Nordex Explosives Ltd.

Nordex Explosives Ltd.

November 28, 2012 11:23 ET

Nordex Explosives Announces Net Profits for Third Consecutive Quarter in 2012

KIRKLAND LAKE, ONTARIO--(Marketwire - Nov. 28, 2012) -


NORDEX EXPLOSIVES LTD. (TSX VENTURE:NXX) ("Nordex" or the "Company") is pleased to announce that its 3rd quarter financial results included record quarterly revenues and a net profit for the third consecutive quarter in 2012.

Nine Months
Nine Months
Revenues $ 3,960,224 $ 3,198,620 $ 10,867,921 $ 8,720,597
Cost of Goods Sold $ 3,158,704 $ 2,611,247 $ 8,706,620 $ 7,016,683
Gross Profit $ 801,520 $ 587,373 $ 2,161,301 $ 1,703,914
Expenses $ 395,834 $ 450,218 $ 998,811 $ 1,428,313
EBITDA $ 405,686 $ 137,155 $ 1,162,490 $ 275,601
Net Income (Loss) Before Taxes $ 150,756 $ (33,327 ) $ 448,787 $ (247,242 )

Total sales for the months of July, August and September, 2012 were $3,960,224. This represents an increase of $761,604, or 23.8% over the 2011 same period total sales of $3,198,620.

Total sales for the nine months ending September 30th, was $10,867,921. This represents an increase of $2,147,324 or 24.6% over the same period total sales of $8,720,597 in 2011. This resulted in net income after tax of $329,652 for the first nine months of 2012. This compares to a net loss after tax of $(189,796) for the first nine months of 2011. The net profit is primarily attributable to the increase in revenues and a reduction in administrative expenses.

Earnings before interest, taxes, depreciation and amortization (EBITDA), which is an indication of operational profitability, has improved significantly in the first nine months of 2012, from $275,601 as of September 30, 2011 to $1,162,490 as of September 30, 2012.

Jim Taylor, President & CEO, stated, "We are pleased with the increased acceptance of our proprietary line of bulk and packaged emulsion products as clients in both the mining and construction industries recognize the economic advantages of Nordex being their explosives supplier of choice. Our reputation is based on providing superior products and the highest levels of service in the industry. We work with our clients to help them maximize their results and believe our success is reflected by our continued growth. We are very proud of the fact Nordex is truly a Canadian company manufacturing products in Canada for the benefit of Canadians."

Nordex recently announced the opening of a new strategic distribution site. The site is located in the Muskoka Region of Ontario. It is estimated the total market size within a 200 kilometer radius from this location is $25,000,000 in annual explosives sales to quarry, construction and mining companies. This site is the first of three such locations expected to be added by the end of 2013.

Nordex also announced it closed its previously announced non-brokered private placement offering of common shares after the end of the quarter. The offering was oversubscribed with the Company issuing 9,521,867 shares at a price of $0.45 per share to raise gross proceeds of $4,284,840.15. The net proceeds will be used to fund investment in the Company's distribution system and for additional working capital.

The financial information for the periods indicated as set out in this news release is presented on a basis consistent with the accounting principles used to prepare Nordex' most recently filed financial statements. Readers are advised that the Company faces various risk factors with respect to its business and operations.

For further information, including risk factors affecting the Company, see the Management Discussion and Analysis of Nordex at

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 is the exclusive supplier of the Econotrim and Ezicharge Johnex Explosives products in Canada. Nordex trades on the TSX Venture Exchange under the symbol "NXX".

Forward-Looking Statements

Certain information included herein may contain "forward-looking statements" which reflect the current expectations of management of the Company regarding the Company's future growth, results of operations, performance, business prospects and opportunities. Wherever possible, words such as "may", "would", "could", "should", "will", "anticipate", "believe", "plan", "expect", "intend", "estimate", "aim", "endeavor", "seek", "predict", "potential" and similar expressions have been used to identify these forward-looking statements. These statements reflect management's current beliefs with respect to future events and are based on information currently available to management of the Company. Forward-looking statements involve significant risks, uncertainties and assumptions. Many factors could cause the Company'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 statements, 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 Company's Management Discussion and Analysis for the Third Quarter and other public filings (copies of which may be obtained at Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements 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 statements. Although any forward-looking statements contained in this press release are based upon what management currently believes to be reasonable assumptions, the Company cannot assure readers that actual results, performance or achievements will be consistent with these forward-looking statements, 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 Company does not intend, and does not assume any obligation, to update or revise these forward-looking statements, 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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