GBO Inc. Releases Financial Results; Canadian Sales Take a DipFebruary 1st, 2011 by DWM Magazine
For the three months ended November 30, 2010, GBO Inc., manufacturer of Bonneville doors and windows, reported sales of $5.6 million compared to $6.1 million in the same period last year. Canadian sales were down $0.6 million to $3.5 million compared to $4.1 million the same quarter last year. This decline is mainly attributable to the company’s Canadian customers who suffered a drop in their sales during this quarter resulting primarily from the delayed effect of the economic crisis that has affected the United States, the company says.
The sales by the company within the United States increased from $0.1 million or 5 percent (increase of 10 percent at a constant currency exchange rate) to $2.1 million compared to $2 million in the third quarter of last year.
GBO recorded an operating loss (or negative EBITDA) of $0.6 million in the third quarter of fiscal 2011, compared to a positive EBITDA of $0.05 million the previous year.
For the nine month period ended November 30, 2010, GBO’s sales totaled $15.1 million compared with $27.0 million for the same period last year; a decrease of $11.9 million. However, sales from Bonneville’s continuing operations, those attributable to the plant in Ste-Marie de Beauce, showed an increase of about 3.4 percent during the first 9 months. In the United States, the company says it continues to register sales to new customers despite a still-fragile U.S. market.
When releasing the financial results, the company also announced that Dennis Wood Holdings Inc., a company controlled by Dennis Wood, a director and insider of the company, has agreed to extend to the company a secured, temporary, revolving operating line of credit in an amount not to exceed $1,000,000. This credit line will be used to finance the company’s operations during the traditionally slow period of the year and until a new banking facility has been negotiated and put in place, according to a company statement.