TERREBONNE - ADF GROUP INC. ('ADF' or the 'Company') (TSX: DRX) ended fiscal 2024 with revenues of $331.0 million compared to $250.9 million last year.

Gross margin, as a percentage of revenue (1)increased from 14.2% in the year ended January 31, 2023 to 22.0% in the year ended January 31, 2024. This percentage increase in revenues is explained by the increase in manufacturing volume, generating better absorption of fixed costs, and by the improvement in internal efficiency generated by investments made in recent years to increase the automation of manufacturing processes at ADF's plant located in Terrebonne, Quebec.

Adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA) (2) for the year ended January 31, 2024, at $55.9 million, is $29.8 million, or 114%, higher than the same date a year earlier.

For the year ended January 31, 2024, ADF posted net income of $37.6 million ($1.15 per basic and diluted share) compared to net income of $14.9 million ($0.46 per basic and diluted share) a year earlier.

As at January 31, 2024, the Company had working capital (1) $110.1 million, an increase of 68% compared to the same date a year earlier. In addition, the Company generated cash flow from operating activities totalling $77.9 million during the year ended January 31, 2024.

The order book (1) was $510.9 million as at January 31, 2024, compared to $376.5 million as at January 31, 2023. The majority of the projects in hand will be completed gradually by the middle of the fiscal year, which ends January 31, 2026.

Prospects

'These results reflect the efforts and strategies put forward by ADF over the past few years, ranging from the construction of our state-of-the-art plant in Great Falls, Montana nearly 10 years ago, to the robotization and manufacturing process automation investment program at our Terrebonne plant, in Quebec,' said Jean Paschini, Chairman of the Board of Directors and Chief Executive Officer.

He concluded, 'During this period, ADF has invested more than $110 million to strengthen its position as one of North America's leading manufacturers of all types of steel structures and heavy steel components. Today, we are reaping the fruits of this work and the sustained efforts of all ADF employees.'

Dividend

On April 10, 2024, ADF Group's Board of Directors approved the payment of a semi-annual dividend of $0.01 per share, to be paid on May 15, 2024 to shareholders of record on April 26, 2024.

Investor Conference Call

An investor conference call will be held on Thursday, April 11, 2024 at 10 a.m. (Montreal time) to discuss the results for the year ended January 31, 2024.

To join the conference call without operator assistance, you can sign up with your phone number on https://emportal.ink/4bZ6lFj to receive an instant automatic callback.

You can also reach the call through an operator by dialing 1-888-390-0620 a few minutes before the call starts.

A replay of the replay of this call will be available from 1 p.m. on April 11, 2024 at 1 p.m. until April 18, 2024, by dialing 1-888-259-6562, followed by access code 855225 .

The conference call (audio) will also be available at the www.adfgroup.com. Members of the media are invited to join in listening mode.

ANNUAL GENERAL MEETING OF SHAREHOLDERS FOR THE YEAR ENDED JANUARY 31, 2024

ADF Group Inc.'s Annual Meeting of Shareholders will be held on:

Date: Tuesday, June 11, 2024

Hour: 11 a.m.

Place: Sheraton Laval Hotel

2440, Autoroute des Laurentides, Laval, Quebec, Canada

Results for the first quarter ended April 30, 2024 will also be released at the Annual Meeting.

About ADF Group Inc. | ADF Group Inc. is a North American leader in the design and engineering of connections, manufacturing, including the application of industrial coatings, the erection of complex metal structures, heavy steel assembled components, as well as fabricated and architectural metals, for the non-residential infrastructure sector. ADF Group Inc. is one of the few industry players capable of carrying out commercial, institutional, industrial and public megaprojects characterized by a very high level of technological complexity and accelerated schedules. The Company now operates two manufacturing plants and two paint shops; in Canada and the U.S., as well as a construction division in the U.S., which specializes in the erection of structural steel and related products.

Forward-Looking Statements | This press release contains forward-looking statements that reflect ADF's objectives and expectations. These statements are identified by verbs such as 'expects that' as well as by the use of future and conditional verb tenses. By their nature, these statements involve risks and uncertainties. As a result, actual facts may differ from ADF's expectations.

Non-GAAP and Other Financial Measures | Are measures derived primarily from the consolidated financial statements but are not standardized financial measures under the financial reporting framework used to prepare the Company's financial statements. As a result, readers should not confuse or substitute for measures of performance prepared in accordance with GAAP. In addition, the Company should not compare these non-GAAP measures to similarly named measures provided or used by other issuers. The definition of these measures and their reconciliation to comparable measures in the International Financial Reporting Standards issued by the International Accounting Standards Board ('IFRS Accounting Standards') is as follows: Gross margin as a percentage of revenue

The gross margin as a percentage of revenue indicator is used by the Company to assess the level of profitability for a given period based on the project mix for that same period. This indicator is subject to fluctuations in project prices and also in the Company's operational efficiency. The gross margin as a percentage of revenue indicator is derived from the division of gross margin by revenue.

Order book

Backlog is a measure used by the Company to assess the future level of revenues. The backlog includes firm orders obtained by the Company, either through a firm contract or a formal notice to proceed confirmed by the client. The backlog disclosed by the Company therefore includes the non-manufacturing portion of the contracts thus confirmed.

Working capital

The working capital indicator is used by the Company to assess whether current assets are sufficient to discharge current liabilities. It therefore represents the excess of current assets over current liabilities.

Contact:

Jean Paschini

Tel: (450) 965-1911

Web: www.adfgroup.com

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