Groupe Laperrière & Verreault consolidated revenues up 60.9% in 4Q FY2007

Jun 08, 2007. /Lesprom Network/. Management of Groupe Laperrière & Verreault Inc. discloses on June 7, 2007 its financial results for the fourth quarter and fiscal year ended March 31, 2007. Consolidated revenues for the fourth quarter amounted to CAD 282.0 million ($265.0 million), up by 60.9% or CAD 106.7 million ($100.3 million) over the same quarter of the previous year. The Pulp and Paper Group’s revenues grew by CAD 12.9 million ($12.1 million) or 25.6% due primarily to the four acquisitions made in fiscal 2007. Excluding immaterial non-recurring items for the two comparative period, the company’s normalized EBITDA for the fourth quarter grew by 59.0%, to reach CAD 25.8 million ($24.3 million). The consolidated normalized EBITDA margin as a percentage of revenues decreased from 9.3% in 2006 to 9.2% in 2007, this decline being attributable to the Process Group. Despite a 19.5% increase in its normalized EBITDA in dollars, this group’s normalized EBITDA margin decreased from 15.2% in 2006 to 11.8% in 2007 due to the addition of Krebs, which currently yields a lower profit margin than Dorr-Oliver Eimco. However, the Pulp and Paper Group’s fourth-quarter normalized EBITDA grew by CAD 1.4 million ($1.3 million) or 34.9% over the same period the previous year, whereas its normalized EBITDA margin rose from 8.0% to 8.6%. This improvement, which was achieved despite the additional costs incurred to set up its new technology centre in Karlstad (Sweden), is attributable to the revenue growth. The Water Treatment Group’s normalized EBITDA increased by CAD 5.8 million ($5.5 million), while its normalized EBITDA margin rose from 4.7% in 2006 to 9.0% in 2007. Besides the revenue growth, this improvement is attributable to Brackett Green’s, Enviroquip’s and Copa’s growing contribution, as well as the major contract in the Middle East. Laurent Verreault, chairman of the board and chief executive officer, said that management is satisfied with these results considering the company’s major expansion through acquisitions in the past quarters. “When we acquired Krebs in December, we informed our shareholders that GL&V’s profitability would sustain some pressure for a few quarters as a result of higher financial expenses arising from the use of our credit facility to finance the acquisitions, and increased amortization expenses primarily associated with the intangible assets of the companies acquired. We are therefore pleased to see that these factors have been mitigated in recent months by an improvement in the operating profitability of several business units, especially within the Pulp and Paper Group and the Water Treatment Group.” Founded in 1975, Groupe Laperrière & Verreault Inc. is a world-class provider of process technologies, primarily for liquid/solid separation, designed for a large number of industrial, municipal and environmental applications, including those used in metal and ore processing, pulp and paper production, water treatment and the energy sector. At the date hereof, the Company has over 2 400 employees and is present in 40 countries on six continents. GL&V is a public company whose shares trade on the Toronto Stock Exchange.