TORONTO, November 29,2013- Symax Lift (Holdings) Co. Ltd. (TSX Venture: SYL) ("Symax" or the "Company") announces its financial results for the three-month period ending September30, 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 thirdquarter, sales oftheDingtai Passenger Elevatorincreased 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% to0.7 million. The increasein Dingtai and Green elevatorswas mainly due to the postponed orderswhichresumed deliveryand improvement inthe Company's overall sales network.
· Gross profit increased to $2.5 million in the third quarter of 2013, representinga26% increase over the same quarter of the previous year;and gross margin decreased to 27% in this quarter compared to31% in the same quarter of previous year.
· Operating expenses increased by 16% to $1.9 million in the third quarter of 2013over the same quarter of the previous year.The increase was the result of increasedadvertisingcosts, sales staff salary and sales & service center operation expenses,G&A expenses alsoincreased as a result of the start-up costsfor developingstairlift 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 oftheprevious year.
· As at September 30,the Company had total cash of $2.2 millionand short term bank loans of $12.3 million.
"Sales growth in the third quarter reached our expectation, and the growth is expected to continuein the fourth quarter. In addition, the development of the Symax stairlift productsis 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 September30 | 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 commencedinJune,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 Companyset 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.
For Corporate Information:
Michael Zheng Skyone International Securities Corporation Tel: 416.268.6178 Email: michael.zheng@skyoneisec.com Mary Ma, CFO Tel: 604.277.6678 Email:info@symax.ca |
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