LAC-MÉGANTIC, QUÉBEC--(March 30, 2011) - (CNSX:BES) - Gross revenues for the year ended December 31, 2010 amount to $33,739,380, a decrease of 9.23% compared to the gross revenues of $37,171,304 reported for 2009.
Loss before taxes of $1,160,939 were recorded for 2010 compared to a profit of $78,509 for 2009. This loss amounted to $1,181,398 at the end of first quarter. Results were improved by the aggressive action initiated during the second quarter. Also, in 2010, the combination of currency gains or losses and variation in the fair value of forward exchange contract had the effect of adding a $236,439 gain to our results compared to $774,123 in 2009.
A net loss of $849,161 or ($0.07) per share was recorded for the year ended December 31, 2010, compared to a net loss of $64,226 or ($0.01) per share for the fiscal year 2009. It must be noted that due to the reduction of the income tax rate for 20l0, an adjustment of $125,000 on recoverable income taxes was added in the last quarter of 2009.
Gross revenues for the fourth quarter of 2010 are $7,554,572, a 9.8% decrease compared to gross revenues of $8,381,452 for 2009. Earnings before income taxes of $15,994 were recorded for this quarter in 2010 compared to a loss before income taxes of $321, 240 for the same quarter in 2009. A net loss of $1,752 or ($0.00) per share was recorded in 2010 compared to a net loss of $337,452 or ($0.03) per share for the same quarter in 2009.
Cash flow generated by operations totalled $1,831,102 for 2010. This is mainly due to the changes in working capital which generated $1,452,015 and of which the main fluctuations were a $0.7 million reduction of our debit accounts and a $1.4 million increase of our accounts payable.
Cash flow generated by investments decreased by $217,883 for 2010. An amount of $284,095 was used in many small investment projects. Finally, negative cash flow from financing activities amounts to $1,753,356 following a $470,000 reduction of our bank loan and a $1,283,356 reimbursement of our long-term debts.
"After a difficult beginning of year, new vigorous actions had to be taken to reverse this tangent. At the early opening of the collective agreement, important changes were brought to the working conditions. Non-unionized employees have also consented to concessions. These factors contributed to avoid the layoff announced at the beginning of July 2010 and to limit the annual loss to the one registered at the end of the first semester of this year."
"The measures taken during the last year will also contribute to the improvement of the 2011 results. Thus, we foresee a return to profitability in the first quarter of 2011, in spite of sales lower than those registered for the same quarter in 2010" declares Bestar's president, Daniel Mercier.
"Also, approaches undertaken during the last quarter of 2010 have allowed Bestar to install a new financial structure. A financing agreement was concluded on March 16, 2011 with Wells Fargo Capital Finance Corporation Canada in replacement of the Laurentian Bank."
"Bestar is also carrying on with the unfolding of its new corporate image started in 2010, consisting of the launch of its new Web site, the introduction of a new logo and of redesigned sale aids" adds Mr. Mercier.
"2011 will be marked by an orientation change in our furniture sector. Since our customers are our most competitive advantage, they will be at the heart of our development strategy and our customer service."
"The introduction of two new modular collections (beginning of 2011) added to the customized development projects mentioned above should allow Bestar to initiate the first step of a five-year process having the objective of offering to the market a totally renewed range of products."
This strategy combined to the image and product renewal aims an overall repositioning of the brand name in order to increase the perceived value and the potential margins" concludes Daniel Mercier.
Founded in 1948, Bestar Inc. designs, manufactures and distributes a vast array of ready-to-assemble furniture that meet customer needs in terms of quality, design and functionality. During the last years, Bestar has specialized in office furniture and distributed its products mainly in the United States and Canada. In order to offset a decrease in sales, Bestar developed a new business plan in 2006 which includes the manufacturing of components.
The Company became public in 1986 and operates from its plant in Lac-Mégantic, Québec, Canada.
Bestar's shares are listed on the Canadian National Stock Exchange ("CNSX") under the symbol "BES".
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