Press release from Marketwire
Nordex Explosives Announces Record Q1 Revenues and Record Q1 Net Profits
Tuesday, May 28, 2013
Nordex Explosives Announces Record Q1 Revenues and Record Q1 Net Profits11:31 EDT Tuesday, May 28, 2013
KIRKLAND LAKE, ONTARIO--(Marketwired - May 28, 2013) - NORDEX EXPLOSIVES LTD. (TSX VENTURE:NXX) ("Nordex") has released its unaudited financial statements for the first quarter of 2013 and is pleased to announce its highest Q1 sales revenues and highest Q1 net profit in the 42 year history of the Company. Record sales revenues are attributed to ongoing diversification and the securing of new business in the construction and quarry markets while maintaining and increasing business with existing customers.
Highlights from the 2013 first quarter include:
Total revenues for the period were $3,526,804, an increase of $260,202, or 8%, over same period revenues of $3,266,602. The increase in Q1 (typically the slowest quarter of the year) demonstrates the increasing confidence in the products and services provided by Nordex to both existing clients as well as new customers in the non-mining segment of the explosives industry. The increase was also achieved in spite of unusually harsh weather conditions experienced this past winter.
The percentage of revenues from non-mining related customers continues to increase and this trend is expected to continue throughout 2013.
Gross profit for the period was $728,071, an increase of $94,773, or 15%, over the same period gross profit of $633,298 in Q1 2012.
Net income after tax for the period was $122,337, an increase of $9,029 over the same period net income after tax of $113,308 in Q1 2012.
Jim Taylor, President & CEO, stated, "This is our 5th successive period of "quarter over quarter" increases in revenue and profitability at Nordex. We will continue to implement our growth strategies and expect reductions in our manufacturing costs through economies of scale as a result of anticipated continued increases in sales volumes in 2013. In addition, Nordex expects to further introduce and promote its new proprietary lines of higher margin specialty products in the second half of the year. Our recent success is a direct result of the ongoing contributions and guidance provided by an experienced professional Board of Directors and the efforts of our valued employees and management team."
The financial information for the periods indicated as set out in this news release is presented on a basis consistent with the accounting principles used to prepare Nordex' most recently filed financial statements. The contents of this news release should be read in conjunction with the complete unaudited financial statements and the Company's annual financial statements and related management discussion and analysis ("MD&A") for the periods under the Company's profile available at www.SEDAR.com. Readers are advised that the Company faces various risk factors with respect to its business and operations: for further information please see the MD&A of Nordex available at www.SEDAR.com.
ABOUT NORDEX EXPLOSIVES: NORDEX EXPLOSIVES LTD. is a manufacturer and distributor of explosives for the mining, quarry and road construction industries since 1970. Its manufacturing operations and distribution centre is strategically located in one of the world's largest mining regions near Kirkland Lake, Ontario. Nordex is the exclusive supplier of the Econotrim and Ezicharge perimeter control explosive products in Canada. Nordex trades on the TSX Venture Exchange under the symbol "NXX".
Additional Information relating to the Company is available on SEDAR at www.sedar.com.
Certain information included herein may contain "forward-looking statements" which reflect the current expectations of management of the Company regarding the Company's future growth, results of operations, performance, business prospects and opportunities. Wherever possible, words such as "may", "would", "could", "should", "will", "anticipate", "believe", "plan", "expect", "intend", "estimate", "aim", "endeavor", "seek", "predict", "potential" and similar expressions have been used to identify these forward-looking statements. These statements reflect management's current beliefs with respect to future events and are based on information currently available to management of the Company. Forward-looking statements involve significant risks, uncertainties and assumptions. Many factors could cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, without limitation, cancellations of or the failure to renew purchase orders; production and delivery issues; quality, pricing and availability of raw materials; compliance with environmental regulations; exchange rate fluctuations as well as the other risks identified in the "Risk Factors" contained in the Company's Management Discussion and Analysis for fiscal 2012 and other public filings (copies of which may be obtained at www.sedar.com). Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results, performance or achievements may vary materially from those expressed or implied by this press release. These factors should be considered carefully and the reader should not place undue reliance on the forward-looking statements. Although any forward-looking statements contained in this press release are based upon what management currently believes to be reasonable assumptions, the Company cannot assure readers that actual results, performance or achievements will be consistent with these forward-looking statements, and management's assumptions may prove to be incorrect. These forward-looking statements are made as of the date of this press release, and, other than as required by law, the Company does not intend, and does not assume any obligation, to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.
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Nordex Explosives Ltd.
Chief Executive Officer