Despite the economic slowdown and a significant initiative to pay down
its long-term debt, the Company posts a profit
MONTREAL, Feb. 16 /CNW Telbec/ - Komet Manufacturers Inc., "Komet" (TSX-V: AQD), today disclosed its financial results for the 2008 fiscal year, ended September 30, 2008.
During this period, the Company recorded revenues of $7,435,233 from current business activities. By means of comparison, during the nine-month period ended September 30, 2007, Komet recorded revenues of $6,859,275. A product of the slowdown being felt throughout the manufacturing sector, this decrease is in particular due to a marked decline in sales and stock being retained in inventory by the Company's clientele as well as to a significant drop in the exchange rate during most of the fiscal period, which led certain major clients to import products directly from Asia.
Before-tax profits on earnings totalled $19,568, compared to $221,360 recorded during the nine-month period ended September 30, 2007. This profit reflects the sound management of the Company's operations during difficult economic times. These results also reflect a loss on exchange of $22,483 in 2008, compared to a gain on exchange of $55,401 in 2007. This loss on exchange was recorded late in fiscal 2008, a period that saw a rapid drop in the Canadian dollar.
The Company's cash flow stands at $292,212, compared to $479,688 during the previous period. It should also be noted that Komet paid down $270,935 of its long-term debt while directing $15,935 towards the acquisition of fixed assets.
During the 2008 fiscal period, the Company increased its cash position by $303,745, while at the same time paying $540,000 towards its line of credit.
Perspective
"The future looks promising for Komet, with the company expecting to benefit from a number of strategic and operational initiatives begun in 2008," stated Francois Nadeau, the Company's Chief Executive Officer, upon the tabling of the annual financial results. "In addition to continuing our excellent business relationships with major clients such as Rona, Reno-Depot and Home Depot, the creation of a new kitchen division will both diversify our product offering and increase our sources of revenue. In short, Komet currently finds itself in a strategically advantageous position with respect to its growth and development, and we believe that our shareholders will be pleased with our results as head into the future."
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 June 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 enjoyed outstanding 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 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 accompanying faucets 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.
(x) The TSX Venture Exchange does not accept responsibility for the
adequacy or accuracy of this release.