GLV - Fiscal 2012 Second Quarter Results

(All amounts are in Canadian dollars)

For the second quarter 2012

  • Revenues of $173.9 million compared to $161.3 million for the corresponding quarter of fiscal 2011
  • EBITDA of $6.5 million and normalized EBITDA of $7.3 million compared to ($2.5 million) a year earlier
  • Net earnings and net earnings from continuing operations attributable to shareholders of GLV Inc. of $4.4 million compared to ($9.2 million) and ($7.1 million), respectively, for the corresponding quarter of fiscal 2011
  • Normalized net earnings attributable to shareholders of GLV Inc. of $5.1 million or $0.11 per share, basic and diluted

For the six-month period ended September 30, 2011

  • Revenues of $324.3 million compared to $309.6 million for the corresponding period of fiscal 2011
  • EBITDA of $10.5 million and normalized EBITDA of $11.3 million compared to $1.4 million a year earlier
  • Net earnings and net earnings from continuing operations attributable to shareholders of GLV Inc. of $0.3 million compared to ($13.4 million) and ($10.9 million), respectively, for the corresponding period of fiscal 2011
  • Normalized net earnings attributable to shareholders of GLV Inc. of $1.0 million or $0.02 per share, basic and diluted

Data as at September 30, 2011

  • Total net debt to invested capital ratio, excluding the current portion of long-term debt of 18.4%, compared to 18.9% as at March 31, 2011
  • Working capital ratio of 1.57 compared to 1.50 as at March 31, 2011
  • Backlog of $430.0 million, compared to $372.2 million as at March 31, 2011

MONTREAL, Nov. 10, 2011 /CNW Telbec/ - GLV Inc. (the "Corporation") (TSX: GLV.A GLV.B) released its results today for the second quarter of fiscal 2012. Results are presented in accordance with International Financial Reporting Standards ("IFRS") since the first quarter of 2012. The previous fiscal year's results and data have been restated.

This press release presents the highlights of the second quarter ended September 30, 2011. For a detailed analysis, please see the interim Management's Discussion and Analysis and the unaudited condensed interim consolidated financial statements filed today on the websites of SEDAR (www.sedar.com) and the Corporation (www.glv.com). Note that non-IFRS financial measures have also been used to analyze performance. However, management considers that these measures provide useful information to investors in assessing the Corporation's financial performance and position.

The Corporation's results for the quarter ended September 30, 2011 were in line with management's expectations, as the majority of units in all operating groups reported positive operational results in the markets they serve.  These results were partially offset by a negative performance of one subsidiary in the desalination segment and management continues to closely monitor the situation and will be prudent in estimating the future costs of current projects stemming from the acquisition of Christ Water Technology (CWT).

In the second quarter of fiscal 2011, significant operational issues in an energy subsidiary in the United Kingdom had a major negative impact on the Corporation's results. Consequently, there was a significant improvement in profitability in the second quarter of fiscal 2012 compared to the same quarter a year earlier.

Despite the impact of this significant event in the second quarter of 2011, consolidated revenues, EBITDA and EBITDA margin were all up over the second quarter of the previous year and the first quarter of fiscal 2012. This shows the improvement in backlog quality over the past twelve months and the effectiveness of the project control and management measures implemented by management following the acquisition of CWT.

For the six-month period ended September 30, 2011, results are also up over the previous period, basically for the above-mentioned reasons.

For the second quarter of 2012 and the six-month period ended September 30, 2011, an income tax recovery of 3.7 million and 1.9 million have been recognized,  respectively, compared to 0.6 million for the same periods a year earlier. This recovery is mainly explained by the corporate reorganization of certain subsidiaries that resulted in a reduction of the valuation allowance.

Given that the Corporation's main financing agreement matures in the next twelve months, in August 2012, the amounts used on these revolving credit facilities will be presented as current liabilities starting from the second quarter of fiscal 2012, until its renewal.  The Corporation has begun renegotiating the agreement and expects to have the new agreement in place by March 31, 2012.

As at September 30, 2011, the backlog of $430.0 million was up compared to $421.0 million as at June 30, 2011 and $372.2 million as at March 31, 2011. The backlog in the Pulp and Paper Group has grown steadily since the beginning of fiscal 2012, and significantly so in the new equipment sales market. For Ovivo, the sharp increase reported at the end of the first quarter stemmed from the energy and renewable energy segments, the desalination segment in Africa and the European municipal segment, partially offset by a decrease in the municipal segment in the United States. The decrease since that date is due mainly to the renewable energy and desalination segments, partially offset by the positive impact of currency fluctuations.

For fiscal 2012 as a whole, assuming exchange rates remain stable at current levels and in light of the outlook in the sectors served by each group, the Corporation is maintaining its forecast for consolidated revenues to range from $650 million to $675 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 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. There can be no assurance as to the materialization of the results, performance or achievements as expressed in or underlying the forward-looking statements. The forward-looking statements included in this press release were made as of the date hereof, and unless required to do so pursuant to applicable securities legislation, management of GLV assumes no obligation to update them.

Additional information about the risk factors to which GLV is exposed is provided in section 11, Risks and Uncertainties in the MD&A for the fiscal year ended March 31, 2011 available on SEDAR (www.sedar.com) and the Corporation's website (www.glv.com).

CONFERENCE CALL

Date and time: Thursday, November 10, 2011 at 2 p.m. (EST)
Dial-in number:
1-877-974-0448 (North America)
1-416-644-3422 (International)

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) Thursday, November 10, 2011 until midnight Thursday, November 17, 2011 at 1-877-289-8525 (1-416-640-1917-International) (access code: 4486006#).

SOURCE GLV INC.

For further information:

Investors and Media:
Marc Barbeau
Executive Vice-President and Chief Financial Officer
Tel.: +1-514-284-2224
courrier@glv.com

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GLV INC.

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