TORONTO,
Nov. 29, 2013 /CNW/ - McVicar
Industries Inc. ("McVicar" or the "Company") today announces that
the Company has filed its unaudited interim consolidated financial
results for the three months and nine months ended September 30, 2013. All figures are in
Canadian dollars unless otherwise stated. The unaudited interim
consolidated financial statements and Management Discussion and
Analysis may be downloaded from www.sedar.com.
Sales for the third quarter were $5.8 million, down 14% from $6.7 million for the same period of 2012. Sales
for the first nine months were $18.7
million, down 13% from $21.5
million as compared to the same period of 2012. The
decreases for the quarter and YTD 2013 were mainly attributable to
decreased sales from its chemical business due to its Zhejiang
Hongbo Chemical Co. Ltd. ("Hongbo") plant occupation.
Gross profit for the third quarter was
$1.7 million, down 25% from
$2.3 million for the same period of
2012. Gross profit for the first nine months was $6.6 million, down 1% from $6.7 million compared to the same period of 2012.
Gross margin for the third quarter decreased to 30% from 34%
compared to the same period of 2012. Gross margin for the first
nine months increased to 35% compared to 31% for the same period of
2012.
Net loss for the third quarter was $4.8 million or $0.135 per share compared to net income of
$1.0 million or $0.027 per share for the same period of 2012. Net
loss for the first nine months was $2.9
million or $0.080 per share
compared to a gain of $2.5 million or
$0.071 per share for the same period
of 2012.
One-time expenses included in the Company's
income for the third quarter of 2013:
- A $4.2 million goodwill
impairment charge in connection with the Company's chemical
business.
- $0.9 million provision charge for
the possible settlement of the occupation of the Hongbo plant.
Financial Conditions
As of September 30,
2013, the Company had $7.2
million in cash and cash equivalents, and a working capital
balance of $15.3 million.
Business Update on the Hongbo Plant
Hongbo, through binding arbitration by the local
labour dispute arbitration committees, reached a settlement with
the occupying group including all employees of Hongbo on
November 25, 2013. Pursuant to the
settlement agreement, all the employees of the Hongbo plant will be
laid off to clear the labour relationship, and a compensation
package in the amount of RMB
5,386,258 ($904,000) will be
fully paid by the Company before December 6,
2013. Further, the Company is required to pay to some of the
employees, if any, for their work-related illnesses, which will be
subject to the upcoming heath examination results. The future
business plan of Hongbo is under further review.
About McVicar
McVicar Industries Inc., headquartered in
Toronto, Canada, is focused on
investments and acquisitions of businesses in China. At present, McVicar has operations in
both electronic components and specialty chemicals in four
operations in China.
Forward-Looking Statements
Information set forth in this news release may
involve forward-looking statements under applicable securities
laws. The forward-looking statements contained herein are expressly
qualified in their entirety by this cautionary statement. The
forward-looking statements included in this document are made as of
the date of this document and the Company disclaims any intention
or obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise,
except as expressly required by applicable securities legislation.
Although Management believes that the expectations represented in
such forward-looking statements are reasonable, there can be no
assurance that such expectations will prove to be correct. This
news release does not constitute an offer to sell or solicitation
of an offer to buy any of the securities described herein and
accordingly undue reliance should not be put on such.
Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSXV) accepts responsibility for the adequacy or accuracy of this
release.
SOURCE McVicar Industries Inc.