Marsulex announces second quarter 2010 results

TORONTO, July 28 /CNW/ - Marsulex Inc. (TSX: MLX) today announced strong results for the three and six months ended June 30, 2010. EBITDA was $21.9 million for the quarter, compared to the record level reported a year ago as a result of record earnings from Marsulex Environmental Technologies ("MET") in 2009. The second quarter financial statements and MD&A will be available on SEDAR at www.sedar.com and on the Company's website at www.marsulex.com.

    
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                                   Three
    (In millions of        months ending           Six months ending
     dollars, except             June 30,                    June 30,
     per share                                %                           %
     amounts)             2010      2009    chg       2010      2009    chg
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    Revenue           $   81.0  $   89.4   -9.4%  $  143.7  $  157.9   -9.0%
    Gross profit          30.3      43.1  -29.7%      54.0      65.5  -17.6%
    SG&A(1)                8.4       7.9    6.3%      17.5      18.8   -6.9%
    EBITDA(2)             21.9      35.2  -37.8%      36.5      46.7  -21.8%
    Earnings before
     income taxes         11.7      25.8  -54.7%      17.3      27.9  -38.0%
    Net earnings           7.9      17.3  -54.3%      11.7      18.9  -38.1%
    Earnings per
     share - basic        0.24      0.53  -54.7%      0.36      0.57  -36.8%

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    1.  Selling, general, administrative, and other costs, including foreign
        exchange.
    2.  Earnings before interest, income taxes, depreciation, and
        amortization.
    

Commenting on the results, Marsulex President and Chief Executive Officer, Mr. Laurie Tugman said, "The Company produced strong results for the second quarter of 2010. EBITDA for the quarter was the second highest on record, surpassed only by the second quarter of 2009."

Quarterly Highlights

    
    -   Western Markets reported higher EBITDA on increases in volume of
        sulphur-based products. Product demand remains robust buoyed by
        higher demand from pulp customers.
    -   Industrial Services EBITDA was $12.7 million for the quarter,
        approximately 6.9% below the second quarter of 2009. On a local
        currency basis, results were consistent with 2009.
    -   MET results continued to be strong in the quarter and backlog remains
        healthy with work progressing on projects announced earlier in 2010.
        The second quarter of both 2010 and 2009 included project closeouts.
    -   Corporate costs include $0.4 million ($1.6 million for the year to
        date) related to the strategic review.
    

Mr. Tugman said, "The strategic review continues to be a very thorough process that involves the board, management, and our financial advisors. We are unable to say how long the process will take and whether it will result in any transaction. In the meantime, the Company continues to conduct its business as usual and remains fully focused on providing environmental compliance solutions for customers."

Marsulex, which is based in Toronto, Ontario, is a leading provider of industrial services, including environmental compliance solutions for air quality control, processing or handling of industrial by-products or waste streams, and is a producer and marketer of sulphur-based industrial chemicals. The Company's services and products are provided to a broad base of industrial customers in a wide range of industries. Website: www.marsulex.com

A conference call with analysts and portfolio managers to review the second quarter 2010 results will be webcast live on www.marsulex.com and www.newswire.ca on Thursday, July 29, 2010 at 10:00 a.m. Eastern Time.

Information in this news release that is not current or historical factual information may constitute forward-looking information, including future-oriented financial information and financial outlooks, within the meaning of securities laws. This information is based on certain assumptions regarding expected growth, results of operations, performance, and business prospects and opportunities (collectively, the "Assumptions"). While the Company considers these Assumptions to be reasonable, based on information currently available, they may prove to be incorrect. Forward-looking information is subject to a number of risks, uncertainties and other factors that could cause actual results to differ materially from what the Company currently expects. These risks, uncertainties and other factors include, but are not limited to: the Company's ability to renegotiate contracts; the impact of acquisitions and growth opportunities; the timing and market acceptance of future products; competition in the Company's markets; the Company's reliance on customers; fluctuations in currency and exchange rates; commodity prices or interest rates; the Company's ability to maintain good relations with its employees; changes in the law or regulations regarding the environment or other environmental liabilities; the Company's ability to integrate acquisitions; the Company's ability to protect its intellectual property; and the outcome of a strategic review (collectively, the "Risks"). For more exhaustive information on these Risks you should refer to our Company's filings with the securities regulatory authorities, including the Company's most recently filed annual information form, which is available on SEDAR at www.sedar.com. Additional information relating to the Company can be found on the SEDAR website.

Actual results may differ materially from what the Company currently expects. Other than as required under securities laws, we do not undertake to update any forward-looking information at any particular time. The reader should not place undue importance on forward-looking information and should not rely upon this information as of any other date. All forward-looking information contained in this news release is expressly qualified in its entirety by this cautionary statement.

For further information: Laurie Tugman, President and CEO, Tel: [phone]; or William Martin, Chief Financial Officer, Tel: [phone]