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

Symax Lift (Holding) Co. Ltd.

November 29, 2013 09:00 ET

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

TORONTO, ONTARIO--(Marketwired - Nov. 29, 2013) - Symax Lift (Holdings) Co. Ltd. (TSX VENTURE:SYL) ("Symax" or the "Company") announces its financial results for the three-month period ending September 30, 2013.

Highlights

  • Sales increased to $8.9 million in the third quarter of 2013, representing a 42% increase over the same quarter of previous year.

  • During the third quarter, sales of the Dingtai Passenger Elevator increased by 24% to $4.3 million, sales of Green Passenger Elevator increased by 213% to $1.1 million, and sales of other elevators & after-sale service decreased by 57% to 0.7 million. The increase in Dingtai and Green elevators was mainly due to the postponed orders which resumed delivery and improvement in the Company's overall sales network.

  • Gross profit increased to $2.5 million in the third quarter of 2013, representing a 26% increase over the same quarter of the previous year; and gross margin decreased to 27% in this quarter compared to 31% in the same quarter of previous year.

  • Operating expenses increased by 16% to $1.9 million in the third quarter of 2013 over the same quarter of the previous year. The increase was the result of increased advertising costs, sales staff salary and sales & service center operation expenses, G&A expenses also increased as a result of the start-up costs for developing stairlift products.

  • Net income increased to $232,000 ($0.01 per share) in the third quarter of 2013, compared to 111,000 ($0.00 per share) in the same quarter of 2012. EBITDA was $769,000 during this quarter, representing an increase of 68% over the same quarter of the previous year.

  • As at September 30, the Company had total cash of $2.2 million and short term bank loans of $12.3 million.

"Sales growth in the third quarter reached our expectation, and the growth is expected to continue in the fourth quarter. 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 for the year of 2013."

SUMMARY FINANCIAL STATEMENTS

in thousands of Canadian dollars except per share and percentage data Three Months Ended
September 30
Nine Months Ended
September 30
2013 2012 % Change 2013 2012 % Change
Sales 8,910 6,293 42 % 22,386 21,333 5 %
Gross profit 2,425 1,921 26 % 5,884 5,732 3 %
Gross margin 27 % 31 % 26 % 27 %
Operating expenses 1,880 1620 16 % 4,773 4,460 7 %
Operating income (loss) 545 301 1,111 1,272
Other income (loss) (244 ) (154 ) (678 ) (570 )
Income taxes 69 36 131 133
Net income (loss) 232 111 109 % 302 569 -47 %
EBITDA 769 457 68 % 1,639 1,696 -3 %
Earnings per share - basic $ 0.01 $ 0.00 $ 0.01 $ 0.02
Earnings per share - diluted $ 0.01 $ 0.00 $ 0.01 $ 0.02
Balance Sheet Highlights September 30, 2013 December 31, 2012
Total assets 42,774 35,387
Current liabilities 32,200 25,447
Long term liabilities 363 498
Shareholders' equity 10,211 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 September, 2013, the Company set up 12 sales and services centers throughout the whole China and completed the Company's sales network restructure.

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.

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