Polaris Announces 2008 Year End Results and Conference Call
March 30, 2009
VANCOUVER, British Columbia - Polaris Minerals Corporation (TSX:PLS) today reported financial results for the year ended December 31, 2008. All financial results are in US Dollars unless otherwise noted.
During 2008 the Company had sales of $29.6 million, a 91% increase over sales of $15.5 million generated in the prior year. At December 31, 2008, the Company had cash and cash equivalents of $7 million.
The net loss for the year was $9.8 million ($0.26 loss per share) compared with the net loss of $18.4 million ($0.52 loss per share) for the year ending December 31, 2007. The Company generated an Adjusted EBITDA for the year of $982,000 ($0.03 per share) compared with a loss of $1,003,000 ($0.03 loss per share) in the prior year. Sales of sand and gravel totaled 608,000 tons in the fourth quarter, bringing total sales for the year to 2.32 million tons, compared with 1.15 million tons sold in 2007.
Subsequent to the year end, in January 2009, the Company fully repaid the outstanding CAD$20 million bridge loan and strengthened the balance sheet with the net proceeds of the CAD$25 million bought deal financing that had been announced on December 16. In addition, in March 2009, the Company and CSL International agreed to restructure the Company's shipping contracts, extending the first contract by five years until 2022 and deferring the start date of the second contract until January 2014.
Herb Wilson, President and CEO, said: "During 2008, the first full year of operations, the Company achieved significant growth in sales volumes coupled with stable pricing. The recent financing provided a strengthened treasury and a Company that is essentially debt free. We have minimal capital expenditure requirements in 2009 and a solid business plan, although economic events beyond our control are dictating somewhat slower growth. The gross margin in the year was impacted by the high cost of shipping fuel which reflected record increases in world oil prices. As a consequence of the time-lag between world oil prices and fuel costs, the benefit of reducing oil prices only emerged midway through the fourth quarter. The Company's supply contracts allow for the recovery of 2008 surcharges in 2009, which amount to $1.19 million. The gross margin was also affected by a one-off year end inventory adjustment at Orca Quarry". He continued: "The first quarter has been affected by adverse winter weather and difficult market conditions and shipments leaving Orca Quarry will be 50% below those achieved in the first quarter of 2008, however, pricing continues to be stable. The combination of Federal and California State stimulus plans should boost construction activity through infrastructure expenditure which is the most beneficial market segment for aggregate consumption. Although the impact of these measures is uncertain in terms of specific timing, the Company is working with its customers in a cooperative manner, and has received strong support from its contracted shipping partner, to ensure that the existing strong relationships benefit us all in these difficult economic times". This financial summary should be read in conjunction with the Company's December 31, 2008 Consolidated Financial Statements and Management's Discussion and Analysis, both of which are available on www.sedar.com.
The Company will host a conference call at 8 am PT on Tuesday, March 31, 2009. Investors and other interested parties may access the teleconference live by calling 416.644.3415 or 800.732.9303 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 Tuesday, April 14, 2009. To access the replay, dial 416.640.1917 or 877.289.8525. The access code to hear the recording is 21302243 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, 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.