QUEBEC CITY, Oct. 7 /CNW Telbec/ - Novik anticipates that its third
quarter level of sales will be a record. Sales for the third quarter of 2008
should exceed $7 million, an increase in excess of 40% when compared to the
same period last year. Novik's current record for any Q3 was in 2007. This
anticipated increase in sales would make for the sixth consecutive quarter of
increased sales when compared for the previous year for Novik.
Mr. Gaudreau, President and CEO, states: "The positive results
anticipated demonstrate the potential of our siding and roofing products
despite the downturn in the industry in the North American market. Our success
in international markets continues to be a major factor in our current growth.
Since the beginning of 2008, we have signed major contracts with distributors
in various countries and we expect to continue to open up new markets between
now and the end of the year, as well as next year. Sales trips to Europe,
Africa and Asia are planned for this autumn to meet with potential partners
who have expressed interest in our products. Another major factor in our
current success is undoubtedly the introduction of new exclusive products like
our new cedar shake siding as well as polymer roofing with the look of slate
or clay. Our current and future products aim to offer the market the best
combination of quality and value to meet consumer demand."
Mr. Gaudreau adds: "The slowdown in the North American construction
sector and the strength of the Canadian dollar have not had any negative
consequences on Novik. We continue to focus a lot of our sales efforts on the
North American market and we are currently in discussions with new American
distributors interested in offering their customers innovative products. Our
product line specializing in complete home exteriors (siding, roofing and
accessories) that are easy to install, maintenance-free, high quality and very
aesthetic, help Novik stand out among competing products. These
characteristics of our products should put Novik in an advantageous position
to stand out on the North American and global markets during the next several
Mr. Gaudreau ends by emphasizing, "These anticipated sales support our
2008 forecast concerning sales growth of more than 40%, as compared to
$15.2 million in 2007. We expect 2008 to be our best year in terms of
profitability and sales growth, thanks to our expansion of sales into
international markets and introduction of our new products. We are already
planning 2009, in which one of our objectives will be to continue our growth.
We believe we have the potential to do so, with our current discussions with
American and international distributors."
Two Novik shareholders aim to exercise their warrants
Fonds d'investissement Actions-Croissance PME Inc. and Fonds COTE 100
Actions-Croissance PME aim to exercise their warrants in October 2008. These
warrants were issued during a private placement finalized in November 2006.
2,671,429 shares will be issued to these two shareholders in return for a
price of $0.45 per share, for a total of nearly $1.2 million. This sum will be
used to finance our marketing efforts on the North American and international
markets as well as to develop new products with the goal of further
differentiating the company in home or building exteriors.
Novik (NVK) is a leader in the manufacture and marketing of exterior
siding and innovative roofing made out of polymers, which replace traditional
materials such as stone, brick and wood shake at a more affordable price.
Novik's target market is the residential and commercial construction industry.
The forward-looking statements contained in this press release involve
known and unknown risks, uncertainty and other factors that could cause the
Company's actual results, performance and accomplishments to differ greatly
from the future results, performance or accomplishments expressed or implied
in these forward-looking statements.
For further information:
For further information: Michel Gaudreau, President, (418) 878-6161,
firstname.lastname@example.org; Pascal Bouthot, Vice President for Finance, (418) 878-6161,
email@example.com; Source: Novik Inc.