Polaris Announces Q3 2017 Sales Volumes, Further Increase to Full Year Sales Expectations
October 17, 2017
VANCOUVER, British Columbia – Polaris Materials Corporation (TSX:PLS) (the “Company”, “Polaris” or “we”) today reported preliminary sales volumes for the quarter and nine months ended September 30, 2017 and further increased its full year sales expectations.
Q3 2017 SALES VOLUMES
Sales volumes in Q3 2017 were 973,000 tons, an increase of 50% over Q2 2017, and broadly in line with our expectations for the quarter. Two ships with total freight of approximately 160,000 tons were under way to the San Francisco Bay Area at the end of the quarter, but did not arrive in time to be counted as sales in Q3. Had these ships arrived as per our original nominated schedule, Q3 volumes would have been at the top end of our expectations. Year to date, sales volumes are 2.18 million tons, compared to 2.27 million tons in the first nine months of 2016. Sales volumes year to date are 4% below 2016, but grew by nearly 18% YTD on a like to like basis (excluding the impact of the conclusion of the Hanson contract), and would have been up by 3% had the above-noted ships arrived according to our original commitment dates.
Volumes in our Long Beach terminal continued to climb, with sales of 103,000 tons during the quarter and 243,000 tons year to date. Delays in ramp-up at Silver Lake and the LA Rams stadium continued to impact demand, however we have added several additional projects to the schedule in Q4 and currently have nearly 200,000 tons scheduled for delivery to LA during the balance of the year.
We are pleased to confirm our second sale of Fine Sand occurred in the quarter, with a shipment being delivered to Hawaii in September, and a third shipment currently scheduled for December 2017. Our Orca quarry team continues to operate safely and has now passed 760 days of operations without a lost time incident.
FURTHER INCREASE TO FULL YEAR VOLUME EXPECTATIONS
We are pleased to announce that we now expect full year sales volumes to be 3.2 to 3.4 million tons, a 6-12% increase from 2016 and a 400,000 ton increase from our initial expected range for 2017. The increase is primarily driven by improved market share in San Francisco, as local supply continues to see significant constraints to availability.
Current sales expectations for Q4 2017 are in the range of 1.1 to 1.3 million tons, consistent with our increased full year expectations. As noted above, we had two ships which were in transit to the San Francisco Bay Area and we have a further 14 ships committed to deliveries to San Francisco, Los Angeles, and Hawaii during Q4, for a total of 16 deliveries scheduled during the quarter. We continue to focus on managing operating costs while positioning the business to meet significantly increased demand.
Ken Palko, President and CEO, commented: “Q3 was among our best quarters operationally, although we were disappointed that vessel scheduling issues led to two shipments arriving past the end of the quarter. Ongoing developments in the San Francisco Bay Area have contributed positively to our volume expectations, and mean that Q4 and full year 2017 have the potential to be among our best ever. We are proud of the work that our team has done to position us as a premier construction aggregate producer with real strategic value.”
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. 104
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 sales volumes, sales expectations, number of deliveries, increases in demand, shipments, 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, and increases in Californian construction activity and US infrastructure funding. 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, and mineral resource and reserve estimates. 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.