Symax Lift (Holdings) Co. Ltd. Announces Second Quarter 2012 Financial Results
August 28 2012 - 9:20AM
Marketwired Canada
Symax Lift (Holdings) Co. Ltd. (TSX VENTURE:SYL) ("Symax" or the "Company")
announces its financial results for the three-month period ending June 30, 2012.
Highlights
-- Gross profit increased to $2.5 million during the second quarter of
2012, representing a 14% increase over the same quarter of the previous
year; gross margin increased to 25% in 2012 from 23% in the same quarter
of the previous year.
-- Sales of the Dingtai Passenger Elevator decreased to $4.4 million,
representing a 33% decrease during the quarter, compared to the second
quarter of the previous year due to the impact of the real estate
development slow-down in Chinese Tier 1 and Tier 2 cities. Despite this,
during the second quarter, the Company's new Green Passenger Elevator
product line targeted at lower rise government housing developments and
tier 3 and 4 city developments continued to grow, this product achieved
$3.3 million in sales with 28% gross margin.
-- Sales increased to $10.1 million during the second quarter of 2012,
representing a 4% increase over the same quarter of previous year.
-- Net income increased to $0.7 million ($0.02 per share) during the second
quarter of 2012, compared to $0.6 million ($0.02 per share) in 2011.
EBITDA was $1.2 million during the second quarter of 2012, representing
an increase of 20% over the same quarter of previous year.
-- Construction of the manufacturing facility located in Wanzhou commenced
in June of 2012. The Company has also undertaken an expansion of its
service network in support of its continuing geographic expansion.
"With our Dingati and new Green elevator products, Symax is continuing to grow
its market position in government housing developments and the domestic Tier 3
and 4 cities marketplace," stated Ms. Sabrina Zhang, CEO of Symax. "Continued
investment in our sales and service network together with the expansion at
Wanzhou will enable the Company to continue to expand and service our growing
customer base in China."
With the launch of the Green product line, the company experienced an increase
in exports during this quarter to 8% of sales compared with 6% in the same
period of 2011. This higher level of exports contributed to higher margins
during the quarter.
SUMMARY FINANCIAL STATEMENTS
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in thousands of
Canadian dollars
except per share
and percentage Three Months Ended Six Months Ended
data June 30 June 30
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% %
2012 2011 Change 2012 2011 Change
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Sales 10,117 9,773 4% 15,039 13,028 15%
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Gross profit 2,545 2,242 14% 3,811 3,058 25%
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Gross margin 25% 23% 10% 25% 23% 8%
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Operating expenses 1,479 1,389 6% 2,869 2,309 24%
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Operating income
(loss) 1066 852 25% 941 750 25%
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Other income
(loss) (213) (111) 92% (387) (186) 108%
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Income taxes 152 111 37% 97 132 -27%
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Net income (loss) 700 630 11% 458 431 6%
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EBITDA 1178 978 20% 1,210 1,002 21%
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Earnings per share
- basic $0.02 $0.02 $0.01 $0.01
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Earnings per share
- diluted $0.02 $0.02 $0.01 $0.01
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Weighted average
number of shares:
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Basic 30,656,666 30,656,666 30,656,666 30,656,666
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Diluted 30,656,666 30,670,049 30,780,210 30,659,586
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Balance Sheet As at As at
Highlights 6/30/12 12/31/11
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Total assets 33,853 33,992
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Current
liabilities 23,382 23,941
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Long term
liabilities 601 571
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Shareholders'
equity 9,870 9,480
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Symax maintains a strong balance sheet with $4.5 million in cash and total loans
of $7.1 million.
Expansion Initiatives
Symax has undertaken an expansion of its domestic Chinese business with a new
manufacturing facility located in Wanzhou. The land use rights for this facility
have been acquired and construction has commenced since June, 2012. Upon
completion, this facility is expected to double the Company's production
capacity by 2014.
The Company has also undertaken an expansion of its service network in support
of its geographic expansion.
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.