GDG Environment Group Ltd.
TSX VENTURE : GDG

GDG Environment Group Ltd.

November 17, 2010 17:00 ET

GDG ENVIRONMENT GROUP Announces its 2010 Third Quarter Financial Results, Presents a Growth in Revenues of 15 % and Improves its Net Earnings by 120 %

TROIS-RIVIÈRES, QUEBEC--(Marketwire - Nov. 17, 2010) - GDG ENVIRONMENT GROUP (TSX VENTURE:GDG) today announced its financial and operating results for the three-and-nine month periods ended September 30, 2010 ("the quarter"). A Canadian recognized leader, GDG Environment Group offers a broad range of environmental services targeting the improvement of quality of life and the protection of public health. The Group is also a dominant business in the integrated control of biting flies in Canada. All dollars are expressed in Canadian dollars, unless otherwise specified.

"The Company reports a 15 % sales increase over the past quarter and a 24 % over the nine-month period ending September 30th 2010 translating in net results of $485,281 compared to $56,272 for the same nine-month period in 2009. "We are proud of having succeeded in the integration of our new subsidiary (Groupe Bio Services), and the cumulative results demonstrate that GDG was well prepared for growth", said Isabelle Martin, President and Chief Executive Officer.

QUARTERLY HIGHLIGHTS

  • Increase of 14.6 % in sales for third quarter and increase of 24.2 % in sales for the nine-month period ended September 30, 2010, compared to the same period in 2009.
  • Increase of 120.6 % in net income for the quarter resulting in a positive cumulated net income of $485,281 for the nine-month period ended September 30, 2010, compared to a net income of $56,272 for the same period in 2009.

FINANCIAL RESULTS - THREE-AND-NINE MONTH PERIODS ENDED SEPTEMBER 30 2010

The Company generated revenue in the amount of $8,278,562 for the nine-month period ended September 30, 2010 compared to $6,668,026 for the nine-month period ended September 30, 2009, being an increase of 24.2 %. The increase in sales is mainly attributable to the acquisition of GBS in March 2010.

  GDG ENVIRONMENT GROUP LTD. DATA EXTRACTED FROM CONSOLIDATED FINANCIAL STATEMENTS – EARNINGS  
(In thousands of dollars) For the three-month period ended   For the nine-month period ended  
  Sept. 30, 2010 (unaudited)   Sept. 30, 2009 (unaudited)   Sept. 30, 2010 (unaudited)   Sept. 30, 2009 (unaudited)  
  $   $   $   $  
Sales 3,193   2,786   8,279   6,668  
                 
Gross margin 1,196   939   3,022   2,247  
  37.5 % 33.7 % 36.5 % 33.7 %
EBITDA 754   532   1,546   852  
                 
Net income 315   143   485   56  

GDG Environment Group continues to put the emphasis on building a recurring revenue business.

Recurring revenues now represent an increasing percentage of its total sales that will benefit investors, while allowing us to maintain our close relationship with our customers.

The current Company's financial statements and management's discussion and analysis will be available on www.sedar.com and www.groupegdg.ca.

Non GAAP-financial measures

The Company uses only one financial measure that is not consistent with Canadian GAAP, namely earnings before interest, income taxes, depreciation and amortization (EBITDA). Such a measure is used because management believes that it provides meaningful information about the Company's performance and operating results. Such a non-GAAP measure has no standardized meaning as prescribed by GAAP and is not necessarily comparable to similarly titled measures presented by other companies. Accordingly, it should not be considered independently of other figures.

About GDG Environment Group (www.groupegdg.com)

Since 1980, GDG Environment Group, a recognized Canadian leader in the integrated control of biting flies, offers a broad range of environmental services targeting the improvement of quality of life and the protection of public health, mainly through the biological control of biting flies, vector control and the surveillance and prevention of West Nile virus in Canada.

GDG Environment Group operates 4 divisions: GDG Environnement, front-runner in the biological control of biting flies and vector control, GDG Aviation which manages all aerial operations for the Group and Diamond Sylvico, a Northern Quebec subsidiary, firmly established in the Cree Communities of Quebec and Groupe Bio Services which services are a great complement to the ones offered by GDG Environment Group.

The Group markets its expertise throughout the country and has a strong team of scientists and managers plus a team of nearly 200 professionals and technicians in the summer. The Group is established as the most important player in Canada, after more than 600 successful mandates, in the field of biological control of biting flies and in the management of disease vectors. The Company focuses on organic growth on the international market and on forming strategic partnerships.

GDG Environment Group is listed on the TSX Venture Exchange under the ticker "GDG" - (TSX-V:GDG). The TSX Venture Exchange Inc. does not accept responsibility for the adequacy or accuracy of this press release.

Contact Information

  • GDG Environment Group Ltd.
    Isabelle Martin
    President and Chief Executive Officer
    819-373-3097 ext. 130
    isabelle.martin@gdg.ca