MONTREAL, QUEBEC--(Marketwired - Sep 29, 2014) - Perlite Canada inc. (the «Corporation») (TSX VENTURE:PCI) announces hereby the results for its third quarter 2014 ended on July 31, 2014.
The Corporation generated revenues of $1,327,087 during the third quarter ended July 31, 2014 (the "3rd Quarter 2014") compared to $ 1,450,138 as at July 31, 2013, which represents a decrease of approximately 9%. The Corporation recorded earnings before taxes of $24,454 during the 3rd Quarter 2014 compared to earnings before taxes of $44,106 for the third quarter of 2013. The decrease of the earnings before taxes during this period is mainly explained by the decrease of the Corporation's sales during the Quarter. The Corporation generated net earnings of $24,454 for the 3rd quarter 2014 compared to net earnings of $44 106 for the same period in 2013.
For the nine month period ended July 31, 2014, the Corporation generated revenues of $4,435,694 compared to $4,484 316 for the same period in 2013, being a similar amount of sales. The increase of the Corporation's sales during the first and second Quarters has therefore offset the decrease of the Corporation's revenues during the 3rd Quarter 2014. During this nine month period ended July 31, 2014, the Corporation generated earnings before taxes of $170,327 compared to earnings before taxes of $236,333 for the nine month period ended July 31, 2013. Decrease of earnings during this period compared to the same period in 2013 is mainly explained by an unfavorable foreign exchange impact of $47,449 and a write-down of property, plant and equipment held for sale of $34,746. For the nine month period ended July 31, 2014, the Corporation generated net earnings of $170,327 compared to net earnings of $236,333 in 2013.
It should be noted that the Corporation contests the payment of accounts payable claimed by a vermiculite supplier. The Corporation believes that the supplier has abused its dominant position on the vermiculite market by imposing unfair and abusive terms, conditions and pricing causing significant damages to the Corporation over a long period of time. After several months of negotiation, this supplier filed an action in the Superior Court of Quebec, district of Montreal (Québec) in August, 2014 claiming to the Corporation all the amounts billed to it by this supplier totaling $925,401.56 USD (1,009,057.86 $ CDN as at July 31, 2014 and 964,916.21 $ CDN as at October 31, 2013). The Corporation vigorously contests this legal action. According to our legal counsels, the outcomes of this legal action are not currently determinable. The amount claimed is however reported in the financial statements of the Corporation as an accounts payable.
Perlite Canada inc. has become a leading Corporation in Canada in the processing, distribution and sale of perlite and vermiculite, two minerals used in industry and horticulture.
The common shares of Perlite Canada inc. are listed for trading on the TSX Venture Exchange.
This press release contains forward-looking statements to which are associated some risks and uncertainties. Any statement contained in this present press release that does not constitute an historical fact can be considered as a forward-looking statement. In this present press release, verbs such as "believe", "anticipate", "assess" and other similar expressions indicate generally forward-looking statements. Those statements do not warrant as for the future performance of Perlite Canada inc. and they suppose known and unknown risks as well as uncertainties in such a way that true future perspectives, returns or results of the Corporation may be notably different of future returns or results expressed or implied by these forward-looking statements.
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