Cryopak Industries Inc.
TSX VENTURE : CYK

Cryopak Industries Inc.

August 08, 2005 09:00 ET

Cryopak Annouces First Quarter 2006 Results

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 8, 2005) - Cryopak Industries Inc. (TSX VENTURE:CYK) today reported its results for the first quarter ended June 30, 2005.

Operating results

Net earnings were $0.4 million for the quarter ended June 30, 2005, as compared to nil for the same period in the prior year. Sales for the quarter were $5.0 million, the same level as in the quarter ended June 30, 2004.

"Since January of this year we have made significant progress in expanding our presence in the pharmaceutical package segment, in particular with our recent entry into the European market, while at the same time continuing to carefully monitor our discretionary expenses. We continue to see many growth prospects in this business channel for our Company," stated Mr. Martin Carsky, President and CEO of Cryopak.

Sales and marketing expenses for the quarter were reduced to $0.6 million as compared to $0.8 million for the quarter ended June 30, 2004 and general and administrative costs for the quarter were reduced to $0.4 million as compared to $0.6 million in the previous year.



CRYOPAK INDUSTRIES INC.
Consolidated Balance Sheets
(Unaudited)
(Expressed in Canadian dollars)

--------------------------------------------------------------------
--------------------------------------------------------------------
June 30, March 31,
2005 2005
--------------------------------------------------------------------
(Unaudited)
Assets

Current Assets:
Accounts receivable $ 2,843,445 $ 2,237,834
Advances to related company - -
Inventory 1,803,144 1,670,503
Prepaid expenses 88,775 65,265
--------------------------------------------------------------------
4,735,364 3,973,602

Property, plant and equipment 782,385 877,846

Long-term deposits 116,335 116,335

Deferred financing costs 83,141 81,801

Intangibles and other assets 711,436 791,663

Goodwill 6,453,268 6,453,268
--------------------------------------------------------------------

$ 12,881,929 $ 12,294,515
--------------------------------------------------------------------
--------------------------------------------------------------------

Liabilities and Shareholders' Equity

Current liabilities
Bank indebtedness $ 1,939,613 $ 1,999,297
Accounts payable and
accrued liabilities 2,596,071 3,555,659
Deferred revenues 28,756 -
Current portion of notes
payable to related parties 333,333 333,333
Current portion of obligations
under capital lease 157,926 153,225
Convertible loan 1,746,000 2,182,500
--------------------------------------------------------------------
6,801,699 8,224,014

Promissory notes 1,547,029 1,547,029

Convertible Debentures 1,644,000 -

Obligations under capital lease 176,474 217,764
--------------------------------------------------------------------
10,169,202 9,988,807

Shareholders' equity:
Share capital 9,393,383 9,393,383
Share purchase loan (394,000) (394,000)
Contributed surplus 1,420,716 1,409,116
Deficit (7,707,372) (8,102,791)
--------------------------------------------------------------------
2,712,727 2,305,708
--------------------------------------------------------------------

$ 12,881,929 $ 12,294,515
--------------------------------------------------------------------
--------------------------------------------------------------------


CRYOPAK INDUSTRIES INC.
Consolidated Statements of Operations and Deficit
(Unaudited)
(Expressed in Canadian dollars)

Three months ended June 30, 2005 and 2004

--------------------------------------------------------------------
--------------------------------------------------------------------

2005 2004
--------------------------------------------------------------------

Sales $ 5,010,935 $ 5,022,574

Cost of Sales 3,579,170 3,173,883
--------------------------------------------------------------------

Gross Profit 1,431,765 1,848,691

Expenses:
Sales and marketing 573,234 778,071
Administration 399,583 598,991
Amortization 254,483 286,083
Interest on bank operating line 46,074 44,568
--------------------------------------------------------------------
1,273,274 1,707,713
--------------------------------------------------------------------

Earnings (loss) from operations 158,391 140,978

Other earnings (expenses):
Other income/(expenses) 383,602 18,486
Interest on long-term debt and
financing costs (146,574) (117,569)
--------------------------------------------------------------------

Net income/(loss) for the period 395,419 41,896

(Deficit), beginning of period (8,102,791) (6,496,028)
--------------------------------------------------------------------

(Deficit), end of period (7,707,372) (6,451,133)
--------------------------------------------------------------------
--------------------------------------------------------------------

Earnings/(loss) per common share:
Basic $ 0.06 $ 0.00
Diluted $ 0.06 $ 0.00
--------------------------------------------------------------------
--------------------------------------------------------------------


CRYOPAK INDUSTRIES INC.
Consolidated Statements of Cash Flows
(Unaudited)
(Expressed in Canadian dollars)

Three months ended June 30, 2005 and 2004

--------------------------------------------------------------------
--------------------------------------------------------------------
2005 2004
--------------------------------------------------------------------

Cash provided by (used) in:

Operations $ 395,419 $ 41,896
Net loss for the period
Items not involving cash:
Amortization 254,483 286,083
Accretion of convertible loan - -
Stock-based compensation 11,600 36,548
Interest on exchanged convertible
loan capitalized - -
Forgiveness of interest (138,215) -
Share issue settlement - -
Changes in non-cash operating
working capital:
Accounts receivable (605,611) (616,616)
Advances to related company - 22,061
Prepaid expenses (23,510) (94,873)
Inventory (132,641) (20,431)
Deferred revenues 28,756 37,239
Accounts payable and accrued
liabilities (821,373) (290,601)
--------------------------------------------------------------------
(1,031,092) (598,695)
--------------------------------------------------------------------

Investments:
Acquisition of property, plant
and equipment (78,795) (24,276)
Acquisition of subsidiaries - -
Term deposits - restricted - -
--------------------------------------------------------------------
(78,795) (24,276)

Financing:
Change in bank indebtedness (34,232) 847,674
Issuance (repayment) of
promissory note (25,451) -
Issuance (repayment) of
convertible debentures 1,644,000 -
Forgiveness of convertible loan (218,250) -
Repayment of convertible loan (218,250) -
Issuance/(Repayment) of
notes payable - (157,093)
Deferred financing costs (1,340) -
Share issue costs - -
Repayment of capital lease
obligations (36,590) (67,610)
Repayment of term loan - -
--------------------------------------------------------------------
1,109,887 622,971
--------------------------------------------------------------------

Increase (decrease) in cash and
cash equivalents - -

Cash and cash equivalents,
beginning of period - -
--------------------------------------------------------------------

Cash and cash equivalents,
end of period $ - $ -
--------------------------------------------------------------------
--------------------------------------------------------------------


About Cryopak

With ISO 9001:2000 certified facilities in Vancouver and Montreal, we are a leading provider of temperature-controlling products and solutions serving global pharmaceutical companies, as well as fine North American retailers and consumer goods companies. In our pharmaceutical business we engineer solutions and supply products that help our customers safely transport their temperature sensitive vaccines. In our retail business, we develop, manufacture and sell reusable ice substitutes, flexible hot and cold compresses, reusable gel ice and instant hot and cold packs. These products are marketed under such popular brand names as Ice-Pak™, Flexible Ice™ Blanket, Simply Cozy®, and Flex Pak™. We also manufacture these same products under private label for many well-known consumer goods companies. Our shares are listed on the TSX Venture Exchange under the symbol CYK.

ON BEHALF OF THE BOARD OF DIRECTORS

Martin Carsky, President and CEO


Contact Information

  • Cryopak Industries Inc.
    Martin Carsky
    President and CEO
    1-800-667-2532
    www.cryopak.com