Bestar Inc.
TSX : BES

Bestar Inc.

November 03, 2005 12:56 ET

Bestar Inc.: 2005 Third Quarter Results

LAC-MEGANTIC, QUEBEC--(CCNMatthews - Nov. 3, 2005) - Bestar Inc. (TSX:BES) - Gross revenue for the quarter ended September 30, 2005 totalled C$10,277,000, a decrease of 19.5% compared with C$12,760,000 for the same quarter last year.

"As announced at the end of the second quarter, we renewed most of the products sold to our major clients, but it is too early for us to evaluate their performance. However, we know that the delayed introduction of our new products and the growing Asian competition explain the decrease in our sales." highlighted Mr. Jacques Hetu, Chief Executive Officer of Bestar.

Gross revenue for the first nine months of 2005 totalled C$29,280,000 compared with C$34,058,000 for the same period of 2004.

"Considering theses results, the Board members and management have initiated a strategic reflection" explained Mr. Hetu.

The loss before other items and income taxes on benefits reaches C$288,000 for the third quarter of 2005, compared with the earnings before other items and income taxes on benefits of C$278,000 for the same quarter in 2004. For the first nine months of 2005, the loss before other items and income taxes on benefits stands at C$472,000, compared to the C$1,050,000 of the same period in 2004.

"From this C$578,000 difference we can subtract C$442,000 related to restructuring charges taken during the first semester of 2004 and add C$ 272,000 related to the variation on exchange to arrive at a C$408,000, a difference directly related to the revision of our cost structure and operating expenses. We have therefore improved our results even though our sales suffered a decrease of 14%." continued Bestar's CEO.

Regarding the net loss for the third quarter, it is C$218,000. or C$(0.02) per share, compared to a net earnings of C$1,350,000 or C$0.10 per share, for the same quarter in 2004. For the first nine months of 2005, the net loss is C$145,000.00 or C$(0.01) per share, compared to a net earnings of C$452,000 or C$0.04 per share for the same period last year.

"An income of C$1,275,000 derived from a private placement in Panomeg Inc. had contributed to the realization of the reported earnings during the third quarter of 2004." Mr. Hetu concluded.



Interim Results Summary

(Results in thousands of dollars, except earnings per share)
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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 10,277 - 29,280

Net earnings
(loss) 2003 1,095 (443) (388) (10) 254
2004 (246) (652) 1,350 (894) (442)
2005 (107) 180 (218) - (145)

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 (0.02) - (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 (0.02) - (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 28,502 - -

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 14,470 - -

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 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 November 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