2009-11-09 21:21:03 -
LAC MEGANTIC, QUEBEC -- (Marketwire) -- 11/09/09 -- Bestar Inc. (CNSX: BES) - Gross revenues for the third quarter ending September 30th, 2009 are $8,702,000 CA, a decrease of 17.9% in comparison to $10,605,000 for the same quarter in 2008. Earnings before income taxes of $93,000 CA was realized for this third quarter while a loss before taxes of $228,000 CA was recorded for this same quarter in 2008. Net earnings for this 2009 third quarter are $65,000 CA or $ 0,00 per share in comparison to a net loss of $160,000 CA or $ (0.01) per share for the same quarter of 2008.
Gross revenues for the first nine months of 2009 total $28,790,000 CA , a decrease of 7.5% compared to $31,124,000 for the same period in 2008. Earnings before income taxes for these nine months of 2009 are $401,000 CA while a loss of $742,000 CA was reported for the same nine months in 2008. Net earnings for the first nine months total $272,000 CA or 0.02$ per share in comparison to a net loss of $540,000 CA or $(0.04) per share for the first nine months of 2008.
"The current economic recession continues to affect our furniture sales at several of our US customers. Despite the economic slowdown, a favorable exchange rate on sales, a reduction in fixed expenses and a reduction in our inventories since the beginning of 2009 have allowed Bestar to improve its overall financial condition ." commented Mr. Tardif.
"On October 31st the Company still did not meet the $2 million minimum value of publicly traded shares required to maintain trading on the Toronto Stock Exchange (TSX). As previously announced in our October 9th and November 3rd press releases and after studying the different possibilities to continue publicly trading shares, the Company decided that the Canadian National Stock Exchange (CNSX) was their best option. The Company then asked that Bestar'shares be de-listed from the TSX and listed on the CNSX. Since November 6th, 2009 Bestar shares are now traded on the CNSX, under the same symbol "BES" ." added Mr. Tardif.
"On an other note, in order to increase our inventories for the introduction of a new product at one of our major clients in December and a promotion of an existing product in the beginning of 2010, at the end of October, we have decided to end our work share program which was in place since the beginning of 2009"continued Mr. Tardif.
"Even tough we have begun to see encouraging signs of economic improvement, an increased demand for furniture, especially office furniture may be somewhat delayed. We take the opportunity of this economic slowdown to focus our efforts on standardization, increased productivity and going forward with Just-In-Time management systems. While growth perspectives are still uncertain, we are preparing the way and will be ready when the economic turnaround arrives," concluded Mr. Tardif.
Results Summary
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(Results in thousands of dollars, except earnings per share)
Q1 Q2 Q3 Q4 Total
Revenue 2007 11,279 11,093 10,613 10,448 43,433
2008 10,950 9,569 10,605 9,304 40,428
2009 11,523 8,565 8,702 - 28,790
Net earnings (loss) 2007 104 79 17 50 250
2008 (103) (277) (160) (1,074) (1,614)
2009 206 1 65 - 272
Earnings (loss) per
common share 2007 0.01 0.01 0.00 0.00 0.02
2008 (0.01) (0.02) (0.01) (0.08) (0.12)
2009 0.02 - 0.00 - 0.02
Fully diluted earnings
(loss) per common
share 2007 0.01 0.01 0.00 0.00 0.02
2008 (0.01) (0.02) (0.01) (0.08) (0.12)
2009 0.02 0.00 0.00 - 0.02
Total Assets 2007 25,671 25,783 25,337 25,874 25,874
2008 26,390 28,751 28,512 28,937 28,937
2009 28,644 26,737 24,981 - -
Net debt (1) 2007 5,500 5,651 5,326 4,605 4,605
2008 6,742 8,987 9,259 8,198 8,198
2009 8,696 7,955 6,568 - -
Weighted average of
outstanding shares
(in thousands) 2007 13,038 13,038 13,038 13,038 13,038
2008 13,038 13,038 13,038 13,038 13,038
2009 13,038 13,038 13,038 - 13,038
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Note 1 : Net debt comprises bank loans and the long-term debt, net of cash.
Corporate Profile
Founded in 1948, Bestar Inc. designs, manufactures, and distributes a vast array of ready-to-assemble furnishings that meet customer needs in terms of quality, design, and functionality. During the last years Bestar has specialized in office furniture and distributes its products mainly in the United States and Canada. In order to offset a decrease in sales Bestar developed a new business plan in 2006 which includes the fabrication of components.
The company became public in 1986 and operates from its plant in Lac-Megantic, Quebec, Canada.
Bestar'shares are listed on the Canadian National Stock Exchange ("CNSX") under the symbol "BES"
Release Declaration
This press release may contain information and declarations on the future performance of the company that are, by nature, speculative. These declarations are based on suppositions, uncertainties and the best possible evaluation of future events by management. They are subject to certain risk factors such as exchange rates, the growing competition from emerging countries as well as fluctuating costs in raw material and shipping.
Shareholder Information
Shareholders may find this press release under the MARKETWIRE news file at www.marketwire.com :
, on SEDAR at www.sedar.com :
and on CNSX website at : www.cnsx.ca :
. The management report and comprehensive financial statements for the quarter ended September 2009 will be available, no later than November 13, 2009, through the SEDAR database at www.sedar.com :
and on our website at www.bestar.ca :
.
Contacts:
Bestar Inc.
Paulin Tardif
Chairman of the Board
President and Chief Executive Officer
819-583-1017
