STE-MARIE DE BEAUCE, QC,
GBO recorded operating earnings before amortization, interest and income taxes (or EBITDA) of
During the nine-month period ended
Outlook -------
Management continues to be cautious as to Bonneville's outlook for fiscal 2010 as demand remains weak and volatile while competition is fierce in all markets, especially in the
Having optimized its overall operations to reflect its new reality, Bonneville is now structured to be competitive and profitable in a normal market context, with profit margins likely benefiting from continued operational optimization efforts aimed at lowering its breakeven point and securing a more flexible cost structure that is better aligned with the seasonal sales cycle.
GBO's key objectives are to grow its sales and alleviate the seasonal cycle of Bonneville's business, notably through the targeted developments of markets along the U.S. East Coast where it expects to achieve more than half of its sales on an annualized basis. To this end, Bonneville broadened its representation in the Southeastern
Profile -------
Founded in 1946, GBO Inc. is an important Canadian window and door manufacturer. The Company designs, develops, manufactures, markets and distributes a selection of mid-range and high-end energy-efficient wood window arrangements, doors and accessories, sold primarily under the "Bonneville" and "Polar" brands. Recently, GBO launched a line of innovative fenestration products resistant to hurricanes and other impacts. The Company sells its windows and doors to the home improvement and construction markets in
The statements set forth in this press release that describe GBO's objectives, projections, estimates, expectations or forecasts may constitute forward-looking statements within the meaning of securities legislation. GBO would like to point out that, by their very nature, forward-looking statements involve a number of risks and uncertainties such that actual results or the measures it adopts could therefore differ materially from those indicated or underlying these forward-looking statements, or could have an impact on the degree of realization of a particular projection. There can be no assurance as to the materialization of the results, performance or achievements as expressed or implied by the forward-looking statements. Unless required to do so pursuant to applicable securities legislation, GBO's management assumes no obligation as to the updating or revision of the forward-looking statements as a result of new information, future events or other changes.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This press release contains forward-looking statements based on the Company's the current outlook regarding the future. Such information involves a number of risks, uncertainties and assumptions. Actual results and events could differ materially from those indicated or underlying the forward-looking statements.
GBO INC. CONSOLIDATED EARNINGS AND COMPREHENSIVE INCOME Period ended November 30, 2009 (unaudited)(in thousands of dollars, except per share amounts) Three months Nine months ------------------------ ------------------------ 2009 2008 2009 2008 ----------- ----------- ----------- ----------- $ $ $ $ Sales 6,101 18,322 27,025 48,127 Cost of sales and operating expenses 6,052 16,452 27,489 45,647 ----------- ----------- ----------- ----------- Operating income (loss) before the following items 49 1,870 (464) 2,480 - - - - - - - - - - - - - - - - - - - - - - - - Depreciation of fixed assets 284 396 996 1,159 Amortization of intangible assets 33 37 102 112 Amortization of deferred charges 24 17 66 30 Gain on disposal of fixed assets (5) (3) (13) (3) Interest on long-term debt 2 2 9 7 Other financial expenses 7 (324) 219 (266) ----------- ----------- ----------- ----------- 345 125 1,379 1,039 - - - - - - - - - - - - - - - - - - - - - - - - Earnings (loss) before unusual item and income taxes (296) 1,745 (1,843) 1,441 Unusual item (Note 8) (60) - 4,655 - ----------- ----------- ----------- ----------- Earnings (loss) before income taxes (356) 1,745 2,812 1,441 Future income taxes (96) 535 782 438 ----------- ----------- ----------- ----------- Net earnings (net loss) and comprehensive income (260) 1,210 2,030 1,003 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Earnings (loss) per share and diluted earnings (loss) per share (0.01) 0.04 0.06 0.03 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Weighted average number of common shares outstanding 32,676,569 32,676,569 32,676,569 32,676,569 GBO INC. CONSOLIDATED DEFICIT Period ended November 30, 2009 (unaudited)(in thousands of dollars) Three months Nine months ------------------------ ------------------------ 2009 2008 2009 2008 ----------- ----------- ----------- ----------- $ $ $ $ Deficit, beginning of period (22,688) (23,749) (24,978) (23,542) Net earnings (net loss) (260) 1,210 2,030 1,003 ----------- ----------- ----------- ----------- Deficit, end of period (22,948) (22,539) (22,948) (22,539) ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- GBO INC. CONSOLIDATED CASH FLOWS Period ended November 30, 2009 (unaudited)(in thousands of dollars) Three months Nine months ------------------------ ------------------------ 2009 2008 2009 2008 ----------- ----------- ----------- ----------- $ $ $ $ OPERATING ACTIVITIES Net earnings (net loss) (260) 1,210 2,030 1,003 Non-cash items Unusual item 60 - (4,655) - Gain on disposal of fixed assets (5) - (13) - Depreciation of fixed assets 284 396 996 1,159 Amortization of intangible assets and deferred charges 57 54 168 142 Stock-based compensation expense 3 2 10 7 Future income taxes (96) 535 782 438 Changes in working capital items (136) 138 224 (3,709) ----------- ----------- ----------- ----------- Cash flows from operating activities (93) 2,335 (458) (960) - - - - - - - - - - - - - - - - - - - - - - - - INVESTING ACTIVITIES Cash proceeds on the disposal of assets, net of related charges (60) - 10,443 - Fixed assets (72) (125) (230) (519) Disposal of fixed assets 5 3 30 3 Note receivable 58 154 234 322 Intangible assets & deferred charges (164) (59) (140) (70) ----------- ----------- ----------- ----------- Cash flows from investing activities (233) (27) 10,337 (264) - - - - - - - - - - - - - - - - - - - - - - - - FINANCING ACTIVITIES Bank loan - (3,231) (3,658) 1,635 Repayment of long-term debt (50) (12) (83) (22) ----------- ----------- ----------- ----------- Cash flows from financing activities (50) (3,243) (3,741) 1,613 ----------- ----------- ----------- ----------- Net increase (decrease) in cash and cash equivalents (376) (935) 6,138 389 Cash and cash equivalents, beginning of period 7,064 1,611 550 287 ----------- ----------- ----------- ----------- Cash and cash equivalents, end of period 6,688 676 6,688 676 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- CASH AND CASH EQUIVALENTS 1,688 676 1,688 676 Cash 5,000 - 5,000 - ----------- ----------- ----------- ----------- Term deposit 6,688 676 6,688 676 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- GBO INC. CONSOLIDATED BALANCE SHEET (in thousands of dollars) November 30, February 28, 2009 2009 ------------ ------------ $ $ ASSETS (unaudited) Current assets Cash 1,688 550 Term deposit 5,000 - Accounts receivable 4,438 3,830 Income taxes receivable 103 103 Inventories 2,394 4,045 Prepaid expenses and other 303 517 Current portion of note receivable 1,413 356 ------------ ------------ 15,339 9,401 Note receivable 1,241 1,532 Fixed assets 8,887 13,938 Fixed assets held for sale 804 831 Intangible assets 354 471 Deferred charges 311 238 Future income taxes 2,294 3,076 ------------ ------------ 29,230 29,487 ------------ ------------ ------------ ------------ LIABILITIES Current liabilities Bank loan - 3,658 Accounts payable 7,025 5,806 Instalments on long-term debt 85 13 ------------ ------------ 7,110 9,477 Long-term debt 87 17 ------------ ------------ 7,197 9,494 - - - - - - - - - - - - SHAREHOLDER'S EQUITY Capital stock 44,526 44,526 Contributed surplus 455 445 Deficit (22,948) (24,978) ------------ ------------ 22,033 19,993 ------------ ------------ 29,230 29,487 ------------ ------------ ------------ ------------
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For further information: Christopher M. Wood, Chairman of the Board and Chief Executive Officer, (418) 387-7723; Source: GBO Inc.
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