TORONTO, Nov. 14, 2012 /CNW/ - General Donlee Canada Inc. ("General
Donlee" or the "Company") (TSX: GDI) today announced its results for
the third quarter ended September 30, 2012. The Board has declared a
quarterly dividend of 8.25 cents per common share payable on January
15, 2013 to holders of record at the close of business on December 28,
Financial highlights relating to General Donlee's third quarter 2012:
Backlog of $62.5 million at September 30, 2012, 17% higher than in Q3
Basic income per share of 10.3 cents for the quarter compared to 4.4
cents per share in Q3 2011
Quarterly dividend of 8.25 cents per share paid to shareholders on
October 15, 2012
Continuing positive cash flow from operations
"General Donlee generated $12.6 million in sales during the third
quarter, up slightly from the similar period last year. In the third
quarter we generated $1.4 million of positive cash flow from operations
before changes in working capital and net of interest expenses, and
paid out $0.88 million in quarterly dividends to shareholders" said the
Company's President and Chief Executive Officer, Garen Mikirditsian.
"At September 30, 2012, our production order backlog was at $62.5
million, a near record high and up 72% over the last three years, and
represents the confidence our customers have in the Company's ability
to consistently deliver product of the highest quality," said Mr.
Mikirditsian. "We expect demand to remain robust, especially from
Gross profit for the quarter remained healthy. "Our strong gross profit
for the quarter reflects our positive top line performance but also is
evidence of careful management of our costs", said Mr. Mikirditsian.
Net Income before other gains, losses and income taxes
Net income before other gains, losses and income taxes for the quarter
was $1.3 million, down slightly over the comparable period in 2011.
The following summary of financial data presents General Donlee's
consolidated results of operations for the three-month and nine-month
periods ended September 30, 2012, including comparative results for the
same periods in 2011.
($ millions, except per Share amounts)
Three Months Ended
Nine Months Ended
Net income before other gains, losses and income taxes
Basic income per share
Based on weighted average of 10,615,183 shares outstanding.
Based on weighted average of 10,664,634 shares outstanding.
Based on weighted average of 10,635,432 shares outstanding.
General Donlee had sales of $40.9 million for the first nine months of
2012 - an increase of $3.8 million, or 10%, over its sales in the same
period in 2011. Sales in the Company's aerospace and power generation
products division during the nine month period ended September 30, 2012
were $24.9 million - up by 7%, or $1.7 million, over the comparable
period in 2011. General Donlee's specialty precision products
division's sales during the same period were $16.0 million, an increase
of $2.1 million or 15% over the same period last year.
Excluding the impact of non-recurring items in both comparable periods,
the Company's net income before other gains, losses and income taxes
during the nine months ended September 30, 2012 was $5.0 million, up
42% compared to $3.5 million during the same period in 2011.
The Company's net income during the nine months ended September 30, 2012
was $3.4 million, compared to net income of $2.9 million during the
same period in the previous year.
The Company continues to see strong demand from customers, especially
those in the aerospace sector. "Our production backlog of $62.5 million
is evidence of the confidence our customers have in the Company's
ability to consistently deliver product of the highest quality," said
President and Chief Executive Officer, Garen Mikirditsian.
The Company expects demand for its services to remain robust. "We see
potential to broaden our customer base in the aerospace and oil & gas
industries, as well as particular opportunities in the nuclear sector",
said Mr. Mikirditsian. "We are making significant investments in
capital equipment and human resources to support our growth strategy
and to offer incremental capabilities and capacity to our customers,
while ensuring we continue to provide them with excellent service."
General Donlee's outlook for sustainable and profitable growth is also
grounded on its consistent focus on continuous improvement. "We
continue to implement operational improvement initiatives, with a
particular emphasis on increasing throughput and managing our working
capital effectively," added Mr. Mikirditsian. "Operational excellence
is key to our strategy, and we are committed to exceeding our
customers' expectations by continuously improving our performance in
Safety, Quality, Delivery and Productivity."
General Donlee Canada Inc. is a leading diversified manufacturer of
precision-machined products for the military, commercial and general
aerospace industries, and a specialist in the manufacture of
precision-machined products for the industrial products and power
generation industries. General Donlee's operating strategy focuses on
targeting niche markets for products that are aligned with its
sophisticated manufacturing capabilities and skilled workforce.
References to "net income before other gains, losses and income taxes"
are to earnings before other losses and gains and provision for income
taxes. This non-GAAP measure, is not an earnings measure recognized by
IFRS and does not have a standardized meaning prescribed by IFRS.
On November 14, 2012 the Company will file its unaudited Condensed
Consolidated Interim Financial Statements (including the notes thereto)
and Management's Discussion and Analysis for the nine-month period
ended September 30, 2012 with SEDAR at www.sedar.com. The documents will also be available on the Company's website at www.generaldonlee.com on the Financial Reports page.
As with all forward-looking statements, caution must be exercised to
ensure that appropriate interpretation is made. Certain forward-looking
statements are based on information currently available to Management,
but are subject to a number of uncertainties and risks that could cause
actual results to differ materially from the results discussed in the
forward-looking statements. These uncertainties and risks include, but
are not limited to those listed under the "Risk Factors" section of the
Company's 2011 Annual Information Form, dated March 30, 2012 (which can
be found at www.sedar.com).
Further information can be found in the disclosure documents filed by
General Donlee Canada Inc. with the securities regulatory authorities,
available at www.sedar.com or through the Company's website at www.generaldonlee.com.
% SEDAR 00017571E
SOURCE: General Donlee Canada Inc.
For further information:
President & Chief Executive Officer
Telephone: (416) 743-4417
Interim Chief Financial Officer
Telephone: (416) 743-4417
Web site: www.generaldonlee.com