GLV - Fiscal 2011 Third Quarter Results

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                                 HIGHLIGHTS

      Quarter ended December 31, 2010
      -------------------------------

    - Revenues of $190.7 million, up from $139.2 million for the
      corresponding quarter of fiscal 2010, resulting primarily from organic
      revenue growth in the Water Treatment Group (Ovivo) and the Pulp and
      Paper Group, plus the inclusion of Christ Water Technology AG (CWT).
    - Normalized EBITDA of $9.6 million, up from $7.3 million year over year,
      owing in part to sound performance by the Water Treatment Group
      (Ovivo), in the U.S. municipal market and in microelectronics, and by
      the Pulp and Paper Group as a whole.
    - Net loss of $0.9 million ($0.02 per share basic and diluted) compared
      with net earnings of $1.7 million ($0.05 per share basic and diluted)
      for the third quarter of fiscal 2010, a difference arising in
      particular from provisions recognized in the third quarter. Excluding
      the normalized items, the Corporation generated normalized net earnings
      of $2.2 million ($0.05 per share, basic and diluted) for the third
      quarter of fiscal 2011 compared with $1.5 million ($0.04 per share,
      basic and diluted) year over year.
    - Free cash flow of $4.1 million compared with $4.3 million a year
      earlier.

      Data as at December 31, 2010
      ----------------------------

    - Total net debt ratio of 14.6% as December 31, 2010, up from 6.9% as at
      March 31, 2010 resulting mainly from investments in working capital to
      support operations, in addition to the investments aimed, in
      particular, at minimizing the difficulties of the European division
      responsible for energy contract management.
    - Backlog of $385.9 million, down from $428.2 million as at September 30,
      2010, owing to a decline in order taking or postponements in contracts
      to be awarded in both the Water Treatment Group (Ovivo) and Pulp and
      Paper Group.
    >>

MONTREAL, Feb. 10 /CNW Telbec/ - (All amounts are in Canadian dollars)

GLV Inc. (the "Corporation"; TSX: GLV.A, GLV.B) released its results today for the three- and nine-month periods ended December 31, 2010. The Corporation reported a substantial increase in revenues, owing primarily to organic revenue growth in sales by the Water Treatment Group (Ovivo) and the Pulp and Paper Group, as well as to the inclusion of Christ Water Technology AG (CWT). As a result, for the third quarter of fiscal 2011, GLV reported an increase in operating income, which significantly reduced the net loss relative to the previous quarter.

"The results for the third quarter show a marked improvement in profitability compared with the two previous fiscal quarters," said President and CEO Richard Verreault. "While the integration of CWT has proven to be more challenging than expected and had a negative impact on results in the first half of the fiscal year, efforts to consolidate our water treatment operations under the Ovivo brand and strengthen management and control processes are starting to pay off."

Summary analysis of financial results

This press release provides a summary analysis of results for three- and nine-month periods ended December 31, 2010. For more information, see the Corporation's interim Management's Discussion and Analysis (MD&A) and consolidated financial statements filed today on SEDAR (www.sedar.com) and the Corporation's website (www.glv.com). Note that financial measures such as EBITDA and free cash flow, which are not measures determined under Canadian generally accepted accounting principles ("GAAP"), have also been used to analyze performance. See the interim MD&A for information on the non-GAAP measures used.

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    Selected Information
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                                   Quarters            Nine-month periods
                              ended December 31         ended December 31
                          ------------------------- -------------------------
                                 2010         2009         2010         2009
    ----------------------------------------------- -------------------------
    (in thousands of $,
     except per share data
     and percentages)                    (restated)                (restated)
    Revenues                  190,656      139,192      511,951      355,165
      Water Treatment
       (Ovivo)                127,298       95,925      337,301      219,719
      Pulp & Paper             52,876       40,700      144,412      128,174
      Other                    10,482        2,567       30,238        7,272
    ----------------------------------------------- -------------------------
    EBITDA                      7,403        7,685        6,962       14,400
      Water Treatment
       (Ovivo)                  6,333        6,651        6,569       14,797
      Pulp & Paper              3,561        3,268       10,892        7,277
      Other                    (2,491)      (2,234)     (10,499)      (7,674)
    ----------------------------------------------- -------------------------
    Normalized EBITDA(1)        9,569        7,335        9,128       15,418
      Water Treatment
       (Ovivo)                  7,863        6,651        8,099       15,408
      Pulp & Paper              3,561        2,268       10,892        6,908
      Other                    (1,855)      (1,584)      (9,863)      (6,898)
    ----------------------------------------------- -------------------------
    Normalized EBITDA
     margin(1) (% of
     revenues)                    5.0%         5.3%         1.8%         4.3%
      Water Treatment
       (Ovivo)                    6.2%         6.9%         2.4%         7.0%
      Pulp & Paper                6.7%         5.6%         7.5%         5.4%
      Other                       n/a          n/a          n/a          n/a
    ----------------------------------------------- -------------------------
    Net earnings (loss)          (852)       1,737      (14,643)       3,327
    ----------------------------------------------- -------------------------
    Free cash flow              4,148        4,347          878        6,421
    ----------------------------------------------- -------------------------

    Per share (basic and
     fully diluted)
    ----------------------------------------------- -------------------------
      Net earnings (loss)       (0.02)        0.05        (0.33)        0.11
      Free cash flow             0.09         0.12         0.02         0.21
    ----------------------------------------------- -------------------------

                          December 31     March 31  December 31     March 31
    Capitalization ratio         2010         2010         2010         2010
    ----------------------------------------------- -------------------------
    Total net debt to
     invested capital
     ratio                       14.6%         6.9%        14.6%         6.9%
    ----------------------------------------------- -------------------------
    (1) Excluding restructuring costs and special doubtful accounts and
        compensation items
    >>

Third quarter of fiscal 2011

For the three-month period ended December 31, 2010, the Corporation reported revenues totalling $190.7 million compared with $139.2 million for the corresponding quarter of fiscal 2010. The Water Treatment Group (Ovivo) generated the major part of this increase through organic revenue growth (at constant exchange rates) driven by sustained business volumes in the U.S. municipal and energy markets, coupled with the inclusion of CWT's results. The Pulp and Paper Group reported organic revenue growth, at constant exchange rates, sparked by improved demand for both new equipment and aftermarket services.

In the third quarter of 2011, the Corporation reported normalized items totalling $2.2 million and an asset impairment charge of $0.9 million. These items are mostly attributable to the Water Treatment Group (Ovivo), mainly relating to provisions for severance benefits and restructuring costs related to the eventual sale, closure or restructuring of certain CWT entities as well as asset write-offs.

For the three-month period ended December 31, 2010, the Corporation reported consolidated earnings before interest, income taxes and amortization (EBITDA) of $7.4 million and normalized EBITDA of $9.6 million, compared with year-over-year readings of $7.7 million and $7.3 million, respectively. The increase in normalized EBITDA resulted in part from sound performance by the Water Treatment Group (Ovivo), in the U.S. municipal market and in microelectronics, and by the Pulp and Paper Group as a whole.

Excluding the operating losses of entities earmarked for sale, closure or restructuring, the Water Treatment Group (Ovivo) would have reported normalized EBITDA for the third quarter of $10.0 million with a normalized EBITDA margin of 8.2% (expressed as a percentage of revenues).

Accordingly, the Corporation reported a net loss of $0.9 million ($0.2 per share, basic and diluted) for the third quarter of fiscal 2011 compared with net earnings of $1.7 million ($0.05 per share, basic and diluted) year over year. This loss resulted from the unfavourable effect of provisions recognized in the third quarter and the increase in amortization of intangible assets subsequent to the acquisition of CWT and interest on long-term debt for acquisition financing.

Excluding normalized items, the Corporation reported normalized net earnings of $2.2 million ($0.05 per share, basic and diluted) compared with $1.5 million ($0.04 per share, basic and diluted) year over year.

Nine-month period ended December 31

The Corporation reported revenues totalling $512.0 million compared with $355.2 million year over year. This revenue growth resulted in large part from the inclusion of CWT's results, but also from organic revenue growth at constant exchange rates in the Pulp and Paper Group and to a lesser degree, in the Water Treatment Group (Ovivo).

The Corporation reported consolidated EBITDA of $7.0 million and normalized EBITDA of $9.1 million for the first nine months of fiscal 2011, down from year-over-year levels of $14.4 million and $15.4 million, respectively. The decline resulted primarily from the operating losses at two European divisions of the Water Treatment Group (Ovivo) in the first half of the fiscal year.

Excluding the operating losses of the two European divisions undergoing restructuring and the entities earmarked for sale, closure or restructuring, the Water Treatment Group (Ovivo) would have reported normalized EBITDA for the first nine months of the fiscal year of $20.0 million with a normalized EBITDA margin of 6.9% (expressed as percentage of revenues).

The Corporation recorded a year-to-date net loss of $14.6 million ($0.33 per share, basic and diluted) compared with net earnings of $3.3 million ($0.11 per share, basic and diluted) a year earlier. The operating loss at two European divisions of the Water Treatment Group (Ovivo) in the first half of fiscal 2011 and provisions recognized in the third quarter were the primary factors behind the difference relative to results for the first nine-months of the previous fiscal year. The increase in financial expenses and amortization of intangible assets resulting from the acquisition of CWT widened this difference.

Financial position

During the third quarter of fiscal 2011, the Corporation reported free cash flow of $4.1 million ($0.09 per share, basic and diluted) compared with $4.3 million ($0.12 per share, basic and diluted) for the same quarter in fiscal 2010. Year-to-date, the Corporation generated free cash flow of $0.9 million ($0.02 per share, basic and diluted) compared with $6.4 million ($0.21 per share, basic and diluted) for the first nine months of the previous fiscal year.

As at December 31, 2010, net of cash and cash equivalents, total net debt stood at $43.2 million for a total net debt to invested capital ratio of 14.6% compared with $20.3 million and a 6.9% ratio as at March 31, 2010. The increase in total net debt ratio resulted mainly from investments in working capital to support operations, in addition to investments aimed in particular at minimizing difficulties in the European division responsible for energy contract management.

Backlog

As at December 31, 2010, the Corporation's backlog was worth $385.9 million compared with $428.2 million as at the end of the previous quarter, September 30, 2010. This decline resulted from slower order taking in certain business segments, amplified by the exchange rate impact for both the Water Treatment Group (Ovivo) and the Pulp and Paper Group.

More specifically, the slowdown in order taking resulted from:

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    - The number of energy sector contracts decreasing over the past few
      months;
    - A more cautious approach to project selection in energy and seawater
      desalination segments;
    - Some delays in the awarding of contracts by clients of the Water
      Treatment Group (Ovivo), particularly in the U.S. municipal market and
      the Asia-Pacific food and beverage sector, as well as by Pulp and Paper
      Group clients.
    >>

The above factors were partly offset by higher order intake volumes in the U.K. municipal market and for water treatment systems used in the pulp and paper industry.

Outlook

"For the next few quarters, market prospects look encouraging for both the Water Treatment Group (Ovivo) and the Pulp and Paper Group," said Mr. Verreault. "In light of the current tendering activity, healthy business volumes are anticipated in most of the industries we serve. However, we continue to proceed with caution. The Corporation as a whole remains tightly focused on increasing profitability. We're confident that our results will continue to improve with the completion of CWT's integration, including the sale, closure or restructuring of unprofitable entities, and in light of the range of actions taken in the past few quarters to strengthen project, procurement and cash management."

For the Water Treatment Group (Ovivo), business in microelectronics, pulp and paper, metal refineries and food and beverage is expected to hold at a good pace. Despite a positive outlook in seawater desalination, the Group is being selective in the projects it is bidding on to better manage the risks associated with turnkey projects.

After the major slowdown of the past two years, the U.K. municipal market has bounced back. The Group reported a sustained recovery in business, owing in particular to the implementation of the AMP5 infrastructure investment program. Given the number of requests for proposals in the United States, the short-term outlook remains positive. However, trends over the medium and long terms are more difficult to extrapolate, given that the implementation of new infrastructure projects is subject to the budgetary constraints placed on local authorities.

The short-term outlook for the pulp and paper industry is favourable. Pulp prices remain at healthy levels, further prompting paper companies to invest in facility maintenance and new equipment. The number of requests for bids on replacement parts and upgrading services and new equipment points to sustained market activity, particularly in Asia.

For fiscal 2011 as a whole, assuming exchange rates remain stable at current levels and in light of the outlook in the segments serviced by both groups, the Corporation expects consolidated revenues to range from $675 million to $700 million.

About GLV Inc.

GLV Inc. is a leading global provider of water treatment solutions, under the Ovivo brand, as well as technological solutions used in pulp and paper production. It operates in some 30 countries with approximately 2,300 employees. GLV is a public company whose shares trade on the Toronto Stock Exchange (TSX) under the ticker symbols GLV.A and GLV.B; it is a constituent of the S&P/TSX Clean Technology Index.

Notice regarding forward-looking statements

Certain information and statements in this press release and other public communications regarding management's objectives, projections, estimates, expectations or forecasts may constitute forward-looking statements within the meaning of applicable securities legislation. Forward-looking statements concern analyses and other information based on forecasted future results and the estimate of amounts that cannot yet be determined. These may be observations concerning, in particular, strategies, expectations, planned activities or future actions. Forward-looking statements are recognized by the use of terms such as "forecast," "project," "could," "plan," "aim," "estimate" and other similar terms, possibly used in the future or conditional, particularly with regard to certain assumptions.

The management of GLV would like to point out that forward-looking statements involve a number of uncertainties and known and unknown risks such that GLV's actual and future results could differ considerably from those stated. Factors of uncertainty and risk that might result in such differences include the risks related to acquisitions and contracts with clients, dependence on key personnel, exchange rate fluctuations, credit, market and liquidity risks, competition, supplier-related risks, availability of the financing required to carry on the business and strategic plan, concentration risk, availability of raw materials, fluctuations in interest rates, potential lawsuits regarding intellectual property rights, asset impairment risk and risks associated with GLV's holding company structure. There can be no assurance as to the materialization of the results, performance or achievements as expressed in or underlying the forward-looking statements. In addition, unless otherwise indicated, the forward-looking statements included in this press release were set forth at the date hereof, and unless required to do so pursuant to applicable securities legislation, GLV's management assumes no obligation as to the updating or revision of the forward-looking statements as a result of new information, future events or other changes. Forward-looking statements are designed to provide the reader with a description of management's expectations regarding the Corporation's financial performance during fiscal 2011 and may not be appropriate for other purposes.

Additional information about the risk factors to which GLV is exposed is provided under "Risk management and risk factors" in the MD&A for the fiscal year ended March 31, 2010 available on SEDAR (www.sedar.com) and the Corporation's website (www.glv.com). The significant factors and assumptions used to draw conclusions or prepare forecasts or projections are also discussed in the MD&A for the fiscal year ended March 31, 2010.

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                               CONFERENCE CALL
                               ---------------

                 Thursday, February 10, 2011 at 2 p.m. (EST)
                       Dial-in number: 1-800-731-5319

               An audio webcast of the conference call will be
                        streamed live on www.glv.com.
               An audio recording will be accessible on demand
             from 5 p.m. (EST) February 10, 2011 until midnight
                     February 17, 2011 at 1-877-289-8525
                           (access code: 4403892#).

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    >>

SOURCE GLV INC.

For further information: Investors: Louis Guindon, Vice-President, Treasury, Tel.: 514-284-2224, courrier@glv.com; Media: Yves Doucet, Director, Communications, Tel.: 514-284-7202, yves.doucet@glv.com

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GLV INC.

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