TORONTO,
March 3, 2014 /CNW/ - McVicar
Industries Inc. ("McVicar" or the "Company") (TSXV: MCV) today
announces that the Company has filed its unaudited interim
consolidated financial results for the three months and twelve
months ended December 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.
The chemical business operated by Zhejiang
Hongbo Chemical Co. Ltd., ("Hongbo") a wholly-owned subsidiary of
the Company, was discontinued in late 2013.
Continuing Operations
Revenue for the fourth quarter ended
December 31, 2013 were $4.4 million, up 17% from $3.8 million for the same period of 2012. These
significant increases were due mainly to increased sale from the
Technology products. The sales of Technology products grew by 17%
to $4.3 million from $3.7 million for the same period of 2012 due to a
resumption of sales to its previous one big client. The sales of
Chemical products were $0.13 million,
flat versus the same period of 2012.
Revenue for the twelve months ended December 31, 2013 were $17.9 million, up 14% from $15.7 million for the same period of 2012, of
which the sales of Technology products were up 14%, and the sales
of the Chemical products were flat, versus the same period of
2012.
Gross profit for the fourth quarter increased by
$0.4 million (or 42%) to $1.5 million and for the twelve months increased
by $1.6 million (or 37%) to
$5.9 million, compared to the same
periods of 2012. Gross profit as a percentage of sales for
both the fourth quarter and the twelve months improved by 5% to 33%
compared to 28% for the same periods of 2012. The technology
products gross margins year-over-year improved by 5% reflecting
less provision for obsolete and slow-moving inventories, and
improved margins resulted from termination of sales to some
low-margin products distributors in the second half of 2012 with an
aim to streamline its production.
Net income for the fourth quarter was
$0.4 million or $0.010 per share compared to net loss of
$0.2 million or $0.003 loss per share for the same period of
2012. Net income for the twelve months was $2.1million or $0.060 compared to $0.4
million or $0.016 per share
for the same period of 2012.
Discounted operations
As of December 31,
2013, the assets and liabilities of the Hongbo have been
reclassified as held-for-sale in accordance with IFRS 5. The
classification as held-for-sale led to an impairment of
$6.9 million, which was recognized in
the net loss from discontinued operations. In addition, the Company
also recorded a goodwill impairment charge of $4.2 million which was originally recognised in
connection with acquisition of the Hongbo.
Financial Conditions
As of December 31,
2013, the Company had $7.9
million in cash and cash equivalents, and a working capital
balance of $14.3 million.
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 three
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.