Decisive Dividend Corporation Reports Financial Results for the three and six months ended June 30, 2017

Tickers: XTSX:DE, XTSX:DE.P
Tags: Technology, Finance

Kelowna, British Columbia / TheNewswire / August 30, 2017 – Decisive Dividend Corporation (TSX-V: DE) (the "Corporation") reported its financial results for the three and six-month periods-ended June 30, 2017. All amounts are in Canadian currency. The results have been posted on SEDAR and on our website.

"We are satisfied with our results for the second quarter of 2017," stated James Paterson, CEO, "however, we are expecting a strong finish to the year as we are about to enter the 2017 winter heating season for Blaze King with new and exciting products to offer, and as the markets and opportunities for Unicast continue to grow. We are actively reviewing acquisition opportunities and are being extremely disciplined in our investment approach to ensure that we continue to offer our shareholders growth and steady dividends."

Q2 2017 highlights:

-Revenues for the second quarter were $ 4,902,307, up 117% over Q2 2016 revenues of $ 2,254,369.

-Revenues for the six months ended June 30, 2017 were $ 9,959,970, up 105% over the six months ended June 30, 2016 revenue of $ 4,842,000.

-Adjusted EBITDA* for the quarter was $ 479,686, as defined in the Q2 MD&A, as compared to Q2 2016 adjusted EBITDA of ($ 171,994).

-Adjusted EBITDA* for the six months ended June 30, 2017 was $ 978,134 compared to ($ 102,800) in the six months ended June 30, 2016.

-Due to non-cash charges mostly related to the acquisition of Unicast, the second quarter resulted in a net loss of $ 64,300, or $ (0.01) per share, compared to a loss of $ 1,456,095, or $ (0.37) in Q2 2016.

-The loss for the six months ended June 30, 2017 was $ 249,250 or $ (.04) per share, compared to a loss of $ 1,589,433 or ($ .40) per share for the six months ended June 30, 2016.

-Dividends declared during the second quarter were $ 0.090 per share, and $ .170 for the six months ended June 30, 2017.

-The Corporation finalized a refinancing with a Canadian financial institution of both the short-term and long-term debt facilities, to obtain better terms and conditions. Details of this refinancing are available in the Q2 MD&A.

* Adjusted EBITDA is defined as earnings before interest, income taxes, depreciation, amortization, one-time acquisition costs, and non-cash items such as stock compensation expense and IFRS fair value adjustments. Adjusted EBITDA is not a defined performance measure under International Financial Reporting Standards (IFRS) but it is used by Management to assess the performance of the Corporation and its segments.

Outlook

Market Conditions – Blaze King

Building on sales strength that was witnessed in the third and fourth quarters of 2016, Blaze King saw continued demand in the first and second quarters of 2017, and recorded $ 949,000 more in sales year over year. In addition to a much colder heating season in 2016-2017, Blaze King sales were positively affected by the first new model of our fireplace insert line, the Sirocco 25, which was introduced in the second quarter of 2016 and has exceeded management’s sales expectations. The Ashford 25 was introduced to dealers and distributors in the first quarter of 2017, and now Blaze King has three models in the wood-burning fireplace insert market in 2017.

The first in a line of gas-burning products, the Clarity 26 free-standing stove, passed all testing in the first quarter of 2017 and started production runs in the second quarter of 2017. Management is very pleased with the reception so far from dealers and distributors. As anticipated by management, sales of new gas-burning product began in the early part of the third quarter of 2017, and the product has been well-received by customers. During Q2 the Blaze King also received certification for its zero-clearance gas-burning stove, second product offering in the Clarity line, and management anticipates this product to be available in Q4 of 2017. This marks a return to the gas stove, insert and fireplace markets after a two-year absence with a new product offering designed from the ground up.

After rigorous in-house testing, the Sirocco 30 unit passed the ULEB (Ultra-Low Emission Burners) test in Christchurch, New Zealand during Q2. Standards were set at a maximum of 0.5 grams of emissions per kilogram of wood burned, and the Sirocco came in at 0.36 grams of emissions per kilogram of wood burned. Management is now awaiting final approvals and, subject to receipt of these approvals, a significant new market will be opened in New Zealand for Blaze King, as early as Q4 of 2017.

Market Conditions – Unicast

The market for Unicast’s wear parts continues to be buoyant as the economy continues to grow in both the United States and Canada, and increased infrastructure spending has caused continued upward demand on the cement industry. As well, mining continues to be in recovery as commodity prices have strengthened and new mines open across North America and Central America. Unicast has continued to introduce new products and to grow their product line in response to customer demands. Unicast is also seeing increasing demand from non-traditional markets such as Latin America and the Philippines, as its sales team grows and increases exposure of Unicast’s products in these new markets. Unicast also has continued to strengthen their sales team with the addition of a new salesperson in Q2 dedicated to the Canadian market, as 2017 is seen by Unicast management as a year of significant growth.

Conclusion

Management is maintaining a positive outlook for the Company and its two subsidiaries, Blaze King and Unicast. Management believes that the Company is positioned for future growth, and is continually looking for further acquisitions to bolster diversity, which adds strength and resilience to operations. Management believes that continuing to follow a balanced and disciplined acquisition approach is the best path to generating shareholder value.

Management remains confident in its strategic and operational plans and in its seasoned leadership. The Company is committed to enhancing customer service in both subsidiaries and growing the sales teams to accommodate a plan of steady growth. The Company continues to develop and expand its network of referral sources that regularly present it with potential acquisitions. The Company also independently assesses certain markets and regions to identify potential targets and believes that its disciplined approach to acquisitions is largely responsible for the success to date. While the deal flow brought to the Company is considered strong, the Company is disciplined in the investment choices it makes as they must adhere to our investment parameters. Therefore, there can be no assurance target companies meeting management’s standards will be identified.

About Decisive Dividend Corporation

Decisive Dividend Corporation is an acquisition-oriented company, focusing on the manufacturing sector. The Corporation uses a disciplined acquisition strategy to identify already profitable, established companies that have strong management teams, generate steady cash flow, operate in non-cyclical markets, and have opportunity for future growth.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of the contents of this News Release.

FOR FURTHER INFORMATION PLEASE CONTACT:

Mr. David Redekop, Director and Chief Financial Officer

#201, 1674 Bertram Street

Kelowna, BC V1Y 9G4

Telephone: (250) 870-9146

Cautionary Statements

This press release contains forward-looking statements. These statements relate to future events or future performance. The use of any of the words "could", "intend", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Corporation’s current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. Various assumptions or factors are typically applied in drawing conclusions or making the forecasts or projections set out in forward-looking information. Those assumptions and factors are based on information currently available to the Corporation. The forward-looking statements contained in this press release are made as of the date hereof and the Corporation is not obligated to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information.

Not for distribution to U.S. Newswire Services or for dissemination in the United States. Any failure to comply with this restriction may constitute a violation of U.S. Securities laws.

Copyright (c) 2017 TheNewswire – All rights reserved.

TheNewswire.com – RSS (all)