Glendale International reports third quarter results



    Toronto Stock Exchange Symbol: GIN

    OAKVILLE, ON, Oct. 15 /CNW/ - Glendale International Corp. (TSX: GIN)
today reported financial results for the third quarter ended August 31, 2007.

    Financial Results

    Consolidated sales from continuing operations for the third quarter were
$28.3 million compared to $32.5 million for the third quarter of last year.
Net loss from continuing operations for the third quarter was $771,000, or
$0.06 per share, compared to a net loss of $637,000, or $0.05 per share, for
the third quarter of 2006. Including earnings from discontinued operations net
of income taxes, net earnings for the third quarter were $13.2 million, or
$1.06 per share, compared to net earnings of $62,000, or $0.01 per share for
the third quarter of 2006.
    Consolidated sales from continuing operations for the first nine months
of fiscal 2007 were $98.2 million compared with $107.1 million for the
corresponding period of 2006. Net loss from continuing operations for the
first nine months of 2007 was $475,000, or $0.04 per share, compared to net
earnings of $144,000 or $0.01 per share for the same period last year.
Including earnings from discontinued operations net of income taxes, net
earnings for the first nine months of fiscal 2007 were $15.3 million, or $1.22
per share, compared to net earnings of $1.9 million, or $0.16 per share for
the same period last year.
    As of August 31, 2007, Glendale had working capital relating to its
continuing operations of $45.4 million, including cash and cash equivalents
and restricted cash of $24.9 million, compared to working capital relating to
its continuing operations of $15.9 million, including bank indebtedness net of
cash and cash equivalents of $3.8 million, on September 1, 2006.

    Recreational Vehicles (Glendale RV and Travelaire Canada)

    Sales for the Recreational Vehicles business for the quarter decreased
23.6% to $14.4 million from $18.8 million for the same period in 2006.
Operating loss for the quarter was $538,000 compared to an operating loss of
$166,000 for the same period in 2006. The decrease in sales and increase in
operating loss was primarily due to the continued strengthening of the
Canadian dollar against the US currency.
    "The significant appreciation of the Canadian dollar continues to have a
negative impact on our Recreational Vehicle Business. In response, we reduced
costs and increased our product differentiation. In spite of the currency
issues, we continue to believe in the long term growth potential of the
Recreational Vehicle business. We have made significant progress in
restructuring the company resulting in an extraordinarily strong Balance
Sheet. Excluding Glendale's subsidiary Firan Technology Group Corporation,
Glendale had working capital relating to its continuing operations of $33.6
million, including cash and cash equivalents of $24.6 million, and no debt on
August 31, 2007. With these resources at hand, we will continue to work
towards solutions which return us to profitability irrespective of currency
exchange rates" said Edward C. Hanna, Chief Executive Officer and Chairman,
Glendale International Corp.

    Electronics (Firan Technology Group Corporation)

    Sales for Firan Technology Group Corporation (TSX: FTG) for the third
quarter increased 1.6% to $13.9 million from $13.7 million for the same period
in 2006. The Circuit division sales for the third quarter were down 1.3% over
the same period last year as a result of weak market conditions in printed
circuit boards and the strengthening Canadian dollar. The Aerospace division
sales increased during the third quarter over the same quarter last year by
13.8% due to strong customer demand.
    Operating loss for the third quarter was $127,000 compared to operating
income of $434,000 the prior year. The decrease in operating income is a
result of the strengthening Canadian dollar combined with increasing industry
pricing pressure and increasing material costs.
    "In spite of the external pressures facing the business and the continued
strengthening of the Canadian dollar both during and subsequent to the quarter
end, we are pleased with our overall performance. While these factors have
impacted our financial results, we are taking steps to offset them through
investments in critical production equipment and process," commented Brad
Bourne, President and CEO, FTG Corporation. He added, "Our focus on the
aerospace and defence market continues to prove to be a good decision, as this
market has been robust and looks strong into the future. Our strong sales team
continues to position FTG favourably on a number of key new accounts and
programs."

    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 owns growth businesses in the recreational vehicles and
electronics industries, 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.
    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 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
                                      ---------------------------------------
                                       August 31,  November 30,  September 1,
    CURRENT ASSETS                          2007          2006          2006
                                      ---------------------------------------
      Cash and cash equivalents        $  22,710     $   2,348     $   2,531
      Restricted cash                      2,210             -             -
      Accounts receivable                 14,321        14,807        13,756
      Income taxes recoverable             1,343           924           255
      Inventories                         19,722        19,533        18,085
      Deposits and prepaid expenses          637           879           986
      Property held for sale                   -             -         2,476
      Future income taxes                    276           377           537
      Current assets of discontinued
       operations                              -        14,281        13,090
    -------------------------------------------------------------------------
                                          61,219        53,149        51,716
    Notes Receivable                       1,967         2,395         1,967
    Future Income Taxes                    2,359         1,940         1,282
    Property, Plant and Equipment
     (net of accumulated
     depreciation)                         9,862         9,287         8,798
    Goodwill                               4,392         4,876         4,876
    -------------------------------------------------------------------------
                                       $  79,799     $  71,647     $  68,639
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    CURRENT LIABILITIES
      Bank indebtedness                        -     $     597     $   6,381
      Accounts payable and accrued
       liabilities                        14,243        17,084        14,416
      Income taxes payable                   187             -             8
      Current portion of long-term
       debt and capital leases             1,348           995         1,871
      Current liabilities of
       discontinued operations                 -         4,480         4,272
    -------------------------------------------------------------------------
                                          15,778        23,156        26,948
    Long-Term Debt and Capital Leases      6,157         5,584         5,555
    Deferred Gain on Sale of Property      3,551         4,214             -
    Future Income Taxes                      774            49            49
    Non-Controlling Interest               9,471         9,109         8,595
    -------------------------------------------------------------------------
                                          35,731        42,112        41,147
    -------------------------------------------------------------------------

    SHAREHOLDERS' EQUITY
      Share capital                        1,249         1,249         1,249
      Contributed surplus                  9,251         9,123         9,073
      Accumulated other comprehensive
       (loss)/income                        (578)          301          (761)
      Retained earnings                   34,146        18,862        17,931
    -------------------------------------------------------------------------
                                          44,068        29,535        27,492
    -------------------------------------------------------------------------
                                       $  79,799     $  71,647     $  68,639
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    GLENDALE INTERNATIONAL CORP.
    Interim Consolidated Statements of Earnings
    (in thousands of dollars except per share amounts)
    (prepared without audit)
    -------------------------------------------------------------------------
                              Three Months Ended         Nine Months Ended
                           ------------------------  ------------------------
                            August 31, September 1,   August 31, September 1,
                                 2007         2006         2007         2006
                           ------------------------  ------------------------
    Sales                   $  28,303    $  32,520    $  98,234    $ 107,138
                           ------------------------  ------------------------

    Costs and Expenses
      Manufacturing, selling
       and administration      29,283       32,236       96,158      103,310
      Impairment of property
       held for sale                -            -            -          561
      Loss/(gain) on sale
       of property, plant
       and equipment                7            -            7           (3)
      Depreciation and
       amortization               840          891        2,558        2,756
    -------------------------------------------------------------------------
                               30,130       33,127       98,723      106,624
    -------------------------------------------------------------------------
    (Loss)/Earnings Before
     Undernoted                (1,827)        (607)        (489)         514
    -------------------------------------------------------------------------

    Other Income (Expenses)
      Interest income             420           41          526          107
      Interest expense
       - long term               (167)        (186)        (530)        (472)
      Interest expense
       - short term                (8)        (157)         (25)        (576)
    -------------------------------------------------------------------------
                                  245         (302)         (29)        (941)
    -------------------------------------------------------------------------

    Loss Before Income
     Taxes, Non-Controlling
     Interest and
     Discontinued
     Operation             ($   1,582)  ($     909)  ($     518)  ($     427)

    Recovery of income taxes     (709)        (441)        (405)      (1,070)
    -------------------------------------------------------------------------
    (Loss)/Earnings Before
     Non-Controlling
     Interest and
     Discontinued
     Operations            ($     873)  ($     468)  ($     113)   $     643
    Non-controlling
     interest                     102         (169)        (362)        (499)
    -------------------------------------------------------------------------
    (Loss)/Earnings
     from Continuing
     Operations            ($     771)  ($     637)  ($     475)   $     144
    Earnings from
     discontinued operations,
     net of income taxes       13,992          699       15,759        1,798
    -------------------------------------------------------------------------
    Net Earnings            $  13,221    $      62    $  15,284    $   1,942
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Basic and Diluted Net
     Earnings per Share
     from Continuing
     Operations            ($    0.06)  ($    0.05)  ($    0.04)   $    0.01
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Basic and Diluted Net
     Earnings per Share     $    1.06    $    0.01    $    1.22    $    0.16
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    GLENDALE INTERNATIONAL CORP.
    INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
    (in thousands of dollars)
    (prepared without audit)

                                Three Months Ended         Nine Months Ended
    -------------------------------------------------------------------------
                            August 31, September 1,   August 31, September 1,
                                 2007         2006         2007         2006
    -------------------------------------------------------------------------
    Operating Activities
      Net (loss)/earnings
       from continuing
       operations          ($     771)  ($     637)  ($     475)   $     144
      Items not affecting
       cash
        Amortization of
         deferred gain           (224)           -         (663)           -
        Depreciation and
         amortization             840          891        2,558        2,756
        Stock based
         compensation
         expense                   39           54          128          150
        Future income taxes       795         (134)         403         (718)
        Non-controlling
         interest                (102)         169          362          499
        Impairment of
         property held
         for sale                   -            -            -          561
        Loss/(gain) on sale
         of property, plant
         and equipment              7            -            7           (3)
        Effect of exchange
         rates on foreign
         currency
         denominated
         Cdn debt                 (19)         192         (237)         203
        Changes in non-cash
         operating working
         capital                 (396)       1,237       (2,241)      (5,242)
    -------------------------------------------------------------------------
                                  169        1,772         (158)      (1,650)

    Discontinued operations    (5,879)         658       (1,237)       2,787

    Investing Activities
      Purchase of property,
       plant and equipment     (1,187)        (481)      (3,275)      (1,959)
      Proceeds on sale of
       property, plant and
       equipment                    8        2,409            8        2,418
      Restricted cash          (2,210)           -       (2,210)           -
    -------------------------------------------------------------------------
                               (3,389)       1,928       (5,477)         459

    Discontinued operations    28,388         (168)      26,464        2,791

    Financing Activities
      Decrease in bank
       indebtedness                 -       (1,590)        (597)        (125)
      New term financing            -        6,819            -        6,819
      Proceeds from capital
       expenditure facility     1,054            -        2,115            -
      Repayment of long-term
       debt and capital
       leases                    (243)      (7,889)        (735)     (10,738)
    -------------------------------------------------------------------------
                                  811       (2,660)         783       (4,044)

      Effect of foreign
       exchange rates
       on cash                    270           55          (13)         137
    -------------------------------------------------------------------------
    Increase in cash and
     cash equivalents          20,370        1,585       20,362          480
    Net Cash and Cash
     Equivalents, Beginning
     of Period                  2,339          947        2,348        2,051
    -------------------------------------------------------------------------
    Net Cash and Cash
     Equivalents, End
     of Period              $  22,710    $   2,531    $  22,710    $   2,531
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Supplemental disclosures
     of cash flows:
      Payments for
       interest             $     172            -    $     454    $     819
      Payments for income
       taxes                        -            -    $      30    $     343
      Refunds of income
       taxes                $     611            -    $     611    $      14



    GLENDALE INTERNATIONAL CORP.
    Segmented Information
    (in thousands of dollars)
    (prepared without audit)
    -------------------------------------------------------------------------
                                      OPERATING SEGMENTS
    -------------------------------------------------------------------------
    Three Months
     Ended         Recrea-
     August 31,    tional             Electro-            Corporate
     2007         Vehicles  Nav Aids    nics       Other    Office     Total
    -------------------------------------------------------------------------
    Sales         $ 14,408         -  $ 13,895         -         -  $ 28,303
    Costs and
     expenses       14,946         -    14,022         -     1,162    30,130
    -------------------------------------------------------------------------
    Loss before
     undernoted       (538)        -      (127)        -    (1,162)   (1,827)
    Interest income      -         -         -         -       420       420
    Interest
     expense -
     long term           -         -      (153)        -       (14)     (167)
    Interest
     expense -
     short term          -         -         -         -        (8)       (8)
    Income tax
     recovery            -         -        98         -       611       709
    Non-controlling
     interest            -         -       102         -         -       102
    -------------------------------------------------------------------------
    Loss from
     continuing
     operations       (538)        -       (80)        -      (153)     (771)
    Earnings from
     discontinued
     operation, net
     of income
     taxes               -    15,925         -         -    (1,933)   13,992
    -------------------------------------------------------------------------
    Net
     earnings        ($538) $ 15,925      ($80)        -   ($2,086) $ 13,221
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Total and
     identifiable
     assets       $ 17,941         -  $ 24,440         -  $ 37,418  $ 79,799
    Capital
     expenditures $     31         -  $  1,156         -         -  $  1,187
    Depreciation
     and
     amortization $    111         -  $    724         -  $      5  $    840
    Goodwill             -         -  $  4,392         -         -  $  4,392


    Three Months
     Ended
     September 1,
     2006
    -------------------------------------------------------------------------
    Sales         $ 18,850         -  $ 13,670         -         -  $ 32,520
    Costs and
     expenses       19,016         -    13,236         -       875    33,127
    -------------------------------------------------------------------------
    Loss before
     undernoted       (166)        -       434         -      (875)     (607)
    Interest income      -         -         -         -        41        41
    Interest
     expense -
     long term           -         -      (129)        -       (57)     (186)
    Interest
     expense -
     short term          -         -         -         -      (157)     (157)
    Income tax
     recovery            -         -        (6)        -       447       441
    Non-controlling
     interest            -         -      (169)        -         -      (169)
    -------------------------------------------------------------------------
    Loss from
     continuing
     operations       (166)        -       130         -      (601)     (637)
    Earnings from
     discontinued
     operations,
     net of
     income taxes        -       733         -       (34)        -       699
    -------------------------------------------------------------------------
    Net earnings     ($166) $    733  $    130      ($34)    ($601) $     62
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Total and
     identifiable
     assets       $ 19,950         -  $ 21,214  $     10  $ 27,465  $ 68,639
    Capital
     expenditures $     80         -  $    401         -         -  $    481
    Depreciation
     and
     amortization $    104         -  $    781         -  $      6  $    891
    Goodwill             -         -  $  4,876         -         -  $  4,876



                                      OPERATING SEGMENTS
    -------------------------------------------------------------------------
    Nine Months
     Ended         Recrea-
     August 31,    tional             Electro-            Corporate
     2007         Vehicles  Nav Aids    nics       Other    Office     Total
    -------------------------------------------------------------------------
    Sales         $ 55,165         -  $ 43,069         -         -  $ 98,234
    Costs and
     expenses       54,817         -    41,636         -     2,270    98,723
    -------------------------------------------------------------------------
    Loss before
     undernoted        348         -     1,433         -    (2,270)     (489)
    Interest income      -         -         -         -       526       526
    Interest
     expense -
     long term           -         -      (426)        -      (104)     (530)
    Interest
     expense -
     short term          -         -         -         -       (25)      (25)
    Income tax
     recovery            -         -      (365)        -       770       405
    Non-controlling
     interest            -         -      (362)        -         -      (362)
    -------------------------------------------------------------------------
    Loss from
     continuing
     operations        348         -       280         -    (1,103)     (475)
    Earnings from
     discontinued
     operation,
     net of
     income taxes        -    17,692         -         -    (1,933)   15,759
    -------------------------------------------------------------------------
    Net earnings  $    348  $ 17,692  $    280         -   ($3,036) $ 15,284
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Total and
     identifiable
     assets       $ 17,941         -  $ 24,440         -  $ 37,418  $ 79,799
    Capital
     expenditures $    284         -  $  2,977         -  $     14  $  3,275
    Depreciation
     and
     amortization $    329         -  $  2,211         -  $     18  $  2,558
    Goodwill             -         -  $  4,392         -         -  $  4,392


    Nine Months
     Ended
     September 1,
     2006
    Sales         $ 65,341         -  $ 41,797         -         -  $107,138
    Costs and
     expenses       63,112         -    40,623         -     2,889   106,624
    -------------------------------------------------------------------------
    Earnings
     before
     undernoted      2,229         -     1,174         -    (2,889)      514
    Interest income      -         -         -         -       107       107
    Interest
     expense -
     long term           -         -      (348)        -      (124)     (472)
    Interest
     expense -
     short term          -         -         -         -      (576)     (576)
    Income tax
     recovery            -         -        59         -     1,011     1,070
    Non-controlling
     interest            -         -      (499)        -         -      (499)
    -------------------------------------------------------------------------
    Earnings from
     continuing
     operations      2,229         -       386         -    (2,471)      144
    Earnings from
     discontinued
     operations,
     net of
     income taxes        -     1,941         -      (143)        -     1,798
    -------------------------------------------------------------------------
    Net earnings  $  2,229  $  1,941  $    386     ($143)  ($2,471) $  1,942
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Total and
     identifiable
     assets       $ 19,950         -  $ 21,214  $     10  $ 27,465  $ 68,639
    Capital
     expenditures      246         -     1,694         -        19  $  1,959
    Depreciation
     and
     amortization $    376         -  $  2,342         -  $     38  $  2,756
    Goodwill             -         -  $  4,876         -         -  $  4,876
    





For further information:

For further information: Edward C. Hanna, Chief Executive Officer and
Chairman, Glendale International Corp., (905) 844-2870, (905) 844-2907 fax,
Email: ehanna@glendaleint.com; Brian Jennings, Chief Financial Officer,
Glendale International Corp., (905) 844-2870, (905) 844-2907 fax, Email:
bjennings@glendaleint.com

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GLENDALE INTERNATIONAL CORP.

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