Imperial Reports Results for the Third Quarter 2007: Financial News

Imperial Reports Results for the Third Quarter 2007
Wednesday November 14, 2007 8:45 am ET

VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Nov 14, 2007 -- Imperial Metals Corporation (Toronto:III.TO - News) reports net income of $7.6 million ($0.23 per share) for the 2007 third quarter compared to net income of $31.0 million ($1.03 per share) in the 2006 third quarter. Adjusted net income in the quarter was $12.2 million or $0.37 per share, versus $35.8 million or $1.19 per share in the September 2006 quarter. Adjusted net income is calculated by excluding the effect of certain items not settling in the current period.

Revenues were $84.8 million in the September 2007 quarter compared to $57.1 million in the 2006 quarter. At quarter end, concentrate inventory was at normal levels. Variations in quarterly revenue attributed to the timing of concentrate shipments can be expected in the normal course of business.

Operating income for the three months ended September 30, 2007 decreased to $24.6 million from $29.6 million in the September 2006 quarter. In the September 2006 quarter the Company recorded equity income from the Huckleberry mine of $12.0 million. Due to the consolidation of Huckleberry in 2007 there is no comparable item in 2007.

Cash flow decreased to $22.2 million in the September 2007 quarter compared to $36.3 million in 2006. The $14.1 million decrease is the result of lower cash flow from Mount Polley partially offset by the inclusion of the 50% of cash flow from Huckleberry.

Capital expenditures were $12.7 million, about double the $5.8 million spent in the comparative 2006 quarter as the Company continued with its significant exploration and capital programs.

Imperial's comparative financial results for the three and nine months ended September 30, 2007 and September 30, 2006 are summarized below and discussed in detail in the Management's Discussion and Analysis, which is contained within the Third Quarter Report, available on the Company's website www.imperialmetals.com and on SEDAR www.sedar.com.

 

                              Three Months Ended         Nine Months Ended
------------------------------------------------   -----------------------
(unaudited) in thousands
 except per share           Sept 30,     Sept 30,     Sept 30,     Sept 30,
 amounts                       2007         2006         2007         2006
------------------------------------------------   -----------------------
Revenues                 $   84,784   $   57,154   $  232,240   $  165,787
Operating Income         $   24,603   $   29,610   $   65,673   $   78,075
Net Income               $    7,576   $   30,955   $    8,878   $   58,180
Net Income Per Share     $     0.23   $     1.03   $     0.28   $     1.96
Adjusted Net Income(1)   $   12,184   $   35,777   $   42,373   $   58,561
Adjusted Net Income Per
 Share(1)                $     0.37   $     1.19   $     1.34   $     1.98
Cash Flow(1)             $   22,165   $   36,341   $   68,633   $   51,553
Cash Flow Per Share(1)   $     0.68   $     1.21   $     2.17   $     1.74
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(1) Adjusted Net Income, Adjusted Net Income Per Share, Cash flow and Cash
    Flow Per Share are measures used by the Company to evaluate its
    performance; however, they are not terms recognized under generally
    accepted accounting principles. Adjusted Net Income is defined as net
    income adjusted for certain items of a non-operational nature that
    pertain to future periods as described in further detail in the
    Management's Discussion and Analysis under the heading Adjusted Net
    Income. Cash Flow is defined as cash flow from operations before net
    change in working capital balances. Adjusted Net Income and Cash Flow
    Per Share are the same measures divided by the weighted average number
    of common shares outstanding during the period.

Imperial is a mine development and operating company based in Vancouver, British Columbia. The Company's key properties are the Mount Polley open pit copper/gold producing mine in central British Columbia, the Huckleberry open pit copper/molybdenum producing mine in northern British Columbia, the development stage Red Chris property in northwest British Columbia, and the Sterling gold mine in southwest Nevada.