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Certain statements in this call will be forward-looking statements, which reflect management's expectations regarding future growth, results of operations, performance and business prospects and opportunities. For detailed information about risks and uncertainties that could cause actual results to differ materially from those expressed or implied, please refer to the disclaimer for forward-looking information contained in today's press release and filed with the Canadian securities regulators and on Form 6-K with the SEC. The company will make a brief presentation on the results announced this morning and then open the call to questions.I would now like to turn the call over to Mr. Michael Smith, Chairman and CEO of MFC Industrial. Hi, Michael. Michael J. Smith Good morning, Michael. Thank you very much. First of all, I would like to just walk you through the half financial results, and then maybe make some comments in ref to some projects which we're involved with. So if I -- let me start with the balance sheet of the company. At June 30, we had cash and near cash equivalents of about $364 million. Major changes on the balance sheet is our inventories went up to $114 million from $81 million. Predominantly, the increase was because of additional products which we have taken on, predominantly steel coils, and also some iron ore left over from this season. Receivables are up to $33 million from $21 million but that's constant and there's nothing abnormal, it's just the timing issue. Deposits in prepays went from $9 million to $16 million and that was because of the refinery we acquired in the last quarter. If I take you down now to noncurrent assets, and if you look at plant, property and equipment, you'll see it went up from $3 million to $30 million, and that is strictly because of the acquisition of the refinery which we acquired in the last quarter.
If I could draw your attention now to the liabilities section, and if you look under long-term debt, you'll see our long-term debt went from $20 million to $45 million. What we did in this particular quarter, we borrowed $28 million long-term over 8 years at a pretty good rate, 3.9%. And we did that really -- it's our policy if we buy a long life asset, we have to finance it on a long period of time. And this is what we did to pay for the refinery and also to make sure our balance sheet is being properly looked after.Our working capital was $380 million. Our ratio's okay, 3.20, acid test 2.38. Long-term debt to equity did increase to 0.08, that's because of the debt that I mentioned. Equity is $561 and book value per share just under $9 a share. Revenues for the first 6 months was $253 million. Net profit was $0.41 a share. Some things that happened during these 6 months and especially the last 3 months, we had the euro drop by about 12%, over 12%, that affected our sales. We managed on the bottom line, though we did pick up a little bit more income and this is primarily net income from royalty and also from merchant banking operation. But I'll give an example of what has happened in the industry during this quarter, especially in the area of plastics. There's one very basic plastic called PET, which is something you all know about, which is used in bottling, and this really a summer type project, and you see a lot of orders come through in the summer for that particular order. But the price of that product this summer dropped, and it dropped in April to July by 17%. So suddenly, there was no orders for the basic plastic product PET. It's interesting to see why that occurred. We'll be -- we have seen that price, that product being picked up a little bit now. But we believe it's only being picked up because people have to reorder and it was we think predominantly by maintenance and production shutdowns. So all the products which you think are stable and should be available, or not, particularly the industries around the world are going through interesting times and we don't expect that not to change. And so we have to live with it and we ask you to prepare for it, so we are looking always to possibly drop a product, come back to it later or increase with other new products, which we managed to do to a degree in this quarter. Read the rest of this transcript for free on seekingalpha.com