Polaris Holding Company Report $443,000 Loss
In a filing with the Bermuda Stock Exchange, Polaris Holding Company Limited, reported its financial results for the year ended March 31, 2015; reporting a $443,000 loss.
Chairman of the Board, Mrs. Cheryl Hayward-Chew stated: “On September 1, 2015 Polaris Holding Company Limited [Polaris], parent to Stevedoring Services Limited [Stevedoring], reported its financial results for the year ended March 31, 2015 and as anticipated the Company reflected a loss of [$443K] for the 12 month period [2014 – [$1.94 million].
“Cargo volumes, having started the year positively, softened during the second half and ended down [2.5%] relative to fiscal 2014. Consistent with the cargo decline, Polaris’ revenue at $9.22 million was modestly off fiscal 2014 which reflected a $9.30 million top line.
“On the expense side driving Polaris’ deficit were restructuring costs, an investment in infrastructure, and the culmination of various non-recurring charges; all of which having now been completed, pave the way for normalized results going forward.
“Warren Jones, CEO, predicts a more robust and profitable fiscal 2016, noting that quarter one results for Polaris reflected profits above $450K.
“Fiscal 2015’s spending included over $200K for the scheduled maintenance on the Company’s crane, spending to rebuild its IT network, staff training, and early retirement charges.
“Mr. Jones revealed that with changes in fiscal 2015 and scheduled retirements in 2016, Polaris’ staffing costs are to reduce by nearly 10%. Belt tightening has occurred on both the administrative side and from unionized labour. Savings focused on attrition with retirements and work permit expirations will give rise to permanent savings.
“In February 2015 Mr. Jones and the Bermuda Industrial Union’s President Chris Furbert successfully negotiated a new three year contract for Stevedoring and the Portworkers Division of the Bermuda Industrial Union.
“Eric Berkeley, Operations Manager at Stevedoring Services reflected “Labour is aligned and everyone continues to recognize Stevedoring’s challenges and the need for compromise.”
“Stevedoring Services reflected its new flexibility and versatility in April 2015 when operations expanded outside of the Hamilton Docks, the Company successfully bidding and unloading America’s Cup equipment for Oracle Team USA at Dockyard.
“Notwithstanding its recent and past losses, Polaris continues to be on strong financial footing. At year end the Company paid off its $823K bank loan and is announcing a $500K share buy-back offer.
“Cheryl Hayward-Chew, Chair of Polaris announced “The Board of Directors has resolved that Polaris will undertake, over the coming six months, an offer to acquire up to 10% of its shares at a price of up to $4.00 per share. The buy-back price reflects a premium over the current $3.15 market price listed on the Bermuda Stock Exchange.
“At $4.00 per share, Company stock is well below book value and we see the offer as a win-win for both stakeholders who may look to liquidate their holdings, and more specifically for remaining shareholders who continue, like the Board, to be bullish on Polaris’ future.”
The share-buyback is to be vetted at Polaris’ Annual General Meeting on September 22, 2015. In fiscal 2015, consistent with the past two years, Polaris paid dividends of $0.20 per share.
In addition to Stevedoring Services Limited, Polaris Holding Company Limited operates Mills Reach Holding Company Limited, a company which holds real estate located at Mill Reach Lane, Pembroke.
It also operates Equipment Sales and Rental Limited, a company which owns and leases heavy operating machinery and equipment to Stevedoring Services Limited.
All entities are wholly owned by Polaris Holdings Limited with consolidated results incorporated in Polaris Holding Company Limited’s March 31, 2015 financial statements.
