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
Revenue
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
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
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.
Financial Condition
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.
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.