Velan Inc. reports its third quarter 2020/21 financial results
Velan Inc. (TSX: VLN) (the “Company”), a world-leading manufacturer of industrial valves, announced today its financial results for its third quarter ended November 30, 2020.
Highlights: Backlog and profitability improving while sales slowed by pandemic-related factors and the shift towards a new manufacturing model in North America
- Order backlog of US$ 561.8 million, highest since November 30, 2012
- Solid book-to bill ratio of 2.34 for the quarter
- Maintaining strong protective measures to ensure employees health and safety during the novel coronavirus (“COVID-19”) pandemic
- Strong balance sheet highlighted by a net cash balance US$ 73.0 million at the end of the quarter
- Sales of US$71.6 million for the quarter, hindered by pandemic-related factors and inefficiencies experienced in reconfiguring the Canadian plants under the V20 program
- Gross profit of US$ 22.0 million (or 30.7%, almost five points higher than last year) and net earnings of US$ 9.5 million for the quarter (including a net gain on the sale of a Montreal plant)
- Operating profit before restructuring and transformation costs of US$2.2 million and adjusted
- EBITDA of US$ 5.6 million for the quarter, both improvements over last year despite lower sales
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