Mr. Jean Paschini reports

ADF GROUP INC. ANNOUNCES THE RESULTS FOR THE FISCAL YEAR ENDED JANUARY 31, 2024

ADF Group Inc. had revenues of $331-million during the fiscal year ended Jan. 31, 2024, compared with $250.9-million the previous fiscal year.

Gross margin, as a percentage of revenues, went from 14.2 per cent for the fiscal year ended Jan. 31, 2023, to 22 per cent for the fiscal year ended Jan. 31, 2024. This increase as a percentage of revenues is explained by a higher fabrication volume, generating better absorption of fixed costs, and by the improvement in internal efficiency generated by investments made in recent years in robotization and increased automation of fabrication processes at ADF's plant located in Terrebonne, Que.

Earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) for the fiscal year ended Jan. 31, 2024, totalled $55.9-million, which is $29.8-million, or 114 per cent, higher than at the same date a year earlier.

For the fiscal year ended Jan. 31, 2024, ADF posted net income of $37.6-million ($1.15 per share, basic and diluted) compared with net income of $14.9-million (46 cents per share, basic and diluted) a year earlier.

As at Jan. 31, 2024, the corporation had a working capital of $110.1-million, 68 per cent more than at the same date a year ago. In addition, the corporation generated cash flow from operating activities totalling $77.9-million during the fiscal year ended Jan. 31, 2024.

As at Jan. 31, 2024, the corporation's order backlog stood at $510.9-million, compared with $376.5-million as at Jan. 31, 2023. The majority of projects in hand will be completed progressively by the second semester of the fiscal year ending Jan. 31, 2026.

Outlook

"These results reflect ADF's efforts and strategies over the past few years, from the construction of our state-of-the-art fabrication plant in Great Falls, Mont., nearly 10 years ago, to our investment in robotization and increased automation of our fabrication process at our Terrebonne plant, in Quebec," said Jean Paschini, chairman of the board of directors and chief executive officer.

Mr. Paschini concluded: "During this period, ADF has invested over $110-million to strengthen its position as one of North America's leading fabricators of all types of steel structures and heavy steel components. Today, we are reaping the fruits of this work and the sustained efforts of all ADF employees."

Dividend

On April 10, 2024, ADF Group announced the payment of a semi-annual dividend of one cent per subordinate voting share and per multiple voting shares, which will be paid on May 15, 2024, to shareholders of record as at April 26, 2024.

Conference call with investors

A conference call with investors is scheduled for Thursday, April 11, 2024, at 10 a.m. (Montreal time) to discuss the results of fiscal year ended Jan. 31, 2024.

To join the conference call without operator assistance, you can register with your phone number on-line to receive an instant automatic reminder.

You can also join the conference call with operator assistance by dialling 1-888-390-0620 a few minutes prior to the conference call scheduled start time.

A replay of this conference call will be available from 1 p.m. on April 11, 2024, to April 18, 2024, by dialling 1-888-259-6562, followed by access code 855225 followed by the pound key.

The conference call (audio) will also be available at the company's website. Members of the media are invited to join in listening mode.

Annual general meeting of shareholders for the fiscal year ended Jan. 31, 2024

ADF Group's annual meeting of shareholders will be held on:

• Date: Tuesday, June 11, 2024;
• Time: 11 a.m.;
• Location: Sheraton Laval Hotel 2440, Autoroute des Laurentides, Laval, Que., Canada.

Results for the first quarter ended April 30, 2024, will also be released at the annual meeting of shareholders.

About ADF Group Inc.

ADF Group is a North American leader in the design and engineering of connections, fabrication, including the application of industrial coatings, and installation of complex steel structures, heavy steel built-ups, as well as in miscellaneous and architectural metals for the non-residential infrastructure sector. ADF Group is one of the few players in the industry capable of handling highly technically complex megaprojects on fast-track schedules in the commercial, institutional, industrial and public sectors. The corporation operates two fabrication plants and two paint shops in Canada, and a construction division in the United States, which specializes in the installation of steel structures and other related products.

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