Polaris Minerals reported financial results for the quarter ended June 30. Revenue of $6.2 million in the quarter represented a 113% increase over revenue of $2.9 million generated in the first quarter
Polaris Minerals reported financial results for the quarter ended June 30. Revenue of $6.2 million in the quarter represented a 113% increase over revenue of $2.9 million generated in the first quarter, but a reduction of 6% over the second quarter of 2008. Revenue for the first six months was $9.1 million, on 693,000 tons sold, a decrease of approximately 30% over the comparable 2008 period.
The net loss for the quarter was $3.3 million compared with a net loss of $1.9 million for that quarter in 2008. For the first six months of 2009, the company had a net loss of $4.7 million compared with a net loss of $4.4 million in the comparable 2008 period. The company had an adjusted EBITDA loss for the quarter of $1.8 million compared to a gain of $300,000 generated in the prior year.
Herb Wilson, president and CEO, said: "The positive impact from the Federal Economic Stimulus Plan and the American Recovery and Reinvestment Act, which we expected to boost demand during the second quarter, has not yet materialized. As a consequence of the ongoing recession in the U.S. and Canada, coupled with California's budget difficulties and unusually wet weather, we experienced a volume reduction of approximately one-third during the first six months of 2009. To mitigate the effect of lower demand, we have reduced operating hours, rationalized production and aggressively managed costs. During the second quarter, however, we incurred unavoidable dead-freight costs of $241,000, arising from the need to dispatch partially loaded vessels from the Orca Quarry to California, which was a necessary action to balance customers' product requirements. Despite the reduction in demand, we are pleased to report that the average selling price for our products, net of recovered shipping fuel surcharges, has remained stable.
"Since March 2007, Polaris has been and remains an operating and development company. Although circumstances beyond our control have influenced the growth of our operations, the development focus of the company continues to make good progress in the securement of new distribution terminals in southern California. The permitting phase of the Pier B land in the Port of Long Beach continues satisfactorily and, together with our strategic alliance partner, on Aug. 4, 2009, we entered into an exclusive negotiating agreement with the Port of San Diego. This provides time to negotiate an option to lease a site within the 10th Avenue facility, on which to develop a receiving terminal. We continue to put a high priority on securing the rights to develop these terminals against the belief that diminishing and irreplaceable local resources in southern California will need to be augmented by imported materials as market demand returns to more normal levels.
"Our two California customers report that new contract bidding activity increased in July 2009. Polaris, in common with the U.S. construction industry, now anticipates that aggregate intensive projects, committed under various government infrastructure investment programs, will have a positive impact on volumes, perhaps towards the end of 2009, but more predictably in 2010 and thereafter. In the meantime, we continue to work closely with our customers and shipping partner to ensure that the company is managed as efficiently as possible."