Symax Lift (Holding) Co. Ltd.

TSX VENTURE : SYL


Symax Lift (Holding) Co. Ltd.

November 29, 2012 16:05 ET

Symax Lift (Holdings) Co. Ltd. Announces Third Quarter 2012 Financial Results

TORONTO, ONTARIO--(Marketwire - Nov. 29, 2012) - Symax Lift (Holdings) Co. Ltd. (TSX VENTURE:SYL) ("Symax" or the "Company") announces its financial results for the three-month period ending September 30, 2012.

Highlights

  • Gross profit decreased by 0.4% to $1.9 million during the third quarter of 2012, over the same quarter of previous year; gross margin increased to 30% in 2012 from 21% in the same quarter of previous year.
  • Sales of Dingtai Passenger Elevator decreased by $2 million or 37% to $3.4 million, sales of Other elevators & after-sale services decreased by $2.1 million or 57% to $1.6 million, respectively, during the quarter, compared to the third quarter of the previous year due to the impact of the real estate development slow-down in Chinese Tier 1 and Tier 2 cities. Despite this, during the third quarter, the Company's new Green Passenger Elevator product line targeted at lower rise government housing developments and tier 3 and 4 city developments achieved $1.3 million in sales with 37% gross margin.
  • Sales decreased by $2.9 million or 31% to $6.3 million and by $0.9 million or 4% to $21.3 million during the third quarter and first nine months of 2012, respectively, over the same periods of previous year.
  • Operation expenses increased by $0.5 million or 46% to $1.6 million during the third quarter of 2012, over the same quarter of previous year. Just over half of this rise in operation expenses was the result of increased selling expenses due to 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 of Symax Stairlift Co, Ltd.
  • Net income decreased to $0.1million ($0.00 per share) during the third quarter of 2012, compared to $0.6 million ($0.02 per share) in 2011. EBITDA was $0.5 million during the third quarter of 2012, representing a decrease of 52% over the same quarter of previous year.
  • Symax Stairlift Co., Ltd. was set up in September, 2012 to develop, manufacture and distribute residential and commercial accessibility equipment for people with mobility challenges. Symax Stairlift is in the start-up stage, and is expected to launch its products in the second quarter of 2013.

"With our Dingati and new Green elevator products, Symax is continuing to grow its market position in government housing developments and the domestic Tier 3 and 4 cities marketplace," stated Ms. Sabrina Zhang, CEO of Symax. "The set-up of Symax Stairlift will enable the Company to expand its product lines and is expected to contribute to Symax sales and net income increase in the near future."

With the launch of the Green product line, the company experienced an increase in exports during this quarter to 16% of sales compared with 4% in the same period of 2011. This higher level of exports contributed to higher margins during the quarter.

SUMMARY FINANCIAL STATEMENTS
in thousands of Canadian
dollars except per share
and percentage data

Three Months Ended
September 30



Nine Months Ended
September 30
2012 2011 % Change 2012 2011 % Change
Sales 6,293 9,174 -31% 21,333 22,202 -4%
Gross profit 1,921 1,928 0% 5,732 4,986 15%
Gross margin 31% 21% 45% 27% 22% 20%
Operating expenses 1,620 1,107 46% 4,460 3,415 31%
Operating income (loss) 301 821 -63% 1,272 1,571 -19%
Other income (loss) (154) (123) 25% (570) (309) 84%
Income taxes 36 95 -62% 133 227 -41%
Net income (loss) 111 603 -82% 570 1,035 -45%
EBITDA 457 952 -52% 1,696 1,955 -13%
Earnings per share - basic $0.00 $0.02 $0.02 $0.03
Earnings per share - diluted $0.00 $0.02 $0.02 $0.03
Weighted average number of shares:
Basic 30,656,666 30,656,666 30,656,666 30,656,666
Diluted 30,656,666 30,785,329 30,656,666 30,749,423
Balance Sheet Highlights As at 9/30/12 As at 12/31/11
Total assets 34,702 33,992
Current liabilities 24,474 23,941
Long term liabilities 484 571
Shareholders' equity 9,744 9,480

Symax maintains a strong balance sheet with $4.6 million in cash and total loans of $8.2 million.

Expansion Initiatives

Symax establish a wholly-owned subsidiary - Symax Stairlift to develop, manufacture and distribute residential and commercial accessibility equipment for people with mobility challenges. Symax Stairlift is expected to launch its products in the second quarter of 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.

Contact Information

  • Symax Lift (Holdings) Co. Ltd.
    Mary Ma
    CFO
    604.601.8224
    info@symax.ca