Bestar Inc.
TSX : BES

Bestar Inc.

July 27, 2005 09:36 ET

Bestar Inc.: 2005 Second Quarter Results

LAC-MEGANTIC, QUEBEC--(CCNMatthews - July 27, 2005) - Gross revenue for the quarter ended June 30, 2005 totalled C$9,055,000, a decrease of 8.5% compared with C$9,895,000 for the same period last year. Gross revenue for the first six months of 2005 totalled C$19,003,000 compared with C$21,298,000 for the first half of 2004.

"As announced at the end of the first quarter, a gap in the launch date of new products between 2004 and 2005 is the main reason for the decrease in sales. Development and presentation efforts will lead to the renewal of a majority of our product lines sold to our major customers. The renewal process should be completed by early fall. Furthermore, in addition to pursuing the development of new customers we are also striving for more market share among our existing customer base" explains Mr. Jacques Hetu, Chief Executive Officer of Bestar.

The loss before other items and income taxes on benefits reaches C$59,000 for the second quarter of 2005, compared with C$967,000 for the same period in 2004. For the first six months of 2005, the loss before other items and income taxes on benefits stands at C$184,000, C$1,144,000 lower than the C$1,328,000 of the same period in 2004.

"Two main reasons can explain this C$1,144,000 difference between 2005 and 2004. First, C$442,000 are related to restructuring charges taken during the first semester of 2004. Second and more importantly, C$702,000 are savings directly related to the revision of our cost structure and operating expenses. It is worthy to note that this improvement of our results occurred while our sales suffered a decrease of 10.8%." continues Bestar's CEO.

Regarding the net profit for the second quarter, It is C$180,000. or C$0.01 per share, compared to a net loss of C$652,000 or C$(0.06) per share, for the same quarter in 2004. For the first six months of 2005, the net profit is C$73,000.00 or C$0.01 per share, compared to a net loss of C$898,000 or C$(0.08) per share for the same period last year.

"An income of C$260,000 derived from a private placement in Panomeg Inc. has contributed to the realization of the reported earnings." Mr. Hetu concluded



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


Q1 Q2 Q3 Q4 Total

Revenue(i) 2003 12,211 10,285 11,274 10,512 44,282
2004 11,403 9,895 12,760 9,670 43,728
2005 9,948 9,055

Net earnings (loss) 2003 1,095 (443) (388) (10) 254
2004 (246) (652) 1,350 (894) (442)
2005 (107) 180

Earnings (loss) per
common share 2003 0.10 (0.04) (0.03) (0.01) 0.02
2004 (0.02) (0.06) 0.10 (0.07) (0.04)
2005 (0.01) 0.01 - - 0.01

Fully diluted earnings
(loss) per common
share 2003 0.10 (0.04) (0.03) (0.01) 0.02
2004 (0.02) (0.06) 0.10 (0.07) (0.04)
2005 (0.01) 0.01 - - 0.01

Total Assets 2003 34,814 33,084 31,034 30,722 30,722
2004 30,507 29,987 29,515 28,228 28,228
2005 28,215 28,335 - - -

Total Liabilities 2003 20,726 19,438 17,777 17,475 17,475
2004 17,506 16,479 14,774 14,256 14,256
2005 14,281 14,153 - - -

Weighted average of
outstanding shares
(in thousands) 2003 11,088 11,088 11,088 11,088 11,088
2004 11,088 11,738 13,038 13,038 12,231
2005 13,038 13,038 - - -
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(i)In conformity with new accounting standards, transportation
earnings are hereafter presented in the Revenue item. Comparative
figures have been reclassified to reflect the consequences of this
modification.


Corporate Profile

Founded in 1948, Bestar Inc. designs, manufactures, and distributes a vast array of furniture and ready-to-assemble furnishings that meet customer needs in terms of quality, design, and functionality.

The company was incorporated in 1986 and operates from its plant in Lac-Megantic.

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 and uncertainties and the best possible evaluation of future events by management, and are subject to certain risk factors such as exchange rates, the growth of Asian competitors, and raw materials and shipping cost fluctuations.

Shareholder Information

The management report and comprehensive financial statements as well as all other regulatory documents will be available, no later than August 15, 2005, through the SEDAR database at www.sedar.com and on our website at www.bestar.ca.

Contact Information

  • Bestar Inc.
    Jacques Hetu
    Chief Executive Officer
    (819) 583-1017, ext. 233