MAAX announces its Q1-06 Results MONTREAL, QC, July 13 /PRNewswire/ -- MAAX Corporation today announced earnings for the first quarter ended May 31, 2005. Net sales for the first quarter of fiscal 2006 increased 3.4% to $140.8 million from net sales of $136.1 million for the first quarter of fiscal year 2005. Operating income for the fiscal 2006 first quarter decreased by $3.6 million or 31.5% from $11.4 million to $7.8 million. Our net sales increased in all three sectors of activity. Net sales in the Bathroom Sector increased 3.0% from $111.5 million to $114.9 million. Net sales in the Kitchen and Spas Sectors increased 5.1% and 5.0% to $10.5 million and $15.4 million respectively. The market environment remains favorable but we experienced a slower growth in certain sectors of activity and in some regional markets. Lower consolidated operating income in the first quarter of fiscal 2006 was driven primarily by the year over year increase in the cost of raw material, which more than offset the improvement in direct labor and manufacturing expenses. Operating expenses were also affected by restructuring and non-recurring charges of $0.6 million compared to $1.8 million for the same period last year. Financial position Free cash flow (cash flow related to operating activities minus capital spending net of asset disposal) for the first quarter of fiscal year 2006 amounted to $4.3 million, for an improvement of $12.7 million when compared with a net use of cash of $8.4 million for the same period last year. This results mainly from a reduction of investment in working capital year over year from the implementation of lean initiatives. Total net debt (long term debt less cash and cash equivalent) of $350.1 million at May 31, 2005 decreased from February 28, 2005 levels of $355.1 million. Unusual Items and Measures Not Consistent with GAAP To facilitate understanding of first-quarter results, several tables are attached to this news release as supplemental disclosure. The operating results of MAAX account for unusual items affecting the comparability of its results. To measure its performance and that of its business sectors from one period to the next, without the variations caused by special or unusual items, management uses certain measures not consistent with U.S. GAAP, such as operating income and free cash flow. These measures have no standardized meaning as prescribed by U.S. GAAP and may not be comparable to similar measures presented by other companies. Accordingly, they should not be considered in isolation. Conference Call A conference call will be held exclusively for MAAX's note holders and term lenders at 10:00 a.m. Eastern time on Thursday July 14, 2005 to review and discuss the results for the first quarter of fiscal year 2006. About MAAX MAAX is a leading North American manufacturer of award-winning bathroom products, kitchen cabinets and spas for the residential housing market. The Corporation is committed to offering its customers an enjoyable experience: distinctive, stylish and innovative products and the best customer service practices in the industry. MAAX offerings are available through plumbing wholesalers, bath, kitchen and spa specialty boutiques and home improvement centers. The Corporation currently employs more than 3,700 people in 26 plants and distribution centers throughout North America and Europe. MAAX Corporation is a subsidiary of Beauceland Corporation. Visit us at http://www.maax.com/ . Forward Looking Statements This press release may contain implicit or explicit forecasts and forward-looking statements within the meaning of the Federal securities laws about MAAX's objectives, strategies, financial position, operating results and business. These statements are forward-looking in that they are based on management's expectations for the markets in which the Corporation does business as well as on various estimates and assumptions. These expectations seemed reasonable at of the date of this press release on July 13, 2005. However, actual results could differ materially from these expectations if known or unknown risks affect results or if management's estimates or assumptions prove inaccurate. Accordingly, management cannot guarantee the realization of the forward-looking statements. > DATASOURCE: MAAX INC. CONTACT: Andre Heroux, President and Chief Executive Officer, (514) 844-4155, ext. 222; Denis Aubin, Executive Vice-President and Chief Financial Officer, (514) 844-4155, ext. 231; Source: MAAX Corporation

Copyright