Norwall Group Inc. reports third quarter end results

BRAMPTON, ON, Nov. 25 /CNW/ - Norwall Group Inc., one of North America's largest manufacturers and distributors of residential wallcovering, announced today its financial results for the quarter and nine months ended September 30, 2009 .

Sales for the nine months ended September 30, 2009 were $18,621,000 , down $4,690,000 or 20.1% as compared to the same period in the previous year. The nine month net loss was $4,023,000 or $0.56 per share as compared to the net loss of $1,889,000 or $0.26 per share for the comparable period last year. The Company continues to maintain a positive working capital balance of $5,173,000 at the end of the third quarter of 2009 as compared to $6,598,000 at year end.

Norwall Group (TSX:NGI) manufactures quality residential wallpapers and borders and distributes them to thousands of home centres, specialty stores and mass merchants in Canada and through its wholly-owned operating subsidiary, Patton Wallcoverings, in the United States .

This Press Release contains forward-looking statements reflecting management's current expectations regarding future results of operations, economic performance, financial conditions, and achievements of the Company. Actual results may differ materially from those in such statements. The Company wishes to caution the reader that those important factors described elsewhere in the management's discussion and analysis of operations could affect the Company's actual results and could cause such results to materially differ from those expressed in any forward-looking statement made by, or on behalf of, the Company.

    
    (1) EBITA is not a recognized measure under Canadian generally accepted
    accounting principles (GAAP). Investors should be cautioned, however,
    that EBITA should not be construed as an alternative to net income (loss)
    determined in accordance with GAAP as an indicator of the Company's
    performance or to cash flows from operating, investing and financing
    activities as a measure of liquidity and cash flows. The Company's method
    of calculating EBITA may differ from other companies and, accordingly,
    EBITA may not be comparable to measures used by other companies. EBITDA
    is calculated as earnings before income taxes, depreciation, amortization
    and severance.


                             NORWALL GROUP INC.
                         Consolidated Balance Sheets
         (In thousands of Canadian dollars, except per share amounts)

                                                       June 30,  December 31,
                                                          2009          2008
                                                             $             $
                                                    (Unaudited)
    Assets

    Current assets
    Cash and cash equivalents                            3,683         2,294
    Accounts receivable                                  4,259         6,035
    Inventories                                          4,447         5,445
    Merchandising supplies                                 223           657
    Prepaid expenses and other                             264           439
                                                   --------------------------
                                                        12,876        14,870

    Property, plant and equipment                       12,792        14,082

    Future income taxes                                  2,087         2,861
                                                   --------------------------
                                                        27,755        31,813
                                                   --------------------------
                                                   --------------------------
    Liabilities

    Current liabilities
    Accounts payable and accrued liabilities             3,094         3,410
    Current portion of long-term debt                    4,609         4,862
                                                   --------------------------
                                                         7,703         8,272
                                                   --------------------------
    Shareholders' Equity

    Share capital                                       33,134        33,134

    Accumulated other comprehensive income (loss)           12          (522)

    Deficit                                            (13,094)       (9,071)
                                                   --------------------------
                                                        20,052        23,541
                                                   --------------------------
                                                        27,755        31,813
                                                   --------------------------
                                                   --------------------------


                             NORWALL GROUP INC.
                    Consolidated Statements of Operations
         (In thousands of Canadian dollars, except per share amounts)

                                 FOR THE THREE MONTHS   FOR THE NINE MONTHS
                                         ENDED                 ENDED
                                 ---------------------- ---------------------
                                  September  September  September  September
                                   30, 2009   30, 2008   30, 2009   30, 2008
                                  unaudited  unaudited  unaudited  unaudited
                                 ---------------------- ---------------------
    Sales                             5,774      6,550     18,621     23,311
    Cost of goods sold                4,493      5,329     13,813     18,222
                                 ---------------------- ---------------------
    Gross profit                      1,281      1,221      4,808      5,089
    Selling, general and
     administrative expenses          2,013      2,115      6,633      7,449
                                 ---------------------- ---------------------
    Loss before the undernoted         (732)      (894)    (1,825)    (2,360)
    Severance and termination costs      78         10        691         76
                                 ---------------------- ---------------------
    Loss from operations before
     the following items               (810)      (904)    (2,516)    (2,436)
    Foreign exchange (gain) loss        760       (341)       879       (609)
    Interest expense                     59         60        169        171
                                 ---------------------- ---------------------
    Loss before income taxes         (1,629)      (623)    (3,564)    (1,998)
    Provision of income taxes           124         96        459       (109)
                                 ---------------------- ---------------------
    Net loss for the period          (1,505)      (719)    (4,023)    (1,889)
                                 ---------------------- ---------------------
    Basic and diluted loss per
     common share                     (0.21)     (0.10)     (0.56)     (0.26)
                                 ---------------------- ---------------------
                                 ---------------------- ---------------------
    Weighted and average number
     of common shares
     outstanding                  7,135,032  7,135,032  7,135,032  7,135,032
                                 ---------------------- ---------------------
                                 ---------------------- ---------------------
    

%SEDAR: 00002584E

For further information: [phone]; James J. Patton, President and Chief Executive Officer, [email protected]; Edward Diochon, Vice President of Finance, [email protected]