MCVICAR INDUSTRIES INC. ANNOUNCES THIRD QUARTER RESULTS
Trading Symbol: MCV
TORONTO, Nov. 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 nine month periods ending September 30, 2010. The detailed financial statements and MD&A can be found on www.sedar.com.
Third Quarter and First Nine Months of 2010 Financial Highlights
During the nine months ended September 30, 2010 the Company, despite the Changlong subsidiary production being suspended, reported satisfactory results for the period.
- Sales: sales for the third quarter of 2010 were $8.2 million, down 13% from $9.5 million for the third quarter of 2009, due to the suspension of operations of Changlong Sales for the first nine months of 2010 were $25.6 million, 4% less than for the nine months period in 2009.
- Gross profit: $2.49 million for the third quarter of 2010, being 22% lower than $3.2 million in the third quarter of 2009. Gross profit for the nine months of 2010 was $7.93 million, a 2% decrease from $8.06 million of the period of 2009.
- Operating income: $0.78 million for the third quarter of 2010, 48% less than $1.50 million in the third quarter of 2009. Operating income for the nine months of 2010 was $3.13 million, a 5% growth from $2.98 million of the period of 2009. The operating income in the third quarter of 2010 is reduced by a $238,720 one-time write down of intangible assets.
- Net income and earnings per share: net income was $0.60 million for the third quarter of 2010, a decrease of 32% compared to $0.88 million in the third quarter of 2009. Earnings per share for the third quarter of 2010 was $0.02 compared to $0.03 in the third quarter of 2009. Net income was $2.06 million for the nine months of 2010, a decrease of 8% compared to $2.23 million in the nine months of 2009. Earnings per share for the nine months of 2010 was $0.06 compared to $0.06 in the nine months of 2009.
- Cash flows generated by operation activities: a $2.58 million of cash flows for operating activities in the third quarter of 2010, compared to $0.47 million cash from operating activities for the third quarter of 2009. Cash flows from operating activities for the nine months of 2010 was $2.03 million, compared to $4.90 million from the nine months of 2009.
"Although the operations of Changlong were basically suspended in the third quarter for moving, and the sales and net income of our chemical section were affected, the sales of our technical section continued to grow so the sales for the group as a whole were comparable to the second quarter of 2010. The Company was able to control and reduce the administration expenses for the group, especially for Changlong, and the net income of the Company before one-time write downs were not significantly affected by the suspension of Changlong." Said Winfield Ding, CFO of McVicar.
About 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.
For further information: For further information:
McVicar Investor Contact: Ms. eXavier Peterson or Mr. Winfield Ding, Chief Financial Officer, Tel: (416) 366-7420;[email protected] or [email protected]
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