Velan Inc. Reports Strong Fiscal 2025 Third Quarter Results

Financial Performance - Solid order backlog of $298.7 million, up$15.0 million or 5.3% since the beginning of the year [8] - Adjusted net income from continuing operations of $8.5 million, versus an adjusted net loss of$7.0 million in the corresponding quarter [8] - Sales of $73.4 million, up$11.2 million or 18.1% compared to the same quarter last year [8] - Gross profit of $28.3 million or 38.6$8.2 million, or 13.1% of sales, last year [8] - Net loss from continuing operations of $47.8 million, versus a net loss of$9.5 million last year reflecting restructuring costs of $74.5 million before income taxes [8] - Adjusted EBITDA from continuing operations of$14.3 million, compared to negative $4.1 million last year [8] Strategic Transactions - Agreement with Global Risk Capital to divest asbestos-related liabilities, removing$143 million in liabilities from the balance sheet [2] - Memorandum of understanding with Framatome for the sale of French subsidiaries Segault and Velan France for $198.4 million [3] - The sale of French businesses met the criteria for assets held for sale and discontinued operations, adjusting the consolidated balance sheet [4] Operational Highlights - Bookings of$59.1 million, versus $60.1 million last year, representing a book-to-bill ratio of 0.81 [8] - Cash flows from operating activities was breakeven, versus$0.1 million last year [8] - Net cash of $32.1 million at the end of the quarter, versus$36.4 million at the beginning of the fiscal year [8] Industry and Market Position - The company is well-positioned to benefit from robust momentum in the clean energy sector, particularly in the global nuclear market [9] - Recent alliances with leading players for proprietary products at small modular reactors bode well for the long term [9] - The company expects nuclear activities to generate new orders in the near future [9] Financial Position and Outlook - As at November 30, 2024, orders amounting to $249.1 million, representing 83.4$298.7 million, are expected to be delivered in the next 12 months [29] - The company anticipates concluding fiscal 2025 with a growth year over year in sales from continuing operations [29] - The Board of Directors has declared a dividend of CA$0.03 per common share, reinstating the dividend payment given the improved financial performance [30]