Landing gear manufacturer Héroux-Devtek, has reported strong financial results for the first quarter ended June 30, 2019.
Consolidated sales grew 67.2% to CA$143.4 million, up from CA$85.8 million in the same period last year. CA$44.6 million of this increase was driven by the CESA and Beaver acquisitions while the growth of Héroux-Devtek legacy sales contributed 15.2% or CA$13.1 million. Commercial sales grew 47.4% to CA$67.4 million, up from CA$45.8 million in the same period last year. The strong increase was driven by the CESA and Beaver acquisitions and growing legacy sales from the ramp-up of the Boeing 777/777x programs.
Defence sales grew 89.9% to CA$76.0 million, up from CA$40.0 million in the same period last year. This strong increase was driven by the CESA and Beaver acquisitions, growing Héroux-Devtek legacy sales mainly from the ramp-up of the F-35 program and higher aftermarket sales. Gross profit increased to CA$24.2 million, or 16.9% of sales, up from CA$13.1 million, or 15.2% of sales last year. The increase is attributable to the impact of the Beaver and CESA acquisitions and positive foreign exchange rate fluctuations, partially offset by higher manufacturing costs at our Longueuil facility.
Operating income increased to CA$10.4 million, or 7.2% of sales, up from CA$4.9 million, or 5.7% of sales last year. This quarter’s operating income included CA$0.6 million of non-recurring items, up from CA$0.4 million of non-recurring items in the same period last year. These non-recurring items are mainly acquisition-related costs. Adjusted EBITDA, which excludes these non-recurring items, stood at CA$21.5 million, or 15.0% of sales, compared with CA$12.2 million, or 14.3% of sales, one year ago. Net income for the first quarter of fiscal 2020 stood at CA$6.4 million up from CA$3.6 million in the corresponding period of last fiscal year. Excluding non-recurring items net of taxes, adjusted net income reached CA$7.0 million up from CA$3.8 million last year.