Business
Richelieu further increases its earnings and closes another acquisition in the third quarter
------------------------------------------------------------------------- Third quarter and first...
About this update from Richelieu Hardware Ltd
[{"type":"text","content":"\n\n\n\n-------------------------------------------------------------------------\n Third quarter and first nine months ended August 31, 2008\n ---------------------------------------------------------\n\n- Net earnings amounted to $9.6 million, up 5.8%, or $0.42 per share for\n the third quarter. They totalled $25.4 million, up 6.9%, or $1.11 per\n share for the first nine months of 2008.\n- Excellent financial position - the interest-bearing debt/equity ratio\n stood at 3.3% and working capital at $130.5 million, for a current\n ratio of 3.7:1.\n- Since the beginning of the year, Richelieu has paid $5.5 million in\n shareholder dividends and purchased 490,700 common shares under its\n normal course issuer bid, for a cash consideration of $9.3 million.\n- Acquisition of a distributor in British Columbia closed on July 28,\n 2008.\n-------------------------------------------------------------------------\n\nTSX: RCH\n--------\n\n\nMONTREAL, Oct. 2 /CNW Telbec/ - Richelieu announces its results for the\nthird quarter ended August 31, 2008, which represents its 51st consecutive\nquarter of net earnings growth over the comparable periods of previous years.\nThird-quarter net earnings grew by 5.8% to $9.6 million, whereas sales\ntotalled $111.8 million, remaining relatively stable compared with the same\nperiod of 2007 - these results were achieved despite a generally more\ndifficult economy and the unfavourable impact of the exchange rate on U.S.\ndollar sales converted into Canadian dollars. For the first nine months of the\nyear, net earnings totalled $25.4 million, up 6.9%, on sales of\n$322.7 million. Cash flows continued to increase and the financial position\nfurther improved - as at August 31, 2008, Richelieu had a working capital of\n$130.5 million, cash of $13.3 million and no debt after deducting cash.\n\n\nAcquisition - On July 28, 2008, the Company closed its second acquisition\nthis year by purchasing the principal net assets of Acroma Sales Ltd., a\ndistributor of wood finishing products operating two centres in British\nColumbia that will be integrated with Richelieu's Vancouver and Kelowna\ndistribution centres. This acquisition enables it to expand its offering of\nfinishing products in the strong Western Canadian market, to integrate a\ndynamic and profitable company while optimizing its assets, and to increase\ni...