Polaris Announces 2008 First Quarter Results and Conference Call
May 15, 2008
VANCOUVER, British Columbia - Polaris Minerals Corporation (TSX:PLS) today reported financial results for the first quarter ended March 31, 2008. All financial results are in US Dollars, unless otherwise noted.
During the quarter the Company generated an adjusted EBITDA of $0.51 million (2007: -$0.66 million) and a gross margin from operations of $0.22 million (2007: $0.02 million). Revenues in the quarter were $6.5 million compared with $0.05 million for the quarter ending March 31, 2007, which was the first operating quarter for the Company.
Loss from operations in the quarter, net of stock based compensation, was $1.43 million compared with a loss of $1.13 million in the quarter ended March 31, 2007. The overall loss reported was $2.46 million, ($0.07 per share) compared with a loss of $4.3 million ($0.14 per share) for the quarter ended March 31, 2007.
At March 31, 2008, the Company had cash and cash equivalents on hand of $10.1 million and, with the exception of capital leases on mobile plant, had no debt.
Marco Romero, Polaris President & CEO, said: "As we look back over our first operational year, we can point to solid customer relationships, high product quality and secure shipping arrangements, all of which have enabled us to exceed our planned first year sales despite the difficult time for the construction industry in California." He added: "The strong operating achievement of the Company in the first quarter was again impacted by rising fuel costs for shipping which have increased by 89% compared with the first half of 2007 and are recovered the year after they occur. Included, for the first time, in operating expenses are costs related to the commencement of operations at the Richmond Terminal, the majority of which are non-cash items relating to the amortization of capital."
Commenting on 2008, Mr. Romero said: "During the first quarter, the Orca Quarry produced over 793,000 tons of sand and gravel and shipped 521,000 tons to California, Hawaii and Vancouver. Very recently, our customers have advised that the construction market has continued to worsen in California, and this is now expected to result in an unprecedented reduction in demand for ready mix concrete this year. As a result, the Company now expects to ship between 2.1 and 2.5 million tons in 2008. This revised sales guidance still represents an increase of between 83 percent and 118 percent over 2007 shipping levels by Polaris, and the upper end of this range would achieve the level originally projected in our IPO and feasibility study. With an eye to the future and working closely with our strategic partner, Cemex, we continue to pursue and evaluate promising new markets for our products and port terminal opportunities in California, Washington and Oregon, with particular emphasis on the ports of Long Beach and San Diego". Mr. Romero concluded that "We are in a strong position to weather the current storm and we expect that our many competitive strengths will allow us to benefit from the inevitable recovery of aggregate demand in California. At current rates of construction spending, California cannot keep up with the infrastructure needs of its growing population, many of which are already critical today."
This financial summary should be read in conjunction with the Company's March 31, 2008 unaudited consolidated financial statements and Management's Discussion and Analysis, both of which will be available on www.sedar.com.
The Company will host a conference call at 8 am PT on Friday, May 16, 2008. Investors and other interested parties may access the teleconference live by calling 416.644.3415 or 800.732.9307 in North America or internationally and 00 800 2288 3501 from the United Kingdom.
A live webcast of the conference call will be available through the link below:
The webcast will be archived for 90 days following the call.
The conference call will be recorded and available for replay at 11 am PT and will be available until May 30, 2008. In North America dial 416.640.1917, and for international calls, dial 877.289.8525. The access code to hear the recording is 21271581 followed by the pound sign.
Polaris Minerals Corporation is exclusively focused on the development of quarries and the production of construction aggregates in British Columbia for marine transport to urban markets on the west coast of North America to meet growing local supply deficits. In 2007, Polaris began shipping sand and gravel from the Orca Quarry to San Francisco Bay, Vancouver, BC and Hawaii.
For further information, please contact:
Marco Romero, President & CEO or
Mike Westerlund, Director, Corporate Development
Polaris Minerals Corporation
Tel: (604) 915-5000
This press release contains "forward-looking statements" and "forward-looking information" within the meaning of applicable securities laws. These statements and information appear in this document and include estimates, forecasts, information and statements as to management's expectations with respect to, among other things the future financial or operating performance of the Company, costs and timing of the development of the construction aggregate quarry, the timing and amount of estimated future production, costs of production, capital and operating expenditures, requirements for additional capital, government regulation of quarrying operations, environmental risks, reclamation expenses, and title disputes. Often, but not always, forward-looking statements and information can be identified by the use of words such as "may", "will", "should", "plans", "expects", "intends", "anticipates", "believes", "budget", and "scheduled" or the negative thereof or variations thereon or similar terminology. Forward-looking statements and information are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Readers are cautioned that any such forward-looking statements and information are not guarantees and there can be no assurance that such statements and information will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed under the heading "Risks and Uncertainties" in the Company's Annual Report and under the heading "Risk Factors" in the Company's Annual Information Form (AIF) in respect of its financial year-ended December 31, 2007, both of which are filed with Canadian regulators on SEDAR ( www.sedar.com ). The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements and information whether as a result of new information, future events or otherwise. All written and oral forwardlooking statements and information attributable to us or persons acting on our behalf are expressly qualified in their entirety by the foregoing cautionary statements.