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Velan Inc. Reports Its Year-End and Fourth Quarter 2016/17 Financial Results

MONTREAL, QUEBEC -- (Marketwired) -- 05/18/17 -- Velan Inc. (TSX:VLN) (the "Company"), a world-leading manufacturer of industrial valves, announced today its financial results for its fiscal year and fourth quarter ended February 28, 2017.

Highlights


--  Sales of US$102.8 million for the quarter 
--  Adjusted net earnings1of US$3.7 million for the quarter 
--  Order backlog of US$438.2 million at the end of the quarter 
--  Net new orders received ("Bookings") of US$125.9 million for the quarter
--  Net cash1of US$72.5 million at the end of the quarter 
--  Returned US$2.2 million to shareholders in the quarter and US$7.5
    million in the fiscal year by way of dividends and share repurchases 

(millions of U.S.                                                           
 dollars,                           Three-month                             
 excluding                        periods ended          Fiscal years ended 
 per share amounts)  February 28,  February 29,  February 28,  February 29, 
                             2017          2016          2017          2016 
                    --------------------------------------------------------
Sales                 $     102.8   $     108.2   $     331.8   $     426.9 
Gross profit                 28.9          28.1          88.5         104.3 
Gross profit %               28.1%         26.0%         26.7%         24.4%
Adjusted net                                                                
 earnings1                    3.7           4.2           7.7          17.3 
Adjusted net                                                                
 earnings1per share                                                         
 - basic and diluted         0.17          0.20          0.36          0.79 
Net earnings (loss)2          3.7          (7.8)          7.7           3.6 
Net earnings                                                                
 (loss)2per share -                                                         
 basic and diluted           0.17         (0.35)         0.36          0.17 

Fourth Quarter Fiscal 2017 (unless otherwise noted, all amounts are in U.S. dollars and all comparisons are to the fourth quarter of fiscal 2016):


--  Net earnings2amounted to $3.7 million or $0.17 per share compared to a
    net loss2of $7.8 million or $0.35 per share last year. Adjusted net
    earnings1, which excludes from net earnings2a goodwill impairment charge
    as well as the after-tax impact of the restructuring costs incurred in
    the prior year quarter, amounted to $3.7 million or $0.17 per share
    compared to $4.2 million or $0.20 per share last year. The $0.5 million
    decrease in adjusted net earnings1is primarily attributable to a lower
    sales volume which was partially offset by gross margin improvements and
    decreased administration costs. 
    
--  Bookings amounted to $125.9 million, an increase of $39.2 million or
    45.2% compared to the prior year. This increase in bookings is
    principally attributable to new project orders won by the Company's
    French operations to supply valves towards the construction of a nuclear
    power plant in the U.K., which were partially offset by decreased
    bookings in the Company's North American operations where the current
    highly competitive environment in its various markets continues to put
    downward pressure on pricing and lead times. 
    
--  Sales amounted to $102.8 million, a decrease of $5.4 million or 5.0%
    from the prior year. While sales were lower in the current quarter when
    compared to the comparative period in the prior year, they were stronger
    when compared to the previous three quarters of the current fiscal year.
    Sales for the quarter were improved in the Company's French operations,
    while its North American and Italian operations realized lower sales due
    to the effects of the lower bookings and backlog from the prior year. 
    
--  Gross profit percentage increased by 210 basis points from 26.0% to
    28.1%. Despite the lower sales volume, both the gross profit and the
    gross profit percentage increased due to a product mix with a greater
    proportion of higher margin product sales such as spare parts, material
    cost savings, as well as labour and overhead savings stemming from the
    restructuring initiatives implemented in the prior fiscal year 

Year Ended Fiscal 2017 (unless otherwise noted, all amounts are in U.S. dollars and all comparisons are to the prior fiscal year):


--  Net earnings2amounted to $7.7 million or $0.36 per share compared to
    $3.6 million or $0.17 per share last year. Adjusted net earnings1, which
    excludes from net earnings2a goodwill impairment charge as well as the
    after-tax impact of restructuring costs incurred in the prior year,
    amounted to $7.7 million or $0.36 per share compared to $17.3 million or
    $0.79 per share last year. The $9.6 million decrease in adjusted net
    earnings1is primarily attributable to a lower sales volume which was
    partially offset by gross margin improvements and decreased
    administration costs. 
    
--  Bookings amounted to $448.2 million, an increase of $118.7 million or
    36.0% compared to last year. Excluding the effect of an order
    cancellation of $23.6 million in the prior year, bookings would have
    increased by $95.1 million or 26.9%. This increase is due primarily to
    new large project orders booked by the Company's French, German and
    Italian operations, which was partially offset by a decrease in orders
    booked in the Company's North American operations. 
    
--  Sales amounted to $331.8 million, a decrease of $95.1 million or 22.3%.
    Despite an improved performance in the last quarter of the year, sales
    were negatively impacted, particularly in the Company's Italian and
    North American operations, by the decreased bookings received over the
    last fiscal year. Delays in shipments of certain large project orders
    caused by various customer-related, supply chain and internal
    operational issues, particularly in our North American operations, also
    had a negative impact on sales for the year. 
    
--  As a result of bookings outpacing sales in the year, the Company ended
    the year with a backlog of $438.2 million, an increase of $107.0 million
    or 32.3% since the beginning of the current fiscal year. This increase
    in backlog occurred despite the negative impact related to the weakening
    of the euro spot rate against the U.S. dollar over the course of the
    year. 
    
--  Gross profit percentage increased by 230 basis points from 24.4% to
    26.7%. Despite the lower sales volume, the increase in the gross profit
    percentage was mainly attributable to a product mix with a greater
    proportion of higher margin product sales, material cost savings, as
    well as labour and overhead savings stemming from the restructuring
    initiatives implemented in the prior fiscal year. 
    
--  Administration costs amounted to $75.9 million, a decrease of $2.1
    million or 2.7%. This decrease was achieved despite a $1.2 million
    increase in costs recognized in connection with the Company's ongoing
    asbestos litigation. The fluctuation in asbestos costs for the year is
    due more to the timing of settlement payments in these two periods
    rather than to changes in long-term trends. 
    
--  The Company ended the year with net cash1of $72.5 million, a decrease of
    $9.5 million or 11.6% since the beginning of the year. This decrease is
    primarily attributable to negative working capital movements and
    distributions to shareholders via dividends and share repurchases. 
    
--  Foreign currency fluctuations did not have a significant impact on the
    Company's net earnings2in the current fiscal year. Based on average
    exchange rates, the euro remained relatively constant against the U.S.
    dollar, while the Canadian dollar weakened by only 0.3% against the U.S.
    dollar when compared to the same period last year. 

"This was a year of challenges, particularly on the sales front. Our various efficiency initiatives that we commenced last year helped protect our margin and bottom line this year. In addition, we have conserved cash and maintained a strong balance sheet," said John Ball, CFO of Velan Inc. "While we are encouraged by the steady increase in our backlog, we note that it is concentrated in some of our overseas markets. Our focus for the coming year will be to maintain and broaden our order buildup as well as to ensure timely delivery of project orders."

Yves Leduc, President and CEO of Velan Inc., said, "Although the year's results were disappointing, we are encouraged by signs that the outlook may be improving as both bookings and backlog increased in the second half of the fiscal year. With these recent orders, we should see performance improve in the latter part of the next fiscal year. While market conditions slowly improve, we continue to implement several improvement initiatives under our strategic plan Velocity 2020 in order to position the Company, not just to ride the wave of a recovering market, but to outperform it. The goal is to transform our Company into an organization that is more agile and customer-centric, by delivering greater value to our customers through front-loaded application engineering and design solutions, fast lead times and disciplined market development."

Dividend

The Board declared an eligible quarterly dividend of CDN$0.10 per share, payable on June 30, 2017, to all shareholders of record as at June 15, 2017.

Conference call

Financial analysts, shareholders, and other interested individuals are invited to attend the fourth quarter conference call to be held on Thursday, May 18, 2017, at 4:30 p.m. (EDT). The toll free call-in number is 1-800-672-3665, access code 21852130. A recording of this conference call will be available for seven days at 1-416-626-4100 or 1-800-558-5253, access code 21852130.

About Velan

Founded in Montreal in 1950, Velan Inc. (www.velan.com) is one of the world's leading manufacturers of industrial valves, with sales of US$331.8 million in its last reported fiscal year. The Company employs over 1,800 people and has manufacturing plants in 9 countries. Velan Inc. is a public company with its shares listed on the Toronto Stock Exchange under the symbol VLN.

Safe harbour statement

This news release may include forward-looking statements, which generally contain words like "should", "believe", "anticipate", "plan", "may", "will", "expect", "intend", "continue" or "estimate" or the negatives of these terms or variations of them or similar expressions, all of which are subject to risks and uncertainties, which are disclosed in

the Company's filings with the appropriate securities commissions. While these statements are based on management's assumptions regarding historical trends, current conditions and expected future developments, as well as other factors that it believes are reasonable and appropriate in the circumstances, no forward-looking statement can be guaranteed and actual future results may differ materially from those expressed herein. The Company disclaims any intention or obligation to update or revise any forward-looking statements contained herein whether as a result of new information, future events or otherwise, except as required by the applicable securities laws. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

Non-IFRS measures

In this press release, the Company presented measures of performance and financial condition that are not defined under International Financial Reporting Standards ("non-IFRS measures") and are therefore unlikely to be comparable to similar measures presented by other companies. These measures are used by management in assessing the operating results and financial condition of the Company. In addition, they provide readers of the Company's consolidated financial statements with enhanced understanding of its results and financial condition, and increase transparency and clarity into the operating results of its core business.

The term "adjusted net earnings" is defined as net income or loss attributable to Subordinate and Multiple Voting Shares plus goodwill impairment loss, plus restructuring costs less the income tax effect of the restructuring costs. Refer to the "Reconciliations of Non-IFRS Measures" section in the Company's Management Discussion and Analysis included in its Annual Report for the fiscal year ended February 28, 2017 for a detailed calculation of this measure.

The term "net cash" is defined as cash and cash equivalents plus short-term investments less bank indebtedness, short-term bank loans, and current portion of long-term bank borrowings. Refer to the "Reconciliations of Non-IFRS Measures" section in the Company's Management Discussion and Analysis included in its Annual Report for the fiscal year ended February 28, 2017 for a detailed calculation of this measure.


1     Non-IFRS measures - see explanation above.                            
2     Net earnings or loss refer to net income or loss attributable to      
      Subordinate and Multiple Voting Shares.                               
                                                                        
                                                                        
                                                                        
Velan Inc.                                                              
Condensed Interim Consolidated Statements of Financial Position         
(Unaudited)                                                             
(in thousands of U.S. dollars)                                          
------------------------------------------------------------------------
------------------------------------------------------------------------
                                                                        
As At                                      February 28,    February 29, 
                                                   2017            2016 
                                                      $               $ 
Assets                                                                  
Current assets                                                          
Cash and cash equivalents                        84,019          89,368 
Short-term investments                              974           3,225 
Accounts receivable                             125,512         119,569 
Income taxes recoverable                          7,145           5,674 
Inventories                                     173,089         162,523 
Deposits and prepaid expenses                     3,391           3,586 
Derivative assets                                 1,202           1,598 
                                        --------------------------------
                                                395,332         385,543 
Non-current assets                                                      
Property, plant and equipment                    91,535          95,257 
Intangible assets and goodwill                   19,023          20,352 
Deferred income taxes                            12,951          13,537 
Other assets                                        456             938 
                                        --------------------------------
                                                                        
                                                123,965         130,084 
                                        --------------------------------
                                                                        
Total assets                                    519,297         515,627 
                                        --------------------------------
                                        --------------------------------
                                                                        
Liabilities                                                             
Current liabilities                                                     
Bank indebtedness                                 7,792           5,028 
Short-term bank loans                             1,650           1,319 
Accounts payable and accrued liabilities         60,641          62,943 
Income taxes payable                                946           5,746 
Dividend payable                                  1,631           1,606 
Customer deposits                                43,953          28,123 
Provisions                                       10,600           9,333 
Accrual for performance guarantees               26,943          30,563 
Derivative liabilities                              799           2,945 
Current portion of long-term debt                 7,115           7,978 
                                        --------------------------------
                                                162,070         155,584 
Non-current liabilities                                                 
Long-term debt                                   15,318          14,471 
Deferred income taxes                             2,784           3,408 
Other liabilities                                 7,214           9,045 
                                        --------------------------------
                                                                        
                                                 25,316          26,924 
                                        --------------------------------
Total liabilities                               187,386         182,508 
                                        --------------------------------
                                                                        
Equity                                                                  
                                                                        
Equity attributable to the Subordinate                                  
 and Multiple Voting shareholders                                       
Share capital                                    73,584          74,345 
Contributed surplus                               6,017           5,941 
Retained earnings                               281,343         280,380 
Accumulated other comprehensive income                                  
 (loss)                                         (35,550)        (33,089)
                                        --------------------------------
                                                325,394         327,577 
                                                                        
Non-controlling interest                          6,517           5,542 
                                        --------------------------------
Total equity                                    331,911         333,119 
                                        --------------------------------
                                                                        
                                                                        
Total liabilities and equity                    519,297         515,627 
                                        --------------------------------
                                        --------------------------------
                                                                        
                                                                        
                                                                        
Velan Inc.                                                                  
Condensed Interim Consolidated Statements of Income (Loss)                  
(Unaudited)                                                                 
(in thousands of U.S. dollars, excluding number of shares and per share     
amounts)                                                                    
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                        Three-month periods ended        Fiscal years ended 
                        February 28, February 29, February 28, February 29, 
                                2017         2016         2017         2016 
                                   $            $            $            $ 
                                                                            
Sales                        102,835      108,156      331,777      426,895 
                                                                            
Cost of sales                 73,944       80,085      243,249      322,612 
                        ----------------------------------------------------
                                                                            
Gross profit                  28,891       28,071       88,528      104,283 
                                                                            
Administration costs          18,950       20,325       75,868       77,974 
Goodwill impairment loss           -       11,510            -       11,510 
Restructuring costs                -          609            -        2,759 
Other expense (income)           579         (519)        (408)        (348)
                        ----------------------------------------------------
                                                                            
Operating profit (loss)        9,362       (3,854)      13,068       12,388 
                                                                            
Finance income                   328          583          992        1,296 
Finance costs                    623          357        1,066        1,097 
                        ----------------------------------------------------
                                                                            
Finance income (costs) -                                                    
 net                            (295)         226          (74)         199 
                        ----------------------------------------------------
Income (Loss) before                                                        
 income taxes                  9,067       (3,628)      12,994       12,587 
Provision for (Recovery                                                     
 of) income taxes              4,981        4,282        4,680        8,302 
                        ----------------------------------------------------
                                                                            
Net income (loss) for                                                       
 the period                    4,086       (7,910)       8,314        4,285 
                        ----------------------------------------------------
                                                                            
Net income (loss)                                                           
 attributable to:                                                           
Subordinate Voting                                                          
 Shares and Multiple                                                        
 Voting Shares                 3,707       (7,823)       7,737        3,641 
Non-controlling interest         379          (87)         577          644 
                        ----------------------------------------------------
                               4,086       (7,910)       8,314        4,285 
                        ----------------------------------------------------
                                                                            
Net income (loss) per                                                       
 Subordinate and                                                            
 Multiple Voting Share                                                      
Basic                           0.17        (0.35)        0.36         0.17 
Diluted                         0.17        (0.35)        0.36         0.17 
                        ----------------------------------------------------
                                                                            
Dividends declared per                                                      
 Subordinate and                                                            
 Multiple                       0.08         0.08         0.31         0.31 
Voting Share                (CA$0.10)    (CA$0.10)    (CA$0.40)    (CA$0.40)
                        ----------------------------------------------------
                                                                            
Total weighted average                                                      
 number of Subordinate                                                      
 and Multiple Voting                                                        
 Shares                                                                     
Basic                     21,698,670   21,758,224   21,722,089   21,861,230 
Diluted                   21,703,812   21,759,862   21,727,697   21,868,242 
                        ----------------------------------------------------
                                                                            
                                                                            
                                                                            
Velan Inc.                                                                  
Condensed Interim Consolidated Statements of Comprehensive Income (Loss)    
(Unaudited)                                                                 
(in thousands of U.S. dollars)                                              
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                        Three-month periods ended        Fiscal years ended 
                        February 28, February 29, February 28, February 29, 
                                2017         2016         2017         2016 
                                   $            $            $            $ 
                                                                            
Comprehensive income                                                        
 (loss)                                                                     
                                                                            
Net income (loss) for                                                       
 the period                    4,086       (7,910)       8,314        4,285 
                                                                            
Other comprehensive                                                         
 income (loss)                                                              
Foreign currency                                                            
 translation adjustment                                                     
 on foreign operations                                                      
 whose functional                                                           
 currency is other than                                                     
 the reporting currency                                                     
 (U.S. dollar)                   208        1,606       (2,014)      (5,992)
                        ----------------------------------------------------
                                                                            
Comprehensive income                                                        
 (loss)                        4,294       (6,304)       6,300       (1,707)
                        ----------------------------------------------------
                        ----------------------------------------------------
                                                                            
Comprehensive income                                                        
 (loss) attributable to:                                                    
Subordinate Voting                                                          
 Shares and Multiple                                                        
 Voting Shares                 3,723       (5,901)       5,276       (1,796)
Non-controlling interest         571         (403)       1,024           89 
                        ----------------------------------------------------
                                                                            
                               4,294       (6,304)       6,300       (1,707)
                        ----------------------------------------------------
                        ----------------------------------------------------
                                                                            
                                                                            
                                                                            
Velan Inc.                                                                  
Condensed Interim Consolidated Statements of Changes in Equity              
(Unaudited)                                                                 
(in thousands of U.S. dollars, excluding number of shares)                  
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                         Equity attributable to the Subordinate and Multiple
                                                         Voting shareholders
                         ---------------------------------------------------
                                                                Accumulated 
                                                                      other 
                           Number of       Share Contributed  comprehensive 
                              shares     capital     surplus  income (loss) 
                         ---------------------------------------------------
                                                                            
Balance - February 29,                                                      
 2016                     21,737,135      74,345       5,941        (33,089)
                                                                            
Net income (loss) for the                                                   
 period                            -           -           -              - 
Other comprehensive                                                         
 income (loss)                     -           -           -         (2,461)
                         ---------------------------------------------------
                                                                            
                          21,737,135      74,345       5,941        (35,550)
                                                                            
Effect of share-based                                                       
 compensation                      -           -          76              - 
Share repurchase             (69,900)       (761)          -              - 
Dividends                                                                   
 Multiple Voting Shares            -           -           -              - 
 Subordinate Voting                                                         
  Shares                           -           -           -              - 
 Non-controlling interest          -           -           -              - 
                         ---------------------------------------------------
                                                                            
Balance - February 28,                                                      
 2017                     21,667,235      73,584       6,017        (35,550)
                         ---------------------------------------------------
                         ---------------------------------------------------
                                                                            
                                                                            
Balance - February 28,                                                      
 2015                     21,939,168      76,475       6,064        (27,652)
                                                                            
Net income (loss) for the                                                   
 period                            -           -           -              - 
Other comprehensive                                                         
 income (loss)                     -           -           -         (5,437)
                         ---------------------------------------------------
                                                                            
                          21,939,168      76,475       6,064        (33,089)
                                                                            
Effect of share-based                                                       
 compensation                      -           -         104              - 
Shares issued under Share                                                   
 Option Plan                  14,267         227        (227)             - 
Share repurchase            (216,300)     (2,357)          -              - 
Acquisition of non-                                                         
 controlling interest              -           -           -              - 
Dividends                                                                   
 Multiple Voting Shares            -           -           -              - 
 Subordinate Voting                                                         
  Shares                           -           -           -              - 
 Non-controlling interest          -           -           -              - 
                         ---------------------------------------------------
                                                                            
Balance - February 29,                                                      
 2016                     21,737,135      74,345       5,941        (33,089)
                         ---------------------------------------------------
                         ---------------------------------------------------
                                                                            
                                                                            
                                                                            

Velan Inc.                                                               
Condensed Interim Consolidated Statements of Changes in Equity           
(Unaudited)                                                              
(in thousands of U.S. dollars, excluding number of shares)               
-------------------------------------------------------------------------
-------------------------------------------------------------------------
                                                                         
                          Equity attributable to                         
                             the Subordinate and                         
                                 Multiple Voting                         
                                    shareholders                         
                         ------------------------                        
                                                                         
                                                        Non-             
                            Retained             controlling       Total 
                            earnings       Total    interest      equity 
                         ------------------------------------------------
                                                                         
Balance - February 29,                                                   
 2016                        280,380     327,577       5,542     333,119 
                                                                         
Net income (loss) for the                                                
 period                        7,737       7,737         577       8,314 
Other comprehensive                                                      
 income (loss)                     -      (2,461)        447      (2,014)
                         ------------------------------------------------
                                                                         
                             288,117     332,853       6,566     339,419 
                                                                         
Effect of share-based                                                    
 compensation                      -          76           -          76 
Share repurchase                (165)       (926)          -        (926)
Dividends                                                                
 Multiple Voting Shares       (4,745)     (4,745)          -      (4,745)
 Subordinate Voting                                                      
  Shares                      (1,864)     (1,864)          -      (1,864)
 Non-controlling interest          -           -         (49)        (49)
                         ------------------------------------------------
                                                                         
Balance - February 28,                                                   
 2017                        281,343     325,394       6,517     331,911 
                         ------------------------------------------------
                         ------------------------------------------------
                                                                         
                                                                         
Balance - February 28,                                                   
 2015                        283,724     338,611       6,482     345,093 
                                                                         
Net income (loss) for the                                                
 period                        3,641       3,641         644       4,285 
Other comprehensive                                                      
 income (loss)                     -      (5,437)       (555)     (5,992)
                         ------------------------------------------------
                                                                         
                             287,365     336,815       6,571     343,386 
                                                                         
Effect of share-based                                                    
 compensation                      -         104           -         104 
Shares issued under Share                                                
 Option Plan                       -           -           -           - 
Share repurchase                (381)     (2,738)          -      (2,738)
Acquisition of non-                                                      
 controlling interest              -           -        (890)       (890)
Dividends                                                                
 Multiple Voting Shares       (4,801)     (4,801)          -      (4,801)
 Subordinate Voting                                                      
  Shares                      (1,803)     (1,803)          -      (1,803)
 Non-controlling interest          -           -        (139)       (139)
                         ------------------------------------------------
                                                                         
Balance - February 29,                                                   
 2016                        280,380     327,577       5,542     333,119 
                         ------------------------------------------------
                         ------------------------------------------------
                                                                         
                                                                         
                                                                         
Velan Inc.                                                                  
Condensed Interim Consolidated Statements of Cash Flow                      
(Unaudited)                                                                 
(in thousands of U.S. dollars)                                              
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                        Three-month periods ended        Fiscal years ended 
                        February 28, February 29, February 28, February 29, 
                                2017         2016         2017         2016 
                                   $            $            $            $ 
                                                                            
Cash flows from                                                             
                                                                            
Operating activities                                                        
Net income for the                                                          
 period                        4,086       (7,910)       8,314        4,285 
Adjustments to reconcile                                                    
 net income to cash                                                         
 provided by operating                                                      
 activities                    3,265        8,738       10,267       17,080 
Changes in non-cash                                                         
 working capital items        (7,059)      15,448      (11,434)       7,519 
                        ----------------------------------------------------
Cash provided (used) by                                                     
 operating activities            292       16,276        7,147       28,884 
                        ----------------------------------------------------
                                                                            
Investing activities                                                        
Short-term investments          (825)        (592)       2,251       (2,378)
Additions to property,                                                      
 plant and equipment          (1,730)     (12,077)      (7,721)     (19,791)
Additions to intangible                                                     
 assets                         (831)      (1,149)        (910)      (1,329)
Proceeds on disposal of                                                     
 property, plant and                                                        
 equipment, and                                                             
 intangible assets               220          122          399          272 
Acquisition of non-                                                         
 controlling interest              -            -            -         (890)
Net change in other                                                         
 assets                          134        1,625          482          177 
                        ----------------------------------------------------
Cash provided (used) by                                                     
 investing activities         (3,032)     (12,071)      (5,499)     (23,939)
                        ----------------------------------------------------
                                                                            
Financing activities                                                        
Dividends paid to                                                           
 Subordinate and                                                            
 Multiple Voting                                                            
 shareholders                 (1,632)      (1,583)      (6,584)      (6,753)
Dividends paid to non-                                                      
 controlling interest              -            -          (49)        (139)
Repurchase of shares            (572)        (367)        (926)      (2,738)
Short-term bank loans            337          115          331         (815)
Increase in long-term                                                       
 debt                          5,079       10,365        5,079       17,499 
Repayment of long-term                                                      
 debt                           (581)      (3,206)      (5,904)      (9,122)
                        ----------------------------------------------------
Cash provided (used) by                                                     
 financing activities          2,631        5,324       (8,053)      (2,068)
                        ----------------------------------------------------
                                                                            
Effect of exchange rate                                                     
 differences on cash              (7)       1,127       (1,708)      (2,499)
                        ----------------------------------------------------
                                                                            
Net change in cash                                                          
 during the period              (116)      10,656       (8,113)         378 
                                                                            
Net cash - Beginning of                                                     
 the period                   76,343       73,684       84,340       83,962 
                        ----------------------------------------------------
                                                                            
Net cash - End of the                                                       
 period                       76,227       84,340       76,227       84,340 
                        ----------------------------------------------------
                        ----------------------------------------------------
                                                                            
Net cash is composed of:                                                    
  Cash and cash                                                             
   equivalents                84,019       89,368       84,019       89,368 
  Bank indebtedness           (7,792)      (5,028)      (7,792)      (5,028)
                        ----------------------------------------------------
                                                                            
                              76,227       84,340       76,227       84,340 
                        ----------------------------------------------------
                        ----------------------------------------------------
                                                                            
Supplementary                                                               
 information                                                                
Interest received (paid)         353          432          641          532 
Income taxes reimbursed                                                     
 (paid)                       (2,447)      (4,695)      (7,722)     (10,742)
                                                                            
                                                                            

Contacts:
VELAN Inc.
Yves Leduc
President and Chief Executive Officer
(514) 748-7743
(514) 748-8635 (FAX)

VELAN Inc.
John D. Ball
Chief Financial Officer
(514) 748-7743
(514) 748-8635 (FAX)
www.velan.com

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SYS-CON Events announced today that Interoute has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Interoute is the owner operator of Europe's largest network and a global cloud services platform, which encompasses over 70,000 km of lit fiber, 15 data centers, 17 virtual data centers and 33 colocation centers, with connections to 195 additional partner data centers. Our full-service Unifie...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo | @ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
SYS-CON Events announced today that Progress, a global leader in application development, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Enterprises today are rapidly adopting the cloud, while continuing to retain business-critical/sensitive data inside the firewall. This is creating two separate data silos – one inside the firewall and the other outside the firewall. Cloud ISVs ofte...
SYS-CON Events announced today that Hitachi Data Systems, a wholly owned subsidiary of Hitachi LTD., will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City. Hitachi Data Systems (HDS) will be featuring the Hitachi Content Platform (HCP) portfolio. This is the industry’s only offering that allows organizations to bring together object storage, file sync and share, cloud storage gateways, and sophisticated search and...
SYS-CON Events announced today that delaPlex will exhibit at SYS-CON's @ThingsExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. delaPlex pioneered Software Development as a Service (SDaaS), which provides scalable resources to build, test, and deploy software. It’s a fast and more reliable way to develop a new product or expand your in-house team.
Existing Big Data solutions are mainly focused on the discovery and analysis of data. The solutions are scalable and highly available but tedious when swapping in and swapping out occurs in disarray and thrashing takes place. The resolution for thrashing through machine learning algorithms and support nomenclature is through simple techniques. Organizations that have been collecting large customer data are increasingly seeing the need to use the data for swapping in and out and thrashing occurs ...
We all know that end users experience the internet primarily with mobile devices. From an app development perspective, we know that successfully responding to the needs of mobile customers depends on rapid DevOps – failing fast, in short, until the right solution evolves in your customers' relationship to your business. Whether you’re decomposing an SOA monolith, or developing a new application cloud natively, it’s not a question of using microservices - not doing so will be a path to eventual ...
While presenting own advanced Robo-Advisory Platform, Michał Różański, Managing Partner at EARP and CEO at Empirica, will illustrate the most important issues of building tailored FinTech software in his session at 20th Cloud Expo. He will share experiences we have gained for over 6 years of developing solutions for financial institutions and FinTech companies, including robo-advisors. We welcome all FinTech innovators interested in how properly implemented technology can move their businesses f...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
Detecting internal user threats in the Big Data eco-system is challenging and cumbersome. Many organizations monitor internal usage of the Big Data eco-system using a set of alerts. This is not a scalable process given the increase in the number of alerts with the accelerating growth in data volume and user base. Organizations are increasingly leveraging machine learning to monitor only those data elements that are sensitive and critical, autonomously establish monitoring policies, and to detect...
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 21st International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @ThingsExpo Silicon Valley Call for Papers is now open.
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
Most DevOps journeys involve several phases of maturity. Research shows that the inflection point where organizations begin to see maximum value is when they implement tight integration deploying their code to their infrastructure. Success at this level is the last barrier to at-will deployment. Storage, for instance, is more capable than where we read and write data. In his session at @DevOpsSummit at 20th Cloud Expo, Josh Atwell, a Developer Advocate for NetApp, will discuss the role and valu...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm. In his Day 3 Keynote at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will explore t...
Automation is enabling enterprises to design, deploy, and manage more complex, hybrid cloud environments. Yet the people who manage these environments must be trained in and understanding these environments better than ever before. A new era of analytics and cognitive computing is adding intelligence, but also more complexity, to these cloud environments. How smart is your cloud? How smart should it be? In this power panel at 20th Cloud Expo, moderated by Conference Chair Roger Strukhoff, pane...