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Polaris announces first quarter financial results and conference call

Tuesday, May 08, 2012 6:47 PM

VANCOUVER, May 8, 2012 /CNW/ - Polaris Minerals Corporation (TSX: PLS) today reported financial results for the quarter ended March 31, 2012. All financial results are in US dollars unless otherwise noted.

Sales of 498,000 tons were 72% higher than the first quarter of 2011. Revenue for the quarter was $7.1 million, an increase of 91% over the prior year period. The cost of goods sold, net of shipping fuel surcharges, increased by 48%, a 14% reduction per ton compared with the first quarter of 2011.

The net loss attributable to shareholders was $4.3 million ($0.08 loss per share) in the quarter compared with a net loss of $3.7 million ($0.07 loss per share) in the comparative quarter last year. The loss in the quarter included a $0.8 million loss arising from the settlement of the Company's loan with its exclusive shipping contractor. EBITDA for the quarter improved by 29% to negative $1.26 million.

Herb Wilson, President and CEO, commented: "The strong increases in sales and revenue this quarter, coupled with the significant reduction in the unit cost of goods sold, are a continuation of the positive trends we saw emerging during the second half of last year. Demand is continuing to increase in our principal market in northern California through higher levels of privately funded building and construction, and bolstered by the state's announcement in April of more than $8 billion of infrastructure projects in the greater San Francisco Bay area. Price increases were achieved on a proportion of our sales in January which has been followed by further increases effective from the beginning of May. This combination of volume and price advances marks a significant and welcome change in the business climate."

He continued: "The Company's bridge loan and all outstanding debt was repaid in the quarter and consolidated into a single CAD$15 million issue of senior secured notes.


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