HIGHLIGHTS OF THE QUARTER Revenues up 33.8% to $107.4 million compared to the same period last year. Gross margins as a percentage of revenues (1) at 29.2% compared to 16.8% a year before. Net income of $15.3 million, up $9.9 million or 184.2%. Order backlog (1) at $427.5 million as at April 30, 2024, excluding new contracts announced on May 28, 2024. Announcing cash utilization strategy, including the intention to repurchase up to 3,000,000 shares and the increase of the semi-annual dividend from $0.01 per share to $0.02 per share. TERREBONNE, QC, June 11, 2024 /CNW/ - (All amounts are in Canadian dollars unless otherwise noted.) ADF GROUP INC. ("ADF" or the "Corporation") (TSX:DRX), a North American leader in the fabrication of steel superstructures, recorded revenues of $107.4 million in the first quarter ended April 30, 2024, compared with $80.3 million for the same period a year earlier. Gross margin, as a percentage of revenue (1), went from 16.8% for the 3-month period ended April 30, 2023, to 29.2% for the same period ended April 30, 2024. The improvement in margins is in line with the increase observed in recent quarters and is largely attributable to a better absorption of fixed costs, in line with the increase in the fabrication volume, the continued favorable impact of the investments in automation at ADF's plant in Terrebonne, Quebec, and a favorable mix of projects. Adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA) (2) at $23.1 million, is $13.1 million or 130.3% higher than as at April 30, 2023. For the first quarter ended April 30, 2024, ADF recorded a net income of $15.3 million ($0.47 per share, basic and diluted) compared with a net income of $5.4 million ($0.16 per share, basic and diluted) for the same period last year. As at April 30, 2024, the Corporation's order backlog (1) reached $427.5 million excluding the contracts announced on May 28, 2024, totaling $90.0 million. As at April 30, 2024, the Corporation had a working capital (1) of $127.5 million, while cash flows from operating activities required liquidities of $22.3 million for the quarter ended April 30, 2024. ____________________________________________________________________________ 1. The order backlog, gross margin as a percentage of revenues and working capital are additional financial measures. Refer to the "Non-GAAP and Other Financial Measures" section herein for the definition of these indicators. 2. Adjusted EBITDA is a non-GAAP financial measure.  Refer to the "Non-GAAP Financial Measures and Other Financial Measures" section of this press release for the definition of this indicator. Financial Highlights Three-Month Periods Ended April 30 2024 2023 (In thousands of Canadian dollars and in dollars per share) $ $ Revenues 107,400 80,271 Adjusted EBITDA (2) 23,099 10,031 Income before income tax expense 21,258 7,925 Net income for the period 15,265 5,371 —    Basic and diluted per share 0.47 0.16 (In thousands) Number Number