Norwall Group Inc. reports first quarter end results



    BRAMPTON, ON, June 1 /CNW/ - Norwall Group Inc., one of North America's
largest manufacturers and distributors of residential wallcovering, announced
today its financial results for the quarter ended March 31, 2009.
    Sales for the first quarter of 2009 were $6,774,000, down $2,200,000 or
24.5% as compared to the same period in the previous year. The current
quarter's net loss was $1,040,000 or $(0.15) per share as compared to the net
loss of $99,000 or $0.01 per share for the comparable period last year. During
the first quarter of 2009 the Company had positive EBITDA(1) before severance
and termination payments of $348,000 as compared to $515,000 for the same
period last year. The Company continues to maintain a positive working capital
of $6,292,000 at the end of the first quarter of 2009 as compared to
$6,598,000 at year end.

    Norwall Group (TSX:NGI) manufactures quality residential wallpapers and
borders and distributes them to thousands of home centres, specialty stores
and mass merchants in Canada and through its wholly-owned operating
subsidiary, Patton Wallcoverings, in the United States.

    This Press Release contains forward-looking statements reflecting
management's current expectations regarding future results of operations,
economic performance, financial conditions, and achievements of the Company.
Actual results may differ materially from those in such statements. The
Company wishes to caution the reader that those important factors described
elsewhere in the management's discussion and analysis of operations could
affect the Company's actual results and could cause such results to materially
differ from those expressed in any forward-looking statement made by, or on
behalf of, the Company.

    (1) EBITA is not a recognized measure under Canadian generally accepted
accounting principles (GAAP). Investors should be cautioned, however, that
EBITA should not be construed as an alternative to net income (loss)
determined in accordance with GAAP as an indicator of the Company's
performance or to cash flows from operating, investing and financing
activities as a measure of liquidity and cash flows. The Company's method of
calculating EBITA may differ from other companies and, accordingly, EBITA may
not be comparable to measures used by other companies. EBITDA is calculated as
earnings before income taxes, depreciation, amortization and severance.

    
                             NORWALL GROUP INC.
                    Consolidated Statements of Operations
         (In thousands of Canadian dollars, except per share amounts)

                                                    THREE MONTHS ENDED
                                             --------------------------------
                                              March 31, 2009  March 31, 2008
                                             --------------------------------
                                                (unaudited)     (unaudited)

    Net sales from operations                  $    6,774      $    8,974
    Cost of goods sold                              4,923           6,560
                                             --------------------------------
    Gross profit                                    1,851           2,414
    Selling, general and administrative expenses    2,268           2,866
                                             --------------------------------
    Loss from operations before the undernoted
     items                                           (417)           (452)
    Severance and termination expenses                607               -
    Foreign exchange gain                            (263)           (259)
    Interest expense                                   57              59
                                             --------------------------------
    Loss fro operations before income taxes          (818)           (252)
    Provision for (recovery) of income taxes          222            (153)
                                             --------------------------------
    Loss for the period                        $   (1,040)     $      (99)
                                             --------------------------------
    Basic and diluted loss per share           $    (0.15)     $    (0.01)
                                             --------------------------------
    Weighted average number of common shares
     outstanding                                7,135,032       7,135,032
                                             --------------------------------
    

    %SEDAR: 00002584E




For further information:

For further information: (905) 791-2700, James J. Patton, President and
Chief Executive Officer, jpatton@norwallgroup.com; Edward Diochon, Vice
President of Finance, ediochon@norwallgroup.com

Organization Profile

NORWALL GROUP INC.

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