Glendale International reports first quarter results



    Toronto Stock Exchange Symbol: GIN

    OAKVILLE, ON, April 16 /CNW/ - Glendale International Corp. (TSX: GIN)
today reported financial results for the first quarter of fiscal 2007 ended
March 2, 2007.
    "Glendale RV's new Titanium SA models have been very well received by our
customers and have retailed strongly in the first quarter," said Edward C.
Hanna, Chief Executive Officer and Chairman, Glendale International Corp.
"With highly-differentiated floor plans featuring higher and deeper slideouts,
these models have retailed roughly 50% faster than our models a year ago.
However, our results were significantly impacted by a two month work stoppage
at our Glendale RV plant. On another note, we are pleased with the solid
performance achieved in the Aerospace division of our Electronics business
during the quarter. And, our Navigational Aids business continued to build on
its strong order book, receiving a significant order for more than 200
personal locator beacons from the Belgian Airforce and continued orders for
Distance Measuring Equipment."

    Financial Results

    Sales for the first quarter of fiscal 2007 were $36.5 million compared
with $38.6 million for the first quarter of last year. Net earnings for the
quarter were $0.4 million, or $0.03 per share, compared with $0.8 million, or
$0.06 per share, for the first quarter of fiscal 2006.
    As of March 2, 2007, Glendale International had working capital of
$29.2 million, including cash and cash equivalents of $4.4 million, compared
to working capital of $29.0 million, including cash and cash equivalents of
$5.2 million, on November 30, 2006.

    Recreational Vehicles (Glendale RV and Travelaire Canada)
    Sales for the Recreational Vehicles business for the quarter were
$16.1 million compared with $21.4 million for the first quarter of last year.
Sales were impacted by a six-week long strike at the Glendale RV plant in
Strathroy, Ontario, ending January 12, 2007.
    The Recreational Vehicles business posted an operating loss of
$381 thousand compared with operating earnings of $0.9 million for the first
quarter of fiscal 2006. Profitability for the quarter was impacted by the
strike mentioned above and higher labour costs per unit at the Travelaire
plant in Red Deer, Alberta.

    Electronics (Firan Technology Group Corporation)
    Sales for Firan Technology Group Corporation (TSX: FTG) for the quarter
were $13.9 million compared with $13.4 million for the same period last year.
The Aerospace division recorded a 36% increase in sales attributable to high
demand from its customer base and increased capacity. The higher sales in the
Aerospace division were partially offset by weaker sales from the Circuits
division, which experienced slightly lower demand early in the quarter.
    Operating earnings for the quarter more than doubled to $666 thousand
from $316 thousand for the same period a year earlier. The increase was
attributable to ongoing implementation of lean manufacturing initiatives at
FTG Aerospace and recovery of a Scientific Research and Experimental
Development tax credit, offset by lower throughput and margins in FTG
Circuits. In accordance with its ownership position in Firan Technology Group
Corporation, Glendale International recorded net earnings from the company for
the first quarter of $210 thousand compared with $78 thousand for the first
quarter of fiscal 2006.

    Navigational Aids (Fernau Avionics)
    Sales for Fernau Avionics for the quarter were $6.4 million compared with
$3.9 million for the same period last year. The 65% increase in sales was the
result of a very strong order book, particularly for Distance Measuring
Equipment (DMEs) to Nav Canada and Avinor AS.
    Operating earnings for the quarter were $1.4 million compared with
$0.5 million for the first quarter of fiscal 2006. The increase was
attributable to the higher sales and was positively impacted by an increased
number of support contracts, which contribute higher margins.

    Outlook

    "Riding on the demand for our new SA models we expect stronger RV sales
in fiscal 2007, despite the 2007 North American industry forecast for an 11%
decrease, primarily impacting the U.S. market," said Mr. Hanna. "Our continued
focus on innovation and differentiation will ensure our competitiveness in the
towables market as we look to capitalize on the strong long-term industry
outlook based on favourable demographic trends and increasing popularity of
the RV lifestyle."
    "Our Electronics business will leverage its integrated sales force to
capitalize on the robust aerospace and defence market, and will continue to
focus on controlling costs by improving production yields. Finally, our
Navigational Aids business, with its significant order backlog and additional
contract wins expected, is very well-positioned for continued growth,"
Mr. Hanna concluded.

    About Glendale International Corp.

    Glendale International Corp. manages businesses that provide the
opportunity for superior long-term value creation through the application of
proven managerial expertise and innovative business strategies. The
Corporation has built a portfolio of profitable growth businesses in the
recreational vehicles, electronics and technology sectors and will seek to
acquire complementary businesses that support its value-building proposition.
    Glendale International's core business, Glendale Recreational
Vehicles/Travelaire Canada, is the largest Canadian manufacturer of
recreational vehicles. 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, and Fernau Avionics, a leading international supplier of ground-based
air navigational systems for military, naval and civil aviation applications.

    Glendale International's common shares are listed on the Toronto Stock
Exchange ("TSX") under the symbol "GIN". The Corporation has approximately
12.5 million 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 reflects the expectations of Glendale
International Corp., regarding its growth, results of operations, performance
and business prospects, and opportunities and trends affecting the
recreational vehicles, electronics, and navigational aids 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.


    
    Financial Highlights
    (in thousands of dollars except per share amounts)
    (prepared without audit)

                                                -----------------------------
                                                     Three Months Ended
                                                March 2, 2007  March 3, 2006
    -------------------------------------------------------------------------
    Sales                                             $36,460        $38,617

    Net Earnings from Continuing Operations           $   422        $ 1,009
    Net Loss from Discontinued Operation                    -           (231)
                                                -----------------------------
    Net Earnings                                      $   422        $   778
                                                -----------------------------
    -------------------------------------------------------------------------
    Basic and Diluted Net Earnings per Share
     from Continuing Operations                       $  0.03        $  0.08
    Basic and Diluted Net Earnings per Share          $  0.03        $  0.06
    -------------------------------------------------------------------------


    INTERIM CONSOLIDATED BALANCE SHEETS
    (in thousands of dollars)
    (prepared without audit)

                                                       As At
                                       --------------------------------------
                                       March 2,   November 30,       March 3,
                                          2007           2006           2006
                                       --------------------------------------
    CURRENT ASSETS
      Cash and cash equivalents        $ 4,394        $ 5,244        $ 1,035
      Accounts receivable               24,424         20,940         24,420
      Income taxes recoverable           1,459            924            196
      Inventories                       24,827         23,425         25,101
      Deposits and prepaid expenses        974            879          1,171
      Future income taxes                  751            698          1,283
      Current assets of discontinued
       operation                             -              -            467
                                       --------------------------------------
                                        56,829         52,110         53,673
    Notes Receivable                     2,403          2,395          1,967
    Future Income Taxes                  2,301          1,940            564
    Property, Plant and Equipment
     (net of accumulated depreciation)  10,140         10,051         15,669
    Intangible Asset (net of
     accumulated amortization)             271            275            269
    Goodwill                             4,876          4,876          4,876
    Long Term Assets of Discontinued
     Operation                               -              -            188
                                       --------------------------------------
                                       $76,820        $71,647        $77,206
                                       --------------------------------------
                                       --------------------------------------
    CURRENT LIABILITIES
      Bank indebtedness                $ 2,500        $   597        $10,177
      Accounts payable and accrued
       liabilities                      24,035         21,556         23,342
      Income taxes payable                  33              -             33
      Current portion of long-term debt  1,031            995          9,474
      Current liabilities of
       discontinued operation                -              8            531
                                       --------------------------------------
                                        27,599         23,156         43,557
    Long-Term Debt                       5,468          5,584              -
    Deferred Gain on Sale of Property    3,993          4,214              -
    Future Income Taxes                     49             49             49
    Non-Controlling Interest             9,381          9,109          8,196
                                       --------------------------------------
                                        46,490         42,112         51,802

    SHAREHOLDERS' EQUITY
      Share capital                      1,249          1,249          1,249
      Contributed surplus                9,170          9,123          8,971
      Accumulated other comprehensive
       income                              627            301         (1,583)
      Retained earnings                 19,284         18,862         16,767
                                       --------------------------------------
                                        30,330         29,535         25,404
                                       --------------------------------------
                                       $76,820        $71,647        $77,206
                                       --------------------------------------
                                       --------------------------------------


    INTERIM CONSOLIDATED STATEMENTS OF EARNINGS
    (in thousands of dollars except per share amounts)
    (prepared without audit)

                                                     Three Months Ended
                                                -----------------------------
                                                March 2, 2007  March 3, 2006
                                                -----------------------------
    Sales                                             $36,460        $38,617
                                                -----------------------------
    Costs and Expenses
      Manufacturing, selling and administration        34,377         35,933
      Gain on sale of property, plant and
       equipment                                            -             (6)
      Depreciation and amortization                       970          1,023
      Research and development                            392            359
                                                -----------------------------
                                                       35,739         37,309
                                                -----------------------------

    Operating Earnings                                    721          1,308

    Other Income (Expenses)
      Interest income                                      99             66
      Interest expense - long term                       (140)          (171)
      Interest expense - short term                       (11)          (191)
                                                -----------------------------
                                                          (52)          (296)
    Earnings Before Income Taxes, Non-
     Controlling Interest and Discontinued
     Operation                                        $   669        $ 1,012
    Recovery of income taxes                              (25)           (97)
                                                -----------------------------
    Earnings Before Non-Controlling Interest
     and Discontinued Operation                       $   694        $ 1,109
    Non-controlling interest                             (272)          (100)
                                                -----------------------------
    Earnings from Continuing Operations               $   422        $ 1,009
    Loss from discontinued operation                        -           (231)
                                                -----------------------------
    Net Earnings                                      $   422        $   778
                                                -----------------------------
                                                -----------------------------

    Basic and Diluted Net Earnings per Share
     from Continuing Operations                       $  0.03        $  0.08
                                                -----------------------------
                                                -----------------------------
    Basic and Diluted Net Earnings per Share          $  0.03        $  0.06
                                                -----------------------------


    INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
    (in thousands of dollars)
    (prepared without audit)

                                                     Three Months Ended
                                                -----------------------------
                                                March 2, 2007  March 3, 2006
                                                -----------------------------
    Continuing Operating Activities
      Net earnings from continuing operations         $   422        $ 1,009
      Items not affecting cash
        Amortization of deferred gain                    (221)             -
        Depreciation and amortization                     970          1,023
        Stock option expense                               47             48
        Future income taxes                              (402)          (204)
        Non-controlling interest                          272            100
        Gain on sale of property, plant and
         equipment                                          -             (6)
        Changes in non-cash operating working
         capital                                       (2,654)        (8,293)
                                                -----------------------------
                                                       (1,566)        (6,323)

    Discontinued operation                                 (8)           344

    Investing Activities
      Purchase of capital assets                         (986)          (906)

    Financing Activities
      Increase in bank indebtedness                     1,903          3,671
      Repayment of long-term debt and capital
       leases                                            (248)        (1,971)
                                                -----------------------------
                                                        1,655          1,700

      Effect of foreign exchange rate changes
       on cash                                             55             12
                                                -----------------------------
    NET CASH FLOW                                        (850)        (5,173)
    Cash and Cash Equivalents, Beginning of
     Period                                             5,244          6,208
                                                -----------------------------
    Cash and Cash Equivalents, End of Period          $ 4,394        $ 1,035
                                                -----------------------------
                                                -----------------------------

    Supplemental disclosures of cash flows:
      Payments for interest                           $   104        $   363
      Payments for income taxes                       $     -        $   343
      Refunds for income taxes                        $     -        $    14


    SEGMENTED INFORMATION
    (in thousands of dollars)
    (prepared without audit)

                                         OPERATING SEGMENTS
                       ------------------------------------------------------
                        Recrea-                               Cor-
    Three Months Ended  tional     Nav     Elec-             porate
     March 2, 2007     Vehicles    Aids   tronics   Other    Office   Total
                       ------------------------------------------------------
    Sales               $16,149  $ 6,400  $13,911  $     -  $     -  $36,460
    Costs and
     expenses            16,530    5,013   13,245        -      951   35,739
                       ------------------------------------------------------
    Operating
     earnings              (381)   1,387      666        -     (951)     721
    Interest income           -       49        -        -       50       99
    Interest expense
     - long term              -      106     (138)       -     (108)    (140)
    Interest expense
     - short term             -        -        -        -      (11)     (11)
    Income tax recovery       -     (464)     (46)       -      535       25
    Non-controlling
     interest                 -        -     (272)       -        -     (272)
                       ------------------------------------------------------
    Net earnings          ($381) $ 1,078  $   210  $     -    ($485) $   422
                       ------------------------------------------------------
                       ------------------------------------------------------
    Total and
     identifiable
     assets             $22,467  $24,926  $24,160  $     -  $ 5,267  $76,820
    Capital
     expenditures       $    83  $    33  $   860  $     -  $    10  $   986
    Depreciation and
     amortization       $   109  $    65  $   790  $     -  $     6  $   970
    Goodwill            $     -  $     -  $ 4,876  $     -  $     -  $ 4,876


    Three Months Ended
     March 3, 2006
    Sales               $21,377  $ 3,877  $13,363  $     -  $     -  $38,617
    Costs and expenses   20,477    3,351   13,047        -      434   37,309
                       ------------------------------------------------------
    Operating earnings      900      526      316        -     (434)   1,308
    Interest income           -       36        -        -       30       66
    Interest expense
     - long term              -       18     (105)       -      (84)    (171)
    Interest expense
     - short term             -        -        -        -     (191)    (191)
    Income tax recovery       -      207      (33)       -      (77)      97
    Non-controlling
     interest                 -        -     (100)       -        -     (100)
                       ------------------------------------------------------
    Earnings from
     continuing
     operations             900      787       78        -     (756)   1,009
    Loss from
     discontinued
     operation                -        -        -     (231)       -     (231)
                       ------------------------------------------------------
    Net earnings        $   900  $   787  $    78    ($231)   ($756) $   778
                       ------------------------------------------------------
                       ------------------------------------------------------
    Total and
     identifiable
     assets             $28,297  $16,529  $19,882  $   655  $11,843  $77,206
    Capital
     expenditures       $    43  $    14  $   832  $     -  $    17  $   906
    Depreciation and
     amortization       $   136  $    62  $   800  $     -  $    25  $ 1,023
    Goodwill            $     -  $     -  $ 4,876  $     -  $     -  $ 4,876
    





For further information:

For further information: please contact: Trevor Heisler, Investor
Relations, The Equicom Group Inc., (416) 815-0700 ext 270, (416) 815-0080 fax,
Email: theisler@equicomgroup.com; Edward C. Hanna, Chief Executive Officer and
Chairman, Glendale International Corp., (905) 844-2870, (905) 844-2907 fax,
Email: ehanna@glendaleint.com

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GLENDALE INTERNATIONAL CORP.

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