Jacquet Metal Service : Third Quarter 2014

Regulatory News :

JACQUET METAL SERVICE (Paris:JCQ) :

On November 6, 2014, the Board of Directors, chaired by Eric Jacquet, reviewed the unaudited consolidated financial statements for the period ended September 30, 2014.

Sales and earnings

Third quarter sales amounted to €279.2 million, up 10.4% over third quarter 2013 (comprising volume effect +8.7% including scope effect +3.2% and price effect +1.7%), and Q3 EBITDA came in at €16.4 million or 5.9% of sales.

The Group posted first nine months 2014 sales of €856.8 million, up 7.9% from first nine months 2013 sales (comprising volume effect +12.3% including scope effect +3.5%, and price effect -4.4%). Gross margin as a percentage of sales rose by 2 percentage points to 24.8%, amounting to €212.2 million.

As such, EBITDA doubled vs. 2013 to €46.4 million (broken down between €13.8 million in first quarter, €16.2 million in second quarter and €16.4 million in third quarter) accounting for 5.4% of sales.

Operating income came to €34.6 million and net income (Group share) was €18.1 million.

Financial position

First nine months 2014 Group cash flow amounted to €41.4 million compared to 2013 full year cash flow of €25 million.

As a result of the growth in sales, inventories increased by €51 million since January 1, 2014. Consequently, on September 30, 2014 operating working capital amounted to 25.2% of sales and net debt stood at €131.1 million compared to shareholders' equity of €257.7 million, resulting in a net debt to equity ratio of 50.9%.

Results by brand

(1) Q3 and first nine months 2014 EBITDA of non-brand business (including Jacquet Metal Service SA) amounted to €1.1 million and €4.2 million respectively

All brands saw growth in sales and posted positive EBITDA in third quarter 2014/

Acquisition of ROLARK (Canada)

On October 16, 2014, JACQUET (stainless-steel quarto plates) acquired ROLARK group.

ROLARK is a 30-year-old Canadian group distributing stainless steels and consists of three companies located in Toronto, Edmonton and Montreal. With 65 employees, Rolark posted sales of CAD 32 million (€22 million).

Backed by warehouses facilities, ROLARK's three companies complement JACQUET's North American presence, which has existing operations in Philadelphia, Chicago, Houston, Charlotte and Los Angeles.

Including ROLARK, JACQUET now has 600 employees and 29 distribution centers in 20 countries. Following this acquisition, JACQUET pro forma sales (12 months) are estimated at €245m of which 33% in North America.

September 30, 2014 interim report available: www.jacquetmetalservice.com
2014 annual results: March 5, 2015