Distinction Group Inc.

Distinction Group Inc.

February 25, 2011 06:00 ET

GDI Posts Strong Results in 2010

- Revenues up 3.4% to a record $259.6 million

- Net earnings up 19.9% to a record $7.9 million or $0.257 per share, fully diluted

- Solid balance sheet, with $15.8 million in working capital and $7.9 million in cash

- Debt-to-equity ratio of 0.29 in 2010 versus 0.63 in 2009

- Closing of two acquisitions in Western Canada in 2010

MONTREAL, QUEBEC, CANADA--(Marketwire - Feb. 25, 2011) - Distinction Group Inc. ("GDI" or the "Company") (TSX:GD) reported its results today for the fiscal year ended November 30, 2010. The financial statements and management discussion and analysis can be found on SEDAR at www.sedar.com.

GDI continued to post a strong performance in terms of revenue and profitability in 2010. Revenues increased by 3.4% to $259.6 million, up from $251.1 million in 2009. EBITDA was $16.2 million, compared to $14.5 million in 2009. Net earnings reached $7.9 million or $0.257 per share, fully diluted, in 2010, up 19.9% from $6.6 million or $0.217 per share, fully diluted, in 2009.

Claude Bigras, President and Chief Executive Officer of GDI, said that: "The results for the last quarter and year as a whole are in line with our business plan. We continued to focus on our operations by increasing profitability and reducing long-term debt to strengthen our balance sheet and pursue our investment activities for the short term. As the global economy is slowly recovering, 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." 

During the first quarter of 2011, GDI acquired SOS Janitorial Ltd. This transaction will enable GDI to strengthen its service platform in Saskatchewan and generate approximately $5 million in additional annual revenues. In the third quarter of 2010, GDI also acquired Cascadian Building Maintenance Ltd., which mainly serves the Greater Vancouver Area.

GDI enjoys a strong financial position, with cash of $7.9 million, working capital of $15.8 million and credit facilities of up to $50 million. The Company reduced its long-term debt and its redeemable preferred shares substantially during the year, from $27.2 million in 2009 to $15.0 million in 2010, resulting in a debt-to-equity ratio of 0.29 (0.63 in 2009).


"With our strong cash position, GDI is back in acquisition mode. As part of our strategy of growth through acquisition, we are actively pursuing our efforts to identify other target Canadian or US companies that operate in the facilities services arena, whether in technical or janitorial services, and meet our investment criteria. In 2011, we are confident that we will be able to take full advantage of opportunities that arise in the coming quarters to both reinforce our Canadian service platform and establish our presence in new markets," concluded Mr. Bigras

About GDI (Distinction Group Inc.)

GDI is a Canadian leader in the facility services industry. Through its subsidiaries, GDI provides a range of industrial janitorial, mechanical maintenance and other related services to various segments of the real estate industry across Canada.

Additional information on the Company can be found on the GDI website at www.gdiservices.ca 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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