Cryopak Announces Third Quarter 2004 Results, Strengthens Board of Directors, and Engages Investor Relations Advisors.Business Editors VANCOUVER Vancouver, city, Canada Vancouver, city (1991 pop. 471,844), SW British Columbia, Canada, on Burrard Inlet of the Strait of Georgia, opposite Vancouver Island and just N of the Wash. border. , British Columbia--(BUSINESS WIRE)--Feb. 24, 2004 Cryopak Industries Inc. (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension VENTURE:CII CII Confederation of Indian Industry CII Chartered Insurance Institute (UK) CII Construction Industry Institute (University of Texas) CII Council of Institutional Investors ) (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :CYPKF) today reported its results for the third quarter ended December December: see month. 31, 2003. Operating Results The net loss for the quarter ended December 31, 2003 was $0.5 million as compared to a net loss of $1.4 million for the quarter ended September 30, 2003. Sales for the quarter were $3.4 million, as compared to sales of $3.5 million for the quarter ended September 30, 2003. Gross profit for the quarter increased to $1.2 million from $1.0 million in the previous quarter. Sales and marketing expenses for the quarter totalled $0.5 million or 16% of sales as compared with $1.1 million or 31% of sales for the quarter ended September 30, 2003. The decrease in sales and marketing expense from the previous quarter was due to the significant cost-reduction activities initiated during the second quarter. General and administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. for the quarter totalled $0.6 million or 16% of sales as compared to $0.8 million or 23% of sales for the quarter ended September 30, 2003. The decrease in general and administrative expense is primarily due to the reduction in personnel during the period. Other income and expense for the period included a non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. of $125,000 for the issuance of shares to settle a legal dispute. "We are pleased to see the impact of our restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). initiatives on our reported results and we remain cautiously optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about the future growth potential of our business. The management team and all of our employees have worked extremely hard during what has been a difficult time for us and it is encouraging to see the positive results of our cost-cutting efforts," stated Mr. Carsky, Cryopak's new President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . Additions to Board of Directors Cryopak is pleased to announce the addition of Mr. Martin Carsky, the President and CEO, and Mr. Hugh Richardson Hugh Richardson may be:
TNT in full trinitrotoluene Pale yellow, solid organic compound made by adding nitrate (−NO2) groups to toluene. Transport Group and Canada Steamship steamship, watercraft propelled by a steam engine or a steam turbine. Early Steam-powered Ships Marquis Claude de Jouffroy d'Abbans is generally credited with the first experimentally successful application of steam power to navigation; in 1783 his Lines. "We want to congratulate Mr. Carsky on his leadership and the results he has attained at·tain v. at·tained, at·tain·ing, at·tains v.tr. 1. To gain as an objective; achieve: attain a diploma by hard work. 2. during his short tenure with Cryopak," said Mr. McEwen, Chairman of the Board, "and we look forward to the contribution that Mr. Richardson can make to our organization. With his logistics background, he should prove to be an invaluable resource to assist us in growing the pharmaceutical packaging and cold-chain logistics segments of our business." Engagement of Ascenta Capital as Investor Relations Investor relations The process by which the corporation communicates with its investors. Advisors Cryopak is pleased to announce that, effective immediately, it has retained Ascenta Capital Partners Inc. to provide investor relations and financial communications services. "Raising awareness Raising awareness is a common phrase advocacy groups use to justify a particular event, brochure or even the entire organization. Raising awareness refers to alerting the general public that a certain issue exists and should be approached the way the group desires. within the investor and financial communities is an important aspect of Cryopak's strategic business plan and we believe the time is right to invest in the professionals at Ascenta to assist us with our communication activities," said Martin Carsky, President and CEO of Cryopak. Ascenta is a Canadian investor relations consulting firm Noun 1. consulting firm - a firm of experts providing professional advice to an organization for a fee consulting company business firm, firm, house - the members of a business organization that owns or operates one or more establishments; "he worked for a providing strategic counsel, investor relations planning, investor and media outreach Outreach is an effort by an organization or group to connect its ideas or practices to the efforts of other organizations, groups, specific audiences or the general public. , and corporate communications Corporate communications is the process of facilitating information and knowledge exchanges with internal and key external groups and individuals that have a direct relationship with an enterprise. services to public companies. In consideration of the services to be provided, Cryopak has agreed to pay Ascenta a monthly retainer A contract between attorney and client specifying the nature of the services to be rendered and the cost of the services. Retainer also denotes the fee that the client pays when employing an attorney to act on her behalf. of $5,000 for an initial 12-month term. Additionally, Ascenta has been granted a stock option to purchase 250,000 shares of Cryopak at $0.25 vesting Vesting The process by which employees accrue non-forfeitable rights over employer contributions that are made to the employee's qualified retirement plan account. Notes: in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with TSX Venture Exchange TSX Venture Exchange Originally called the Canadian Venture Exchange (CDNX), this was a result of the merger of the Vancouver and Alberta stock exchanges. The goal of TSX Venture Exchange is to provide venture companies with effective access to capital while protecting investors. guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. and per the service agreement term. Convertible Loan Agreement On October 31, 2003, Cryopak announced that it had commenced an offer to the holders of the $3.6 million Convertible Loan Agreement ("CLA CLA, n.pr See acid, conjugated linoleic. ") to amend and restate re·state tr.v. re·stat·ed, re·stat·ing, re·states To state again or in a new form. See Synonyms at repeat. re·state the CLA, and that an agreement had been reached with ICSOS S.A. of Geneva Geneva, canton and city, Switzerland Geneva (jənē`və), Fr. Genève, canton (1990 pop. 373,019), 109 sq mi (282 sq km), SW Switzerland, surrounding the southwest tip of the Lake of Geneva. , Switzerland to the proposed amendments. ICSOS was the party of record under the original CLA and represents parties holding approximately a 40% interest in the total CLA. The offer is being made to the remaining holders with an interest in the CLA on the same terms. The terms of the amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. CLA will be substantially the same as those of the existing CLA, except that the principal amount of the CLA will be increased to reflect accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. but unpaid interest, the conversion price will be reduced to $0.80 in the first year and $1.25 in the second year, and the maturity date will be extended. Completion of the amendment is subject to regulatory and other approvals and is conditional upon a minimum overall acceptance of the amended terms by holders representing not less than 80% of the outstanding dollar amount of the CLA. The offer was due to expire expire /ex·pire/ (ek-spi´er) 1. to exhale. 2. to die. ex·pire v. 1. To breathe one's last breath; die. 2. To exhale. on November 21, 2003, but has been extended as Cryopak attempts to negotiate a resolution to this matter with parties representing the interests of the other investors. New time-based formula for old escrow escrow Instrument, such as a deed, money, or property, that constitutes evidence of obligations between two or more parties and is held by a third party. It is delivered by the third party only upon fulfillment of some condition. shares Finally, Cryopak also announced today that the TSX Venture Exchange has approved a time-based formula for the release of 350,000 escrow shares, which were issued in 1986. Shareholder approval was granted at Cryopak's 2001 annual general meeting, in conjunction with the approval of the same formula for the issuance of certain earn-out Earn-out Refers to an additional payment in a merger or acquisition that is not part of the original acquisition cost, which is based on the acquired company's future earnings relative to a level determined by the merger agreement. shares described in the Company's news release dated August 27, 2002. Pursuant to the time based formula, 10% of the escrow shares will be issued 60 days following this news release and 7.5% of the balance will be issued every six months over a total of 6 years, commencing February 25, 2004.
CRYOPAK INDUSTRIES INC.
Consolidated Balance Sheets
(Unaudited)
(Expressed in Canadian dollars)
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December 31, March 31,
2003 2003
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(Unaudited)
Assets
Current Assets:
Short-term investments $ 6,133 $ 6,133
Accounts receivable 2,046,105 3,999,698
Advances to related company 64,708 88,590
Inventory 1,489,278 2,164,001
Prepaid expenses 127,846 281,147
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3,734,069 6,539,569
Property, plant and equipment 1,652,293 1,846,592
Long-term deposits 112,285 112,285
Intangibles and other assets 1,194,176 1,501,981
Goodwill 5,953,268 5,953,268
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$ 12,646,090 $ 15,953,695
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Liabilities and Shareholders' Equity
Current liabilities
Bank indebtedness $ 1,424,853 $ 2,621,928
Accounts payable and accrued
liabilities 2,438,697 3,658,897
Deferred revenues 131,439 123,408
Current portion of notes payable
to related parties 166,667 166,667
Current portion of obligations
under capital lease 260,915 210,424
Current portion of convertible
loan 3,637,500 3,610,180
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8,060,070 10,391,504
Note payable to related parties 166,667 333,333
Obligations under capital lease 385,876 366,204
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8,612,613 11,091,041
Shareholders' equity:
Share capital 9,455,273 7,736,061
Convertible loan - 373,735
Warrants 225,610 225,610
Share purchase loan (394,000) (394,000)
Contributed surplus 670,115 296,379
Deficit (5,923,521) (3,375,131)
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4,033,477 4,862,654
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$ 12,646,090 $ 15,953,695
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CRYOPAK INDUSTRIES INC.
Consolidated Statements of Operations and Deficit
(Unaudited)
(Expressed in Canadian dollars)
Three and nine months ended December 31, 2003 and 2002
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Three months ended Nine months ended
December 31, December 31,
--------------------------------------------------
2003 2002 2003 2002
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Sales $ 3,421,324 $ 3,780,072 $13,061,749 $ 9,186,964
Cost of Sales
(Schedule 1) 2,203,627 2,345,450 8,625,672 5,154,453
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Gross Profit 1,217,697 1,434,622 4,436,077 4,032,511
Expenses:
Sales and
marketing
(Schedule 2) 545,800 761,437 2,732,508 1,855,514
Administration
(Schedule 2) 558,964 569,859 2,275,974 1,682,154
Amortization 269,747 190,482 795,344 342,542
Interest on bank
operating line 29,393 37,155 135,906 61,494
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1,403,904 1,558,933 5,939,733 3,941,704
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Earnings (loss)
from operations (186,207) (124,311) (1,503,656) 90,807
Other earnings
(expenses):
Other
income/(expenses) (217,797) 4,762 (512,680) 39,913
Interest on
long-term debt
and financing
costs (133,804) (205,492) (532,051) (582,222)
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Net income/(loss)
for the period (537,808) (325,041) (2,548,388) (451,502)
(Deficit),
beginning of
period (5,385,713) (574,500) (3,375,133) (448,039)
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(Deficit), end of
period (5,923,521) (899,541) (5,923,521) (899,541)
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Earnings/(loss)
per common share
(note 4):
Basic $ (0.02) $ (0.01) $ (0.08) $ (0.02)
Diluted $ (0.02) $ (0.01) $ (0.08) $ (0.02)
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CRYOPAK INDUSTRIES INC.
Consolidated Statements of Cash Flows
(Unaudited)
(Expressed in Canadian dollars)
Three and nine months ended December 31, 2003 and 2002
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Three months ended Nine months ended
December 31, December 31,
--------------------------------------------------
2003 2002 2003 2002
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Cash provided by
(used) in:
Operations $ (537,808) $ (325,041) $(2,548,388) $ (451,502)
Net loss for the
period
Items not
involving cash:
Amortization 269,747 190,482 795,344 342,542
Accretion of
convertible loan - 35,921 27,320 106,683
Stock-based
compensation - 19,162 - 57,666
Write-off
deferred
financing - - 67,127 -
Loss on disposal
of property,
Plant and
equipment - 16,462 5,472 21,683
Share issue
settlement 125,000 - 125,000 -
Changes in
non-cash
operating working
capital:
Accounts
receivable (64,154) (94,304) 1,953,593 (581,453)
Advances to
related company 6,576 19,081 23,882 52,411
Prepaid expenses 710 (48,622) 153,301 (180,300)
Inventory (10,955) (33,786) 674,723 (763,370)
Deferred revenues 14,073 (2,993) 8,031 144,836
Accounts payable
and accrued
liabilities (1,288,078) 126,009 (1,220,200) 224,547
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(1,484,889) (97,629) 65,205 (1,026,257)
Investments:
Acquisition of
property, plant
and equipment (25,001) (48,799) (113,003) (253,958)
Acquisition of
subsidiaries (5,233,796) (5,233,796)
Term deposits -
restricted - 4,157,343 - 132,000
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(25,001) (1,125,252) (113,003) (5,355,754)
Financing:
Change in bank
indebtedness 646,368 1,608,673 (1,197,075) 1,832,531
Issuance of
shares for cash 1,654,179 63,348 1,654,179 6,088,847
Issuance/(Repayment)
of notes payable (666,667) 193,000 (166,667) (267,462)
Share issue costs (59,968) - (59,968) (532,483)
Repayment of
capital lease
obligations (64,022) (44,779) (182,671) (134,338)
Repayment of term
loan (636,167) (636,167)
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1,509,890 1,184,075 47,798 6,350,928
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Increase
(decrease) in
cash and cash
equivalents - (38,806) - (31,083)
Cash and cash
equivalents,
beginning of
period - 50,338 - 42,615
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Cash and cash
equivalents, end
of period $ - $ 11,532 $ - $ 11,532
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About Cryopak Cryopak Industries Inc., with facilities in Vancouver and Montreal, is Canada's leading provider of temperature-controlling products and solutions. Cryopak develops, manufactures and markets quality temperature controlling products such as the patented Cryopak Flexible Ice(TM) Blanket, hard bottles, flexible hot and cold compresses cold compress Orthopedics CCs are usually applied intermittently to acutely injured muscle, joints or bone, up to 48 hrs after the initial trauma , gel packs and instant hot and cold packs. With more than 10 years of experience in research and development, Cryopak also offers testing and consulting services Noun 1. consulting service - service provided by a professional advisor (e.g., a lawyer or doctor or CPA etc.) service - work done by one person or group that benefits another; "budget separately for goods and services" to help companies optimize optimize - optimisation their cold chain management programs. For more information about Cryopak's products and solutions, visit the Company's website at www.cryopak.com or call 800-667-2532. ON BEHALF OF THE BOARD OF DIRECTORS Martin Carsky, President and CEO Certain statements contained herein are "forward-looking" statements (as such term is defined in the Private Securities Reform Act of 1995). Because such statements include risks and uncertainties, actual results may differ from those expressed or implied by such forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. |
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