Bestar Inc.
TSX : BES

Bestar Inc.

July 24, 2009 11:57 ET

Bestar Inc. : Results for the Second Quarter Ending June 30th, 2009

LAC-MEGANTIC, QUEBEC--(Marketwire - July 24, 2009) - Bestar Inc. (TSX:BES) - Gross revenue for the second quarter ending June 30th, 2009 is $8,565,000 CA , compared to $9,569,000 CA for the same period in 2008, a decrease of 10.5% Second quarter income before taxes is $3,000 CA in comparison to a loss before taxes of $365,000 CA for the same three month period in 2008. The combination of a changes on the fair market value of forward exchange contracts and gains or losses due to the rate of exchange had a positive effect of $398,000 CA during this period compared to $120,000 for the same period 2008. Second quarter net profit is $1,000 CA or 0,00$ per share, compared to a net loss of $277,000 CA or (0.02)$ per share for the same quarter last year.

For the first half of 2009, total revenues are $20,088,000 CA a decrease of 2.1% compared to $20,519,000 CA for the same period in 2008. A profit before taxes of $308,000 CA was realized compared to a loss before taxes of $514,000 CA in 2008. For the first six months, the combination of changes on the fair market value of forward exchange contracts and gains or losses due to the rate of exchange had a positive effect of $401,000 CA compared to $58,000 CA for the same period last year. We are reporting a net profit of $207,000 CA or 0.02$ per share for the first six months of 2009 compared to a net loss of $380,000 CA or (0.03) $ per share for the same period in 2008.

"Although we experienced a slight increase in sales during our first quarter, the second quarter proved to be more difficult. Even though our Canadian sales and sales of our major clients were maintained or only slightly decreased, we have noted a marked decreased in sales with our smaller American clients, which has contributed to the decrease in gross revenues. However, the stronger sales in the beginning of this year and the increase in the value of the US $ (1.1766 versus 1.0097) on US sales for the first 6 months have contributed to only a slight decrease in total revenues for the first half of 2009 in comparison to 2008,"explained Mr. Paulin Tardif, President & CEO.

"The reduction of our inventories along with improved work methods, a more favorable rate of exchange and a decrease in transportation costs have all contributed to a slight profit in the second quarter," added Mr. Tardif.

"According to certain analysts, financial tensions are subsiding. Capital & Exchange markets are beginning to rebound. These are encouraging signs. However growth perspectives for the coming months are very limited and uncertain. The unemployment rate increase in Canada and even more on the United States side could contribute to a delay in certain spendings of durable goods, such as furniture," continued Mr. Tardif.

"On another note, since the price of Bestar's shares remain low, the Company still does not meet the required $2 million market value of Bestar's listed, freely traded, publicly held securities to continue trading on the TSX and has until October 30th, 2009 to meet the requirement. Should it become necessary, certain measures have been taken to list Bestar with the TSX Venture Exchange," mentioned Mr. Tardif.

"At this time, we continue our efforts to develop new products at a greater added value in order to increase our sales and profitability. Our results and solid balance sheet permit us to maintain a high level of service for our clientele. We remain open to partnerships with other companies with complimentary activities and other opportunities in order to insure the continuous growth of Bestar," concluded Mr. Tardif.

Results Summary



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(Results in thousands of dollars, except earnings per share)

Q1 Q2 Q3 Q4 Total

Revenue 2007 11,279 11,093 10,613 10,448 43,433
2008 10,950 9,569 10,605 9,304 40,428
2009 11,523 8,565 - - 20,088

Net earnings (loss) 2007 104 79 17 50 250
2008 (103) (277) (160) (1,074) (1,614)
2009 206 1 - - 207
Earnings (loss)
per common share 2007 0.01 0.01 0.00 0.00 0.02
2008 (0.01) (0.02) (0.01) (0.08) (0.12)
2009 0.02 - - - 0,02
Fully diluted earnings
(loss) per common share 2007 0.01 0.01 0.00 0.00 0.02
2008 (0.01) (0.02) (0.01) (0.08) (0.12)
2009 0.02 0.00 - - 0,02

Total Assets 2007 25,671 25,783 25,337 25,874 25,874
2008 26,390 28,751 28,512 28,937 28,937
2009 28,644 26,737 - - -

Total Liabilities 2007 12,123 12,089 11,586 12,104 12,104
2008 12,723 15,361 15,282 16,781 16,781
2009 16,282 14,374 - - -
Weighted average of
outstanding shares
(in thousands) 2007 13,038 13,038 13,038 13,038 13,038
2008 13,038 13,038 13,038 13,038 13,038
2009 13,038 13,038 - - -
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Corporate Profile

Founded in 1948, Bestar Inc. designs, manufactures, and distributes a vast array of ready-to-assemble furnishings that meet customer needs in terms of quality, design, and functionality. During the last years Bestar has specialized in office furniture and distributes its products mainly in the United States and Canada. In order to offset a decrease in sales Bestar developed a new business plan in 2006 which includes the fabrication of components.

The company became public in 1986 and operates from its plant in Lac-Megantic, Quebec, Canada.

Release Declaration

This press release may contain information and declarations on the future performance of the company that are, by nature, speculative. These declarations are based on suppositions, uncertainties and the best possible evaluation of future events by management. They are subject to certain risk factors such as exchange rates, the growing competition from emerging countries as well as fluctuating costs in raw material and shipping.

Shareholder Information

Shareholders may find this press release under the CCN news file at www.marketwire.com or on SEDAR at www.sedar.com . The management report and comprehensive financial statements for the quarter ended June 30 , 2009 , as well as all other regulatory documents will be available, no later than August 14, 2009, through the SEDAR database at www.sedar.com and on our website at www.bestar.ca.

Contact Information

  • Bestar Inc.
    Paulin Tardif
    Chairman of the Board
    President and Chief Executive Officer
    819-583-1017