OAKVILLE, ON, Oct. 13 /CNW/ -- Glendale International Corp. (TSX: GIN) today reported financial results for the third quarter ended August 28, 2009.
Glendale International Corp. reports segmented information in its unaudited interim consolidated financial statements as follows: Recreational Vehicles, Electronics, (only up to and including second quarter of 2009) and Corporate Office. The financial results for the third quarter ended August 28, 2009 and year to date 2009 compared to the same periods in 2008 for each segment are set out below:
Recreational Vehicles (Glendale RV and Travelaire Canada)
The Recreational Vehicle segment is comprised of two operating divisions, Glendale RV located in Strathroy, Ontario and Travelaire located in Red Deer, Alberta.
Glendale RV
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Net loss for the Glendale RV division for the third quarter was $1,012,000 compared to net loss of $1,417,000 for the third quarter of 2008. Year to date net loss was $3,095,000 compared to a loss of $1,747,000 for the same period last year. Sales at Glendale RV were $4,273,000 in the third quarter of 2009 compared to $3,398,000 in 2008. Year to date sales were $8,991,000 compared to $16,581,000 for the same period in 2008. The increase in sales and decrease in net loss for the third quarter result from a small pick up in the RV Industry. However, the year to date numbers continue to be impacted by the negative conditions of the North American economy.
Travelaire
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Net loss for the Travelaire division for the third quarter was $235,000 compared to a net loss of $756,000 for the third quarter of 2008. Year to date loss was $1,264,000 compared to $2,343,000 for the same period in 2008. Sales at Travelaire were $2,027,000 in the current quarter compared to $1,376,000 in 2008. Year to date sales were $6,041,000 compared to $6,723,000 in 2008.
The increase in sales at Travelaire in the third quarter, compared to the same period last year, was the result of orders for commercial products received and shipped during the quarter. Year to date sales in 2009 as compared to the same period of 2008 relate to lower activity in the resource sector and the economic factors affecting the RV Industry. The reduction in net loss in the third quarter and year to date was due to lower production and overhead costs associated with the scale back in production.
With respect to the third quarter of 2009 Mr. Edward Hanna, Chief Executive Officer of Glendale indicated that "the loss during the quarter for the Recreational Vehicle Segment was primarily the result of a significant decline in demand for our recreational vehicle and commercial products due to the unprecedented negative economic environment. The decline in the RV industry appears to have leveled off. Industry shipments through August 2009 were 47% lower than the same period of 2008 however August shipments were 5% ahead of August 2008, the first increase in more than two years. Glendale sales are off 35% year to date over the same period in 2008 but are up 31% for the third quarter over the third quarter 2008. While the sales upturn is encouraging we still expect a long and slow recovery. The Corporation is debt free and has working capital of $11,517,000 including cash of $2,369,000 as at August 28, 2009."
Corporate Office
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Corporate office incurred expenses of $733,000 during the third quarter of 2009 compared to $419,000 during the third quarter of 2008. Year to date expenses were $1,793,000 compared to $1,820,000 for the same period in 2008. The increase relates to the restructuring costs and foreign exchange rate differences.
Consolidated Financial Results
Consolidated sales for the third quarter of 2009 were $6,300,000 compared to $20,522,000 for the third quarter of last year. Net loss for the third quarter of 2009 was $2,100,000, or $0.23 per share, compared to net loss of $2,231,000, or $0.24 per share, for the third quarter of 2008.
Consolidated sales year to date were $44,360,000 compared to $69,108,000 for the same period last year. Net loss was $6,588,000, or $0.71 per share, compared to $4,812,000, or $0.52 per share, for the same period in 2008.
About Glendale International Corp.
Glendale International Corp. manages businesses that provide the opportunity for long-term value creation through the application of proven managerial expertise and innovative business strategies. The Corporation owns businesses in the recreational vehicles and electronics industries, and will seek to acquire complementary businesses that support its value-building proposition.
Glendale's Recreational Vehicle business is comprised of two operating divisions: Glendale Recreational Vehicles ("Glendale RV") located in Strathroy, Ontario and Travelaire Canada ("Travelaire") located in Red Deer, Alberta. Glendale RV manufactures a broad range of innovative, differentiated high-quality Recreational Vehicles ("RV's") for both the US and Canadian markets and Travelaire manufactures Park Model trailers and Relocatable Structures for the Western Canadian market place. The Corporation also has a significant equity position in Firan Technology Group Corporation, a leading North American manufacturer of high technology printed circuit boards and precision illuminated display systems.
Glendale International's common shares are listed on the Toronto Stock Exchange ("TSX") under the symbol "GIN". The Corporation has 12,487,017 common shares outstanding.
To reach Glendale International via the worldwide web logon to www.glendaleint.com.
Forward-Looking Statements
This press release contains "forward-looking" statements related to future events or future performance and reflects the expectations of Glendale International Corp., regarding its growth, results of operations, performance and business prospects, and opportunities and trends affecting the recreational vehicles, and electronics industries. Such forward-looking statements reflect current beliefs of management and are based on information currently available. In certain cases, forward-looking statements can be identified by the use of words such as "believe", "expects", "will", "intends", "projects", "anticipates", "estimates", "continues" or similar words or the negative of these or other comparable terminology. Readers are cautioned that forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Accordingly, investors should not place undue reliance on forward-looking information. Any forward-looking statements included in this press release are made as of the date of this press release and Glendale International Corp. assumes no obligation to update or revise them to reflect new events or circumstances.
GLENDALE INTERNATIONAL CORP.
Interim Consolidated Balance Sheets
(in thousands of dollars)
(prepared without audit)
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As at
August 28, November 30,
2009 2008
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CURRENT ASSETS
Cash $2,369 $6,538
Accounts receivable 3,753 16,358
Income taxes receivable 51 501
Inventories 8,211 22,816
Deposits and prepaid expenses 151 656
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14,535 46,869
Note Receivable 1,967 1,967
Investment 7,914 -
Accrued Benefit Asset 1,351 1,314
Future Income Taxes 459 880
Property, Plant and Equipment, net of
accumulated depreciation 1,793 9,374
Goodwill - 4,910
Other Intangible Assets - 431
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$28,019 $65,745
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CURRENT LIABILITIES
Bank indebtedness - $2,977
Accounts payable and accrued liabilities 3,008 14,152
Current portion of long-term debt and
capital leases 10 1,843
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3,018 18,972
Long-Term Debt and Capital Leases 10 6,121
Deferred Gain on Sale of Property 1,810 2,462
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4,838 27,555
Non-Controlling Interest - 7,397
SHAREHOLDERS' EQUITY
Share capital 1,249 1,249
Share purchase financing (4,450) (4,450)
Contributed surplus 9,501 10,216
Accumulated other comprehensive income 15 324
Retained earnings 16,866 23,454
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23,181 30,793
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$28,019 $65,745
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GLENDALE INTERNATIONAL CORP.
Interim Consolidated Statements of Loss
(in thousands of dollars except per share amounts)
(prepared without audit)
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Three Months Ended Nine Months Ended
August 28, August 29, August 28, August 29,
2009 2008 2009 2008
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Sales $6,300 $20,522 $44,360 $69,108
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Costs and Expenses
Manufacturing, selling
and administration 8,125 21,342 46,928 70,150
Research and development
costs - 715 1,860 2,912
Recovery of research and
development costs - - (50) -
Loss/(gain) on sale of
property, plant and
equipment - 1 (1) 1
Amortization of deferred
gain (218) (217) (652) (652)
Amortization of
intangible assets - - 24 -
Depreciation and
amortization 97 849 1,558 2,487
Stock based compensation 17 51 86 148
Restructuring costs 249 117 480 325
Foreign exchange
loss/(gain) 10 (65) 597 (57)
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8,280 22,793 50,830 75,314
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Loss Before Undernoted (1,980) (2,271) (6,470) (6,206)
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Other (Expenses)/Income
Equity in operations of
affiliated company (115) - (115) -
Interest income 21 111 76 422
Interest expense -
long term - (124) (233) (387)
Interest expense -
short term - (56) (57) (163)
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(94) (69) (329) (128)
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Loss Before Income Taxes
and Non-Controlling
Interest ($2,074) ($2,340) ($6,799) ($6,334)
(Provision for)/recovery
of income taxes (26) 217 (131) 1,155
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Loss Before
Non-Controlling Interest ($2,100) ($2,123) ($6,930) ($5,179)
Non-controlling interest - (108) 342 367
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Net Loss ($2,100) ($2,231) ($6,588) ($4,812)
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Basic and Diluted Net
Loss per Share ($0.23) ($0.24) ($0.71) ($0.52)
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GLENDALE INTERNATIONAL CORP.
Interim Consolidated Statements of Cash Flows
(in thousands of dollars)
(prepared without audit)
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Three Months Ended Nine Months Ended
August 28, August 29, August 28, August 29,
2009 2008 2009 2008
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Operating Activities
Net loss ($2,100) ($2,231) ($6,588) ($4,812)
Items not affecting cash
Amortization of
deferred gain (218) (217) (652) (652)
Depreciation and
amortization 97 849 1,558 2,487
Amortization of
intangible assets - - 24 -
Stock based
compensation expense 17 51 86 148
Future income taxes 50 (306) 181 (1,143)
Non-controlling
interest - 108 (342) (367)
Loss/(gain) on sale of
property, plant and
equipment - 1 (1) 1
Increase in accrued
benefit asset - (97) (37) (189)
Effect of exchange
rates on foreign
currency denominated
Canadian debt - 273 (501) 245
Equity in operations of
affiliated company 115 - 115 -
Changes in non-cash
operating working
capital (250) 2,093 3,353 (2,603)
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(2,289) 524 (2,804) (6,885)
Investing Activities
Cash reduction on
commencement of equity
accounting (527) - (527) -
Purchase of property,
plant and equipment (4) (172) (1,256) (739)
Proceeds on sale of
property, plant and
equipment - - 1 -
Restricted cash - - - 201
Acquisition of Filtran
Microcircuits Inc. - - - (1,462)
Share purchase financing 55 55 165 166
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(476) (117) (1,617) (1,834)
Financing Activities
(Decrease)/increase in
bank indebtedness - (590) (999) 2,077
Proceeds from capital
expenditure facility - - 1,667 501
Repayment of long-term
debt and capital leases - (347) (925) (984)
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- (937) (257) 1,594
Effect of foreign
exchange rates on cash - 32 509 90
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Decrease in cash (2,765) (498) (4,169) (7,035)
Cash, Beginning of Period 5,134 11,006 6,538 17,543
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Cash, End of Period $2,369 $10,508 $2,369 $10,508
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Supplemental cash flow
information:
Payments for interest $1 $175 $287 $544
Payments for income taxes - $75 $4 $77
Refunds for income taxes $176 $313 $176 $1,518
GLENDALE INTERNATIONAL CORP.
Segmented Information
(in thousands of dollars)
(prepared without audit)
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OPERATING SEGMENTS
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Three Months Ended Recreational Electronics Corporate Total
August 28, 2009 Vehicles Office
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Sales $6,300 - - $6,300
Costs and expenses 7,547 - 733 8,280
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Loss before undernoted (1,247) - (733) (1,980)
Equity in operations of
affiliated company - - (115) (115)
Interest income - - 21 21
Income tax provision - - (26) (26)
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Net loss ($1,247) - ($853) ($2,100)
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Total and identifiable
assets $12,767 - $15,252 $28,019
Capital expenditures $2 - $2 $4
Depreciation and
amortization $95 - $2 $97
Three Months Ended
August 29, 2008
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Sales $4,774 $15,748 - $20,522
Costs and expenses 6,947 15,427 419 22,793
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Loss before undernoted (2,173) 321 (419) (2,271)
Interest income - - 111 111
Interest expense - long
term - (124) - (124)
Interest expense - short
term - (46) (10) (56)
Income tax recovery - 39 178 217
Non controlling interest - (108) - (108)
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Net loss ($2,173) $82 ($140) ($2,231)
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Total and identifiable
assets $11,691 $22,722 $31,022 $65,435
Capital expenditures $57 $115 - $172
Depreciation and
amortization $125 $719 $5 $849
Goodwill - $4,887 - $4,887
GLENDALE INTERNATIONAL CORP.
Segmented Information
(in thousands of dollars)
(prepared without audit)
-------------------------------------------------------------------------
OPERATING SEGMENTS
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Nine Months Ended Recreational Electronics Corporate Total
August 28, 2009 Vehicles Office
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Sales $15,032 $29,328 - $44,360
Costs and expenses 19,391 29,646 1,793 50,830
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Loss before undernoted (4,359) (318) (1,793) (6,470)
Equity in operations of
affiliated company - - (115) (115)
Interest income - - 76 76
Interest expense - long
term - (233) - (233)
Interest expense - short
term - (52) (5) (57)
Income tax provision - (4) (127) (131)
Non-controlling interest - 342 - 342
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Net loss ($4,359) ($265) ($1,964) ($6,588)
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Total and identifiable
assets $12,767 - $15,252 $28,019
Capital expenditures $43 $1,211 $2 $1,256
Depreciation and
amortization $291 $1,261 $6 $1,558
Nine Months Ended
August 29, 2008
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Sales $23,304 $45,804 - $69,108
Costs and expenses 27,394 46,100 1,820 75,314
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Loss before undernoted (4,090) (296) (1,820) (6,206)
Interest income - - 422 422
Interest expense - long
term - (387) - (387)
Interest expense - short
term - (141) (22) (163)
Income tax recovery - 173 982 1,155
Non-controlling interest - 367 - 367
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Net loss ($4,090) ($284) ($438) ($4,812)
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Total and identifiable
assets $11,691 $22,722 $31,022 $65,435
Capital expenditures $228 $511 - $739
Depreciation and
amortization $373 $2,100 $14 $2,487
Goodwill - $4,887 - $4,887
%SEDAR: 00002453E
