Polaris Materials Corp. reported the financial results for its third quarter ending Sept. 30, 2015. It's third-quarter gross profit of $1.6 million was an increase of 116 percent over the same period in the previous year.
Gross profit per ton of $2.13 represented the highest recorded rate for any quarter by the company and triple the $0.70 gross profit per ton recorded in 2014. The company also recorded its fifth consecutive quarter of positive adjusted EBITDA in the third quarter of $2.0 million ($2.80/ton) compared with $0.7 million ($0.67/ton) last year for the same quarter.
Gross profit for the nine months ended Sept. 30, 2015, was $3.3 million compared with $0.5 million over the same period in the previous year. Adjusted EBITDA for the first nine months of 2015 was $4.1 million compared with $0.1 million over the same period in the previous year
Sales of aggregates in the third quarter were 730,000 tons with revenue of $10.4 million, 29 percent and 23 percent, respectively, below the same quarter in 2014. For the nine months ended Sept. 30, 2015, sales of aggregates of 2.1 million tons and revenue of $31.2 million were 21 percent and 11 percent, respectively, below the same period in the previous year.
Ken Palko, president and CEO, commented: "We were pleased to report another record gross profit per ton in the quarter which again demonstrates the company's continuing margin expansion. The strong financial performance this quarter was driven by increased average selling prices and reduced unit costs, together with the benefit of a favorable Canadian dollar exchange rate. The combination of these factors produced our best quarterly financial results to date including adjusted EBITDA of $2.0 million, or $2.80 per ton, compared with $688,000, or $0.67 per ton last year for the same quarter. The sales volume in the third quarter was a reflection of the time required to effect positive changes to product distribution following the disruption reported in the second quarter, and not a reflection of a change in the markets. Sales improved in the third quarter of 2015 when compared to the first two quarters of the year, as the company's Strategic Alliance Partner introduced a new supply chain-management initiative. It is pleasing to report that sales in October 2015, have further increased to meet original budget expectations and that construction activity remains relatively robust in northern California. We were also pleased to see the House of Representatives pass the Surface Transportation and Reauthorization and Reform Act earlier this month, contributing to a very positive outlook for U.S. construction activity."