Distinction Group Inc.

Distinction Group Inc.

December 10, 2007 17:29 ET

Distinction Group Releases its Financial Results for the Third Trimester of 2007

MONTREAL, QUEBEC--(Marketwire - Dec. 10, 2007) - Groupe Distinction Inc. (TSX:GD), a Canadian Leader and most trusted building services company, announced today its financial results for the third quarter ended August 31st, 2007.


- Distinction Group has now completed its arrangement plan with Dacha (TSX VENTURE:DAC) and is traded on the Toronto Stock Exchange (TSX) since November 23, 2007; this arrangement has enabled the company to increase its capital by 10 million dollars. (8 million from Dacha and 2 million from a private placement).

- For the nine months ending on August 31st 2007, sales increased by 15.8% to 73,480,623$ million dollars in relation to 62,440,444$ for the equivalent period in 2006.

- EBITDA has increased by 5.6% for the nine months period in relation to the same period in 2006 an increase of 271,000$ dollars

- Net earnings have increased by 41.3% for the nine months period in 2007 to 2,756,663$, in relation to the same period in 2006 at 1,950,519$

- Gross margin increased from 17.3% to 18.24% of revenues

- Equity was at 17,069,301$ before the arrangement took place.

Selected Quarterly Financial Information:

For the nine-months period ended August 31, 2007

Total Third Second First
(9 months) Quarter Quarter Quarter
Revenue 73,480,623 24,241,058 25,195,413 24,044,152
Net income for the
period 2,756,661 1,018,209 931,426 807,028
EBITDA 5,126,903 1,737,033 1,765,495 1,634,375
Basic net income
per share 0.095 0.035 0.032 0.028
Diluted net income
per share 0.090 0.034 0.030 0.026

(1) EBITDA (Earning before interest, income taxes, depreciation and

"We are pleased with our operational results in line with our budget as well as sales and gross margin revenues as reflected in our third quarter results. The company has also achieved an important phase in its business plan by completing an arrangement plan with DACHA Capital Inc. and is now traded on the Toronto Stock Exchange (TSX)." said Mr. Claude Bigras, president and CEO. "These operations completed will now allow the Group to focus and accelerate its growth in Quebec as well as the rest of Canada through a well balanced acquisition plan organic growth."


To grow and achieve its goals moving forward, Groupe Distinction will implement its strategy and will move ahead with one vision and one commitment, and has embarked on an era of exciting and sustainable growth in shareholder value.

About Groupe Distinction Inc.

Distinction is a Canadian leader in janitorial services. Through its subsidiary company Service d'entretien Distinction Inc. and 3000 employees throughout Canada, Distinction offers janitorial and ground services in various real estate sectors such as office buildings, commercial buildings, industrial facilities, bio-pharmaceutical laboratories or institutional and health establishments.

Distinction's network comprises its subsidiary companies: Montcalm Services Techniques, providing building operations and maintenance services, Distinction Plus a micro franchise infrastructure where a network of 400 franchisees operate more than 2,000 projects throughout Quebec and Ontario and Steamatic Canada inc. a leading Canadian franchisor where a network of 54 franchisees provide disaster restoration services.

More recent information and additional information on the Company may be consulted on the internet site SEDAR at the address http://www.sedar.com.

Certain declarations made in the financial statements, in particular regarding the expectations of Distinction, are prospective statements. They carry risks and uncertainties known and unknown and can have for effect that the true future results of the Company vary noticeably from those anticipated.

Contact Information