Trading Symbol: MCV
TORONTO, Aug. 31 /CNW/ - McVicar Industries Inc. ("McVicar" or the
"Company") is pleased to announce that it has filed its interim financial
statements and management's discussion and analysis (MD&A) for the second
quarter ended June 30, 2009. The detailed financial statements and MD&A can be
found on www.sedar.com. All amounts are in Canadian dollars unless otherwise
McVicar is divided into two operating segments: The Chemical segment,
which includes the production and sale of specialized refined chemical
products, and The Technical segment, which includes the production and sale of
terminal blocks, PCB connectors, and customized design electrical connectors.
Second Quarter and First Half of 2009 Financial Highlights
- Sales for the 2009 second quarter were $8.64 million, compared with
$10.3 million in the 2008 period. For the first half of 2009, sales
were $17.1 million, down from $19.3 million in the 2008 period. The
decreases are primarily the result of reduced demands caused by
global economic weakness.
- Gross profits for the 2009 second quarter were $2.86 million (33% of
sales), up from $2.76 million (27% of sales) in the 2008 period. For
the first half of 2009, Gross profits were $4.86 million (28% of
sales), compared to $5.20 million (27% of sales) in the 2008 period.
This increase was attributable to a number of factors, including
lower raw material prices, less provision of obsolete inventory and
the positive impact due to a $193,797 benefit from the sale of
inventory written down in the fourth quarter of 2008.
- Net profits for the 2009 second quarter were $0.96 million (11% of
sales) or $0.03 per basic and diluted share, up from $0.31 million
(3% of sales) or a $0.01 per basic and diluted share) in the 2008
period. For the first half of 2009, net profits were $1.35 million
(8% of sales) or $0.04 per basic and diluted share, up from
$0.64 million (3% of sales) or a $0.02 per basic and diluted share in
the 2008 period.
- Cash flows generated by operation activities for the 2009 second
quarter and first six months were $1.76 million and $4.42 million,
respectively, compared with negative $0.31 million and negative
$1.30 million in the comparative prior-year periods.
- Changlong reached an agreement with Longshan Chemical Co., Ltd., on
its factory relocation plan, principally regarding a share of an
8,508,614 RMB (approximately $1.45 million CDN) Chinese government
compensation fund attributed to Changlong.
"I am very pleased with the healthy financial results from our operations
even though our revenues have been negatively impacted by the global economic
slowdown. Both the net income and cash flows from our operations have
increased substantially due to measures taken to operating cost controls and
fixing low raw material prices." said Gang Chai, President & CEO of McVicar,
"We continued to focus on a number of important priorities in the first half
of 2009. We successfully enforced our key customer strategy in keeping all our
key customers during the recession period. With the world economic recovery in
sight, we are well positioned to begin a new round of growth".
Developments Subsequent to the End of the Second Quarter of 2009
- Received 4,100,000 RMB (approximately $ 0.7 million CDN) on the
divestiture of 27% equity interest investment in Sino Lion.
- Jite signed a purchase agreement to acquire 56 acres of land with
17,642 square meters of existing buildings in the Kunshan Economic
and Technological Development Zone, Jiangsu Province, China for a
total consideration of RMB 28 million (approximately $ 4.7 million
CDN) in cash. Jite intends to use the purchased land to relocate its
existing manufacturing plant in Shenzhen.
This press release contains forward-looking statements which reflect the
Corporation's current expectations regarding future events. The
forward-looking statements involve risks and uncertainties. Actual results
could differ materially from those projected herein. Although we believe that
our expectations are based on reasonable assumptions, we can give no assurance
that our expectations will materialize. The TSX Venture Exchange Inc. has not
reviewed and does not accept responsibility for the adequacy or accuracy of
For further information:
For further information: Mr. Kevin Ming Zhang, CFO at: 55 University
Avenue, Suite 605, Toronto, ON, M5J 2H7, Tel: (416) 366-7420, Fax (416)