Following the Sale of Two Divisions to Concentrate on its Core Business, GBO
Inc. Closes the Second Quarter with Net Earnings of $3.5 Million and a
Virtually Debt-Free Balance Sheet
STE-MARIE DE BEAUCE, QC,
GBO recorded operating earnings before amortization, interest and income taxes (or EBITDA) of
During the six-month period ended
Furthermore, thanks to the
Outlook -------
Management is cautious as to GBO's outlook for fiscal 2010, as demand remains weak and volatile while competition is fierce, especially in the
GBO expects its profit margins to benefit from the increased added value of Bonneville's sales mix as a result of its focus on wood products, the continuing organizational restructuring and the ongoing operational optimization efforts aimed at further lowering the Company's breakeven point. Having optimized its overall operations in recent years, GBO's organization is now structured to be competitive and profitable in a normal market context.
Over the short, medium and long term, GBO's key objectives are to grow its sales and alleviate the seasonal cycle of its business, notably through the targeted development of markets along the U.S. East Coast where it expects to achieve more than half of its sales on an annualized basis. To this end, GBO broadened its representation in the Southeastern
Profile -------
Founded in 1946, GBO Inc. is an important Canadian window and door manufacturer. The Company designs, develops, manufactures, markets and distributes a selection of mid-range and high-end energy-efficient wood window arrangements, doors and accessories, sold primarily under the "Bonneville" and "Polar" brands. Recently, GBO launched a line of innovative fenestration products resistant to hurricanes and other impacts. The Company sells its windows and doors to the home improvement and construction markets in
The statements set forth in this press release that describe GBO's objectives, projections, estimates, expectations or forecasts may constitute forward-looking statements within the meaning of securities legislation. GBO would like to point out that, by their very nature, forward-looking statements involve a number of risks and uncertainties such that actual results or the measures it adopts could therefore differ materially from those indicated or underlying these forward-looking statements, or could have an impact on the degree of realization of a particular projection. There can be no assurance as to the materialization of the results, performance or achievements as expressed or implied by the forward-looking statements. Unless required to do so pursuant to applicable securities legislation, GBO's management assumes no obligation as to the updating or revision of the forward-looking statements as a result of new information, future events or other changes.
The TSX Venture Exchange accepts no responsibility for the adequacy or accuracy of this press release. This press release contains forward-looking statements based on the Company's the current outlook regarding the future. Such information involves a number of risks, uncertainties and assumptions. Actual results and events could differ materially from those indicated or underlying the forward-looking statements.
CONSOLIDATED EARNINGS AND COMPREHENSIVE INCOME Period ended August 31, 2009 (unaudited) (in thousands of dollars, except per share amounts) Three months Six months ------------------------ ------------------------- 2009 2008 2009 2008 ------------- ----------- ----------- ------------ $ $ $ $ Sales 11,251 17,571 20,924 29,805 Cost of sales and operating expenses 10,724 16,651 21,437 29,195 ------------- ----------- ----------- ------------ Operating income (loss) before the following items 527 920 (513) 610 ------------- ----------- ----------- ------------ Depreciation of fixed assets 317 387 712 769 Amortization of intangible assets 34 37 69 69 Amortization of deferred charges 24 13 42 13 Gain on disposal of fixed assets (5) - (8) - Interest on long-term debt 1 3 2 5 Other financial expenses 4 (16) 217 58 ------------- ----------- ----------- ------------ 375 424 1,034 914 - - - - - - - - - - - - - - - - - - - - - - - - Earnings (loss) before unusual item and income taxes 152 496 (1,547) (304) Unusual item 4,715 - 4,715 - ------------- ----------- ----------- ------------ Earnings (loss) before income taxes 4,867 496 3,168 (304) Future income taxes 1,337 160 878 (97) ------------- ----------- ----------- ------------ Net earnings (net loss) and comprehensive income 3,530 336 2,290 (207) ------------- ----------- ----------- ------------ ------------- ----------- ----------- ------------ Earnings (loss) per share and diluted earnings (loss) per share 0.11 0.01 0.07 (0.01) ------------- ----------- ----------- ------------ ------------- ----------- ----------- ------------ Weighted average number of common shares outstanding 32,676,569 32,676,569 32,676,569 32,676,569 CONSOLIDATED DEFICIT Period ended August 31, 2009 (unaudited) (in thousands of dollars) Three months Six months ------------------------ ------------------------- 2009 2008 2009 2008 ------------- ----------- ----------- ------------ $ $ $ $ Deficit beginning of period (26,218) (24,085) (24,978) (23,542) Net earnings (net loss) 3,530 336 2,290 (207) ------------- ----------- ----------- ------------ Deficit, end of period (22,688) (23,749) (22,688) (23,749) ------------- ----------- ----------- ------------ ------------- ----------- ----------- ------------ CONSOLIDATED CASH FLOWS Period ended August 31, 2009 (unaudited) (in thousands of dollars) Three months Six months ------------------------ ------------------------- 2009 2008 2009 2008 ------------- ----------- ----------- ------------ $ $ $ $ OPERATING ACTIVITIES Net earnings (net loss) 3,530 336 2,290 (207) Non-cash items Unusual item (4,715) - (4,715) - Gain on disposal of fixed assets (5) - (8) - Depreciation of fixed assets 317 387 712 769 Amortization of intangible assets and deferred charges 58 50 111 82 Stock-based compensation expense 4 4 7 6 Future income taxes 1,337 160 878 (97) Changes in working capital items 985 (1,151) 360 (3,847) ------------- ----------- ----------- ------------ Cash flows from operating activities 1,511 (214) (365) (3,294) ------------- ----------- ----------- ------------ INVESTING ACTIVITIES Cash proceeds on the disposal of assets, net of related charges 10,503 - 10,503 - Fixed assets (52) (165) (158) (395) Disposal of fixed assets 20 - 25 - Note receivable 100 118 176 168 Intangible assets & deferred charges - (6) 24 (11) ------------- ----------- ----------- ------------ Cash flows from investing activities 10,571 (53) 10,570 (238) ------------- ----------- ----------- ------------ FINANCING ACTIVITIES Bank loan (6,211) 1,444 (3,658) 4,866 Repayment of long-term debt (7) 3 (33) (10) ------------- ----------- ----------- ------------ Cash flows from financing activities (6,218) 1,447 (3,691) 4,856 ------------- ----------- ----------- ------------ Net increase in cash and cash equivalents 5,864 1,180 6,514 1,324 Cash and cash equivalents, beginning of period 1,200 431 550 287 ------------- ----------- ----------- ------------ Cash and cash equivalents, end of period 7,064 1,611 7,064 1,611 ------------- ----------- ----------- ------------ ------------- ----------- ----------- ------------ CASH AND CASH EQUIVALENTS Cash 2,064 1,611 2,064 1,611 Term deposit 5,000 - 5,000 - ------------- ----------- ----------- ------------ 7,064 1,611 7,064 1,611 ------------- ----------- ----------- ------------ ------------- ----------- ----------- ------------ CONSOLIDATED BALANCE SHEET (in thousands of dollars) August 31, 2009 February 28, 2009 ------------------ ------------------- $ $ ASSETS (unaudited) Current assets Cash 2,064 550 Term deposit 5,000 - Accounts receivable 5,562 3,830 Income taxes receivable 103 103 Inventories 2,496 4,045 Prepaid expenses and other 399 517 Current portion of note receivable 1,356 356 ------------------ ------------------- 16,980 9,401 Note receivable 1,356 1,532 Fixed assets 9,028 13,938 Fixed assets held for sale 813 831 Intangible assets 387 471 Deferred charges 171 238 Future income taxes 2,198 3,076 ------------------ ------------------- 30,933 29,487 ------------------ ------------------- ------------------ ------------------- LIABILITIES Current liabilities Bank loan - 3,658 Accounts payable 8,554 5,806 Instalments on long-term debt 38 13 ------------------ ------------------- 8,592 9,477 Long-term debt 51 17 ------------------ ------------------- 8,643 9,494 ------------------ ------------------- SHAREHOLDER'S EQUITY Capital stock 44,526 44,526 Contributed surplus 452 445 Deficit (22,688) (24,978) ------------------ ------------------- 22,290 19,993 ------------------ ------------------- 30,933 29,487 ------------------ ------------------- ------------------ -------------------
For further information: For further information: Christopher M. Wood, Chairman of the Board and Chief Executive Officer, (418) 387-7723; Source: GBO Inc.
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