Highlights of the fourth quarter of 2007 were:

- Revenue of $30.0 million, more than double $14.9 million in Q4 06

- Record quarterly net income of $2.8 million, up 86% from $1.5 million in Q4 06

- Diluted earnings per share of $0.10, up from $0.07 in Q4 06

Highlights for the 12 months were:

- Record annual revenue of $104.8 million, up 90% from $55.1 million for the 12 months ended December 31, 2006

- Record annual net income of $7.5 million, up 33% from $5.7 million

- Record diluted earnings per share of $0.29, up from $0.27

"We have delivered strong revenue and earnings growth for a number of consecutive years and 2007 was no exception," said Ven Côté, ZCL's President and Chief Executive Officer. "The year was led by the acquisition of Xerxes Corporation which doubled our sales and manufacturing base." Mr. Côté added, "This strategic acquisition provides us with a strong presence in the important U.S. market."

"Looking ahead we see a number of excellent growth opportunities for our environmentally friendly fibreglass liquid storage solutions," commented Mr. Côté. "The opportunities include building our presence in the sizeable water/wastewater industry and taking advantage of increasing environmental awareness and regulations to grow revenue and market share in our largest market, underground petroleum storage."

EBITDA and Cash Flow

Earnings before interest, income taxes, depreciation and amortization were $5.1 million for the fourth quarter of 2007, up 97% from $2.6 million a year earlier. Cash generated by operations before changes in working capital was $3.4 million in the fourth quarter of 2007, up 81% from $1.9 million a year earlier.

For the year 2007, EBITDA was $14.6 million, up 52% from $9.6 million a year earlier, and Cash Flow was $10.1 million, up 38% from $7.3 million a year earlier.

EBITDA and net income for 2007 would have been higher but for approximately $1.7 million ($1.1 million after tax) of costs (manufacturing and general and administrative) resulting from the acquisition of Xerxes. These costs totalled $0.2 million in the fourth quarter of 2007.

The Company also started and finished the year in a strong financial position. At December 31, 2007, ZCL had positive working capital of $20.6 million, $94.4 million of total assets and long-term debt of only $8.9 million including the current portion.

Targets

The Company's revenue and EBITDA for 2007 were within the target ranges disclosed in November 2007. Revenue for 2007 of $104.8 million was within the target range of $104 million to $107 million and EBITDA of $14.6 million was within the established range of $14 million to $16 million.

With a number of strong growth opportunities we remain committed to our long-term profitable growth objective of 15% to 20% per annum. For 2008, we have established a target for revenue growth of more than 20%. This target takes into account a full year of our U.S. operations compared to about ten months in 2007. On the downside, it also assumes a lower U.S. to Canadian dollar conversion rate of $1.00 in 2008, compared to an average rate of $1.05 in 2007.

We have also developed a medium-term objective of improving the EBITDA margin to 20% of revenue. The target for 2008 is to achieve an EBITDA margin of 16% of revenue, compared to an actual EBITDA margin of 13.9% of revenue in 2007.

The 2008 targets reflect our expectations for organic growth and do not take into account growth related to potential new acquisitions. With our strong balance sheet, we believe we are well positioned to take advantage of strategic and accretive acquisition opportunities that may exist. -- www.cnxmarketlink.com