Stocks & Investing
Stocks and Investing
Stocks and Investing
Tue, June 14, 2011
Mon, June 13, 2011 
TORONTO, June 13, 2011 /CNW/ - Marsulex Inc. (TSX: MLX) today announced results for the three months ended March 31, 2011. Overall the businesses continued to perform well. These summarized financial results exclude the results for the Stablex business ("Stablex"), which have been recorded as discontinued operations. The first quarter financial statements and MD&A will be available on SEDAR at [ www.sedar.com ] and on the Company's website at [ www.marsulex.com ].
The Company is reporting its results for the first time in accordance with International Financial Reporting Standards ("IFRS"). The impact of the adoption of IFRS to the Company's operating results is not considered to be material.
| Three months ending March 31, | |||
| (In millions of dollars, except per share amounts) | 2011 | 2010 | % chg |
| Revenue | $ 80.3 | $ 55.2 | 45.5% |
| Gross profit | 25.7 | 21.5 | 19.5% |
| SG&A 1 | 9.2 | 7.6 | 21.1% |
| EBITDA 2 | 16.5 | 13.9 | 18.7% |
| Earnings from continuing operations before income taxes | 9.6 | 6.7 | 43.3% |
| Net earnings from continuing operations | 6.7 | 4.8 | 39.6% |
| Earnings per share from continuing operations- basic | 0.20 | 0.15 | 33.3% |
- Selling, general, administrative, and other costs, including foreign exchange.
- Earnings before interest, income taxes, depreciation, and amortization.
On May 5, 2011, the Company announced that it had entered into an Arrangement Agreement with Chemtrade Logistics Income Fund which will result in the acquisition by Chemtrade of 100% of the outstanding shares of the Company. The transaction excludes the shares of Investis U.S. Inc. which holds the Company's MET business. Pursuant to the Arrangement Agreement, the Company's shareholders will have the option of receiving either (a) $13.80 cash; or (b) $10.50 in cash and a common share of Investis U.S. Inc. The transaction is subject to shareholder approval of at least two-thirds of the votes cast. A shareholders' meeting will be held on June 22, 2011 to request approval of the Arrangement.
Commenting on the announcement, Marsulex President and Chief Executive Officer, Mr. Laurie Tugman said, "The process represents the culmination of the strategic review which we announced in March 2010. I want to recognize the contribution from our directors and employees and the ongoing support of our shareholders through this process."
Marsulex, which is based in Toronto, Ontario, is a leading provider of industrial services, including environmental compliance solutions for air quality control, processing or handling of industrial by-products or waste streams, and is a producer and marketer of sulphur-based industrial chemicals. The Company's services and products are provided to a broad base of industrial customers in a wide range of industries. Website: [ www.marsulex.com ]
Given the announcement of the Arrangement, a conference call on first quarter results will not be held.
Information in this news release that is not current or historical factual information may constitute forward-looking information, including future-oriented financial information and financial outlooks, within the meaning of securities laws. This information is based on certain assumptions regarding expected growth, results of operations, performance, and business prospects and opportunities (collectively, the "Assumptions"). While the Company considers these Assumptions to be reasonable, based on information currently available, they may prove to be incorrect. Forward-looking information is subject to a number of risks, uncertainties and other factors that could cause actual results to differ materially from what the Company currently expects. These risks, uncertainties and other factors include, but are not limited to: the Company's ability to renegotiate contracts; the impact of acquisitions and growth opportunities; the timing and market acceptance of future products; competition in the Company's markets; the Company's reliance on customers; fluctuations in currency and exchange rates; commodity prices or interest rates; the Company's ability to maintain good relations with its employees; changes in the law or regulations regarding the environment or other environmental liabilities; the Company's ability to integrate acquisitions; the Company's ability to protect its intellectual property; and the outcome of a strategic review (collectively, the "Risks"). For more exhaustive information on these Risks you should refer to our Company's filings with the securities regulatory authorities, including the Company's most recently filed annual information form, which is available on SEDAR at [ www.sedar.com ]. Additional information relating to the Company can be found on the SEDAR website.
Actual results may differ materially from what the Company currently expects. Other than as required under securities laws, we do not undertake to update any forward-looking information at any particular time. The reader should not place undue importance on forward-looking information and should not rely upon this information as of any other date. All forward-looking information contained in this news release is expressly qualified in its entirety by this cautionary statement.
