Strengthened by major new clients such as Wal-Mart and by the development
of new products, the Company anticipates substantial sales growth over
the coming months
MONTREAL, Aug. 29 /CNW Telbec/ - Komet Manufacturers Inc. "Komet" (TSX-V: AQD) today disclosed its financial results for the third quarter of 2008, ended June 30, 2008.
During this quarter, the Company recorded revenues of $1,539,261 from current business activities. Last year, the Company recorded revenues of $1,808,141. This decline is explained by a slight drop in sales to the Company's main clients, related to the economic slowdown during these months. A new business relationship with a prestigious partner like Wal-Mart, combined with new products and business sectors, is expected, however, to soon lead to increased revenues for the Company.
Komet's net loss was $54,530 as at June 30, 2008, compared to a net loss of $84,485 for the quarter ended June 30, 2007. Furthermore, it should be noted that careful management of short-term assets during this period allowed for significant reductions in the use of the Company's credit margins.
In addition, the Company's long-term debt was reduced by $65,849 during the third quarter. The total repayment for the last fiscal year was $204,824. In comparison, an amount of $61,767 was reimbursed during the same quarter last year. The total amount paid back was $183,669.
In regards to cash flow, cash and cash-equivalents totalled, as at June 30, 2008, $1,093 813, compared to $1,009,014 at the same date one year earlier. Also during the third quarter, the Company considerably lowered its short-term debt, notably by reducing the use of its credit margin of $395,000, following a reduction in client accounts of $486,295.
Prestigious partners and new products
Strongly backed by solid business relationships with prestigious partners such as Wal-Mart, Canadian Tire as well as large home renovation centres across Canada, the Company has, as a result, strengthened its position in the Canadian market, and is aiming at sales growth in the coming months. At the same time, the Company has been working on the development of new products and an expansion into new business sectors. These initiatives are already enabling Komet to optimize the use of its current facilities and, consequently, increase its profitability. Lastly, other development and marketing efforts are presently part of the strategic framework adopted by the Company.
Forward looking statements
This document may contain certain forward-looking statements that reflect the current expectations of management regarding future events. These forward-looking statements depend on a certain number of factors involving risks and uncertainties. The actual results could differ from those anticipated. Management disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information or future events.
About Komet
Komet, a Quebec corporation headquartered in Blainville, has been listed on the TSX Venture Exchange since 2007. The Company specializes in designing and manufacturing bathroom furniture products, which are marketed under the Aquadis brand name. Since the Company's launch, Komet has rapidly enjoyed success in the home improvement market due to the quality, affordability and ease-of-assembly of its wide range of bathroom furniture products. In Canada, Komet's market presence is assured by the distribution of its products in multiple superstore outlets across the country, notably Rona, Reno-Depot, Canadian Tire and Home Depot. Komet's furniture selection includes vanities, medicine cabinets, linen cabinets and mirrors. These are all available in several colours and models to which porcelain sinks and taps can be added to provide a complete kit. Thanks to its preferred access to numerous Asian suppliers, the Company is able to offer its complete product line at competitive pricing.
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