Toronto Stock Exchange Symbol: GIN
OAKVILLE, ON, July 7 /CNW/ - Glendale International Corp. (TSX: GIN)
today reported its financial results for the second quarter of fiscal 2005,
ended May 27, 2005.
The quarter was highlighted by:
- Sales of $48.9 million;
- Net earnings of $1.7 million, or $0.13 per share;
- Record sales and operating earnings at the Navigational Aids
business.
"We continued to aggressively market our line of differentiated products
and innovative option packages in our core Recreational Vehicles business,
however, we were challenged by the stronger Canadian dollar, which was 9%
higher in the second quarter of fiscal 2005 than the corresponding period of
fiscal 2004," said Edward C. Hanna, Chief Executive Officer and Chairman,
Glendale International Corp. "As the market leader in innovation, quality and
value, we continue to achieve pre-tax profit margins that are on par with the
largest and most profitable company in the towable RV industry. Our
Electronics business benefited from the acquisition late last year of U.S.-
based Young Electronics, which contributed to the growth in revenue and a
return to pre-tax profitability despite the impact of a stronger Canadian
dollar on the Canadian Circuits division. At our Navigational Aids business,
the improved margins achieved across the company's product line continued to
contribute to growth in operating earnings."
Financial Results
Sales for the second quarter of fiscal 2005 were $48.9 million compared
with $54.9 million for the second quarter of fiscal 2004 as higher sales for
the Navigational Aids and Electronics businesses were offset by lower sales
for the Recreational Vehicles business. Net earnings for the second quarter of
fiscal 2005 were $1.7 million, or $0.13 per share, compared with $2.5 million
(including a restructuring recovery of $0.3 million), or $0.20 per share, for
the second quarter of fiscal 2004.
Sales for the first six months of fiscal 2005 were $86.4 million compared
with $96.1 million for the corresponding period of fiscal 2004. Net income for
the first six months of fiscal 2005 was $1.9 million, or $0.15 per share,
compared with $3.1 million or $0.25 per share for the first six months of
fiscal 2004.
As of May 27, 2005, Glendale International had working capital of
$13.6 million, including cash and cash equivalents of $5.9 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 second quarter of
fiscal 2005 were $29.0 million compared with $36.2 million for the second
quarter of last year. The decline in sales is primarily attributable to the
currency translation impact of U.S. dollar denominated sales, increased price
competition due to the higher Canadian dollar and higher gasoline prices,
which impact the buying decisions of consumers. Operating earnings for the
second quarter of fiscal 2005 were $2.6 million compared with $3.8 million for
the same quarter last year.
Electronics (Firan Technology Group Corporation)
Sales for Firan Technology Group Corporation (TSX:FTG) for the second
quarter of fiscal 2005 increased to $14.2 million from $13.3 million for the
second quarter of fiscal 2004. The increase is primarily attributable to the
contribution of Young Electronics (now referred to as FTG Circuits
Chatsworth), which the company acquired in December 2004. The appreciation in
the Canadian dollar reduced the translated value of U.S.-denominated sales by
$900,000. Sales for the Circuits Division increased to $11.7 million from
$11.2 million and sales for the Aerospace Division increased to $2.4 million
from $2.1 million. Operating earnings for the second quarter of fiscal 2005
were $0.3 million compared to $1.2 million (including a one-time restructuring
recovery of $0.3 million) for the second quarter of fiscal 2004. In accordance
with its ownership position in Firan Technology Group Corporation, Glendale
International recorded a net loss from the company for the second quarter of
fiscal 2005 of $47,000 compared with net earnings of $0.6 million for the
second quarter of fiscal 2004.
Navigational Aids (Fernau Avionics)
Sales for Fernau Avionics for the second quarter of fiscal 2005 increased
to a record $5.2 million from $4.7 million for the second quarter of fiscal
2004. Operating earnings for the second quarter of fiscal 2005 increased to
$0.7 million from $0.3 million for the second quarter of fiscal 2004. The
increase in operating earnings was due in part to the success of initiatives
specifically targeted at improving margins, including revitalization of the
existing product lines, reduction in input costs and improvements in
manufacturing efficiencies.
Outlook
"We are well positioned to capitalize on the opportunities afforded by
the Recreational Vehicles industry, which is projected to grow steadily into
the foreseeable future," said Mr. Hanna. "In the more competitive environment
created by the strength of the Canadian dollar, we are focusing on offering
unique features and options that truly differentiate our products to
consumers. In our Electronics business, FTG Circuits is fully committed to
leveraging its acquisitions to strengthen its competitive position, generate
new business and achieve greater efficiencies, while FTG Aerospace plans to
build upon record results by diversifying its customer base, enhancing its
production capacity and expanding its product offerings. Our Navigational Aids
business is well positioned for continued growth from both the revitalized
ground-based air navigation systems products and the new line of Personal
Locator Beacon products."
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 Six Months Ended
May 27, May 28, May 27, May 28,
2005 2004 2005 2004
-------------------------------------------------------------------------
Sales $48,942 $54,851 $86,441 $96,090
Net Earnings $1,682 $2,522 $1,863 $3,110
-------------------------------------------
Basic and Diluted Net Earnings
per Share $0.13 $0.20 $0.15 $0.25
-------------------------------------------------------------------------
INTERIM CONSOLIDATED BALANCE SHEETS
(in thousands of dollars)
(prepared without audit)
Period Ended
--------------------------------
May 27, Nov 30, May 28,
CURRENT ASSETS 2005 2004 2004
--------------------------------
Cash and cash equivalents $5,861 $5,000 $2,446
Accounts receivable 23,542 19,375 26,052
Income taxes recoverable 620 - -
Inventories 26,104 17,621 21,184
Deposits and prepaid expenses 1,267 1,385 965
Future income taxes 1,613 1,609 1,488
--------------------------------
59,007 44,990 52,135
Property, Plant and Equipment (net) 19,851 20,210 21,897
Intangible Asset 338 353 -
Goodwill 4,541 1,610 1,467
--------------------------------
$83,737 $67,163 $75,499
--------------------------------
--------------------------------
CURRENT LIABILITIES
Bank indebtedness $10,439 $1,809 $6,990
Accounts payable and accrued
liabilities 24,189 22,324 26,407
Income taxes payable 566 701 306
Dividends payable 624 - 1,249
Current portion of long-term debt 9,617 9,235 4,653
--------------------------------
45,435 34,069 39,605
Long-Term Debt 5,159 2,994 4,160
Future Income Taxes 405 405 3,610
Non-Controlling Interest 7,944 6,452 6,079
--------------------------------
58,943 43,920 53,454
SHAREHOLDERS' EQUITY
Share capital 1,249 1,249 1,249
Contributed surplus 8,859 7,960 7,960
Cumulative translation adjustment 265 167 1,157
Retained earnings 14,421 13,867 11,679
--------------------------------
24,794 23,243 22,045
--------------------------------
$83,737 $67,163 $75,499
--------------------------------
--------------------------------
INTERIM CONSOLIDATED STATEMENTS OF EARNINGS
(in thousands of dollars except per share amounts)
(prepared without audit)
Three Months Ended Six Months Ended
------------------------------------------
May 27, May 28, May 27, May 28,
2005 2004 2005 2004
------------------------------------------
Sales $48,942 $54,851 $86,441 $96,090
------------------------------------------
Costs and Expenses
Manufacturing, selling and
administration 44,431 49,334 80,347 87,620
Depreciation and amortization 1,176 1,165 2,378 2,329
Research and development 525 467 955 842
------------------------------------------
46,132 50,966 83,680 90,791
------------------------------------------
Earnings Before Undernoted 2,810 3,885 2,761 5,299
------------------------------------------
Restructuring - (313) - (313)
Severance costs - - 276 1,200
------------------------------------------
Operating Earnings 2,810 4,198 2,485 4,412
Other Income (Expenses)
Interest income 44 6 67 35
Interest expense - long-term (226) (136) (448) (254)
Interest expense - short-term (126) (82) (155) (115)
Dilution gain - - 185 -
------------------------------------------
(308) (212) (351) (334)
Earnings Before Income Taxes
and Non-Controlling Interest 2,502 3,986 2,134 4,078
Provision for income taxes 923 884 927 1,377
------------------------------------------
Earnings Before Non-Controlling
Interest 1,579 3,102 1,207 2,701
Non-controlling interest 103 (580) 656 409
------------------------------------------
Net Earnings $1,682 $2,522 $1,863 $3,110
------------------------------------------
------------------------------------------
Basic Net Earnings per Share $0.13 $0.20 $0.15 $0.25
------------------------------------------
------------------------------------------
Diluted Net Earnings per Share $0.13 $0.20 $0.15 $0.25
------------------------------------------
------------------------------------------
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands of dollars)
(prepared without audit)
Three Months Ended Six Months Ended
------------------------------------------
May 27, May 28, May 27, May 28,
2005 2004 2005 2004
------------------------------------------
Operating Activities
Net earnings $1,682 $2,522 $1,863 $3,110
Items not affecting cash
Depreciation and
amortization 1,176 1,165 2,378 2,329
Stock option expense 31 - 79 -
Future income taxes (32) - (1) -
Non-controlling interest (103) 580 (656) (409)
Dilution gain - - (185) -
Gain on sale of property,
plant and equipment - (313) - (313)
Changes in non-cash operating
working capital (340) (3,056) (8,753) (7,960)
------------------------------------------
2,414 898 (5,275) (3,243)
Investing Activities
Acquisition of Young
Electronics - - (6,202) -
Purchase of capital assets (623) (812) (1,521) (1,231)
Proceeds on sale of property,
plant and equipment - 313 - 313
Other - - - (10)
------------------------------------------
(623) (499) (7,723) (928)
Financing Activities
Change in bank indebtedness 418 (1,346) 8,630 3,818
Issuance of common shares
by FTGC (13) - 2,710 -
New term loan financing - 3,808 3,526 3,808
Repayment of long-term debt
and capital leases (690) (1,781) (818) (2,648)
Due to shareholder 15 116 (184) (61)
------------------------------------------
(270) 797 13,864 4,917
Effect of exchange rate
changes on cash (202) 51 (5) 107
------------------------------------------
Increase in cash and cash
equivalents 1,319 1,247 861 853
Net Cash and Cash Equivalents,
beginning of period 4,542 1,199 5,000 1,593
------------------------------------------
Net Cash and Cash Equivalents,
end of period $5,861 $2,446 $5,861 $2,446
------------------------------------------
------------------------------------------
Supplemental disclosures of
cash flows:
Payments for interest 313 207 565 332
Payments for income taxes 224 711 1,794 3,127
Refunds of income taxes - - - 253
SEGMENTED INFORMATION (Three Months)
(in thousands of dollars)
(prepared without audit)
OPERATING SEGMENTS
------------------------------------------------------------
Three Months Recrea-
Ended tional Elec- Corporate
May 27, 2005 Vehicles Nav Aids tronics Other Office Total
------------------------------------------------------------
Sales $29,028 $5,188 $14,162 $564 - $48,942
Costs and
expenses 26,447 4,492 13,870 554 769 46,132
------------------------------------------------------------
Operating
earnings 2,581 696 292 10 (769) 2,810
Interest
income - 45 - - (1) 44
Interest
expense -
long term - 21 (126) - (121) (226)
Interest
expense -
short term - - - - (126) (126)
Income taxes - (56) (316) - (551) (923)
Non-controlling
interest - - 103 - - 103
------------------------------------------------------------
Net earnings $2,581 $706 ($47) $10 ($1,568) $1,682
------------------------------------------------------------
------------------------------------------------------------
Total and
identifiable
assets 28,094 17,489 22,997 694 14,463 83,737
Capital
expenditures 181 55 380 4 3 623
Depreciation
and
amortization 134 68 888 10 76 1,176
Goodwill - - 4,541 - - 4,541
Three Months
Ended
May 28, 2004
Sales $36,170 $4,703 $13,338 $640 - $54,851
Costs and
expenses 32,347 4,378 12,429 583 1,229 50,966
------------------------------------------------------------
Earnings
before
undernoted 3,823 325 909 57 (1,229) 3,885
Restructuring
recovery - - (313) - - (313)
------------------------------------------------------------
Operating
earnings 3,823 325 1,222 57 (1,229) 4,198
Interest income - 6 - - - 6
Interest
expense -
long term - - (83) - (53) (136)
Interest expense
- short term - - - - (82) (82)
Income taxes - (3) - - (881) (884)
Non-controlling
interest - - (580) - - (580)
------------------------------------------------------------
Net earnings $3,823 $328 $559 $57 ($2,245) $2,522
------------------------------------------------------------
------------------------------------------------------------
Total and
identifiable
assets 26,057 15,382 19,735 719 13,606 75,499
Capital
expenditures 33 439 209 4 127 812
Depreciation
and
amortization 121 57 888 16 83 1,165
Goodwill - - 1,467 - - 1,467
SEGMENTED INFORMATION (Six Months)
(in thousands of dollars)
(prepared without audit)
OPERATING SEGMENTS
------------------------------------------------------------
Six Months Recrea-
Ended tional Elec- Corporate
May 27, 2005 Vehicles Nav Aids tronics Other Office Total
------------------------------------------------------------
Sales $49,665 $9,568 $26,193 $1,015 - $86,441
Costs and
expenses 46,040 8,310 26,438 1,054 1,838 83,680
------------------------------------------------------------
Earnings
before
undernoted 3,625 1,258 (245) (39) (1,838) 2,761
Severance
costs - - 276 - - 276
------------------------------------------------------------
Operating
earnings 3,625 1,258 (521) (39) (1,838) 2,485
Interest
income - 66 - - 1 67
Interest
expense -
long term - 40 (244) - (244) (448)
Interest
expense -
short term - - - - (155) (155)
Dilution gain - - 185 - - 185
Income taxes - (56) (399) - (472) (927)
Non-controlling
interest - - 656 - - 656
------------------------------------------------------------
Net earnings $3,625 $1,308 ($323) ($39) ($2,708) $1,863
------------------------------------------------------------
------------------------------------------------------------
Total and
identifiable
assets 28,094 17,489 22,997 694 14,463 83,737
Capital
expenditures 675 80 739 8 19 1,521
Depreciation
and
amortization 264 131 1,802 27 154 2,378
Goodwill - - 4,541 - - 4,541
Six Months
Ended
May 28, 2004
Sales $62,973 $9,010 $22,816 $1,291 - $96,090
Costs and
expenses 56,379 8,356 22,714 1,163 2,179 90,791
------------------------------------------------------------
Earnings before
undernoted 6,594 654 102 128 (2,179) 5,299
Restructuring
recovery - - (313) - - (313)
Severance costs - - 1,200 - - 1,200
------------------------------------------------------------
Operating
earnings 6,594 654 (785) 128 (2,179) 4,412
Interest income - 11 - - 24 35
Interest
expense -
long term - - (136) - (118) (254)
Interest expense
- short term - - - - (115) (115)
Income taxes - (3) 120 - (1,494) (1,377)
Non-controlling
interest - - 409 - - 409
------------------------------------------------------------
Net earnings $6,594 $662 ($392) $128 ($3,882) $3,110
------------------------------------------------------------
------------------------------------------------------------
Total and
identifiable
assets 26,057 15,382 19,735 719 13,606 75,499
Capital
expenditures 131 449 506 6 139 1,231
Depreciation
and
amortization 245 111 1,775 33 165 2,329
Goodwill - - 1,467 - - 1,467
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