Polaris Materials Announces The Opening Of Its Aggregate Terminal In The Port Of Long Beach, California, And Provides Market Update
July 23, 2015
VANCOUVER, British Columbia - Polaris Materials Corporation (the "Company") (TSX:PLS): is pleased to confirm that on Sunday, July 19, a self-discharging Panamax ship carrying 77,000 tons of aggregates from the Orca sand and gravel quarry, made the first delivery into the Company's new terminal in the Port of Long Beach. The products were offloaded using a new computerized conveying and stacking system specifically designed to maintain the integrity of the gravel products when stockpiled in large quantities. These materials are intended for projects demanding high technical performance and the Company has been actively promoting their exceptional quality to consulting engineers and specifiers and expects to maximize sales opportunities from the considerable interest that has been generated.
The Company is also pleased to confirm that it now anticipates that sales volumes from its main Strategic Alliance Partner, during the second half of the current year, are expected to be in line with the original budget for this period. The Company has received assurances that the original marketing plan for the year is now back on track and is actively supporting its partner in a new supply chain management initiative to provide better coordination and planning of logistics. In addition, further supply opportunities with third parties are being actively and jointly pursued. The outlook for the year, after considering the impact of the second quarter, is that sales volumes for the yearshould be approximately in line with those in 2014, however, the potential for upside exists while the Company's focus remains on margin expansion through pricing and cost control. For the first six months of 2015 sales volumes were 16% lower than the same period last and revenue was 5% lower. Subject to finalization of the second quarter accounts, which will be released in August, the Company generated cash from operations in the second quarter in the range of $1.0 to $1.5 million.
Herb Wilson, President and CEO, commented: "The arrival of the first ship into the Long Beach terminal was a milestone event that wentsmoothly and proved the value of the innovative berthing solution the Company developed. The large product inventory now available on the site enables us to actively pursue supplying major projects and infrastructure where the high performance characteristics of concrete made with the Orca aggregate can add considerable value." He continued: "We are pleased that our marketing plans are back on track and are actively supporting new initiatives intended to make the logistics more efficient. The market in San Francisco remains strong and the east Bay market is beginning to improve through increased housing development, an inevitable reaction to the high property values in the San Francisco to San Jose corridor."
Photos of the first Long Beach delivery can be viewed at:
Polaris Materials Corporation is exclusively focused on the production of construction aggregates and the development of quarries in British Columbia together with the operation and development of receiving port terminals in markets on the Pacific coasts of North America. Polaris ships sand and gravel from the Orca Quarry, in efficient ocean-going vessels, principally to markets in San Francisco Bay and Long Beach in California, and also to Hawaii.
For further information, please contact:
Herb Wilson, President and CEO
Polaris Materials 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, including maximizing sales opportunities with third parties,sales volumesfrom its main Strategic Alliance Partner and selling prices, the outlook for the remainder of the year, costs of production, the pursuit of supplies for major projects and infrastructure, the San Francisco and east Bay markets, capital and operating expenditures, expected timing of shipments, 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 Short Form Prospectus dated June 20, 2014, which is 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.