Groupe GDG Environnement Ltée

November 26, 2008 18:01 ET

Group GDG Environment Pursue its Development

TROIS-RIVIERES, QUEBEC--(Marketwire - Nov. 26, 2008) - Group GDG Environment Ltd. (TSX VENTURE:GDG) ("GDG") reported today its financial results for the three and nine-month periods ended September 30, 2008.

Mr. Jean-Guy Lanouette, President of the Board, is proud to announce that the financial goal for the first three quarters of 2008 was met. The year 2008 was filled with heavy snow and rain precipitations, which favour the proliferation of mosquitoes. However, the efficacy of GDG's methodology made it possible to obtain a good financial performance despite this difficult season.

Financial results - three and nine-month periods ended September 30, 2008

GDG generated revenue in the amount of $ 3 029 393 in the three-month period ended September 30, 2008, compared to $ 3 012 670 for the same period in 2007, being an increase of 1 %. GDG generated revenue in the amount of $7,182,599 in the nine-month period ended September 30, 2008, compared to $7,244,753 in the nine-month period ended September 30, 2007.

The gross margin for the three months ended in September 2008 is established at $ 1 171 833 which represents 38.7% of sales compared to $1 548 746 being at 51.4 % of sales for the same period in 2007, The gross margin for the nine cumulative months in 2008 and in 2007 is established at $ 2 358 795 which is 32.8% of sales in September 2008 compared to $ 2 755 068 which is 38.0% of sales in September 2007. The weather in 2008 generated a greater number of treatments compared to the year 2007, more specifically in the last quarter ended in September.

The net earnings are at $291,464 for the three months period of September 30, 2008 compared to $840,359 for the same period of September 30, 2007. The net earnings for the nine months ending September 30, 2008 are at $996,306 compared to $1,049,809 for the same period of September 30, 2007.

The decrease in net earnings for the three and nine months cumulative periods in September 30, 2008 compared to same period last year is due to a decrease in gross margin and to the increase in financial and professional expenses related to maintaining a public company. It is also due to higher tax rate compared to the one of a private company in 2007.

Nomination to the Board

In a concern of obtaining GDG's board of directors mainly constituted of independent administrators, Mr. Christian Back yielded his position of director to Mr. Richard Laferriere. Mr. Christian Back continues to assume the functions of Vice-president Sciences and Technologies for GDG. The Board of Directors nominated Mr. Richard Laferriere to replace Mr. Christian Back, as director.

Mr. Richard Laferriere is the Executive Chairman of the Board of Extenway Solutions since May 2, 2008. Also, Mr. Laferriere was the president and CEO of FRV MEDIA INC. (TSX VENTURE:FRV). from June 2000 to April 2008 and is now Chairman of his Board since May,1 2008.

Granting of stock options

The Board of Directors of GDG also authorized yesterday the granting of 800 000 stock options ("options"). From those, 357 000 options will be granted to the top executive and the remaining options will be majoritarily granted to present employees (supervision and office) according to a policy adopted by the Board and in accordance with the stock option plan presently in force.

Stock options granted to top executive

Ms Isabelle Martin VP Operations and Chief financial officer 65 000 options
Mr Martin Lord VP Corporate Business development 83 000 options
Mr Christian Back VP Sciences & Technologies 99 000 options
Mr Rejean Bergevin VP Business Development 110 000 options

In accordance with GDG' stock option plan, each granted option will allow its holder to subscribe to a common share at an exercise price of $0.20 a share, before December 15, 2013, at the latest. Options granted to top executives and employees entitle the holders to subscribe the first portion a year from now and will be vested over a period of three years at a rate of 33.33% per year. The first portion being acquired at the end of the first year following the granting of the options.

About GDG

The company in Trois-Rivieres was founded in 1980. It gradually advanced in a very specialized area, i.e. the biological management of biting flies, and has now become a leader in this field in Canada. GDG has carried out over 400 mandates directly related to the biological control of mosquitoes and black flies. The company conducts biting fly management operations for municipalities across Quebec, New Brunswick, Labrador, and Ontario. GDG is also deeply involved in the surveillance and prevention of the West Nile Virus in Ontario.

Note to readers : The unaudited consolidated interim financial statements and the analysis by the Management of the financial situation and operating results are posted on SEDAR and may be consulted at all times at :

This press release contains forward-looking statements. Those statements involve known and unknown risks and uncertainties, which could cause GDG's actual results, performance and achievements to differ materially from those in the forward-looking statements.

The TSX Venture Exchange Inc. does not accept responsibility for the adequacy or accuracy of this press release.

Contact Information

  • Source:
    Communications Danielle Cantin Inc.
    Danielle Cantin
    Cell.: 819-691-5176
    Group GDG Environment Ltd
    Isabelle Martin
    VP Operations and chief of finances
    819-373-3097 /