-------------------------------------------------------------------------
Second quarter and first six months ended May 31, 2008
------------------------------------------------------
- Net earnings amounted to $9.1 million, up 5.2%, or $0.40 per share for
the second quarter. They totalled $15.7 million, up 7.5%, or $0.68 per
share for the first six months of 2008.
- Excellent financial position - the interest-bearing debt/equity ratio
stood at 3.2% and working capital at $125.9 million, for a current
ratio of 3.7:1.
- Purchase of 324,800 common shares under the normal course issuer bid,
for a cash consideration of $6.1 million.
- Acquisition of a distributor in North Carolina closed on April 7, 2008.
-------------------------------------------------------------------------
TSX: RCH
MONTREAL, July 9 /CNW Telbec/ - Richelieu achieved a solid performance in the first six months of 2008, as its net earnings grew by 7.5% to $15.7 million or $0.68 per share, of which $9.1 million and $0.40 per share in the second quarter. During the three months ended May 31, 2008, profit margins improved over the corresponding quarter of 2007 and free cash flows continued to increase. The Company ended the period with working capital of $125.9 million and a strong financial position with an almost debt-free balance sheet.
In the second quarter, Richelieu recorded appreciable internal growth in its Canadian markets, especially in the residential and commercial woodworking segment and the retailers and renovation superstores market, mostly in Eastern and Western Canada. In the United States, although the overall business remained satisfactory despite the economic slowdown prevailing for several months, the negative effect of the exchange rate on U.S. sales converted into Canadian dollars could not be entirely offset. The Florida market was the most affected during the quarter and the Company is redoubling its development efforts with a more comprehensive product offering in this region. Consequently, U.S. sales declined in the second quarter, lowering total sales by 1.3% to $114.8 million for the second quarter. For the first six months, they amounted to $210.9 million, remaining at the same level as in the first half of 2007.
"We plan to increase our market share and cross-selling in the coming periods. While they hold further challenges, current economic conditions could also bring various opportunities that we should be able to seize thanks to our leadership and financial position. We continue to analyze acquisition projects, some of which could be completed as long as they match our criteria of earnings and potential synergies with our existing operations, and to put every effort into achieving the objectives set for the year ending November 30, 2008," indicated Richard Lord, President and Chief Executive Officer of Richelieu.
OPERATING RESULTS FOR THE SECOND QUARTER AND FIRST SIX MONTHS ENDED
MAY 31, 2008 COMPARED WITH THE SECOND QUARTER AND FIRST SIX MONTHS ENDED
MAY 31, 2007
Second-quarter consolidated sales totalled $114.8 million, compared with $116.3 million for the second quarter of 2007. This 1.3% decrease mainly reflects the erosion of the exchange rate on U.S. sales converted into Canadian dollars, resulting in a sales decline of approximately $2.4 million; this factor was combined with a certain slowdown in sales in the United States stemming from the economic conditions prevailing for several months. Excluding the impact of the increase in the Canadian dollar in relation to the U.S. dollar, second-quarter consolidated sales would have increased by about 0.8%.
Sales to manufacturers amounted to $95.0 million, down 2.5% from the corresponding quarter of 2007. This decline is due to the aforementioned factors, namely the impact of the conversion of U.S. sales into Canadian dollars and the slowdown in the American economy. Sales to hardware retailers and renovation superstores, recorded mostly in Canada, grew by 5.2% to $19.8 million.
In Canada, sales amounted to $95.7 million, up 1.8%, of which 1.3% came from internal growth and 0.5% from the acquisition of Sasco (Nova Scotia) closed in May 2007. This growth was primarily achieved in the residential and commercial woodworking and hardware retailers markets including renovation superstores. Sales in Canada accounted for 83.3% of the quarter's consolidated sales. As previously indicated, sales in the United States slightly declined, to US$19.0 million, down 3.7% (in U.S. dollars) from the corresponding quarter of 2007. This change stems from a 5.5% negative internal growth and a 1.8% growth-by-acquisition due to the contribution of Village Square Cabinet Supply (Tennessee) acquired in the second quarter of 2007 and of Top Supplies (North Carolina) for about seven weeks since this distributor was acquired on April 7, 2008. Considering the exchange rate, sales in the United States amounted to CA$19.1 million, compared with CA$22.3 million for the second quarter of 2007. They accounted for 16.7% of the quarter's consolidated sales.
Sales
(in thousands of $)
Periods ended 3 months 6 months
May 31 Change Change
2008 2007 (%) 2008 2007 (%)
-------------------------------------------------------------------------
Canada 95,718 94,024 + 1.8 174,569 169,891 + 2.8
United States
(CA$) 19,127 22,307 - 14.3 36,358 40,949 - 11.2
(US$) 19,031 19,761 - 3.7 36,181 35,841 + 0.9
Average
exchange rate 1.0051 1.1288 1.0049 1.1425
-------------------------------------------------------------------------
Consolidated
sales 114,845 116,331 - 1.3 210,927 210,840 0.0
-------------------------------------------------------------------------
First-half consolidated sales totalled $210.9 million, remaining
relatively stable compared with the corresponding period of 2007. Excluding
the impact of the rise in the Canadian dollar in relation to the U.S. dollar,
consolidated sales for the first six months of the year would have increased
by 2.5%.
Sales to manufacturers amounted to $173.5 million, a slight decline of
0.4% from the same period of 2007, due to the aforementioned factors, namely
the impact of the conversion of U.S. sales into Canadian dollars and the
slowdown in the American economy. Sales to hardware retailers including
renovation superstores grew by 2.1% to $37.5 million.
During the first six months of the year, Richelieu achieved satisfactory
sales growth in Canada, where its sales totalled $174.6 million, an increase
of 2.8%, including 2.3% from internal growth and 0.5% from the acquisition of
Sasco. This growth was achieved in both the manufacturers and the hardware
retailers and renovation superstores market. Canadian sales accounted for
82.8% of first-half consolidated sales. In the United States, sales amounted
to US$36.2 million for the first six months of the year, up 0.9% (in
U.S. dollars) thanks to a 4.4% growth-by-acquisition and a 3.5% negative
internal growth due to the second-quarter slowdown. Considering the exchange
rate, sales totalled CA$36.4 million, compared with CA$41.0 million for the
first six months of the previous year. They accounted for 17.2% of the
period's consolidated sales.
Consolidated EBITDA and EBITDA margin
(in thousands of $)
Periods ended 3 months 6 months
May 31 Change Change
2008 2007 (%) 2008 2007 (%)
-------------------------------------------------------------------------
Sales 114,845 116,331 - 1.3 210,927 210,840 0.0
EBITDA 14,980 14,784 + 1.3 25,548 25,255 + 1.2
EBITDA margin
(%) 13.0 12.7 12.1 12.0
-------------------------------------------------------------------------
Second-quarter earnings before income taxes, interest, amortization and
non-controlling interest (EBITDA) stood at $15.0 million, up 1.3% over the
corresponding quarter of 2007. The gross profit and EBITDA margins improved
over the second quarter of the previous year, when they had been affected by
an increase in raw material costs and the sudden devaluation of the Canadian
dollar in relation to the U.S. dollar and the Euro in late 2006 and early
2007. For the second quarter of 2008, the EBITDA margin improved to 13.0% from
12.7% in the same period of 2007; however, it did not reach its historic level
due to the expenses related to the introduction of new product lines to the
retailers and renovation superstores market.
Interest decreased by approximately $0.3 million, as interest-bearing debt
was reduced by more than half from the second quarter of 2007, whereas
amortization of capital and intangible assets increased by about $0.2 million
and $41,000 respectively.
Income taxes decreased by $0.2 million to $4.4 million, due to the
reduction in the Canadian tax rate effective January 1, 2008.
First-half earnings before income taxes, interest, amortization and
non-controlling interest (EBITDA) grew by 1.2% to $25.5 million, and the
EBITDA margin improved to 12.1%.
Interest decreased by approximately $0.5 million, reflecting the major
reduction in interest-bearing debt. Amortization of capital and intangible
assets increased by about $0.3 million and $81,000 respectively.
Income taxes amounted to $7.1 million, down by some $0.7 million due to
the aforementioned reduction in the Canadian tax rate.
Consolidated net earnings
(in thousands of $)
Periods ended 3 months 6 months
May 31 Change Change
2008 2007 (%) 2008 2007 (%)
-------------------------------------------------------------------------
EBITDA 14,980 14,784 + 1.3 25,548 25,255 + 1.2
Amortization
of capital
and intangible
assets 1,288 1,093 2,540 2,197
Interest 99 350 125 583
Income taxes 4,434 4,603 7,093 7,754
Non-controlling
interest 59 87 62 97
-------------------------------------------------------------------------
Net earnings 9,100 8,651 + 5.2 15,728 14,624 + 7.5
Net profit
margin (%) 7.9 7.4 7.5 6.9
-------------------------------------------------------------------------
Comprehensive
income 9,404 8,398 + 12.0 15,493 14,361 + 7.9
-------------------------------------------------------------------------
Second-quarter net earnings grew by 5.2% to $9.1 million. The net profit
margin improved to 7.9% of consolidated sales, compared with 7.4% for the
second quarter of 2007. This increase is due to the improvement in gross
profit and EBITDA margins and the reduction in interest and income taxes.
Earnings per share amounted to $0.40 (basic and diluted), up 8.1%, whereas the
number of shares and options outstanding did not decrease significantly over
the past 12 months.
Comprehensive income totalled $9.4 million, on account of a latent foreign
exchange gain of $0.3 million on translation of the financial statements of
the subsidiary in the United States (changed from integrated to
self-sustaining foreign operations effective September 1, 2007).
First-half net earnings grew by 7.5% to $15.7 million. The net profit
margin improved to 7.5% of consolidated sales, compared with 6.9% for the
first six months of 2007. As previously indicated, this increase is due to the
improvement in gross profit and EBITDA margins and the reduction in interest
and income taxes. Earnings per share amounted to $0.68 (basic and diluted),
up 7.9%, whereas the number of shares and options outstanding did not decrease
significantly over the past 12 months.
Comprehensive income totalled $15.5 million, on account of latent foreign
exchange losses of $0.3 million on translation of the financial statements of
the subsidiary in the United States.
FINANCIAL POSITION
Analysis of principal cash flows for the second quarter and first
six months ended May 31, 2008
Change in cash and cash equivalents and capital resources
(in thousands of $)
3 months 6 months
Periods ended May 31 2008 2007 2008 2007
-------------------------------------------------------------------------
Cash flows provided by
(used for):
Operating activities 10,964 9,017 12,066 6,496
Financing activities (7,092) (1,710) (9,838) (3,386)
Investing activities (2,984) (5,598) (3,491) (7,030)
Effect of exchange rate
fluctuations (149) (452) (207) (452)
-------------------------------------------------------------------------
Net change in cash and cash
equivalents 739 1,257 (1,470) (4,372)
Cash and cash equivalents,
beginning of period 5,670 1,335 7,879 6,964
Cash and cash equivalents, end of
period 6,409 2,592 6,409 2,592
-------------------------------------------------------------------------
Working capital 125,876 111,411 125,876 111,411
Renewable line of credit 26,000 26,000 26,000 26,000
-------------------------------------------------------------------------
Second-quarter operating activities provided cash flows (before net change
in non-cash working capital balances related to operations) of $10.8 million
or $0.47 per share, up from $10.2 million or $0.44 per share for the second
quarter of 2007, mainly reflecting the growth in net earnings. Net change in
non-cash working capital balances related to operations provided cash flows of
$0.1 million, whereas it had used cash flows of $1.2 million for the second
quarter of 2007. Consequently, operating activities provided cash flows of
$11.0 million, compared with $9.0 million for the second quarter of 2007.
Financing activities used cash flows of $7.1 million, compared with
$1.7 million for the second quarter of 2007. Richelieu paid a total of
$1.8 million in shareholder dividends, up from $1.6 million for the second
quarter of 2007; this rise reflects the dividend rate increases announced on
January 31 and March 27, 2008. In addition, on March 12, 2008, 286,500 common
shares were purchased for a consideration of $5.3 million under the normal
course issuer bid, whereas no shares were purchased in the second quarter of
2007.
Investing activities used cash flows of $3.0 million, compared with
$5.6 million in the second quarter of the previous year when Richelieu had
acquired two distributors. In the second quarter of 2008, the Company invested
more than $2.7 million in the design and manufacture of displays for the
retailers market, the purchase of manufacturing equipment and various capital
assets including the improvement of business premises, and more than
$0.2 million to acquire the principal net assets of Top Supplies (the balance
of purchase price amounts to US$400).
First-half cash flows from operating activities (before net change in
non-cash working capital balances related to operations) increased by 8.3% to
$18.8 million or $0.82 per share, up from $17.4 million or $0.75 per share for
the first six months of 2007, mainly reflecting the growth in net earnings.
Net change in non-cash working capital balances related to operations used
cash flows of $6.8 million, compared with $10.9 million for the first six
months of 2007. Consequently, operating activities provided cash flows of
$12.1 million, up from $6.5 million for the first half of 2007.
Financing activities used cash flows of $9.8 million, compared with
$3.4 million for the same period of 2007. The Company paid $3.7 million in
shareholder dividends, up from $3.2 million in the first half of 2007; this
rise reflects the dividend rate increases announced on January 31 and
March 27, 2008. In addition, common shares were purchased for a consideration
of $6.1 million under the normal course issuer bid, whereas no shares were
purchased in the first six months of 2007.
Investing activities used cash flows of $3.5 million, compared with
$7.0 million in the first half of the previous year. In the first six months
of the year, the Company invested more than $3.2 million in the design and
manufacture of displays for the retailers market, the purchase of
manufacturing equipment and various capital assets including the improvement
of business premises, and more than $0.2 million to acquire the principal net
assets of Top Supplies.
Sources of financing
As at May 31, 2008, cash and cash equivalents totalled $6.4 million, up
from $2.6 million at the end of the corresponding period of 2007. The Company
posted an excellent working capital of $125.9 million for a current ratio of
3.7:1, compared with $111.5 million and a 3.4:1 ratio as at May 31, 2007.
Richelieu estimates that it has the capital resources needed to fulfill
its commitments and respect its ongoing obligations in the second half of
2008. Its cash flows from operating activities should suffice for the funding
requirements arising from its growth strategy and its financing and investing
activities planned for the year. Furthermore, the Company has an authorized
line of credit of $26.0 million, renewable annually and bearing interest at
the bank's prime rate, as well as easy access to other outside financing if
necessary.
The expectation set forth above consists of forward-looking information
based on the assumption that economic conditions and exchange rate will not
deteriorate significantly, operating expenses will not increase considerably,
deliveries will be sufficient to fulfill Richelieu's requirements and no
unusual events will entail additional capital expenditures. This expectation
also remains subject to the risks identified under "Risk Management" on
page 38 of the Company's 2007 Annual Report.
Balance sheet analysis
Summary balance sheet
As at May 31 2008 2007
(in thousands of $)
-------------------------------------------------------------------------
Current assets 172,494 157,342
Long-term assets 94,216 98,147
-------------------------------------------------------------------------
Total 266,710 255,489
-------------------------------------------------------------------------
Current liabilities 46,618 45,831
Long-term liabilities 4,610 11,377
Shareholders' equity 215,482 198,281
-------------------------------------------------------------------------
Total 266,710 255,489
-------------------------------------------------------------------------
Assets
As at May 31, 2008, total assets amounted to $266.7 million, up from
$255.5 million a year earlier, an increase of 4.4%. Current assets grew by
9.6% or $15.2 million, due primarily to a $3.8 million growth in cash and cash
equivalents, a $11.4 million rise in inventories related to acquisitions, the
new distribution centre located in Barrie, Ontario, the innovations introduced
over the past 12 months, the medium and long-term agreements signed with major
Canadian renovation chains and to meet future demand.
Total interest-bearing debt
As at May 31 2008 2007
(in thousands of $)
-------------------------------------------------------------------------
Current portion of long-term debt 6,555 6,685
Long-term debt 298 7,196
-------------------------------------------------------------------------
Total 6,853 13,881
-------------------------------------------------------------------------
less cash and cash equivalents 6,409 2,592
Total debt net of cash 444 11,289
-------------------------------------------------------------------------
Richelieu has reduced its total interest-bearing debt by more than half
over the past 12 months, bringing it to $6.9 million as at May 31, 2008. After
deducting cash and cash equivalents, the Company had a total net debt of
$0.4 million as at May 31, 2008. Richelieu remains in a healthy and solid
financial position, with low indebtedness and substantial cash flows generated
every year, enabling it to pursue its growth and expansion, particularly
through the acquisition of companies specializing in its business sector.
Shareholders' equity totalled $215.5 million as at May 31, 2008, up from
$198.3 million a year earlier, a growth of 8.7% reflecting the increases of
$22.3 million in retained earnings which amounted to $201.7 million as at
May 31, 2008, and of $1.0 million in contributed surplus, less accumulated
comprehensive income of $6.4 million. As at May 31, 2008, the book value
per share was $9.45, up from $8.60 as at May 31, 2007.
The total interest-bearing debt/equity ratio stood at 3.2%, compared with
7.0% as at May 31, 2007.
As at May 31, 2008, Richelieu's share capital consisted of
22,802,937 common shares (23,100,737 common shares as at November 30, 2007)
due to the issue of 27,000 common shares under the share option plan and the
purchase of 324,800 common shares for cancellation purposes, and 766,000
options (640,000 options as at November 30, 2007) were outstanding.
GROWTH OUTLOOK
"During the next two quarters, we will remain focused on our two-tiered
development strategy: increasing our market share to drive internal growth in
the United States and Canada, and completing profitable acquisitions," added
Mr. Lord.
The expectation set forth above consists of forward-looking information
based on the assumption that economic conditions and exchange rates will not
deteriorate significantly, operating expenses will not increase considerably,
deliveries will be sufficient to fulfill Richelieu's requirements and no
unusual events will entail additional capital expenditures. This expectation
also remains subject to the risks identified under "Risk Management" on
page 38 of the Company's 2007 Annual Report.
NEXT DIVIDEND PAYMENT
At its meeting on July 9, 2008, the Board of Directors approved the
payment of a quarterly dividend of $0.08 per share. This dividend is payable
on August 6, 2008 to shareholders of record as at July 23, 2008.
PROFILE as at May 31, 2008
Richelieu Hardware Ltd. is a leading North American distributor, importer
and manufacturer of specialty hardware and complementary products. Its
products are targeted to an extensive customer base of kitchen and bathroom
cabinet, furniture, and window and door manufacturers plus the residential and
commercial woodworking industry, as well as a large customer base of hardware
retailers, including renovation superstores. Richelieu offers customers a
broad mix of high-end products sourced from manufacturers around the world.
Its product selection consists of close to 55,000 different items targeted to
a base of over 38,000 customers who are served by 48 centres in North America
- 30 distribution centres across Canada, 16 in the United States and
two manufacturing plants in Canada, specifically Cedan Industries Inc. which
specializes in the manufacture of a wide variety of veneer sheets and
edgebanding products, and Menuiserie des Pins Ltee which manufactures
components for the window and door industry, a broad selection of mouldings,
and various types of tackboards and whiteboards.
Notes to readers - Richelieu uses earnings before income taxes, interest,
amortization and non-controlling interest ("EBITDA") because this measure
enables management to assess the Company's operational performance. This
measure is a widely accepted financial indicator of a company's ability to
service and incur debt. However, EBITDA should not be considered by an
investor as an alternative to operating income or net earnings, an indicator
of operating performance or cash flows, or as a measure of liquidity. Because
EBITDA is not a standardized measurement as prescribed by GAAP, it may not be
comparable to the EBITDA of other companies. Certain statements set forth in
this press release, such as statements about the growth outlook, constitute
forward-looking statements. In some cases, these statements are identified by
the use of terms such as "may", "could", "might", "intend", "should",
"expect", "project", "plan", "believe", "estimate" or the negative form of
these expressions or other comparable variants. These statements are based on
the information available at the time they are written, on assumptions made by
management and on the expectations of management, acting in good faith,
regarding future events, including those relating to economic conditions,
fluctuations in exchange rates and operating expenses, and the absence of
unusual events entailing supplementary expenditures. Although management
considers these assumptions and expectations reasonable based on the
information available at the time they are written, they could proved
inaccurate. Forward-looking statements are also subject, by their very nature,
to known and unknown risks and uncertainties such as those related to the
industry, acquisitions, labour relations, credit, key officers, supply,
product liability, and other factors set forth in the Management's Report
included in the Company's Annual Report as well as its Annual Information
Form, which are available on the System for Electronic Document Analysis and
Retrieval (SEDAR) website at www.sedar.com. Richelieu's actual results could
differ materially from those indicated or underlying these forward-looking
statements. The reader is therefore recommended not to unduly rely on these
forward-looking statements. Forward-looking statements do not reflect the
potential impact of special items, any business combination or any other
transaction that may be announced or occur subsequent to the date hereof.
Richelieu undertakes no obligation to update or revise the forward-looking
statements to account for new events or new circumstances, except where
provided for by applicable legislation.
CONFERENCE CALL ON JULY 9, 2008 AT 2:30 P.M. (EASTERN TIME)
-----------------------------------------------------------
Financial analysts and investors interested in participating in the
conference call on Richelieu's results to be held at 2:30 p.m. on July 9,
2008, can dial 1-800-733-7560 a few minutes before the start of the call. For
those unable to participate, a taped rebroadcast will be available as of
4:30 p.m. on July 9, 2008, until midnight on July 17, 2008, by dialing
1-877-289-8525, access code: 21276412(number sign). Members of the media are invited to
listen in.
Consolidated statements of earnings (unaudited)
(in thousands of dollars, except per-share amounts)
For For
the six months the three months
ended May 31, ended May 31,
-------------------------------------------------------------------------
2008 2007 2008 2007
-------------------------------------------------------------------------
$ $ $ $
Sales 210,927 210,840 114,845 116,331
Cost of sales, warehouse,
selling and
administrative expenses 185,379 185,585 99,865 101,547
-------------------------------------------------------------------------
Earnings before the following 25,548 25,255 14,980 14,784
Interest on short-term debt, net (44) 84 25 96
Interest on long-term debt 169 499 74 254
Amortization of capital assets 2,058 1,796 1,047 893
Amortization of intangible assets 482 401 241 200
-------------------------------------------------------------------------
Earnings before income taxes and
non-controlling interest 22,883 22,475 13,593 13,341
Income taxes 7,093 7,754 4,434 4,603
-------------------------------------------------------------------------
Earnings before non-controlling
interest 15,790 14,721 9,159 8,738
Non-controlling interest 62 97 59 87
-------------------------------------------------------------------------
Net earnings 15,728 14,624 9,100 8,651
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Earnings per share
Basic 0.68 0.63 0.40 0.37
Diluted 0.68 0.63 0.40 0.37
Consolidated statements retained earnings (unaudited)
(in thousands of dollars)
For For
the six months the three months
ended May 31, ended May 31,
-------------------------------------------------------------------------
2008 2007 2008 2007
-------------------------------------------------------------------------
$ $ $ $
Balance, beginning of period 195,511 168,020 199,520 172,378
Net earnings 15,728 14,624 9,100 8,651
-------------------------------------------------------------------------
-------------------------------------------------------------------------
211,239 182,644 208,620 181,029
Dividends (3,672) (3,232) (1,823) (1,617)
Premium on redemption of common
shares for cancellation (5,885) - (5,115) -
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Balance, end of period 201,682 179,412 201,682 179,412
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Consolidated statements of comprehensive income
(in thousands of dollars)
For For
the six months the three months
ended May 31, ended May 31,
-------------------------------------------------------------------------
2008 2007 2008 2007
-------------------------------------------------------------------------
$ $ $ $
Net earnings 15,728 14,624 9,100 8,651
Other comprehensive income:
Change in fair value of
derivatives designated as cash
flow hedges net of income taxes 30 (263) 12 (253)
Exchange loss due to translation
adjustment of net investment in
self-sustaining foreign operation (265) - 292 -
-------------------------------------------------------------------------
(235) (263) 304 (253)
-------------------------------------------------------------------------
Comprehensive income 15 493 14 361 9 404 8 398
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Consolidated statements of cash flows (unaudited)
(in thousands of dollars)
For For
the six months the three months
ended May 31, ended May 31,
-------------------------------------------------------------------------
2008 2007 2008 2007
-------------------------------------------------------------------------
$ $ $ $
OPERATING ACTIVITIES
Net earnings 15,728 14,624 9,100 8,651
Non-cash items
Amortization of capital assets 2,058 1,796 1,047 893
Amortization of intangible assets 482 401 241 200
Future income taxes (9) 61 122 137
Non-controlling interest 62 97 59 87
Stock-based compensation expense 525 419 274 235
-------------------------------------------------------------------------
18,846 17,398 10,843 10,203
Net change in non-cash working
capital balances related to
operations (6,780) (10,902) 121 (1,186)
-------------------------------------------------------------------------
12,066 6,496 10,964 9,017
-------------------------------------------------------------------------
FINANCING ACTIVITIES
Increase of bank loans - - - (138)
Repayment of long-term debt (206) (303) - (26)
Dividends paid (3,672) (3,232) (1,823) (1,617)
Issue of common shares 177 149 68 71
Redemption of common shares for
cancellation (6,137) - (5,337) -
-------------------------------------------------------------------------
(9,838) (3,386) (7,092) (1,710)
-------------------------------------------------------------------------
INVESTING ACTIVITIES
Business acquisitions (242) (4,599) (242) (4,599)
Additions to capital assets (3,249) (2,431) (2,742) (999)
-------------------------------------------------------------------------
(3,491) (7,030) (2,984) (5,598)
-------------------------------------------------------------------------
Effect of exchange rate
fluctuations on cash and cash
equivalents (207) (452) (149) (452)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Net change in cash and cash
equivalents (1,470) (4,372) 739 1,257
Cash and cash equivalents,
beginning of period 7,879 6,964 5,670 1,335
-------------------------------------------------------------------------
Cash and cash equivalents, end of
period 6,409 2,592 6,409 2,592
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Supplemental information:
Income taxes paid 9,201 10,959 4,415 4,504
Interest paid 143 752 151 597
Consolidated balance sheets
(in thousands of dollars) (unaudited)
As at As at As at
May May November
31, 31, 30,
2008 2007 2007
-------------------------------------------------------------------------
$ $ $
ASSETS
Current assets
Cash and cash equivalents 6,409 2,592 7,879
Accounts receivable 61,411 61,811 60,976
Income taxes receivable 1,028 871 -
Inventories 102,178 90,789 95,971
Prepaid expenses 1,468 1,279 732
-------------------------------------------------------------------------
172,494 157,342 165,558
-------------------------------------------------------------------------
Capital assets 20,986 19,183 19,774
Intangible assets 12,572 14,802 12,974
Goodwill 60,658 64,162 60,472
-------------------------------------------------------------------------
266,710 255,489 258,778
-------------------------------------------------------------------------
-------------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued liabilities 40,063 39,146 37,371
Income taxes payable - - 1,081
Current portion of long term debt 6,555 6,685 6,111
-------------------------------------------------------------------------
46,618 45,831 44,563
-------------------------------------------------------------------------
Long-term debt 298 7,196 860
Future income taxes 1,742 1,903 1,751
Non-controlling interest 2,570 2,278 2,508
-------------------------------------------------------------------------
51,228 57,208 49,862
-------------------------------------------------------------------------
Shareholders' equity
Capital stock 17,725 17,618 17,800
Contributed surplus 2,507 1,514 1,982
Retained earnings 201,682 179,412 195,511
Accumulated other comprehensive income (6,432) (263) (6,197)
-------------------------------------------------------------------------
215,482 192,281 209,096
-------------------------------------------------------------------------
266,710 255,489 258,778
-------------------------------------------------------------------------
-------------------------------------------------------------------------