Avcorp announces 2013 First Quarter Financial Results PR Newswire VANCOUVER, May 9, 2013 VANCOUVER, May 9, 2013 /PRNewswire/ - Avcorp Industries Inc. (TSX: AVP) (the "Company" or "Avcorp") today announced its financial results for the quarter ended March 31, 2013. During the quarter ended March 31, 2013, the Company recorded income from operations of $440,000 on $19,946,000 revenue, as compared to $860,000 operating income on $25,006,000 revenue for the same quarter in the preceding year; and net income for the current quarter of $108,000 as compared to net income of $151,000 for the quarter ended March 31, 2012. Current quarter revenues have decreased from the same quarter in the preceding year primarily as a result of the wind-down of Cessna Aircraft Company (Cessna) programs. Earnings before interest, taxes, depreciation and amortization (EBITDA) was positive $1,241,000 for the quarter ended March 31, 2013 compared to a positive EBITDA of $1,951,000 for the quarter ended March 31, 2012. The decline in EBITDA was primarily as a result of reduced revenues. Cash flows from operating activities during the quarter ended March 31, 2013 utilized $1,416,000 of cash as compared to utilizing $267,000 of cash during the quarter ended March 31, 2012. The Company has a working capital surplus of $30,902,000 as at March 31, 2013 which has decreased from the December 31, 2012 $34,819,000 surplus, as a result of an increase in bank indebtedness and accounts payable. The Company's accumulated deficit as at March 31, 2013 is $55,267,000 (December 31, 2012: $55,375,000). On May 9, 2013, the Company completed a private placement, which was approved by the Toronto Stock Exchange on April 18, 2013, of 25,489,807 common shares at $0.049 per share for gross proceeds of approximately $1,249,000. The subscriber in the private placement was Panta Canada B.V. ("Panta"), the principal of which is a director of the Company. Following completion of the private placement, Panta owns approximately 57.9% of the outstanding common shares of Avcorp. About Avcorp Avcorp designs and builds major airframe structures for some of the world's leading aircraft companies, including BAE Systems, Boeing, and Bombardier. With more than 50 years of experience, over 400 skilled employees and 354,000 square feet of facilities in Delta BC and Burlington ON, Avcorp offers integrated composite and metallic aircraft structures to aircraft manufacturers, a distinct advantage in the pursuit of contracts for new aircraft designs, which require lower‐cost, light weight, strong, reliable structures. Our Burlington location also offers composite repairs for commercial aircraft. Avcorp is a Canadian public company traded on the Toronto Stock Exchange (TSX:AVP). (signed) MARK VAN ROOIJ PRESIDENT and CHIEF EXECUTIVE OFFICER Forward-Looking Statements This release should be read in conjunction with the Company's unaudited financial statements contained in the Company's Annual Report and with the quarterly financial statements and accompanying notes filed with Sedar (www.sedar.com). Certain statements in this release and other oral and written statements made by the Company from time to time are forward-looking statements, including those that discuss strategies, goals, outlook or other non-historical matters; or projected revenues, income, returns or other financial measures. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those contained in the statements, including the following: (a) the extent to which the Company is able to achieve savings from its restructuring plans; (b) uncertainty in estimating the amount and timing of restructuring charges and related costs; (c) changes in worldwide economic and political conditions that impact interest and foreign exchange rates; (d) the occurrence of work stoppages and strikes at key facilities of the Company or the Company's customers or suppliers; (e) government funding and program approvals affecting products being developed or sold under government programs; (f) cost and delivery performance under various program and development contracts; (g) the adequacy of cost estimates for various customer care programs including servicing warranties; (h) the ability to control costs and successful implementation of various cost reduction programs; (i) the timing of certifications of new aircraft products; (j) the occurrence of further downturns in customer markets to which the Company products are sold or supplied or where the Company offers financing; (k) changes in aircraft delivery schedules or cancellation of orders; (l) the Company's ability to offset, through cost reductions, raw material price increases and pricing pressure brought by original equipment manufacturer customers; (m) the availability and cost of insurance; (n) the Company's ability to maintain portfolio credit quality; (o) the Company's access to debt financing at competitive rates; and (p) uncertainty in estimating contingent liabilities and establishing reserves tailored to address such contingencies. CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (unaudited, prepared in accordance with IFRS, expressed in thousands of Canadian dollars) March 31, 2013 December 31, 2012 ASSETS Current assets Cash $ 2,900 $ 2,597 Accounts receivable 7,525 7,944 Inventories 16,641 16,572 Prepayments and other assets 1,283 1,634 Other receivable 27,391 27,391 55,740 56,138 Non-current assets Prepaid rent 146 146 Development costs 2,496 2,718 Property, plant and equipment, net 9,338 9,633 Total assets 67,720 68,635 LIABILITIES AND EQUITY Current liabilities Bank indebtedness 4,289 2,122 Accounts payable and accrued liabilities 8,877 7,859 Current portion of long-term debt 837 692 Preferred shares 10,835 10,646 24,838 21,319 Non-current liabilities Deferred gain 251 263 Lease inducement 543 567 Deferred program revenues 13,148 17,514 Long-term debt 4,138 4,300 Warranty provisions 85 85 43,003 44,048 Equity Capital stock 76,423 76,423 Contributed surplus 3,561 3,539 Deficit (55,267) (55,375) 24,717 24,587 Total liabilities and equity 67,720 68,635 CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (unaudited, prepared in accordance with IFRS, expressed in thousands of Canadian dollars, except number of shares and per share amounts) FOR THE QUARTER ENDED MARCH 31 2013 2012 Revenues $ 19,946 $ 25,006 Cost of sales 16,869 20,725 Gross profit 3,077 4,281 Administrative and general expenses 2,502 3,309 Office equipment depreciation 136 114 Other (gains) and losses - net (1) (2) Operating Income 440 860 Foreign exchange loss 67 112 Finance costs 265 597 Income before income tax 108 151 Income tax expense - - Income and total comprehensive income for the period 108 151 Earnings per share: Basic earnings per common share 0.00 0.00 Diluted earnings per common share 0.00 0.00 Basic weighted average number of shares outstanding (000's) 254,898 203,862 Diluted weighted average number of shares outstanding 255,898 204,890 (000's) CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited, prepared in accordance with IFRS, expressed in thousands of Canadian dollars) FOR THE QUARTER ENDED MARCH 31 2013 2012 Cash flows from operating activities Income before tax $ 108 $ 151 Adjustment for items not affecting cash: Accrued interest and government royalties 79 342 Depreciation 532 767 Deferred tooling revenue amortization and (4,463) (3,256) reclassification to revenue Development cost amortization and write-off 336 436 Preferred share dividends accrued 189 189 Provision for obsolete inventory (103) (13) Other items (7) 97 (3,329) (1,287) Changes in non-cash working capital Accounts receivable 515 1,704 Inventories 34 (174) Prepayments and other assets 350 (74) Accounts payable and accrued liabilities 1,014 (436) Net cash from operating activities (1,416) (267) Cash flows from investing activities Purchase of equipment (237) (167) Payments relating to development costs and tooling (114) (336) Net cash from investing activities (351) (503) Cash flows from financing activities Increase in bank indebtedness 2,167 - Payment of interest (80) (253) Proceeds from customer funding of program introduction - 3,476 Repayment of current and long-term debt (17) (217) Net cash from financing activities 2,070 3,006 Net increase in cash 303 2,236 Cash - Beginning of period 2,597 3,778 Cash - End of period 2,900 6,014 CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (unaudited, prepared in accordance with IFRS, expressed in thousands of Canadian dollars, except number of shares) Equity Share capital component convertible Contributed Total Shares Amount loan surplus Deficit equity Balance 201,994,113 $ 73,251 $ 453 $ 3,424 $ $ December 31, (76,016) 1,112 2011 Issue of common 2,323,521 109 - - - 109 shares Stock based - - - 20 - 20 compensation expense Income for the - - - - 151 151 quarter Balance March 204,317,634 73,360 453 3,444 (75,865) 1,392 31, 2012 Balance 254,898,072 76,423 - 3,539 (55,375) 24,587 December 31, 2012 Stock-based - - - 22 - 22 compensation expense Income for the - - - - 108 108 quarter Balance March 254,898,072 76,423 - 3,561 (55,267) 24,717 31, 2013 SOURCE Avcorp Industries Inc. Contact: Contact:Sandi DiPrimo, Investor Relations Contact 604-587-4938
OPEC Decides to Keep Oil Production Unchanged: Delegate
Avcorp announces 2013 First Quarter Financial Results
Press spacebar to pause and continue. Press esc to stop.