Polaris Announces 2009 First Quarter Results and Conference Call
May 7, 2009
VANCOUVER, British Columbia - Polaris Minerals Corporation (TSX:PLS) today reported financial results for the quarter ended March 31, 2009. All financial results are in US Dollars unless otherwise noted.
Sales of $2.93 million in the quarter represented a 55% decrease over sales of $6.55 million generated in the prior year period. Despite this reduction, the loss from operations, net of stock-based compensation, increased by only 24% to $1.78 million compared with a loss of $1.43 million in the first quarter last year as a result of the positive effects of fuel surcharge recovery, lower shipping fuel costs, and prudent cost control. At March 31, 2009, the Company had cash and cash equivalents of $6.36 million, working capital of $11.81 million and had no long term debt, having repaid its CAD$20 million bridge loan during the quarter. $1.78 million of cash was invested to increase product inventories in the quarter.
The net loss for the quarter was $1.40 million ($0.03 loss per share) compared with a net loss of $2.46 million ($0.07 loss per share) for the quarter ending March 31, 2008. The Company had an Adjusted EBITDA loss for the quarter of $195,000 ($0.00 loss per share) compared with $514,000 ($0.01 per share) generated in the prior year.
Herb Wilson, President and CEO, said: "The first quarter presented a challenging operating environment brought about by the deepening economic recession and unseasonably wet weather in our principal markets. Sales of 206,000 tons were 60% lower than the 521,000 tons recorded in the first quarter of 2008, although the tonnage dispatched from the quarry was 286,000 tons. Pricing for Polaris' products presently remains stable and our cash position is satisfactory."
He continued. "Following tough economic times, it is the construction industry, fuelled by public sector investment that generally leads the economy out of recession. We are cautiously optimistic that customer demand in the second half of the year will benefit from the economic stimulus plans and are pleased to note that California is the first state in the nation to have obligated over $1 billion in Recovery Act funding to nearly 80 transportation infrastructure projects statewide. We expect to be able to see greater clarity as we move through the year. We are pleased to confirm that in expectation of an increase in construction activity in target markets, operating hours at the Orca quarry are being restored, effective mid-May, to the level experienced before the temporary reduction announced on March 2, 2009."
This financial summary should be read in conjunction with the Company's March 31, 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 Friday, May 8, 2009. Investors and other interested parties may access the teleconference live by calling 416.644.3431 or 800.588.4490 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 Friday, May 22, 2009. To access the replay, dial 416.640.1917 or 877.289.8525. The access code to hear the recording is 21305504 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.