GDG Environment Group Ltd.

GDG Environment Group Ltd.

April 17, 2009 15:26 ET

GDG ENVIRONMENT GROUP Announces Its First 2008 Financial Results, Increases Its Net Profit and Confirms Its Growth Plan

TROIS-RIVIERES, QUEBEC--(Marketwire - April 17, 2009) - GDG ENVIRONMENT GROUP, (TSX VENTURE:GDG), a Canadian recognized leader in the integrated control of biting flies, focused since 1980 in offering a broad range of environmental services targeting the improvement of quality of life and the protection of public health, today announced its financial and operating results for the fourth quarter and year ended December 31, 2008. All amounts in this release are expressed in Canadian dollars unless otherwise indicated.

"In 2008, GDG Environnement became GDG Environment Group, the first environmental and public health company of its kind to go public. This was not only an important event for everyone in that environmental and public health market, it was also one of the most significant milestone our Company has achieved so far," said Jean-Guy Lanouette, Chairman of the board and former CEO of GDG Environnement. "We are pleased to report our financial results for 2008 despite the economical situation of the latter part of the year."

Financial Highlights (GDG Environment Group became public on April 24th, 2008):

- Revenues of $7.7M, up close to 2% compared to $7.6M in 2007;

- Financial charges of $463,057, compared to $82,610 in 2007, due to new capital structure;

- EBITDA of $0,79M, compared to $1.04M in 2007;

- Net profit of $701,000 compared to $512,439 in 2007;

- Earnings per share of $0.01 on common shares;

- As at December 31, 2008, the Company's cash and cash equivalents amounted to $1.162 million compared to $1.014 million as at December 31, 2007.

- As at December 31, 2008 the Company had 59 621 685 common shares and 1 546 450 stock options outstanding where 749 050 are exercisable options.

- GDG Environnement has maintained for the past two years about 65 % of its annual revenues as backlog due to long term contracts representing more than 5 M$ of sales.

The present table summarizes the consolidated financial statements

Fiscal year Fiscal year
ended ended
(In thousands of dollars) December 31 December 31
2008 2007
$ $
Sales 7,762 7,618
Cost of sales 5,157 4,825
Gross margin 2,605 2,793
33.6% 36.7%
Selling and administrative expenses 1,781 1,719
Research and Development 33 31
Financial charges 463 82
Depreciation of fixed assets 274 279
Total operating expenses 2,551 2,111
Earning before the following items: 54 682
Other revenue (expenses) 584 11
Earnings before income tax 638 693
Income taxes (recovered) (63) 181
Net earnings 701 512
Net earnings per share - Basic (note 23) 0.01 0.01
Net earnings per share - Diluted 0.01 0.01

Note: Comparative data for the periods prior to September 30, 2008,
represent financial data of the subsidiary G.D.G. Environnement ltee without
taking into account the reverse takeover with Theseus Capital Inc. on April
24, 2008.

Total revenue for 2008 was predominantly attributable to the nuisance activities (control of the biting flies market). Since 2006, the Ministere de la Sante et des Services sociaux (MSSS) has reduced its West Nile Virus prevention and control program activity, generating a reduction in revenue for GDG Environnement in that market (which is less than 20% of GDG Environnement group's total revenues). An increase of close to 2% in revenues from 2007 to 2008 shows that the Company's strategy to manage this situation is working.

The financial charges of $463,057, compared to $82,610 in 2007, are directly linked to the interest expenses and debentures issued at the reverse take over activity of April 24th, 2008 (refer to note 15 of the financial statements).

The net profit of $701,000 includes an amount of $575,000 coming from a life insurance payment.

At year end, the company's cash position increased 15% from $1.014 million in 2007 to $1.162 million in 2008.

The Company's annual financial statements and management's discussion and analysis will be available on and

2008 Other Highlights:

- Closing of a $4.25 million financing via a reverse take-over operation to go on the public market;

- Buying of a new fourth helicopter Bell 206B Jet Ranger III, bringing the fleet to a total of 8 moderns aircrafts, in a way to increase the quality of services offered by its subdivision GDG Aviation;

- Modernization of its fleet of more than 120 road vehicles;

- Signature of our first contract in Ontario for the biological control of biting flies;

- Signature of the longest contract duration (7 years) with Department of National Defence (contract in Five Wing Goose Bay in Labrador).


Environment and public health are key words in the actual economy we are living in. Nobody can remain quiet to it.

In the coming quarters, GDG Environment Group, with its three divisions GDG Environnement, GDG Aviation and Diamond-Sylvico, is focused on expanding its activities in additional regions across Canada and will also continue to prepare for its commercial growth in other global regions and complementary markets.

"The future is shining for GDG Environment Group", said Jean Sebastien Berube, new President and CEO of GDG Environment Group since February 17th, 2009, "The management is committed to actively and carefully evaluate new investment opportunities to take full advantage of our new position on the market, while continuously maximizing the value of our expertise which will continue to reward our new shareholders, our employees and the customers with which we operate."

Notice of Annual General Meeting:

GDG Environment Group will hold its Annual General Meeting of Shareholders on May 26th 2009 at 14:00 at their corporate headquarters, 430 St-Laurent, 2nd floor, Trois-Rivieres, Quebec.

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 (

Since 1980, GDG Environment Group, a recognized Canadian leader in the integrated control of biting flies, offers a broad range of 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 3 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 Community of Waskaganish (James Bay territory).

GDG Environment Group relies on substantial logistics for the realizations of its mandates: a taxonomy and molecular biology laboratory, a modern fleet of 8 airplanes and helicopters and more than 120 road vehicles.

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 500 successful mandates in the field of biological control of biting flies and in the management of disease vectors.

Listed on the TSX Venture Exchange since April 2008, the shares of GDG Environment Group are traded under the ticker "GDG" - (TSX VENTURE:GDG).

Forward-looking statements

This press release contains forward-looking statements which reflect GDG Environment Group's current expectations regarding future events. Those statements involve known and unknown risks and uncertainties, which could cause the Company's actual results, performance and achievements to differ materially from those in the forward-looking statements. GDG Environment Group disclaims any obligation to update these forward-looking statements.

The TSX Venture Exchange Inc. does not accept responsibility for the adequacy or accuracy of this press release.

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