Gienow Windows & Doors Income Fund

Gienow Windows & Doors Income Fund

March 29, 2007 16:01 ET

Gienow Windows & Doors Income Fund Announces the Results of Operations for the Year Ended December 31, 2006

CALGARY, ALBERTA--(CCNMatthews - March 29, 2006) -


Gienow Windows & Doors Income Fund (the "Fund") (TSX:GIF.UN) is pleased to provide the results of operations for the years ended December 31, 2006 and 2005. The Fund's audited consolidated financial statements and Management's Discussion and Analysis ("MD&A") for the years ended December 31, 2006 and 2005 are available on the Fund's website at All numbers are expressed in thousands of dollars except per unit information.

Highlights and Major Events for the Year

- The Fund's backlog, defined as committed orders and signed contracts expected to be delivered within the next 12 months, remains at greater than $42 million, validating the continued strong demand for the Fund's products and services for the new home construction and high rise buildings.

- Total sales from continuing operations for the year ended December 31, 2006, were $203,644 up from $193,482 over the previous comparable period representing year over year growth of 5%.

- EBITDA for the year ended December 31, 2006 was $32,956 compared to $33,482 in the previous comparable period and in-line with management's revised expectations for the year and up from $31,208 in the Proforma 2004 Year.

- Gross profit for the year ended December 31, 2006 was $61,589, or 30.2%, up from $60,152, or 31.1% in previous comparable period.

- Selling and G&A expenses were $28,182 or 13.8% of sales, as compared to $26,269 or 13.6% of sales in the previous comparable period.

Strategic Review Update

On November 8, 2006 the Fund announced that it formed a special committee composed of independent members of the Board of Trustees to identify, examine and consider strategic alternatives to maximize unitholder value. The special committee has engaged RBC Capital Markets as its exclusive financial in this regard and the process is underway.

As part of this review process, the Fund concluded that the operations of the Chantecler Windows & Doors Limited Partnership ("Chantecler Partnership") no longer met the strategic objectives of the Fund. Accordingly, in December 2006 the Fund agreed to dispose of certain assets of the Chantecler Partnership to its former management in exchange for their assumption of certain liabilities. The respective net assets have been presented as assets and liabilities of discontinued operations and the related operating activities have been presented as discontinued operations. A loss of $3,356 was recorded on the disposal of the assets and liabilities.

On January 26, 2007, the Fund announced the appointment of Mr. Michael Lefroy as its new CEO effective May 1, 2007. The Fund is continuing to evaluate other strategic and financial alternatives and will provide further details as they become available.


"We continue to experience record sales demands within our core Western Canadian new construction single family and multi-family markets and we have seen a stabilization in our Eastern Canadian home renovation business" said David Munro, President and Chief Executive Officer. "Overall, our sales grew organically at greater than 5% despite a softening in our Eastern Canadian and Northeastern USA sales base."

"Our backlog exiting the year remained relatively flat over the end of the third quarter, at greater than $42 million, despite very strong sales volumes in the fourth quarter. The strength and continuity of our backlog is a positive indication that the core markets for our products and services remain very healthy."

"Our strategic review process is underway that we believe will further position the Fund for greater success. We are continuing to evaluate additional financial and strategic alternatives with an end goal of maximizing unitholder value. As new developments occur, we will communicate those accordingly."


Mr. Munro concluded that "despite continued challenges with Western Canadian labor availability and input costs; and a softening in our Eastern Canadian and Northeastern USA outlook, we were able preserve a base EBITDA of $33.0M. In the context of our value maximization process our focus in 2007 will be on improving the operations of our current business units, maximizing the returns of cost reduction programs and increasing sales. We are confident that the demands for our products and services will continue to be strong and that we are well positioned. Our business operations and business model remain sound in every respect and our management team is committed to achieving continued growth from our current business operations."

Management will host a conference call today at 3:30 PM (MDT) to discuss the Fund's financial results for the years ended December 31, 2006 and 2005. The conference call dial-in number is 1-888-433-1657. A replay of the conference call will be available by dialing either 1-416-626-4100 or 1-800-558-5253, pass-code 21332946#, until 5:00 p.m. (MST) on Friday April 6, 2007 or by listening to it at the Fund's website

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