Harry Winston Diamond Corporation reports fiscal 2012 first quarter results

Canadian News Wire | June 9, 2011 | 11:07 am Canada Diamond 

Harry Winston Diamond Corporation (TSX: HW) (NYSE:HWD) (the “Company”) today announced its first quarter Fiscal 2012 results for the quarter ending April 30, 2011.

Robert Gannicott, Chairman and Chief Executive Officer stated, “This quarter’s results reflect improving rough diamond prices combined with increasing sales and profit for the luxury brand segment. Both sides of our diamond business are performing well as we continue to achieve premium rough diamond prices and execute our luxury brand strategy. Our recently announced relationship with Diamond Asset Advisors in the creation of a polished diamond acquisition fund represents an innovative way for the Company to support its luxury brand growth objectives.”

First Quarter Highlights:

  • Consolidated sales were $143.9 million, an increase of 26% versus the prior year (22% at constant exchange rates). Mining sales were $62.0 million, an increase of 27% versus last year primarily due to higher rough diamond pricing versus the comparable prior year period. Luxury brand sales were $81.9 million, an increase of 26% versus the prior year (20% at constant exchange rates), primarily driven by stronger high jewelry sales in the United States and higher timepiece sales.
  • Rough diamond production for the calendar quarter ended March 31, 2011 was 0.5 million carats compared to 0.6 million carats in the calendar quarter of the prior year.
  • Consolidated EBITDA (earnings before interest taxes depreciation and amortization) in the first quarter of Fiscal 2012 increased 51% versus a year ago to $25.0 million showing strength in both segments of the business. In the same period, Mining segment EBITDA increased 48.5% to $17.6 million and Luxury Brand segment EBITDA increased 57.3% to $7.3 million.
  • Consolidated operating profit was $4.7 million or double the operating profit of $2.3 million from a year ago, with mining operating profits down $0.3 million and luxury brand profits up $2.7 million versus the prior year. Operating profit benefited from higher rough diamond prices and higher high-end jewelry and timepiece sales.
  • Consolidated net profit attributable to shareholders for the first quarter was $3.6 million or $0.04 per share compared to net profit attributable to shareholders of $2.1 million or $0.03 per share in the comparable quarter of the prior year.

Read the full news release here.

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