Distinction Group Inc.

Distinction Group Inc.

April 13, 2011 06:00 ET

GDI's Net Earnings Growth Continues with a 22.9% Increase in Q1 2011

- Revenues up 1.3% to $65.1 million

- Net earnings up 22.9% to a record $2.1 million or $0.069 per share, fully diluted

- Solid balance sheet, with working capital of $14.1 million

- Debt-to-equity ratio of 0.27 in Q1 2011 versus 0.29 in Q4 2010

- Acquisition of SOS Janitorial Services Ltd. in Q1 2011

MONTREAL, QUEBEC--(Marketwire - April 13, 2011) -Distinction Group Inc. ("GDI" or the "Company") (TSX:GD) reported its results today for the first quarter ended February 28, 2011. The financial statements and management discussion and analysis can be found on SEDAR at www.sedar.com.

GDI continued to improve its profitability in the first quarter of 2011. Revenues totalled $65.1 million, up 1.3% from $64.2 million in 2010. EBITDA amounted to $4.3 million compared to $3.7 million in 2010. Net earnings for 2011 were $2.1 million or $0.069 per share, fully diluted, up 22.9% from $1.7 million or $0.056 per share, fully diluted, in 2010.

Claude Bigras, President and Chief Executive Officer of GDI, said: "This strong quarter-over-quarter growth in profitability shows that we are successfully executing our strategy of focusing on the profitable growth of our operations and sound management of our financial position. During the quarter, we finished integrating Cascadian Building Maintenance Ltd., which had a very positive impact on our Vancouver operations. We are also making good progress on integrating SOS Janitorial into the group. This acquisition will enable us to strengthen our Saskatchewan service platform and generate approximately $5 million in additional annual revenues."

GDI enjoys a strong financial position, with $14.1 million in working capital, $1.1 million in cash and up to $50 million in credit facilities. Cash decreased by $6.8 million during the quarter mainly due to the acquisition of SOS Janitorial, partial repayment of the long-term debt and the purchase of property, plant and equipment. The Company reduced its long-term debt and redeemable preferred shares during the first quarter from $15.0 million at November 30, 2010, to $14.3 million at February 28, 2011, resulting in a debt-to-equity ratio of 0.27 (0.29 at November 30, 2010).


"As we indicated last quarter, we will pursue our efforts to improve the organic growth and profitability of our operations while working to identify other Canadian or US target companies that operate in the facilities services arena, whether in technical or janitorial services, and that meet our investment criteria," 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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