Encompass Group Affiliates Inc. announced plans for the opening of a 30,000-square-foot, parts and whole goods distribution and service complex in Mississauga. From this facility, the company will manage both forward and reverse logistics for whole goods, as well as parts distribution for hundreds of brands of consumer electronics, computer and imaging products. The company will be one of the few sources in Canada to provide parts and service for all three major product categories. Most notably, Encompass will continue to be the single authorized source of original replacement parts for P & F consumer products in Canada--a role the Company also serves in the U.S. and Mexico. The facility will also provide board level and component repair services for various consumer electronic products.

Encompass Group Affiliates Inc. reported consolidated earnings results for the year ended June 30, 2009. For the year, the company reported net income available to common stockholders of $2,026,000 on net sales of $110,084,000 compared to net income available to common stockholders of $2,504,000 on net sales of $64,327,000 for the same period a year ago. The company reported income from operations of $7,835,000 and income before income tax benefit of $1,608,000 compared to income from operations of $2,240,000 and loss before income tax benefit of $453,000 for the same period a year ago. Non-GAAP adjusted net income was $5,538,000 and non-GAAP adjusted EBITDA was $11,121,000 compared to non-GAAP adjusted net income was $6,009,000 and non-GAAP adjusted EBITDA was $4,458,000 for the same period a year ago. The increase in revenue is attributable to two factors: internal growth of two existing business units, Vance Baldwin Inc. and Cyber-Test Inc., and the acquisition of Tritronics Inc., completed on August 1, 2008. Although the company's revenue growth in fiscal 2009 was adversely impacted by a poor economic climate and the aforementioned bankruptcy and liquidation of Circuit City, year-over-year revenue nonetheless increased by 21.2% on a pro forma basis.

Encompass Group Affiliates Inc. announced plans for the opening of a 21,500-square-foot, parts and reverse logistics complex in Lerma, Mexico, just 25 miles southwest of Mexico City. Scheduled to open on or about October 15, 2009, the facility will be dedicated initially to parts distribution for hundreds of brands of consumer electronics, appliance, computer and imaging products, and will be the only single source in Mexico to offer parts for all four major product categories. Most notably, Encompass will be the single authorized source of original replacement parts for P & F (formerly Philips) consumer products in Mexico--a role the Company already serves in the U.S. and Canada. The distribution facility is located in Lerma, a suburb of Mexico City, in a secure modern warehouse/distribution facility with tenants such as BMW Parts, Coca Cola and Rubbermaid.