Distinction Group Inc.

Distinction Group Inc.

July 15, 2009 18:55 ET

Distinction Group Continues to Grow in the Second Quarter of 2009

MONTREAL, QUEBEC, CANADA--(Marketwire - July 15, 2009) -

- Record revenues of $62.2 million, up 139% from last year

- EBITDA up 134% at $3.3 million

- Net income of $1.2 million or $0.041 per share

- Cash up $6.3 million from Q1 2009

Distinction Group Inc. ("GDI" or the "Company") (TSX:GD) announced its results today for the second quarter and the six-month period ended May 31, 2009. The financial statements and management discussion and analysis are available on SEDAR at www.sedar.com.

GDI increased its revenues by 139% to $62.2 million in the second quarter of 2009 compared to $26.1 million in 2008. This increase resulted primarily from the acquisition of Omni Facility Services Canada Limited and Services d'entretien Empro Inc. in June 2008, which contributed $33.7 million to total revenues for the quarter. For the six-month period ended May 31, 2009, revenues were $122.6 million, up from $51.2 million a year ago.

EBITDA grew by 134% to $3.3 million in the second quarter of 2009 from $1.4 million in 2008, mainly due to an added contribution of $1.6 million from the acquired companies. For the six-month period ended May 31, 2009, EBITDA stood at $6.5 million, up from $2.9 million in 2008.

For the second quarter of 2009, GDI recorded net income of $1.2 million or $0.041 per share, fully diluted, compared to $0.8 million or $0.027 per share, fully diluted, in 2008. For the six-month period ended May 31, 2009, net income stood at $2.7 million or $0.089 per share, fully diluted, compared to $1.6 million or $0.053 per share, fully diluted, in 2008.

"GDI achieved its set objectives in the second quarter, continuing to grow and strengthening its balance sheet despite a more difficult economy," said Claude Bigras, President and Chief Executive Officer of GDI. "Not only did the Omni and Empro acquisitions add substantially to our revenues, we achieved 3% growth in organic sales relative to the first quarter of 2009. Our efforts to manage our credit and liquidity risk also bore fruit, as we increased our cash assets by $6.3 million in the second quarter."

GDI enjoys a solid financial position, with working capital of $15.9 million and credit facilities varying from $30 to $40 million, of which about $20 million was used as at May 31, 2009.


For the coming quarters, we will still be aiming to optimize our operations through the integration of our recent acquisitions, very strict cash management and tightened credit policy," Mr. Bigras indicated. "We also remain on the lookout for potentially strategic acquisitions that could contribute rapidly to growth and profitability."

About Distinction Group Inc. (GDI)

GDI is a Canadian leader in janitorial services. Through its subsidiaries Service d'entretien Distinction Inc., Omni Facility Services Canada Limited, Services d'entretien Empro Inc., Montcalm Services Techniques Inc., Distinction Services Plus Inc. and Steamatic Canada Inc., Distinction provides a range of industrial janitorial, mechanical maintenance and other related services to various segments of the real estate industry.

Additional information on the Company can be found on the GDI website at www.groupedistinction.com and on the SEDAR website at www.sedar.com.

Forward-Looking Statements

This press release may contain certain "forward-looking statements", including, but not limited to, statements regarding the strategic plans, future financial results and overall outlook for the Company. Forward-looking statements express, as of the date of this press release, the Company's plans, estimates, forecasts, projections, expectations and opinions regarding future events and results. Forward-looking statements are subject to certain risks and uncertainties, many of which are beyond the Company's control. There can be no assurance that such statements will prove to be accurate. Consequently actual results and future events may differ materially from those anticipated by such statements. Risks and uncertainties that could cause actual results and future events to differ materially from the current expectations expressed or implied by such forward-looking statements include, but are not limited to, the risks described in the management discussion and analysis for the period ended May 31, 2009. Readers should not rely unduly on such forward-looking statements.

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