TORONTO, Nov. 14, 2012 /CNW/ - General Donlee Canada Inc. ("General Donlee" or the "Company") (TSX: GDI) today announced its results for the third quarter ended September 30, 2012. The Board has declared a quarterly dividend of 8.25 cents per common share payable on January 15, 2013 to holders of record at the close of business on December 28, 2012.
Financial highlights relating to General Donlee's third quarter 2012:
- Backlog of $62.5 million at September 30, 2012, 17% higher than in Q3 2011
- Basic income per share of 10.3 cents for the quarter compared to 4.4 cents per share in Q3 2011
- Quarterly dividend of 8.25 cents per share paid to shareholders on October 15, 2012
Continuing positive cash flow from operations
"General Donlee generated $12.6 million in sales during the third quarter, up slightly from the similar period last year. In the third quarter we generated $1.4 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 September 30, 2012, our production order backlog was at $62.5 million, a near record high and up 72% over the last three years, and represents 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, especially from aerospace customers."
Gross profit for the quarter remained healthy. "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 $1.3 million, down slightly over the comparable period in 2011.
The following summary of financial data presents General Donlee's consolidated results of operations for the three-month and nine-month periods ended September 30, 2012, including comparative results for the same periods in 2011.
|($ millions, except per Share amounts)||Three Months Ended||Nine Months Ended|
|Sept 30/12||Sept 30/11||Sept 30/12||Sept 30/11|
|Net income before other gains, losses and income taxes||1.3||1.4||5.0||3.5|
|Basic income per share||$0.103(a)||$0.044(b)||$0.319(c)||$0.274(b)|
|(a)||Based on weighted average of 10,615,183 shares outstanding.|
|(b)||Based on weighted average of 10,664,634 shares outstanding.|
|(c)||Based on weighted average of 10,635,432 shares outstanding.|
General Donlee had sales of $40.9 million for the first nine months of 2012 - an increase of $3.8 million, or 10%, over its sales in the same period in 2011. Sales in the Company's aerospace and power generation products division during the nine month period ended September 30, 2012 were $24.9 million - up by 7%, or $1.7 million, over the comparable period in 2011. General Donlee's specialty precision products division's sales during the same period were $16.0 million, an increase of $2.1 million or 15% 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 nine months ended September 30, 2012 was $5.0 million, up 42% compared to $3.5 million during the same period in 2011.
The Company's net income during the nine months ended September 30, 2012 was $3.4 million, compared to net income of $2.9 million during the same period in the previous year.
The Company continues to see strong demand from customers, especially those in the aerospace sector. "Our production backlog of $62.5 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 demand for its services to remain robust. "We see potential to broaden our customer base in the aerospace and oil & gas industries, as well as particular opportunities in the nuclear sector", said Mr. Mikirditsian. "We are making significant investments in capital equipment and human resources to support our growth strategy and to offer incremental capabilities and capacity to our customers, while ensuring we continue to provide them with excellent service."
General Donlee's outlook for sustainable and profitable growth is also grounded on its consistent focus on continuous improvement. "We continue to implement operational improvement initiatives, with a particular emphasis on increasing throughput and managing our working capital effectively," 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 Safety, Quality, Delivery and Productivity."
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 November 14, 2012 the Company will file its unaudited Condensed Consolidated Interim Financial Statements (including the notes thereto) and Management's Discussion and Analysis for the nine-month period ended September 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.
% SEDAR 00017571E
SOURCE: General Donlee Canada Inc.
For further information:
President & Chief Executive Officer
Telephone: (416) 743-4417
Interim Chief Financial Officer
Telephone: (416) 743-4417