Brampton Brick Reports Results for the First Quarter Ended March 31, 2008 Semi-Annual Dividend Declared

BRAMPTON, ONTARIO, May 09, 2008 (MARKET WIRE via COMTEX News Network) ----(All amounts are stated in thousands of Canadian dollars, except per share amounts, unless otherwise indicated.)

Brampton Brick Limited (TSX: BBL.A) today reported a loss of $4,077, or $0.37 per Class A Subordinate Voting share ("Class A share") and Class B Multiple Voting share ("Class B share"), for the first quarter ended March 31, 2008 on a weighted average 10,882,000 Class A shares and Class B shares outstanding. For the first quarter of 2007, the Company incurred a loss of $2,542, or $0.23 per share, on a weighted average 10,833,000 Class A shares and Class B shares outstanding.

Effective October 2, 2007, the Company's 65% owned subsidiary, 1312082 Ontario Limited (formerly Medical Waste Management Inc.), completed the sale of substantially all of its business operations and assets, excluding its 50% joint venture interest in Sharpsmart Canada Limited ("Sharpsmart"). Accordingly, operating results and cash flows of this component of the business have been classified as discontinued operations. Comparative amounts have been reclassified to conform with the current period financial statement presentation.

RESULTS OF OPERATIONS

Net sales from continuing operations for the quarter were $10,391 compared to $11,015 in 2007. Lower shipments in the Masonry Products business segment resulted in a net decrease of $624 in consolidated net sales from continuing operations.

Substantially lower production volumes, in both the Masonry Products and Landscape Products business segments, in the first quarter of 2008 compared to the first quarter of 2007 resulted in an increase in unabsorbed manufacturing expenses charged against operations. This variance accounted for most of the increase in cost of goods sold. Higher distribution costs, which resulted from an increase in personnel costs and higher transportation costs in the Sharpsmart operations, also contributed to the increase in cost of goods sold.

Selling, general and administrative expenses increased by $209 over last year. The increase was primarily attributable to higher advertising and other marketing expenditures related to the introduction of new products.

As a result of the decrease in net sales and the increases in cost of goods sold and selling, general and administrative expenses, the operating loss from continuing operations, before interest and other items, amounted to $5,739 for the quarter ended March 31, 2008 compared to $3,543 for the same period in 2007.

Interest on long-term debt decreased by $92 to $120 primarily due to the repayment of $4,000 in December 2007 on the promissory note payable.

Net interest income decreased as a result of lower surplus cash balances available for investment.

The Company incurred a foreign currency exchange loss of $182 in the first quarter of 2008. The loss was primarily due to the impact of a weaker Canadian dollar versus the Euro on the Euro denominated term loan and the impact of fluctuations in the rate of exchange between the Canadian and U.S. dollar during the quarter on other foreign currency transactions.

In the first quarter of 2007, the Company reported a foreign currency exchange loss of $354 which related primarily to U.S. cash balances held by the Company as well as other U.S. dollar denominated net monetary assets.

During the first quarter of 2008 certain properties located in the province of Quebec, which are surplus to the Company's requirements, were sold resulting in a gain of $136.

The recovery of income taxes in the first quarter of 2008 reflected an effective tax rate of 29.1% compared to 31.9% for the same period in 2007 primarily due to the reduction in Federal income tax rates.

More detailed discussion with respect to each operating business segment follows:

MASONRY PRODUCTS

For the quarter ended March 31, 2008, the Masonry Products business segment incurred an operating loss of $1,905 on net sales of $9,306 compared to an operating loss of $225 on net sales of $10,136 for the corresponding period in 2007.

As a result of unfavourable weather conditions and the continuing economic downturn affecting the Company's markets, clay brick shipments were approximately 6% lower in 2008 compared to 2007. The reduction in clay brick shipments was partially offset by sales of new concrete masonry products introduced in 2007.

Two of the Company's three clay brick kilns were shut down throughout the first quarter. As a result, production volumes were lower than in the first quarter of 2007. Due to the relatively high fixed cost nature of these operations, unabsorbed manufacturing expenses charged against operations were higher in the first quarter of 2008 compared to the first quarter of 2007.

Higher distribution costs and an increase in selling expenses, for the reasons outlined above, also contributed to the increase in the operating loss incurred by this business segment in 2008 over the operating loss incurred in 2007.

LANDSCAPE PRODUCTS

The Landscape Products business segment incurred an operating loss of $3,610 on net sales of $680 for the first quarter of 2008 compared to an operating loss of $3,202 on net sales of $681 for the first quarter of 2007.

The increase in the operating loss was due to much lower production volumes, which, in turn, resulted in an increase in unabsorbed manufacturing expenses charged against operations, as well as increases in both distribution costs and selling expenses.

Operating results of Da Vinci Stone Craft operations, which are reported under the Landscape Products business segment, were substantially the same for the first quarter in both 2008 and 2007.

OTHER OPERATIONS

Other operations include the 50% joint venture interest in Sharpsmart held by a 65% owned subsidiary and the Company's 50% joint venture interest in Universal Resource Recovery Inc. ("Universal"). Both of these investments are accounted for using the proportionate consolidation method.

An increase in Sharpsmart container turns produced an increase of $207 in the Company's proportionate share of Sharpsmart's net sales from $198 in the first quarter of 2007 to $405 this period. Higher transportation costs and one-time costs incurred with respect to the relocation of the Sharpsmart operations resulted in an operating loss of $90 for the quarter compared to an operating loss of $46 for the corresponding period last year.

The Company's proportionate share of start-up costs related to Universal totaled $134 for the first quarter ended March 31, 2008 compared to $70 in 2007. There have been no commercial operations to date.

DISCONTINUED OPERATIONS

Discontinued operations presented in the 2007 comparative financial information represents the Company's medical waste business operations which were sold in October 2007 and includes substantially all of this business except the remaining joint venture interest in Sharpsmart which was retained by the Company. Net sales of discontinued operations for the quarter ended March 31, 2007 amounted to $2,713 and net income from discontinued operations was $103.

CASH FLOWS

Cash flow used by operating activities of continuing operations for the quarter ended March 31, 2008 totaled $6,346 compared to $4,070 for the same period last year.

Lower earnings, lower collections of accounts receivable and a net increase in income taxes recoverable contributed to the increase in cash used by continuing operations. These factors were partially offset by a reduction in the investment in inventories in the first quarter of 2008 compared to the same period in 2007.

Cash utilized for purchases of property, plant and equipment totaled $10,896 for the quarter compared to $3,915 for the same period in 2007. Capital expenditures during the first quarter of 2008 included $8,038 incurred in connection with the construction of the Indiana clay brick plant compared to $2,640 for the same period in 2007.

Purchases of property, plant and equipment in 2008 also included an amount of $1,100, compared to $165 for the same period in 2007, related to the Company's 50% share of expenditures incurred by Universal for building modifications and to acquire processing equipment.

During the quarter operating bank advances and term bank loans increased by $1,480 and $3,000, respectively.

Other cash inflows included proceeds of $216 from the sale of property held for sale and $489 from the issuance of Class A Subordinate Voting shares upon the exercise of stock options under the Company's Stock Option Incentive Plan.

Additional distributions in the first quarter of 2008 from the cash proceeds from the sale of the medical waste business operations and assets resulted in dividend payments of $700 to the non-controlling shareholders of this subsidiary.

During the first quarter of 2007, the medical waste business, which is now classified as discontinued operations, repaid advances totaling $280 to the parent company and the net cash provided by discontinued operations amounted to $112.

OTHER

Construction of the Company's new clay brick manufacturing plant in Indiana, which commenced in 2007, is substantially on schedule and is expected to be completed in the fourth quarter of 2008.

In 2007 Universal received the required Certificates of Approval from the Ministry of Environment (Ontario) to construct and operate a waste composting and material recycling facility at its site in Welland, Ontario. Construction has commenced and is expected to be completed in the third quarter of 2008.

Universal has now secured financing in an aggregate amount of $20,000, including both term loan and operating loan facilities, to fund its capital expenditure and operating requirements. The Company and the joint venture partner have each provided a guarantee of $6,500 as security for Universal's borrowings under this credit facility. On April 21, 2008, the Company's 65% owned subsidiary, 1312082 Ontario Limited, sold its 50% joint venture interest in Sharpsmart. Aggregate proceeds of $1,180 include the repayment of shareholder advances of $715, proceeds from the sale of shares of $385 and proceeds from the sale of certain other assets of $80. These operations contributed $405 to consolidated net sales for the three month period ended March 31, 2008 and incurred a loss of $40, after income taxes and non-controlling interests. For the year ended December 31, 2007, the contributions to consolidated net sales and consolidated net income were $1,284 and $50, respectively. The sale and all related transactions will be reported in the Company's financial statements for the second quarter of 2008.

The Company also announced today that the Board of Directors declared a dividend of $0.10 per Class A Subordinate Voting share and $0.10 per Class B Multiple Voting share outstanding, payable on June 30, 2008 to shareholders of record on June 15, 2008.

Dividends paid by the Company are designated as eligible dividends pursuant to Subsection 89(14) of the Income Tax Act (Canada). An eligible dividend received by a Canadian individual shareholder is entitled to the enhanced dividend tax credit.

On January 1, 2008, the Company adopted the new accounting standard of the Canadian Institute of Chartered Accountants (CICA) Handbook Section 3031, Inventories. The adoption of this standard had no impact on the Company's method of accounting for inventory cost but has resulted in changes in certain disclosures in the consolidated financial statements.

On January 1, 2008, the Company also adopted the new accounting standards of the CICA Handbook Section 3862, Financial Instruments - Disclosures and Section 3863, Financial Instruments - Presentation (which replaces Section 3861, Financial Instruments - Disclosures and Presentation). These sections apply to fiscal years beginning on or after October 1, 2007 and provide standards concerning the disclosure of the significance of financial instruments for an entity's financial position and performance and the nature and extent of risk exposures arising from financial instruments and the approach used by the entity in managing those risks. These standards also provide guidance for the presentation of recognized financial instruments and identify the information to be disclosed.

Certain statements contained herein constitute "forward-looking statements". Such forward-looking statements involve known and unknown risks, uncertainties and other factors, including, but not limited to, those identified under "Risks and Uncertainties" in the Company's 2007 Annual Report, which may cause actual results, performance or achievements of the Company to be materially different from any future result, performance or achievements expressed or implied by such forward-looking statements.

Brampton Brick is Canada's second largest manufacturer of clay brick and manufactures concrete paving stones, retaining walls, garden walls and enviro products in Canada and the U.S. under the Oaks Concrete Products trade name. The Company also manufactures a range of concrete masonry products including stone veneer and window sills. Products are used for residential construction and for industrial, commercial, and institutional building projects. Da Vinci Stone Craft Ltd., a 75% owned subsidiary, manufactures fireplace surrounds and accessory products. The Company also holds a 50% joint-venture interest in Universal Resource Recovery Inc., which is constructing a waste composting and material recycling facility in Welland, Ontario.

 Selected Financial
   Information (thousands of dollars, except per share amounts) (unaudited) ---------------------------------------------------------------------------
   Three months ended March 31 CONSOLIDATED STATEMENTS OF LOSS 2008 2007 ---------------------------------------------------------------------------
   --------------------------------------------------------------------------- Net sales from continuing operations $ 10,391
   $ 11,015 Cost of goods sold 10,288 8,732 Selling, general and administrative expenses 3,744 3,535 Amortization 2,098 2,291
   -------- ---------- 16,130 14,558 -------- ---------- Operating loss from continuing operations before the undernoted items
   (5,739) (3,543) Interest on long-term debt (120) (212) Interest income (net) 123 171 Foreign currency exchange loss (182)
   (354) Foreign currency exchange gain on cash flow hedges 32 - Other income 17 38 -------- ---------- (130) (357) --------
   ---------- Loss from continuing operations before the following items (5,869) (3,900) Gain on sale of property held for sale
   136 - -------- ---------- Loss from continuing operations before income taxes and non-controlling interests (5,733) (3,900)
   (Provision for) recovery of income taxes Current 1,076 (37) Future 593 1,281 -------- ---------- 1,669 1,244 -------- ----------
   Loss from continuing operations before non-controlling interests (4,064) (2,656) Non-controlling interests (13) 11 --------
   ---------- Loss from continuing operations (4,077) (2,645) Net income from discontinued operations - 103 -------- ----------
   Loss for the period $ (4,077) $ (2,542) -------- ---------- -------- ---------- Loss per Class A and Class B share From continuing
   operations $ (0.37) $ (0.24) -------- ---------- -------- ---------- For the period $ (0.37) $ (0.23) -------- ----------
   -------- ---------- Weighted average Class A and Class B sharesoutstanding (000's) 10,882 10,833 ---------------------------------------------------------------------------
   (thousands of dollars) (unaudited) --------------------------------------------------------------------------- Three months
   ended March 31 CONSOLIDATED STATEMENTS OF CASH FLOWS 2008 2007 ---------------------------------------------------------------------------
   --------------------------------------------------------------------------- Cash provided by (used for) activities of continuing
   operations Operating activities Loss from continuing operations for the period $ (4,077) $ (2,645) Items not affecting cash
   Amortization and accretion 2,111 2,303 Future income taxes (593) (1,281) Non-controlling interests 13 (11) Unrealized foreign
   currency exchange loss 56 16 Gain on sale of property held for sale (136) - Gain on disposal of property, plant and equipment
   - (4) Other 103 121 (2,523) (1,501) -------- ---------- Changes in non-cash operating items Accounts receivable (213) 2,332
   Inventories 667 (2,021) Accounts payable and accrued liabilities (978) (866) Income taxes payable (net) (3,275) (2,027) Other
   (24) 13 -------- ---------- (3,823) (2,569) -------- ---------- Cash used for operating activities of continuing operations
   (6,346) (4,070) Investing activities Purchase of property, plant and equipment (10,896) (3,915) Proceeds from disposal of
   property, plant and equipment - 7 Proceeds from sale of property held for sale 216 - -------- ---------- Cash used for investment
   activities of continuing operations (10,680) (3,908) Financing activities Increase (decrease) in bank operating advances 1,480
   (2,460) Increase in term loan 3,000 - Repayment of term loans (14) (46) Payments on obligations under capital leases (44)
   (126) Payment of dividends by subsidiary to non-controlling interests (700) - Inter-company advances repaid by discontinued
   operations - 280 Proceeds from exercise of stock options 489 - Class A shares repurchased (99) - -------- ---------- Cash
   provided by (used for) financing activities of continuing operations 4,112 (2,352) Net cash provided by discontinued operations
   - 112 -------- ---------- Decrease in cash and cash equivalents (12,914) (10,218) Cash and cash equivalents at the beginning
   of the period 14,056 24,446 -------- ---------- Cash and cash equivalents at the end of the period $ 1,142 $ 14,228 --------
   ---------- -------- ---------- --------------------------------------------------------------------------- (thousands of dollars)
   (unaudited) --------------------------------------------------------------------------- March 31 December 31 CONSOLIDATED
   BALANCE SHEETS 2008 2007 --------------------------------------------------------------------------- ---------------------------------------------------------------------------
   ASSETS Current assets Cash and cash equivalents $ 1,142 $ 14,056 Accounts receivable 7,850 7,725 Inventories 21,975 22,642
   Income taxes recoverable 4,337 2,919 Future income taxes 461 294 Other current assets 996 1,005 Promissory note receivable,
   current 3,482 3,382 --------- ---------- 40,243 52,023 Property, plant and equipment (net) 97,622 98,624 Construction in progress
   22,048 14,851 --------- ---------- 119,670 113,475 Other assets Goodwill 6,711 6,711 Future income taxes 1,901 1,319 Promissory
   note receivable, long-term 6,472 6,449 Other 1,380 1,472 --------- ---------- 16,464 15,951 --------- ---------- $ 176,377
   $ 181,449 --------- ---------- --------- ---------- LIABILITIES Current liabilities Bank operating advances $ 2,130 $ 650
   Accounts payable and accrued liabilities 10,887 14,805 Income taxes payable 2,410 4,265 Long-term debt, current portion 4,746
   4,689 Derivative financial instruments, current 1,290 1,606 Asset retirement obligation 128 375 --------- ---------- 21,591
   26,390 Long-term debt, less current portion 6,732 3,758 Derivative financial instruments, non-current 1,218 809 Future income
   taxes 7,710 7,722 Asset retirement obligation 685 673 --------- ---------- 37,936 39,352 Non-controlling interests 3,679 4,366
   SHAREHOLDERS' EQUITY 134,762 137,731 --------- ---------- $ 176,377 $ 181,449 --------- ---------- --------- ---------- ---------------------------------------------------------------------------
   (thousands of dollars) (unaudited) --------------------------------------------------------------------------- Three months
   Year ended ended March 31 December 31 CONSOLIDATED STATEMENTS OF RETAINED EARNINGS 2008 2007 ---------------------------------------------------------------------------
   --------------------------------------------------------------------------- Balance at the beginning of the period $ 111,587
   $ 110,246 Net income (loss) (4,077) 3,519 Premiums paid on repurchase of capital stock (61) (8) Dividends - (2,170) ----------
   ----------- Balance at the end of the period $ 107,449 $ 111,587 ---------- ----------- ---------- ----------- ---------------------------------------------------------------------------
   (thousands of dollars) (unaudited) --------------------------------------------------------------------------- Three months
   ended March 31 CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS 2008 2007 ---------------------------------------------------------------------------
   --------------------------------------------------------------------------- Loss for the period $ (4,077) $ (2,542) Other
   comprehensive income (loss) Gain (loss) on cash flow hedges net of taxes 45 - ---------- ----------- Total comprehensive loss
   for the period $ (4,032) $ (2,542) ---------- ----------- ---------- ----------- ---------------------------------------------------------------------------
   

 Contacts: Brampton Brick Limited Ken Mondor Vice-President, Finance (905) 840-1011 (905) 840-1535 (FAX) Email:
   investor.relations@bramptonbrick.com 

SOURCE: Brampton Brick Limited

mailto:investor.relations@bramptonbrick.com
   

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