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
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
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
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.
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.
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.
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.
For further information:
Ms. eXavier Peterson or Gang Chai, CEO at: 55 University Avenue, Suite 605, Toronto, ON M5J 2H7 Tel: (416)366-7420 Fax (416)366-7421 www.mcvicar.ca.