Novik exceeds sales & earnings goals for 2007



    
                         2007 FISCAL YEAR HIGHLIGHTS

    - Record-breaking $15.2 million in sales; up 25% over 2006
    - Gross margin at 39%; up 7% over 2006
    - EBITDA adjusted increased to $2.5 million from $500,000 in 2006
    - Net earnings up $400,000; compared to net loss of $957,000 in 2006
    - Fourth quarter 2007 revenue increased by 83% over fourth quarter 2006
    

    QUEBEC CITY, March 31 /CNW Telbec/ - Novik inc. (NVK) releases today its
results for the fourth quarter and the fiscal year ended December 31, 2007.
All amounts are expressed in Canadian dollars unless otherwise indicated.

    
    -------------------------------------------------------------------------
    NOVIK inc.

    for the fiscal years ended
     December 31, 2007 and 2006
    (in thousands dollars,
     except for amounts per       Fourth      Fourth   12 months   12 months
     share)                      quarter     quarter      period      period
    -------------------------------------------------------------------------
                                    2007        2006        2007        2006
    -------------------------------------------------------------------------
                                       $           $           $           $
    Operating results

    Revenues                       3,303       1,809      15,184      12,170
    Earnings (loss) before
     depreciation, amortization,
     financial expenses,
     stock-based compensation
     costs and income taxes          350        (524)      2,461         523
    Net earnings (net loss)           (2)       (644)        400        (957)
    Basic and diluted net
     earnings (net loss) per
     share                         0.000      (0.015)      0.009      (0.024)
    -------------------------------------------------------------------------

    Financial position

    Total assets                                          16,250      16,442
    Working capital                                        2,186       2,203
    Total debt, net of cash                                5,291       6,055
    Total liability                                        7,062       7,793
    Shareholders' equity                                   9,188       8,649
    Shareholders' equity per share                          0.20        0.19
    -------------------------------------------------------------------------

    Number of shares outstanding                      45,799,429  45,799,429
    -------------------------------------------------------------------------

    Mr. Michel Gaudreau, President & CEO, is proud to announce to Novik
shareholders the company's exemplary 2007 financial results. Mr. Gaudreau
states that "the results represent a success that we have worked very hard to
achieve. Novik is a competitive, growth oriented and profitable company,
competing on a North American and international level. Sales have grown by 25%
and margins have increased to 39%, all remarkable results despite the Canadian
dollar appreciation and slowdown in the US economy. We have a solid strategic
plan in place that should allow Novik to continue to reach increased sales and
earnings".

    REVENUES

    During fiscal 2007, the company recorded revenues of $15.2M versus $12.2M
for 2006. This 25% growth is directly related to Novik's marketing successes
on the European and Canadian fronts.
    Novik managed to increase its sales despite the downturn in the American
real estate market and an average increase of 6% in the Canadian currency.
This was done through penetration of the European market, increased
penetration in the Canadian market and introduction of new leading edge
roofing products.
    Novik made a concerted effort to diversify itself within international
markets, particularly Europe. This was made possible with the strength of our
distributors and newly designed exterior sidings.
    Solid growth in the Canadian market was achieved through stronger
representation of Novik products through our distribution and installer
network. Through our sales force efforts there is greater recognition of Novik
products on the Canadian market and we will continue these efforts to further
grow.
    The introduction of our new slate and clay roofing products also
contributed $750,000 to our overall sales. These products are unique in the
market and we expect these products to continue to significantly add to our
revenue base in the future.
    Revenues for 4th quarter 2007 were $3.3 versus $1.8M in 4th quarter 2006,
an increase of over 80%. This is the third consecutive quarter of significant
growth in sales. Again this is due to the marketing successes in the Canadian
and European markets and introduction of new products.

    EARNINGS BEFORE DEPRECIATION, AMORTIZATION, FINANCIAL EXPENSES, STOCK-
    BASED COMPENSATION COSTS AND TAXES ("EBITDA adjusted")

    EBITDA adjusted is a measure that has no standardized meaning prescribed
by Canadian generally accepted accounting principles. It is therefore
considered to be a non-GAAP measure in Canada. Accordingly, this measure may
not be comparable to similar measures presented by other issuers. This measure
is presented and described in this MD&A in order to provide shareholders and
potential investors with additional information regarding the company's
liquidity and ability to generate funds to finance its activities.
    For the fiscal year ended December 31, 2007, EBITDA adjusted amounted to
$2.5M compared with $0.5M for the previous fiscal year. This strong rise is
due to increased sales and improved gross margins. Four factors were mainly
responsible:

    - The gradual implementation in 2007 of two raw material cost reduction
      projects created significant annual and ongoing savings;
    - Elimination of redundant positions and reduction of operational costs
      further contributed to annual and ongoing savings;
    - As sales volume increases the portion of our fixed costs, currently
      included in our inventory costs (more than 30%) is spread over more
      product further resulting in increased gross earnings;
    - Introduction of our new replica slate and clay roof covering products
      which are unique on the world-wide market allowed for excellent gross
      margins.

    Novik is, therefore, well positioned to continue to aim for a gross margin
in excess of 40% during the coming years despite the pressure generated by the
increased costs of raw materials and the appreciation of the Canadian dollar
in relation to the US dollar.
    Novik has demonstrated its ability to generate enough cash assets to meet
its growth objectives and the expectations of its financial partners.
    

    NET EARNINGS

    The company's net earnings for fiscal year 2007 amounted to $400,000
compared with a net loss of $957,000 for the previous fiscal year. This
profitability in 2007, preceded by two fiscal years at a loss, is directly
linked to increased sales and reduced operating costs.

    OUTLOOK

    Novik's largest distributors and strategic partners have given Novik
their vote of confidence for the future. They expect continued growth with the
current product line and have increased expectations as new and improved Novik
products are introduced. Our new strategic alliance, which involves providing
a white label product for a large American manufacturer with a solid
distribution market in the USA, is promoting even faster sales growth. In
addition, increased name and product recognition in Canada and the USA are
further growth factors. Novik has also strategically positioned itself to grow
internationally through alliances with strong distributors. Solid growth has
continued on a world-wide basis.
    Novik is positioned to achieve its forecasted 2008 financial objectives.
Already the indications are that first quarter of fiscal 2008 is substantially
better than the first quarter 2007 and above its 2008 forecast figures. Novik
is looking to a very positive and strong financial and sales growth in 2008.

    About NOVIK

    Novik (NVK) is a leader in the design, manufacturer and distribution of
innovative polymer exterior siding and roofing coverings that replace
traditional materials such as stone, brick or wood shingles. These products
target the world-wide residential and commercial construction industry.

    Forward-looking statements contained in this press release involve known
and unknown risks, uncertainties or other factors that may cause actual
results, performance or achievements of the company to be materially different
from any future results, performance or achievements expressed or implied by
such forward-looking statements.
    %SEDAR: 00022807EF




For further information:

For further information: Michel Gaudreau, President, (418) 878-6161,
micgau@novik.com; Pascal Bouthot, Vice-President, Finances, (418) 878-6161,
pasbou@novik.com; Source: Novik inc.

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