Glendale International reports first quarter financial results



    Toronto Stock Exchange Symbol: GIN

    OAKVILLE, ON, April 8 /CNW/ - Glendale International Corp. (TSX: GIN)
today reported financial results for the first quarter ended February 27,
2009.
    Glendale International Corp. reports segmented information in its
consolidated financial statements as follows: Recreational Vehicles,
Electronics, and Corporate Office. The financial results for the first quarter
ended February 27, 2009 for each segment are set out below:

    Recreational Vehicles (Glendale RV and Travelaire Canada)

    The Recreational Vehicle segment is comprised of two operating divisions,
Glendale RV located in Strathroy, Ontario and Travelaire located in Red Deer,
Alberta.

    
    Glendale RV
    -----------
    

    Net loss for the Glendale RV division for the first quarter was $1.2
million compared to net loss of $195,000 for the first quarter of 2008. Sales
at Glendale RV were $1.4 million in the first quarter of 2009 compared to $6.5
million in 2008. The decrease in sales and profitability for the first quarter
is the result of a combination of negative economic factors including
fluctuations in currencies, fluctuations in the price of oil, availability of
credit, and the negative conditions of the North American economy.

    
    Travelaire
    ----------
    

    Net loss for the Travelaire division for the first quarter was $565,000
compared to net loss of $950,000 for the first quarter of 2008. Sales at
Travelaire were $2.8 million in the current quarter compared to $2.4 million
in 2008.
    The increase in sales and the reduction in net loss at Travelaire in the
first quarter of 2009 as compared to the first quarter of 2008 relates to the
sale of workforce accommodations, mobile office units and well site units for
the natural resource and construction industries in Western Canada. Travelaire
has focused on the manufacture of these products to further diversify its
manufacturing capabilities to include recreational vehicles, park models and
commercial products. At the end of the fourth quarter of 2008 order back log
for production of commercial units was approximately two months, at the end of
the first quarter of 2009 there were no further orders for production of
Commercial Units at Travelaire. As a result of the recent significant decline
in the price of crude oil, the demand for Commercial Products in Western
Canada is uncertain. Travelaire continues to assess the demand for Commercial
and Recreational Vehicle products in Western Canada.
    With respect to the first quarter of 2009 Mr. Edward Hanna, Chief
Executive Officer of Glendale indicated that "the loss during the quarter for
the Recreational Vehicle Segment was primarily the result of a significant
decline in demand for our recreational vehicle and commercial products due to
the unprecedented negative economic environment. We continue to rationalize
costs across all divisions and are debt free with working capital of $15.5
million including cash of $4.7 million as at February 27, 2009."

    Electronics (Firan Technology Group Corporation)

    FTG's sales grew in the first quarter of 2009 to $14.7 million
representing an increase of $1.1 million or 8% over the first quarter of 2008.
Sales were positively impacted by the strengthening of the US dollar which
offset a decline in activity across both the circuits and aerospace
businesses. FTG's customers reduced their inventories during the quarter which
reduced the demand for FTG's products. The acquisition of Filtran in 2008
resulted in increased revenues of $777,000 in the first quarter of 2009. FTG
continues to see solid demand for Filtran products and is working to leverage
its knowhow and expand into new programs and customers.
    The first quarter of 2009 sales for the Circuits division were $11.5
million representing an increase of $917,000 or 9% compared to the first
quarter of 2008. For the Aerospace division, sales in the first quarter were
$3.2 million compared to $3.0 million in the first quarter of 2008
representing an increase of $179,000 or 6% over the same quarter in 2008.
    Net loss before non-controlling interest for the first quarter of 2009
was $67,000 compared to a net loss before non-controlling interest of $1.0
million in the same quarter of 2008. The first quarter is historically the
weakest quarter given the lowest number of production days resulting from the
holiday season. Research and development expenditures remained high in the
first quarter of 2009 as FTG continues to invest in new technologies and
programs.
    FTG accomplished many goals in the first quarter that continue to improve
the Corporation and position it for the future, including:

    
    -   The renewal of multiyear contracts with Honeywell and Rockwell
    -   Qualification at Lockheed Martin for both Circuits facilities
    -   The renewal and expansion of credit facilities with Comerica bank
    -   Acquisition and commissioning of Laser Direct Imaging Technology in
        Circuits-Toronto
    -   Continued higher investments in technology activity across all three
        sites
    

    "Given the state of the global economy we are pleased with our results in
the first quarter of 2009. Notwithstanding the dip we saw in demand we
maintained our growth, paid down our debt and renewed our credit facilities
with our bank," stated Mr. Brad Bourne, President and Chief Executive Officer
of FTG. "We remain committed to our strategy of Operational Excellence to
improve our internal performance and to aggressively invest in R&D to improve
our technological capabilities to grow the business," he added.
    For a more detailed analysis of FTG's financial results please access
such information at SEDAR. www.sedar.com.

    Corporate Office

    Corporate office incurred expenses of $494,000 during the first quarter
of 2009 compared to $732,000 during the first quarter of 2008. The decrease
relates to the continued cost rationalization and the cost savings associated
with the downsizing of corporate office during the fourth quarter of 2008.

    Consolidated Financial Results

    Consolidated sales for the first quarter of 2009 were $19 million
compared to $22.6 million for the first quarter of last year. Net loss for the
first quarter of 2009 was $2.3 million, or $0.25 per share, compared to net
loss of $1.1 million, or $0.12 per share, for the first quarter of 2008.

    About Glendale International Corp.

    Glendale International Corp. manages businesses that provide the
opportunity for long-term value creation through the application of proven
managerial expertise and innovative business strategies. The Corporation owns
businesses in the recreational vehicles and electronics industries, and will
seek to acquire complementary businesses that support its value-building
proposition.
    Glendale's Recreational Vehicle business is comprised of two operating
divisions: Glendale Recreational Vehicles ("Glendale RV") located in
Strathroy, Ontario and Travelaire Canada ("Travelaire") located in Red Deer,
Alberta. Glendale RV manufactures a broad range of innovative, differentiated
high-quality Recreational Vehicles ("RV's") for both the US and Canadian
markets and Travelaire manufactures Park Model trailers and Relocatable
Structures for the Western Canadian market place. The Corporation also owns a
controlling position in Firan Technology Group Corporation, a leading North
American manufacturer of high technology printed circuit boards and precision
illuminated display systems.

    Glendale International's common shares are listed on the Toronto Stock
Exchange ("TSX") under the symbol "GIN". The Corporation has 12,487,017 common
shares outstanding.

    To reach Glendale International via the worldwide web logon to
www.glendaleint.com.

    Forward-Looking Statements

    This press release contains "forward-looking" statements related to
future events or future performance and reflect the expectations of Glendale
International Corp., regarding its growth, results of operations, performance
and business prospects, and opportunities and trends affecting the
recreational vehicles, and electronics industries. Such forward-looking
statements reflect current beliefs of management and are based on information
currently available. In certain cases, forward-looking statements can be
identified by the use of words such as "believe", "expects", "will",
"intends", "projects", "anticipates", "estimates", "continues" or similar
words or the negative of these or other comparable terminology. Readers are
cautioned that forward-looking information involves known and unknown risks,
uncertainties and other factors that may cause actual results, performance or
achievements to be materially different from any future results, performance
or achievements expressed or implied by the forward-looking information.
Accordingly, investors should not place undue reliance on forward-looking
information. Any forward-looking statements included in this press release are
made as of the date of this press release and Glendale International Corp.
assumes no obligation to update or revise them to reflect new events or
circumstances.


    
    GLENDALE INTERNATIONAL CORP.
    Interim Consolidated Balance Sheets
    (in thousands of dollars)
    (prepared without audit)
    -------------------------------------------------------------------------
                                                             As at
                                                   February 27,  November 30,
                                                          2009          2008
    -------------------------------------------------------------------------
    CURRENT ASSETS
      Cash                                              $5,051        $6,538
      Accounts receivable                               13,967        16,358
      Income taxes receivable                              501           501
      Inventories                                       21,313        22,816
      Deposits and prepaid expenses                        748           656
    -------------------------------------------------------------------------
                                                        41,580        46,869
    Note Receivable                                      1,967         1,967
    Accrued Benefit Asset                                1,351         1,314
    Future Income Taxes                                    839           880
    Property, Plant and Equipment, net of
     accumulated depreciation                            9,657         9,374
    Goodwill                                             5,011         4,910
    Other Intangible Assets                                419           431
    -------------------------------------------------------------------------
                                                       $60,824       $65,745
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    CURRENT LIABILITIES
      Bank indebtedness                                 $3,126        $2,977
      Accounts payable and accrued liabilities          11,820        14,152
      Current portion of long-term debt and
       capital leases                                    1,928         1,843
    -------------------------------------------------------------------------
                                                        16,874        18,972
    Long-Term Debt and Capital Leases                    5,782         6,121
    Deferred Gain on Sale of Property                    2,245         2,462
    -------------------------------------------------------------------------
                                                        24,901        27,555

    Non-Controlling Interest                             7,359         7,397

    SHAREHOLDERS' EQUITY
      Share capital                                      1,249         1,249
      Share purchase financing                          (4,450)       (4,450)
      Contributed surplus                               10,321        10,216
      Accumulated other comprehensive income               262           324
      Retained earnings                                 21,182        23,454
    -------------------------------------------------------------------------
                                                        28,564        30,793
    -------------------------------------------------------------------------
                                                       $60,824       $65,745
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    GLENDALE INTERNATIONAL CORP.
    Interim Consolidated Statements of Loss
    (in thousands of dollars except per share amounts)
    (prepared without audit)
    -------------------------------------------------------------------------
                                                      Three Months Ended
                                                   February 27,  February 29,
                                                          2009          2008
    -------------------------------------------------------------------------
    Sales                                              $18,970       $22,578
    -------------------------------------------------------------------------

    Costs and Expenses
      Manufacturing, selling and administration         19,229        23,595
      Research and development costs                     1,124           863
      Recovery of research and development costs           (50)            -
      (Gain)/loss on sale of property, plant and
       equipment                                            (1)            1
      Amortization of deferred gain                       (217)         (217)
      Amortization of intangible assets                     12             -
      Depreciation and amortization                        744           827
      Stock based compensation                              51            45
      Restructuring costs                                    -           208
      Foreign exchange loss                                220            21
    -------------------------------------------------------------------------
                                                        21,112        25,343
    -------------------------------------------------------------------------
    Loss Before Undernoted                              (2,142)       (2,765)
    -------------------------------------------------------------------------

    Other (Expenses)/Income
      Interest income                                       34           256
      Interest expense - long term                        (122)         (139)
      Interest expense - short term                        (28)          (48)
    -------------------------------------------------------------------------
                                                          (116)           69
    -------------------------------------------------------------------------

    Loss Before Income Taxes and Non-Controlling
     Interest                                          ($2,258)      ($2,696)

    (Provision for)/recovery of income taxes               (52)          972
    -------------------------------------------------------------------------
    Loss Before Non-Controlling Interest               ($2,310)      ($1,724)
    Non-controlling interest                                38           589
    -------------------------------------------------------------------------
    Net Loss                                           ($2,272)      ($1,135)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Basic and Diluted Net Loss per Share                ($0.25)       ($0.12)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    GLENDALE INTERNATIONAL CORP.
    Interim Consolidated Statements of Cash Flows
    (in thousands of dollars)
    (prepared without audit)
    -------------------------------------------------------------------------
                                                      Three Months Ended
                                                   February 27,  February 29,
                                                          2009          2008
    -------------------------------------------------------------------------
    Operating Activities
      Net loss from continuing operations              ($2,272)      ($1,135)
      Items not affecting cash
        Amortization of deferred gain                     (217)         (217)
        Depreciation and amortization                      744           827
        Amortization of intangible assets                   12             -
        Stock based compensation expense                    51            45
        Future income taxes                                 41          (995)
        Non-controlling interest                           (38)         (589)
        (Gain)/loss on sale of property, plant and
         equipment                                          (1)            1
        Increase in accrued benefit asset                  (37)            -
        Effect of exchange rates on foreign
         currency denominated Canadian debt                120           (57)
        Changes in non-cash operating working capital    1,604        (4,963)
    -------------------------------------------------------------------------
                                                             7        (7,083)

    Investing Activities
      Purchase of property, plant and equipment           (950)         (164)
      Proceeds on sale of property, plant and
       equipment                                             1             -
      Restricted cash                                        -           101
      Acquisition of Filtran Microcircuits Inc.              -        (1,462)
      Share purchase financing                              54             -
    -------------------------------------------------------------------------
                                                          (895)       (1,525)

    Financing Activities
      Increase in bank indebtedness                         91         3,493
      Repayment of long-term debt and capital leases      (466)         (318)
    -------------------------------------------------------------------------
                                                          (375)        3,175
      Effect of foreign exchange rates on cash            (224)           (1)
    -------------------------------------------------------------------------
    Decrease in cash                                    (1,487)       (5,434)
    Cash, Beginning of Period                            6,538        17,543
    -------------------------------------------------------------------------
    Cash, End of Period                                 $5,051       $12,109
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Supplemental cash flow information:
      Payments for interest                               $148          $234
      Payments for income taxes                             $2            $2
      Refunds for income taxes                               -             -



    GLENDALE INTERNATIONAL CORP.
    Segmented Information
    (in thousands of dollars)
    (prepared without audit)
    -------------------------------------------------------------------------
                                             OPERATING SEGMENTS
    -------------------------------------------------------------------------
    Three Months Ended      Recreational  Electronics  Corporate       Total
     February 27, 2009          Vehicles                  Office
    -------------------------------------------------------------------------
    Sales                         $4,276     $14,694           -     $18,970
    Costs and expenses             6,006      14,612         494      21,112
    -------------------------------------------------------------------------
    Loss before undernoted        (1,730)         82        (494)     (2,142)
    Interest income                    -           -          34          34
    Interest expense -
     long term                         -        (122)          -        (122)
    Interest expense -
     short term                        -         (25)         (3)        (28)
    Income tax provision               -          (2)        (50)        (52)
    Non-controlling interest           -          38           -          38
    -------------------------------------------------------------------------
    Net loss                     ($1,730)       ($29)      ($513)    ($2,272)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Total and identifiable
     assets                      $15,936     $25,756     $19,132     $60,824
    Capital expenditures             $34        $916           -        $950
    Depreciation and
     amortization                    $98        $644          $2        $744
    Goodwill                           -      $5,011           -      $5,011


    Three Months Ended
     February 29, 2008
    -------------------------------------------------------------------------
    Sales                         $8,980     $13,598           -     $22,578
    Costs and expenses            10,125      14,486         732      25,343
    -------------------------------------------------------------------------
    Loss before undernoted        (1,145)       (888)       (732)     (2,765)
    Interest income                    -           -         256         256
    Interest expense -
     long term                         -        (139)          -        (139)
    Interest expense -
     short term                        -         (43)         (5)        (48)
    Income tax recovery                -          23         949         972
    Non-controlling interest           -         589           -         589
    -------------------------------------------------------------------------
    Net loss                     ($1,145)      ($458)       $468     ($1,135)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Total and identifiable
     assets                      $17,339     $23,093     $31,972     $72,404
    Capital expenditures             $63        $101           -        $164
    Depreciation and
     amortization                   $122        $700          $5        $827
    Goodwill                           -      $4,469           -      $4,469
    

    %SEDAR: 00002453E




For further information:

For further information: Edward C. Hanna, Chief Executive Officer and
Chairman, Glendale International Corp., (905) 844-2870, (289) 291-4001 fax,
Email: ehanna@glendaleint.com; Brian Jennings, Chief Financial Officer,
Glendale International Corp., (905) 844-2870, (289) 291-4001 fax, Email:
bjennings@glendaleint.com

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GLENDALE INTERNATIONAL CORP.

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