MONTREAL, June 15 /PRNewswire-FirstCall/ -- Dectron Internationale, Inc. (TSX: DTL; NASDAQ: DECT), a leader in the heating, ventilation and air conditioning, indoor air security and water generation markets, announced today its financial results for the first quarter ended April 30, 2006 (in USD). Revenues for the three months ended April 30, 2006 were $13.8 million, a $2.9 million (26.6%) increase over the prior year's first quarter revenues of $10.9 million. The growth is attributed to sales of Dectron dehumidification units for water parks as well as stronger international sales in the Circul- aire division. Gross profit increased by $806,000 to $3.8 million from $3.0 million in the same period last year. As a percentage of revenues, gross profit remained stable at 27.5%. The gross profit margin was adversely affected by higher raw material costs and aggressive pricing strategies in certain HVAC markets which were offset by increase productivity gains as well as a stronger mix of products. Selling expenses increased by $430,000 to $1.8 million in the three months ended April 30, 2006 compared to $1.3 million for the period ended April 30, 2005. The increase is primarily due to higher commissions paid on the increased sales levels and the costs of attending trade shows. As a percentage of revenues, selling and marketing expenses increased to 12.7% from 12.1%. General and administrative expenses increased by $63,000 (6.3%) to $1.1 million from $1.0 million for the period ended April 30, 2005. As a percentage of revenues, general and administrative actually decreased to 7.7% from 9.2%. Depreciation and amortization expenses slightly increased to $360,000 in the three months ending April 30, 2006 compared to $323,000 in 2005 due to the amortization of deferred charges. Financing expenses increased slightly ($22,000) to $256,000 from $234,000. There were no discontinued operations in the three months period ending April 30, 2006. The losses, net of taxes, in the first quarter of 2005 were $99,000 (offset partially by disposal gains of $64,000) both resulting from the discontinued operations of Liberty Drive Property, Inc. Net earnings in the three months period ending April 30, 2006 was $251,000 (or $0.08 per share) compared to net earnings of $41,000 (or $0.01 per share) in the corresponding period in 2005. 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 three month period ended April 30, 2006 EBITDA (as defined below) increased 47.0% over the previous year to $980,000 from $667,000. OUTLOOK The Company believes that the improved sales performance should continue throughout the remainder of the year and that based on the improved product mix in the backlog margins should remain stronger than last year. The Company further feels that it will continue to make positive in roads in its MRU, water park and air security markets. The Company continues to have a strong backlog and expects the current trends to continue into the rest of the year. Management believes that great progress has been made in regard to productivity. In fact, various manufacturing operations have been consolidated and certain non-strategic low-yielding assets have been sold. Accordingly, the Company does not expect to incur any loss from discontinued operations for the current fiscal year. More detailed information on the Company and its results are available through the Forms 10Q and 10-K filed with the SEC (http://www.sec.gov/) or with the TSX (http://www.sedar.com/). The Company also announced that it will hold an annual and special meeting of the shareholders on Thursday June 29, 2006 at the Delta President Kennedy in Montreal, Quebec at 11:00 am. The meeting will be webcast for those unable to attend. This release contains forward-looking statements, as described in the "safe harbor" provision of the Private Securities Litigation Reform Act of 1995. These statements involve a number of risks and uncertainties and actual results could differ materially from those projected. These forward-looking statements regarding future events and the future results of Dectron Internationale Inc. are based on current expectations, estimates, forecasts, and projections about the markets in which we operate and the beliefs and assumptions of our management. Words such as "expects," "anticipates," "targets," "goals," "projects," "intends," "plans," "believes," "seeks," "estimates," variations of such words, and similar expressions are intended to identify such forward-looking statements. In addition, any statements that refer to projections of our future financial performance, our anticipated growth and trends, and other characterizations of future events or circumstances, are forward-looking statements. Readers are cautioned that these forward-looking statements are only predictions and are subject to risks, uncertainties, and assumptions. Therefore, actual results may differ materially and adversely from those expressed in any forward-looking statements. Readers are referred to the cautionary statements and important factors discussed in Item 1A. Risk Factors of our Annual Report on Form 10-K for the year ended January 31, 2006 for further information. We undertake no obligation to revise or update publicly any forward-looking statements for any reason. Dectron Internationale, Inc. is a global provider of custom and semi- custom IAQ (indoor air quality) and HVAC-R (heating, ventilation and air conditioning and refrigeration) 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 NASDAQ (DECT) and the TSX (DTL). DATASOURCE: DECTRON INTERNATIONALE INC. CONTACT: Dectron Internationale Inc., Glenn La Rusic, Chief Financial Officer, (514) 336-3330, , http://www.dectron.com/; Renmark Financial Communications, Investors: Tina Cameron: ; Henri Perron: ; Media: Lynda Martineau: ; (514) 939-3989, Fax: (514) 939-3717, http://www.renmarkfinancial.com/

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