Polaris Announces 2009 Second Quarter Results
August 10, 2009
VANCOUVER, British Columbia - Polaris Minerals Corporation (TSX:PLS) today reported financial results for the quarter ended June 30, 2009. All financial results are in US Dollars unless otherwise noted.
Revenue of $6.2 million in the quarter represented a 113% increase over revenue of $2.9 million generated in the first quarter, but a reduction of 6% over the second quarter of 2008. Revenue for the first six months was $9.1 million, on 693,000 tons sold, a decrease of approximately 30% over the comparable 2008 period. At June 30, 2009, the Company had cash of $4.7 million, working capital of $11.2 million and had no long term debt.
The net loss for the quarter was $3.3 million ($0.06 loss per share) compared with a net loss of $1.9 million ($0.05 loss per share) for the quarter ending June 30, 2008. For the first six months of 2009, the Company had a net loss of $4.7 million ($0.09 loss per share) compared with a net loss of $4.4 million ($0.12 loss per share) in the comparable 2008 period. The Company had an Adjusted EBITDA loss for the quarter of $1.8 million ($0.03 loss per share) compared to a gain of $0.3 million ($0.01 per share) generated in the prior year.
Herb Wilson, President and CEO, said: "The positive impact from the Federal Economic Stimulus Plan and the American Recovery and Reinvestment Act, which we expected to boost demand during the second quarter, has not yet materialized. As a consequence of the ongoing recession in the US and Canada, coupled with California's budget difficulties and unusually wet weather, we experienced a volume reduction of approximately one-third during the first six months of 2009. To mitigate the effect of lower demand, we have reduced operating hours, rationalized production and aggressively managed costs. During the second quarter, however, we incurred unavoidable dead-freight costs of $241,000, arising from the need to dispatch partially loaded vessels from the Orca Quarry to California, which was a necessary action to balance customers' product requirements. Despite the reduction in demand, we are pleased to report that the average selling price for our products, net of recovered shipping fuel surcharges, has remained stable."
He continued: "Since March 2007, Polaris has been and remains an operating and development company. Although circumstances beyond our control have influenced the growth of our operations, the development focus of the Company continues to make good progress in the securement of new distribution terminals in southern California. The permitting phase of the Pier B land in the Port of Long Beach continues satisfactorily and, together with our strategic alliance partner, on August 4th, 2009, we entered into an Exclusive Negotiating Agreement with the Port of San Diego. This provides time to negotiate an option to lease a site within the 10th Avenue facility, on which to develop a receiving terminal. We continue to put a high priority on securing the rights to develop these terminals against the belief that diminishing and irreplaceable local resources in southern California will need to be augmented by imported materials as market demand returns to more normal levels."
Mr. Wilson concluded: "Our two California customers report that new contract bidding activity increased in July 2009. Polaris, in common with the US construction industry, now anticipates that aggregate intensive projects, committed under various Government infrastructure investment programs, will have a positive impact on volumes, perhaps towards the end of 2009, but more predictably in 2010 and thereafter. In the meantime, we continue to work closely with our customers and shipping partner to ensure that the Company is managed as efficiently as possible."
This financial summary should be read in conjunction with the Company's June 30, 2009 Consolidated Financial Statements and Management's Discussion and Analysis, both of which are available on www.sedar.com as well as the Company's website at www.polarmin.com
The Company will host a conference call at 8 am PT on Monday, August 10, 2009. Investors and other interested parties may access the teleconference live by calling 416.644.3424 or 800.591.7539 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 10 am PT and will be available until Monday, August 24, 2009. To access the replay, dial 416.640.1917 or 877.289.8525. The access code to hear the recording is 21312066 followed by the pound sign.
Polaris Minerals Corporation is exclusively focused on the development of construction aggregate quarries and marine receiving terminals on the west coast of North America to meet growing local supply deficits of construction aggregates in urban markets. In 2007, Polaris began shipping sand and gravel from the Orca Quarry to San Francisco Bay, Vancouver, and Hawaii.
For further information, please contact:
Herb Wilson, President and CEO
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 prove 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 the 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, 2008, 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 entirety by the foregoing cautionary statements.