Distinction Group Inc.
TSX : GD

Distinction Group Inc.

April 14, 2010 11:15 ET

GDI Increases Net Earnings by 16.7% in Q1 2010

MONTREAL, QUEBEC, CANADA--(Marketwire - April 14, 2010) - Groupe Distinction Inc. (TSX:GD)

  • Revenues of $64.2 million, up 6.4% from Q1 2009

  • EBITDA of $3.7 million, up 16.3% from Q1 2009

  • Net earnings of $1.7 million or $0.056 per share, up 16.7% from Q1 2009

  • Solid balance sheet with $8.5 million in cash, net of a $3.5 million reduction in long-term debt in Q1 2010

  • Debt to equity ratio improves to 0.52

Groupe Distinction Inc. ("GDI" or the "Company") (TSX:GD) reported its results today for the first quarter ended February 28, 2010. The financial statements and management discussion and analysis can be found on SEDAR at www.sedar.com.

GDI recorded revenues of $64.2 million in the first quarter of 2010, up 6.4% from $60.4 million in 2009. This increase resulted from 6.0% organic growth in comparable units in Q1 2010 relative to 2009, and from the acquisition of Immotik completed in January 2009. EBITDA grew by 16.3% to $3.7 million in 2010, from $3.1 million in 2009. The Company's net earnings stood at $1.7 million or $0.056 per share, fully diluted, in 2010, compared to $1.5 million or $0.048 per share, fully diluted, in 2009.

"Our efforts to improve performance continued to bring results in the first quarter, as we once again posted solid organic growth and improved profitability," said Claude Bigras, President and Chief Executive Officer of GDI. "The results of the past few quarters also enabled us to further strengthen our balance sheet and reduce our long-term debt by $3.5 million. As a result, our debt to equity ratio now stands at 0.52. Profitable growth in our operating activities and sound management of our financial position remain our primary objectives, and will permit us to take optimal advantage of any opportunities that may arise."

GDI enjoys a strong financial position, with cash of $8.5 million, working capital of $17.4 million and credit facilities varying from $30 to 40 million, of which about $22.2 million remained available at February 28, 2010.

Outlook

"GDI is very well positioned to take advantage of growth opportunities in the industry. As part of our strategy of growth through acquisition, we are actively pursuing our efforts to identify companies that meet our investment criteria and provide near-term added value for our shareholders," concluded Mr. Bigras.

About Distinction Group Inc. (GDI)

GDI is a Canadian leader in janitorial services. Through its subsidiaries Service d'entretien Distinction Inc., Omni Facility Services Canada Limited, Services d'entretien Empro Inc., Montcalm Services Techniques Inc., Distinction Services Plus Inc. and Steamatic Canada Inc., Distinction provides a range of industrial janitorial, mechanical maintenance and other related services to various segments of the real estate industry.

Additional information on the Company can be found on the GDI website at www.groupedistinction.com and on the SEDAR website at www.sedar.com.

Forward-Looking Statements

This press release may contain certain "forward-looking statements", including, but not limited to, statements regarding the strategic plans, future financial results and overall outlook for the Company. Forward-looking statements express, as of the date of this press release, the Company's plans, estimates, forecasts, projections, expectations and opinions regarding future events and results. Forward-looking statements are subject to certain risks and uncertainties, many of which are beyond the Company's control. There can be no assurance that such statements will prove to be accurate. Consequently actual results and future events may differ materially from those anticipated by such statements. Risks and uncertainties that could cause actual results and future events to differ materially from the current expectations expressed or implied by such forward-looking statements include, but are not limited to, the risks described in the management discussion and analysis for the period ended February 28, 2009. Readers should not rely unduly on such forward-looking statements.

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