Imaflex Inc. announces results for the third quarter ended September 30, 2009
TICKER SYMBOL: IFX.A
MONTREAL, Nov. 12 /CNW Telbec/ - Imaflex Inc. (the "Company") (TSX Venture Exchange - IFX.A) announces results for the third quarter ended September 30, 2009.
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(unaudited)
Q3 2009 Q3 2008
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(CDN $ thousands, Q3 2009 Q3 2008 YTD YTD
except per share amounts) ------- ------- --- ---
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Sales 11,914 13,976 38,109 40,104
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Cost of sales 10,304 12,306 31,604 34,643
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Gross profit ($) (before
amortization) 1,610 1,670 6,505 5,461
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Gross profit (%)(before
amortization) 13.5% 11.9% 17.1% 13.6%
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Amortization of production
equipment 708 778 2,158 2,283
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Gross Profit 902 892 4,347 3,178
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Gross profit (%) 7.6% 6.4% 11.4% 7.9%
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Expenses 1,231 1,388 3,254 4,036
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FX loss (gain) 255 207 502 344
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Income (loss) before income taxes (584) (703) 591 (1,202)
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Provision for income taxes (116) (117) 336 141
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Net income (loss) (468) (586) 255 (1,343)
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Basic and diluted earnings per
share (0.012) (0.016) 0.006 (0.036)
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EBITDA 327 388 3,322 1,987
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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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Three months ended
For the three months ended September 30, 2009, consolidated net loss improved by $118,000 to a net loss of ($468,000) compared with a net loss of ($586,000) for the same period in 2008
Nine months ended
For the nine months ended September 30, 2009, consolidated net income improved by $1,598,000 to a net income of $255,000 compared with a net loss of ($ 1,343,000) for the same period in 2008.
Sales
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Three months ended
For the three month period ending September 30, 2009 the decrease in sales of $ 2,062,000 or 14.8% was primarily due to a decreased demand for our Canslit subsidiary, as compared to the same period in 2008.
Nine months ended
The sales for the nine month period ending September 30, 2009 decreased primarily as a result of the decrease in sales during the third quarter as explained above.
Gross profit margin
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Three months ended
The gross profit for the three month period ended September 30, 2009 remained relatively stable when compared to the third quarter of 2008.
Nine months ended
The gross profit for the nine month period ended September 30, 2009 improved by $ 1,169,000 due primarily to better product mix and procurement of lower priced raw materials during the first and second quarter of 2009.
Income taxes
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The income tax provision reflects the taxes on the income generated by the Company's Canadian operations. No income tax expense has been recorded on Imaflex USA's operating income due to the loss carry forward.
Outlook
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The third quarter results once again showed some of the improvement that management had anticipated. Though not stellar performance by any means, management is confident that its initiatives, coupled with the timely fourth quarter sales that it envisions at its US facility, will create the conditions of profitability that it envisioned in its year end review.
Achieving these results has been a long and arduous process in an economy that is as difficult as it gets, however management's perseverance in implementing its plans of cost saving initiatives that are now taking root, lead it to believe that the worst is over, and that we will, as was concluded in our second quarter outlook, be in a position to consider new investments in 2010.
Safe Harbor Statement
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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
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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, non-controlling interest, 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.
For further information: Imaflex Inc.: Joseph Abbandonato, President and C.E.O; Robert Nagy, CMA, CIA - Corporate Controller, (514) 935-5710, Fax: (514) 935-0264, [email protected]; www.imaflex.com
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