Polaris Announces 2008 Third Quarter Results and Conference Call
November 11, 2008
VANCOUVER, British Columbia – Polaris Minerals Corporation (TSX:PLS) today reported financial results for the third quarter ended September 30, 2008. All financial results are in US Dollars unless otherwise noted.
During the quarter the Company generated positive cash flow from operations of $635,000, compared to a use of $220,000 cash for operations in the second quarter of 2008. Revenues of $9.0 million for the third quarter represented a 37% increase over the second quarter and a 65% increase over the $5.4 million for the quarter ending September 30, 2007. At September 30, 2008, the Company had cash and cash equivalents of $9.4 million, and debt that included a CDN$20 million short term bridge loan and $3.8 million of capital leases on mobile plant.
Loss from operations for the quarter, net of stock-based compensation, was $2.2 million, compared with a loss of $0.7 million in the quarter ended September 30, 2007. The Company's net loss reported was $3.2 million, ($0.09 per share) compared with a net loss of $1.9 million ($0.05 per share) for the quarter ended September 30, 2007. This increased loss is primarily the result of one time charges for stock based compensation and a change in the fair value of debt.
Herb Wilson, Chief Operating Officer, said: "The Company's gross margin in the quarter was significantly impacted by the high cost of fuel surcharges from its shipping contractor, reflecting record high world oil prices in June and July compounded by a time lag between changes in crude oil prices and incurred fuel charges. The benefit of reducing oil prices is now emerging midway through the fourth quarter and the Company's supply contracts allow for the recovery of 2008 surcharges in 2009". He added: "We are pleased to have generated positive cash from operations in the quarter. We sold 694,000 tons of sand and gravel in the third quarter, the highest quarterly sales since operations began, bringing total sales for the first three quarters in 2008 to 1.71 million tons. Fourth quarter shipments continue to be dispatched at a good pace and we expect to ship 2.1 to 2.5 million tons in 2008. We have maintained a strong cash balance despite the current economic headwinds in the construction industry and are focused on preserving this position going forward".
Commenting on 2009, Mr. Wilson said: "We expect that the combination of higher prices for our products and moderating energy costs will significantly benefit margins in 2009. Although volume visibility for 2009 is challenging, we currently estimate that total sales will be similar to, or slightly higher than 2008. However, until we can get a clearer picture of various macroeconomic factors, including Federal and State infrastructure spending and the outcome of recent efforts to ease credit restrictions on the private sector, we are unable to be more specific on 2009 expectations".
This financial summary should be read in conjunction with the Company's Sept 30, 2008 unaudited consolidated financial statements and Management's Discussion and Analysis, both of which will be available on www.sedar.com.
The Company will host a conference call at 8 am PT on Wednesday, November 12, 2008. Investors and other interested parties may access the teleconference live by calling 416.915.5650 or 800.733.7560 in North America or internationally.
A live webcast of the conference call will be available through the link below:
The webcast will be archived for 90 days following the call.
The conference call will be recorded and available for replay at 11 am PT and will be available until Wednesday, November 26, 2008. To access the replay, dial 416.640.1917 or 877.289.8525. The access code to hear the recording is 21289192 followed by the pound sign.
Polaris Minerals Corporation is exclusively focused on the development of quarries and the production of construction aggregates in British Columbia for marine transport to urban markets on the west coast of North America to meet growing local supply deficits. In 2007, Polaris began shipping sand and gravel from the Orca Quarry to San Francisco Bay, Vancouver, BC and Hawaii.
For further information, please contact:
Herb Wilson, Chief Operating Officer or
Mike Westerlund, Director, Corporate Development
Polaris Minerals Corporation
Tel: (604) 915-5000
This press release contains "forward-looking statements" and "forward-looking information" within the meaning of applicable securities laws. These statements and information appear in this document and include estimates, forecasts, information and statements as to management's expectations with respect to, among other things the future financial or operating performance of the Company, costs and timing of the development of the construction aggregate quarry, the timing and amount of estimated future production, costs of production, capital and operating expenditures, requirements for additional capital, government regulation of quarrying operations, environmental risks, reclamation expenses, and title disputes. Often, but not always, forward-looking statements and information can be identified by the use of words such as "may", "will", "should", "plans", "expects", "intends", "anticipates", "believes", "budget", and "scheduled" or the negative thereof or variations thereon or similar terminology. Forward-looking statements and information are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Readers are cautioned that any such forward-looking statements and information are not guarantees and there can be no assurance that such statements and information will pove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed under th heading "Risks and Uncertainties" in the Company's Annual Report and under the heading "Risk Factors" in the Company's Annual Information Form (AIF) in respect of its financial year-ended December 31, 2007, both of which are filed with Canadian regulators on SEDAR (www.sedar.com). The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements and information whether as a result of new information, future events or otherwise. All written and oral forward-looking statements and information attributable to us or persons acting on our behalf are expressly qualified in their entiretyby the foregoing cautionary statements.