Symax Lift (Holdings) Announces First Quarter Financial Results
May 30 2012 - 9:20AM
Marketwired Canada
Symax Lift (Holdings) Co. Ltd. (TSX VENTURE:SYL) ("Symax" or the "Company")
announces its financial results for the three-month period ending March 31,
2012.
Highlights
-- Sales increased to $4.9 million during the first quarter of 2012,
representing a 51% increase over the same quarter of previous year. The
Company closes its operations for 3 weeks during the Chinese New Year
holiday and, as such, the Company generally experiences reduced sales
activity during this quarter.
-- The Company has seen continued success in its new product launches.
Sales of Dingtai Passenger Elevator continued to grow to represent $2.7
million during the quarter. Further, during the first quarter, the
Company launched its new Green Passenger Elevator product line targeted
at the lower rise government housing and tier 3 and 4 city developments
as well as the export market. In its first quarter of launch, this
product achieved $1.5 million in sales and 29% gross margins.
-- Gross profit increased to $1.3 million during the first quarter of 2012,
representing a 55% increase over the same quarter of previous year. This
improvement was due to higher export sales, which contributed to an
improvement in gross margin to 26% in the first quarter from 25% in the
same quarter of last year.
-- Holiday-related lower production during the first quarter of 2012,
coupled with unusually high selling expenses, resulted in a 22% increase
in net loss to $242,000 ($0.00 per share) compared to $199,000 ($0.00
per share) in 2011. During the first quarter EBITDA was $32,000,
representing an increase of 33% over the same quarter of last year.
-- As at March 31, 2012 the Company had total cash of $3.3 million and
short term bank loans of $8.1 million.
-- Symax has undertaken an expansion of its domestic Chinese business at
Wanzhou which, upon completion, is expected to double the Company's
production capacity by 2014. The Company has also undertaken an
expansion of its service network in support of its geographic expansion.
"With our Dingtai and new Green elevator products, Symax is establishing market
position in the domestic Tier 3 and 4 cities and government housing
marketplace," stated Ms. Sabrina Zhang, CEO of Symax. "Continued investments in
our sales and service network together with the expansion at Wanzhou will enable
the Company to continue to expand and service our growing customer base in
China."
With the launch of the Green product line, the company experienced an increase
in exports during the quarter to 20% compared with 12% in the same period of
2011. This higher level of exports contributed to higher margins during the
quarter.
SUMMARY FINANCIAL STATEMENTS
in thousands of Canadian dollars except per share and percentage data
Three Months Ended March 31
-------------------------------------
2012 2011 % Change
-------------------------------------
Sales 4,922 3,255 51.2%
Gross profit 1,265 817 54.8%
Gross margin 26% 25%
Operating expenses 1,390 919 51.2%
Operating income (loss) (125) (102) -22.5%
Other income (loss) (173) (75)
Income taxes 56 (21)
Net income (loss) (242) (198) -22.2%
EBITDA 32 24 33.3%
Earnings per share - basic $(0.00) $(0.00)
Earnings per share - diluted $(0.00) $(0.00)
Balance Sheet Highlights As at As at
3/31/12 12/31/11
Total assets 32,098 33,992
Current liabilities 22,550 23,941
Long term liabilities 481 571
Shareholders' equity 9,067 9,480
During the first quarter of 2012, the Company incurred unusually high selling
expenses as a result of promotional activities associated with new product
launch as well as the cost associated with the bi-annual sales agent conference.
Holiday-related lower production in the first quarter coupled with these unusual
sales expenses, the Company incurred a net loss of $242,000 during the quarter
compared with a loss of $198,000 in the same period of 2011.
Symax maintains a strong balance sheet with $3.3 million in cash and total loans
of $8.1 million.
Expansion Initiatives
Symax has undertaken an expansion of its domestic Chinese business with a new
manufacturing facility located in Wanzhou. The land use rights for this facility
have been acquired and construction will commence in the second quarter of 2012.
Upon completion, this facility is expected to double the Company's production
capacity by 2014.
The Company has also undertaken an expansion of its service network in support
of its geographic expansion.
About Symax Lift Holdings
Symax is in the business of the development, manufacturing, and sale of
elevators, as well as the provision of after-sales services in China and
worldwide. Symax's products and services are classified into two separate
offerings; a main line of standardized products which include passenger
elevators, goods/freight elevators, villa elevators, panorama elevators,
hospital elevators, residential and commercial escalators and moving walkways;
and customized elevator products.
This news release contains certain statements that may be deemed "forward
looking statements". Forward looking statements are statements that are not
historical facts and are generally, but not always, identified by the words
"expects", "plans", "anticipates", "believes", "intends", "estimates",
"projects", "potential" and similar expressions, or that events or conditions
"will", "would", "may", "could" or "should" occur. Although the Company believes
the expectations expressed in such forward looking statements are based on
reasonable assumptions, such statements are not guarantees of future performance
and actual results may differ materially from those in forward looking
statements. Forward looking statements are based on the beliefs, estimates and
opinions of the Company's management on the date the statements are made. The
Company undertakes no obligation to update these forward looking statements,
except as required by law, in the event that management's beliefs, estimates or
opinions, or other factors, should change.