KP Tissue Releases Fourth Quarter and Full Year 2016 Financial Results

MISSISSAUGA, ONTARIO--(Marketwired - March 9, 2017) - KP Tissue Inc. (KPT) (TSX:KPT) reports the Q4 and full year 2016 financial and operational results of KPT and Kruger Products L.P. (KPLP). Kruger Products is Canada's leading manufacturer of quality tissue products for the Consumer market (Cashmere®, Purex®, SpongeTowels®, Scotties®, and White Swan®) and the Away-From-Home market, and continues to grow in the U.S. Consumer tissue business with the White Cloud® brand and premium private label products. KPT currently holds a 16.1% interest in KPLP.

KPLP Q4 2016 Business and Financial Highlights

• Revenue increased by 13.0% to $339.6 million in Q4 2016 compared to Q4 2015
• Adjusted EBITDA was $42.9 million in Q4 2016 compared to $30.3 million in Q4 2015, up 41.6%
• Kruger Products continues to be the market share leader in Canada
• Declared a quarterly dividend of $0.18 per share to be paid on April 17, 2017

KPLP Full Year 2016 Business and Financial Highlights

• Revenue increased by 7.8% to $1,227.9 million in 2016 compared to $1,138.9 million in 2015
• Adjusted EBITDA was $152.5 million in 2016, up from $126.4 million in 2015, a 20.6% increase

"We are extremely pleased with our results for Fiscal 2016. The record Revenue and Adjusted EBITDA performance was primarily due to higher sales volume, improved pricing and strong contribution from TAD products" said Mario Gosselin, CEO of KP Tissue and KPLP.

"We continue to be #1 in overall tissue market share in Canada, with share gains in our market leading position in the bathroom tissue category, while remaining the uncontested market leader in the facial tissue category and holding a strong #2 position in the paper towels category. In the U.S., we continue to leverage our TAD product manufacturing capacity to take advantage of growth opportunities in the U.S. premium private label market.

"In the past two years, our capital program has increased significantly, focused on projects related to capacity growth and cost reduction with quick paybacks, highlighted by our $55 million paper machine investment in Crabtree to reduce our overall paper costs. We are starting to see the benefits of these investments in our results, and expect a positive impact from capital projects on our costs going forward," concluded Mr. Gosselin.

Q1 2017 Outlook

For the first quarter of 2017, Adjusted EBITDA is expected to increase over Q1 2016, while being seasonally lower than the fourth quarter of 2016 due primarily to twelve fewer sales days and higher advertising expenses.

KPLP Q4 2016 Financial Results

Revenue in Q4 2016 was $339.6 million, compared to $300.6 million in Q4 2015, an increase of $39.0 million or 13.0%. The increase in revenue was primarily due to higher sales volumes and a selling price increase in Canada.

Cost of sales in Q4 2016 increased to $284.2 million, compared to $259.9 million in Q4 2015, primarily due to higher sales volumes, somewhat offset by cost reduction initiatives and the impact of capital projects. As a percentage of revenue, cost of sales were 83.7% in Q4 2016 compared to 86.5% in Q4 2015.

Selling, general and administrative (SG&A) expenses in Q4 2016 were $26.4 million, compared to $23.5 million in Q4 2015. The increase was primarily due to higher selling expenses related to higher sales volumes and higher advertising expenses. As a percentage of revenue, SG&A expenses were 7.8% in Q4 2016, consistent with Q4 2015.

Adjusted EBITDA in Q4 2016 was $42.9 million, compared to $30.3 million in Q4 2015, primarily due to higher sales volume, improved pricing and mix of products sold, and the impact of cost reduction initiatives and capital projects, partially offset by higher SG&A costs. Adjusted EBITDA attributable to the sale of TAD products was $13.8 million in Q4 2016 compared to $13.2 million in Q4 2015.

Net loss in Q4 2016 was $4.5 million, compared to $0.5 million in Q4 2015, primarily due to a change in the amortized cost of the Partnership units liability of $23.2 million, and higher depreciation and interest expense of $1.2 million and $0.7 million, respectively. These increases were partially offset by higher Adjusted EBITDA of $12.6 million, a decrease in tax expense of $4.2 million, and a gain on sale of non-financial assets of $2.5 million.

Total liquidity, representing cash and cash equivalents and availability under the credit line within covenant limitations, was $103.5 million as of December 31, 2016, compared to $90.6 million as of September 25, 2016.

KPLP 2016 Financial Results

Revenue was $1,227.9 million in Fiscal 2016, compared to $1,138.9 million in Fiscal 2015, an increase of $89.0 million or 7.8%. The increase in revenue was primarily due to additional sales volume across all regions as well as a selling price increase in Canada, and the favourable impact of foreign exchange on U.S. dollar sales.

Adjusted EBITDA was $152.5 million in Fiscal 2016, compared to $126.4 million in Fiscal 2015. The increase was primarily due to higher sales volume, improved pricing and mix of products sold, and the impact of cost reduction initiatives and capital projects. These were partially offset by higher SG&A costs and the net negative impact of foreign exchange. Adjusted EBITDA attributable to the sale of TAD products was $49.0 million in Fiscal 2016 compared to $45.3 million in Fiscal 2015.

Net income was $35.5 million in Fiscal 2016, compared to $1.5 million in Fiscal 2015. The increase in net income was primarily due to higher Adjusted EBITDA of $26.1 million, a decrease in interest expense of $14.2 million, a change in the foreign exchange gain/loss of $7.2 million, a decrease in tax expense of $3.8 million, and no pension revaluation related to past service costs compared to $3.4 million in Fiscal 2015. These decreases were partially offset by a change in the amortized cost of the Partnership units liability of $19.4 million, and higher depreciation expense of $5.9 million.

KPT Q4 2016 Financial Results

KPT incurred a net loss of $0.4 million in Q4 2016. Included in the net loss was $0.7 million representing KPT's share of KPLP's loss. The loss was increased by the net of depreciation expense of $1.5 million related to adjustments to carrying amounts on acquisition, partially offset by an income tax recovery of $1.8 million.

KPT 2016 Financial Results

KPT incurred a net loss of $1.7 million in 2016. Included in the net loss was $5.8 million representing KPT's share of KPLP's income. The income was reduced by depreciation expense of $5.9 million related to adjustments to carrying amounts on acquisition and income tax expense of $1.8 million

Dividends on Common Shares

The Board of Directors of KPT declared a quarterly dividend of $0.18 per share to be paid on April 17, 2017 to shareholders of record at the close of business on March 31, 2017.

Additional Information

For additional information please refer to Management's Discussion and Analysis (MD&A) of KPT and KPLP for the fourth quarter and year ended December 31, 2016 available on SEDAR at www.sedar.com or our website at www.kptissueinc.com.

Fourth Quarter Results Conference Call Information

KPT will hold its fourth quarter conference call on Thursday, March 9, 2017 at 8:30 a.m. Eastern Time.

Via telephone: 1-877-223-4471 or 647-788-4922

Via the internet at: www.kptissueinc.com

Presentation material referenced during the conference call will be available at www.kptissueinc.com.

A rebroadcast of the conference call will be available until midnight, April 8, 2017 by dialing 800-585-8367 or 416-621-4642 and entering passcode 59685751.

The replay of the webcast will remain available on the website until midnight, April 8, 2017.

About KP Tissue Inc. (KPT)

KPT was created to acquire, and its business is limited to holding, a limited partnership interest in KPLP, which is accounted for as an investment on the equity basis. KPT currently holds a 16.1% interest in KPLP. For more information visit www.kptissueinc.com.

About Kruger Products L.P. (KPLP)

KPLP is Canada's leading manufacturer of quality tissue products for household, industrial and commercial use. KPLP serves the Canadian consumer market with such well-known brands as Cashmere®, Purex®, SpongeTowels®, Scotties® and White Swan®. In the U.S., KPLP manufactures the White Cloud® brand, as well as many private label products. The Away-From-Home division manufactures and distributes high-quality, cost-effective product solutions to a wide range of commercial and public entities. KPLP has approximately 2,500 employees and operates eight production facilities in North America, including five FSC® CoC-certified plants (FSC® C104904), four of which are located in Canada and one in the U.S. For more information visit www.krugerproducts.ca.

Non-IFRS Measures

This press release uses certain non-IFRS financial measures which KPLP believes provide useful information to management of KPLP and the readers of the financial information in measuring the financial performance and financial condition of KPLP. These measures do not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similarly titled measures presented by other companies. An example of such a measure is Adjusted EBITDA. Beginning with Q4 2015 in accordance with Canadian Securities Administrators Staff Notice 52-306 (Revised), we reference Adjusted EBITDA as a non-IFRS financial measure. This term replaces the previously referenced non-IFRS financial measure EBITDA. Our definition of Adjusted EBITDA is unchanged from our former definition of EBITDA. Accordingly, this change in terminology has no impact on our reported financial results for prior periods. Adjusted EBITDA is not a measurement of operating performance computed in accordance with IFRS and should not be considered as a substitute for operating income, net income or cash flows from operating activities computed in accordance with IFRS. "Adjusted EBITDA" is calculated by KPLP as net income (loss) before (i) interest expense, (ii) income taxes, (iii) depreciation, (iv) amortization, (v) impairment (gain on sale) of non-financial assets, (vi) loss (gain) on disposal of property, plant and equipment, (vii) foreign exchange loss (gain), (viii) costs related to restructuring activities, (ix) changes in the amortized cost of the Partnership units liability, and (x) one-time costs due to pension revaluations related to past service. A reconciliation of Adjusted EBITDA to the relevant reported results can be found in the MD&A of KPT and KPLP for the fourth quarter ended December 31, 2016 available on SEDAR at www.sedar.com.

Forward-Looking Statements

Certain statements in this press release about KPT's and KPLP's current and future plans, expectations and intentions, results, levels of activity, performance, goals or achievements or any other future events or developments constitute forward-looking statements. The words "may", "will", "would", "should", "could", "expects", "plans", "intends", "trends", "indications", "anticipates", "believes", "estimates", "predicts", "likely" or "potential" or the negative or other variations of these words or other comparable words or phrases, are intended to identify forward-looking statements. The forward-looking information is based on certain key expectations and assumptions made by KPT, including expectations and assumptions concerning the impact of the TAD Project on Adjusted EBITDA, the expectation of continued growth in sales of TAD products in the U.S., and stable interest rates. Although KPT believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information since no assurance can be given that such expectations and assumptions will prove to be correct.

The outlook provided in respect of Adjusted EBITDA for Q1 2017 is forward-looking information and is subject to the risk and uncertainties referred to below. The purpose of the outlook is to provide the reader with an indication of management's expectations, at the date of this press release, regarding KPLP's future financial performance. Readers are cautioned that this information may not be appropriate for other purposes.

Many factors could cause KPLP's actual results, level of activity, performance or achievements or future events or developments (which could in turn affect the economic benefits derived from the Corporation's economic interest in KPLP) to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, the following factors, which are discussed in greater detail in the "Risk Factors - Risks Related to KPLP's Business" section of the KPT Annual Information Form dated March 9, 2017 available on SEDAR at www.sedar.com: Kruger Inc.'s influence over KPLP; KPLP's reliance on Kruger Inc.; consequences of an event of insolvency relating to Kruger Inc.; risks associated with the TAD Project; operational risks; Gatineau Plant land lease; significant increases in input costs; reduction in supply of fibre; increased pricing pressure and intense competition; KPLP's inability to innovate effectively; adverse economic conditions; dependence on key retail trade customers; damage to the reputation of KPLP or KPLP's brands; KPLP's sales being less than anticipated; KPLP's failure to implement its business and operating strategies; KPLP's obligation to make regular capital expenditures; KPLP's entering into unsuccessful acquisitions; KPLP's dependence on key personnel; KPLP's inability to retain its existing customers or obtain new customers; KPLP's loss of key suppliers; KPLP's failure to adequately protect its intellectual property rights; KPLP's reliance on third party intellectual property licenses; adverse litigation and other claims affecting KPLP; material expenditures due to comprehensive environmental regulation affecting KPLP's cash flow; KPLP's pension obligations are significant and can be materially higher than predicted if KPLP Management's underlying assumptions are incorrect; labour disputes adversely affecting KPLP's cost structure and KPLP's ability to run its plants; exchange rate and U.S. competitors; KPLP's inability to service all of its indebtedness; exposure to potential consumer product liability, restrictive covenants; interest rate and refinancing risk; information technology; cyber-security; insurance; internal controls and trade related risk.

Readers should not place undue reliance on forward-looking statements made herein. The forward-looking information contained herein is expressly qualified in its entirety by this cautionary statement. The forward-looking information contained herein is made as of the date of press release and KPT undertakes no obligation to publicly update such forward-looking information to reflect new information, subsequent or otherwise, unless required by applicable securities laws.

Kruger Products L.P.
Consolidated Statement of Financial Position
(thousands of Canadian dollars)
		December 31, 2016		December 31, 2015
		$		$
Assets
Current assets
	Cash and cash equivalents	36,511		25,455
	Trade and other receivables	123,095		108,720
	Receivables from related parties	185		185
	Current portion of advances to partners	5,465		2,630
	Inventories	179,543		184,985
	Income tax recoverable	423		772
	Prepaid expenses	7,286		8,429
		352,508		331,176
Non-current assets
	Advances to partners	-		4,234
	Property, plant & equipment	762,270		737,708
	Other long-term assets	6,075		8,107
	Goodwill	160,939		160,939
	Intangible assets	15,270		15,853
	Deferred income taxes	39,913		39,411
Total assets		1,336,975		1,297,428
Liabilities
Current liabilities
	Bank indebtedness	9,007		-
	Trade and other payables	201,477		180,329
	Payables to related parties	3,606		3,775
	Income tax payable	1,779		-
	Distributions payable	10,148		9,871
	Current portion of provisions	1,885		3,096
	Current portion of long-term debt	8,859		10,183
		236,761		207,254
Non-current liabilities
	Long-term debt	415,379		425,859
	Other long-term liabilities	-		48
	Provisions	6,487		6,180
	Pensions	92,646		87,164
	Post-retirement benefits	57,162		57,346
	Liabilities to non-unitholders	808,435		783,851
	Current portion of Partnership units liability	8,611		2,630
	Long-term portion of Partnership units liability	137,296		122,546
	Total Partnership units liability	145,907		125,176
Total liabilities		954,342		909,027
Equity
	Partnership units	336,576		318,012
	Deficit	(42,792	)	(29,416	)
	Accumulated other comprehensive income	88,849		99,805
Total equity		382,633		388,401
Total equity and liabilities		1,336,975		1,297,428

Kruger Products L.P.
Consolidated Statement of Comprehensive Income
(thousands of Canadian dollars)
		13-week		13-week
		period ended		period ended		Year ended		Year ended
		December 31, 2016		December 31, 2015		December 31, 2016		December 31, 2015
		$		$		$		$
Revenue		339,626		300,583		1,227,896		1,138,870
Expenses
	Cost of sales	284,299		259,842		1,031,647		970,759
	Selling, general and administrative expenses	26,480		23,452		92,763		87,978
	Gain on sale of non-financial assets	(2,544	)	12		(2,939	)	(1,119	)
	Restructuring costs, net	134		989		552		2,824
Operating income		31,257		16,288		105,873		78,428
	Interest expense	10,673		10,095		44,000		58,164
	Other expense	23,061		561		22,754		11,331
Income (loss) before income taxes		(2,477	)	5,632		39,119		8,933
Income taxes		2,017		6,157		3,629		7,439
Net income (loss) for the period		(4,494	)	(525	)	35,490		1,494
Other comprehensive income (loss)
	Items that will not be reclassified to net income (loss):
	Remeasurements of pensions	55,495		11,217		(8,491	)	7,094
	Remeasurements of post-retirement benefits	4,613		(1,965	)	94		(2,667	)
	Items that may be subsequently reclassified to net income (loss):
	Available-for-sale investment	-		513		(290	)	207
	Cumulative translation adjustment	6,192		13,242		(10,666	)	56,135
Total other comprehensive income (loss) for the period		66,300		23,007		(19,353	)	60,769
Comprehensive income for the period		61,806		22,482		16,137		62,263

Kruger Products L.P.
Consolidated Statement of Cash Flows
(thousands of Canadian dollars)
		13-week		13-week
		period ended		period ended		Year ended		Year ended
		December 31, 2016		December 31, 2015		December 31, 2016		December 31, 2015
		$		$		$		$
Cash flows from (used in) operating activities
Net income (loss) for the period		(4,494	)	(525	)	35,490		1,494
Items not affecting cash
	Depreciation	13,661		12,189		47,436		41,643
	Amortization	270		318		1,146		881
	Loss on sale of fixed assets	142		450		139		734
	Change in amortized cost of Partnership units liability	22,129		(1,010	)	23,363		4,003
	Gain on sale of investment	-		-		(324	)	-
	Foreign exchange (gain) loss	932		1,578		(285	)	6,906
	Interest expense	10,673		10,095		44,000		58,164
	Pension and post retirement benefits	2,597		2,685		10,402		14,146
	Provisions	147		229		1,338		3,034
	Income taxes	2,017		6,157		3,629		7,439
	Gain on sale of non-financial assets	(2,544	)	12		(2,939	)	(1,119	)
	Total items not affecting cash	50,024		32,703		127,905		135,831
Net change in non-cash working capital		11,857		(4,382	)	1,386		(24,540	)
Contributions to pension and post-retirement benefit plans		(4,417	)	(11,553	)	(18,335	)	(23,084	)
Provisions paid		(815	)	(2,580	)	(2,267	)	(3,558	)
Income tax payments		(83	)	(557	)	(1,970	)	(2,107	)
Net cash from operating activities		52,072		13,106		142,209		84,036
Cash flows from (used in) investing activities
Purchases of property, plant & equipment		(22,794	)	(21,552	)	(81,460	)	(54,701	)
Capitalized interest paid		(222	)	-		(222	)	-
Proceeds on sale of investment		-		-		1,439		-
Government assistance received		1,191		-		2,400		-
Purchases of software		(492	)	(722	)	(563	)	(2,682	)
Proceeds on sale of property, plant and equipment		4,860		-		5,399		736
Net cash used in investing activities		(17,457	)	(22,274	)	(73,007	)	(56,647	)
Cash flows from (used in) financing activities
Proceeds from long-term debt		4,614		206,000		9,609		206,000
Repayment of long-term debt		(9,776	)	(179,976	)	(17,882	)	(184,856	)
Payment of deferred financing fees		(34	)	(1,248	)	(745	)	(1,388	)
Interest paid on long-term debt		(15,868	)	(22,603	)	(34,162	)	(44,978	)
Distributions and advances paid, net		(5,979	)	(7,156	)	(22,862	)	(31,811	)
Proceeds from issuing Partnership units		-		-		-		195
Net cash used in financing activities		(27,043	)	(4,983	)	(66,042	)	(56,838	)
Effect of exchange rate changes on cash and cash equivalents held in foreign currency		408		1,059		(1,111	)	3,116
Increase (decrease) in cash and cash equivalents during the period		7,980		(13,092	)	2,049		(26,333	)
Cash and cash equivalents - Beginning of period		19,524		38,547		25,455		51,788
Cash and cash equivalents - End of period		27,504		25,455		27,504		25,455

Kruger Products L.P.
Segment and Geographic Results
(thousands of Canadian dollars)
		13-week		13-week
		period ended		period ended		Year ended		Year ended
		December 31, 2016		December 31, 2015		December 31, 2016		December 31, 2015
		$		$		$		$
Segment Information
Segment Revenue
	Consumer	277,543		240,583		986,881		897,959
	AFH	59,549		54,799		227,062		220,320
	Other	2,534		5,201		13,953		20,591
Total segment revenue		339,626		300,583		1,227,896		1,138,870
Segment Adjusted EBITDA
	Consumer	40,469		30,726		146,367		122,483
	AFH	2,452		621		5,217		5,407
	Other	(1	)	(1,094	)	947		(1,505	)
Total segment Adjusted EBITDA		42,920		30,253		152,531		126,385
Reconciliation to Net Income (Loss):
Depreciation and amortization		13,931		12,507		48,582		42,524
Interest expense		10,673		10,095		44,000		58,164
Change in amortized cost of Partnership units liability		22,129		(1,010	)	23,363		4,003
Loss on sale of fixed assets		142		450		139		734
Pension revaluation - past service cost		-		-		-		3,416
Gain on sale of non-financial assets		(2,544	)	12		(2,939	)	(1,119	)
Restructuring costs		134		989		552		2,824
Foreign exchange (gain) loss		932		1,578		(285	)	6,906
Income (loss) before income taxes		(2,477	)	5,632		39,119		8,933
Income taxes		2,017		6,157		3,629		7,439
Net income (loss)		(4,494	)	(525	)	35,490		1,494
Geographic Revenue
Canada		209,605		184,512		746,483		711,881
U.S.		115,767		103,384		429,627		389,154
Mexico		14,254		12,687		51,786		37,835
Total revenue		339,626		300,583		1,227,896		1,138,870

KP Tissue Inc.
Statement of Financial Position
(thousands of Canadian dollars)
		December 31, 2016		December 31, 2015
		$		$
Assets
Current assets
	Distributions receivable	1,636		1,613
	Receivable from Partnership	426		-
	Income tax recoverable	-		828
		2,062		2,441
Non-current assets
	Investment in associate	117,349		126,643
Total Assets		119,411		129,084
Liabilities
Current liabilities
	Dividend payable	1,636		1,613
	Payable to Partnership	-		108
	Current portion of advances from Partnership	914		432
	Income tax payable	884		-
		3,434		2,153
Non-current liabilities
	Advances from Partnership	-		709
	Deferred income taxes	893		1,007
Total liabilities		4,327		3,869
Equity
	Common shares	13,176		11,577
	Contributed surplus	144,819		144,819
	Deficit	(58,729	)	(49,291	)
	Accumulated other comprehensive income	15,818		18,110
Total equity		115,084		125,215
Total liabilities and equity		119,411		129,084

KP Tissue Inc.
Statement of Comprehensive Income (Loss)
(thousands of Canadian dollars, except share and per share amounts)
		13-week		13-week
		period ended		period ended		Year ended		Year ended
		December 31, 2016		December 31, 2015		December 31, 2016		December 31, 2015
		$		$		$		$
Equity loss		(2,225	)	(1,516	)	(124	)	(5,480	)
Dilution gain (loss)		49		(59	)	191		70
Impairment in investment in associate		-		(28,000	)	-		(28,000	)
Income (loss) before income taxes		(2,176	)	(29,575	)	67		(33,410	)
Income taxes		(1,768	)	(1,796	)	1,789		(2,066	)
Net loss for the period		(408	)	(27,779	)	(1,722	)	(31,344	)
Other comprehensive income (loss) net of tax expense (recovery)
	Items that will not be reclassified to net loss:
	Remeasurements of pensions	7,839		1,603		(1,195	)	1,013
	Remeasurements of post-retirement benefits	456		(196	)	9		(267	)
	Items that may be subsequently reclassified to net loss:
	Available-for-sale investment	-		72		(41	)	29
	Cumulative translation adjustment	1,244		2,376		(2,251	)	10,223
Total other comprehensive income (loss) for the period		9,539		3,855		(3,478	)	10,998
Comprehensive income (loss) for the period		9,131		(23,924	)	(5,200	)	(20,346	)
Basic loss per share		(0.04	)	(3.12	)	(0.19	)	(3.52	)
Weighted average number of shares outstanding		9,084,494		8,952,820		9,037,833		8,910,948

KP Tissue Inc.
Statement of Cash Flows
(thousands of Canadian dollars)
		13-week		13-week
		period ended		period ended		Year ended		Year ended
		December 31, 2016		December 31, 2015		December 31, 2016		December 31, 2015
		$		$		$		$
Cash flows from (used in) operating activities
Net loss for the period		(408	)	(27,779	)	(1,722	)	(31,344	)
Items not affecting cash
	Equity loss	2,225		1,516		124		5,480
	Dilution gain (loss)	(49	)	59		(191	)	(70	)
	Impairment in investment in associate	-		28,000		-		28,000
	Income taxes	(1,768	)	(1,796	)	1,789		(2,066	)
	Total items not affecting cash	408		27,779		1,722		31,344
Tax payments		-		(307	)	(205	)	(1,712	)
Tax Distribution received		-		-		-		571
Advances received		-		307		205		1,141
Net cash from (used in) operating activities		-		-		-		-
Cash flows from (used in) investing activites
Investment in associate		-		-		-		(195	)
Partnership unit distributions received		1,180		1,205		4,908		5,217
Net cash from investing activities		1,180		1,205		4,908		5,022
Cash flows from (used in) financing activities
Issuance of common shares		-		-		-		195
Dividends paid		(1,180	)	(1,205	)	(4,908	)	(5,217	)
Net cash used in financing activities		(1,180	)	(1,205	)	(4,908	)	(5,022	)
Increase (decrease) in cash and cash equivalents during the period		-		-		-		-
Cash and cash equivalents - Beginning of period		-		-		-		-
Cash and cash equivalents - End of period		-		-		-		-