarter of the last fiscal year. Revenues for the fiscal year ended May 31, 2011 were $178.8 million up by 153% over revenues of $70.8 million in the last fiscal year. The backlog of orders expected to translate into sales over the next twelve months was $253.8 million as at May 31, 2011 compared to $52.7 million one year earlier.

Net earnings from continuing operations for the fourth quarter were $10.0 million or $0.17 per share, representing a 130% increase compared to net earnings from operations of $4.4 million or $0.09 per share for the fourth quarter of the last fiscal year. For the fiscal year ended May 31, 2011, net earnings from continuing operations were $21.6 million or $0.44 per share, which is 43% higher than in the last fiscal year where net earnings from continuing operations were $15.1 million or $0.33 per share.

EBITDA for the fourth quarter increased by 209% to $19.2 million up from $6.2 million for the fourth quarter of the previous fiscal year. EBITDA reached $36.8 million for the fiscal year ended May 31, 2011, an increase of 60% compared to EBITDA of $22.9 million in the last fiscal year.

Funds from operations, which is defined as the amount of cash generated from operating activities before changes in non-cash working capital, increased to $13.1 million in the fourth quarter and $29.6 million in the fiscal year ended May 31, 2011. This compares to $5.7 million and $20.4 million, respectively, for the corresponding periods of the last fiscal year.

Shareholders' equity increased during the quarter to $348.9 million as at May 31, 2011, up from $125.7 million one year earlier, following the acquisition of MCP and the issuance on April 11, 2011 of 13.6 million shares for gross proceeds of $125.0 million.

The Board of Directors of 5N Plus has agreed to change the financial year-end of 5N Plus from May 31 to December 31. This will align the financial year-ends of both 5N Plus and MCP and result in a simplification of internal processes with all subsidiaries and business units using the same reporting periods. The first quarter ending September 30, 2011 will include four months of 5N Plus' results and the annual period ending December 31, 2011 will include seven months of results.

As previously announced, 5N Plus also secured on August 12, 2011 a new $250 million senior secured multi‐currency revolving credit facility with a syndicate of seven banks led by National Bank of Canada and HSBC Bank. This facility replaces the company's existing $50 million two‐year senior secured revolving facility with National Bank of Canada and eventually most of MCP's credit facilities.

Jacques L'Ecuyer, President and Chief Executive Officer, said "We are pleased to report our fourth quarter and year-end results for what has been a truly outstanding period for 5N Plus. With the acquisition of MCP, we have literally transformed our company into a specialty metals and chemicals powerhouse with a strong focus on clean technology markets. Our fourth quarter and year-end results, which are at record levels both in terms of revenues and profitability, are very much in line with our expectations and quite indicative of what we believe the future holds for our company. We now have a much broader product portfolio and a well diversified customer base supported by operations worldwide and a strong commercial network, providing an expanded organic growth platform that we can leverage to further develop our company."

Mr. L'Ecuyer continued, "With revenues increasing by more than 500% in the quarter and earnings more than doubling following the acquisition of MCP, it is easy to lose sight of some of the other accomplishments that were made during the year. These include the renewal and extension of our contract with First Solar until the end of 2015, the set-up of an integrated germanium production capacity following construction and commissioning of a new facility in Trail, British Columbia, our investments in Sylarus, and the development of a solar module recycling facility in Wisconsin, all of which have enabled us to further strengthen our business. In addition, we also received several awards during the year related to the cleantech technology sector, recognizing our efforts in both recycling and sustainable development."

Mr. L'Ecuyer concluded, "As we begin our new fiscal year, we would like to thank our employees and investors for their support and confidence, and extend a special welcome once again to those employees of MCP. With our backlog of more than $250 million and a suite of products aimed at a number of exciting and growing applications, we are more confident than ever that we can continue to execute on our growth plan and deliver another solid year of operational and financial performance."

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