MONTREAL, QUEBEC--(Marketwire - June 29, 2012) - Perlite Canada inc. (TSX VENTURE:PCI) (the «Company») announces hereby the results for its second quarter 2012 ended on April 30, 2012 (the "2nd Quarter 2012").
The Company's sales total $1,648,007 for the 2nd Quarter 2012 compared to $2,188,504 for the second quarter of the fiscal year 2011 which is a decrease of approximately 25 %. For the six months period ended on April 30, 2012, Company's business revenues were $3,331,489 compared to $3,788,906 for the same six month period in 2011.
The Company posted a net loss of $39,239 during the 2nd Quarter 2012 compared to net earnings of $42,951for the second quarter of the fiscal year 2011. For the six month period ended on April 30, 2012, the Company recorded a net loss of $58,055 compared to net earnings of $19,661 for the same period in 2011.
As anticipated, the peat shortage faced by some Company's major clients since the end of the first quarter had a significant impact on the Company's sales. This peat shortage has an impact more particularly on our Saint-Pacôme plant which serves producers from the lower Saint-Lawrence river area and from New-Brunswick. Management of the Company believe that the decrease in Company's sales was also caused by the significant price raise for vermiculite during the last two years and by the increase of the Canadian currency in relation to the American currency which generated a decrease of the Company's sales in the United States and supported a greater competition on the Ontario territory from American perlite producers.
In order to compensate for the decrease in sales and for the keener competition on the Ontario territory, the Company is presently working out a more aggressive sales and marketing plan that should be in place for the next fiscal year and is implementing an action plan that notably includes a cost reduction strategy.
Perlite Canada inc. has become a leading company 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 Company may be notably different of future returns or results expressed or implied by these forward-looking statements.
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