MONTREAL, QUEBEC--(Marketwire - Feb. 28, 2011) - Perlite Canada inc. (TSX VENTURE:PCI) (the «Company») announces hereby the results for the year ended October 31, 2010 ("Fiscal Year 2010").
Fiscal Year 2010 as was the previous fiscal year of the Company ended as at October 31, 2009 ("Fiscal Year 2009"), has been a transitional fiscal year and was marked by the integration of the perlite and vermiculite processing plant located in Lachine (Quebec) acquired during Fiscal Year 2009.
The company has completed optimization works on the expanded perlite processing system of the Lachine plant during the Fiscal Year 2010 which works started during the fourth quarter of Fiscal Year 2009. Their completion allowed the Company to implement a consolidation and rationalization plan in order to reduce the Company's operation costs. In the context of this rationalization plan, the Company among other things terminated operations in its vermiculite and perlite processing plant located in Baie-du-Febvre (Quebec) in order to transfer the activities of this plant to its Lachine (Quebec) and Saint-Pacôme (Quebec) plants and moved its head office in the Lachine plant's premises in order to centralize administration of the Company.
These consolidation and rationalization efforts and more specifically the Baie-du-Febvre shutdown, resulted in a lower level of losses without affecting its level of sales. Indeed, the Company generated in Fiscal Year 2010 a similar sales total then the one recorded during Fiscal Year 2009, namely $6,777,430 for Fiscal Year 2010 compared to $6,810,413 for Fiscal Year 2009. The Company recorded a loss before taxes of $506,520 and a net loss of $329,964 for Fiscal Year 2010 compared to a loss before taxes of $680,689 and a net loss of $432,736 for Fiscal Year 2009. Notwithstanding these losses, and the fact that the rationalization and consolidation plan has not been completed, the Company realised an income before amortization and interests of $271,452 during Fiscal Year 2010 comparatively to an income before amortization and interests of $96,367 for Fiscal Year 2009, an increase of approximately 181 %.
The rationalization efforts underway during the Fiscal Year 2010 thus have borne fruit and Management of the Company anticipates to complete the rationalization and consolidation plan during the next fiscal year, 2011.
As at February 16, 2011, the Company has accepted a conditional offer for the purchase of the buildings and certain other assets located in Baie-du-Febvre in consideration of a purchase price of $250,000, payable cash at the closing of the transaction. This purchase offer is conditional among other things to the raising of capital necessary to the transaction and in obtaining the required municipal authorizations. This offer is valid for a period of 90 days. In order to take in consideration this offer, the Company incurred losses on depreciation of property and equipment destined for sale amounting to $100,045 during Fiscal Year 2010.
Perlite Canada inc. has become a leading company in Canada in the processing, distribution and sale of perlite and vermiculite, two minerals used in industry and horticulture.
The common shares of Perlite Canada inc. are listed for trading on the TSX Venture Exchange.
This press release contains forward-looking statements to which are associated some risks and uncertainties. Any statement contained in this present press release that does not constitute an historical fact can be considered as a forward-looking statement. In this present press release, verbs such as "believe", "anticipate", "assess" and other similar expressions indicate generally forward-looking statements. Those statements do not warrant as for the future performance of Perlite Canada inc. and they suppose known and unknown risks as well as uncertainties in such a way that true future perspectives, returns or results of the Company may be notably different of future returns or results expressed or implied by these forward-looking statements.
The TSX Venture Exchange is not responsible for the truth or accuracy of this press release.
Contact Information: Perlite Canada inc.
Richard Barabe or Martin Joyal
514-631-4251
514-631-4254 (FAX)