Perlite Canada Inc.
TSX VENTURE : PCI

Perlite Canada Inc.

February 29, 2012 10:06 ET

Perlite Canada Inc. Announces Its Results for Fiscal Year 2010-2011

MONTREAL, QUEBEC--(Marketwire - Feb. 29, 2012) - Perlite Canada inc. (the «Company») (TSX VENTURE:PCI) announces hereby the results for the year ended October 31, 2011 ("Fiscal Year 2011").

The Company generated sales of $6,529,531 during Fiscal Year 2011 comparatively to $6,771,614 during Fiscal Year 2010, namely a 3.6 % sales decrease.

The Company recorded a loss before other expenses and other income of $209,103 comparatively to a loss before other expenses and other income of $351,005 for Fiscal Year 2010, a decrease of approximately 40 %, and a loss before other expenses and other income of $626,417 for Fiscal Year 2009, a decrease of approximately 67 %.

The Company recorded other expenses totalling $532,112 as well as other income of $73,521 for Fiscal Year 2011 while it had recorded other expenses totalling $275,617 and other income of $114,286 for Fiscal Year 2010. Consequently, the Company recorded a loss before income taxes of $667,694 for Fiscal Year 2011 comparatively to a loss before income taxes of $512,336 for Fiscal Year 2010. This increase for the loss before income taxes is explained by the increase of the amount of expenses mentioned above.

The Company recorded a net loss of $631,330 for fiscal year 2011 while it had recorded a net loss of $335,780 in 2010. The increase of the net loss is mainly attributable to the other expenses mentioned above and the diminution of the amount of recoverable and future income taxes which totalled $36,364 for Fiscal Year 2011 while it totalled $176,556 for Fiscal Year 2010. This diminution of future income taxes is explained by the uncertainty for the Company to be able to use these future tax amounts.

The offer to purchase dated as of February 16 2011, for the sale of real properties and some assets located in Baie-du-Febvre in consideration of a purchase price of $250,000 has been cancelled because the offeror has not been able to obtain the required municipal authorizations to realize the transaction. Consequently, the Company has not been able to complete the sale of these assets during Fiscal Year 2011. As at January 5, 2012, the Company accepted a conditional offer for the purchase of the buildings and other assets located in Baie-du-Febvre in consideration of a purchase price of $125,000, payable as follows: i) $75,000 cash at the closing of the transaction, ii) $25,000 at the first anniversary of the transaction and iii) $25,000 at the second anniversary of the transaction. This purchase offer is conditional in obtaining the required municipal authorizations and is valid until December 31, 2012.

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)