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Kirkland Lake, Ontario / TheNewswire / May 4, 2015 - NORDEX EXPLOSIVES LTD. ("Nordex" or the "Corporation" - TSX Venture Exchange: NXX) announces the filing of the annual financial statements and management discussion and analysis for the fiscal period ended December 31, 2014. This information is available on SEDAR and the Corporation's website.
Summary of the fiscal period ending December 31, 2014 includes the following:
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-Revenue of $18,917,834 versus $17,572,593 for the comparable period ending December 31, 2013, an increase of $1,345,241 or 7.7%.
-Gross Margin of $2,734,461 versus $2,944,338 for the comparable period ending December 31, 2013, a decrease of $209,877 or 7.1%.
-Net Loss of $515,095 versus a loss of $185,245 for the comparable period ending December 31, 2013.
-Initiated Product and Blast Optimization Program for existing and new clients.
-Continued expansion to new regions in Ontario.
-Contiued negotiations for new satellite sites in Canada.
-Appointed Sean Conroy, CGA, to position of Controller, subsequently appointed to position of Vice President of Finance in 2015.
-Development and introduction of new robotic loading arm for use by mining clients.
-Development of new marketing initiatives for potential clients in North America.
Certain one-time adjustments and clerical misallocations were identified and corrected in the fourth quarter of 2014 as a result of improved accounting and financial reporting oversight, which adjustments negatively impacted cost of goods sold. These adjustments were associated with correcting the classification of certain transactions and accruals which were identified and corrected in the fourth quarter, prior to the year-end audit. The impact of these adjustments was approximately $670,000 ($500,000 net of income tax recoveries) as a charge against cost of goods sold which entailed adjustments to fixed assets and accounts payable in the fourth quarter of 2014.
President and CEO Jim Taylor states; "We believe our strategic plan to diversify our customer base by developing new products and satellite sites to service the quarry and construction markets in key Ontario locations is now poised to pay off. We think this is reflected in the 7.7% growth in overall revenue year over year, despite some weakness in the core North Eastern Ontario mining industry. Implementing this strategy required capital and resource investment and higher start-up operating costs which, along with the one-time accounting adjustments negatively affected profitability in 2014, and we think will position the company to capitalize on reduced risk and higher margins in 2015 and beyond. As well as our other challenges, financial results for 2014 were negatively affected by the stronger US dollar and significant increases in the cost of certain raw materials. Management has addressed these cost factors through a combination of initiatives which are expected to yield immediate positive results starting in Q2 of 2015. With respect to the core North Eastern Ontario mining market, the Company is working to secure long term contracts with certain large mining customers currently serviced by our competition. A number of trials with prospective and existing clients have been completed which we believe demonstrate the benefits of Nordex proprietary products through our Product and Blast Optimization Program."
About Nordex Explosives
Nordex Explosives Ltd. is a Canadian based manufacturer and distributor of explosives for the mining, quarry and 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 "Buttbuster" perimeter control explosive products in Canada. Additional information can be found at www.nordexexplosives.com
For further information please contact
Jim Taylor, President and CEO
T: 705 642 3265 extension 203
E: jtaylor@nordexexplosives.com
Neither the TSX Venture nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture) accepts responsibility for the adequacy or accuracy of this release.
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