The Company's marketing efforts are delivering the results
anticipated by the planned growth strategy
MONTREAL, March 13 /CNW Telbec/ - Komet Manufacturers Inc. "Komet" (TSX-V: AQD) today disclosed its financial results for the first quarter of 2008, ended December 31, 2007.
During this quarter, the Company recorded revenues of $1,649,156 from its continuing commercial operations. Last year, the Company recorded revenues of $1,975,356. This slight decline is mainly explained by the delay of a substantial order from a major client. Carrying out this order during the last quarter would have enabled the Company to achieve its set objective and post significant net earnings. This order will be completed during the current quarter.
Komet's net loss was $11,438, compared to net earnings of $34,426 for the same period last year. This slight decline is again attributable to the delayed order mentioned above.
Furthermore, between September 30 and December 31, 2007, the long-term debt fell by $65,360 following a capital repayment made on contracted loans. Consequently, the long-term debt was $700,117 as at December 31, 2007.
With regard to cash flow, cash and cash equivalents stood at $990,966 as at December 31, 2007. At the same date last year, the Company had a cash-flow deficit of $695,587. The deficit of December 31, 2006 was absorbed by the approval of a credit margin of $1,200,000, of which $1,100,000 was used as at December 31, 2007, because of the increase in stock related to the delayed sale. For its part, the surplus $990,966 mainly comes from the reverse takeover of the Company, which allowed it to release the amount of $1,083,929, including accumulated interest.
Marketing efforts bear fruit
In recent months, the Company began several initiatives to support the deployment of its commercialization strategy. Among these initiatives, Komet recently formed two major new agreements with two Canadian retail giants. As a result, Komet could strengthen its presence in the Canadian market, while continuing to pursue its previously announced planned growth strategy. Furthermore, it should be noted that other marketing activities are currently being pursued that come under the strategic plan 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. Thanks to its preferred access to numerous Asian suppliers, the Company is able to offer its complete product line at competitive pricing. Komet's furniture selection includes vanities, mirrors, medicine cabinets and linen cabinets, which are all available in several colours and models, allowing clients to personalize the collections.
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