TEST - Kara 11 - Dectron Announces Fiscal 2008 Year-End Results

TSX: DTL 


MONTREAL, May 28  /PRNewswire-FirstCall/ -- Dectron Internationale, Inc. (TSX: DTL), a leader in the heating, ventilation and air conditioning, indoor air security and water generation markets, is pleased to announce its financial results for the fiscal year ended January 31, 2008 (in thousands of Canadian dollars).

Total sales decreased slightly by 0.4% to $64,746 during the fiscal year ended January 31, 2007 from $65,006 in 2006. The Company experienced sales growth in the US of $4.8 million which was offset by declines in Canada and internationally. Geographically sales outside Canada accounted for 52.4% of total sales in 2007, compared with 51.2% the previous year.

Gross profit decreased $110 (0.4%) to $16,330 in 2008 from $16,440 in 2007, gross profit margin decreased marginally to 25.2% from 25.3%. Notwithstanding the relative stability of gross profit annually, weaker results in the fourth quarter offset improved results earlier in the year. The fourth quarter sales and profitability were adversely affected by economic conditions in the US market which saw some building projects postponed due to difficulties in obtaining financing as well as increased price competition brought on by this market.

Selling expenses decreased by 5.3%, to $6,748 in 2008 from $7,127 in 2007. This reduction is primarily due to lower promotion and travel expenditures. General and administrative expenses decreased slightly by 3.3% to $4,747 in 2008 from $4,910 in 2007. As a percent of sales, selling, general and administrative expenses dropped to 17.7% from 18.6%. Amortization decreased to $1,288 versus $1,518 in 2007. Financial expenses decreased 31.9% versus the prior year at $1,215 from $1,785 in 2007 due to lower levels of debt. In relation to sales, operating expenses totaled 21.6%, lower than 23.6% recorded last year.

Overall, operating income more than doubled to $2,332 to 3.6% of sales from $1,100 in 2007.

In fiscal year 2008 the Corporation, based on a review of its operations recorded a charge for goodwill impairment of $1,499.

Income taxes of $1,066 were recorded in 2008 versus $192 accounted for fiscal 2007. In 2007 the provision reflected the realization and utilization of tax losses from prior years.

As a result of the write-off of goodwill and the provision for income taxes in 2008 the Corporation recorded a net loss of $233 ($0.07 per share) in comparison to net earnings of $908 or $0.29 per share in fiscal 2007, The weighted average number of common shares outstanding stood at 3,155,000 same as fiscal 2007.

More detailed information on the Company and its results are available with the TSX (http://www.sedar.com/).

Dectron Internationale, Inc. is a global provider of custom and semi-custom IAQ (indoor air quality) and HVAC (heating, ventilation and air conditioning) 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 TSX (DTL). 

DATASOURCE: Dectron Internationale Inc.



CONTACT:  Dectron Internationale, Inc.: Glenn La Rusic, [phone],

http://www.dectron.com/; Renmark Financial Communications Inc.: Dan Symons,

; Henri Perron, ,

[phone], Fax: [phone], http://www.renmarkfinancial.com/

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