Good morning, ladies and gentlemen, and welcome to the ADF Group results for the fiscal year ended January 31st, 2021 conference call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Thursday, April 8, 2021. I would now like to turn the conference over to Jean-François Boursier, Chief Financial Officer. Please go ahead. Thank you. Good morning, ladies and gentlemen. Welcome to ADF's conference call covering the 12-month period ended January 31st, 2021. Before I update you on ADF's annual results and changes in financial position, which were disclosed earlier this morning by press release, and on our operations, a quick update about the COVID-19 impact on our operation and financial results. For the fiscal year ended January 31st, 2021, and as of today, the COVID-19 pandemic had limited overall impact on our operations. We have taken all the required and recommended actions and have followed local guidelines and ordinances. The security and well-being of our employees and business partners remains our first priority. On the one end, these measures have created some operating inefficiencies and consequently have reduced our profitability. On the other end, we have been able to offset most of these negative impacts through Canadian and U.S. governmental COVID-19 relief programs. I will get back to this later on this call. Lastly, please note that some of the issues discussed today may include forward-looking statements. These are documented in ADF Group's management report for the 2021 fiscal year, which will be filed with SEDAR later this month. Revenues for the fiscal year ended January 31st, 2021, reached CAD 172.6 million, CAD 7.1 million lower than last fiscal year. The decrease in revenues is mostly explained by the timing of recently awarded contracts, which have not hit our fabrication lines as at fiscal year-end. Also, as a reminder, our fiscal 2020 revenues were impacted by a one-time CAD 7.7 million write-off resulting from an out-of-court settlement booked in the third quarter ended October 31st, 2019. Gross margin in dollar value increased by CAD 9.7 million during the 2021 fiscal year compared with fiscal 2020. As a percentage of revenues, the gross margin went from 9.2% in fiscal 2020 to 15.2% during the fiscal year ended January 31st, 2021. The increase as a percentage of revenues being driven by the improvement in margins on projects included in the order backlog. The fiscal 2021 gross margin was also favorably impacted by the recognition of COVID-19 pandemic-related grants and subsidies during the fourth quarter ended January 31st, 2021. The corporation booked CAD 1.9 million from the Canada Emergency Wage Subsidy Program. The corporation also received $4 million in loans during the year ended January 31st, 2021, from the U.S. Paycheck Protection Program. These loans, subject to certain terms and conditions, could be forgiven in all or in part. In the fourth quarter ended January 31st, 2021, the corporation estimated that it met these terms and therefore recognized the forgiveness of a portion of the total debt for $2.8 million, thus improving the gross margin by CAD 3.6 million. As mentioned before, these subsidies booked in the fourth quarter ended January 31st, 2021, helped offset the cumulative additional costs and operational inefficiencies triggered by the COVID-19 measures required at our two fabrication facilities and numerous construction sites. EBITDA stood at CAD 16.3 million or 9.5% of revenues compared with CAD 5.2 million or 2.9% of revenues a year ago. The COVID-related subsidies, as already mentioned, mostly impacted gross margin but also had a lesser impact on selling and administrative expenses. The total favorable impact of these subsidies on EBITDA total CAD 6.3 million. Again, this amount does not include the direct costs incurred by ADF, nor does it include the impact of efficiency losses related to these measures. Selling and administrative expenses amounted to CAD 14.8 million or 8.6% of revenues, CAD 1.2 million lower than last year, most of this variance coming from lower legal fees associated with last fiscal year aforementioned out-of-court settlement. Year to date, we posted net income of CAD 6.9 million or CAD 0.21 basic and diluted per share compared with a net loss of CAD 2.1 million a year ago or negative CAD 0.07 basic and diluted per share. Cash flows from operating activities generated CAD 28.8 million, and we only invested CAD 1.8 million in CapEx, taking a careful approach to liquidities in light of the uncertainty surrounding the pandemic. These inflows translated into improved working capital. As at January 31st, 2021, working capital stood at CAD 38.5 million, CAD 9.2 million higher than a year before. Net liquidities also improved significantly. A year ago, as at January 31st, 2020, we had a negative net cash position of CAD 9.1 million, including CAD 13.1 million drawn from our credit facilities. A year later, as at January 31st, 2021, our net cash position stood at CAD 17.8 million, CAD 26.9 million higher than last year, without any amount drawn from our credit facilities. Yesterday, our board of directors approved the payment of a semiannual dividend of CAD 0.01 per share, which will be paid on May 17, 2021, to shareholders of record as at April 30th, 2021. Our order backlog stood at CAD 436.2 million as at January 31st, 2021, CAD 107.5 million higher than at the same date a year ago. Quickly looking at the fourth quarter results, revenue stood at CAD 37.1 million compared with CAD 46.3 million for the corresponding quarter a year ago. Fourth quarter gross margin as a percentage of sales stood at 17.4% compared with 8.6% during the same quarter last year. As confirmed before, the timing of the fabrication schedule triggered the revenue shortfall, whereas the COVID-19-related subsidies booked in the quarter ended January 31st, 2021 favorably impacted gross margin. Finally, the corporation recorded net income of CAD 2.1 million during the last quarter of 2021 fiscal year, compared with a net loss of CAD 0.1 million for the same period in fiscal 2020. Through the years, ADF had its share of ups and downs and market fluctuations. We can clearly say that fiscal 2021 also had its share of challenges. The COVID-19 pandemic required unprecedented governmental measures worldwide. For us, it meant keeping our operations going with, first and foremost, the well-being of our employees in mind. As the rest of the world hopes, we think that the worst is behind us and are looking forward to the coming quarters. With our increased backlog and improved liquidities, we start fiscal 2022 on strong footings. The backlog pipeline is still active, and we are confident we can not only maintain our backlog level but even increase it. We are also optimistic when looking at upcoming infrastructure programs on both sides of the border. These public investments should also, as they normally do, drive private investment and further increase contract opportunities. The additional volume should also improve overall project pricing, which is, for the time being, still very low. As such, in light of the contracts in our backlog, we expect some pressure on our next quarter's margin as we initiate fabrication of these recently signed projects. Nevertheless, we will continue our efforts to further increase our backlog and further improve our internal efficiencies. We will also maintain our COVID-19-related measures, making sure to provide all our employees with a safe working environment. Most of our administrative employees are still working from home, and we have taken comprehensive measures to allow for safe working conditions for all ADF employees who need to be at our facilities or construction sites. Thank you for your time and interest in ADF Group. Ladies and gentlemen, I will now answer your questions. There are no questions at this time. Mr. Boursier, please proceed. Before we conclude today's conference call, I would like to remind you that ADF will hold its shareholders' meeting on June ninth at 11:00 A.M. Again, this year, in light of the circumstances, ADF Group will hold its annual meeting of shareholders via webcasting. Financial results for the first quarter ending April 30th, 2021, will also be disclosed during our shareholders' meeting. Webcasting connection instruction will be made available in the coming weeks. Thank you for your interest toward ADF, and we wish you all a nice and safe day. Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines.
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