Distinction Group Inc.
TSX : GD

Distinction Group Inc.

July 15, 2010 09:31 ET

GDI Increases Net Earnings by 12.5% in Q2 2010

MONTREAL, QUEBEC, CANADA--(Marketwire - July 15, 2010) - Groupe Distinction Inc. (TSX:GD)

  • Net earnings of $1.4 million or $0.046 per share, up 12.5% from Q2 2009
  • Debt to equity ratio improves significantly to 0.41 in Q2 2010 vs. 0.52 in Q1 2010
  • Solid balance sheet with $6.5 million in cash, net of a $4.4 million reduction in long-term debt in Q2 2010
  • Acquisition of Cascadian Building Maintenance in Q3 2010

Groupe Distinction Inc. ("GDI" or the "Company") (TSX:GD) reported its results today for the second quarter and six-month period ended May 31, 2010. The financial statements and management discussion and analysis can be found on SEDAR at www.sedar.com.

GDI recorded revenues of $63.8 million in the second quarter of 2010, up 2.5% from $62.2 million in 2009, despite an increase in the office building vacancy rate, which rose from 7.5% to 10.1% during the last year. EBITDA stood at $3.2 million in 2010, compared to $3.4 million in 2009. The Company's net earnings reached $1.4 million or $0.046 per share, fully diluted, in 2010, compared to $1.2 million or $0.041 per share, fully diluted, in 2009.

For the six-month period ended May 31, 2010, revenues reached $128.0 million, compared to $122.6 million in 2009. EBITDA stood at $6.8 million in 2010, compared to $6.5 million a year ago. Net earnings totalled $3.1 million or $0.102 per share, fully diluted, in 2010, compared to $2.7 million or $0.089 per share, fully diluted, in 2009.

Claude Bigras, President and Chief Executive Officer of GDI, said, "The second quarter was similar to the first as we continued to focus on growing our operations organically, increasing profitability and reducing our long-term debt to strengthen our balance sheet and pursue our investment activities for the short term. Our long-term debt decreased from $22.7 million in November 2009 to $19.4 million in February 2010 and $15.1 million in May 2010, meaning that our debt to equity ratio is now 0.41 compared to 0.51 last quarter. In 2010, we will continue to focus on profitable growth of our operating activities and sound management of our financial position, which will enable us to take advantage of any opportunities that may arise."

GDI enjoys a strong financial position, with cash of $6.5 million, working capital of $14.2 million and credit facilities of up to $40 million, of which only $13.6 million was used as at May 31, 2010.

Outlook

"GDI is back in acquisition mode, acquiring Vancouver-based Cascadian Building Maintenance early in the third quarter of 2010. This acquisition will enable GDI to strengthen its service platform in the Greater Vancouver market and generate approximately $2 million in additional annual revenues. As part of our strategy of growth through acquisition, we are actively pursuing our efforts to identify other target companies that could meet our investment criteria. We are confident that we will be able to take full advantage of opportunities that arise in the coming quarters and further consolidate our position of leader on the Canadian market," concluded Mr. Bigras.

About GDI (Distinction Group Inc.)

GDI is a Canadian leader in janitorial services. Through its subsidiaries, GDI 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". 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. Readers should not rely unduly on such forward-looking statements.

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