- Company resumes revenue growth and achieves profitability -
- Announces appointment of Michael Koeppel on Board of Directors -
ST. HUBERT, QC, Dec. 17 /CNW/ - Kree Tech International Corporation
("Kree" or "the Corporation") (TSX-V: KT), an established and recognized
developer and manufacturer of superior pressure-sensitive products for the
healthcare industry, today announced its financial results for the three- and
six-month periods ended October 31, 2007. All amounts are in Canadian dollars
unless otherwise specified.
"We are pleased at having reached profitability and are back to focusing
on growing sales and expanding our product line," said Gregory Moffat, CEO of
Kree. "Due to our restructuring efforts, our costs have been adjusted to
reflect our core revenue base; however, we have capacity for considerable
growth moving forward and are excited with the emerging sales opportunities in
Sales for the second quarter ended October 31, 2007 were $1.2 million,
compared to $1.1 million in the second quarter of the previous year. The 9.7%
increase in revenue was largely attributable to a recovery in Kree's core
business after three slow quarters.
During Q2 2008 Kree recorded a non-recurring provision for R&D inventory
used for testing and for other slow moving inventory. Despite this
non-recurring provision, gross margin improved to $259,000, or 21.7% of Q2
2008 sales, compared to $212,000 or 19.4% of sales in the prior year's second
quarter. The improvement in gross margin was due to the sales increase as well
as the decrease in fixed expenses following the closure of Kree's Plattsburgh,
New York plant late in fiscal 2007, and the consolidation of all U.S.
manufacturing operations at the Clearwater, Florida plant.
Selling expenses in the second quarter were $54,000, a decline of $63,000
from the comparable period last year, primarily due to the previously
announced reduction in U.S. sales personnel. Administrative expenses of
$217,000 represented a decrease of approximately $57,000 from the prior year,
driven primarily by the synergy following the consolidation of facilities, and
agreements with certain third-party consultants to reduce retainer fees.
For the first time since Q1 2005, Kree reached profitability. Kree's net
income in the second quarter of fiscal 2008 was $1,000 or $0.0001 per share,
compared to a net loss of $26,000 or $0.0012 per share in Q2 2007.
For more detailed financial information, please refer to our MD&A and
financial statements available on SEDAR at www.sedar.com.
Kree is in a position where it has a core business that is stable and
profitable. However, the Corporation still has the capacity for considerable
growth at its plant in Florida and through its unique product offerings and
Kree's Advanced Wound Care (AWC) treatment offers quicker recovery time,
better healing and less scarring than many conventional treatment options. The
Corporation can produce dressings with next generation attributes such as
Ultra Thin Hydrocolloids specifically designed for the retail market. Many
consumers are willing to pay a premium for these qualities and Kree is working
hard to penetrate the companies that service them. Kree believes that it is
well positioned in the AWC market in North America and over the longer-term,
On December 14, 2007, Charles Gelber stepped down from Kree's Board of
Directors to allow Michael Koeppel to join Kree's Board of Directors subject
to regulatory approval. Mr. Gelber will remain secretary of the Corporation.
"On behalf of the Board of Directors, I'd like to thank Charles Gelber for his
three years' guidance and support to Kree, and I am pleased with the fact that
Charles will remain as the secretary of the Corporation," added Mr. Moffat.
Mr. Koeppel has 26 years' experience, a majority of which was at a senior
executive level. Mr. Koeppel was an officer and member of Management Committee
at an international manufacturer and distributor of medical and paper products
company. In addition, Mr. Koeppel was a member of Management Committee for a
"spin out" of a Fortune 500 Company that went public. Both of these companies
were financed by a common private equity firm. Mr. Koeppel has a proven record
of leading companies through start-up, survival, turnaround and growth modes.
Among his significant previous positions, Mr. Koeppel was with
PriceWaterhouseCoopers. In 2002 Mr. Koeppel founded ECapital-Financing, a
consulting group that focuses on small to mid-sized manufacturing, high
technology and professional service companies in a distressed situation or
requiring capital injection.
Mr. Koeppel has a Master of Accountancy Degree from Bowling Green State
University and has been a Certified Public Accountant for more than twenty
years. He earned his Bachelor of Science degree from State University College
of New York at Buffalo in Economics where he graduated Summa Cum Laude.
Earlier this year, Mr. Koeppel was accredited by the American Institute of
Certified Public Accountants as a Certified Information Technology
Mr. Moffat stated, "We are delighted to welcome Michael to Kree's Board
of Directors as his counsel on operational and financing initiatives will be
valuable during the next phase of our growth."
Headquartered in St. Hubert, Quebec, Kree Tech International Corporation
is an established and recognized developer of superior pressure-sensitive
products for the health care industry. For over a decade, Kree has developed
innovative and cost-efficient medical tape products including printed vinyl,
coated plastic and fabric substrates, and bulk finished goods. Kree has also
developed proprietary coating formulations giving its medical bandages greater
effectiveness and versatility. These and other innovations have resulted in
Kree becoming a key supplier to a number of branded and private label
companies. Kree is registered under a number of quality management programs
including ISO 9001-2000 as well as FDA certification required for medical
This release contains various forward-looking statements as of the date
hereof and we undertake no obligation to update these statements regardless of
new developments or otherwise, except in accordance with applicable securities
laws. Statements in this release that are not historical are forward-looking
statements. Such statements are subject to various risks and uncertainties
that could cause actual results to vary materially from those stated. Such
risks and uncertainties include but are not limited to: economic conditions in
various regions, product and price competition, supplier and raw material
prices, foreign currency exchange rate changes, interest rate changes,
increased legal expenses and litigation costs and other risks and
uncertainties described more fully in the Corporation's annual filings on
For further information:
For further information: Greg Moffat, Chief Executive Officer, Kree Tech
International Corporation, (727) 540-9295, firstname.lastname@example.org