TORONTO, Aug. 7, 2012 /CNW/ - General Donlee Canada Inc. ("General Donlee" or the "Company") (TSX: GDI) today announced its results for the second quarter ended June 30, 2012. The Board has declared a quarterly dividend of 8.25 cents per common share payable on October 15, 2012 to holders of record at the close of business on September 28, 2012.
Financial highlights relating to General Donlee's second quarter 2012:
- Sales of $14.2 million, up 18% compared to Q2 2011
- Gross Profit of $3.8 million, up 32% compared to Q2 2011
- Net Income before other gains, losses and income taxes of $1.8 million, up 84% compared to Q2 2011
- Record backlog of $63.8 million at June 30, 2012, 19% higher than in Q2 2011
- Quarterly dividend of 8.25 cents per share paid to shareholders on July 16, 2012
Continuing growth in sales and positive cash flow from operations
"General Donlee's 18% increase in sales in the second quarter over the comparable period last year continues to reflect strong fundamentals in the industries we serve and our ability to grow our business with current and new customers. As a result, in the second quarter we generated $2.2 million of positive cash flow from operations before changes in working capital and net of interest expenses, and paid out $0.88 million in quarterly dividends to shareholders" said the Company's President and Chief Executive Officer, Garen Mikirditsian.
"At June 30, 2012, our production order backlog was at a record level of $63.8 million, up 46% over the last 3 years, and representing an important milestone in the Company's 47-year history that reflects the confidence our customers have in the Company's ability to consistently deliver product of the highest quality," said Mr. Mikirditsian. "We expect demand to remain robust."
Increase in Gross Profit
Gross profit for the quarter was 32% higher than in the comparable period in 2011, mainly due to higher sales volumes and reflecting the impact of the Company's continuous improvement initiatives. "Our strong gross profit for the quarter reflects our positive top line performance but also is evidence of careful management of our costs", said Mr. Mikirditsian.
Net Income before other gains, losses and income taxes
Net income before other gains, losses and income taxes for the quarter was $1.8 million, representing a 18% increase over the comparable period in 2011.
The following summary of financial data presents General Donlee's consolidated results of operations for the three-month and six-month periods ended June 30, 2012, including comparative results for the same periods in 2011.
|($ millions, except per Share amounts)||Three Months Ended||Six Months Ended|
|June 30/12||June 30/11||June 30/12||June 30/11|
| Net income before other gains,
losses and income taxes
|Basic income per share||$0.068(a)||$0.108(b)||$0.217(c)||$0.230(b)|
|(a)||Based on weighted average of 10,644,830 shares outstanding.|
|(b)||Based on weighted average of 10,664,634 shares outstanding.|
|(c)||Based on weighted average of 10,645,668 shares outstanding.|
General Donlee had sales of $28.3 million for the first half of 2012 - an increase of $3.7 million, or 15%, over its sales in the same period in 2011. Sales in the Company's aerospace and power generation products division during the first six month period ended June 30, 2012 were $17.0 million - up by 13%, or $2.0 million, over the comparable period in 2011. General Donlee's specialty precision products division's sales during the same period were $11.3 million, an increase of $1.7 million or 18% over the same period last year.
Excluding the impact of non-recurring items in both comparable periods, the Company's net income before other gains, losses and income taxes during the six months ended June 30, 2012 quarter was $3.7 million, up 76% compared to $2.1 million during the same period in 2011.
The Company's net income during the six months ended June 30, 2012 was $2.3 million, compared to net income of $2.5 million during the same period in the previous year.
Appointment of Interim Chief Financial Officer
General Donlee announces the appointment of Gerald Thain as Interim Chief Financial Officer until the engagement of a permanent Chief Financial Officer.
The Company continues to see strong demand from customers and healthy fundamentals in the end markets it serves. "Our record production backlog of $63.8 million is evidence of the confidence our customers have in the Company's ability to consistently deliver product of the highest quality," said Chief Executive Officer and Interim Chief Financial Officer, Garen Mikirditsian.
The Company expects demand for its services to remain robust. "We are experiencing important quoting activity across many markets and particularly within the commercial aircraft industry", said Mr. Mikirditsian. "We are also making investments in capital equipment and have been growing our skilled workforce steadily to accommodate increasing demand from our customers, while ensuring we continue to provide them with excellent service."
General Donlee's outlook for sustainable and profitable growth is also grounded in its focus on continuous improvement. "We continue to implement operational improvement initiatives at both Donlee Precision and General Gear, and we note in particular the upgrade of our enterprise resource systems this quarter," added Mr. Mikirditsian. "Operational excellence is key to our strategy, and we are committed to exceeding our customers' expectations by continuously improving our performance in Quality, Delivery, Productivity and Safety."
General Donlee Canada Inc. is a leading diversified manufacturer of precision-machined products for the military, commercial and general aerospace industries, and a specialist in the manufacture of precision-machined products for the industrial products and power generation industries. General Donlee's operating strategy focuses on targeting niche markets for products that are aligned with its sophisticated manufacturing capabilities and skilled workforce.
References to "net income before other gains, losses and income taxes" are to earnings before other losses and gains and provision for income taxes. This non-GAAP measure, is not an earnings measure recognized by IFRS and does not have a standardized meaning prescribed by IFRS.
On August 7, 2012 the Company will file its unaudited Condensed Consolidated Interim Financial Statements (including the notes thereto) and Management's Discussion and Analysis for the six-month period ended June 30, 2012 with SEDAR at www.sedar.com. The documents will also be available on the Company's website at www.generaldonlee.com on the Financial Reports page.
As with all forward-looking statements, caution must be exercised to ensure that appropriate interpretation is made. Certain forward-looking statements are based on information currently available to Management, but are subject to a number of uncertainties and risks that could cause actual results to differ materially from the results discussed in the forward-looking statements. These uncertainties and risks include, but are not limited to those listed under the "Risk Factors" section of the Company's 2011 Annual Information Form, dated March 30, 2012 (which can be found at www.sedar.com).
Further information can be found in the disclosure documents filed by General Donlee Canada Inc. with the securities regulatory authorities, available at www.sedar.com or through the Company's website at www.generaldonlee.com.
SOURCE: General Donlee Canada Inc.
For further information:
President & Chief Executive Officer
Telephone: (416) 743-4417
Interim Chief Financial Officer
Telephone: (416) 743-4417
E-mail: [email protected]
Web site: www.generaldonlee.com