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Héroux-Devtek Reports First Quarter Fiscal 2022 Financial Results


  • Sales of $126.2 million, compared to $128.3 million last year
  • Defence sales growth of 21.5%, mitigating the impact of the pandemic on the civil sector
  • Operating income of $10.8 million, compared to $1.4 million last year
  • Adjusted EBITDA1 of $20.0 million, or 15.9% of sales, compared to $18.4 million, or 14.3% last year
  • Strong cash flows from operating activities of $18.2 million, compared to $15.5 million last year
  • Purchase and cancellation of 672,827 common shares for $11.9 million under the NCIB through August 9

LONGUEUIL, QC, Aug. 10, 2021 /CNW Telbec/ - Héroux-Devtek Inc. (TSX: HRX) ("Héroux-Devtek" or the "Corporation"), a leading international manufacturer of aerospace products and the world's third-largest landing gear manufacturer, today reported its financial results for the first quarter ended June 30, 2021. Unless otherwise indicated, all amounts are in Canadian dollars.

"I am encouraged with our first quarter results with sales at $126.2 million, supported by continued growth in our defence sales which mitigated softness in the civil sector as well as head winds coming from foreign exchange. I am confident that we can deliver stronger throughput as our production system is continuing to adapt to the changes we made over the past year," said Martin Brassard, President and CEO of Héroux-Devtek.

"We continue to see the future with prudent optimism given our diversified product portfolio and the flexibility we can derive from our strong financial position. Once the civil aerospace market recovers, we will be ready to absorb the resulting growth within our current production structure," added Mr. Brassard.


Three months ended
June 30,

(in thousands, except per share data)




$ 126,188

$ 128,335

Operating income



Adjusted operating income1



Adjusted EBITDA1



Net income (loss)



Adjusted net income1



Cash flows related to operating activities



Free cash flow1



in dollars per share

Earnings (loss) per share – basic and diluted

$       0.19

$     (0.04)

Adjusted EPS1




1 These are non-IFRS measures. Please refer to the "Non-IFRS Measures" section at the end of this press release.


Consolidated sales decreased 1.7 to $126.2 million, from $128.3 million last year. Lower foreign exchange rates, particularly for the U.S. dollar, negatively impacted sales by $9.5 million, or 7.4%, compared to the corresponding quarter in Fiscal 2021.

Excluding the impact of foreign exchange rate fluctuations, defence sales were up 21.5%, while civil sales decreased 19.0%. The increase in defence sales mainly resulted from the ramp-up of deliveries under the Boeing F-18 and Sikorsky CH-53K programs, as well as by higher aftermarket demand. The decrease in civil sales is mainly related to lower demand due to the COVID-19 pandemic, whose impact had not fully materialized in the first quarter of Fiscal 2021.

Gross profit for the quarter grew from $20.5 million last year to $21.6 million, mainly as a result of the positive effect of the Corporation's restructuring initiatives on its cost structure, partially offset by the negative impact of foreign exchange fluctuations. As a percentage of sales, gross profit grew from 16.0% to 17.1%.

Operating income grew to $10.8 million, or 8.6% of sales, compared to $1.4 million, or 1.1% of sales last year, which reflected $6.0 million of restructuring charges. Adjusted EBITDA, which excludes non-recurring items, stood at $20.0 million, or 15.9% of sales, compared with $18.4 million, or 14.3% of sales, a year ago.

Earnings per share grew from a loss of $0.04 last year to earnings of $0.19 in the first quarter this year, as a result of the same factors as those presented above. Adjusted EPS reached $0.19 in the first quarter, up from $0.09 last year.


Cash flows related to operating activities reached $18.2 million in the first quarter, up from $15.5 million last year, mainly as a result of higher adjusted EBITDA.

As at June 30, 2021, net debt stood at $148.0 million, down from $157.5 million as at March 31, 2021. The decrease in net debt during the three-month period is mainly related to cash flow generation net of cash allocated to the Normal Course Issuer Bid.


In May 2021, the Corporation announced the approval by the Toronto Stock Exchange of its Normal Course Issuer Bid (NCIB), under which Héroux-Devtek has the right to purchase for cancellation, from May 25, 2021, to May 24, 2022, a maximum of 2,412,279 common shares, representing, as of May 12, 2021, 10% of the public float of 24,122,794 common shares.

As of August 9, 2021, Héroux-Devtek has purchased and cancelled a cumulative 672,827 common shares for a cash consideration of $11.9 million, representing a weighted average price of $17.69 per share.


Héroux-Devtek Inc. will hold a conference call to discuss these results on Tuesday, August 10, 2021, at 11:30 AM Eastern Time. Interested parties can join the call by dialing 1-888-390-0549 (North America) or 1-416-764-8682 (overseas). The conference call can also be accessed via live webcast on Héroux-Devtek's website, or at An accompanying presentation is also available on Héroux-Devtek's website at

If you are unable to call in at this time, you may access a recording of the meeting by calling 1-888-390-0541 and entering the passcode 793675 on your phone. This recording will be available from Tuesday, August 10, 2021, as of 2:30 PM Eastern Time until 11:59 PM Eastern Time on Tuesday, August 17, 2021.


Except forhistorical information provided herein, this press release contains information and statements of a forward-looking nature concerning the future performance of the Corporation.

Forward-looking statements are based on assumptions and uncertainties as well as on management's best possible evaluation of future events. Such factors include, but are not limited to: the effect of the ongoing COVID- 19 pandemic on Héroux-Devtek's operations, customers, supply chain, the aerospace industry and the economy in general; the impact of other worldwide general economic conditions; industry conditions including changes in laws and regulations; increased competition; the lack of availability of qualified personnel or management; availability of commodities and fluctuations in commodity prices; financial and operational performance of suppliers and customers; foreign exchange or interest rate fluctuations; and the impact of accounting policies issued by international standard setters. Readers are cautioned that the foregoing list of factors that may affect future growth, results and performance is not exhaustive and undue reliance should not be placed on forward- looking statements.

As a result, readers are advised that actual results may differ from expected results. Please see the Risks and Uncertainties section under Additional Information in the Corporation's MD&A for the first quarter ended June 30, 2021, for further details regarding the material assumptions underlying the forecasts and guidance. Such forecasts and guidance are provided for the purpose of assisting the reader in understanding the Corporation's financial performance and prospects and to present management's assessment of future plans and operations, and the reader is cautioned that such statements may not be appropriate for other purposes.


Earnings before interest, taxes, depreciation and amortization ("EBITDA"), adjusted EBITDA, adjusted net income, adjusted earnings per share and free cash flow are financial measures not prescribed by International Financial Reporting Standards ("IFRS") and are not likely to be comparable to similar measures presented by other issuers. Management considers these to be useful information to assist investors in evaluating the Corporation's profitability, liquidity and ability to generate funds to finance its operations. Refer to Non-IFRS Financial Measures section under Operating Results in the Corporation's MD&A for definitions of these measures and reconciliations to the most comparable IFRS measures.


Héroux-Devtek Inc. (TSX: HRX) is an international company specializing in the design, development, manufacture, repair and overhaul of aircraft landing gear, hydraulic and electromechanical actuators, custom ball screws and fracture-critical components for the Aerospace market. The Corporation is the third-largest landing gear company worldwide, supplying both the defence and commercial sectors. Approximately 90% of the Corporation's sales are outside of Canada, including about 53% in the United States. The Corporation's head office is located in Longueuil, Québec with facilities in Canada, the United States, the United Kingdom and Spain.

SOURCE Héroux-Devtek Inc.

For further information: Héroux-Devtek Inc., Stéphane Arsenault, Vice President and Chief Financial Officer Tel.: 450-679-3330,; Investor Relations, Hugo Delorme, Tel.: 514-700-5550, ext. 555,