Tickers: XTSX:DE, XTSX:DE.P
Kelowna, British Columbia / TheNewswire / March 29, 2018 – Decisive Dividend Corporation (TSX-V: DE) (the "Corporation" or "Decisive") reported its financial results for the three and twelve-month periods ended December 31, 2017. All amounts are in Canadian currency. The results have been posted on SEDAR and on our website.
"The Decisive team is pleased with our results for the year," stated James Paterson, CEO. The strong finish we expected in Q4 for Blaze King materialized and we were not disappointed. The heating season for Blaze King has continued into 2018 with an extended winter season for early 2018. With new products being offered by both of our companies, we are excited about our prospects in terms of sales and growth opportunities in 2018. Both Unicast and Blaze King are having success in new markets for the sale of their products. We have also been pleasantly surprised by the quality of company acquisition opportunities for Decisive and our management team is currently assessing the best of these opportunities to ensure Decisive stays on its path to meet our growth targets. We continue to be extremely disciplined in our investment approach to support our goals which include that we offer our shareholders both steady growth and consistent dividends."
Q4 and full-year 2017 highlights:
-Revenues for the fourth quarter were $ 7.62 million, a decrease of $ 0.2m, or 2% from the same period in 2016.
-Revenues for the year ended December 31, 2017 were $ 23.5 million, an increase of $ 5.7 million, or 32% over the year ended December 31, 2016.
-Adjusted EBITDA* for the fourth quarter was $ 1.8 million, as compared to Q4-2016 adjusted EBITDA of $ 2.1 million.
-Adjusted EBITDA* for the year ended December 31, 2017 was $ 3.8 million compared to $ 2.97 million for the year ended December 31, 2016, an increase of 29% year-over-year.
-Profit for the fourth quarter was $ 551,000, or $ 0.09 per share, compared to profit of $ 1,007,000, or $ 0.18 per share in Q4-2016.
-Profit for the year ended December 31, 2017 was $ 509,000 or $ 0.09 per share, compared to a loss of $ 460,000 or ($ 0.10) per share for the year ended December 31, 2016.
-Dividends declared during the fourth quarter were $ 0.09 per share, and $ 0.35 for the twelve months ended December 31, 2017.
* Adjusted EBITDA is defined in the Management Discussion and Analysis 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.
Market Conditions – Blaze King
Blaze King saw continued demand in the twelve months of 2017 and recorded approximately $ 2,060,000 more in sales year over year. In addition to a much colder winter season in 2016-2017, Blaze King sales were boosted by the introduction of the first new model of its fireplace insert line, the Sirocco 25, in the second quarter of 2016, which has exceeded Blaze King 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, was introduced to the market in the third quarter of 2017 and Blaze King is very pleased with its reception from dealers and distributors and consumers.
The second offering in the Blaze King gas line up, the Clarity 2118 Gas fireplace, has been tested and approved and is expected to be ready for sale in Q2 2018.
At the Hearth Products Association show in March 2018, Blaze King displayed prototypes of the new Clarity 31 gas insert and the new Clarity 4416 linear gas fireplace. These new products will further deepen the gas offering from Blaze King towards the end of 2018.
Blaze King will use its existing dealer and distribution network to achieve sales growth in this segment. These new sales are part of an overall growth strategy to go beyond the core wood business.
After two years of 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. Final approvals were received and the first orders shipped in December 2017. This marks a significant step forward for potential sales increases in a previously untapped market.
Blaze King finalized the certification process for its BX24 Boxer freestanding woodstove in Q3 of 2017. This modern looking stove, featuring a large ‘wide screen’ glass door and wood storage, is now in production and began shipping to customers in February of 2018.
Market Conditions – Unicast
The market for Unicast’s wear parts continues to be buoyant as the economy continues to grow in the United States, Canada, and other markets that Unicast serves. Increased infrastructure spending has caused continued upward demand on the cement industry. Additionally, commodity prices have strengthened, and new mines are opening across North America and Central and South America. Unicast has continued to introduce new products and to grow its product line in response to customer demands.
Unicast is also seeing increasing demand from non-traditional markets such as Latin America, Australia and the Philippines, and in response, Unicast is looking to strengthen its Latin American sales team in Q1-2018 to service these new markets. Unicast completed its first order for a new Australian customer in the first quarter of 2018 and has several pending orders from its new Australian sales leads. This new market for Unicast represents an area for potential growth.
Effective January 1st, 2018, Devin Mintz took over as President of Unicast. Also in January, Unicast added Ron Birnie-Browne to the team as Vice President of Sales and Engineering. With these additions, Unicast will look to expand into new non-traditional oil and gas markets, as well as accessing new markets and opportunities for Unicast products in the Middle East.
Decisive continues to maintain a positive outlook for the Company and its two subsidiaries, Blaze King and Unicast. Management believes that the Decisive Group of companies are 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. Decisive is committed to enhancing customer service in both subsidiaries and growing the sales teams to accommodate a plan of steady growth. The Corporation continues to develop and expand its network of referral sources that regularly present it with potential acquisitions. Decisive management also independently assesses certain markets and regions to identify potential targets. While the pipeline of potential acquisitions is considered strong, Decisive is disciplined in the investment choices it makes as acquisitions must adhere to Decisive’s 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
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.
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