Stock Name: GDI
Amount: CAD 0.0825
Announcement Date: 03/05/2012
Record Date: 27/06/2012
Dividend Detail:
TORONTO, May 3, 2012 /CNW/ - General Donlee Canada Inc. ("General
Donlee" or the "Company") (TSX: GDI) today announced its results for
the first quarter ended March 31, 2012. The Board has declared a
quarterly dividend of 8.25 cents per common share payable on July 16,
2012 to holders of record at the close of business on June 29, 2012.
Financial highlights relating to General Donlee's first quarter 2012:
Sales of $14.1 million, up 12% compared to Q1 2011
Gross Profit of $3.9 million, up 31% over Q1 2011
Net income of $1.6 million or $0.149 per share, a 23% increase over Q1
2011
Sales order backlog of $51.5 million at March 31, 2012
Quarterly dividend of 8.25 cents per share paid to shareholders on April
16, 2012
Continuing growth in sales and positive cash flow from operations
"General Donlee's 12% increase in sales in the first quarter over the
comparable period last year continues to reflect strong fundamentals in
the industries we serve and our ability to grow our business with
current and new customers. As a result, in the first quarter we
generated $2.4 million of positive cash flow from operations before
changes in working capital and net of interest expenses, and paid out
$0.88 million in quarterly dividends to shareholders" said Chief
Executive Officer and Interim Chief Financial Officer, Garen
Mikirditsian.
Strong backlog
"At March 31, 2012, our production order backlog was at $51.5 million,
reflecting the confidence our customers have in the Company's ability
to consistently deliver product of the highest quality," said Mr.
Mikirditsian. "We expect demand to remain robust in 2012."
Increase in Gross Profit
Gross profit for the quarter was 31% higher than in the comparable
period in 2011, mainly due to higher production volumes resulting in
improved overhead absorption. "Our strong gross profit for the quarter
reflects our positive top line performance but also is evidence of a
focused approach to controlling costs that is having real impact", said
Mr. Mikirditsian.
Foreign Exchange Hedging Program
To mitigate its exposure to currency fluctuations, General Donlee has a
rolling hedging program with a chartered Canadian bank through which it
reduces its U.S. dollar exposure by entering into foreign exchange
forward contracts. As of March 31, 2012, the Company had foreign
exchange forward contracts outstanding to sell $11.9 million U.S.
dollars and to buy Canadian dollars at an average exchange rate of CAD
$1.0285. In addition, the Company's significant U.S. dollar purchases
of raw materials and outside services provide a natural hedge in its
U.S. dollar exposure.
Financial Highlights
The following summary of financial data presents General Donlee's
consolidated results of operations for the three-month period ended
March 31, 2012, including comparative results for the same period in
2011.
��������������������������
($ millions, except Share/Unit and per Share/Unit amounts)���������������������������������� | Three Months Ended | |
�� | Mar. 31/12 | Mar. 31/11 |
Operations | �� | �� |
Sales | 14.1 | 12.6 |
Gross profit | 3.9 | 3.0 |
Net income | 1.6 | 1.3 |
Basic income�� per share | $0.149(a) | �� $0.122(b) |
(a)����������Based on weighted average of 10,646,505 shares outstanding.
(b)����������Based on weighted average of 10,664,634 shares outstanding.
General Donlee delivered sales of $14.1 million for the three months
ended March 31, 2012 - an increase of $1.5 million, or 12%, over its
sales in the same period in 2011. Sales in the Company's aerospace and
power generation products division during the three-months ended March
31, 2012 were $8.0 million - up by 5%, or $0.4 million, over the
comparable period in 2011. General Donlee's specialty precision
products division's sales during the same period were $6.1 million, an
increase of $1.1 million or 22% over the same period last year.
The Company's net income during the three months ended March 31, 2012
was $1.6 million, compared to net income of $1.3 million during the
same period in the previous year. This net increase in profitability
reflected:
Stronger gross profit levels due to higher production volumes resulting
in improved overhead absorption
A realized foreign exchange gain of $0.2 million in 2012 vs. a realized
foreign exchange gain of $0.1 million in 2011; and
An unrealized foreign exchange gain in 2012 of $0.2 million vs. an
unrealized foreign exchange loss of $0.03 million in 2011, partially
offset by
A provision for deferred tax in 2012 of $0.5 million vs. a recovery of
$0.2 million in 2011.
Outlook
The Company continues to see strong demand from customers and healthy
fundamentals in the end markets it serves. "Our production backlog of
$51.5 million is evidence of the confidence our customers have in the
Company's ability to consistently deliver product of the highest
quality," said Chief Executive Officer and Interim Chief Financial
Officer, Garen Mikirditsian.
The Company expects demand for its services to remain robust in the near
term. "With market forecasts pointing to a prolonged upcycle of orders
and production in the commercial aircraft industry, we expect demand
for our aerospace products to remain strong", said Mr. Mikirditsian.��
"We also see distinct opportunities to grow our business with certain
of our current customers and expand our relationships in the aerospace,
oil & gas, industrial and nuclear sectors."
General Donlee's outlook for sustainable and profitable growth is also
grounded on its consistent focus on continuous improvement.
"Operational excellence is key to the Company's strategy, and we are
starting to see our operational improvement initiatives positively
impacting our overall performance. More specifically, we are happy to
note that the impressive performance of our specialty precision
division compared to the comparable period last year was significantly
driven by operational improvements implemented during the quarter",
added Mr. Mikirditsian.
Company Profile
General Donlee Canada Inc. is a leading diversified manufacturer of
precision-machined products for the military, commercial and general
aerospace industries, and a specialist in the manufacture of
precision-machined products for the industrial products and power
generation industries.�� General Donlee's operating strategy focuses on
targeting niche markets for products that are aligned with its
sophisticated manufacturing capabilities and skilled workforce.
SEDAR Filings
On May 7, 2012 the Company will file its unaudited Condensed
Consolidated Interim Financial Statements (including the notes thereto)
and Management's Discussion and Analysis for the three-month period
ended March 31, 2012 with SEDAR at www.sedar.com.�� The documents will also be available on the Company's website at www.generaldonlee.com on the Financial Reports page.
Forward-Looking Information
As with all forward-looking statements, caution must be exercised to
ensure that appropriate interpretation is made. Certain forward-looking
statements are based on information currently available to Management,
but are subject to a number of uncertainties and risks that could cause
actual results to differ materially from the results discussed in the
forward-looking statements. These uncertainties and risks include, but
are not limited to those listed under the "Risk Factors" section of the
Company's 2011 Annual Information Form, dated March 30, 2012 (which can
be found at www.sedar.com).
Further information can be found in the disclosure documents filed by
General Donlee Canada Inc. with the securities regulatory authorities,
available at www.sedar.com or through the Company's website at www.generaldonlee.com.��
For further information:
Garen Mikirditsian
President & Chief Executive Officer
Interim Chief Financial Officer
Telephone:��(416) 743-4417
E-mail:����info@generaldonlee.com
Web site:��www.generaldonlee.com
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