Bestar Inc.
TSX : BES

Bestar Inc.

May 13, 2009 15:00 ET

Bestar Inc. Results for First Quarter Ending March 31st 2009

LAC-MEGANTIC, QUEBEC--(Marketwire - May 13, 2009) - Bestar Inc. (TSX:BES) Gross revenue for the first quarter ending March 31st, 2009 are $11,523,000 CA , an increase of 5.2% compared to $10,950,000 for the same period in 2008.

"This increase is due to the successful promotion of a new product by one of our major furniture customers, as well as an unexpected increase in sales of one our component customers. A more favorable exchange rate also contributed to the increase," commented Bestar CEO, Paulin Tardif.

Profits before taxes are $305,000 CA for the first three months of 2009 compared to a loss of $149,000 CA for the same period last year. A net profit of $206,000. CA or $.02 per share was realized for the first quarter of 2009 compared to a net loss of $103,000 CA or (.01) per share for the same period in 2008.

"Compared to the first quarter of 2008, this turnaround is the result of many factors, of which some are:

- Increased sales;

- Increased productivity , due to important investments realized in 2008 to modernize equipment;

- Decreased transportation costs.

"During the first quarter of 2009, Bestar's capital structure was strengthened by a new credit agreement in the form of unsecured debentures totaling 750 000$ from the Fonds de Solidarite des travailleurs du Quebec (F.T.Q) along with other Bestar shareholders and sources.

"Due to the uncertain economic situation, growth perspectives for the next few months are limited. Therefore we have temporarily laid off approximately 30 employees while others have agreed to reduce their hours. These measures will allow the Company to maintain inventory levels to current needs," explained Paulin Tardif.

"Recently, the Company has been advised by the Toronto Stock Exchange (TSX) that it's eligibility to maintain trading of Bestar's ordinary shares on the exchange is currently under review. More specifically , the TSX advised Bestar that the market value of its listed, freely tradable publicly held securities, has been less than $2 million over a period of more than 20 consecutive days. Bestar has until October 30th to satisfy the criteria to maintain its listing. In the meantime, the Company will have the opportunity to present arguments before any final decision. If Bestar is unable to meet the eligibility requirements by October 30th, it intends to make arrangements to trade to the TXS Venture Exchange," Mr. Tardif mentioned.

"Considering the current state of the economy, the next few months might not be easy. Meanwhile, we continue our efforts to standardize raw materials and increase efficiency in order to maximize productivity. Our sale and management teams are focusing on the development of new products and customers. We are deploying every effort to face the many challenges that await us in the coming year," 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 - - - -

Net earnings (loss) 2007 104 79 17 50 250
2008 (103) (277) (160) (1,074) (1,614)
2009 206 - - - -

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 - - - -

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 - - - -

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 - - - -

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 - - - -

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 - - - -
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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 March 31, 2009 , as well as all other regulatory documents will be available, no later than May 15, 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