Distinction Group Inc.

Distinction Group Inc.

October 15, 2009 12:56 ET

Groupe Distinction Reports Record Earnings for the Third Quarter of 2009

MONTREAL, QUEBEC, CANADA--(Marketwire - Oct. 15, 2009) -

- Record revenues of $63.3 million in the third quarter

- EBITDA of $4.1 million, up $0.8 million from Q2 2009

- Net earnings of $2.0 million or $0.064 per share

- Initiation of the next phase of growth by acquisition

Groupe Distinction Inc. ("GDI" or the "Company") (TSX:GD) announced its results today for the third quarter and nine-month period ended August 31, 2009. The financial statements and management discussion and analysis can be accessed on SEDAR at www.sedar.com.

GDI continued to post record revenues, with third quarter revenues amounting to $63.3 million in 2009 compared to $57.8 million in 2008. This increase resulted partly from acquisitions in the first quarter of 2009, combined with 3.7% organic growth in comparable units since the third quarter of 2008, despite a very challenging economic climate. Revenues by comparable units were also up 1.8% from the second quarter of 2009, equivalent to an annual growth rate of 7.4%. For the nine-month period ended August 31, 2009, revenues totalled $185.9 million, up from $109.1 million a year earlier.

EBITDA was at $4.1 million, essentially unchanged from the third quarter of 2008 but up 24% from $3.3 million in the second quarter of 2009. For the nine-month period ended August 31, 2009, EBITDA was $10.7 million, up 50% from $7.1 million in 2008.

For the third quarter of 2009, GDI recorded net earnings of $2.0 million or $0.064 per share, fully diluted, compared to $1.9 million or $0.06 per share, fully diluted, in 2008. For the nine-month period ended August 31, 2009, net earnings amounted to $4.7 million or $0.153 per share, fully diluted, compared to $3.5 million or $0.114 per share, fully diluted, in 2008.

"We are pleased with our quarterly results, as well as proud, as they were generated through very active management and very tight cost control," stated Claude Bigras, President and Chief Executive Officer of GDI. "These are our best results since we became public, and were achieved in a very difficult economic climate. The integration of the Omni and Empro acquisitions is progressing as planned, along with our efforts to grow our activities organically. We have also continued to prioritize credit risk and cash management, which has enabled GDI to reduce accounts receivable by $3.5 million since the beginning of the year, post cash assets of $5.9 million, and avoid drawing on our credit line in the past six months."

GDI enjoys a solid financial position, with working capital of $17.6 million and credit facilities varying from $30 to 40 million, of which about $20 million remained available at August 31, 2009.


"In the coming quarters, we will return to the strategy that made GDI a Canadian leader in the building services industry. We believe that the time is right to reinitiate our acquisition growth strategy. We will seek out potential targets that could rapidly contribute to meeting our growth and profitability targets. At the same time, we will continue managing our activities to further organic growth and improve return while prioritizing sound management of our credit risk and cash," concluded Mr. Bigras.

About Distinction Group Inc. (GDI)

GDI is a Canadian leader in janitorial services. Through its subsidiaries Service d'entretien Distinction Inc., Omni Facility Services Canada Limited, Services d'entretien Empro Inc., Montcalm Services Techniques Inc., Distinction Services Plus Inc. and Steamatic Canada Inc., Distinction 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", including, but not limited to, statements regarding the strategic plans, future financial results and overall outlook for the Company. Forward-looking statements express, as of the date of this press release, the Company's plans, estimates, forecasts, projections, expectations and opinions regarding future events and results. 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. Risks and uncertainties that could cause actual results and future events to differ materially from the current expectations expressed or implied by such forward-looking statements include, but are not limited to, the risks described in the management discussion and analysis for the period ended May 31, 2009. Readers should not rely unduly on such forward-looking statements.

Contact Information