Press release from CNW Group
McVicar Announces First Quarter 2013 Results
Friday, May 31, 2013
McVicar Announces First Quarter 2013 Results10:04 EDT Friday, May 31, 2013
TORONTO, May 31, 2013 /CNW/ - McVicar Industries Inc. ("McVicar" or the "Company") today announces that the Company has filed its unaudited interim consolidated financial results for the first quarter ended March 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.
First Quarter 2013 Financial Highlights
Revenues for the first quarter of 2013 were $5.8 million, down by 26% from $7.8 million for the same period of 2012. The sales of Technology products were down by 15% due to termination of sales to some low-margin products distributors in the second half of 2012 with an aim to streamline its production. The sales of the Chemical products were down by 36% due to a decrease in sales to its key European customers.
Gross profit for the first quarter of 2013 was $2.0 million, an increase of 1% from $1.98 million for the same period of 2012. Gross profit as a percentage of sales for the first quarter of 2013 increased by 9% to 35% compared to 26% for the same period of 2012. The increase in gross profit percentage is mainly due to higher margin from both its chemical and technology products.
The gross profit for chemical products for the first quarter of 2013 were $0.87 million, a decrease of $0.2 million, or 20%, compared to $1.08 million for the same period of 2012 as a result of a decrease in sales. Gross profit as a percentage of sales for the first quarter of 2013 was 34%, an increase of 7%, compared to 27% for the same period of 2013. The improved gross margin reflects some improvements in costs with one of its existing products.
The gross profit for technology products for the first quarter of 2013 was $1.1 million, an increase of $0.2 million, or 26%, compared to $0.9 million for the same period of 2012 as a result of improved gross margin despite lower sales. Gross profit as a percentage of sales increased by 11% to 35% for the first quarter of 2013 from 24% for the same period of 2012. The increase in gross margin was positively impacted for the first quarter of 2013 by a reversal of $0.24 million inventory provisions and less additional provisions for slow-moving and obsolete inventories ($0.09 million for Q1'13 versus $0.12 million for Q1'12).
Net income for the first quarter of 2013 was $0.61 million, an increase of $0.02 million from $0.59 million for the same period of 2012. Net income as a percentage of sales increased by 3% to 11% for the first quarter of 2013 from 8% for the same period of 2012 due to due to the reasons noted above relating to higher gross margins, lower operating expenses, partially offset by the sales decreases.
Net earnings per share (basic and diluted) were $0.017 for the first quarter of 2013 compared to $0.014 per share (basic and diluted) for the same period of 2012.
As of March 31, 2013, the Company had $9.1 million in cash and cash equivalents and restricted cash, and a working capital balance of $14.8 million. The Company increased its short-term borrowings under its credit facilities by $0.8 million to $2.9 million as of March 31, 2013.
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 four 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.