Bestar Inc.
TSX : BES

Bestar Inc.

November 12, 2008 14:35 ET

Bestar: Third Quarter Ended September 30, 2008 Results

LAC-MEGANTIC, QUEBEC--(Marketwire - Nov. 12, 2008) - Bestar Inc. (TSX:BES) - Gross revenue for the quarter ending September 30, 2008 totalled CA$10,605,000, at the same level as the third quarter of 2007 which then totalled CA$10,613,000. For the first nine months of 2008, gross revenue totalled CA$31,124,000, a decrease of 5.6% compared to the CA$32,985,000 of the first nine months of 2007.

"Important efforts put forward to develop value-added products, which helped us strengthen relationship with our current customers and bring along some new ones, allowed us to maintain our revenue even though economy is going through rough times." explained Mr. Paulin Tardif, Bestar's president and CEO.

A loss before income taxes of CA$228,000 was recorded for the third quarter of 2008 compared to earnings before income taxes of CA$21,000 for the same period last year. For the first nine months, losses before income taxes stand at CA$742,000 compared to earnings before taxes of CA$288,000 for the same period in 2007.

Net losses stand at CA$160,000 or (CA$0.01) per share, for the third quarter of 2008, compared to a net profit of CA$17,000 or CA$0.00 per share for the same quarter in 2007 while a net loss for the first nine months of 2008 stands at CA$540,000, or (CA$0.04) per share, compared to a net profit of CA$200,000, or CA$0.02 per share, for the same period in 2007.

"Impact of variations from exchange rates and increase in interest charges, related to debt for the new equipment, explain the difference between results for the third quarter of 2008 and 2007" commented Mr. Tardif.

"These results still do not allow the Company to comply with certain restrictive covenants, namely maintaining certain financial ratios, specified under the credit agreements signed with one of its lender. No accelerated repayment has been demanded by the lender. Certain measures are being implemented to re-establish the situation." declared Mr. Tardif

"Many external factors, such as Canadian Dollar fluctuation, market volatility and the financial and economical crisis, could influence future results. Considering the current situation in the world wide economy, we can expect an increased slowdown in the market for the coming months. Facing this challenge, we will increase our effort to develop our customer basis and to enhance our profitability by using our new equipment to its full potential. Doing so should allow us to improve our position in both the furniture and the panel transformation sectors " concluded Mr. Tardif

Results Summary



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

Q1 Q2 Q3 Q4 Total
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Revenue 2006 8,535 6,619 8,338 9,817 33,309
2007 11,279 11,093 10,613 10,448 43,433
2008 10,950 9,569 10,605 - 31,124

Net earnings (loss) 2006 3 (599) (498) 127 (967)
2007 104 79 17 50 250
2008 (103) (277) (160) - (540)

Earnings (loss) per
common share 2006 0.00 (0.05) (0.04) 0.01 (0.07)
2007 0.01 0.01 0.00 0.00 0.02
2008 (0.01) (0.02) (0.01) - (0.04)

Fully diluted
earnings (loss)
per common share 2006 0.00 (0.05) (0.04) 0.01 (0.07)
2007 0.01 0.01 0.00 0.00 0.02
2008 (0.01) (0.02) (0.01) - (0.04)

Total Assets 2006 25,916 24,076 24,640 24,409 24,409
2007 25,671 25,783 25,337 25,874 25,874
2008 26,390 28,751 28,512 - -

Total Liabilities 2006 11,481 10,226 11,274 10,902 10,902
2007 12,123 12,089 11,586 12,104 12,104
2008 12,723 15,361 15,282 - -

Weighted average of
outstanding shares
(in thousands) 2006 13,038 13,038 13,038 13,038 13,038
2007 13,038 13,038 13,038 13,038 13,038
2008 13,038 13,038 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 September 30, 2008 , as well as all other regulatory documents will be available, no later than November 15, 2008, 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