(TheNewswire)
Kelowna, British Columbia / TheNewswire / May 30, 2017 - Decisive
Dividend Corporation (TSX-V: DE) (the “ Corporation
”) reported its financial results for the three month period-ended March 31, 2017. All amounts are in Canadian
currency. The results have been posted on SEDAR and on our website.
“ Our results for the first quarter of 2017 continue to support our plan for growth and steady
dividends for the shareholders of Decisive Dividend Corporation, ” stated James Paterson, CEO.
“We look forward to a steady increase in our revenue and cash-flow as Unicast and Blaze King add to their product offerings
and take advantage of opportunities in both of their respective industries. We continue to review acquisition opportunities
both within and outside the markets of our two subsidiaries as we strive to acquire excellent companies that fit our
criteria.”
Q1 2017 highlights:
-Revenues for the quarter were $ 4,980,497, up 92% over Q1 2016 revenues of $2,587,631
-Adjusted EBITDA* for the quarter was $498,447, as defined in the Q1 MD&A, up 626% over Q1 2016 adjusted
EBITDA of $68,669.
-Due to non-cash charges mostly related to the acquisition of Unicast, the first quarter resulted in a net loss
of $184,950, or $(0.03) per share, compared to a loss of $133,338, or $(0.04) in Q1 2016.
-Dividends declared during the first quarter were $0.080 per share
-The Corporation announced a 20% increase to monthly dividends, from $0.025 per common share to $0.03 per
common share commencing with dividends having a record date of March 31, 2017 or later.
* 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.
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 quarter of 2017. 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 expectations. The Ashford 25 was introduced to our 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 new line of gas-burning free-standing stoves, our new Clarity line of stoves, passed all testing in the
first quarter of 2017 and is starting production runs in the second quarter of 2017. Management is very pleased with the
reception so far of our gas-burning line of stoves from our dealers and distributors. Management anticipates first sales of
our new gas-burning products in the early part of the third quarter 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.
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 continues to introduce new products and 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 continued to strengthen their sales
team with the addition of a new salesperson dedicated to the Canadian market, as 2017 is seen by Unicast management as a year of
significant growth.
Outlook
Management is maintaining a positive outlook for the Company and its two subsidiaries, Blaze King and Unicast.
Management believes that the Company is better positioned for future growth now that a second company has been added to the
corporate family, as this diversity 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
#104, 1420 St. Paul Street
Kelowna, BC V1Y 2E6
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.
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