Trading Symbol: MCV
TORONTO, May 2, 2012 /CNW/ - McVicar Industries Inc. ("McVicar" or the "Company") today announces its financial results and management's discussion and analysis (MD&A) for the fourth quarter and the year ended December 31, 2011. The detailed financial statements and MD&A can be found on www.sedar.com. All amounts are in Canadian dollars unless otherwise noted.
Year 2011 Financial Highlights
During the year 2011 the Company, both the chemical group and the technical group of the Company were facing challenges.
- Sales: sales for the year 2011 were $29,873,102, 11% lower than those of the year 2010. Sales for Jite were affected by those of our largest customer in 2010, due to their dramatic business interruption for the year 2011.
- Gross profit: Gross profit for the year 2011 was $7,761,366, a 20% decrease from $9,693,407 of the year 2010. The costs of the restarting of Luyuan in the chemical group and relocation of some of the Changlong projects to Luyuan, along with the sliding in sales to our largest customer in the technical group, had impacted the gross profit.
- Net (loss) income: Net loss was $1,326,115 for the year 2011, compared to net income of $2,876,804 in the year 2010. The income was greatly affected by the full impairment of $2.7 million of goodwill in Jite. Prior to the record for impairment, the income is a positive of $1.4 million.
- Earnings per share: Basic and diluted loss per share for the year 2011 was $0.049 compared to earnings per share of $0.043 in the year 2010. Without the impairment, the company would have generated earnings per share of $0.04.
- Cash flows generated by operation activities: a positive $3,281,270 of cash flows from operating activities in the year 2011, compared to $839,805 cash from operating activities for the year 2010. Both the chemical group and the technical group had substantial increase in the operation cash flows.
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.
For further information:
Please contact 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