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Keeping pace with the first nine months, GL&V recorded solid growth in the fourth quarter and closed the fiscal year with revenues of $235.4 million, up from $175.9 million for the previous fiscal year, an increase of 34%. International operations accounted for about 70% of consolidated revenues for fiscal 2000. Earnings before interest, income taxes, depreciation and amortization (EBITDA) rose 48% to $20.9 million, compared with $14.1 million for the fiscal year ended March 31, 1999. Fuelled by the synergies achieved with the new GL&V/Celleco and GL&V/Dorr-Oliver subsidiaries, net earnings grew by 59% to reach $6.8 million, up from $4.3 million for the previous fiscal year. Earnings per share amounted to $0.82 ($0.69 fully diluted), compared with $0.52 ($0.43 fully diluted). Cash flow from operations rose to $12.6 million or $1.52 per share ($1.25 fully diluted), up from $10.5 million or $1.27 per share ($1.05 fully diluted) for the previous fiscal year.

Revenues for the fourth quarter totalled $83.3 million, compared with $66.5 million for the equivalent period of the previous fiscal year, an increase of 25%. Net earnings rose 77% to $3.0 million or $0.36 per share ($0.30 fully diluted), up from $1.7 million or $0.21 per share ($0.17 fully diluted) for the fourth quarter of the previous fiscal year.

GL&V made three major acquisitions in 18 months: the GL&V/Celleco subsidiaries (September 5, 1998), recognized worldwide for their filtration technologies and equipment for the pulp and paper industry; GL&V/Dorr-Oliver (September 15, 1999), a world leader in equipment for various strategic markets; and two business units of Beloit – GL&V/Impco-Jones and GL&V/Beloit-Lenox (February 25, 2000) – positioning GL&V among the world's leading suppliers of equipment for paper manufacturers.

"The strong growth in earnings reflects the synergies of the GL&V/Celleco subsidiaries over a full year and GL&V/Dorr-Oliver over six months, along with those of GL&V/Beloit-Lenox and GL&V/Impco-Jones already. These acquisitions, which greatly strengthened our know-how and our platform of technologies and equipment, raised sales of spare parts to almost one-third of our consolidated revenues. The Pulp and Paper Group, the Process Group and GL&V Manufacturing all contributed to our growth. I would like to underline the performance of GL&V/Black Clawson-Kennedy (U.S.A.) and GL&V/Celleco (Atlanta) for the Pulp and Paper Group, along with the solid contribution by GL&V/Dorr-Oliver Canada and the new GL&V/Dorr-Oliver subsidiaries to the Process Group. GL&V Manufacturing achieved excellent results, exceeding expectations," indicated Laurent Verreault, President and Chief Executive Officer of GL&V.

"We are continuing to integrate the latest acquisitions while implementing our entrepreneurial culture in the new subsidiaries, and we maintain our niche strategy which has been successful throughout economic cycles. GL&V has every advantage to benefit from buoyant markets and the outlook is excellent," added Mr. Verreault.

Financial position
As at March 31, 2000, working capital amounted to $47.1 million, for a current ratio of 1.54:1, compared with $29.7 million and a ratio of 1.62:1 as at March 31, 1999. Shareholders' equity rose 10% to $51.7 million. The net book value was therefore $6.23 per share, versus $5.63 per share one year earlier. Subsequent to the last two acquisitions, long-term debt totalled $69.0 million, compared with $27.2 million as at March 31, 1999. Total assets climbed to $225.9 million, an increase of 65%.

Integration of last two acquisitions
Thus far, GL&V has achieved and even surpassed the anticipated synergies. It expects to finish integrating the GL&V/Dorr-Oliver subsidiaries into the Process Group by the fall of 2000. The Company is actively pursuing the integration of GL&V/Impco-Jones and GL&V/Beloit-Lenox into the Pulp and Paper Group. These integrations entail some cost-cutting and the outsourcing of production operations planned during fiscal 2000-2001, which will have a positive impact on net earnings in the coming quarters.

Order backlog
In recent months, the Process Group's subsidiaries, whose equipment and services are targeted to different strategic markets such as the chemical, mining, mineral processing and environmental industries, have announced several important contracts in various markets and countries. For its part, the Pulp and Paper Group continues to take advantage of the increase in orders from paper manufacturers, fuelled by the rise in commodity prices.

GL&V had a backlog of $143 million in orders as at March 31, 2000. This amount compares favourably with the previous year's total order backlog for continuing operations of $59 million as at March 31, 1999.

Profile
Founded in 1975, GL&V is a world leader in the design and manufacture of engineered proprietary equipment for the pulp and paper industry and other industrial markets, consisting mainly of chemicals, mining, metallurgy, energy and the environment. The Company holds the proprietary rights to most of the equipment used in its customized technological solutions. Its equipment is manufactured mainly in its plants in North America and Europe as well as by a network of subcontractor partners. GL&V's sales network extends over more than 40 countries on five continents. The Company has operating centres and/or sales representatives in Canada, the United States, six European countries, Australia, Africa, Asia, and South America, as well as sales agents in most industrialized regions. GL&V employs close to 1,500 people worldwide.

GL&V Pulp and Paper Group
1000 Laval Blvd.
Lawrenceville, Georgia 30043
United States
Phone: 770 963-2100
Fax: 770 822-2164