Polaris Announces Q1 Sales Volumes, Update on Long Beach and Full Year Outlook
April 13, 2016
VANCOUVER, British Columbia – Polaris Materials Corporation (TSX:PLS) (the “Company”, “Polaris” or “we”) today reported preliminary sales volumes for the quarter ended March 31, 2016. In addition, the company is pleased to update on operations at its Long Beach terminal and the outlook for 2016.
Q1 2016 SALES VOLUMES
Sales volumes in Q1 2016 were 516,000 tons which was modestly below our expected range of 550,000 to 600,000 tons. As previously disclosed, heavy rain in our key markets, as well as scheduled maintenance at one of our Bay Area delivery points, continued to impact volumes. Sales at Long Beach were better than expected during the quarter and, when combined with expectations for several large orders early in Q2, necessitated re-allocating volume from immediate sales to restocking inventory at the Long Beach terminal. Total sales volumes in March 2016 were strong at approximately 314,000 tons which is consistent with our monthly volume expectations for the full year.
LONG BEACH UPDATE
We are pleased to announce that over the past several weeks we have supplied materials for three large foundation pours at the Oceanwide Plaza project, totaling approximately 35,000 tons of sales from our Long Beach Terminal in late March and early April, with a fourth pour for a further 10,000 tons scheduled for later this month. In addition to the large volume pours, we are seeing a better than anticipated volume of daily sales for other smaller projects. Consequently, we are optimistic about our potential for growth in this new market.
The Oceanwide Plaza project is a prestigious 2.5 million sq. ft. multi-use development in downtown Los Angeles with an estimated cost of over $900 million. For more information about the Oceanwide Plaza project and the recent concrete pour, please see the article found here: http://urbanize.la/post/inside-oceanwide-plazas-big-concrete-pour
UPDATE TO OUTLOOK FOR 2016
As a result of actual sales through March, and ongoing discussions with our customers in San Francisco and Long Beach, we have increased confidence in our volume expectations for 2016 and are pleased to announce that we expect full year sales volumes in the range of 3.2 million to 3.5 million tons
- San Francisco volumes currently expected to be 2.9 million to 3.1 million tons
- Long Beach volumes currently expected to be 200,000 to 400,000 tons
- Q2 2016 shipments are currently scheduled in the range of 0.9 million to 1.1 million tons, including at least 2 deliveries to Long Beach
Ken Palko, President and CEO, commented: “Weather-related disruptions to construction activity as well as the previously mentioned maintenance made for a slower than expected first quarter, but March was a robust month and we are seeing very healthy volumes in planned shipments through the second quarter. Long Beach sales and operations have performed better than we initially expected. In addition to the Oceanwide Plaza project, we are in final discussions on several other large, high profile projects for LA in 2016 and continue to be excited about the developments occurring in this market.”
About Polaris Materials Corporation:
Polaris Materials Corporation is engaged in the development and operation of construction aggregate quarries in Canada to supply distribution facilities in the United States through coastal shipping. The Company's active construction aggregate interests consist of its Orca Sand and Gravel Quarry in British Columbia and two associated receiving terminals in Richmond and Long Beach, California. The Company also owns the Black Bear Project located in close proximity to the Orca Quarry, and a controlling interest in the Eagle Rock Quarry Project, located on the south coast of Vancouver Island.
For further information, please contact:
Nicholas Van Dyk
Vice President, Investor Relations and Corporate Development
Polaris Materials Corporation
Tel: (604) 915-5000 Ext. 111
Cautionary Note Regarding Forward Looking Statements
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, including increases in gross margins, increases in sales volumes (including in the Long Beach market), shipments and selling prices, costs of production, capital and operating expenditures, requirements for additional capital, government regulation of quarrying operations, environmental risks, reclamation expenses, and title disputes, the Canadian dollar compared to the US dollar, increases in Californian construction activity and US infrastructure funding, statements regarding potential new customers and the development of Black Bear. 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 in the Company's continuous disclosure documents which are filed with Canadian regulators on SEDAR (www.sedar.com), including 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. Such factors include, amongst others, the effects of general economic conditions, changing foreign exchange rates and actions by government authorities, uncertainties associated with legal proceedings and negotiations, industry supply levels, competitive pricing pressures, mineral resource and reserve estimates and the timing and development of the Black Bear project. 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, except as required by applicable law. All written and oral forward-looking statements and information attributable to us or persons acting on our behalf are expressly qualified in their entirety by the foregoing cautionary statements.