ABC Technologies Holdings Inc., a leading producer and supplier of custom, highly engineered technological plastics and light weighting innovations to the North American light vehicle industry, reported today that it has declared a quarterly cash dividend of C$0.015833 per share for the three months that ended on March 31, 2021. In addition, the company is releasing its revised fiscal 2021 guidance. Unless otherwise stated, all figures are in United States Dollars (“$”).
Third Quarter fiscal 2021 highlights
- On February 22, 2021, the initial public offering (the “IPO”) on the Toronto Stock Exchange was completed successfully.
- Concurrent with the IPO, the company successfully refinanced existing credit facilities to an all-revolver arrangement with more flexible M&A terms, covenants, and pricing, as well as maturity date of February 2025.
- Revenue of $217.9 million in Q3 Fiscal 2021, down from $239.3 million the previous year, due to semiconductor shortages, winter storm shutdowns, and other supply chain disruptions impacting OEM customers and suppliers throughout the time.
- Despite these short-term headwinds, fundamental earnings power and high underlying market light vehicle demand remain.
- Supply chain disruptions tied to a shortage of semiconductor chips and winter storm shutdowns inhibiting our customers’ production, as well as raw material demand/supply disruptions, resulted in Q3 Fiscal 2021 Adjusted EBITDA 1,2 of $25.5 million, compared to $29.8 million the prior year.
- Due to the timing of the IPO, a partial quarter dividend of C$0.015833 per share was announced.
“Q3 Fiscal 2021 was groundbreaking for us as we launched our initial public offering on the Toronto Stock Exchange on February 22, 2021,” said Todd Sheppelman, President and Chief Executive Officer of ABC Technologies. As we embark on this journey and report our first financial results as a public corporation, we are excited to connect with our new public shareholders. Although the quarter was challenging due to semiconductor-related production shutdowns for our OEM customers as well as other supply chain shortages, we are focused on growing our business for the long-term and see the current industry supply chain problems as temporary.
Third quarter Fiscal 2021 results of operations
ABC posted revenue of $217.9 million in Q3 Fiscal 2021, compared to $239.3 million in Q3 Fiscal 2020. Lower customer production volume caused by supply chain shortages, mostly semiconductors, and weather-related disturbances resulted in a drop in revenue. Volume recovery following a 2019 strike at a major OEM customer contributed to revenue in the prior year period.
“As we work to position our Company for long-term success, underlying demand for vehicles, especially light trucks, remains exceptionally strong,” Sheppelman continued. We expect a strong uptick in production activity as industry-wide supply constraints ease, particularly since days of on-hand vehicle inventory are at their lowest levels since 2007-09.”
Dividends are paid out to shareholders.
The Board of Directors today announced a quarterly cash dividend of C$0.015833 per share for the third fiscal quarter of 2021, to be paid on or about June 30, 2021 to shareholders of record on May 25, 2021. Owing to the timing of ABC’s IPO, the Q3 Fiscal 2021 dividend is a partial quarter dividend.