PFB Corporation Announces Record Results for the Third Quarter Ended September 30, 2020, Declares Increased Quarterly Dividend and One-Time Special Dividend

STOCK SYMBOL:  PFB

CALGARY, AB, Oct. 29, 2020 /CNW/ - (TSX: PFB) PFB Corporation ("PFB" or the "Corporation") reports its financial results for the third quarter ended September 30, 2020. 

Consolidated sales were $41,986,000 in the third quarter of 2020, compared to sales of $36,874,000 in the third quarter of 2019, an increase of $5,112,000 or 13.9%. Gross margin during the period improved to 36.7% from 27.7% in the comparative 2019 period.

For the three month period ended September 30, 2020, PFB Corporation reports consolidated net income of $7,331,000 and basic earnings of $1.09 per share, as compared to a consolidated net income of $3,442,000 and basic earnings of $0.51 per share, in the comparative three month period of 2019.

Consolidated sales in the nine month period ended September 30, 2020 were $97,737,000 as compared to sales of $96,408,000 in the comparative nine month period of 2019, an increase of $1,329,000 for the nine months. For the nine month period, gross margin was 31.4%, compared to 25.3% in the comparative 2019 period. 

For the nine month period ended September 30, 2020, consolidated net income was $11,427,000 and basic earnings of $1.70 per share, as compared to net income of $5,331,000 and basic earnings of $0.79 per share reported in the comparative nine month period of 2019.

Adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA)¹ for the third quarter of 2020 was $11,065,000 as compared to adjusted EBITDA of $6,080,000 in the third quarter of 2019, an increase of $4,985,000. For the nine month period ended September 30, 2020, adjusted EBITDA was $19,252,000, as compared to $11,675,000 in the nine month period 2019. 

The Corporation reported record sales and adjusted EBITDA in the third quarter of 2020. Governments and health authority actions intended to ease restrictions associated with the ongoing pandemic, resulted in increased business activity in the construction sector. The third quarter sales growth, fully offset year-to-date declines previously reported. Adjusted EBITDA for the third quarter and nine month reporting period was positively impacted by increased volumes, lower raw material input costs, and improved operating efficiencies.

Dividend Payment

The Board of Directors has approved an increase of $0.01 per common share to the regular quarterly dividend. In addition, the Board of Directors has approved a one-time special dividend of $1.00 per common share, accordingly; a regular quarterly dividend of $0.10 per common share, plus a one-time special dividend of $1.00 per common share, for a combined payment of $1.10 will be paid on November 30, 2020 to shareholders of record on November 16, 2020.

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, 2020, under section 18 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, 2020 and 2019 will be posted on SEDAR (www.sedar.com) on or after October 29, 2020.

SOURCE PFB Corporation