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Growth & Excellence
2009 |
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Dec. 30 McVICAR TO ACQUIRE THE REMAINING 38% INTEREST IN
HANGZHOU CHANGLONG CHEMICAL
Nov. 30 McVICAR ANNOUNCES THIRD QUARTER RESULTS
Sep. 18 McVICAR APPOINTS NEW DIRECTOR
Aug. 31 McVICAR ANNOUNCES SECOND QUARTER RESULTS
July 29 McVICAR TEMPORARILY SUSPENDS LUYUAN OPERATIONS
June 30 McVICAR DIRECTOR RETIRES
June 09 McVICAR WITHDRAWAL FROM JOINT VENTURE WITH
SINO-LION
June 01 McVICAR ANNOUNCES FISCAL FIRST QUARTER
RESULTS
May 05 McVICAR ANNOUNCES FISCAL 2008 YEAR END FINANCIAL
RESULTS
Jan. 07 McVICAR ACQUIRES REMAINING MINORITY INTEREST IN
ITS HONGKONG SUBSIDIARY
McVICAR INDUSTRIES INC. PRESS RELEASE
Dec. 30, 2009 Trading Symbol: MCV
McVICAR TO ACQUIRE THE REMAINING 38% INTEREST
IN HANGZHOU CHANGLONG CHEMICAL: McVicar Industries Inc. ("McVicar")
announces that its fully owned Chemical subsidiary, McVicar (Hongkong)
Advanced Materials Co. Ltd. ("MAM") have reached an agreement with British
Virgin Island based Sanlong Holdings Co. Ltd. (“Sanlong”) to purchase its
38% equity interest in Hangzhou Changlong Chemical Co. Ltd. (“Changlong
”). Sanlong obtained the 38% interest in Changlong in January, 2009 by
exchanging its 9.5% equity interest in MAM (see news release Jan. 5,
2009). MAM will pay a cash amount of RMB 9,405,000 (~CAN $1.47 million)
for the acquisition. After this transaction, MAM will have 100% ownership
of Changlong and will have the benefit of simple operation of the company.
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McVICAR INDUSTRIES INC. PRESS RELEASE
Nov. 30, 2009 Trading Symbol: MCV
McVICAR ANNOUNCES THIRD QUARTER RESULTS: McVicar Industries Inc.
(“McVicar” or the “Company”) is pleased to announce that it has filed its
interim financial statements and management's discussion and analysis
(MD&A) for the third quarter ended September 30, 2009. The detailed
financial statements and MD&A can be found on
www.sedar.com. All amounts are
in Canadian dollars unless otherwise noted.
The following are the highlights of results for the third quarter and nine
months ended September 2009:
Third Quarter and First Nine Months of 2009 Financial Highlights
-
Sales for the third quarter of 2009 amount to $9.52 million as
compared with $9.54 million in the prior-year quarter. Sales for the nine
months of 2009 were $ 26.6 million as compared to $28.9 million a year ago
despite the global economic weakness this year.
-
Gross profit for the third quarter and first nine months of 2009
was $3.2 million and $8.1 million, respectively, compared to $2.2 million
and $7.4 million a year ago, representing a dramatic increase of 48.3% and
9.5%, respectively. Gross margin as a percentage of sales for the third
quarter and first nine months of 2009 increased by 11% to 34% (from 23%)
and by 5% to 30% (from 25%), respectively, compared to a year ago. This
significant year-over-year increase in gross profits was mainly
attributable to the shift to high profit margin products and operational
efficiency.
-
Net profit for the third quarter was $0.88 million (9% of sales) or
$0.03 per share compared to $0.77 million (8% of sales) or a $0.02 per
share in the same quarter a year ago. For the first nine months of 2009,
net profit was $2.22 million (8% of sales) or $0.06 per share compared to
$1.41 million (5% of sales) or a $0.05 per share for the same period a
year ago.
“I am very pleased with our operational achievements as reflected by the
outstanding financial results even though we had experienced severe global
economic slowdown.” said Gang Chai, President & CEO, “Our strategy of
continuous product innovation and improvement and key customer service has
been proven to be successful even in an economic recession. With the
recovery of the world economy in sight, we are well positioned to begin a
new round of growth”.
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McVICAR INDUSTRIES INC. PRESS RELEASE
Sep. 18, 2009 Trading Symbol: MCV
McVICAR APPOINTS NEW DIRECTOR: McVicar Industries Inc. (the "Company", "McVicar") is pleased to announce
the appointment of Mr. Alfred G. Wirth as a Director and Audit Committee
member of the Company, subject to regulatory approval.
Mr. Wirth has over 30 years of experience in global investment and
financing. Prior to joining McVicar, Mr. Wirth founded Wirth Associates
Inc., investment counsel to high net worth individuals. Before that, he
had served as Chief Investment Officer of Sun Life, United Funds, and
Crown Life. He co-authored Euromoney's book Private Placements, and has
served on many organizations including Accel Partners, American Council of
Life Insurance, C.D.Howe Institute, Financial Services Commission of
Ontario, Genstar Capital, Heart & Stroke Foundation, Helix Investments,
Institute for Research on Public Policy, St. Andrews College, SOS
Children's Villages, and Toronto Stock Exchange.
"I am delighted Mr. Wirth has joined our Board." commented Dr. Gang Chai,
President and CEO of McVicar Industries Inc. "His broad knowledge and
extensive experience in investments and financing greatly enhances our
present board of directors, which was more on the technical and managerial
side. Mr. Wirth will play an important role in profiling McVicar in the
investment community".
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McVICAR INDUSTRIES INC. PRESS RELEASE
Aug. 31, 2009 Trading Symbol: MCV
McVICAR ANNOUNCES SECOND QUARTER RESULTS: McVicar Industries Inc.
("McVicar" or the "Company") is pleased to announce that it has filed its
interim financial statements and management's discussion and analysis
(MD&A) for the second quarter ended June 30, 2009. The detailed financial
statements and MD&A can be found on
www.sedar.com. All amounts are in Canadian dollars unless otherwise
noted.
McVicar is divided into two operating segments: The Chemical segment,
which includes the production and sale of specialized refined chemical
products, and The Technical segment, which includes the production and
sale of terminal blocks, PCB connectors, and customized design electrical
connectors.
Second Quarter and First Half of 2009 Financial Highlights
----------------------------------------------------------
- Sales for the 2009 second quarter were $8.64
million, compared with
$10.3 million in the 2008 period. For
the first half of 2009, sales
were $17.1 million, down from $19.3
million in the 2008 period. The
decreases are primarily the result of
reduced demands caused by
global economic weakness.
- Gross profits for the 2009 second quarter were
$2.86 million (33% of
sales), up from $2.76 million (27% of
sales) in the 2008 period. For
the first half of 2009, Gross profits
were $4.86 million (28% of
sales), compared to $5.20 million
(27% of sales) in the 2008 period.
This increase was attributable to a
number of factors, including
lower raw material prices, less
provision of obsolete inventory and
the positive impact due to a $193,797
benefit from the sale of
inventory written down in the fourth
quarter of 2008.
- Net profits for the 2009 second quarter were
$0.96 million (11% of
sales) or $0.03 per basic and diluted
share, up from $0.31 million
(3% of sales) or a $0.01 per basic
and diluted share) in the 2008
period. For the first half of 2009,
net profits were $1.35 million
(8% of sales) or $0.04 per basic and
diluted share, up from
$0.64 million (3% of sales) or a
$0.02 per basic and diluted share in
the 2008 period.
- Cash flows generated by operation activities
for the 2009 second
quarter and first six months were
$1.76 million and $4.42 million,
respectively, compared with negative
$0.31 million and negative
$1.30 million in the comparative
prior-year periods.
- Changlong reached an agreement with Longshan
Chemical Co., Ltd., on
its factory relocation plan,
principally regarding a share of an
8,508,614 RMB (approximately $1.45
million CDN) Chinese government
compensation fund attributed to
Changlong.
"I am very pleased with the healthy financial results from our operations
even though our revenues have been negatively impacted by the global
economic slowdown. Both the net income and cash flows from our operations
have increased substantially due to measures taken to operating cost
controls and fixing low raw material prices." said Gang Chai, President &
CEO of McVicar, "We continued to focus on a number of important priorities
in the first half of 2009. We successfully enforced our key customer
strategy in keeping all our key customers during the recession period.
With the world economic recovery in sight, we are well positioned to begin
a new round of growth".
Developments Subsequent to the End of the Second Quarter of 2009
----------------------------------------------------------------
- Received 4,100,000 RMB (approximately $ 0.7
million CDN) on the
divestiture of 27% equity interest
investment in Sino Lion.
- Jite signed a purchase agreement to acquire 56
acres of land with
17,642 square meters of existing
buildings in the Kunshan Economic
and Technological Development Zone,
Jiangsu Province, China for a
total consideration of RMB 28 million
(approximately $ 4.7 million
CDN) in cash. Jite intends to use the
purchased land to relocate its
existing manufacturing plant in
Shenzhen.
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McVICAR INDUSTRIES INC. PRESS RELEASE
July 29, 2009 Trading Symbol: MCV
McVICAR TEMPORARILY SUSPENDS LUYUAN OPERATIONS: McVicar Industries Inc. (“McVicar” or the “Company”) announces that it has
temporarily suspended the operations of Luyuan Chemical Co. Ltd. ("Luyuan"),
an 80% owned subsidiary of Zhejiang Hongbo Chemical Co. Ltd. ("Hongbo").
This measure was a combined result of market conditions due to the order
delay of a major US customer for the first half of 2009 and recently a
number of lawsuits against Luyuan. These claim certain loans were
allegedly borrowed by previous Luyuan management before acquisition by
Hongbo. The total amounts related to those lawsuits are about RMB
4,000,000 (approximately $700,000), including principal and accrued
interest. Luyuan has a strong defense to all claims based on the purchase
agreement signed by Hongbo and the previous shareholder who, as an
existing minority shareholder and current co-defendant in these lawsuits,
has guaranteed all the existing and any contingent liabilities incurred
prior to the acquisition.
Luyuan’s 80% equity interest was
initially acquired by Hongbo in early 2008 for a total cash consideration
of approximately $750,000, with the aim to secure the raw material for
Hongbo’s electronic chemicals for its major US customer. The suspension of
Luyuan’s operation will not present a significant impact on Hongbo’s
production as the current level of inventory supplied from Luyuan will be
adequate for Hongbo over the next six months.
Resumption of Luyuan’s operations
will depend in part on how well and when the lawsuits are settled.
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McVICAR INDUSTRIES INC. PRESS RELEASE
June 30, 2009 Trading Symbol: MCV
McVICAR DIRECTOR RETIRES: McVicar Industries Inc. ("McVicar" or the
"Company") announces that Raymond Morley ("Ray") has retired from the
board of directors. Ray was a founding director in the original formation
of McVicar with Gang Chai, current President and CEO, back when the
company was named McVicar Minerals Inc. in the late 1990's. Ray continued
as a director through the many changes in the Company, the reverse
take-over of McVicar Minerals Inc. with Hanfeng Evergreen Inc. and the
subsequent spin-off of its resource properties to McVicar Resources Inc.,
to its current position in the chemical and technology industry as McVicar
Industries Inc.
Ray's experience and insight helped guide McVicar in its financing and
continuous growth. His contributions to the Company will be remembered.
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McVICAR INDUSTRIES INC. PRESS RELEASE
June 9, 2009 Trading Symbol: MCV
McVICAR WITHDRAWAL FROM JOINT VENTURE WITH SINO-LION: McVicar Industries
Inc. ("McVicar" or the "Company") announces that it has obtained Chinese
government approval on
McVicar's withdrawal from the joint venture with Sino Lion (USA) Ltd. on
Sino-Lion Nanjing Ltd., as previously announced on October 2, 2008. The
Company's twenty-seven percent (27%) equity interest in Sino Lion Nanjing
Ltd. was sold for a cash consideration of US $850,000 to a holding company
controlled by one of the directors of Sino Lion (USA) Ltd.
This disposal has no material impact on the other chemical businesses
McVicar currently owns or controls.
McVicar is a TSX Venture Exchange listed company engaged in industrial
chemical production and distribution. The majority of McVicar's business
activities are focused in China.
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McVICAR INDUSTRIES INC. PRESS RELEASE
June 1, 2009 Trading Symbol: MCV
MCVICAR ANNOUNCES FIRST QUARTER RESULTS: McVicar Industries Inc.
("McVicar" or the
"Company") is pleased to announce that it has filed its interim financial
statements and management's discussion and analysis (MD&A) for the first
quarter ended March 31, 2009. The detailed financial statements and MD&A
can
be found on www.sedar.com . All amounts are in Canadian dollars unless
otherwise noted.
Highlights of the first quarter results:
- Sales for the first quarter of 2009 was
$8.4 million, a decrease of
$ 0.7 million or 8%, compared
to $ 9.1 million for the same quarter
in 2008. This decrease was
mainly due to the impact of global
recession on both chemical and
technical business. Sales generated
from chemical business were $
4.4 million for the first quarter of
2009, a decrease of $0.5
million or 9%, compared to $ 4.8 million for
the same period of 2008. Sales
from the technical business were
$4.0 million for the first
quarter of 2009, a decrease of
$0.2 million or 5%, compared to
$ 4.2 million for the same period of
2008.
- Gross profit for the first quarter of
2009 was $2.0 million, a
decrease of $ 0.4 million,
compared to $ 2.4 million for the same
period of 2008 as a result of
decreases in sales. Gross profit as a
percentage of sales for the
first quarter of 2009 was 24%, a drop of
3%, compared to 27% for the
same period of 2008. This decrease was
caused by a number of factors,
such as lower sales volume, product
mix, and cut in selling prices,
partially offset by the positive
impact due to an $111,602
benefit from the sale of inventory written
down in the fourth quarter of
2008.
- Operating expenses for the first quarter
of 2009 were $ 1.43 million,
versus $1.41 million for the
same period of 2008. Operating expenses
as a percentage of sales for
the first quarter of 2009 was 17%,
compared to 16% for the first
quarter of 2008, an increase of 1%.
- Net income for the first quarter of 2009
was $ 386,457 or $0.01 per
share compared to $ 327,775 or
$0.01 per share for the same period of
2008. This increase in net
income was mainly due to the increase of
ownership interest in chemical
business, 90.5% in 2009 versus 51% in
2008, and positive impact of an
appreciation of the Chinese RMB. Net
income as a percentage of sales
was 5% for the first quarter of 2009
compared to 4% for the same
period of 2008.
"The economic slowdown has negatively impacted the
growth trend of our
sales and gross margins," said Gang Chai, President & CEO of McVicar,
"However, we took the opportunity to reshape our business structure,
reorganize our product mix, and re-enforce business relationships with our
key
customers in the chemical business. Those changes were aimed in
repositioning
our company for long-term success".
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McVICAR INDUSTRIES INC. PRESS RELEASE
May 5, 2009 Trading Symbol: MCV
MCVICAR ANNOUNCES FISCAL 2008 YEAR END FINANCIAL RESULTS: McVicar
Industries Inc. ("McVicar" or the "Company"), formerly McVicar Resources
Inc., is pleased to announce its financial results and management's
discussion and analysis (MD&A) for the fourth quarter and the year ended
December 31, 2008. The detailed financial statements and MD&A can be found
on www.sedar.com . All amounts are in
Canadian dollars unless otherwise noted.
- Consolidated revenues grew 34 percent to
$36.7 million.
- Revenues from chemical business doubled
to $18.9 million.
- Cash provided by operating activities
grew 11 times to $1.3 million.
- Holding interest in MAM increased to
90.5% from 51%.
Some highlights of the annual and fourth quarter
results:
- Consolidated revenues for the fourth
quarter 2008 increased to
$7.9 million, or 12%, from $7.0
million for the same period last
year. For the twelve months
ended December 30, 2008, revenues
increased to $36.7 million, or
34%, from $27.5 million for the same
period last year. The
significant year-over-year increases in sales
are attributable primarily to
strong growth in the Company's chemical
business.
- Gross profit for the fourth quarter and
for the twelve months ended
December 31, 2008 was $1.2
million and $8.5 million, versus
$1.4 million and $7.2 million
for the same period last year,
respectively. Gross profit as a
percentage of sales decreased from
20% to 15% in the fourth
quarter, and from 26% to 23% for the year,
compared with the same period
last year. This decrease was mainly due
to margin shrinking in both
technical and chemical products. This was
caused by a number of factors,
including higher sales volume, product
mix, overall increase in its
raw material prices and labour cost and
higher provision for slow
moving or obsolete inventories.
- Excluding one-time items in both years
such as impairment of goodwill
and intangible assets,
provision for inventories, gain on disposal of
investment (subsidiary) and
investment income, operating income
increased in 2008 by 270% to
$2.1 million or $0.07 per share,
compared with pro forma $0.6
million or $0.02 per share in the prior
year. The significant
year-over-year increases in net income are
mainly attributable to the
increase in sales and cost reduction in
technical business. Net loss
for the year ended December 31, 2008 was
$ 3.1 million or 0.10 per
share, compared to net income of
$ 2.2 million or 0.10 per share
for same period of 2007.
- As at December 31, 2008, McVicar had cash
on hand of $ 6.8 million
and net working capital of $18
million, compared with $4.9 million
and $10 million in 2007
respectively. The increase in working capital
is primarily due to the
significant increase in cash provided by
operating activities and
increases in accounts receivable and
inventory and decrease in
accounts payable as a result of increase in
sales.
- Cash provided by operating activities for
the year ended December 31,
2008 was $1.3 million, an
increase of $1.2 million or 1132%, compared
to $105,000 for the same period
last year. The significant increase
was mainly attributable to
increase in sales and tight cost control
measure taken technical
business.
Business Highlights
- On April 21, 2008, Zhejiang Hongbo
Chemical Co. Ltd. ("Hongbo"), a
subsidiary of McVicar, closed
an acquisition of an 80% interest in
Luyuan Chemical Co. Ltd. ("Luyuan")
in Xiangshui city, China, for a
total cash consideration of 4
million RMB (approximately
CDN $ 0.6 million). Luyuan is a
manufacturer and supplier of
specialized chemical products
for industrial markets. One of Luyuan's
main products is a key raw
material in the intermediate chemicals
that Hongbo manufactures.
- On May 30, 2008, the Company completed a
private placement of
2,183,073 common shares for
gross proceeds of $3,056,302 at a price
of $ 1.40 per unit. Each unit
consisted of one common share of
McVicar and one-half of one
common share purchase warrant. Proceeds
from the Offering will be used
primarily to fund the acquisition and
working capital needs for
chemical business.
- On July 28, 2008, the Company increased
its ownership in McVicar
(Hong Kong) Advanced Materials
Co. Ltd., ("MAM"), from 51% to 90.5%
by way of purchase of shares
held by Shining Palace Holding Co.
Limited ("Shining Palace"). The
total consideration was satisfied by
the issue of 5,239,800 units of
the Company at an agreed issue price
of $1.40 per unit, each unit
consisted of one common share of McVicar
and one-half of one common
share purchase warrant.
- On September 27, 2008, the Company
registered its China operational
office, McVicar (Hang Zhou)
Management Co. Ltd., ("McVicar (HZ)"),
which was wholly owned by MAM,
with a total registered capital of
USD $2 million (approximately
CDN $ 2.4 million). The main
consideration to set up this
operational office in Hangzhou, China is
to centralize the Company's
chemical subsidiaries' R&D resources and
sales with the expectation to
enhance our competence in China.
- On September 26, 2008, the Company
reached an agreement with Ascend
Technologies Ltd. on the sale
of our 27% equity interest in Sino Lion
Nanjing Ltd.(" Sino Lion"),
based in Nanjing, China. The transaction
is valued at USD$ 850,000 in
cash consideration and is expected to
close in the second quarter of
2009.
- On September 15, 2008, JITE consolidated
the outstanding common
shares at a ratio of 1
consolidated share for 5 pre-consolidated
shares. The Company's holding
interest in JITE remains unchanged
after its share consolidations.
"2008 saw noticeable growth in sales and operating
income given current economic and market conditions," said Gang Chai,
McVicar's President and CEO. "This year, with continuing efforts to expand
our business, especially in the chemical industry through strategic
acquisitions, we also focused on improving operational efficiency to
support profitable growth, which is critical for us, to thrive in this
competitive marketplace and to face the challenging economy in 2009."
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McVICAR INDUSTRIES INC. PRESS RELEASE
January 7, 2009 Trading Symbol: MCV
MCVICAR ACQUIRES REMAINING MINORITY INTEREST IN ITS HONGKONG SUBSIDIARY:
McVicar Industries Inc. ("McVicar") announces that its Hong Kong
subsidiary, McVicar (Hongkong) Advanced Materials Co. Ltd. ("MAM"), has
reached an agreement with Sanlong Holdings Co. Ltd. ("Sanlong")
to exchange Sanlong's 9.5% equity interest in MAM for a 38% equity
interest in MAM's subsidiary Hangzhou Changlong Chemical Co. Ltd.
("Changlong"). As a result of this transaction, McVicar's interest in MAM
will be increased from 90.5% to 100% while MAM's interest in Changlong
will go from 100% to 62%.
Completion of this transaction is subject to applicable regulatory
approval.
About McVicar:
Headquartered in Toronto, Canada, McVicar Industries Inc. is focused on
the specialty chemical business through interests in companies operating
in the People's Republic of China. McVicar's operating companies include:
Zhejiang Hongbo Chemical Co. Ltd., Hongzhou Changlong Chemical Co. Ltd.,
and Jiangsu Luyuan Chemical Co. Ltd., all of which are specialty chemical
companies serving the personal care, pharmaceutical and industrial
markets.
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