News release ....
TORONTO--(BUSINESS WIRE)--May 20, 1997-- (Canadian Dealing
Network STAX.)
STACKPAL INTERNATIONAL INC.(CDN-STAX)/STACKPAL CANADA INC.
reported unaudited results today for the quarter ended March 31,
1997. Revenue for the three-month period ended March 31, 1997 was
$726,332. This was more than double the total sales of $342,657
recorded in the twelve-month period ended December 31, 1996. Revenue
for the same period ending March 31, 1996 was $28,950. Management
expects the expanded product lines to contribute to increased margins
going forward, reaching positive cash flow in the second half of
1997. Management's focus on increasing revenue during the quarter
was accomplished while decreasing operating expenses. Operating
expenses for the quarter ended March 31, 1997 were $228,040, a
decrease of twenty-five percent (25.0 percent) from the prior year
operating expenses of $304,282.
During the quarter, management reached an agreement with the
long-term debt holder to convert the debt to equity. The Company was
indebted to the licensor and owner of a polymer pallet leg patent in
the amount of approximately $1.2 million. Pursuant to a debt
settlement agreement made as of February 28, 1997, the Company issued
1,084,370 common shares to the debt holder. This transaction
significantly improves the cash flow of the Company by eliminating
the related interest charges and future payments required. The
conversion of debt to equity resulted in a one-time charge for
forgiveness of debt in the first quarter of 1997 for $1.0 million.
Loss per share for the quarter ended March 31, 1997, prior to the
one-time charge was $(0.01), compared to a loss per share of $(0.02)
for the quarter ended March 31, 1996. At March 31, 1997, there was
21,466,487 shares outstanding.
Adding to the stable of customers like General Motors and
Consumers Glass, the Company penetrated new market niches in the
first quarter by securing significant contracts with clients such as
IBM Canada and Nestle Canada among others. Stackpal was able to
obtain additional equity financing of $550,000 during the quarter, as
well as an extension on its operating line of credit.
With an increasing customer base, enhanced marketing and sales
effort, strong support from suppliers and improved financial
position, Stackpal is well positioned for explosive growth.
Stackpal is a provider of materials handling/packaging solutions
to a wide range of clients in diverse industries. The Company's
marketing and sales efforts are geared towards providing
organizations with product and system solutions which are
environmentally friendly and conform to the principals of return,
reuse and recycle. Management believes that this dedication to the
expansion of a unique and distinctive product line with global
expansion potential is the key to achieving its rapid growth and
profitability objectives.
*T
STACKPAL INTERNATIONAL INC.
CONSOLIDATED STATEMENT OF OPERATIONS
for the periods ended March 31, 1997 and 1996
March 31 March 31
1997 1996
Sales $ 726,332 $ 28,950
Cost of Sales 677,731 21,364
Gross Margin 48,601 7,586
Expenses
Selling and Marketing 69,094 61,962
Admin. & Gen. 120,614 156,925
Amortization 18,548 52,449
Interest and Bank Charges - net 19,784 32,948
Total Operating Costs 228,040 304,284
Income/(Loss) from Operations (179,439) (296,698)
Non-recurring items 1,037,310 -
Net loss for the Period 857,871 (296,698)
Deficit - Beginning of Period (4,485,490) (1,279,039)
----------- ----------
Deficit - End of Period $(3,627,619) $(1,575,737)
----------- ----------
----------- ----------
Loss per Share before
Non -recurring items $(0.01) $(0.02)
Gain (Loss) Per Share $ 0.05 $(0.02)
----------- ----------
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STACKPAL INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEET
as at March 31, 1997 and 1996
1997 1996
ASSETS 762,996 151,075
Capital Assets 472,762 2,176,771
Goodwill 59,330 62,546
TOTAL ASSETS $ 1,295,088 $ 2,390,392
LIABILITIES
Current Liabilities 938,801 189,820
Long-Term Liabilities - 1,159,740
Capital lease obligations 44,903 -
---------- ----------
TOTAL LIABILITIES 983,704 1,349,560
SHAREHOLDERS' EQUITY
Capital Stock 3,839,957 2,517,523
Contributed Surplus 99,046 99,046
Deficit (3,627,619) (1,575,737)
---------- ----------
TOTAL EQUITY 311,384 1,040,832
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 1,295,088 $ 2,390,392
STACKPAL INTERNATIONAL INC.
CONSOLIDATED STATEMENTS OF CHANGES IN FINACIAL POSITION
for the periods ended March 31, 1997 and 1996
1997 1996
Cash provided by (used for):
Operations
Net Income
(Loss) for the period $ 857,871 (296,698)
Items not affecting cash -
Amortization 18,548 52,449
876,419 (244,249)
Changes in non-cash
operating working
capital items 827,706 160,236
Investment activities
Purchase of capital assets (4,440) (162)
Financing activities
Issuance of common share,
options and warrants 743,750 -
Contribution of capital--
(Decrease) Increase in
long term debt (1,237,310) 34,461
(Decrease) Increase
in capital lease obligation (3,985) -
(Decrease) Increase
in bank indebtedness (94,000) -
(Decrease) Increase
in loan payable 5,918 -
---------- ----------
(585,627) 34,461
Change in cash and short term
investments for the period 237,639 (49,714)
Cash and short term investments
- beginning of period 11,701 77,684
Cash and short term investments
- end of period $ 249,340 27,970
*T
The information provided herein has not been approved or
disapproved by regulatory authorities.
--30--cl/bos
CONTACT:
Stackpal International Inc.
Mr. John Varghese, 905/-206-9900 |
