Polaris Announces Q3 Sales Volumes
October 17, 2016
VANCOUVER, British Columbia – Polaris Materials Corporation (TSX:PLS) (the “Company”, “Polaris” or “we”) today reported preliminary sales volumes for the quarter ended September 30, 2016.
Q3 2016 SALES VOLUMES
Sales volumes in Q3 2016 were 810,000 tons, an increase of 11% over Q3 2015. YTD sales volumes are 2.27 million tons, an increase of 7% over the same period in 2015, and consistent with our full-year guidance. Q3 sales volumes included 62,000 tons from our Long Beach terminal, bringing sales volumes through Long Beach to 155,000 tons since the start of operations in February. Shipments in the quarter were 788,000 tons, which was within our expected range of 0.7 to 0.9 million tons.
Volumes in the quarter were characterized by a slower pace at the start of the quarter with a significant ramp-up through September and a high pace of activity continuing into October. Our Richmond terminal in particular has shown very healthy levels of activity, including a year-to-date one day sales record of 3,712 tons. In Long Beach, we were awarded 100% of the concrete aggregate supply for a large project in South Park, LA, with work having already commenced in Q4 2016. Expected demand for this project is approximately 75,000 tons of aggregate over a 12-18 month build. We continue to see many other high and mid-rise residential and multi-use projects with designs that utilize high performance concrete for which Orca aggregates have unmatched benefits. There is a healthy sales pipeline in Long Beach as we look forward to 2017.
We are currently expecting shipments in Q4 2016 in the range of 700,000 to 900,000 tons, which is consistent with our full year expectations of sales volumes in the range of 3.0 to 3.2 million tons.
Ken Palko, President and CEO, commented: “Activity in Q3 was very healthy, and we continue to track well for our full year target of 3.0 to 3.2 million tons, which represents an increase of two to nine percent versus 2015. As we begin to focus on planning for 2017, we see a number of opportunities to achieve ‘same store’ volume growth, continue to demonstrate and achieve value for our high quality concrete aggregates, and diversify our product offering through the development of additional products. We intend to share more detail about these exciting developments in the coming months.”
About Polaris Materials Corporation:
Polaris Materials Corporation is engaged in the development and operation of construction aggregate quarries in Canada to supply distribution facilities in the United States through coastal shipping. The Company's active construction aggregate interests consist of its Orca Sand and Gravel Quarry in British Columbia and two associated receiving terminals in Richmond and Long Beach, California. The Company also owns the Black Bear Project located in close proximity to the Orca Quarry, and a controlling interest in the Eagle Rock Quarry Project, located on the south coast of Vancouver Island.
For further information, please contact:
Nicholas Van Dyk
Vice President, Investor Relations and Corporate Development
Polaris Materials Corporation
Tel: (604) 915-5000 Ext. 111
Cautionary Note Regarding Forward Looking Statements
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 increases in gross margins, increases in sales volumes (including in the Long Beach market), shipments 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, the Canadian dollar compared to the US dollar, increases in Californian construction activity and US infrastructure funding, statements regarding potential new customers and the development of Black Bear. 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 in the Company's continuous disclosure documents which are filed with Canadian regulators on SEDAR (www.sedar.com), including 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. Such factors include, amongst others, the effects of general economic conditions, changing foreign exchange rates and actions by government authorities, uncertainties associated with legal proceedings and negotiations, industry supply levels, competitive pricing pressures, mineral resource and reserve estimates and the timing and development of the Black Bear project. 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, except as required by applicable law. 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.