TORONTO, March 3, 2014 /CNW/ - McVicar Industries Inc. ("McVicar" or the "Company") (TSXV: MCV) today announces that the Company has filed its unaudited interim consolidated financial results for the three months and twelve months ended December 31, 2013. All figures are in Canadian dollars unless otherwise stated. The unaudited interim consolidated financial statements and Management Discussion and Analysis may be downloaded from www.sedar.com.
The chemical business operated by Zhejiang Hongbo Chemical Co. Ltd., ("Hongbo") a wholly-owned subsidiary of the Company, was discontinued in late 2013.
Revenue for the fourth quarter ended December 31, 2013 were $4.4 million, up 17% from $3.8 million for the same period of 2012. These significant increases were due mainly to increased sale from the Technology products. The sales of Technology products grew by 17% to $4.3 million from $3.7 million for the same period of 2012 due to a resumption of sales to its previous one big client. The sales of Chemical products were $0.13 million, flat versus the same period of 2012.
Revenue for the twelve months ended December 31, 2013 were $17.9 million, up 14% from $15.7 million for the same period of 2012, of which the sales of Technology products were up 14%, and the sales of the Chemical products were flat, versus the same period of 2012.
Gross profit for the fourth quarter increased by $0.4 million (or 42%) to $1.5 million and for the twelve months increased by $1.6 million (or 37%) to $5.9 million, compared to the same periods of 2012. Gross profit as a percentage of sales for both the fourth quarter and the twelve months improved by 5% to 33% compared to 28% for the same periods of 2012. The technology products gross margins year-over-year improved by 5% reflecting less provision for obsolete and slow-moving inventories, and improved margins resulted from termination of sales to some low-margin products distributors in the second half of 2012 with an aim to streamline its production.
Net income for the fourth quarter was $0.4 million or $0.010 per share compared to net loss of $0.2 million or $0.003 loss per share for the same period of 2012. Net income for the twelve months was $2.1million or $0.060 compared to $0.4 million or $0.016 per share for the same period of 2012.
As of December 31, 2013, the assets and liabilities of the Hongbo have been reclassified as held-for-sale in accordance with IFRS 5. The classification as held-for-sale led to an impairment of $6.9 million, which was recognized in the net loss from discontinued operations. In addition, the Company also recorded a goodwill impairment charge of $4.2 million which was originally recognised in connection with acquisition of the Hongbo.
As of December 31, 2013, the Company had $7.9 million in cash and cash equivalents, and a working capital balance of $14.3 million.
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 three 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:
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.