Business
Richelieu pursues its growth in 2005 and increases its dividend rate by 20%
Richelieu pursues its growth in 2005 and increases its dividend rate by 20%.
About this update from Richelieu Hardware Ltd
[{"type":"text","content":"\n\n\n\n\n-------------------------------------------------------------------------\n- Total sales increase by 9.4% and earnings per share by 6.2%.\n\n- Operations in the United States show a strong 54% improvement in sales\n as a result of the efficient integration of business acquisitions and\n solid internal growth - they now account for 12% of total sales.\n\n- Richelieu shows an excellent financial position, with almost no debt,\n and has record liquidity of over $20 million to pursue its expansion\n and growth in 2006.\n\n- The dividend rises from $0,05 to $0,06 per share.\n\n- Two acquisitions close at the beginnig of 2006, one in Canada and one \n on the U.S. East Cost.\n-------------------------------------------------------------------------\n\nTSX: RCH\n\n MONTREAL, Jan. 25 /CNW Telbec/ - Richelieu achieved consolidated sales\nof $350.2 million for the year ended November 30, 2005, up 9.4% over 2004. Of\nthis increase, 6.4% was internal growth and 3.0% came from the two U.S.\nacquisitions made in 2004. Sales from distribution operations totalled\n$332.3 million, accounting for 94.9% of consolidated sales, whereas sales from\nmanufacturing operations amounted to $17.9 million, accounting for 5.1% of\nconsolidated sales. Richelieu recorded total sales of $309.2 million in\nCanada, or 88.2% of its consolidated revenues, up 6.4% over 2004. Distribution\nsales in the United States grew by 42.8% (50.2% in U.S. dollars) to\n$40.9 million (US$34 million). In 2005, Richelieu opened one new distribution\ncentre on the U.S. East Coast (Charlotte, North Carolina) and another in\nLongueuil (Quebec). Subsequent to year-end, the Company closed two\nacquisitions in Canada and the United States and signed an agreement in\nprinciple for a third acquisition that is scheduled to close in the coming\nweeks.\nEarnings before interest, taxes, depreciation, amortization and non-\ncontrolling interest (EBITDA) totalled $45.8 million, up 5.6% over 2004. The\nEBITDA profit margin stood at 13.1%. EBITDA from distribution operations grew\nby 2.1% to $40.7 million and EBITDA from manufacturing operations posted\nstrong growth of 45.1%, rising to $5.1 million. Net earnings amounted to\n$27.7 million or $1.20 per share ($1.19 diluted), up 6.2% over the previous\nyear.\n\"2005 was a year of investments, primarily in sales and marketing. In\nview of f...