Polaris Announces 2015 First Quarter Results And Conference Call
May 6, 2015
VANCOUVER, British Columbia - Polaris Materials Corporation (TSX:PLS) today reported financial results for the first quarter ending March 31, 2015. The financial results are in US dollars unless otherwise noted.
Sales of 718,000 tons in the first quarter were 14% higher than in the prior year generating revenue of $10.5 million which was 23% higher than the first quarter of 2014. The Company had net income of $246,000 ($0.00 per share) compared with a net loss of $1.6 million ($0.02 loss per share) in the prior year period, an improvement of $1.8 million.
The quarter ended March 31, 2015 produced a gross profit of $0.6 million, or $0.90 per ton, compared with a gross loss of $0.3 million, or $0.50 loss per ton, in the prior year. The Company had a positive EBITDA in the quarter of $1.1 million, or $1.59 per ton, an improvement of $1.6 million over the first quarter of 2014.
Herb Wilson, President and CEO, commented: "We were pleased with the improved performance this quarter which was driven by increased average selling prices together with the benefit of a favourable dollar exchange rate. The combination of these factors produced our best winter quarter result to date. Adjusted EBITDA* of $1.5 million, or $2.10 per ton, compared with a negative $304,000, or negative $0.48 per ton last year. Shipments in the quarter had commenced at a modest level, anticipating the usual impact of winter conditions, but had to be stepped up rapidly in March as good weather and continuing strong demand in the San Francisco/Silicon Valley markets dictated." He continued: "We anticipate further price increases during the year and realizing the full benefit from having completed two fixedprice contracts this quarter that had started in 2013. We are also looking forward to the commencement of operations at the new Long Beach terminal in the second quarter".This financial summary should be read in conjunction with the Company's March 31, 2015, Consolidated Financial Statements and Management's Discussion and Analysis, both of which are available on the Company's website and at www.sedar.com.
The Company has an updated corporate presentation for 2015 which will be posted on the website at www.polarismaterials.com on May 7th.
* Please refer to the attached excerpt below "EBITDA Statements" from the Company's Management's Discussion and Analysis with details of this non-IFRS measure. Adjusted EBITDA is a measure of cash generated from operations.
The Company will host a conference call on Thursday, May 7th, 2015 at 11:00 am Pacific Time. Details to access the call live are as follows:
- Via telephone, toll-free, calling 1-888-390-0546 in North America or 416-764-8688 in Toronto.
- Via webcast live, and to access the archived event, at: http://cnw.ca/Odu1
The webcast will be archived for 90 days following the call at the above noted link. The conference call will also be recorded and available for replay until May 21, 2015, at 11.29PM. To access the replay, dial 1-888-390-0541 or 416-764-8677 and use Playback Passcode 993188# to hear the recording.
Polaris Materials Corporation is exclusively focused on the development of quarries and the production of construction aggregates in British Columbia for marine transportation to urban markets on the west coast of North America to meet 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
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, increases in sales volumes and selling prices, 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 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 forwardlooking statements and information attributable to us or persons acting on our behalf are expressly qualified in their entirety by the foregoing cautionary statements.
EBITDA and Adjusted EBITDA
EBITDA, adjusted EBITDA, EBITDA per share and adjusted EBITDA per share ("EBITDA Metrics") are non-IFRS financial measures. EBITDA and EBITDA per share represent net income, excluding income tax expense, interest expense and amortization and accretion. Adjusted EBITDA and adjusted EBITDA per share better reflects the underlying business performance of the Company by removing certain non-cash adjustments from its calculation of EBITDA and EBITDA per share. The Company believes that the EBITDA Metrics trends are valuable indicators of whether its operations are generating sufficient operating cash flow to fund working capital needs and to fund capital expenditures. The Company uses the results depicted by the EBITDA Metrics for these purposes, an approach utilized by the majority of public companies in the construction materials sector. The EBITDA Metrics are intended to provide additional information, do not have any standardized meaning prescribed by IFRS and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These measures are not necessarily indicative of operating profit or cash flow from operations as determined under IFRS. Other companies may calculate these measures differently.
The following table reconciles these non-GAAP measures to the most directly comparable IFRS measure.
|Three months ended March 31,|
|($000's except per share and per ton amounts)||2015||2014|
|Net profit (loss) for the period attributed to shareholders of Polaris||90||(1,526)|
|Amortization, depletion and accretion||1,079||1,125|
|Share-based employee benefits||371||173|
|Other (gains) and losses||(5)||(2)|