DFW AIRPORT, Texas -- American Locker Group Incorporated (OTCQB: ALGI), the worldwide leader in secure storage solutions, today reported its second quarter results for the period ended June 30, 2011. American Locker reported second quarter net sales of $3.3 million and net income of $141,000 or $0.09 per share.
About American Locker Group IncorporatedCash flow increased to $11.1 million in the June 2011 quarter compared to $8.5 million in the 2010 quarter. The $2.6 million increase is primarily the result of improved operating margins resulting from substantially higher copper and gold prices offset by the effect of the weaker US Dollar and lower sales volumes from the Mount Polley and Huckleberry mines.American Locker is the world's premier supplier of secure storage solutions under the American Locker and Canadian Locker brands. The Company is best known for manufacturing and servicing the widely-utilized key and lock system with the iconic plastic orange cap. Its Security Manufacturing Corporation subsidiary is a leading provider of multi-tenant mailboxes.Gains on derivative instruments were $1.7 million in the June 2011 quarter compared to gains of $11.1 million in the June 2010 quarter including unrealized net gains on copper and currency derivatives of $3.7 million in the June 2011 quarter compared to unrealized net gains of $12.1 million in the June 2010 quarter. The Company realized losses of $2.0 million on copper and currency derivatives in the June 2011 quarter compared to losses of $1.0 million in the June 2010 quarter."The successful completion of our relocation to DFW Airport eliminates market concerns that may have existed concerning our ability to successfully execute our move plan without interfering with our business and will allow management to increase our focus on growing the business," said Paul M. Zaidins, President. He added that, "It is a testament to the quality of our people that we were able to increase earnings and revenue while relocating our primary manufacturing facility during the second quarter."www.canadianlocker.comMill throughput averaged 21,852 tonnes per day for the 2011 second quarter, up substantially from the 2011 first quarter when weather hampered throughput averaging 19,055 tonnes per day. Copper and gold production was up compared to the 2011 first quarter at approximately 7 million pounds copper and 10,770 ounces gold. All ore continues to come from the Phase 3 pushback of the Springer pit. Shipments of dense media magnetite in June 2011 were 5,111 tonnes.
Exploration at Mount Polley continued with two surface diamond drills and one underground diamond drill. Surface drilling of 12,290 metres in 21 drill holes were completed in the WX, C2, Cariboo and Springer areas and 4,020 metres was cored in 29 drill holes from underground at the Boundary zone. Surface exploration remains focused on targets within the C2 and Cariboo areas, and further underground development is planned for the Boundary zone now that the initial phase of underground drilling is complete.Another thing to consider when choosing from the various styles of end tables is that you should choose end tables that meet your personal needs. For instance, you may have decorated your family room in a traditional style, but if an arts & crafts end table would serve your needs better than a traditional end table and you can find one that looks good with your other furniture, you should probably choose the arts & craft style instead of the traditional.Thanks to the wide selection offered by the various styles of end tables, it�s very easy to find exactly what your heart desires. Whether you want contemporary end tables made from metal or traditional end tables crafted from wood, you are sure to come across many end tables that offer exactly what you are looking for.The increase in net income for the second quarter of 2011 as compared to 2010 is driven by the increase in revenue, partially offset by increased rent expense of $89,000 and increased depreciation of $88,000. The increase in the net loss for the first six months of 2011 as compared to 2010 is driven by an increase in rent expense of $148,000 and an increase in depreciation expense of $156,000. The increase in rent expense is due to the rent for the new facility. The increase in depreciation is due to depreciation of the lockers used in the Disneyland concession contract as well as capital improvements related to the move to the new facility.Revenues were $39.4 million in the June 2011 quarter compared to $53.4 million in the 2010 quarter. The June 2011 quarter includes one concentrate shipment from the Mount Polley mine and one concentrate shipment from the Huckleberry mine, compared to two concentrate shipments from each mine in the comparative quarter. Variations in quarterly revenue attributed to the timing of concentrate shipments can be expected in the normal course of business.
Income before taxes for the three months ended June 2011 decreased to $11.0 million from $17.4 million in the June 2010 quarter. The Company recorded a net income of $8.0 million in the June 2011 quarter compared to net income of $13.6 million in the 2010 quarter. Adjusted net income in the quarter was $5.4 million or $0.15 per share, versus $1.8 million or $0.05 per share in the June 2010 quarter. Adjusted net income is calculated by removing the unrealized gains and losses, net of related income taxes, resulting from mark to market revaluation of copper and foreign exchange derivative instruments and in 2010, unrealized share based compensation expense. Adjusted net income is not a term recognized under IFRS in Canada however, it does show the current period financial results excluding the effect of items not settling in the current period.
In the interests of providing Company shareholders and potential investors with information regarding the Company, including the Company’s assessment of its and its subsidiaries’ future plans and operations, certain statements included in this press release may constitute forward-looking information or forward-looking statements (collectively, “forward-looking statements”). All statements contained herein that are not clearly historical in nature are forward-looking, and the words “anticipate”, “believe”, “expect”, “estimate” and similar expressions are generally intended to identify forward-looking statements. Actual events or results may differ materially. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievement since such expectations are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause the Company’s actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, the Company and the foregoing list of important factors is not exhaustive. These forward-looking statements made as of the date hereof disclaim any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise. Company shareholders and potential investors should carefully consider the information contained in the Company’s filings with United States securities administrators at www.sec.gov before making investment decisions with regard to the Company.
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