WATERDOWN, ONTARIO — (Marketwired) — 11/12/14 — Opta Minerals Inc. (TSX: OPM) today announced results for the three and nine months ended September 30, 2014. All figures are reported in U.S. dollars and are in accordance with International Financial Reporting Standards (IFRS), except where otherwise noted.
David Kruse, President and CEO of Opta Minerals, noted „We are pleased with new business growth which has driven higher revenues in the third quarter compared to the second quarter and the comparable quarter of the previous year. New customer growth has come from both groups with a primary new account within the Steel and Magnesium segment. We have a number of other internal growth initiatives that are being pursued in both segments. Offsetting new business, economic conditions and a fierce competitive environment have prevented the Industrial Minerals segment from growing revenues and profits. We are working on new ways to compete in these tough markets and reassessing all aspects of the Industrial Minerals business. To this end post quarter the company has reduced headcount and certain other expenses in both Infrastructure and the corporate head office. These reductions were unfortunate but necessary and will reduce costs by approximately $1 million annually. We continue to reduce inventory levels from the December 31, 2013 year end balances which is freeing up cash flow for new growth initiatives. Key priorities remain the same to focus on revenue growth and cash generation.
„The Company continues to look at strategic alternatives for the business as announced on June 19, 2014.“
Operational and Financial Highlights:
Opta Minerals is a vertically integrated provider of custom process solutions and industrial mineral products used primarily in the steel, foundry, loose abrasive cleaning, water-jet cutting and municipal water filtration industries. The Company has production and distribution facilities in Ontario, Quebec, Saskatchewan, Louisiana, South Carolina, Virginia, Maryland, Indiana, Michigan, New York, Texas, Florida, Ohio, Idaho, France, Slovakia and Germany. Opta has one of the broadest product lines in the industry.
FOOTNOTES:
Earnings before income taxes and interest („EBIT“); and earnings before interest, income taxes, depreciation and amortization („EBITDA“) as defined below, are both non-IFRS earnings measures that do not have standardized measures prescribed by IFRS, and therefore may not be comparable to similar measures presented by other publicly traded companies.
Notes
Certain statements in this release constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements in this press release include, without limitation, statements relating to: internal growth initiatives that are being pursued by the Company; the Company–s focus on revenue growth and cash generation; and the Company–s continuing review of strategic alternatives with a view to enhancing value for all shareholders, as well as other statements which reflect the current expectations of management of the Company regarding the Company–s future growth, results of operations, performance, business prospects and opportunities. Wherever possible, words such as „may“, –would“, „could“, „should“, „will“, „anticipate“, „believe“, „plan“, „expect“, „intend“, „estimate“, „aim“, „endeavour“, „seek“, „predict“, „potential“ and similar expressions have been used to identify these forward-looking statements. These statements reflect management–s current beliefs with respect to future events and are based on information currently available to management of the Company. Forward-looking statements involve significant risks, uncertainties and assumptions. Many factors could cause the Company–s actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, without limitation: the impact of general economic conditions; the impact of specific industry conditions; the inability of the Company to successfully integrate acquired businesses or to achieve the anticipated benefits from such acquisitions; the risk of unexpected costs or liabilities relating to acquisitions; currency fluctuations and exchange rate risks; risks associated with foreign operations; governmental and environmental regulation; competition from other industry participants; cancellations of or the failure to renew purchase orders; production and delivery issues; quality, pricing and availability of raw materials; mining risks; and the other risks identified in the Company–s Annual Information Form and other public filings (copies of which may be obtained at ).
Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results, performance or achievements may vary materially from those expressed or implied by this press release. These factors should be considered carefully and reader should not place undue reliance on the forward-looking statements. Although any forward-looking statements contained in this press release are based upon what management currently believes to be reasonable assumptions, the Company cannot assure readers that actual results, performance or achievements will be consistent with these forward-looking statements, and management–s assumptions may prove to be incorrect. These forward-looking statements are made as of the date of this press release and, other than as required by law, the Company does not intend, and does not assume any obligation, to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.
(i)AOCI – Accumulated Other Comprehensive Income (Loss)
Contacts: Opta Minerals Inc. David Kruse President and Chief Executive Officer 905-689-7361, ext 405 905-689-3915 (FAX)
Opta Minerals Inc. Peter Fryters Chief Financial Officer and Treasurer 905-689-7361, ext 405 905-689-3915 (FAX)
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