GDG Environment Group presents its financial results for the third quarter of
2009 and improves its EBITDA during the last quarter
TROIS-RIVIÈRES, QC,
Highlights
- The Company recorded an increase of 24.0% in EBITDA for the quarter
ended September 30, 2009 compared to an EBITDA of 21.4% for the same
quarter of 2008.
- In the last quarter, the Group's strategy to expand its services to
municipalities has materialized into many contracts awarded for the
ecological control of ragweed.
Financial results - three-month period ended September 30, 2009
- Operating expenses have decreased by 10.5%, or $658,065, for the three-
month period ended September 30, 2009 compared to $735,484 for the same
quarter in 2008. Non recurring charges helped reduce the expenditure
for the quarter ended September 30, 2009 compared to the same period in
2008.
- Sales totalled $2,967,148 for the three-month period ended September
30, 2009 compared to $3,029,393 for the corresponding period in 2008,
being a decrease of 2.1 %. The reduction in sales for the three-month
period ended September 30, 2009 is due to current financial markets
bringing pressure on prices resulting from a tighter business
environment. The contracts related to ragweed's control over the last
three-month period have reduced the impact on sales reduction.
- For the three-month period ended September 30, 2009, gross margin was
established to $1,115,446 compared to $1,171,833 for the same period a
year earlier. It represents 37.6% of the sales compared to 38.7% for
the same quarter in 2008.
- The Company recorded, for the three-month period ended September 30,
2009, an EBITDA of $713,523 (24.0%) compared to $648,638 (21.4%) for
the three-month period ended September 30, 2008. It represents an
improvement over the quarter mainly due to lower sales and
administrative costs.
- Net income is at $314,693, or $0.01 per share, for the three-month
period ended in September 30, 2009 compared to net income of $291,464
for the same period in 2008. There was an increase in quarterly net
earnings compared to the same period last year despite the decrease in
revenues and increased financial expenses.
Financial results - nine-month period ended September 30, 2009
- Sales totalled $6,731,367 for the nine-month period ended September 30,
2009 compared to $7,182,599 for the corresponding period in 2008, being
a decrease of 6.3%. The reduction in sales for the nine-month period is
due to current financial markets bringing pressure on prices resulting
from a tighter business environment.
- For the nine-month period ended September 30, 2009, the gross margin
was $2,315,382 compared to $2,358,795 for the same period a year
earlier. A reduction of material resources, and the use of GPS (Global
Positionning System) technology throughout operations, has resulted in
an improvement of gross margin being at 34.4% during the last three
quarters of 2009 compared to 32.8% during the same quarters in 2008.
- For the nine-month period ended in September 30, 2009, the Company
recorded net earnings of $109,792 compared to net earnings of $996,306
for the same period in 2008. The decrease in net earnings as at
September 30, 2009, compared to the same period last year, is due to
the decrease in revenues, increased financial costs and professional
expenses related to maintaining a public company. It is also linked to
the deployment of human resources in the research and development of
new market niches and for international development.
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GDG ENVIRONMENT GROUP LTD.
DATA EXTRACTED FROM CONSOLIDATED
FINANCIAL STATEMENTS - BALANCE SHEET
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(In thousands For the three-month For the nine-month
of dollars) period ending period ending
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September September September September
30, 2009 30, 2008 30, 2009 30, 2008
(unaudited) (unaudited) (unaudited) (unaudited)
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$ $ $ $
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Sales 2,967 3,029 6,731 7,183
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Cost of sales 1,852 1,857 4,416 4,824
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Gross margin 1,115 1,172 2,315 2,359
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Selling and
administrative
expenses 384 518 1,288 1,247
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Research and
Development 18 5 91 26
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EBIDTA(1) 713 649 936 1,086
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Financial charges 180 144 523 270
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Depreciation of
fixed assets 76 68 220 194
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Total operating
expenses 658 735 2,122 1,737
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Earning before the
following items: 457 437 193 622
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Other revenue
(expenses) (12) (5) (26) 589
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Earnings before
income tax 445 432 167 1,211
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Income taxes
(recovered) 131 140 57 215
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Net earnings 314 292 110 996
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Net earnings
per share - Basic
(note 11) 0.01 0.00 0.00 0.02
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Net earnings
per share - Diluted 0.01 0.00 0.00 0.01
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Weighted average
number of shares
outstanding 59,621,685 59,621,685 59,621,685 54,944,981
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(1) The Company uses only one financial measure that is not consistent
with Canadian GAAP, namely earnings before interest, income taxes,
depreciation and amortization (EBITDA). Such a measure is used because
management believes that it provides meaningful information about the
Company's performance and operating results. Such a non-GAAP measure has
no standardized meaning as prescribed by GAAP and is not necessarily
comparable to similarly titled measures presented by other companies.
Accordingly, it should not be considered independently of other figures.
(note 11) Financial statements at September 30, 2009
About GDG Environment Group (www.groupegdg.com)
Since 1980, GDG Environment Group, a recognized Canadian leader in the integrated control of biting flies, offers a broad range of services targeting the improvement of quality of life and the protection of public health, mainly through the biological control of biting flies, vector control and the surveillance and prevention of West Nile Virus in
GDG Environment Group operates 3 divisions: GDG Environnement, front-runner in the biological control of biting flies and vector control, GDG Aviation which manages all aerial operations for the Group and Diamond Sylvico, a Northern
The Group markets its expertise throughout the country and has a strong team of scientists and managers plus a team of nearly 200 professionals and technicians in the summer. The Group is established as the most important player in
The Company's financial statements for the three-month period ended
Listed on the TSX Venture Exchange since
Forward-looking statements
This press release contains forward-looking statements which reflect GDG Environment Group's current expectations regarding future events. Those statements involve known and unknown risks and uncertainties, which could cause the Company's actual results, performance and achievements to differ materially from those in the forward-looking statements. GDG Environment Group disclaims any obligation to update these forward-looking statements.
The TSX Venture Exchange Inc. does not accept responsibility for the
adequacy or accuracy of this press release.
For further information: Isabelle Martin, Vice President, Operations and Chief of Finances, GDG Environment Group Ltd., [email protected]; Renmark Financial Communications Inc.: Maurice Dagenais, [email protected]; Jason Roy, [email protected]; (514) 939-3989, (416) 644-2020; www.renmarkfinancial.com
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