Stock Name: GDI
Amount: CAD 0.0825
Announcement Date: 09/03/2012
Record Date: 28/03/2012
Dividend Detail:
TORONTO, March 9, 2012 /CNW/ - General Donlee Canada Inc. ("General
Donlee" or the "Company") (TSX: GDI) today announced its results for
the fourth quarter and year ended December 31, 2011. The Board has
declared a quarterly dividend of $0.0825 per common share payable on
April 16, 2012 to holders of record at the close of business on March
30, 2012.
Financial highlights relating to General Donlee's fourth quarter 2011:
Sales of $11.8 million, up 10% compared to Q4 2010
Net income of $1.7 million or $0.159 per share, an increase of $0.3
million over Q4 2010
Sales order backlog of $55.4 million at December 31, 2011, up $10.6
million from year-end 2010
Quarterly dividend of $0.0825 per share paid to shareholders on January
16, 2012
Financial highlights relating to the year 2011:
Sales of $48.9 million, up 19% compared to 2010
Net income of $4.6 million or $0.433 per share, an increase of $1.7
million over 2010
Dividends totaling $0.33 per share declared to shareholders in 2011
On February 29, 2012, the Company announced that it has renewed its
Long-Term Agreement (LTA) with an existing major aerospace customer
with total revenue relating to the LTA estimated at approximately US$95
million over the 4-year term of the extension, representing a
significant increase in annual volume compared to 2011.
Consistent growth in sales and positive cash flow from operations
"General Donlee's 10% increase in sales in the fourth quarter and 19%
increase in sales year-to-date over the comparable periods last year
continue 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 fourth quarter we generated $1.5 million of positive
cash flow from operations before changes in working capital, and paid
out $0.88 million in quarterly dividends to shareholders" said Chief
Executive Officer and Interim Chief Financial Officer, Garen
Mikirditsian.
Growing backlog
"At December 31, 2011, our production order backlog was at a 4-year high
of $55.4 million, up by $10.6 million or 24% relative to our backlog at
the end of 2010," said Mr. Mikirditsian. "The strong backlog supports a
positive outlook and is evidence of the confidence our customers have
in the Company's ability to consistently deliver product of the highest
quality. We expect demand to remain robust in 2012."
Impact of stronger Canadian dollar at year-end
"Our net income for the quarter reflects a net foreign exchange gain of
$0.6 million mainly resulting from a non-cash mark-to-market gain on
our long-term hedging program due to the strength of the Canadian
dollar. Net income was $1.7 million for the quarter, an increase of
$0.3 million or 21% over the similar period in 2010," said Mr.
Mikirditsian.
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 December 31, 2011, the Company had foreign
exchange forward contracts outstanding to sell $18.4 million U.S.
dollars and to buy Canadian dollars at an average exchange rate of CAD
$1.0285. In addition, the Company's significant U.S. dollar purchases
of raw materials and outside services provide a natural hedge in its
U.S. dollar exposure.
Financial Highlights
The following summary of financial data presents General Donlee's
consolidated results of operations for the three-and twelve month
periods ended December 31, 2011, including comparative results for the
same periods in 2010.��������
������������������
($ millions, except Share/Unit and per Share/Unit amounts)���������������������������������� | �� | �� | Three Months Ended | �� | Twelve Months Ended | ||||
�� | �� | �� | Dec. 31/11 | �� | Dec. 31/10 | �� | Dec. 31/11 | �� | Dec. 31/10 |
Operations | �� | �� | �� | �� | �� | �� | �� | �� | �� |
Sales | �� | �� | 11.8 | �� | 10.7 | �� | 48.9 | �� | 41.1 |
Gross profit | �� | �� | 4.1 | �� | 2.7 | �� | 12.7 | �� | 10.0 |
Net income | �� | �� | 1.7 | �� | 1.4 | �� | 4.6 | �� | 2.9 |
Basic income�� per share/Unit | �� | �� | $0.159(a) | �� | $0.127(b) | �� | $0.433(a) | �� | $0.272(b) |
(a)���������� | Based on weighted average of 10,664,465 shares outstanding. |
(b)���������� | Based on weighted average of 10,664,634 units outstanding. |
General Donlee delivered sales of $48.9 million for the year ended
December 31, 2011 - an increase of $7.8 million, or 19%, over its sales
in the same period in 2010. Sales in the Company's aerospace and power
generation products division during the year ended December 31, 2011
were $29.8 million - up by 23%, or $5.5 million, over the comparable
period in 2010. General Donlee's specialty precision products
division's sales during the same period were $19.1 million, an increase
of $2.3 million or 14% over the same period last year.
The Company's net income during the year ended December 31, 2011 was
$4.6 million, compared to net income of $2.9 million during the same
period in the previous year. This net increase in profitability
reflected:
Stronger gross profit levels resulting from improved sales
The recording of a SR&ED tax credit in 2011
A realized foreign exchange gain of $0.6 million in 2011 vs. a realized
foreign exchange gain of $0.04 million in 2010; and
An accounting gain of $0.9 million on pension curtailment recorded in
2011
An unrealized foreign exchange loss in 2011 of $0.3 million vs. an
unrealized foreign exchange loss of $0.5 million in 2010, partially
offset by
A provision for deferred tax in 2011 of $1.1 million vs. a recovery of
$0.9 million in 2010.
Outlook
The Company continues to see strong demand from customers and robust
fundamentals in the end markets it serves. "Our 4-year high production
backlog of more than $55 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.
As announced on February 29, 2012, the Company has renewed its Long Term
Agreement (LTA) with an existing major aerospace customer.�� The
extension covers all current parts and includes additional work with
total revenue relating to the LTA estimated at approximately US$95
million over the 4-year term of the extension, representing a
significant increase in annual volume compared to 2011. Mr.
Mikirditsian noted: "This extension, which cements our Company as a key
and leading supplier to this major customer beyond 2012 through to the
end of 2016, is a strong testament to the quality focus and customer
commitment of General Donlee."
General Donlee's outlook for sustainable and profitable growth is also
grounded on its consistent focus on continuous improvement. As part of
its strategy of achieving operational excellence, and as announced on
February 13, 2012, the Company appointed Bruce Van Nus, a seasoned
operations executive with over twenty years of manufacturing
experience, as its Chief Operating Officer. "We are committed to
investing in people, capital equipment and technology, in order to
serve our customers and meet and exceed their stringent requirements
for excellent quality and impeccable delivery. With a highly skilled
workforce and an experienced and driven management team, we are
confident that we will continue to satisfy our customers and achieve
our growth targets," 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 March 12, 2012 the Company will file its audited Consolidated
Financial Statements (including the notes thereto) and Management's
Discussion and Analysis for the year ended December 31, 2011 with SEDAR
at www.sedar.com.�� These 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 2010 Annual Information Form, dated March 25, 2011 (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
No comments:
Post a Comment