WGI Heavy Minerals announces third quarter 2008 results and updates timing of distribution

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[{"type":"text","content":"\n\n\n\nCOEUR D'ALENE, ID, Nov. 11 /CNW/ - WGI Heavy Minerals, Incorporated (TSX:\nWG) today announced results for the third quarter and first nine months ended\nSept. 30, 2008. All dollar amounts are in United States dollars unless\notherwise indicated. Results have been filed and may be viewed at\nwww.sedar.com.\n\n\nThird Quarter Results\n\n\nRevenues for the three-month period ended September 30, 2008 increased to\n$7.46 million from $6.68 million in the same period of 2007, due to growth\nacross other abrasives lines, waterjet revenues from International Waterjet\nParts ("IWP") and 3% growth in garnet sales. Garnet volumes decreased by 13%\ndue to lack of supply as a result of inclement weather in India, however\nprices increased by 18%, resulting in an increase in garnet sales of 3%.\n\n\nGross profit margins decreased to 18% in the third quarter of 2008 from\n21% in the same period a year ago. Contributing to this decrease was a rise in\nfuel costs and limited production out of India and Emerald Creek Garnet\n("ECG").\n\n\nOperating general and administrative expenses increased 5% year-over-year\ndue to increased marketing and sales expenses. Non-operating general and\nadministrative expenses decreased 168% over the same 2007 three-month period\ndue to the reclassification of expenses related to the sale of Transworld\nGarnet India Pvt. Limited ("TGI"), reduced overhead due to the change in the\nCEO and reduced travel expenditures. The Company also recognized a gain of\n$0.51 million on the write-off and subsequent receipt of insurance proceeds on\na warehouse that was damaged by heavy snow in early 2008.\n\n\nInterest income decreased 62% to $0.09 million from $0.23 million in the\nthree month period ended September 30, 2008, due to lower interest rates on\nshort-term deposits and smaller bank deposits.\n\n\nIncome tax expense in the quarter was $0.07 million as a result of\nprofits generated by the Kominex, the Company's European subsidiary.\n\n\nThe Company recognized a loss of $0.46 million on the sale of its\ninvestment in TGI, including expenses incurred in the second quarter of 2008\nand recorded a gain on the recovery of ECB loans in the amount of $10.60\nmillion, netting the Company $10.14 million, net of related taxes, for the\nquarter ended September 30, 2008. The Company also reco...

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