VANCOUVER, April 13, 2016 /PRNewswire/ - Polaris Materials Corporation (TSX:PLS) (the "Company", "Polaris" or "we") today reported preliminary sales volumes for the quarter ended March 31, 2016. In addition, the company is pleased to update on operations at its Long Beach terminal and the outlook for 2016.
Q1 2016 SALES VOLUMES
Sales volumes in Q1 2016 were 516,000 tons which was modestly below our expected range of 550,000 to 600,000 tons. As previously disclosed, heavy rain in our key markets, as well as scheduled maintenance at one of our Bay Area delivery points, continued to impact volumes. Sales at Long Beach were better than expected during the quarter and, when combined with expectations for several large orders early in Q2, necessitated re-allocating volume from immediate sales to restocking inventory at the Long Beachterminal. Total sales volumes in March 2016 were strong at approximately 314,000 tons which is consistent with our monthly volume expectations for the full year.
LONG BEACH UPDATE
We are pleased to announce that over the past several weeks we have supplied materials for three large foundation pours at the Oceanwide Plaza project, totaling approximately 35,000 tons of sales from our Long Beach Terminal in late March and early April, with a fourth pour for a further 10,000 tons scheduled for later this month. In addition to the large volume pours, we are seeing a better than anticipated volume of daily sales for other smaller projects. Consequently, we are optimistic about our potential for growth in this new market.
The Oceanwide Plaza project is a prestigious 2.5 million sq. ft. multi-use development in downtown Los Angeles with an estimated cost of over $900 million. For more information about the Oceanwide Plaza project and the recent concrete pour, please see the article found here: https://urbanize.la/post/inside-oceanwide-plazas-big-concrete-pour
UPDATE TO OUTLOOK FOR 2016
As a result of actual sales through March, and ongoing discussions with our customers inSan Francisco and Long Beach, we have increased confidence in our volume expectations for 2016 and are pleased to announce that we expect full year sales volumes in the range of 3.2 million to 3.5 million tons
- San Francisco volumes currently expected to be 2.9 million to 3.1 million tons
- Long Beach volumes currently expected to be 200,000 to 400,000 tons
- Q2 2016 shipments are currently scheduled in the range of 0.9 million to 1.1 million tons, including at least 2 deliveries to Long Beach
Ken Palko, President and CEO, commented: "Weather-related disruptions to construction activity as well as the previously mentioned maintenance made for a slower than expected first quarter, but March was a robust month and we are seeing very healthy volumes in planned shipments through the second quarter. Long Beach sales and operations have performed better than we initially expected. In addition to the Oceanwide Plaza project, we are in final discussions on several other large, high profile projects for LA in 2016 and continue to be excited about the developments occurring in this market."
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