Distinction Group Inc.

Distinction Group Inc.

March 02, 2009 23:43 ET

Distinction Group Reports a Record Year

MONTREAL, QUEBEC, CANADA--(Marketwire - March 2, 2009) - Distinction Group Inc. (TSX:GD)

- Distinction boosts net income by 63% to $4.9 million or $0.162 per share

- EBITDA up 66% to $10.3 million

- 71% increase in revenues to $169 million

Distinction Group Inc. ("GDI" or the "Company") (TSX:GD) announced its results today for the year ended November 30, 2008. The financial statements and management discussion and analysis are available on SEDAR at www.sedar.com.

Revenues for the year ended November 30, 2008, were up 71% at $169 million compared to $99 million in 2007. This increase resulted primarily from the acquisition of Omni Facility Services Canada Limited ("Omni") and Service d'entretien Empro Inc. ("Empro") in June 2008.

EBITDA grew by 66% to $10.3 million or 6.1% of revenues in fiscal 2008 from $6.2 million or 6.2% of revenues in 2007.

GDI increased its net income by 63% in 2008, to $4.9 million or $0.162 per share, fully diluted, from $3.0 million or $0.137 per share, fully diluted, in 2007.

"2008 was a milestone year for Distinction Group," said Claude Bigras, President and Chief Executive Officer of Distinction Group. "Barely one year after going public, thanks to the Omni and Empro acquisitions and the solid performance of our other subsidiaries, we are on our way to annual revenues of over $240 million, well above the target we set for ourselves in 2007. We can also claim record earnings and excellent growth prospects for the coming years. This success is the fruit of the unstinting efforts of our management team and Distinction Group employees across Canada."

GDI enjoys a solid financial position with working capital of $14.6 million and credit facilities varying from $30 to $40 million, of which approximately $20 million was used as at November 30, 2008.


"This year, we will continue to pay close attention to improving profitability and growing our revenues," added Mr. Bigras. "In the past quarter, we began implementing an integration plan for our recent acquisitions that should enable us to generate operating synergies and enjoy considerable recurring savings over the coming quarters. We will also continue to focus on managing our treasury efficiently while controlling our costs."

"We have also introduced measures to pursue our organic growth, including the establishment of a national sales and marketing strategy, as well as a company-wide environmental strategy. These initiatives will set us apart from the competition and strengthen our leadership position across Canada. That being said, we remain on the lookout for strategic acquisitions that complement our service offer, our geographic coverage or our client base, provided they also meet our stringent financial criteria."

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, Service 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 November 30, 2008. Readers should not rely unduly on such forward-looking statements.

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