Distinction Group Inc.
TSX : GD

Distinction Group Inc.

October 14, 2010 12:15 ET

Record Results for GDI in Q3 2010

MONTREAL, QUEBEC, CANADA--(Marketwire - Oct. 14, 2010) - Distinction Group Inc. (TSX:GD)

  • Revenues up 3.4% to a record $65.5 million

  • Net earnings up 20.5% to $2.4 million or $0.077 per share

  • Solid balance sheet, with $19.9 million in working capital and $5.3 million in cash

  • Acquisition and integration of Cascadian Building Maintenance of Vancouver

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

GDI posted a record performance in terms of revenue and profitability during the third quarter of 2010. Revenues increased by 3.4% to $65.5 million, up from $63.3 million in 2009. EBITDA was $4.6 million, compared to $4.1 million in 2009. Net earnings reached $2.4 million or $0.077 per share, fully diluted, in 2010, up 20.5% from $2.0 million or $0.064 per share, fully diluted, in 2009.

For the nine-month period ended August 31, 2010, revenues amounted to $193.5 million compared to $185.9 million in 2009, and EBITDA was $11.5 million compared to $10.7 million a year ago. Net earnings for the first nine months of 2010 totalled $5.5 million or $0.179 per share, fully diluted, compared to $4.7 million or $0.153 per share, fully diluted, in 2009.

Claude Bigras, President and Chief Executive Officer of GDI, said, "These are the best results reported by GDI to date. The cost cutting measures introduced during the last few quarters have proved effective, as shown by our 20.5% increase in third quarter net earnings."

"We will pursue our efforts to achieve additional cost savings during the coming quarters, which, combined with our objectives of revenue growth and sound balance sheet management, will enable us to take advantage of any acquisition opportunities that may arise," added Mr. Bigras.

During the third quarter, the Company completed the acquisition of the assets of Cascadian Building Maintenance Ltd ("Cascadian") through its subsidiary Omni Facility Services Canada Limited. This acquisition will enable GDI to strengthen its service platform in the Greater Vancouver market.

GDI enjoys a strong financial position, with cash of $5.3 million, working capital of $19.9 million and, following the restructuring of its global financing agreement in the third quarter, credit facilities of up to $50 million, of which only $16.5 million was used as at August 31, 2010.

Outlook

"GDI is in excellent position to continue its growth and further consolidate its leadership position in the Canadian market. During the coming quarters, we will pursue efforts to increase our market share while maintaining our profitability targets. As part of our strategy of growth through acquisition, we are pursuing our efforts to identify other target companies that could meet our investment criteria and rapidly contribute to GDI's success," 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.

Contact Information