MONTREAL, Dec. 16 /PRNewswire-FirstCall/ -- Dectron Internationale,
Inc, a leading supplier of Indoor Air Quality solutions, is pleased
to announce its financial results for the third quarter and
nine-month period ended October 31, 2005. Nine-month period ended
October 31, 2005 compared to nine-month period ended October 31,
2004. Sales for the nine month period ended October 31, 2005 were
$35,667,662, a 10.6% increase over last year's sales of
$32,237,998. Dectron's sales growth is due primarily to its
stronger presence and focus in the Canadian and international
markets for commercial HVAC products and related services. The U.S.
market has remained relatively stable year over year. Gross profit
decreased by 7% ($626,487) to $8,283,513 over the same period. As a
percentage of sales, gross profit decreased from 27.6% to 23.2%.
Despite certain productivity gains, the gross profit margin was
adversely affected by higher raw material costs, specifically metal
prices, and downward price pressure in certain key HVAC markets.
Selling expenses increased by 6% ($216,312) in the nine-month
period ended October, 2005 to $3,806,205 from $3,589,893. However
as a percentage of sales, selling expenses decreased from 11.1% to
10.7%. The increase is due to foreign exchange fluctuations, in the
home currency, selling expenses decreased slightly in the first
nine months versus the same period last year. General and
administrative expenses increased by 11.8% ($277,127) to $2,620,828
compared to $2,343,701 for the period ended October 31, 2004. As a
percentage of sales, general and administrative increased from 7.3%
to 7.4%. The increase is again primarily attributable to the
appreciation of the Canadian dollar versus the U.S. dollar.
Depreciation and amortisation expense increased slightly to
$974,791 in the nine month period ending October 31, 2005 compared
to $944,653 in the nine-month period ending October 31, 2004 as a
result of the acquisition of new machinery and equipment during the
last fiscal year. Interest expense decreased from $1,053,807 to
$640,149, a decrease of $413,658 (39.3%). The lower interest
expense is due primarily to repayments of short-term debt and
long-term debt during the current fiscal year. Another element of
the decrease is the lower U.S. dollar rate versus the Canadian
dollar used for conversion. The company's effective income tax rate
remained stable at 31.1% for the nine-month ended October 31, 2005.
Tax expense did decrease by $228,630 as a result of lower earnings.
Net earnings before discontinued operations were $166,518 compared
to $674,294 for the nine-month period ending October 31, 2004. As a
percentage of sales, net earnings before discontinued operations
decrease from 2.1% to 0.5%. Losses from discontinued operations
(net of taxes) for the nine month period ending October 31, 2005
was $747,854 compared to $911,019 in the corresponding period in
2004, both resulting from the discontinued operations of Liberty
Drive Property, Inc. Gain on disposal of discontinued operations
(net of taxes) was $194,318 for the nine-month period ending
October 31, 2005 compared to $731,512 for the corresponding period
in 2004. As a result of the above factors, net losses for the nine
month period ending October 31, 2005 was $387,018 compared to
earnings of $494,787 for the corresponding period in 2004.
Three-month period ended October 31, 2005 compared to Three-month
period ended October 31, 2004. Sales for the three-month period
ended October 31, 2005 were $11,860,388, at 7.6% increase over the
prior year's sales of $11,020,743. Dectron's sales growth is due
primarily to its stronger presence and focus in the Canadian and
international markets for commercial HVAC products and related
services. Gross profit decreased by $173,038 to $2,720,998 over the
same period. As a percentage of sales, gross profit decreased from
26.3% to 22.9%. Despite certain productivity gains, the gross
profit margin was adversely affected by higher raw material costs
and aggressive pricing strategies in certain HVAC markets. Selling
expenses decreased by 0.6% ($6,522) in the three month period ended
October 31, 2005, to $1,172,191 from $1,178,713 for the
corresponding period ended October 31, 2004. As a percentage of
sales, selling and marketing expenses decreased from 10.7% to 9.9%.
General and administrative expenses increased by (22.2%) $161,023
to $885,216 compared to $724,193 for the period ended October 31,
2004. As a percentage of sales, general and administrative
increased to 7.5% from 6.6%. Depreciation and amortisation expense
increased slightly to $330,501 in the three-month period ending
October 31, 2005 from $325,917 in 2004 following the acquisition of
new machinery and equipment during the last fiscal year. Financial
expenses decreased to $242,004 in the third quarter of 2004 from
$615,179 from the third quarter of last year - a decrease of 60.7%
($373,175). The decrease is due to the repayment of debt in the
quarter along with the effect of a weaker U.S. dollar versus the
Canadian dollar used for conversion. The income tax expense
increased, by $19,955 to $34,578 in 2005 from $14,623 in the third
quarter of 2004, due to an increase in taxable income. Net earnings
before discontinued operation was $56,506 for the three- month
period ending October 31, 2005 compared to $35,411 for the three
month period ending October 31, 2004. Earnings from discontinued
operations (net of taxes) for the three month period ending October
31, 2005 was $29,204 compared to $38,786 in the corresponding
period in 2004, both resulting from the discontinued operations of
Liberty Drive Property, Inc. Gain on disposal of discontinued
operations (net of taxes) was $68,385 for the three-month period
ending October 31, 2005 compared to $180,836 for the comparative
period in 2004. As a result of the above factors, net earnings for
the three month period ending October 31, 2005 was $154,097
compared to earnings of $255,033 for the corresponding period in
2004. Commenting on the results, Mr. Ness Lakdawala, President and
CEO stated, "We are encouraged by the increase in demand for our
products and services, a fact that underlines our position of
leadership and innovation". Mr. Lakdawala concluded, "We have
consolidated various operations, sold non-strategic low-yielding
assets and are now focused on the company's major growth avenues,
namely indoor water parks, indoor air security and water generation
with the objective on increasing revenues and improving gross
margins across our business units". About Dectron Internationale
Inc Dectron Internationale is a global provider of custom and
semi-custom IAQ (Indoor Air Quality) and HVAC (Heating, Ventilation
& Air Conditioning) products and services to the building
systems, food processing, medical, petrochemical, and various
industrial and commercial markets. Dectron Internationale's core
businesses are conducted by its five principal subsidiaries:
Dectron Inc., RefPlus Inc., Circul-Aire Inc., Thermoplus Air Inc.
and International Water Makers Inc. Dectron, Circul Aire and
Thermoplus Air serve customers in commercial and residential
buildings, through a network of manufacturers' representatives and
dealers. Industrial facilities and OEM clients also form the
customer base of these business units. RefPlus manufactures and
supplies commercial refrigeration through a network of wholesalers
and dealers in Canada and the USA. International Water Makers Inc.
manufactures proprietary water-generation-from-air systems for
industrial processes, and military and commercial applications.
DECTRON Q3 Earnings call to be re-scheduled Dectron Internationale
Inc (NASDAQ SC: DECT / TSX: DTL) will be re- scheduling its 3rd
Quarter Conference Call. Date and time to be announced. DATASOURCE:
DECTRON INTERNATIONALE INC. CONTACT: Dectron Internationale Inc.:
Aurelio Useche, (514) 334-9609 ext. 220; Brian Monk, (514) 336-3330
ext. 222, , http://www.dectron.com/; Renmark Financial
Communications: (514) 939-3989, Fax: (514) 939-3717,
http://www.renmarkfinancial.com/; Investors: Tina Cameron, ; Henri
Perron, ; Media: Lynda Martineau, ; Cynthia Lane,
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