April 30, 2008 09:22 ET

Raymor Releases 2007 Audited Financial Statements

BOISBRIAND, QUEBEC--(Marketwire - April 30, 2008) - Raymor Industries Inc. (TSX VENTURE:RAR), a leading developer and producer of single-walled carbon nanotubes, nanomaterials and advanced materials, today released its annual audited financial statements, along with the company's Management Discussion and Analysis (MD&A) for the year ended December 31st 2007. Raymor posted annual revenues of $3,014,951 in 2007, a growth of 90% when compared to 2006 results. The majority of its revenues were related to sales resulting from the production of metallic powders and thermal spray coating services. Raymor generated a net loss after depreciation and amortization of $4,766,436 or ($0.048) per share, as compared to a net loss after depreciation and amortization of $4,258,131 or ($0.047) per share in 2006. Moreover, at the end of December 31, 2007, the net loss before depreciation and amortization, the stock based compensation expense and non-recurring items amounted to $2,500,592 as compared to $3,334,789 for the same period in 2006. Raymor is showing a gross margin of 42.2% in 2007 (an increase of 25.6%) as compared to 16.6% for the same period ended December 31, 2006. The gross margin increase was due to reductions in manufacturing costs and improvements in the Company's manufacturing processes. Raymor is proud of these results and attributes them to the Company's sales efforts, accreditations from clients, know-how and product quality garnished by the Company in advanced materials and nanotechnologies.

Raymor's total assets amounted to $16,592,018 at the end of December 31st 2007, compared to $15,136,107 as at December 31st 2006. As at December 31st 2007, the Company had cash and cash equivalents of $1,238,891 as compared to $4,113,089 as at December 31st 2006. This increase in assets is due to the Company's financing activities which include institutional funding received in 2007. Also during the second and third quarter of 2007, investments were made in fixed assets, development costs toward nanotechnology initiatives and the expansion of the Company's activities through a new acquisition. The Company's fixed assets amounted to $5,189,769 as at December 31st 2007, as compared to $4,633,339 as at December 31st 2006. This increase relates to the purchase of the remaining production equipment necessary to obtain certain accreditations, other equipment to increase the Company's production capacity and leasehold improvements at its new facility. Also, deferred development costs amounted to $6,682,522 as at December 31st 2007, as compared to $4,185,832 at the end of December 31st 2006. This increase is strictly related to salary, development costs and purchase of equipment incurred toward the Company's single-walled carbon nanotube project.

Other highlights from the 2007 Annual Audited Financial Statements and MD&A include the following:

- In February 2007, the Company completed on schedule the move of all of its current business activities and is presently producing at its new facility in Boisbriand, Quebec. The existing production units were calibrated and commissioned, and began producing for its existing and new clients.

- Also, in February 2007, the Company created of a new wholly-owned subsidiary, Raymor Aerospace Inc., to address the growing need for HVOF (High Velocity Oxy Fuel) spray coating services on components for landing gears and other commercial and military aircraft applications.

- In March 2007, the Company opened up to new markets for its single-walled carbon nanotubes (C-SWNT) and its spherical titanium powders in Asia, primarily through the company's participation in several key nanotechnology events in Japan, particularly "Nano Tech 2007", the world's largest international nanotechnology exhibition and conference.

- Furthermore, in March 2007, AP&C Advanced Powders and Coatings, a subsidiary of the Company, received new orders totaling $520,000 for the supply of its spherical titanium (CPTi) powders from a major US orthopedic implant company.

- Also in March 2007, Raymor Nanotech began to offer various high purity grades of single-walled carbon nanotubes (C-SWNT) for emerging markets. To achieve this, Raymor Nanotech had launched its Purification department in 2006.

- In April 2007, the Company's new subsidiary Raymor Aerospace received the AS 9100:REV B certification for its thermal spray coating operations.

- Also in April 2007, AP&C Advanced Powders and Coatings commenced operating its 2nd metallic powder production unit and received new orders for the third and fourth quarter of 2007 totaling $1,230,000 for the supply of its spherical titanium (CP Ti) powders from a major US orthopedic implant company.

- In May 2007, the Company completed a private placement for 2,000,000 units (the "Units"), representing proceeds of $2,400,000 with a premier US financial institution.

- Also, in May 2007, the Company entered into a financing agreement with a Quebec base financial institution, which provided asset-based financing of $4,000,000 at an interest rate of 10 % for a term of up to 10 years. In addition, a line of credit in the amount of $950,000 was arranged with the same lender supporting the company's receivables and inventories.

- In June 2007, the Company was ranked as one of Canada's top emerging public companies as part of the TSX Venture 50 for a second consecutive year and received the Xerox Outstanding Product Achievement Award.

- In September 2007, Raymor Aerospace signed a conditional agreement for the acquisition of a company specializing in the making of metal parts and the rectification of precision parts for the aeronautic and industrial sectors. This strategic acquisition allows Raymor Aerospace to rapidly implement a one-stop shop for its specialized coating services in the aeronautic and industrial sectors.

Stephane Robert, President and CEO of Raymor Industries had the following to say:

"We are pleased with our results. With the new AS9100 and Nadcap certifications acquired by Raymor Aerospace Inc., combined with the new acquisition of SE Techno Plus, the Company's objective of having a one-stop-shop for the aerospace market is achieved. Combined with client's accreditations, 2008 will allow Raymor Aerospace to become an important quality supplier for the aerospace and defense industries. Moreover, the end of qualification with some clients for our advanced material such as metallic powders and single-walled carbon nanotubes will continue to increase Raymor presence and sales in the biomedical, aerospace and defense sectors."

The complete 2007 annual audited financial statements, along with the MD&A are available at www.sedar.com.

About Raymor Industries

RAYMOR INDUSTRIES INC. (TSX VENTURE:RAR) has as its mission to become a leading developer of high technology for the production of single-walled carbon nanotubes, nanomaterials and other advanced materials for high value-added applications. Raymor Industries operates three wholly-owned, industrial subsidiaries, Raymor Nanotech, Raymor Aerospace and AP&C Advanced Powders and Coatings, specializing in nanotechnology and advanced materials, and comprising four divisions: (1) nanotechnology products, including nano-powders, nano-coatings, and single-walled carbon nanotubes (C-SWNT) for "the applications of tomorrow"; (2) thermal spray coatings, which largely targets military, aeronautical, aerospace, specialized industrial, and mining applications; (3) spherical metallic powders, primarily used for biomedical and aerospace applications; and (4) net-shape forming, a component manufacturing technique used for ballistic protection and other aerospace and military applications. Raymor holds the exclusive rights to more than 20 patents throughout the world, with other patents pending.


Stephane Robert, President.



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