Luxor Reports $302,000 Loss for First Quarter 2016 as Significant Start Up Costs are incurred to Commence USA Turnkey Framing Operations
VANCOUVER, British Columbia, June 02, 2016 (GLOBE NEWSWIRE) — Luxor Industrial Corporation (TSX-V:LRL) (OTC:LXRRF) is pleased to provide an update on corporate activities. Luxor’s sales for the 3 month period ending March 31, 2016 were $2,584,000 compared to $998,827 for the same period in 2015. The net loss for 3 month period ending March 31, 2016 was $302,734 compared to a net profit of $156,113 for the same period in 2015.
Although sales increased in the first quarter of 2016 compared to 2015, the net loss was the result of significant administrative and legal costs incurred in the acquisitions of Mill Frame LLC and Mill Frame Inc. and the securing of a $5,275,000 credit facility with HSBC.
In addition, increased overhead was incurred to secure 4 turnkey framing contracts worth over US $11 million. Work commenced on 2 contracts in the latter part of the second quarter resulting in minimal sales (invoicing). All 4 contracts were under installation, as well as the prefabrication of products, at the start of the second quarter and sales for the 5 month period ending May 31, 2016 exceeded $7,000,000.
Total turnkey framing contracts for 2016 total in excess of $20 million. The Company expects to announce additional turnkey framing contracts in the near future.
Tim Charman, CFO of Luxor, comments, “The continuous cash flow generated by our subsidiary Western Interlok Systems Ltd., which has shown positive EBITA in every quarter since 2014 was very helpful for the Company in managing a stressful cash flow situation as the HSBC line did not come into effect until May.”
As at the date of this news release, Luxor has 37,686,775 shares issued and outstanding.
About Luxor Industrial Corporation
Luxor has vertically integrated through the recent acquisitions of turnkey framing companies in Canada and the United States. The Company now distributes Pre-Fabricated Wall Panels and a complete line of Multi-Family Engineered Lumber. http://www.millframe.com
Luxor is involved in the development, engineering, manufacturing and marketing of engineered wood products. In the industrial sector, it manufacturers wood mat products. In the residential sector it manufactures its patented IBS 2000® engineered floor bridging, fire protected architectural wood products, and FastFrame™ wall components. For further information, visit Luxor’s website at www.luxorcorp.com.
This news release contains forward looking statements. Although Luxor believes that the expectations reflected in these forward looking statements are reasonable, undue reliance should not be placed on them because Luxor can give no assurance that they will prove to be correct. Since forward looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Additional information may be accessed through the Sedar website: www.sedar.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
CONTACT: Contact: Luxor Industrial Corporation Terry Lashman (800) 665-2454 (604) 684-7929 John Taylor (877) 496-4355 (604) 864-9601 www.luxorcorp.com