VANCOUVER, May 8, 2012 /CNW/ - Polaris Minerals Corporation (TSX: PLS) today reported financial results for the quarter ended March 31, 2012. All financial results are in US dollars unless otherwise noted.
Sales of 498,000 tons were 72% higher than the first quarter of 2011. Revenue for the quarter was $7.1 million, an increase of 91% over the prior year period. The cost of goods sold, net of shipping fuel surcharges, increased by 48%, a 14% reduction per ton compared with the first quarter of 2011.
The net loss attributable to shareholders was $4.3 million ($0.08 loss per share) in the quarter compared with a net loss of $3.7 million ($0.07 loss per share) in the comparative quarter last year. The loss in the quarter included a $0.8 million loss arising from the settlement of the Company's loan with its exclusive shipping contractor. EBITDA for the quarter improved by 29% to negative $1.26 million.
Herb Wilson, President and CEO, commented: "The strong increases in sales and revenue this quarter, coupled with the significant reduction in the unit cost of goods sold, are a continuation of the positive trends we saw emerging during the second half of last year. Demand is continuing to increase in our principal market in northern California through higher levels of privately funded building and construction, and bolstered by the state's announcement in April of more than $8 billion of infrastructure projects in the greater San Francisco Bay area. Price increases were achieved on a proportion of our sales in January which has been followed by further increases effective from the beginning of May. This combination of volume and price advances marks a significant and welcome change in the business climate."
He continued: "The Company's bridge loan and all outstanding debt was repaid in the quarter and consolidated into a single CAD$15 million issue of senior secured notes. Net proceeds were used for general operating purposes, however, liquidity remains a vital focus. Negotiations are advancing for the sale of the Pier B freehold land in Long Beach and we anticipate entering into a second purchase and sale agreement in the near future."
This summary should be read in conjunction with the Company's March 31, 2012, Consolidated Financial Statements and Management's Discussion and Analysis, both of which are available on www.sedar.com as well as the Company's website, www.polarmin.com.
The Company will host a conference call on Wednesday May 9, 2012 at 11:00 am Pacific Time. Details to access the call live are as follows:
- Via telephone by calling 888-231-8191 in North America or 647-427-7450 internationally
- Via webcast at: http://www.newswire.ca/en/webcast/detail/968309/1039117
The webcast will be archived for 14 days following the call at the above noted link. The conference call will also be recorded and available for replay at 2:00 pm PST and will be available until May 23, 2012. To access the replay, dial 1-855-859-2056 or 416-849-0833 and use access code 78756994 to hear the recording.
Polaris Minerals Corporation is exclusively focused on the development of quarries and the production of construction aggregates in British Columbia for marine transport to urban markets on the Pacific coasts of North America to meet growing local supply deficits. In 2007, Polaris began shipping sand and gravel from the Orca Quarry to San Francisco Bay, Vancouver and Hawaii.
This press release contains "forward-looking statements" and "forward-looking information" within the meaning of applicable securities laws. These statements and information appear in this document and include estimates, forecasts, information and statements as to management's expectations with respect to, among other things the future financial or operating performance of the Company, costs and timing of the development of the construction aggregate quarry, the timing and amount of estimated future production, costs of production, capital and operating expenditures, requirements for additional capital, government regulation of quarrying operations, environmental risks, reclamation expenses, and title disputes. Often, but not always, forward-looking statements and information can be identified by the use of words such as "may", "will", "should", "plans", "expects", "intends", "anticipates", "believes", "budget", and "scheduled" or the negative thereof or variations thereon or similar terminology. Forward-looking statements and information are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Readers are cautioned that any such forward-looking statements and information are not guarantees and there can be no assurance that such statements and information will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed under the heading "Risks and Uncertainties" in the Company's Annual Report and under the heading "Risk Factors" in the Company's Annual Information Form (AIF) in respect of its financial year-ended December 31, 2011, both of which are filed with Canadian regulators on SEDAR (www.sedar.com). The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements and information whether as a result of new information, future events or otherwise. All written and oral forward-looking statements and information attributable to us or persons acting on our behalf are expressly qualified in their entirety by the foregoing cautionary statements.
For further information:
Herb Wilson, President and CEO
Polaris Minerals Corporation
Tel: (604) 915-5000