TICKER SYMBOL: IFX.A
MONTREAL, May 9 /CNW Telbec/ - Imaflex Inc. (the "Company") (TSX Venture
Exchange - IFX.A) announces results for the first quarter ended March 31,
2008.-------------------------------------------------------------------------
(unaudited)
(CDN $ thousands, except per share amounts) Q1 2008 Q1 2007
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Sales 12,114 12,028
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Cost of sales 10,238 10,292
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Gross profit ($) 1,876 1,736
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Gross profit (%) 15.5 14.4
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Expenses 2,064 1,870
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FX loss (gain) on translation 100 (136)
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Income (loss) before income taxes (288) 2
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Provision for income taxes 188 81
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Non-controlling interest - -
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Net loss (476) (79)
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Basic and diluted loss per share (0.013) (0.002)
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EBITDA 822 903
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-------------------------------------------------------------------------The results include those of Imaflex Inc. ("Imaflex") located in Montréal
(Québec) and its division Canguard Packaging ("Canguard") located in
Victoriaville (Québec), and its wholly owned subsidiaries, Imaflex USA, Inc.
("Imaflex USA") located in Thomasville (North Carolina) and Canslit Inc.
("Canslit") located in Victoriaville (Québec).
Summary - Results of Operations
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The Company incurred a net loss of $476,000 for the three months ended
March 31, 2008, compared with a net loss of $79,000 for the same period in
2007. The Company's Canadian operations generated net income of $555,000 for
the three months ended March 31, 2008, compared with net income of $276,000
for the same period in 2007. Furthermore, the current quarter's results were
adversely impacted by losses at the Company's U.S. facility of $572,000,
compared with $386,000 for the same period in 2007. Lastly, the Company
incurred a foreign exchange loss on the translation of the integrated
subsidiary of $459,000, compared with a foreign exchange gain of $136,000 for
the same period in 2007.
Sales
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Sales for the quarter ended March 31, 2008, totalled $12,114,000 compared
with $12,028,000 for the same period in 2007. Sales are comparable to the
prior year.
Gross profit margins
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The gross margin percentage increased during the quarter to 15.5%
compared to 14.4% for the same quarter in 2007. This increase is due to the
increased efficiency in our Canadian operations.
Income taxes
------------
The income tax provision reflects the taxes on the income generated by
the Company's Canadian operations. No future income tax benefits have been
recorded on Imaflex USA's operating losses.
Management Outlook
------------------
As reported in earlier outlooks our U.S. operations have been hampered
with machinery problems and up to now could not contribute to reducing this
entity's losses. The date at which all machinery problems were resolved was
the first week of March, and hence too late to materially affect current
quarter results. Management has begun to execute its plans, and expects that
its actions will result in the dramatic decrease in losses in this entity
during the coming quarters.
As to our Canadian operations, this quarter's results at Canslit and
Canguard confirm managements' expectations of greater profitability. The many
changes undertaken, completed in the last quarter of 2007, have dramatically
increased profitability in both these entities and these are expected to
contribute greater profits in the coming quarters.
Our focus in our Canadian operations now changes to increasing revenues
in Imaflex Inc. This change is the result of the successful integration at
Canslit, and Canguard. The result of their successful integration now permits
management to concentrate on replacing the capacity devoted to supplying them,
with revenues from third parties. Having made cost adjustments to offset the
prevailing market conditions management now fully expects that the increased
revenues, from third parties, in the coming quarters will achieve the
objectives of greater profitability.
Safe Harbor Statement
---------------------
Certain statements and information included in this release constitute
"forward-looking statements". Such forward-looking statements involve known
and unknown risks, uncertainties and other factors which may cause the actual
results, performance or achievements of the Company to be materially different
from any future results, performance or achievements expressed or implied in
such forward-looking statements. Additional discussion of factors that could
cause actual results to differ materially from management's projections,
estimates and expectations is contained in the Company's other public filings.
Unless otherwise required by the securities authorities, we do not undertake
to update any forward-looking statements that may be made from time to time by
us or on our behalf.
Non-GAAP Measure
----------------
The Company's management uses a non-GAAP measure in this press release,
namely EBITDA. Management wishes to specify that in the performance of the
Company's financial results, EBITDA is shown as "Earnings before interest,
taxes, depreciation and amortization". While EBITDA is not a standard GAAP
measure, management, analysts, investors and others use it as an indicator of
the Company's financial and operating management and performance. EBITDA
should not be construed as an alternative to net income determined in
accordance with GAAP as an indicator of the Company's performance. The
Company's method of calculating EBITDA may be different from those used by
other companies.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
%SEDAR: 00011834EF
For further information: Imaflex Inc.: Joseph Abbandonato, President and
C.E.O; Robert Nagy, CMA, CIA - Controller, (514) 935-5710, Fax: (514)
935-0264, info@imaflex.com; www.imaflex.com
