Symax Lift (Holdings) Co. Ltd.
TSX VENTURE : SYL

April 29, 2013 19:10 ET

Symax Lift (Holdings) Co. Ltd. Announces Financial Results of Fiscal Year 2012

TORONTO, ONTARIO--(Marketwired - April 29, 2013) - Symax Lift (Holdings) Co. Ltd. (TSX VENTURE:SYL) ("Symax" or the "Company") announces its financial results for the three-month period and fiscal year ending December 31, 2012.

Highlights

  • Sales decreased to $26.6 million during 2012, representing a 7% decrease over the previous year.
  • Sales of Dingtai Passenger Elevator as well as certain other elevator productss & after-sale services decreased by 34% to $18.8 million during 2012, due to the negative effects of the real estate development slow-down in the Chinese Tier 1 and 2 cities. However, the Company's new Green Passenger Elevator product line targeted at the lower rise government sponsored housing projects and tier 3 and 4 city developments successfully achieved $7.8 million sales in 2012 with gross margins of 29%.
  • Gross profit increased to $7.0 million during 2012, representing a 7% increase over the previous year. Due to the increased volume of higher gross margin export sales and raw material purchase price decreases, gross margin increased to 26% in 2012 from 23% in the previous year.
  • Operating expenses increased by 29% to $6.1 million during 2012 over the previous year. Just over half of this rise in operating expenses was the result of increased selling expenses due to higher advertising and promotion expenses and higher sales commissions paid on high gross margin products. The balance of the increase in operation expenses arose from higher G&A expense as a result of the start-up costs for introducing starilift products and Symax Chongqing.
  • Net income decreased to $77,000 ($0.00 per share) during 2012, compared to $1.0 million ($0.03 per share) in 2011. EBITDA was $1.5million during 2012, representing adecrease of 37% over the previous year.
  • As at December 31, 2012, the Company had total cash of $1.3 million and short term bank loans of $9.5 million.
  • Symax has undertaken an expansion of its domestic Chinese business with a new manufacturing facility located in Wanzhou. Construction began in June of 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. The Company has introduced a new product line of stairlift products and is expected to launch these products in the Chinese domestic market and the North American market in the third quarter of 2013.
SUMMARY FINANCIAL STATEMENTS
in thousands of Canadian dollars except per share and percentage data Twelve Months
Ended December 31
2012 2011 % Change
Sales 26,593 28,606 (7%)
Gross profit 6,979 6,526 7%
Gross margin 26% 23%
Operating expenses 6,078 4,711 29%
Operating income 901 1,754 (49%)
Other income (loss) (708) (457) 55%
Income taxes (116) (296) (61%)
Net income 77 1,001 (92%)
EBITDA 1,459 2,306 (37%)
Earnings per share - basic $0.00 $0.03
Earnings per share - diluted $0.00 $0.03
Balance Sheet Highlights As at
12/31/2012
As at
12/31/11
Total assets 35,387 33,992
Current liabilities 25,447 23,941
Long term liabilities 498 571
Shareholders' equity 9,443 9,480

"With our Dingati and new Green elevator products, Symax is continuing to grow its market position in government sponsored housing developments and the domestic Tier 3 and 4 city markets. In addition, the development of Symax stairlift products will enable the Company to expand its product lines," stated Ms. Sabrina Zhang, CEO of Symax. "We look forward to recognizing higher revenues and tightening our costs to deliver improved bottom line results as we move forward."

With the launch of the Green product line, the company experienced an increase in exports in 2012, 13% of total sales compared with 8% in 2011. This higher level of exports contributed to higher margins during 2012.

Expansion Initiatives

Symax established a wholly-owned subsidiary - Symax Stairlift Co., Ltd. to develop, manufacture and distribute residential and commercial accessibility equipment for people with mobility challenges. Symax's stairlift products are expected to be launched into the American market and Chinese market before year end 2013.

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.

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