Glendale International reports third quarter financial results

Toronto Stock Exchange Symbol: GIN

OAKVILLE, ON, Oct. 13 /CNW/ - Glendale International Corp. (TSX: GIN) today reported financial results for the third quarter ended August 28, 2009.

Glendale International Corp. reports segmented information in its unaudited interim consolidated financial statements as follows: Recreational Vehicles, Electronics, (only up to and including second quarter of 2009) and Corporate Office. The financial results for the third quarter ended August 28, 2009 and year to date 2009 compared to the same periods in 2008 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 third quarter was $1,012,000 compared to net loss of $1,417,000 for the third quarter of 2008. Year to date net loss was $3,095,000 compared to a loss of $1,747,000 for the same period last year. Sales at Glendale RV were $4,273,000 in the third quarter of 2009 compared to $3,398,000 in 2008. Year to date sales were $8,991,000 compared to $16,581,000 for the same period in 2008. The increase in sales and decrease in net loss for the third quarter result from a small pick up in the RV Industry. However, the year to date numbers continue to be impacted by the negative conditions of the North American economy.

    
    Travelaire
    ----------
    

Net loss for the Travelaire division for the third quarter was $235,000 compared to a net loss of $756,000 for the third quarter of 2008. Year to date loss was $1,264,000 compared to $2,343,000 for the same period in 2008. Sales at Travelaire were $2,027,000 in the current quarter compared to $1,376,000 in 2008. Year to date sales were $6,041,000 compared to $6,723,000 in 2008.

The increase in sales at Travelaire in the third quarter, compared to the same period last year, was the result of orders for commercial products received and shipped during the quarter. Year to date sales in 2009 as compared to the same period of 2008 relate to lower activity in the resource sector and the economic factors affecting the RV Industry. The reduction in net loss in the third quarter and year to date was due to lower production and overhead costs associated with the scale back in production.

With respect to the third 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. The decline in the RV industry appears to have leveled off. Industry shipments through August 2009 were 47% lower than the same period of 2008 however August shipments were 5% ahead of August 2008, the first increase in more than two years. Glendale sales are off 35% year to date over the same period in 2008 but are up 31% for the third quarter over the third quarter 2008. While the sales upturn is encouraging we still expect a long and slow recovery. The Corporation is debt free and has working capital of $11,517,000 including cash of $2,369,000 as at August 28, 2009."

    
    Corporate Office
    ----------------
    

Corporate office incurred expenses of $733,000 during the third quarter of 2009 compared to $419,000 during the third quarter of 2008. Year to date expenses were $1,793,000 compared to $1,820,000 for the same period in 2008. The increase relates to the restructuring costs and foreign exchange rate differences.

Consolidated Financial Results

Consolidated sales for the third quarter of 2009 were $6,300,000 compared to $20,522,000 for the third quarter of last year. Net loss for the third quarter of 2009 was $2,100,000, or $0.23 per share, compared to net loss of $2,231,000, or $0.24 per share, for the third quarter of 2008.

Consolidated sales year to date were $44,360,000 compared to $69,108,000 for the same period last year. Net loss was $6,588,000, or $0.71 per share, compared to $4,812,000, or $0.52 per share, for the same period in 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 has a significant equity 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 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, 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
                                                      August 28, November 30,
                                                           2009         2008
    -------------------------------------------------------------------------
    CURRENT ASSETS
      Cash                                               $2,369       $6,538
      Accounts receivable                                 3,753       16,358
      Income taxes receivable                                51          501
      Inventories                                         8,211       22,816
      Deposits and prepaid expenses                         151          656
    -------------------------------------------------------------------------
                                                         14,535       46,869
    Note Receivable                                       1,967        1,967
    Investment                                            7,914            -
    Accrued Benefit Asset                                 1,351        1,314
    Future Income Taxes                                     459          880
    Property, Plant and Equipment, net of
     accumulated depreciation                             1,793        9,374
    Goodwill                                                  -        4,910
    Other Intangible Assets                                   -          431
    -------------------------------------------------------------------------
                                                        $28,019      $65,745
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    CURRENT LIABILITIES
      Bank indebtedness                                       -       $2,977
      Accounts payable and accrued liabilities            3,008       14,152
      Current portion of long-term debt and
       capital leases                                        10        1,843
    -------------------------------------------------------------------------
                                                          3,018       18,972
    Long-Term Debt and Capital Leases                        10        6,121
    Deferred Gain on Sale of Property                     1,810        2,462
    -------------------------------------------------------------------------
                                                          4,838       27,555

    Non-Controlling Interest                                  -        7,397

    SHAREHOLDERS' EQUITY
      Share capital                                       1,249        1,249
      Share purchase financing                           (4,450)      (4,450)
      Contributed surplus                                 9,501       10,216
      Accumulated other comprehensive income                 15          324
      Retained earnings                                  16,866       23,454
    -------------------------------------------------------------------------
                                                         23,181       30,793
    -------------------------------------------------------------------------
                                                        $28,019      $65,745
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    GLENDALE INTERNATIONAL CORP.
    Interim Consolidated Statements of Loss
    (in thousands of dollars except per share amounts)
    (prepared without audit)
    -------------------------------------------------------------------------
                                Three Months Ended         Nine Months Ended
                            August 28,   August 29,   August 28,   August 29,
                                 2009         2008         2009         2008
    -------------------------------------------------------------------------

    Sales                      $6,300      $20,522      $44,360      $69,108
    -------------------------------------------------------------------------

    Costs and Expenses
      Manufacturing, selling
       and administration       8,125       21,342       46,928       70,150
      Research and development
       costs                        -          715        1,860        2,912
      Recovery of research and
       development costs            -            -          (50)           -
      Loss/(gain) on sale of
       property, plant and
       equipment                    -            1           (1)           1
      Amortization of deferred
       gain                      (218)        (217)        (652)        (652)
      Amortization of
       intangible assets            -            -           24            -
      Depreciation and
       amortization                97          849        1,558        2,487
      Stock based compensation     17           51           86          148
      Restructuring costs         249          117          480          325
      Foreign exchange
       loss/(gain)                 10          (65)         597          (57)
    -------------------------------------------------------------------------
                                8,280       22,793       50,830       75,314
    -------------------------------------------------------------------------
    Loss Before Undernoted     (1,980)     (2,271)      (6,470)      (6,206)
    -------------------------------------------------------------------------

    Other (Expenses)/Income
      Equity in operations of
       affiliated company        (115)           -         (115)           -
      Interest income              21          111           76          422
      Interest expense -
       long term                    -         (124)        (233)        (387)
      Interest expense -
       short term                   -          (56)         (57)        (163)
    -------------------------------------------------------------------------
                                  (94)         (69)        (329)        (128)
    -------------------------------------------------------------------------

    Loss Before Income Taxes
     and Non-Controlling
     Interest                 ($2,074)     ($2,340)     ($6,799)     ($6,334)

    (Provision for)/recovery
     of income taxes              (26)         217         (131)       1,155
    -------------------------------------------------------------------------
    Loss Before
     Non-Controlling Interest ($2,100)     ($2,123)     ($6,930)     ($5,179)
    Non-controlling interest        -         (108)         342          367
    -------------------------------------------------------------------------
    Net Loss                  ($2,100)     ($2,231)     ($6,588)     ($4,812)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Basic and Diluted Net
     Loss per Share            ($0.23)      ($0.24)      ($0.71)      ($0.52)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    GLENDALE INTERNATIONAL CORP.
    Interim Consolidated Statements of Cash Flows
    (in thousands of dollars)
    (prepared without audit)
    -------------------------------------------------------------------------
                                Three Months Ended         Nine Months Ended
                            August 28,   August 29,   August 28,   August 29,
                                 2009         2008         2009         2008
    -------------------------------------------------------------------------
    Operating Activities
      Net loss                ($2,100)     ($2,231)     ($6,588)     ($4,812)
      Items not affecting cash
        Amortization of
         deferred gain           (218)        (217)        (652)        (652)
        Depreciation and
        amortization               97          849        1,558        2,487
        Amortization of
         intangible assets          -            -           24            -
        Stock based
         compensation expense      17           51           86          148
        Future income taxes        50         (306)         181       (1,143)
        Non-controlling
         interest                   -          108         (342)        (367)
        Loss/(gain) on sale of
         property, plant and
         equipment                  -            1           (1)           1
        Increase in accrued
         benefit asset              -          (97)         (37)        (189)
        Effect of exchange
         rates on foreign
         currency denominated
         Canadian debt              -          273         (501)         245
        Equity in operations of
         affiliated company       115            -          115            -
        Changes in non-cash
         operating working
         capital                 (250)       2,093        3,353       (2,603)
    -------------------------------------------------------------------------
                               (2,289)         524       (2,804)      (6,885)


    Investing Activities
      Cash reduction on
       commencement of equity
       accounting                (527)           -         (527)           -
      Purchase of property,
       plant and equipment         (4)        (172)      (1,256)        (739)
      Proceeds on sale of
       property, plant and
       equipment                    -            -            1            -
      Restricted cash               -            -            -          201
      Acquisition of Filtran
       Microcircuits Inc.           -            -            -       (1,462)
      Share purchase financing     55           55          165          166
    -------------------------------------------------------------------------
                                 (476)        (117)      (1,617)      (1,834)

    Financing Activities
      (Decrease)/increase in
       bank indebtedness            -         (590)        (999)       2,077
      Proceeds from capital
       expenditure facility         -            -        1,667          501
      Repayment of long-term
       debt and capital leases      -         (347)        (925)        (984)
    -------------------------------------------------------------------------
                                    -         (937)        (257)       1,594
      Effect of foreign
       exchange rates on cash       -           32          509           90
    -------------------------------------------------------------------------
    Decrease in cash           (2,765)        (498)      (4,169)      (7,035)
    Cash, Beginning of Period   5,134       11,006        6,538       17,543
    -------------------------------------------------------------------------
    Cash, End of Period        $2,369      $10,508       $2,369      $10,508
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Supplemental cash flow
     information:
      Payments for interest        $1         $175         $287         $544
      Payments for income taxes     -          $75           $4          $77
      Refunds for income taxes   $176         $313         $176       $1,518



    GLENDALE INTERNATIONAL CORP.
    Segmented Information
    (in thousands of dollars)
    (prepared without audit)
    -------------------------------------------------------------------------
                                          OPERATING SEGMENTS
    -------------------------------------------------------------------------
    Three Months Ended   Recreational  Electronics    Corporate        Total
    August 28, 2009          Vehicles                    Office
    -------------------------------------------------------------------------
    Sales                      $6,300            -            -       $6,300
    Costs and expenses          7,547            -          733        8,280
    -------------------------------------------------------------------------
    Loss before undernoted     (1,247)           -         (733)      (1,980)
    Equity in operations of
     affiliated company             -            -         (115)        (115)
    Interest income                 -            -           21           21
    Income tax provision            -            -          (26)         (26)
    -------------------------------------------------------------------------
    Net loss                  ($1,247)           -        ($853)     ($2,100)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Total and identifiable
     assets                   $12,767            -      $15,252      $28,019
    Capital expenditures           $2            -           $2           $4
    Depreciation and
     amortization                 $95            -           $2          $97


    Three Months Ended
     August 29, 2008
    -------------------------------------------------------------------------
    Sales                      $4,774      $15,748            -      $20,522
    Costs and expenses          6,947       15,427          419       22,793
    -------------------------------------------------------------------------
    Loss before undernoted     (2,173)         321         (419)      (2,271)
    Interest income                 -            -          111          111
    Interest expense - long
     term                           -         (124)           -         (124)
    Interest expense - short
     term                           -          (46)         (10)         (56)
    Income tax recovery             -           39          178          217
    Non controlling interest        -         (108)           -         (108)
    -------------------------------------------------------------------------
    Net loss                  ($2,173)         $82        ($140)     ($2,231)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Total and identifiable
     assets                   $11,691      $22,722      $31,022      $65,435
    Capital expenditures          $57         $115            -         $172
    Depreciation and
     amortization                $125         $719           $5         $849
    Goodwill                        -       $4,887            -       $4,887



    GLENDALE INTERNATIONAL CORP.
    Segmented Information
    (in thousands of dollars)
    (prepared without audit)
    -------------------------------------------------------------------------
                                          OPERATING SEGMENTS
    -------------------------------------------------------------------------
    Nine Months Ended    Recreational  Electronics    Corporate        Total
    August 28, 2009          Vehicles                    Office
    -------------------------------------------------------------------------
    Sales                     $15,032      $29,328            -      $44,360
    Costs and expenses         19,391       29,646        1,793       50,830
    -------------------------------------------------------------------------
    Loss before undernoted     (4,359)        (318)      (1,793)      (6,470)
    Equity in operations of
     affiliated company             -            -         (115)        (115)
    Interest income                 -            -           76           76
    Interest expense - long
     term                           -         (233)           -         (233)
    Interest expense - short
     term                           -          (52)          (5)         (57)
    Income tax provision            -           (4)        (127)        (131)
    Non-controlling interest        -          342            -          342
    -------------------------------------------------------------------------
    Net loss                  ($4,359)       ($265)     ($1,964)     ($6,588)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Total and identifiable
     assets                   $12,767            -      $15,252      $28,019
    Capital expenditures          $43       $1,211           $2       $1,256
    Depreciation and
     amortization                $291       $1,261           $6       $1,558


    Nine Months Ended
    August 29, 2008
    -------------------------------------------------------------------------
    Sales                     $23,304      $45,804            -      $69,108
    Costs and expenses         27,394       46,100        1,820       75,314
    -------------------------------------------------------------------------
    Loss before undernoted     (4,090)       (296)       (1,820)      (6,206)
    Interest income                 -           -           422          422
    Interest expense - long
     term                           -        (387)            -         (387)
    Interest expense - short
     term                           -        (141)          (22)        (163)
    Income tax recovery             -         173           982        1,155
    Non-controlling interest        -         367             -          367
    -------------------------------------------------------------------------
    Net loss                  ($4,090)      ($284)        ($438)     ($4,812)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Total and identifiable
     assets                   $11,691     $22,722       $31,022      $65,435
    Capital expenditures         $228        $511             -         $739
    Depreciation and
     amortization                $373      $2,100           $14       $2,487
    Goodwill                        -      $4,887             -       $4,887

    

%SEDAR: 00002453E

SOURCE GLENDALE INTERNATIONAL CORP.

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; Murray Hannan, Chief Financial Officer, Glendale International Corp., (905) 844-2870, (289) 291-4001 fax, Email: mhannan@glendaleint.com

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GLENDALE INTERNATIONAL CORP.

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