GDG Environment Group presents its financial results for the third quarter of
2009 and improves its EBITDA during the last quarter

TROIS-RIVIÈRES, QC, Nov. 25 /CNW Telbec/ - GDG ENVIRONMENT GROUP (TSXV:GDG) a Canadian recognized leader in the integrated control of biting flies, focused since 1980 in offering a broad range of environmental services targeting the improvement of quality of life and the protection of public health, today announced its financial and operating results for the three and nine months ended September 30, 2009 ("the quarter"). All amounts in this release are expressed in Canadian dollars unless otherwise indicated.

Highlights

    
    - The Company recorded an increase of 24.0% in EBITDA for the quarter
      ended September 30, 2009 compared to an EBITDA of 21.4% for the same
      quarter of 2008.

    - In the last quarter, the Group's strategy to expand its services to
      municipalities has materialized into many contracts awarded for the
      ecological control of ragweed.

    Financial results - three-month period ended September 30, 2009

    - Operating expenses have decreased by 10.5%, or $658,065, for the three-
      month period ended September 30, 2009 compared to $735,484 for the same
      quarter in 2008. Non recurring charges helped reduce the expenditure
      for the quarter ended September 30, 2009 compared to the same period in
      2008.

    - Sales totalled $2,967,148 for the three-month period ended September
      30, 2009 compared to $3,029,393 for the corresponding period in 2008,
      being a decrease of 2.1 %. The reduction in sales for the three-month
      period ended September 30, 2009 is due to current financial markets
      bringing pressure on prices resulting from a tighter business
      environment. The contracts related to ragweed's control over the last
      three-month period have reduced the impact on sales reduction.

    - For the three-month period ended September 30, 2009, gross margin was
      established to $1,115,446 compared to $1,171,833 for the same period a
      year earlier. It represents 37.6% of the sales compared to 38.7% for
      the same quarter in 2008.

    - The Company recorded, for the three-month period ended September 30,
      2009, an EBITDA of $713,523 (24.0%) compared to $648,638 (21.4%) for
      the three-month period ended September 30, 2008. It represents an
      improvement over the quarter mainly due to lower sales and
      administrative costs.

    - Net income is at $314,693, or $0.01 per share, for the three-month
      period ended in September 30, 2009 compared to net income of $291,464
      for the same period in 2008. There was an increase in quarterly net
      earnings compared to the same period last year despite the decrease in
      revenues and increased financial expenses.

    Financial results - nine-month period ended September 30, 2009

    - Sales totalled $6,731,367 for the nine-month period ended September 30,
      2009 compared to $7,182,599 for the corresponding period in 2008, being
      a decrease of 6.3%. The reduction in sales for the nine-month period is
      due to current financial markets bringing pressure on prices resulting
      from a tighter business environment.

    - For the nine-month period ended September 30, 2009, the gross margin
      was $2,315,382 compared to $2,358,795 for the same period a year
      earlier. A reduction of material resources, and the use of GPS (Global
      Positionning System) technology throughout operations, has resulted in
      an improvement of gross margin being at 34.4% during the last three
      quarters of 2009 compared to 32.8% during the same quarters in 2008.

    - For the nine-month period ended in September 30, 2009, the Company
      recorded net earnings of $109,792 compared to net earnings of $996,306
      for the same period in 2008. The decrease in net earnings as at
      September 30, 2009, compared to the same period last year, is due to
      the decrease in revenues, increased financial costs and professional
      expenses related to maintaining a public company. It is also linked to
      the deployment of human resources in the research and development of
      new market niches and for international development.


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                                      GDG ENVIRONMENT GROUP LTD.
                                   DATA EXTRACTED FROM CONSOLIDATED
                                 FINANCIAL STATEMENTS - BALANCE SHEET
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (In thousands         For the three-month           For the nine-month
     of dollars)             period ending                 period ending
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                         September     September     September     September
                          30, 2009      30, 2008      30, 2009      30, 2008
                        (unaudited)   (unaudited)   (unaudited)   (unaudited)
                       ------------------------------------------------------
                       ------------------------------------------------------
                                 $             $             $             $
    -------------------------------------------------------------------------
    Sales                    2,967         3,029         6,731         7,183
    -------------------------------------------------------------------------
    Cost of sales            1,852         1,857         4,416         4,824
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Gross margin             1,115         1,172         2,315         2,359
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Selling and
     administrative
     expenses                  384           518         1,288         1,247
    -------------------------------------------------------------------------
    Research and
     Development                18             5            91            26
    -------------------------------------------------------------------------
    EBIDTA(1)                  713           649           936         1,086
    -------------------------------------------------------------------------
    Financial charges          180           144           523           270
    -------------------------------------------------------------------------
    Depreciation of
     fixed assets               76            68           220           194
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Total operating
     expenses                  658           735         2,122         1,737
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Earning before the
     following items:          457           437           193           622
    -------------------------------------------------------------------------
    Other revenue
     (expenses)                (12)           (5)          (26)          589
    -------------------------------------------------------------------------
    Earnings before
     income tax                445           432           167         1,211
    -------------------------------------------------------------------------
    Income taxes
     (recovered)               131           140            57           215
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Net earnings               314           292           110           996
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Net earnings
     per share - Basic
     (note 11)                0.01          0.00          0.00          0.02
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Net earnings
     per share - Diluted      0.01          0.00          0.00          0.01
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Weighted average
     number of shares
     outstanding        59,621,685    59,621,685    59,621,685    54,944,981
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    (1) The Company uses only one financial measure that is not consistent
    with Canadian GAAP, namely earnings before interest, income taxes,
    depreciation and amortization (EBITDA). Such a measure is used because
    management believes that it provides meaningful information about the
    Company's performance and operating results. Such a non-GAAP measure has
    no standardized meaning as prescribed by GAAP and is not necessarily
    comparable to similarly titled measures presented by other companies.
    Accordingly, it should not be considered independently of other figures.

    (note 11) Financial statements at September 30, 2009
    

About GDG Environment Group (www.groupegdg.com)

Since 1980, GDG Environment Group, a recognized Canadian leader in the integrated control of biting flies, offers a broad range of services targeting the improvement of quality of life and the protection of public health, mainly through the biological control of biting flies, vector control and the surveillance and prevention of West Nile Virus in Canada.

GDG Environment Group operates 3 divisions: GDG Environnement, front-runner in the biological control of biting flies and vector control, GDG Aviation which manages all aerial operations for the Group and Diamond Sylvico, a Northern Quebec subsidiary, firmly established in the Cree Community of Waskaganish (James Bay territory).

The Group markets its expertise throughout the country and has a strong team of scientists and managers plus a team of nearly 200 professionals and technicians in the summer. The Group is established as the most important player in Canada, after more than 500 successful mandates in the field of biological control of biting flies and in the management of disease vectors.

The Company's financial statements for the three-month period ended September 30, 2009, along with management's discussion and analysis are available on www.sedar.com and on www.groupegdg.ca.

Listed on the TSX Venture Exchange since April 2008, the shares of GDG Environment Group are traded under the ticker "GDG" - (TSX VENTURE: GDG).

Forward-looking statements

This press release contains forward-looking statements which reflect GDG Environment Group's current expectations regarding future events. Those statements involve known and unknown risks and uncertainties, which could cause the Company's actual results, performance and achievements to differ materially from those in the forward-looking statements. GDG Environment Group disclaims any obligation to update these forward-looking statements.

    
    The TSX Venture Exchange Inc. does not accept responsibility for the
    adequacy or accuracy of this press release.
    

SOURCE GDG ENVIRONMENT GROUP LTD.

For further information: For further information: Isabelle Martin, Vice President, Operations and Chief of Finances, GDG Environment Group Ltd., isabelle.martin@gdg.ca; Renmark Financial Communications Inc.: Maurice Dagenais, mdagenais@renmarkfinancial.com; Jason Roy, jroy@renmarkfinancial.com; (514) 939-3989, (416) 644-2020; www.renmarkfinancial.com

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GDG ENVIRONMENT GROUP LTD.

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