TORONTO – Coretec Inc.
reported fourth-quarter sales climbed 20.6% from last year to $22.8 million, on the weak Canadian Dollar. For the year, sales dropped 5.2% to $81 million, compared to $85.4 million in 2007.
Net loss for the quarter was $0.5 million, compared to $1.4 million year-over-year, while net loss for the year improved from $3.2 million in 2007 to $2.3 million. EBITDA rose to $1.3 million for the quarter and $3.3 million for the year.
Fourth-quarter gross profit increased to 14.2% of sales compared to 9.2% last year. For the year, it fell slightly to 12.3% of sales, compared to 12.4% in 2007.
Coretec plans several strategies this year to weather the economic storm. Manufacturing and planning systems will be implemented at its Sheppard plant, increasing process control and optimizing capacity utilization. New equipment will be installed at its Denver and Cleveland plants, reducing outsourcing and increasing yields. The company will focus on widening its customer base, end markets and territories.
In addition, it will continue to participate in consortia, accessing key markets and major consumers. The company has also entered into a three-year, $10 million revolving credit facility with Wells Fargo Canada.