May 7, 2010
Vancouver, B.C., Canada-based Polaris Minerals Corporation reported financial results on May 6 for the quarter ended March 31, 2010. All financial results are in U.S. dollars unless otherwise noted.
Revenue of $4.88 million in the quarter was an increase of 67% over revenue of $2.93 million in the prior year period. The net loss in the quarter of $6.5 million ($0.12 loss per share) included a one-off charge of $6.0 million for restructuring the company’s long-term shipping contracts and compared with a loss of $1.4 million ($0.03 loss per share) in the first quarter last year.
At March 31, 2010, the company had working capital of $9.3 million including cash of $3.7 million. The Adjusted EBITDA loss for the quarter was $878,000 ($0.02 loss per share) compared with $200,000 ($0.00 per share) generated in the prior year.
Herb Wilson, president and CEO, commented in a written statement: “The restructuring of the long term shipping contracts was an essential step that now enables the company to go forward confidently. This amended agreement reflects current growth plans and a continuing positive relationship with our exclusive shipper. The acquisition of the leasehold site held under option in the Port of Long Beach, is proceeding well and as a consequence, we are advancing the sale of the freehold land owned jointly with our strategic alliance partner in the same port. The net result should be a significant return of cash to treasury and an enhanced opportunity to develop into southern California.”
He added: “It was gratifying to see the increased sales volume in the first quarter although the much anticipated uplift in demand through stimulus-funded infrastructure programs has yet to impact significantly. We are well placed to meet an increase in demand and, in common with this industry, continue to anticipate growth commencing in the second half of the year.”
This financial summary should be read in conjunction with the company’s March 31, 2010 Consolidated Financial Statements and Management’s Discussion and Analysis, both of which are available on www.sedar.com as well as the company’s website, www.polarmin.com.
The company will host a conference call at 8:00 am PDT on Monday, May 10, 2010. Investors and other interested parties may access the teleconference live by calling 888-231-8191 in North America or 647-427-7450 internationally.
A live webcast of the conference call will be available through the following link and will be archived for 90 days following the call: http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=3058440.
The conference call will be recorded and available for replay at 11:00 am PDT and will be available until May 24, 2010. To access the replay, dial 1-800-642-1687. The access code to hear the recording is 72190922.