Trading Symbol: MCV
TORONTO, Aug. 30 /CNW/ - McVicar Industries Inc. ("McVicar" or the "Company") announces today that it has filed its unaudited interim financial statements and management's discussion and analysis ("MD&A") for the three and six month periods ending June 30, 2010. The detailed financial statements and MD&A can be found on www.sedar.com.
Second Quarter and First Half of 2010 Financial Highlights
During the second quarter of 2010 the Company, despite the Changlong subsidiary production being suspended, reported satisfactory results.
- Sales: sales for the second quarter of 2010 were $8.6 million,
approximately the same as the second quarter of 2009. Sales for the
first half of 2010 were $17.3 million, being approximately the same
as the first half of 2009.
- Gross profit: $2.74 million for the second quarter of 2010, being 4%
lower than $2.85 million in the second quarter of 2009. Gross profit
for the first half of 2010 was $5.44 million, a 12% growth from $4.86
million of the first half of 2009.
- Operating income: $1.1 million for the second quarter of 2010, an
increase of 24% compared to $0.91 million in the second quarter of
2009. Operating income for the first half of 2010 was $2.35 million,
a significant 59% growth from $1.48 million of the first half of
- Net income and earnings per share: net income was $0.75 million for
the second quarter of 2010, a decrease of 22% compared to $0.96
million in the second quarter of 2009. The decrease was due to a one-
time gain of $350,507 from disposal of assets in the second quarter
of 2009. Earnings per share for the second quarter of 2010 were $0.02
compared to $0.03 in the second quarter of 2009. Net income was $1.45
million for the first half of 2010, a growth of 8% compared to $1.35
million in the first half of 2009. Earnings per share for the first
half of 2010 was $0.04 compared to $0.04 in the first half of 2009.
- Cash flows generated by operation activities: a negative $1.46
million of cash flows for operating activities in the second quarter
of 2010, compared to $1.76 million cash from operating activities for
the second quarter of 2009. Cash flows from operating activities for
the first half of 2010 was a negative $0.55 million, compared to
$4.4 million from the first half of 2009. The negative cash flows
from operating activities in the periods of 2010 were mainly due to
increased accounts receivable and other receivables.
"The Company reported steady sales and revenue, while the gross margin remains higher compared to previous quarters, continuing to reflect management's cost reduction and product upgrading." said Gang Chai, Chief Executive Officer of McVicar.
Headquartered in Toronto, Canada, McVicar Industries Inc. is focused on the specialty chemical business through interests in companies operating in the People's Republic of China. McVicar's operating companies are specialty chemical companies serving the personal care, pharmaceutical and industrial markets.
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 this release.
SOURCE McVicar Industries Inc.
For further information: For further information: McVicar Investor Contact: Ms. eXavier Peterson or Mr. Winfield Ding, Chief Financial Officer, Tel: (416) 366-7420; email@example.com or firstname.lastname@example.org