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GDG Environment Group presents its financial results for the third quarter of 2009 and improves its EBITDA during the last quar

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  Published in House and Home on Wednesday, November 25th 2009 at 13:39 GMT by Market Wire
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 - The Company recorded an increase of 24.0% in EBITDA for the quarter ended September 30, 2009 compared to an EBITDA of 21.4% for the same quarter of 2008. - In the last quarter, the Group's strategy to expand its services to municipalities has materialized into many contracts awarded for the ecological control of ragweed. Financial results - three-month period ended September 30, 2009 - Operating expenses have decreased by 10.5%, or $658,065, for the three- month period ended September 30, 2009 compared to $735,484 for the same quarter in 2008. Non recurring charges helped reduce the expenditure for the quarter ended September 30, 2009 compared to the same period in 2008. - Sales totalled $2,967,148 for the three-month period ended September 30, 2009 compared to $3,029,393 for the corresponding period in 2008, being a decrease of 2.1 %. The reduction in sales for the three-month period ended September 30, 2009 is due to current financial markets bringing pressure on prices resulting from a tighter business environment. The contracts related to ragweed's control over the last three-month period have reduced the impact on sales reduction. - For the three-month period ended September 30, 2009, gross margin was established to $1,115,446 compared to $1,171,833 for the same period a year earlier. It represents 37.6% of the sales compared to 38.7% for the same quarter in 2008. - The Company recorded, for the three-month period ended September 30, 2009, an EBITDA of $713,523 (24.0%) compared to $648,638 (21.4%) for the three-month period ended September 30, 2008. It represents an improvement over the quarter mainly due to lower sales and administrative costs. - Net income is at $314,693, or $0.01 per share, for the three-month period ended in September 30, 2009 compared to net income of $291,464 for the same period in 2008. There was an increase in quarterly net earnings compared to the same period last year despite the decrease in revenues and increased financial expenses. Financial results - nine-month period ended September 30, 2009 - Sales totalled $6,731,367 for the nine-month period ended September 30, 2009 compared to $7,182,599 for the corresponding period in 2008, being a decrease of 6.3%. The reduction in sales for the nine-month period is due to current financial markets bringing pressure on prices resulting from a tighter business environment. - For the nine-month period ended September 30, 2009, the gross margin was $2,315,382 compared to $2,358,795 for the same period a year earlier. A reduction of material resources, and the use of GPS (Global Positionning System) technology throughout operations, has resulted in an improvement of gross margin being at 34.4% during the last three quarters of 2009 compared to 32.8% during the same quarters in 2008. - For the nine-month period ended in September 30, 2009, the Company recorded net earnings of $109,792 compared to net earnings of $996,306 for the same period in 2008. The decrease in net earnings as at September 30, 2009, compared to the same period last year, is due to the decrease in revenues, increased financial costs and professional expenses related to maintaining a public company. It is also linked to the deployment of human resources in the research and development of new market niches and for international development. ------------------------------------------------------------------------- ------------------------------------------------------------------------- GDG ENVIRONMENT GROUP LTD. DATA EXTRACTED FROM CONSOLIDATED FINANCIAL STATEMENTS - BALANCE SHEET ------------------------------------------------------------------------- ------------------------------------------------------------------------- (In thousands For the three-month For the nine-month of dollars) period ending period ending ------------------------------------------------------------------------- ------------------------------------------------------------------------- September September September September 30, 2009 30, 2008 30, 2009 30, 2008 (unaudited) (unaudited) (unaudited) (unaudited) ------------------------------------------------------ ------------------------------------------------------ $ $ $ $ ------------------------------------------------------------------------- Sales 2,967 3,029 6,731 7,183 ------------------------------------------------------------------------- Cost of sales 1,852 1,857 4,416 4,824 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Gross margin 1,115 1,172 2,315 2,359 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Selling and administrative expenses 384 518 1,288 1,247 ------------------------------------------------------------------------- Research and Development 18 5 91 26 ------------------------------------------------------------------------- EBIDTA(1) 713 649 936 1,086 ------------------------------------------------------------------------- Financial charges 180 144 523 270 ------------------------------------------------------------------------- Depreciation of fixed assets 76 68 220 194 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Total operating expenses 658 735 2,122 1,737 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Earning before the following items: 457 437 193 622 ------------------------------------------------------------------------- Other revenue (expenses) (12) (5) (26) 589 ------------------------------------------------------------------------- Earnings before income tax 445 432 167 1,211 ------------------------------------------------------------------------- Income taxes (recovered) 131 140 57 215 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Net earnings 314 292 110 996 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Net earnings per share - Basic (note 11) 0.01 0.00 0.00 0.02 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Net earnings per share - Diluted 0.01 0.00 0.00 0.01 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Weighted average number of shares outstanding 59,621,685 59,621,685 59,621,685 54,944,981 ------------------------------------------------------------------------- ------------------------------------------------------------------------- (1) The Company uses only one financial measure that is not consistent with Canadian GAAP, namely earnings before interest, income taxes, depreciation and amortization (EBITDA). Such a measure is used because management believes that it provides meaningful information about the Company's performance and operating results. Such a non-GAAP measure has no standardized meaning as prescribed by GAAP and is not necessarily comparable to similarly titled measures presented by other companies. Accordingly, it should not be considered independently of other figures. (note 11) Financial statements at September 30, 2009 

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