KIRKLAND LAKE, ONTARIO--(Marketwired - Nov. 26, 2013) - NORDEX EXPLOSIVES LTD. (TSX VENTURE:NXX) ("Nordex" or the "Company") has released its unaudited financial statements for the third quarter ending September 30, 2013 and is pleased to announce its highest Q3 sales revenues in the 43 year history of the Company and a pretax Q3 profit of $299,407. Record sales revenues are attributed to ongoing diversification and the securing of new business in the construction and quarry markets while maintaining and increasing business with existing customers.
Highlights from the 2013 third quarter include:
- All time record sales across all customer industry segments
- Completion of the exclusive and proprietary high margin "Buttbuster" manufacturing line
- Receipt of all approvals with respect to title for the minerals rights for the Melba gold property
The following table summarizes and compares selective Q3 financial results year over year:
| |
Q3 2013 |
Q3 2012 |
Change |
|
| Revenue |
$ |
4,723,631 |
$ |
3,960,224 |
19.3 |
% |
| Gross Profit |
$ |
1,086,937 |
$ |
801,520 |
35.6 |
% |
| Net Income |
$ |
189,566 |
$ |
107,021 |
77.1 |
% |
| Total Assets |
$ |
17,030,343 |
$ |
14,092,544 |
20.8 |
% |
| Total Liabilities |
$ |
7,282,552 |
$ |
4,716,874 |
54.4 |
% |
Total revenues for the period were $4,723,631, an increase of $763,407, approximately a 19.3% increase over same period revenues of $3,960,224 in 2012. The increase in sales in Q3 is a result of increasing confidence in the products and services provided by Nordex to both existing clients, as well as, new customers in the non-mining segment of the explosives industry. The successful adaptation of Nordex products and equipment to meet the needs of the quarry and construction markets contributed to the increase in Q3 results. The percentage of revenues from non-mining related customers continues to increase and this trend is expected to continue in 2014. The Company objective is to achieve a 50/50 split between mining related and non-mining related revenues.
Gross profit for the period was $1,086,937, an increase of $285,417 approximately a 35% increase over the same period gross profit of $801,520 in Q3 2012. The increase in gross margin is a result of the increase in sales and the economies of scale being achieved in manufacturing.
Net income after tax for the period was $189,566, an increase of $82,545 over the same period net income after tax of $107,021 in Q3 2012 as a result of the increase in sales.
Jim Taylor, President & CEO, stated, "This is our 7th successive period of a quarter over quarter growth in sales revenues at Nordex. We continue to implement our growth strategies with a focus on profitability. We continue to expect reductions in our relative manufacturing costs as sales revenues continue to grow steadily. In addition, Nordex has started to market and promote our new proprietary perimeter control products with delivery starting in Q1 2014. We recently announced the completion of our "buttbuster" (Johnex) manufacturing facility and have begun commercial production of these products. Our achievements and success continues to be a direct result of the efforts and contributions by our valued employees."
The financial information for the periods indicated as set out in this news release is presented on a basis consistent with the accounting principles used to prepare Nordex' most recently filed financial statements. The contents of this news release should be read in conjunction with the complete unaudited financial statements and the Company's annual financial statements and related management discussion and analysis ("MD&A") for the periods under the Company's profile available at www.SEDAR.com. Readers are advised that the Company faces various risk factors with respect to its business and operations: for further information please see the MD&A of Nordex available at www.SEDAR.com.
ABOUT NORDEX EXPLOSIVES: NORDEX EXPLOSIVES LTD. is a manufacturer and distributor of explosives for the mining, quarry and road construction industries since 1970. Its manufacturing operations and distribution centre is strategically located in one of the world's largest mining regions near Kirkland Lake, Ontario. Nordex is the exclusive supplier of the Econotrim and Ezicharge perimeter control explosive products in Canada. Nordex trades on the TSX Venture Exchange under the symbol "NXX".
OTHER INFORMATION
Additional Information relating to the Company is available on SEDAR at www.sedar.com.
Forward-Looking Statements
Certain information included herein may contain "forward-looking statements" which reflect the current expectations of management of the Company regarding the Company's future growth, results of operations, performance, business prospects and opportunities. Wherever possible, words such as "may", "would", "could", "should", "will", "anticipate", "believe", "plan", "expect", "intend", "estimate", "aim", "endeavor", "seek", "predict", "potential" and similar expressions have been used to identify these forward-looking statements. These statements reflect management's current beliefs with respect to future events and are based on information currently available to management of the Company. Forward-looking statements involve significant risks, uncertainties and assumptions. Many factors could cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, without limitation, cancellations of or the failure to renew purchase orders; production and delivery issues; quality, pricing and availability of raw materials; compliance with environmental regulations; exchange rate fluctuations as well as the other risks identified in the "Risk Factors" contained in the Company's Management Discussion and Analysis for fiscal 2012 and other public filings (copies of which may be obtained at www.sedar.com). Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results, performance or achievements may vary materially from those expressed or implied by this press release. These factors should be considered carefully and the reader should not place undue reliance on the forward-looking statements. Although any forward-looking statements contained in this press release are based upon what management currently believes to be reasonable assumptions, the Company cannot assure readers that actual results, performance or achievements will be consistent with these forward-looking statements, and management's assumptions may prove to be incorrect. These forward-looking statements are made as of the date of this press release, and, other than as required by law, the Company does not intend, and does not assume any obligation, to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.
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