TORONTO, March 8, 2013 /CNW/ - General Donlee Canada Inc. ("General Donlee" or the "Company") (TSX: GDI) today announced its results for the fourth quarter and year ended December 31, 2012. The Board has declared a quarterly dividend of 8.25 cents per common share payable on April 15, 2013 to holders of record at the close of business on March 31, 2013.
Financial highlights relating to General Donlee's fourth quarter 2012:
- Record backlog of $65.0 million at December 31, 2012, up 17% from year-end 2011
- Sales of $13.6 million, 15% higher than in Q4 2011
- Net income before other gains, losses and income taxes of $1.2 million
- Quarterly dividend of 8.25 cents per share paid to shareholders on January 15, 2013
Financial highlights relating to the year 2012:
- Sales of $54.5 million, up 11% compared to 2011
- Net income before other gains, losses and income taxes of $6.2 million, representing a 22% increase over 2011.
- Dividends totaling $0.33 per share declared to shareholders in 2012
Consistent growth in strong sales and strong cash flow from operations
"General Donlee's 15% increase in sales in the fourth quarter and 11% increase in sales year-to-date over the comparable periods last year continue 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 fourth quarter we generated $1.8 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 December 31, 2012, our production order backlog was at an all-time high of $65 million, up 45% over the last 3 years, and representing another important milestone in the Company's 48-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."
Significant increase in Net Income before other gains, losses and income taxes
Net income before other gains, losses and income taxes was $6.2 million, up 22% over 2011.
The following summary of financial data presents General Donlee's consolidated results of operations for the three-month and twelve-month periods ended December 31, 2012, including comparative results for the same periods in 2011.
|($ millions, except per Share amounts)||Three Months Ended||Twelve Months Ended|
|Dec. 31/12||Dec. 31/11||Dec. 31/12||Dec. 31/11|
|Net income before other gains, losses and income taxes||1.2||1.6||6.2||5.1|
|Basic income per share||$0.074(a)||$0.159(c)||$0.394(b)||$0.433(c)|
(a) Based on weighted average of 10,612,934 shares outstanding.
(b) Based on weighted average of 10,629,632 shares outstanding.
(c) Based on weighted average of 10,664,465 shares outstanding.
General Donlee had sales of $54.5 million for the year ended December 31, 2012 - an increase of $5.6 million, or 11%, over 2011. Sales in the Company's aerospace and power generation products division during the year ended December 31, 2012 were $34.1 million - up by 14%, or $4.3 million, over 2011. General Donlee's specialty precision products division's sales during the same period were $20.4 million, an increase of $1.3 million or 7% over 2011.
Excluding the impact of non-recurring items in both comparable periods, the Company's net income before other gains, losses and income taxes was $6.2 million, representing a 22% increase over 2011.
The Company's net income during the year ended December 31, 2012 was $4.2 million, compared to net income of $4.6 million during the same period in the previous year.
Appointment of Chief Financial Officer
General Donlee announces the appointment of Robert Kheir as Chief Financial Officer. Mr. Kheir brings over 18 years of experience to the role. Previously, Mr. Kheir was CFO of ASL Distribution Services Ltd., a leader in supply chain services, overseeing organic and acquisitive growth of 25%. His experience includes the aerospace sector, having started his career at Bombardier Aerospace. Mr. Kheir is a certified management accountant and holds an MBA from Wilfrid Laurier University.
"Rob's broad-based experience as a finance professional, including his prior exposure to the aerospace sector, gives him a solid platform for the job of Chief Financial Officer of General Donlee," commented Mr. Garen Mikirditsian, President and Chief Executive Officer of the Company. "We welcome Rob to the team and look forward to working with him to execute our growth strategy."
The Company continues to see strong demand from customers, especially those in the aerospace sector. "Our record production backlog of $65.0 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 sector", said Mr. Mikirditsian. "We are experiencing important quoting activity across these markets".
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 signed a Long Term Agreement with a new customer, a major European aircraft engine manufacturer", said Mr. Mikirditsian. "The establishment of new customer relationships, as well as the continuing growth with our current customer base is evidence of the superior technical expertise of our skilled workforce and the Company's commitment to make significant investments in capital equipment and human resources to achieve operational excellence."
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.
On March 8, 2013 the Company will file its audited Consolidated Financial Statements (including the notes thereto) and Management's Discussion and Analysis for the year ended December 31, 2012 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 8, 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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