Symax Lift (Holdings) Announces Record Sales and Profitability During 2011
April 30 2012 - 4:35PM
Marketwired Canada
Symax Lift (Holdings) Co. Ltd. (TSX VENTURE:SYL) ("Symax" or the "Company")
announces its financial results for the three-month period and fiscal year
ending December 31, 2011.
Highlights
-- Sales increased during 2011 to a record level of $28.6 million
representing a 48% increase over the previous year.
-- The Company experienced significant growth in sales of its Dingtai
product line of residential elevators. This product line has been
extremely successful in Chinese government funded housing projects as
well as residential and commercial developments in tier 2 and tier 3
cities.
-- Gross profit increased to $6.5 million during 2010, representing a 21%
increase over the prior year. Due to the higher sales of the lower
margin Dingtai product, and higher motor costs, gross margin decreased
to 22.8% from 28.0% the previous year.
-- Despite the increases in sales and gross profits, Symax held the
increase in selling, general and administrative costs to only a 3% from
the previous year at $4.7 million.
-- The higher sales and gross profit resulted in a 147% increase in net
income to $1.0 million ($0.03 per share) compared with $0.4 million
($.02 per share) in 2010, and EBITDA reached $2.3 million during 2011
representing a 97% increase over the previous year.
-- As at December 31, 2011 the Company had total cash of $3.8 million and
short term bank loans of $7.6 million.
-- Symax has undertaken an expansion of its domestic Chinese business and
expects to commence construction of a new manufacturing facility located
in Wanzhou in the spring of this year. This facility will be completed
in stages over the next 2 years and is expected to double to the
Company's capacity. The Company has also undertaken an expansion of its
service network in support of its geographic expansion.
"Symax Lift is extremely proud of our growth and success with our new Dingtai
product line, which last year represented 60% of our total sales. This product's
success has allowed Symax to grow during this period of slowing economic
activity and reduced real estate construction," stated Ms. Sabrina Zhang, CEO of
Symax. "As part of our initiatives to sustain growth, we have undertaken a plant
construction at Wanzhou to service the Southern and Western regions of China
where government housing developments remain strong. We have also been investing
in our sales and service network throughout China."
In addition to the significant contribution of the Dingtai product line during
2011, sales also increased from 49% higher exports, rebranding from the Sanyo
brand and higher sales from installation and parts.
SUMMARY FINANCIAL STATEMENTS
in thousands of Canadian
dollars except per share and
percentage data Twelve Months Ended December 31
2011 2010 % Change
---------------------------------------------
Sales 28,606 19,314 48.1%
Gross profit 6,526 5,399 20.9%
Gross margin 23% 28%
Operating expenses 4,711 4,567 3.2%
Operating income 1,754 750 133.9%
Other income (loss) (457) (224) 104.0%
Income taxes (296) (121) 144.6%
Net income 1,001 405 147.2%
EBITDA 2,306 1,173 96.6%
Earnings per share - basic $0.033 $0.015
Earnings per share - diluted $0.032 $0.015
Balance Sheet Highlights As at 12/31/11 As at 12/31/10
Total assets 33,992 21,884
Current liabilities 23,941 13,791
Long term liabilities 571 264
Shareholders' equity 9,480 7,829
Gross margins were lower during 2011 due to higher sales of the lower margin
Dingtai product as well as from higher cost of motors during the year. The
higher motor costs was a temporary factor and these prices have since returned
to more normal levels.
During 2011, the Company's cash position increased to $3.8 million primarily due
to higher profitability, increased loans, receivables and notes payable. The
Company used $1.4 million of its cash flow to purchase land use rights as part
of its expansion in Wanzhou.
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.