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

Symax Lift (Holding) Co. Ltd.

August 28, 2013 16:05 ET

Symax Lift (Holdings) Co. Ltd. Announces Second Quarter 2013 Financial Results

TORONTO, ONTARIO--(Marketwired - Aug. 28, 2013) - Symax Lift (Holdings) Co. Ltd. (TSX VENTURE:SYL) ("Symax" or the "Company") announces its financial results for the three-month period ending June 30, 2013.

Highlights

  • Sales decreased to $8.1 million in the second quarter of 2013, representing a 20% decrease compared to the same quarter of the previous year.

  • During the second quarter, sales of the Dingtai Passenger Elevator decreased by 26% to $3.3 million, sales of other elevators & after-sale services decreased by 35% to $1.6 million and sales of Green Passenger Elevator increased by 1% to $3.3 million.. The overall decrease in sales was mainly attributable to some customers postponing delivery until the third and fourth quarter of 2013 because of the tightening of monetary policy in China for the first half of 2013.

  • Gross profit decreased to $2.2 million in the second quarter of 2013, representing a 14% decrease over the same quarter of the previous year; however, gross margin increased to 27% in 2013 from 25% in the same quarter of the previous year.

  • Operation expenses increased by 9% to $1.6 million in the second quarter of 2013 over the same quarter of the previous year. The increase was the result of G&A expenses increasing due to the start-up costs for developing stairlift products which increase was partially offset by a decrease in selling expenses due to lower selling commission and freight expenses.

  • Net income decreased to $304,000 ($0.01 per share) in the second quarter of 2013, compared to 700,000 ($0.02 per share) in the same quarter in 2012. EBITDA was $728,000 during this quarter, representing a decrease of 38% over the same quarter of the previous year.

  • As at June 30, the Company had total cash of $2,226,000 and short term bank loans of $12,505,000.

"Sales in the second quarter were lower than anticipated due to some customers deferring delivery, nonetheless the deferred orders will be completed in the second half of 2013. In addition, the development of the Symax stairlift products is proceeding as anticipated." stated Ms. Sabrina Zhang, CEO of Symax. "We look forward to realizing higher revenues and tightening our costs to deliver improved bottom line results as we move forward".

SUMMARY FINANCIAL STATEMENTS
in thousands of Canadian dollars except per share and percentage data Three Months Ended June 30 Six Months Ended June 30
2013 2012 % Change 2013 2012 % Change
Sales 8,143 10,117 -20 % 13,476 15,039 -10 %
Gross profit 2,197 2,545 -14 % 3,458 3,811 -9 %
Gross margin 27 % 25 % 26 % 25 %
Operating expenses 1,617 1479 9 % 2,893 2,869 1 %
Operating income (loss) 580 1,066 565 942
Other income (loss) (224 ) (213 ) (433 ) (387 )
Income taxes 53 152 62 97
Net income (loss) 303 701 -57 % 70 458 -85 %
EBITDA 728 1,178 -38 % 870 1,210 -28 %
Earnings per share - basic $ 0.01 $ 0.02 $ 0.00 $ 0.01
Earnings per share - diluted $ 0.01 $ 0.02 $ 0.00 $ 0.01
Balance Sheet Highlights June 30, 2013 December 31, 2012
Total assets 42,330 35,387
Current liabilities 31,628 25,447
Long term liabilities 529 498
Shareholders' equity 10,173 9,443

Expansion Initiatives

Symax has undertaken an expansion of its domestic Chinese business with a new manufacturing facility located in Wanzhou. The land use rights for this facility have been acquired and construction commenced in June, 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. As of June 30, 2013, the Company set up 12 sales and services centers throughout the whole China.

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; first, 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 second, 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.

Contact Information