Nordex Explosives Ltd.
TSX VENTURE : NXX

Nordex Explosives Ltd.

April 25, 2011 17:53 ET

Nordex Explosives Announces Annual and Fourth Quarter 2010 Results Another Record in Sales for 2010

KIRKLAND LAKE, ONTARIO--(Marketwire - April 25, 2011) -

NOT FOR DISTRIBUTION TO UNITED STATES OF AMERICA WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES OF AMERICA

LES EXPLOSIFS NORDEX LTEE./NORDEX EXPLOSIVES LTD. (TSX VENTURE:NXX) today announced its financial results for the year and the fourth quarter ending December 31, 2010. The year ended December 31, 2010 was the most successful period in the 40 year history of Nordex. This was accomplished as a result of the Corporation winning significant long term contracts with major mining companies that had previously depended on the large multinational suppliers, and an increase in sales to quarry and construction clients.

The Corporation achieved its highest annual sales for the fiscal year ended December 31, 2010. Sales for the 2010 fiscal year were $12,394,961 for an increase of 56% compared to the 2009 sales of $7,936,523. Total sales for the three months ended December 31, 2010 were $2,868,291 for an increase of 35% compared to sales of $2,130,634 for the three months ended December 31, 2009. These record sales are attributed to the following items:

  • securing new mining clients,
  • retaining previous mining clients who resumed or increased operations during the year, and
  • increasing Nordex's market share in the non-mining sectors, specifically the quarry and construction industries.

In 2005, only 25% of Nordex's revenues were from the sale of products manufactured by the Corporation, and remaining revenues were from products bought from the large multinational suppliers and resold by the Corporation. By implementing a strategy of increasing Nordex's manufacturing capabilities and introducing its proprietary line of emulsion explosives products, during the twelve months of 2010 approximately 70% of Nordex's sales were from products manufactured, and services provided, directly by Nordex, reducing the dependency of the Corporation on outside suppliers.

Jim Taylor, Chief Executive Officer stated, "In the past year we have been very successful in exceeding our revenue expectations and diversifying our business. This success is a direct reflection of the efforts of our hard working staff and their dedication to the Company and our community. In spite of several unique "one-time" expenses in 2010 Nordex continued to show a profit on operations. Although we are sure we will encounter many new challenges as we move forward we look forward to 2011 with excitement, optimism, and promise for a bright future."

The Nordex Directors and Management are continuing to advance this strategy by increasing manufacturing and delivery capabilities, specialized customer service offerings and sourcing its own proprietary lines of explosive products. The Corporation has also developed a strategy for expanding its business beyond its traditional market in the Kirkland Lake Region. The Corporation is actively pursuing opportunities with potential clients in both Quebec and Southern Ontario, and is investigating potential satellite operations sites in those areas to enable the Corporation to expand its customer base to a larger geographic area.

Fourth Quarter 2010 Results

The fourth quarter sales in 2010 continued the trend of record sales seen in the prior five quarters. Operating results for the fourth quarter ending December 31, 2010 improved significantly compared to the fourth quarter ending December 31, 2009. Sales increased by 34.6% to $2,868,291for the fourth quarter of 2010 compared to $2,130,634 for the fourth quarter of 2009. Net income for the fourth quarter in 2010 was affected by several unique "one-time" expenses of approximately $325,000. Further details can be found in the Corporation's Annual Management Discussion and Analysis for the fiscal year ending December 31, 2010, which is available under the Corporation's profile at SEDAR at www.sedar.com.

ABOUT NORDEX EXPLOSIVES: LES EXPLOSIFS NORDEX LTEE./NORDEX EXPLOSIVES LTD. is a manufacturer and distributor of explosives for the mining, quarry and road construction industries since 1970. Its manufacturing operations and distribution centre is strategically located in one of the world's largest mining regions near Kirkland Lake, Ontario. Nordex trades on the TSX Venture Exchange under the symbol "NXX".

Forward‐Looking Information – Not for U.S. Distribution

Certain information included herein contains "forward‐looking information" which reflects the current expectations of management of the Corporation regarding the Corporation's future growth, results of operations, performance, business prospects and opportunities. Wherever possible, words such as "may", "would", "could", "should", "will", "anticipate", "forecast", "believe", "plan", "expect", "intend", "estimate", "aim", "endeavour", "seek", "predict", "potential" and similar expressions have been used to identify such forward‐looking information. Certain statements reflect management's current beliefs with respect to future events and are based on information currently available to management of the Corporation. Forward‐looking information involves significant risks, uncertainties and assumptions. Many factors could cause the Corporation's actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward looking information, including, without limitation, cancellations of or the failure to renew purchase orders; production and delivery issues; quality, pricing and availability of raw materials; compliance with environmental regulations; exchange rate fluctuations as well as the other risks identified in the "Risk Factors" contained in the Corporation's Management Discussion and Analysis and other public filings (copies of which may be obtained at www.sedar.comunder the Corporation's profile). Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward‐looking information prove incorrect, actual results, performance or achievements may vary materially from those expressed or implied by this press release. These factors should be considered carefully and the reader should not place undue reliance on the forward‐looking information. Although any forward‐looking information contained in this press release is based upon what management currently believes to be reasonable assumptions, the Corporation cannot assure readers that actual results, performance or achievements will be consistent with such forward‐looking information, and management's assumptions may prove to be incorrect. These forward‐looking statements are made as of the date of this press release, and, other than as required by law, the Corporation does not intend, and does not assume any obligation, to update or revise forward‐looking information, whether as a result of new information, future events or otherwise.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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