TORONTO,
May 1, 2013 /CNW/ - McVicar
Industries Inc. ("McVicar" or the "Company") today announces that
the Company has filed its audited consolidated financial results
for the fiscal year ended December 31,
2012. The audited consolidated financial statements and
Management Discussion and Analysis can be downloaded from
www.SEDAR.com. All amounts are in Canadian dollars unless otherwise
noted.
McVicar had an exciting year in its Technology
products group with the 100% acquisition of Jite, and in its
Chemical products group with the purchase of property in an
industrial park in China and the
100% ownership of Changlong. The acquisitions will greatly enhance
its operations and future growth.
Year 2012 Financial Highlights
During the year 2012, the Company, both the
chemical products group and the technology products group, achieved
considerable profitability.
- Sales: sales for the year 2012 were $28,923,058, 4% lower than the year 2011.
- Gross profit: Gross profit for the year 2012 was $9,126,701, an 18% increase from $$7,761,366 of
the year 2011.
- Net (loss) income: Net income was $2,779,850 for the year 2012, compared to net
loss of $1,326,115 in the year 2011.
Net income attributable to shareholders of the Company for the year
2012 was $2,920,747 compared to net
loss of $1,796,096 a year ago.
- Earnings per share: Basic and diluted earnings per share for
the year 2012 was $0.082 compared to
loss per share of $0.049 in the year
2011.
2012 Business Developments
- Acquisition of an 8% non-controlling interest of Changlong: In
June 2012, the Company acquired the
remaining 8% of common shares of Changlong that the Company did not
hold for $352,880.
- Acquisition of an 100% interest of Anhui: In August
2012, the Company won an open bid auction to acquire a 100%
equity interest in Anhui Linghua
Co. Ltd. ("Anhui"), a chemical company located in the Xiangyu
Chemical Industrial Park, Dongzhi County, Chizhou City,
Anhui province China, for a total purchase price of
RMB37,500,000 (approximately
$6.0 million). Anhui Linghua has 200
mu (approximately 130,000 square meters) of land and infrastructure
for a chemical operation. Pursuant to the purchase agreement,
the acquisition was solely comprised of the land use rights,
building and equipment, excluding any liabilities for the periods
prior to the acquisition date. Currently, The Anhui facility is currently under
construction, and the Company is working on a business development
plan for the Anhui plant.
- Acquisition of a 43.8% non-controlling interest in Jite: In
January, 2012 the Company entered into a support agreement with its
56.2% owned subsidiary Jite pursuant to which the Company agreed to
offer to acquire, directly or indirectly, all of the 8,788,363
outstanding common shares of Jite which it did not already own and
up to an additional 1,186,000 shares issuable upon exercise of
existing options of Jite for a cash price of $0.60 per share. As at December 31, 2012 the Company owned 100% of the
common shares of Jite, of which 505,438 untendered shares were
converted to redeemable preferred shares and redeemed at
$0.60 each and are treated as debt
for accounting purposes and will be paid out in future periods when
presented with the appropriate documentation from the previous
holder of the Jite shares.
- Jite (Kunshan) plant: In December
2010 the Company established an assembling facility in the
Kunshan plant for trial production of the products currently sold
to customers. In 2012, the Company determined to suspend the trial
operation in Kunshan plant, because the efficiency and quality of
the assembling was lower than originally expected, and accordingly
the assembling facility was moved back to Jite (Shenzhen). As a result, the buildings of the
Kunshan plants were used for rental purposes to generate additional
income for McVicar.
About McVicar
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.
Forward-Looking Statements
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.