Glendale International reports fourth quarter fiscal 2005 financial results

About this update from Firan Technology Group Corporation

Toronto Stock Exchange Symbol: GIN OAKVILLE, ON, Feb. 28 /CNW/ - Glendale International Corp. (TSX: GIN) today reported its fourth quarter and year end financial results for fiscal 2005, ended November 30, 2005. "Glendale International continues to focus on creating value through the successful development of our component businesses," stated Edward C. Hanna, Chief Executive Officer and Chairman, Glendale International Corp. "The financial performance of FTG Circuits Chatsworth has exceeded our expectations since its acquisition last year, contributing to a strong growth in sales and operating earnings in our Electronics group. Similarly, our Navigational Aids business had a record year for profitability, posting its fifth consecutive year of growth in operating earnings. Our Recreational Vehicles business continues to be one of the most profitable RV businesses in the North American towable RV industry. Our strong profitability is the result of having one of the most innovative and differentiated product lines in the industry. The RV business is challenged however by record fuel prices and a strong Canadian dollar. Our new 2006 model line, including the redesigned Titanium Multi-Purpose Recreational Vehicle (MPRV) and specialty trailers in Western Canada are promising prospects for this fiscal year." Financial Results Sales for the fourth quarter of fiscal 2005 were $41.8 million compared with $45.6 million for the fourth quarter of fiscal 2004. The decrease was primarily due to lower sales from the Recreational Vehicles and Navigational Aids businesses, which was partially offset by higher sales in our Electronics business. Net earnings for the fourth quarter of fiscal 2005 were $1.3 million, or $0.10 per share, compared with $2.4 million, or $0.19 per share, for the fourth quarter of fiscal 2004. For the fiscal year, sales decreased to $165.7 million from $186.7 million for fiscal 2004. Net earnings for fiscal 2005 decreased to $3.4 million, or $0.27 per share, compared to $10.3 million, or $0.82 per share, last year. As of November 30, 2005, Glendale International had working capital of $9.2 million, including cash and cash equivalents of $6.2 million, compared to working capital of $10.9 million, including cash and cash equivalents of $5.0 million, on November 30, 2004. Recreational Vehicles (Glendale RV and Travelaire Canada) Sales for the Recreational Vehicles business for the fourth quarter of fiscal 2005 were $23.4 million compared with $28.5 million for the fourth quarter of last year. The decrease was primarily the result of increased price competition due to the higher Canadian dollar, the currency translation impact of U.S. dollar denominated sales, and higher fuel prices, which impact consumers' buying decisions. Operating earnings for the fourth quarter of fiscal 2005 were $1.7 million compared with $2.9 million for the same quarter last year. During the quarter, Glendale RV had some early success with its new line of Easy Rider-Golden Falcon fifth wheel trailers, strategically penetrating the mid-priced RV segment. The mid-priced segment accounts for a significant portion of the total RV market in North America. Travelaire Canada experienced continued success with sales of their specialty trailers, including Mobile Office Trailers and Roughneck travel trailers, to companies operating in the oil-sands region of Western Canada. Electronics (Firan Technology Group Corporation) Sales for Firan Technology Group Corporation (TSX: FTG) for the fourth quarter of fiscal 2005 increased to $13.4 million, compared with $10.5 million for the fourth quarter of fiscal 2004. The appreciation in the Canadian dollar reduced the translated value of U.S. denominated sales by approximately $0.7 million. Sales for the Circuits Division increased to $10.6 million from $7.9 million, while sales for the Aerospace Division increased to $2.8 million from $2.6 million for the fourth quarter of last year. Operating earnings for the fourth quarter of fiscal 2005 were $0.3 million compared to an operating loss of $0.2 million for the fourth quarter of fiscal 2004. In accordance with its ownership position in Firan Technology Group Corporation, Glendale International recorded net earnings from the company for the fourth quarter of fiscal 2005 of $66 thousand compared with a net loss of $14 thousand for the fourth quarter of fiscal 2004. In the fourth quarter, FTG's Circuits Division in Chatsworth, California entered into an agreement with Smiths Aerospace for the supply of complex, high reliability printed circuit boards for Smiths' US operations. Smiths has historically ordered US$1.0 million to US$2.0 million annually from FTG Circuits Chatsworth and this level of sales is expected to continue under the new agreement. Subsequent to quarter end, FTG made the strategic decision to re-enter the rigid-flex and flex markets, recognizing a considerable need for a high-end provider of specialized aerospace compliant PCBs. Navigational Aids (Fernau Avionics) Sales for Fernau Avionics for the fourth quarter of fiscal 2005 were $4.5 million compared with $6.1 million for the fourth quarter of fiscal 2004. Operating earnings for the fourth quarter of fiscal 2005 were $0.1 million compared with $0.5 million for the fourth quarter of fiscal 2004. During the quarter, the business received its first significant order for its recently-launched Personal Locator Beacon (PLB), with a sale to a Malaysian government agency. Outlook Mr. Hanna added, "We continue to focus on the creation of shareholder value through building the individual components of our business. With the belief that our greatest opportunities are still ahead of us, during fiscal 2005 we enhanced our competitive positions in each of our businesses and continued to execute strategies to capitalize on both short- and long-term opportunities. Being mindful of the ongoing challenges posed by a stronger Canadian dollar, we will continue with efforts to lower our cost structure and lessen the impact that currency valuations have on our businesses. In our RV business, we remain focused on innovation and differentiation, with our long-term objective being to continue to lead the market in this respect. Going forward, we are well positioned to fully capitalize on the strong long-term growth forecast for the RV industry. The outlook for our Electronics business remains positive, with our customer base forecasting continued growth. With resurgent demand in the traditional ground-based air navigation equipment market and strong prospects for new products such as our PLB, our Navigational Aids business is well positioned to continue its trend of strong growth." About Glendale International Corp. Glendale International Corp. manages businesses that provide the opportunity for superior long-term value creation through the application of proven managerial expertise and innovative business strategies. The Corporation has built a core portfolio of profitable growth businesses in the recreational vehicles, electronics and technology sectors and will seek to acquire complementary businesses that support its value-building proposition. Glendale International's businesses include: Glendale Recreational Vehicles/Travelaire Canada, the largest Canadian manufacturer of recreational vehicles (RVs); a controlling position in Firan Technology Group Corporation, the largest aerospace and defence supplier of advanced technology printed circuits in Canada and among the top 25 PCB manufacturers in North America; and Fernau Avionics, a leading international supplier of ground-based air navigational systems for military, naval and civil aviation applications. Glendale International Corp. is a public corporation whose shares trade on the Toronto Stock Exchange ("TSX") under the symbol "GIN". The Corporation has approximately 12.5 million common shares outstanding. To reach Glendale International via the worldwide web logon to www.glendaleint.com. This press release contains certain forward-looking statements that reflect the current views and/or expectations of management of Glendale International Corp. with respect to its performance, business and future events. Such statements are subject to a number of risks, uncertainties and assumptions. Actual results and events may vary significantly. >

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