Revenue Increases 74%
EDMONTON, Aug. 27 /CNW/ - Raydan Manufacturing Inc. (the "Company")
(TSX-V: RDN) reported financial results for the fiscal year 2007 ended April
Annual revenue increased 74% to $23,146,784 with a net profit of $220,561
compared to revenue of $13,300,900 and a net loss of $110,462 for the same
period one year ago. The product mix was steady with manufactured products
accounting for 54% of total sales and parts and service contributing 46% of
For the year ended January 31, 2007 working capital remained strong at
$2.5 million compared to $1.9 million at the end of fiscal 2006. Operating
cash flow from operations was a positive $74,435 compared to a negative
$(3,431,738) for 2006.
Fiscal year ended April 30 2007 2006
Revenue $ 23,146,784 $ 13,300,900
Gross Profit $ 4,497,567 $ 2,035,580
Net Income $ 220,561 $ (110,462)
EPS (basic) $ 0.014 $ (0.007)
Shares outstanding (basic) 16,052,960 15,316,465
Raydan's Alberta operations grew by 19% with contributions from both the
manufacturing and parts and service divisions. The Raydan name and reputation
is the catalyst behind the revenue increase from the manufacturing division in
2007. A strong Alberta economy has also helped parts and service increase its
overall revenue. As Raydan gains greater recognition for the quality of its
product and services by the original equipment manufacturers and the military
sectors revenue will continue to grow.
The Company's Ontario division represented 33% of the annual revenue with
contributions from both Sturdy Truck Body and Delta Springs. Both Delta and
Sturdy are operating at 100% capacity. Future plans include acquiring a larger
facility to integrate both locations, as well as commencing chassis
modification to increase revenue and improve profitability. With a recent
granting from Transport Canada for approval of chassis modification, it is a
priority to commence work in this area. As well, management will continue to
focus on improving synergies between the west and the east.
Subsequent to the year end ArvinMeritor commenced production of the
AirLink suspension. Although it is still too early to get an exact feel of the
impact, any additional amount will be significant for international brand
recognition and new business opportunities.
"Now that we have achieved a national presence we are experiencing
tremendous growth opportunities like the GM ship-thru agreement," stated Ray
English, President and CEO of Raydan Manufacturing. "We will be examining more
of these opportunities in the year ahead and choosing the ones that fit our
ultimate goal of growth and profitability."
About Raydan Manufacturing
Raydan Manufacturing Inc. based in Edmonton, Alberta develops and
produces specialized suspension and coupling systems for trucks, trailers and
heavy equipment, as well as a chassis modifications center and a military
service facility. Established in 1992, Raydan exports its innovative,
high-quality products to end-users and original equipment manufacturers (OEMs)
in the heavy-duty truck, crane, fire/rescue and other severe use sectors
around the world.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
This news release contains forward-looking statements that involve risks
and uncertainties, which may cause actual results to differ materially from
the statements made. Potentially, many factors could cause our actual results
to vary materially from those described herein as intended, planned,
anticipated or expected. Raydan Manufacturing Inc. does not intend and does
not assume any obligation to update these forward-looking statements.
For further information:
For further information: Raydan Manufacturing Inc., Joan Richardson,
Tel: (780) 955-2859, Toll Free: 1-888-472-9326, firstname.lastname@example.org,
www.raydanmfg.com; Business Development, John Lewis, Linear Capital Corp.,
(416) 364-2266, email@example.com, www.linearcapital.com