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ADF Group reports a Q1 loss, revenue drop

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Construction firm ADF Group (TSE: DRX) says its swung to a loss in the first quarter as its revenue dipped slightly. 

ADF reported a $0.3 million loss, or $0.01 per share, in the first three months of fiscal 2014, versus a profit of $0.1 million, or flat on a per-share basis, in the same prior-year quarter. 

Revenue fell 1.6 per cent to $12.3 million from $12.5 million last year. 

Gross margins declined to 11.3 per cent from 14.7 per cent due to new contracts with lower margins than last year's World Trade Centre projects. 

As of the end of April, the Terrebone, Quebec-based company had $31.4 million in working capital, which it says allows the company to "carry out its development projects" and maintain its dividend program. 

ADF says it has made "significant progress" in its Great Falls, Montana project, with the layout and infrastructure construction in progress for a fabrication plant.

"We still aim to bring our new facility on-stream by early 2014," said Jean Paschini, chairman and chief executive officer. 

During the quarter, ADF won a $46.6 million contract to build the steel structure for an amphitheatre in Quebec City. The contract will contribute to the financial results in the second half of the current fiscal year.

ADF order backlog reached $72.0 million as of the end of April, compared with $34.0 million on January 31.

Shares were unchanged at $1.45 as of 12:05 pm ET.

Quick facts: ADF Group

Price: 1.2 CAD

TSX:DRX
Market: TSX
Market Cap: $38.84 m
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