Winalta loses $5.2 million in the second quarter despite higher revenues

CALGARY _ Insolvent modular home manufacturer Winalta Inc. (TSXV:WTA.A) matched last year's $5.2 million net loss in its fiscal second quarter as it looks to sell non-core assets.

The Calgary-based company, which obtained court protection under the Companies' Creditor Arrangement Act on April 26, lost 14 cents per share for the period ended April 30. That compared with a 15-cent loss a year earlier.

Winalta said the loss was incurred because of lower homes revenues and losses on discontinued operations and production inefficiencies related to non-production at the Acheson manufacturing facility.

Total homes and oilfield division revenues increased to $6 million from $4.9 million in the year-ago period.

Operating earnings (earnings before interest, taxes, depreciation and amortization) was $100,000, compared to a loss of $300,000 in 2009.

Artie Kos, who became president and CEO late last month, said he is focused on selling non-core assets.

``Winalta is actively divesting of its non-core assets and is well positioned with salable, profit generating assets. Proceeds from the sale of non-core assets and homes sales are being used to pay down debt,'' he stated.

Winalta's home division, which is currently not producing any units, had slightly lower revenues as it was forced to offer discounts despite increased deliveries.

Oilfield division revenues increased by $1 million to $4.2 million. The rentals operations anticipates consistent profitability from secured rentals in the summer season.