News

17 August 2009

 

5N Plus doubles record levels sales and earnings annually

For its fiscal fourth-quarter 2009 (to end May), high-purity metals and alloy producer 5N Plus Inc of Montreal, Canada has reported revenue (in Canadian dollars) of $18.1m (almost double $9.4m a year ago). This boosted fiscal 2009 to a record $69.4m, up 124% on fiscal 2008’s $31m (which itself was up on 2007’s $21.9m).

5N Plus draws its name from the purity of its products (99.999%, or five nines, and above), which include metals such as tellurium, cadmium, selenium, zinc and antimony. It also produces related II-VI and III-V compounds such as cadmium telluride (CdTe) and cadmium sulphide (CdS) as precursors for the growth of crystals for electronic applications, including infra-red detectors and lenses for night vision systems, gamma ray detectors for nuclear imaging in medicine, thermoelectric modules for cooling, and thin-film photovoltaic cells for solar panels.

“The results of our fourth quarter are in line with those of the previous two quarters and complete a record-breaking 2009 fiscal year which was transformational for 5N Plus in many respects,” says president & CEO Jacques L’Ecuyer.

“Fiscal year 2009 was also the year in which we truly became an international company, with operations and employees in two different countries. We completed our international expansion and successfully commissioned our new German facility in Eisenhuttenstadt [the subsidiary 5N PV GmbH, which began shipments of solar-grade products in fiscal first-quarter 2009]. This $18m investment, our largest project ever, was completed on time and within budget, enabling us to better serve our European customers and develop a platform for future growth,” he adds. “Interactions and close collaboration between our two facilities has been a determining factor in our ability to improve operational performance, sales and margins and meet the growing demands of our customers.”

“From a financial standpoint, fiscal 2009 was a record breaking year, with sales, EBITDA and earnings all more than doubling when compared to the previous fiscal year, in spite of the financial turmoil and the difficult economic environment,” says L'Ecuyer. Net earnings were $5.7m (up on $2.7m a year ago), taking fiscal 2009 to a record $20.9m (almost triple fiscal 2008’s $7.2m). Earnings before interest, taxes, depreciation and amortization (EBITDA) was $8.6m (up 119% on $3.9m a year ago), taking fiscal 2009 to a record $31.4m (up 178% on fiscal 2008’s $11.3m).

“This has allowed us to further strengthen our balance sheet and cash position,” L’Ecuyer says. Cash flow from operating activities was $5m for the quarter and $16.2m for the fiscal year, compared with cash consumption of $3.5m and $2.2m the prior year. During fiscal 2009, cash and cash equivalents rose by from $59.6m to $65.1m. This provides 5N Plus with the flexibility needed to implement its growth plan, which calls for investments aimed at accretive acquisitions and diversification of its product range.

“Although 2009 has been more difficult than initially anticipated for the solar industry, we have continued to experience an increasing demand for our solar-grade products for most of the year,” says L’Ecuyer. “The recent extension of our supply agreements with our key customer [CdTe thin-film photovoltaic manufacturer First Solar Inc of Phoenix, AZ, USA, which has a second plant in Frankfurt-an-der-Oder, Germany] and their corresponding commitments is perhaps the best example of this,” he adds. Order backlog (expected to translate into sales over the following 12 month) is $52.2m (up 73% on fiscal 2008’s $30.2m).

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