Ranaz reports its results for the third quarter of 2009


    
    - Decrease of the net loss of $178,918 as compared to the third quarter
      of 2008 and $1,952,445 as compared to the nine-month period ended
      September 30, 2008
    - Decrease of the adjusted operating loss of 32.0% as compared to the
      third quarter of 2008 and 74.3% as compared to the nine-month period
      ended September 30, 2008
    - Closing of a private placement of 10,384,614 units for a cash
      consideration of $675,000
    - Exercise of 2,460,129 warrants for a cash consideration of $332,117.
    
</pre>
<p/>
<p><location>MONTREAL</location>, <chron>Nov. 27</chron> /CNW Telbec/ - Ranaz Corporation ("Ranaz") (TSX-V: RNZ), a company specializing in the manufacturing and marketing of protein and dietary supplements, reported its results today for the third quarter ended <chron>September 30, 2009</chron>.</p>
<p>Sales for the third quarter of 2009 totalled $4.6 millions as compared to $4.9 millions in the same quarter of 2008. Sales for the first nine months of 2009 totalled <money>$14.6 million</money>, down of <money>$1.3 million</money> or 8.2% as compared to the same period for 2008. The sales for Protidiet increased compared to the same quarter of 2008 due to the higher demand for our products in <location>United States</location>. The sales for ProtiLife increased, compared to the same quarter of 2008. The sales for BarTech decreased since the stopping of the production in mid February for the transfer of our activities at the St-Eustache plant and a delay to reach the complete productivity level since the resumption of the production.</p>
<p>Gross profit totalled <money>$1.0 million</money> for the three-month period ended <chron>September 30, 2009</chron> as compared to <money>$0.8 million</money> for the same quarter of 2008, and represented 22.3% and 16.6% of sales respectively for these quarters. For the nine-month period ended <chron>September 30, 2009</chron>, gross profit was $3.9 millions or 26.4% of sales compared to $4.0 millions or 25.2% of sales for the same period in 2008.</p>
<p>"I'm proud of the decrease of Ranaz's net loss of <money>$1,952,445</money> as compared to 2008 after 9 months. It just highlights our effort to continue to make progress toward profitability." said Jean Bourassa-Marineau, President and founder of Ranaz."</p>
<p>The Company incurred a net loss of <money>$699,820</money> or <money>$0.014</money> per share in the third quarter, compared to a net loss of <money>$878,738</money> or <money>$0.023</money> per share last year, representing a diminution of 20.4%. The lower loss was mainly attributable to the drop of selling and administrative expenses of 8.8%.</p>
<p/>
<p>Consolidated cash-flow</p>
<p/>
<p>Cash flow use from operating activities totalled <money>$861,783</money> for the third quarter ended <chron>September 30, 2009</chron> and a use of <money>$1,670,400</money> for the first nine months of 2009, compared to <money>$997,952</money> and <money>$3,349,964</money> used in the corresponding three and nine-month periods in 2008.</p>
<p>Changes in non-cash from working capital items were <money>$363,607</money> in the third quarter of 2009 and <money>$281,790</money> used in the same quarter of 2008. These changes consisted mainly of decreases in accounts receivable, inventories and prepaid expenses, offset by decreases in accounts payable and accrued liabilities. The decrease of account receivable is related to further collection effort and the decrease of inventories is due to a better management of the inventory level both in the objective of an increased of cash flows.</p>
<p/>
<p>Outlook</p>
<p/>
<p>"As mentioned in the outlook section of the press release announcing the results of our last quarter, it was our priority to achieve an increase of our liquidities, which we achieved with our private placement. Following the private placement, we were able to use this cash to reduce our accounts payable and accrued liabilities." added Mr. Bourassa-Marineau.</p>
<p/>
<p>About Ranaz Corporation</p>
<p/>
<p>Ranaz is a corporation specializing in the manufacture and marketing of protein and dietary supplements. Its mission is to design, develop and market nutritional, protein and dietary supplements under its own corporate brands and concepts, such as Protidiet and ProtiLife, as well as under private labels.</p>
<p>Full information, including the management discussion and analysis and the financial statements and notes thereto, is available on SEDAR, at <a href="http://www.sedar.com">www.sedar.com</a>.</p>
<p/>
<pre>
    
    Neither TSX Venture Exchange nor its Regulation Services Provider (as
    that term is defined in the policies of the TSX Venture Exchange) accepts
    responsibility for the adequacy or accuracy of this release.
    

For further information: For further information: Sylvain Picard, CMA, Financial Chief Officer, Ranaz Corporation, (450) 491-7106, poste 264, s.picard@ranazcorporation.com; Jean Bourassa Marineau, President, Ranaz Corporation, (450) 491-7106, poste 217

Organization Profile

Ranaz Corporation

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890