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Montreal, September 11, 2007 - Dectron
Internationale (TSX: DTL):
Dectron Announces Second Quarter 2007 Results
Montreal, September 11, 2007 – Dectron Internationale, Inc., a
leader in the heating, ventilation and air conditioning, indoor air security
and water generation markets, announced today its financial results for the
second quarter ended July 31, 2007.
Revenues for the second quarter ended July 31, 2007 were
$17.4 million, a $1.5 million (9.5%) increase over the prior year’s revenues
for the same period of $15.9 million. Revenues for the six months ended July
31, 2007 were $34.8 million, a $4.1 million (13.4%) increase over the prior
year’s revenues for the same period of $30.7 million. The growth is seen across
all divisions but is mainly attributed to continued success in sales of Dectron
pool dehumidification unit.
Gross profit in the second quarter increased by $130,000 to
$4.5 million from $4.4 million in the same quarter last year. For the six-month
period, gross profit increased by $1.0 million to $9.2 million. As a percentage
of revenues, gross profit margin was at 25.9% (26.4% for the six months) a
decrease from the prior year’s gross profit margin of 27.5% (26.7% for the six
months). The gross profit margin was adversely affected by aggressive pricing
strategies in the Ecosaire/ Circul-aire markets as well as the mix due to
higher sales volume of sourced products at lower margins.
Selling expenses for the quarter decreased by $339,000 to
$1.7 million (decreased by $204,000 to $3.6 million for the six months ended
July 31, 2007) compared to $2.0 million for the same quarter last year. General
and administrative expenses held steady at $1.2 million for the quarter ended
July 31, 2007. For the six month period general and administrative increased
$193,000 to $2.5 million. As a percentage of revenues, selling, general and
administrative expenses actually decreased in the quarter to 16.5% from 20.2%
(decreased to 17.5% from 19.8% for the six month period).
Depreciation and amortization expenses decreased to $344,000
in the quarter ending July 31, 2007 compared to $414,000 in 2006 due to lower
amortization of deferred charges. Financial expenses also decreased in the
slightly by $24,000 to $308,000 ($657,000 for the six months) from $332,000
($688,000 for the six months) due to lower levels of debt. Net earnings for the
quarter ended July 31, 2007 increased to $977,000 (or $0.22 per share) compared
to net earnings of $419,000 (or $0.09 per share) in the corresponding quarter
last year.
Net earnings in the six months period ending July 31, 2007
increased to 1.2 million (or $0.39 per share) compared to net earnings of
$372,000 (or $0.12 per share) in the corresponding period last year. EBITDA
(Earnings Before Interest, Taxes, Depreciation and Amortization) is a non-GAAP
measure used by many in the industry as a measurement of operational
performance. For the quarter ended July 31, 2007
EBITDA increased 40.0% over the same quarter last year to
$1.6 million from $1.2 million last year. For the six month period ended July
31, 2007 EBITDA increased 48.0% over the previous year to $3.1 million from
$2.1 million last year.
Dectron Internationale, Inc. is a global provider of custom and
semi-custom IAQ (indoor air quality) and HVAC (heating, ventilation and air
conditioning) products and services to the building systems, food processing,
medical, petrochemical, and various industrial and commercial markets.
Established in Montreal, the Company has 400 employees in its manufacturing
facilities. Its shares are listed on the TSX (DTL).
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