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.
<<
Financial Highlights
(in thousands of dollars except per share amounts)
(prepared without audit)
----------------------------------------
Three Months Ended Year Ended
November November November November
30, 2005 30, 2004 30, 2005 30, 2004
-------------------------------------------------------------------------
Sales $41,843 $45,647 $165,658 $186,701
Net Earnings $1,286 $2,389 $3,431 $10,293
---------------------------------------
Basic and Diluted Net Earnings
per Share $0.10 $0.19 $0.27 $0.82
-------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEETS
(in thousands of dollars)
(prepared without audit)
Year Ended
--------------------
CURRENT ASSETS November November
30, 2005 30, 2004
--------------------
Cash and cash equivalents $6,208 $5,000
Accounts receivable 21,205 19,375
Inventories 21,651 17,621
Deposits and prepaid expenses 916 1,385
Future income taxes 1,088 1,609
--------------------
51,068 44,990
Future Income Taxes 564 -
Property, Plant and Equipment (net) 15,994 20,210
Note Receivable 1,967 -
Intangible Asset 281 353
Goodwill 4,876 1,610
--------------------
$74,750 $67,163
--------------------
--------------------
CURRENT LIABILITIES
Bank indebtedness $6,506 $1,809
Accounts payable and accrued liabilities 23,613 22,324
Income taxes payable 200 701
Current portion of long-term debt 11,520 9,235
--------------------
41,839 34,069
Long-Term Debt - 2,994
Future Income Taxes 49 405
Non-Controlling Interest 8,096 6,452
--------------------
49,984 43,920
SHAREHOLDERS' EQUITY
Share capital 1,249 1,249
Contributed surplus 8,923 7,960
Cumulative translation adjustment (1,395) 167
Retained earnings 15,989 13,867
--------------------
24,766 23,243
--------------------
$74,750 $67,163
--------------------
-------------------
CONSOLIDATED STATEMENTS OF EARNINGS
(in thousands of dollars except per share amounts)
(prepared without audit)
Three Months Ended Year Ended
----------------------------------------
November November November November
30, 2005 30, 2004 30, 2005 30, 2004
----------------------------------------
Sales $41,843 $45,647 $165,658 $186,701
----------------------------------------
Costs and Expenses
Manufacturing, selling and
administration 38,615 40,979 154,019 169,414
(Gain)/Loss on sale of property,
plant and equipment (441) 23 (441) (290)
Depreciation and amortization 1,149 983 4,702 4,472
Research and development 810 424 2,225 1,881
----------------------------------------
40,133 42,409 160,505 175,477
----------------------------------------
Earnings Before Undernoted 1,710 3,238 5,153 11,224
----------------------------------------
Restructuring charges/(recovery) - - 7 (313)
Severance costs - - 661 1,200
----------------------------------------
Operating Earnings 1,710 3,238 4,485 10,337
Other Income (Expenses)
Interest income 58 2 211 26
Interest expense - long term (209) (189) (859) (561)
- short term (170) 18 (519) (251)
Dilution gain - - 185 -
----------------------------------------
(321) (169) (982) (786)
Earnings Before Income Taxes and
Non-Controlling Interest 1,389 3,069 3,503 9,551
Provision for/(Recovery of)
income taxes 16 695 575 (706)
----------------------------------------
Earnings Before Non-Controlling
Interest 1,373 2,374 2,928 10,257
Non-controlling interest (87) 15 503 36
----------------------------------------
Net Earnings $1,286 $2,389 $3,431 $10,293
----------------------------------------
----------------------------------------
Basic and Diluted Net Earnings
per Share $0.10 $0.19 $0.27 $0.82
----------------------------------------
----------------------------------------
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands of dollars)
(prepared without audit)
Three Months Ended Twelve Months Ended
----------------------------------------
November November November November
30, 2005 30, 2004 30, 2005 30, 2004
----------------------------------------
Operating Activities
Net earnings $1,286 $2,389 $3,431 $10,293
Items not affecting cash
Depreciation and amortization 1,149 983 4,702 4,472
Stock option expense 26 - 142 -
Future income taxes (139) (209) (462) (3,359)
Non-controlling interest 87 (15) (503) (36)
Dilution gain - - (185) -
(Gain)/loss on sale of
property, plant and equipment (441) 23 (441) (290)
Changes in non-cash operating
working capital 964 4,391 (4,870) (2,678)
----------------------------------------
2,932 7,562 1,814 8,402
Investing Activities
Acquisition of Young
Electronics - - (6,202) -
Acquisition of Circuit World - (145) - (155)
Purchase of capital assets (695) (96) (2,564) (1,803)
Purchase of intangible asset - (394) - (394)
Proceeds on sale of property,
plant and equipment 2,791 10 2,791 323
----------------------------------------
2,096 (625) (5,975) (2,029)
Financing Activities
Change in bank indebtedness (1,772) (4,684) 4,697 (1,363)
Issuance of common shares
by FTG 1 - 2,711 -
(Decrease)/Increase term loan
financing (258) 4,682 3,153 13,971
Repayment of long-term debt
and capital leases (2,196) (701) (3,845) (9,394)
Dividends paid - (4,995) (624) (6,244)
----------------------------------------
(4,225) (5,698) 6,092 (3,030)
Effect of exchange rate
changes on cash (388) (55) (723) 64
----------------------------------------
Net Cash Flow 415 1,184 1,208 3,407
Cash and Cash Equivalents,
beginning of period 5,793 3,816 5,000 1,593
----------------------------------------
Cash and Cash Equivalents,
end of year $6,208 $5,000 $6,208 $5,000
----------------------------------------
----------------------------------------
Supplemental disclosures of
cash flows:
Payments for interest $438 $300 $1,399 $905
Payments for income taxes $356 $190 $2,150 $3,886
Refunds of income taxes $- $- $556 $275
SEGMENTED INFORMATION
(in thousands of dollars)
(prepared without audit)
OPERATING SEGMENTS
------------------------------------------------------
Recrea- Nav Aids Elec- Other Corporate Total
tional tronics Office
Vehicles
------------------------------------------------------
Three Months Ended
November 30, 2005
Sales $23,351 $4,515 $13,390 $587 - $41,843
Costs and expenses 21,650 4,387 13,106 524 466 40,133
------------------------------------------------------
Operating earnings 1,701 128 284 63 (466) 1,710
Interest income - 47 (59) - 70 58
Interest expense
- long term - 20 (117) - (112) (209)
- short term - - 17 - (187) (170)
Income tax provision - (65) 28 - 21 (16)
Non-controlling
interest - - (87) - - (87)
------------------------------------------------------
Net earnings $1,701 $130 $66 $63 ($674) $1,286
------------------------------------------------------
------------------------------------------------------
Total and
identifiable
assets 23,082 16,350 19,774 887 14,657 74,750
Capital
expenditures 218 83 345 1 48 695
Depreciation and
amortization 118 64 891 12 64 1,149
Goodwill - - 4,876 - - 4,876
Three Months Ended
November 30, 2004
Sales $28,468 $6,118 $10,467 $594 - $45,647
Costs and expenses 25,586 5,581 10,670 563 9 42,409
------------------------------------------------------
Operating earnings 2,882 537 (203) 31 (9) 3,238
Interest income - - - - 2 2
Interest expense
- long term - - (34) - (155) (189)
- short term - 119 - - (101) 18
Income tax provision - 24 208 - (927) (695)
Non-controlling
interest - - 15 - - 15
------------------------------------------------------
Net earnings $2,882 $680 ($14) $31 ($1,190) $2,389
------------------------------------------------------
------------------------------------------------------
Total and
identifiable
assets 19,080 16,274 17,161 940 13,708 67,163
Capital
expenditures 149 (328) 244 5 26 96
Depreciation and
amortization 104 49 737 13 80 983
Goodwill - - 1,610 - - 1,610
OPERATING SEGMENTS
------------------------------------------------------
Recrea- Nav Aids Elec- Other Corporate Total
tional tronics Office
Vehicles
------------------------------------------------------
Year Ended
November 30, 2005
Sales $92,514 $18,249 $52,801 $2,094 - $165,658
Costs and expenses 87,011 16,436 51,972 2,090 2,996 160,505
------------------------------------------------------
Earnings before
undernoted 5,503 1,813 829 4 (2,996) 5,153
Severance and
restructuring
costs - - 668 - - 668
------------------------------------------------------
Operating earnings 5,503 1,813 161 4 (2,996) 4,485
Interest income - 160 (59) - 110 211
Interest expense
- long term - 80 (467) - (472) (859)
- short term - - 17 - (536) (519)
Dilution gain - - 185 - - 185
Income tax provision - 140 (545) - (170) (575)
Non-controlling
interest - - 503 - - 503
------------------------------------------------------
Net earnings $5,503 $2,193 ($205) $4 ($4,064) $3,431
------------------------------------------------------
------------------------------------------------------
Total and
identifiable
assets 23,082 16,350 19,774 887 14,657 74,750
Capital expenditures 921 251 1,285 21 86 2,564
Depreciation and
amortization 513 259 3,587 50 293 4,702
Goodwill - - 4,876 - - 4,876
Year Ended
November 30, 2004
Sales $117,027 $20,594 $46,644 $2,436 - $186,701
Costs and expenses 105,418 18,830 45,916 2,293 3,020 175,477
------------------------------------------------------
Earnings before
undernoted 11,609 1,764 728 143 (3,020) 11,224
Severance and
restructuring costs - - 887 - - 887
------------------------------------------------------
Operating earnings 11,609 1,764 (159) 143 (3,020) 10,337
Interest income - - - - 26 26
Interest expense
- long term - - (240) - (321) (561)
- short term - 140 - - (391) (251)
Income tax recovery - 21 328 - 357 706
Non-controlling
interest - - 36 - - 36
------------------------------------------------------
Net earnings $11,609 $1,925 ($35) $143 ($3,349) $10,293
------------------------------------------------------
------------------------------------------------------
Total and
identifiable
assets 19,080 16,274 17,161 940 13,708 67,163
Capital
expenditures 315 131 1,101 26 230 1,803
Depreciation and
amortization 473 214 3,398 62 325 4,472
Goodwill - - 1,610 - - 1,610
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