COEUR D'ALENE, ID, Nov. 13 /CNW/ - WGI Heavy Minerals, Inc. (TSX: WG) today announced results for the third quarter and nine months ended September 30, 2007. All dollar amounts are in United States dollars unless otherwise indicated.
A summary of key financial results for the quarter and year-to-date is as follows:
Highlights
- Revenues increased 16% for the quarter to $6.7 million from
$5.8 million in the same period a year ago. Revenues for the nine
months ended September 30, 2007 increased 23% to $20.2 million from
$16.5 million in 2006.
- Gross margin remained relatively even with the prior year quarter at
21.2%. For the nine months ended September 30, 2007 gross margins
increased to 22.4% from 14.2% a year ago.
- The Company posted a net loss for nine months of $0.7 million or
$0.03 per share. This has significantly improved from the year ago
period's net loss of $3.2 million or $0.13 per share.
- At September 30, 2007 the Company had a cash position (including
short term investments) of $18.3 million.
"The Company's performance continues to improve, relative to the past. In absolute terms we desire still greater improvements, as do our shareholders. Achieving those will require sustained further effort. All garnet suppliers are experiencing changes in their ore bodies requiring improved and more precise mineral processing. WGI's products are well known for higher quality and reliability. However, maintaining this differentiation as feedstocks change requires near-term expenditures affecting earnings. We continue to improve. Our strategic planning process, mentioned in earlier communications, is seeking to identify additional opportunities to generate and deliver improved shareholder value." said Covell Brown, Chairman and CEO.
During the quarter Mrs. Gloria Marks assumed the role of CFO, which was vacated by Ms. Karla Wright Hayden as she went to pursue another opportunity. Mrs. Marks is highly experienced in accounting systems and will aid the company substantially to continue to improve our accounting and management information systems and performance.
Management's Discussion and Analysis
We encourage those interested in the company to read this quarter's Management Discussion and Analysis. The Company's affairs are described and reported in further detail there.
The Company's unaudited consolidated financial statement and the management's discussion and analysis for the nine months ended September 30, 2007 are available on the Company's website at www.wgiheavyminerals.com. Additional information related to the Company is also available on the SEDAR website at www.sedar.com. WGI Heavy Minerals, Inc. is a fully integrated miner, producer, and marketer of industrial-grade minerals and replacement parts for ultra-high waterjet cutting systems. The Company's operations include mining and processing facilities in Idaho, U.S. (Emerald Creek Garnet), Tamil Nadu, India (Bengal Bay Garnet) and Ermsleben, Germany (Kominex) and a manufacturing facility in Washington, U.S. (International Waterjet Parts).
This press release contains forward-looking statements concerning the business, operations, and financial performance and condition of WGI Heavy Minerals, Incorporated. A number of the matters discussed and statements made in the press release contain forward-looking statements reflecting current expectations regarding future assets. When used in this press release, the words "believe", "anticipate", "intend", "estimate", "expect", "project", and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such words. These forward-looking statements are based on current expectations and are naturally subject to risks, uncertainties, and changes in circumstances beyond management's control that may cause actual results to differ materially from those expressed or implied by such forward-looking statements. Factors that may cause such differences include but are not limited to: exploration and development risks; risks related to permits and title to property; risks related to foreign countries and regulatory requirements; operating hazards; foreign currency fluctuations; competition; fluctuations in the market price of mineral commodities and transportation costs; uncertainty as to calculations of mineral deposit estimates; uninsured risks; and dependence upon key management personnel and executives. Actual results may differ materially from those expressed here. You should not place undue reliance on such forward-looking statements. The Company is under no obligation to update or alter such forward-looking statements, whether as a result of new information, future events, or otherwise.
WGI Heavy Minerals, Incorporated
Financial Information
($ in thousands, except for per share amounts)
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As at Sept. As at December
Consolidated Balance Sheet 30, 2007 31, 2006
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Assets
Cash and Short term deposits $18,277 $18,321
Other Current Assets 8,368 8,136
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Total Current Assets 26,645 26,456
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Property, plant and equipment 7,884 7,279
Goodwill and Intangible Assets 1,987 2,049
Other Assets - -
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Total Assets $36,516 $35,784
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Liabilities & Equity
Current Liabilities $ 4,903 $ 4,226
Long-term debt 722 1,067
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Total Liabilities 5,625 5,293
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Capital stock 53,388 53,432
Stock-based compensation 2,423 2,088
Deficit (25,165) (24,510)
Foreign currency translation account 245 (519)
Total Equity 30,891 30,491
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Total Liabilities & Equity $36,516 $35,784
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3 months 3 months 9 months 9 months
ended ended ended ended
Consolidated Statements of Sept. 30, Sept. 30, Sept. 30, Sept. 30,
Operations and Deficit 2007 2006 2007 2006
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Sales $6,708 $5,800 $20,214 $16,474
Operating Costs 4,981 3,951 14,815 12,320
Depreciation, depletion and
amortization 305 548 879 1,816
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Gross Margin 1,422 1,301 4,520 2,338
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Gross Margin % 21.2% 22.4% 22.4% 14.2%
Expenses
Operating G&A 1,180 1,161 3,262 3,528
Corporate G&A 441 372 1,291 1,168
Interest Income (234) (220) (675) (623)
Interest Expense 17 43 93 135
Stock based compensation 113 91 334 819
Development costs 73 45 490 135
Other Expenses/(income) 21 172 50 274
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Total 1,613 1,664 4,845 5,435
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Loss before taxation &
Non-controlling interest (191) (363) (325) (3,097)
Taxes & Non-controlling loss 130 37 330 135
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Loss for the period $(321) $(400) $(655) $(3,232)
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Basic and diluted loss per
common share $(0.01) $(0.02) $(0.03) $(0.13)
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3 Month 3 Month
Period Period YTD YTD
Consolidated Statements Sept. 30, Sept. 30, Sept. 30, Sept. 30,
of Cash Flows 2007 2006 2007 2006
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Cash flows from operating
activities $(101) $(94) $1,194 $(1,671)
Cash flows from investing $(473) $(1,935) $4,756 $4,196
Cash flows from financing $(189) $(325) $(327) $(960)
Effect of exchange rate changes
on cash & cash equivalents $84 $(29) $180 $(23)
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Inc. (Dec.) in cash and cash
equivalents $(679) $(2,383) $5,803 $1,542
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Beginning cash & cash equivalents $16,531 $5,893 $10,049 $1,968
Ending cash & cash equivalents $15,852 $3,510 $15,852 $3,510
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All figures stated in U.S. dollars unless noted otherwise.