Glendale International Reports 3rd Quarter Loss
Canadian RV manufacturer Glendale International Corp. reported third-quarter losses in its two operating divisions.
Net loss for the Glendale RV division for the quarter ending Aug. 31 was $1,012,000 compared to net loss of $1,417,000 for the third quarter of 2008. Year-to-date net loss was $3,095,000 compared to a loss of $1,747,000 for the same period last year.
Sales at Glendale RV were $4,273,000 in the third quarter of 2009 compared to $3,398,000 in 2008. Year-to-date sales were $8,991,000 compared to $16,581,000 for the same period in 2008. The increase in sales and decrease in net loss for the third quarter resulted from a small pick up in the RV Industry.
However, the year to date numbers continue to be impacted by the negative conditions of the North American economy.
The third-quarter net loss for Glendale’s Travelaire division was $235,000 compared to a net loss of $756,000 for the third quarter last year. The division has experienced a year-to-date loss of $1,264,000 compared to $2,343,000 for the same period in 2008. Sales at Travelaire were $2,027,000 in the current quarter compared to $1,376,000 in 2008. Year to date sales were $6,041,000 compared to $6,723,000 in 2008.
The increase in sales at Travelaire in the third quarter, compared to the same period last year, was the result of orders for commercial products received and shipped. Year-to-date sales in 2009 as compared to the same period of 2008 relate to lower activity in the resource sector and the economic factors affecting the RV Industry. The reduction in net loss in the third quarter and year to date was due to lower production and overhead costs associated with the scale back in production.
With respect to the quarter, CEO Edward Hanna, said “the loss during the quarter for the Recreational Vehicle segment was primarily the result of a significant decline in demand for our recreational vehicle and commercial products due to the unprecedented negative economic environment. The decline in the RV industry appears to have leveled off. Industry shipments through August 2009 were 47% lower than the same period of 2008 however August shipments were 5% ahead of August 2008, the first increase in more than two years.
”Glendale sales are off 35% year to date over the same period in 2008 but are up 31% for the third quarter over the third quarter 2008. While the sales upturn is encouraging we still expect a long and slow recovery. The corporation is debt free and has working capital of $11,517,000 including cash of $2,369,000 as at August 28, 2009.”
Consoidates losses for the quarter were $6,300,000 compared to $20,522,000 last year. Net loss for the third quarter of 2009 was $2,100,000, or $0.23 per share, compared to net loss of $2,231,000, or $0.24 per share, for the third quarter of 2008.
Consolidated sales year to date were $44,360,000 compared to $69,108,000 for the same period last year. Net loss was $6,588,000, or $0.71 per share, compared to $4,812,000, or $0.52 per share, for the same period in 2008.
Glendale’s recreational vehicle business is comprised of two operating divisions: Glendale Recreational Vehicles (“Glendale RV”) located in Strathroy, Ontario, and Travelaire Canada (“Travelaire”) located in Red Deer, Alberta. Glendale RV manufactures a broad range of innovative, differentiated high-quality RVs for both the US and Canadian markets and Travelaire manufactures recreational park trailers and relocatable structures for the Western Canadian market place. The corporation also has a significant equity position in Firan Technology Group Corp., a leading North American manufacturer of high technology printed circuit boards and precision illuminated display systems.
Glendale International’s common shares are listed on the Toronto Stock Exchange (“TSX”) under the symbol “GIN”. The corporation has 12,487,017 common shares outstanding.