GDG Environment Group is happy to report its first quarter 2010 financial results. The Company’s activities: biological control of biting flies and vector disease control being seasonal, it is important to interpret the following financial results by taking into account that such activities begin in April, therefore, in the second quarter.
The acquisition of Groupe Bio Services (GBS) in March 5, 2010 is a first step towards the Company’s growth plan. This acquisition is excellent news for GDG Environment Group. In fact, a new clientele of fifteen municipalities is being added to our existing institutional clientele, and twenty GBG employees joined our ranks. Moreover, it allows GDG Environment Group to become a major provider of environmental and public health services, both at the national and international levels.
In order to ensure the Company’s long-term growth, we will focus our efforts on two development axes. Firstly, we seek to generate an internal growth higher than 10% while remaining on the lookout for external growth opportunities, both at the national and international levels. Secondly, we are working to develop strategic partnerships which will support our efforts towards developing markets with very strong potential, such as the detection and treatment of cyanobacteria (blue-green algae), while continuing to value our present expertise.
The Company begins the year 2010 with a backlog amounting to more than $7 million compared to $5 million in the corresponding quarter of 2009. This will be reflected during our seasonal peak which occurs in the second and third quarters. This backlog, and a good performance at the beginning of the year, is a result of the synergy generated by the recent acquisition of Groupe Bio Services.
For the period ended March 31, 2010, sales amounted to $787,022 compared to $622,683 for the same period in 2009, being an increase of 26%. Gross margin for the quarter was 35,3%, compared to 33,7% for the corresponding period in 2009, or $277,819 compared to $209,844.
During the first quarter, the Company recorded a loss of ($307,996) or (0.01 $ per share), compared to a loss of ($314,008) or (0.01 $ per share) for the same period in 2009, which is attributable to the seasonal nature of the Company’s activities that occurs during that period of the year.
We remain confident about the future. This increase of our sales backlog will enable us to achieve the critical mass of contracts which will have a positive impact on our results.
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