TORONTO, May 8, 2013 /CNW/ - General Donlee Canada Inc. ("General Donlee" or the "Company") (TSX: GDI) today announced its results for the first quarter ended March 31, 2013. The Board has declared a quarterly dividend of 8.25 cents per common share payable on July 15, 2013 to holders of record at the close of business on June 28, 2013.
Financial highlights relating to General Donlee's first quarter 2013:
- Backlog remains solid at $63.8 million
- Sales of $13.2 million
- Net income before other gains, losses and income taxes of $1.1 million
- Quarterly dividend of 8.25 cents per share paid to shareholders on April 15, 2013
Robust revenues and strong cash flow from operations
"General Donlee's sales in the Aerospace segment are up 19% over the comparable quarter of 2012. The Specialty Precision Products division was down over the comparable quarter in 2012 reflecting lower sales to oil and gas customers. In the first quarter of 2013 we generated $1.5 million of 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 Chief Executive Officer, Garen Mikirditsian.
"At March 31, 2013, our production order backlog was at $63.8 million remaining close to our all-time high of $65 million of December 31, 2012, reflecting 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, particularly in the aerospace sector."
Net Income before other gains, losses and income taxes
Net income before other gains, losses and income taxes was $1.1 million down from the $1.9 million in first quarter 2012.
The following summary of financial data presents General Donlee's consolidated results of operations for the three-month period ended March 31, 2013, including comparative results for the same period in 2012.
| ($ millions, except per Share
|Three Months Ended|
|Mar. 31/13||Mar. 31/12|
| Net income before other gains,
losses and income taxes
|Basic income per share||$0.082(a)||$0.149(b)|
|(a) Based on weighted average of 10,612,934 shares outstanding.|
|(b) Based on weighted average of 10,664,465 shares outstanding.|
The Company continues to see strong demand from customers, especially those in the aerospace sector. "Our near 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 President and Chief Executive Officer, Garen Mikirditsian.
The Company expects 2013 demand for its services to ramp-up as the year unfolds. "We see strong demand from various customers in the aerospace sector, as well as particular opportunities in the nuclear and oil & gas sectors", said Mr. Mikirditsian. "We have recently been awarded orders by a major customer for new parts on next-generation platforms and continue to experience important quoting activity across the majority of end markets we serve".
The Company is also seeing its pro-active efforts at broadening its customer base bearing fruit. "We are pleased to note that the Company recently added a top tier oilfield services company as a new customer, which we believe will be a major driver of further growth within this sector", said Mr. Mikirditsian. "The establishment of new customer relationships, as well as the continuing growth with our current customer base is evidence of our focus to achieve operational excellence."
General Donlee Canada Inc. is a leading diversified manufacturer of precision-machined products serving the commercial, military, and general aerospace industries as well as the nuclear, power generation, oil & gas and capital equipment end markets. General Donlee's operating strategy focuses on targeting niche markets for products that are aligned with its sophisticated manufacturing capabilities and skilled workforce.
On May 9, 2013 the Company will file its unaudited Condensed Consolidated Financial Statements (including the notes thereto) and Management's Discussion and Analysis for the period ended March 31, 2013 with SEDAR at www.sedar.com. These 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 2012 Annual Information Form, dated March 9, 2013 (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.
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