Improving the home front has always been a great summer pastime for Canadians, and with tax credits put up by the federal government in 2009, the job of beautifying houses has gotten even easier.
One beneficiary of this rush to renovate has been Quebec-based Novik Inc. (TSX-Venture:NVK) which, in late May, came out with record first-quarter results for fiscal 2010. Revenues registered $3.9 million during the quarter, about 50% better than the $2.6 million during the same quarter last year -- beating the previous record of $3.3 million in the quarter to begin 2008.
Incredible sales growth of 46% over the same quarter accounted for much of this solid bottom line, as markets improved in both Canada and the U.S.
The company's net loss for the first quarter of fiscal year 2010 amounted to $312,000, compared to a net loss of $627,000 for the same quarter of the previous fiscal year. The company generally shows a net loss in its first quarter of each fiscal year, so that’s pretty much par for the course.
For 2009, NVK experienced a 16% increase in sales in North America, but, due to sagging sales elsewhere, sustained a net loss of $776,000 compared with a net profit of $875,000 the year before.
NVK is a Quebec firm specialized in the design, manufacture and marketing of new polymer exterior coverings and various exterior decorative and functional products for the residential and commercial construction sectors as well as the renovation industry.
With a new factory in Saint-Augustin-de-Desmaures near Quebec City, the company manufactures its products and sells them on the domestic and international markets via associations with multiple distribution networks.
NVK was founded by the Gaudreau family in 1995, and sales took off right from there. Since 1998, NVK has ballooned its staff from three to more than 100, and management adds that demand has enabled NVK to invest more than $10 million in a new 60,000-square-foot factory and state-of-the-art equipment to respond to it.
The company is currently in the bottom end of a 52-week trading range, having fallen in October to 13 cents. Its peak was achieved on exactly May 28 of last year at 32 cents. The day NVK released its figures, the stock was situated around 17.5 cents a share, at just the level prospective investors would like to get a good look at it.
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