Business
Richelieu announces record net earnings for the second quarter of 2010
Richelieu announces record net earnings for the second quarter of 2010
About this update from Richelieu Hardware Ltd
[{"type":"text","content":"\n\n\n\n Jul. 8, 2010 (Canada NewsWire Group) -- and the closing of an acquisition and three agreements in principle for acquisitions in Canada and United States\n\n\n >\n\n\nTSX: RCH\n\nMONTREAL, July 8 /CNW Telbec/ - Richelieu achieved record net earnings for the three-month period ended May 31, 2010. The second quarter brought a vigorous increase in the demand for Richelieu products in Canada, in its two major markets: manufacturers and retailers and renovation superstores. In the United States, where the context is currently less conducive to a rise in demand, its markets nevertheless showed some stability and the Company posted a slight increase in sales in U.S. dollars, driven by internal growth and acquisitions. During the quarter, Richelieu acquired Raybern Company, Inc., a distributor of decorative and architectural hardware, finishing products, high-pressure laminates and complementary products targeted primarily to kitchen cabinet makers and the residential and commercial woodworking industry. This latest acquisition provides Richelieu with more than US$4 million in annual sales and adds another centre to its network, which now consists of 20 distribution centres in the United States and 51 centres in North America.\n"We are very satisfied with the growth achieved in the second quarter, driven by the contribution of our three Canadian geographic markets. Activity remained vigorous in our customer segments and raised our sales by 12.7% in Canada over the second quarter of 2009. Sales grew by some 19% in the second quarter of 2010 in the retailers and renovation superstore market, where we are reaping the benefits of the major investments made in 2008 and 2009 to increase our display floor space. For our North American markets as a whole, our sales increased by 9.3%, of which a 7.7% internal growth, whereas the second-quarter EBITDA margin improved to 15.9% from 11.7% in the corresponding quarter of 2009," indicated Richard Lord, President and Chief Executive Officer.\nDuring the quarter, the Company repurchased common shares for cancellation under its normal course issuer bid for an amount of $8.9 million. As at May 31, 2010, total cash amounted to $53.2 million, compared with $12.7 million as at May 31, 2009. Working capital totalled $157.4 million for a current ratio of 4.4:1 and interest-bearing debt stood...