Cryopak Releases FY2003 Results and Restatement of FY2003 Quarterly Results.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)--July 3, 2003 Cryopak Industries Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :CYPKF)(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 ) today reported its results for its year ended March 31, 2003. Revenue for the fiscal year ended March 31, 2003 was $14.2 million, a 68% increase over the $8.5 million reported in the previous fiscal year. The increase in revenue over the prior period was due to the Company's acquisition of Ice-Pak Ltd. in October October: see month. 2002 and the ongoing growth in the sale of the Company's existing products. The net loss for the period was ($2.4) million as compared to a net loss of ($0.3) million for the previous fiscal period. The loss for the period was due to a reduction in gross margin and increased operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. . A significant proportion of the Company's sales are denominated in US funds and as a result, the Company's gross margin was negatively impacted by the strengthening Canadian dollar Noun 1. Canadian dollar - the basic unit of money in Canada; "the Canadian dollar has the image of loon on one side of the coin" loonie dollar - the basic monetary unit in many countries; equal to 100 cents relative to the US dollar. As well, the Company incurred increased transportation costs during the year due in part to increases in petroleum costs. The net loss was further compounded by disproportionate dis·pro·por·tion·ate adj. Out of proportion, as in size, shape, or amount. dis  pro·por increases in sales and marketing
and administration expenditures. The higher sales and marketing and
administrative expenses were in part attributed to the Company's
pursuit of the pharmaceutical packaging segment of the market and the
integration of Ice-Pak Ltd. into its operations.As a result of a detailed review, the Company will 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 its previously reported results for each of the quarterly periods for the fiscal year ended March 31, 2003. This restatement Restatement A revision in a company's earlier financial statements. Notes: The need for restating financial figures can result from fraud, misrepresentation, or a simple clerical error. will disclose net earnings of $0.2 million in the first quarterly period and a loss of ($0.3) million and ($0.3) million in the second and third quarterly periods, respectively. These restated figures result from accounting adjustments recorded by the Company which include (i) recognizing sales revenue at the time of product delivery, (ii) recording of stock compensation expense for non-employees which had not previously been recorded, (iii) improving the accuracy of recording inventory, prepaid expenses Prepaid Expense An asset that arises on a balance sheet because of the payment of something in advance (prepayment). Services for the payment will be received in the near future. and 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. liability amounts, (iv) reclassifying the Company's outstanding Convertible Loan Agreement amount from long term liabilities to current liabilities Current Liabilities Usually appearing on a company's balance sheet, it represents the amount owed for interest, accounts payable, short-term loans, expenses incurred but unpaid, and other debts due within one year. , and (v) finalizing the purchase price allocation The apportionment or designation of an item for a specific purpose or to a particular place. In the law of trusts, the allocation of cash dividends earned by a stock that makes up the principal of a trust for a beneficiary usually means that the dividends will be treated as for the acquisition of Ice-Pak Ltd. The Company will be filing the restated quarterly financial statements and accompanying ac·com·pa·ny v. ac·com·pa·nied, ac·com·pa·ny·ing, ac·com·pa·nies v.tr. 1. To be or go with as a companion. 2. notes shortly with the applicable regulatory authorities Noun 1. regulatory authority - a governmental agency that regulates businesses in the public interest regulatory agency administrative body, administrative unit - a unit with administrative responsibilities . The principal and accrued interest Accrued Interest The interest that has accumulated on a bond since the last interest payment up to but not including the settlement date. There are two methods for calculating accrued interest: 1) 360-day year method, used for corporate and municipal bonds. owing on the matured $3.6 million Convertible Loan Agreement remains outstanding. The Company continues to hold discussions with representatives for the holders of that loan with a view to formalizing an extension of the loan maturity or other resolution. The Company also reported that it continues to experience a challenging market and expects to report a net loss for the recently completed quarterly period. To move forward, the Company announced further management additions. Effective immediately, Mr. Steve v. t. 1. To pack or stow, as cargo in a ship's hold. See Steeve. Belitzky has been appointed ap·point tr.v. ap·point·ed, ap·point·ing, ap·points 1. To select or designate to fill an office or a position: appointed her the chief operating officer of the company. 2. as the interim Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. . Mr. Belitzky is one of the former owners of Ice-Pak Ltd. and brings to Cryopak over 30 years operating experience in the cold chain management field. As previously announced, Mr. Martin Carsky, has been appointed the Company's new Chief Financial Officer. Mr. Carsky is a Chartered Accountant char·tered accountant n. Chiefly British Abbr. CA A member of one of the institutes of accountants granted a royal charter. and brings to the Company extensive capital markets, acquisitions and 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). experience. The Company has also appointed Mr. Chris CHRIS Chemical Hazards Response Information System (US DoD) CHRIS California Historical Resources Information System CHRIS Computerized Human Resources Information System CHRIS Command Human Resources Intelligence System Ebbehoj to the position of Vice President & Corporate Controller, effective July July: see month. 15, 2003. Mr. Ebbehoj is also a Chartered Accountant and has held senior financial positions with various privately held Vancouver-based companies in the past. Both Mr. Belitzky and Mr. Carsky will report to the Company's Chief Executive Officer, Mr. John Morgan John Morgan is a common name, especially in Wales, UK. Well-known people with this name include: Per profession
CRYOPAK INDUSTRIES INC.
Consolidated Balance Sheets
(Expressed in Canadian dollars)
March 31, 2003 and 2002
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2003 2002
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Assets
Current assets:
Cash and cash equivalents $ - $ 42,615
Short-term investments 6,133 132,000
Accounts receivable 3,999,698 1,949,428
Advances to related company 88,590 150,567
Inventory 2,164,001 838,052
Prepaid expenses 281,147 314,667
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6,539,569 3,427,329
Property, plant and equipment 1,846,592 1,082,809
Long-term deposits 112,285 -
Intangible assets 1,501,981 472,463
Goodwill 5,953,268 2,394,450
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$15,953,695 $ 7,377,051
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Liabilities and Shareholders' Equity
Current liabilities:
Bank indebtedness $ 2,621,928 $ 417,797
Accounts payable and accrued
liabilities 3,658,897 1,862,375
Current portion of notes payable to
related parties 166,667 503,129
Current portion of obligations under
capital lease 210,424 180,469
Convertible loan 3,610,180 -
Deferred revenue 123,408 -
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10,391,504 2,963,770
Convertible loan - 3,467,213
Note payable to related parties 333,333 -
Obligations under capital lease 366,204 567,722
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11,091,041 6,998,705
Shareholders' equity:
Share capital 7,736,061 846,650
Convertible loan 373,735 373,735
Share purchase loan (394,000) (394,000)
Warrants 225,610 -
Contributed surplus 296,379 -
Deficit (3,375,131) (448,039)
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4,862,654 378,346
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$15,953,695 $ 7,377,051
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CRYOPAK INDUSTRIES INC.
Consolidated Statements of Operations and Deficit
(Expressed in Canadian dollars)
Years ended March 31, 2003, 2002 and 2001
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2003 2002 2001
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Sales $ 14,198,463 $ 8,452,729 $ 5,322,079
Cost of sales 8,654,341 4,573,482 3,105,311
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Gross profit 5,544,122 3,879,247 2,216,768
Expenses:
Sales and marketing 3,770,747 1,501,687 1,372,557
Administration 2,913,445 1,490,739 1,097,988
Amortization 583,741 338,643 336,005
Interest on bank
operating line 115,674 59,326 34,008
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7,383,607 3,390,395 2,840,558
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Earnings (loss) from
operations (1,839,485) 488,852 (623,790)
Other income/(expense):
Retirement allowance - - (234,667)
Other income 196,529 18,815 74,488
Interest on long-term
debt and other
finance costs (777,886) (781,426) (606,652)
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(581,357) (762,611) (766,831)
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Loss for the year (2,420,842) (273,759) (1,390,621)
Deficit, beginning of year (448,039) (11,653,593) (10,199,372)
Dividend paid on class A
preferred shares - - (63,600)
Cash Settlement of
Contingent Shares (506,250) - -
Allocation of deficit to
reduce share capital - 11,479,313 -
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Deficit, end of year $ (3,375,131) $ (448,039) $(11,653,593)
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Loss per share $ (0.08) $ (0.01) $ (0.07)
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See accompanying notes to consolidated financial statements.
CRYOPAK INDUSTRIES INC.
Consolidated Statements of Cash Flows
(Expressed in Canadian dollars)
Years ended March 31, 2003, 2002 and 2001
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2003 2002 2001
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Cash provided by (used
in):
Operations:
Loss for the year $ (2,420,842) $ (273,759) $ (1,390,621)
Items not involving cash:
Amortization 739,126 446,051 407,539
Accretion of convertible
loan 142,967 137,307 107,668
Bonus shares - 50,000 -
Stock-based compensation 296,379 - -
Write-off of capital
assets 21,678 - -
Changes in non-cash
operating working capital:
Accounts receivable (928,896) (424,610) (170,566)
Advances to related
company 61,977 3,525 39,564
Prepaid expenses 86,421 (278,440) (1,845)
Inventory (498,915) (214,835) (189,997)
Accounts payable and
accrued liabilities 1,085,999 662,812 49,382
Deferred Revenue 123,408 - -
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(1,290,698) 108,051 (1,148,876)
Investments:
Acquisition, net of cash
acquired (5,284,656) - (2,401,554)
Purchase of property,
plant and equipment (363,374) (80,314) (40,522)
Proceeds on disposal of
property, plant and
equipment - - 175,000
Purchase of intangible
assets - - (403,902)
Payment of long term
deposits (112,285) - -
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(5,760,315) (80,314) (2,670,978)
Financing:
Proceeds from bank
indebtedness 1,714,619 304,624 34,485
Proceeds from sale of
short term investments 125,867 - -
Repayment of capital
lease (171,563) (122,255) (97,101)
Issuance of shares for
cash 7,680,270 10,299 216,160
Share issue costs (695,249) (76,856) -
Settlement of contingent
shares (506,250) - -
Proceeds from convertible
loan - - 2,140,973
Proceeds from notes
payable - - 462,097
Repayment of notes
payable (503,129) (123,938) (275,632)
Repayment of term loan (636,167) - -
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7,008,398 (8,126) 2,480,982
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Increase (decrease) in
cash and cash equivalents (42,615) 19,611 (1,338,872)
Cash and cash equivalents,
beginning of year 42,615 23,004 1,361,876
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Cash and cash
equivalents, end of year $ - $ 42,615 $ 23,004
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About Cryopak Cryopak Industries Inc. develops, manufactures and markets quality temperature-controlling products such as the premium patented Cryopak Flexible Ice(TM) Blanket blanket, sheet, usually of heavy woolen, or partly woolen, cloth, for use as a shawl, bed covering, or horse covering. The blanketmaking of primitive people is one of the finest remaining examples of early domestic artwork. , as well as 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. For more information about Cryopak Industries Inc. or its products, visit the Company's Website at www.cryopak.com or call 1.800.735.8922. Cryopak Industries Inc. trades on both the 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. and the OTC Bulletin Board OTC Bulletin Board An electronic quotation listing of the bid and asked prices of OTC stocks that do not meet the requirements to be listed on the NASDAQ stock-listing system. (TSX-V:CII and OTCBB:CYPKF). ON BEHALF OF THE BOARD OF DIRECTORS John Morgan, President, 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. Certain statements contained herein are "forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. " 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 Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. 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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