VANCOUVER,
May 13 /PRNewswire-FirstCall/ - Avcorp Industries Inc. (AVP on
the Toronto Stock Exchange) today announces results for the quarter ended
March 31, 2008.
Revenue increased 14% to $31,151,000 for the quarter ending March 31,
2008, and cash flow from operations increased to $1,529,000 compared to
$1,101,000 for the same quarter last year.
EBITDA of $1,375,000 was a significant improvement over the negative
EBITDA of $1,282,000 incurred in the previous quarter. The Company had a loss
of $423,000 for the quarter or $0.01 per share and expects this loss to be
eliminated and to return to profitability for the remainder of the year.
During the quarter the Company continued to invest in new equipment and
has leased and set up a separate 24,000 sqft. stand alone facility to house
work on new programs. Considerable time and effort has been invested in
streamlining operations and in the bidding process to take advantage of new
business which will be available to the Company over the coming years.
At the end of the quarter, the Company's operating line of $17 million
stood at $12 million utilization and long term debt and capital leases of $8.7
million were being repaid in accordance with their terms.
About Avcorp
Avcorp designs and builds major airframe structures for some of the
world's leading aircraft companies, including Boeing, Bombardier, and Cessna.
With 50 years of experience, more than 750 skilled employees and 385,000
square feet of facilities 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. Avcorp is a Canadian public company
traded on the Toronto Stock Exchange (TSX."AVP"). More information is
available at www.avcorp.com.
"signed" "signed"
MARK VAN ROOIJ PAUL KALIL
CHIEF EXECUTIVE OFFICER PRESIDENT
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 Balance Sheets
as at March 31, 2008 and December 31, 2007
(unaudited, in thousands of Canadian dollars)
March 31, December 31,
2008 2007
Assets $ $
Current assets
Accounts receivable 14,183 12,224
Inventories 15,999 17,801
Prepayments 3,963 2,401
Other assets - 138
--------------------------
34,145 32,564
Prepaid rent - 481
Development costs 1,973 1,545
Property, plant and equipment 20,181 20,310
Investment 759 759
Warranty claim receivable 1,454 1,454
Intangible assets 2,503 2,620
Goodwill 571 571
--------------------------
61,586 60,304
--------------------------
--------------------------
Liabilities
Current liabilities
Bank indebtedness 11,904 11,279
Accounts payable and accrued liabilities 15,545 14,812
Current portion of long-term debt 2,435 2,056
Other liabilities 52 -
--------------------------
29,936 28,147
Deferred gain 489 501
Lease inducement 1,036 1,060
Deferred tooling revenues 2,645 2,676
Long-term debt 6,306 6,761
Warranty provision 1,454 1,454
Future income tax liability 1,186 1,186
--------------------------
43,052 41,785
--------------------------
Shareholders' Equity
Capital stock 61,981 61,194
Preferred shares 7,672 7,672
Contributed surplus 2,697 2,857
Deficit (53,816) (53,204)
--------------------------
18,534 18,519
--------------------------
61,586 60,304
--------------------------
--------------------------
Consolidated Statements of Operations and Comprehensive Income (Loss)
For the quarter ended March 31, 2008 and 2007
(unaudited, in thousands of Canadian dollars, except number of shares and
per share amounts)
2008 2007
$ $
------------ ------------
Revenues 31,151 27,357
------------ ------------
Cost of sales and expenses
Cost of sales 27,389 23,995
Administrative and general expenses 2,956 1,928
Depreciation 1,087 762
Foreign exchange (gain) loss (464) 97
------------ ------------
30,968 26,782
------------ ------------
Income from operations 183 575
Interest expense and financing charges (589) (367)
Unrealized derivative gain (loss) (17) 167
------------ ------------
------------ ------------
Income (loss) before income taxes (423) 375
Income taxes - -
------------ ------------
Income (loss) and comprehensive income
(loss) for the period (423) 375
------------ ------------
------------ ------------
Basic earnings (loss) per common share (0.01) 0.01
------------ ------------
------------ ------------
Basic weighted average number of shares
outstanding (000's) 31,808 27,984
------------ ------------
------------ ------------
Diluted earnings (loss) per common share (0.01) 0.01
------------ ------------
------------ ------------
Diluted weighted average number of
shares outstanding (000's) 31,808 34,654
------------ ------------
------------ ------------
Consolidated Statements of Deficit
For the quarter ended March 31, 2008 and 2007
(unaudited, in thousands of Canadian dollars)
2008 2007
$ $
------------ ------------
Deficit - Beginning of period (53,204) (50,565)
Income (loss) for the period (423) 375
Preferred share dividends (189) (274)
------------ ------------
Deficit - End of period (53,816) (50,464)
------------ ------------
------------ ------------
Consolidated Statements of Cash Flows
For the quarter ended March 31, 2008 and 2007
(unaudited, in thousands of Canadian dollars)
2008 2007
$ $
Cash flows from operating activities
Income (loss) for the period (423) 375
Items not affecting cash 1,952 726
--------------------------
1,529 1,101
Change in non-cash items related
to operating activities (576) (1,730)
--------------------------
953 (629)
--------------------------
Cash flows from investing activities
Purchase of property, plant and equipment (933) (2,030)
Payments relating to development costs and tooling (550) (305)
Proceeds from sale of property, plant and equipment - 5
--------------------------
(1,483) (2,330)
Cash flows from financing activities
Net proceeds from bank indebtedness 625 3,386
Proceeds from current and long-term debt 131 58
Proceeds from sale of tooling 372 -
Repayment of current and long-term debt (630) (429)
Issue of common shares 221 226
Preferred share dividends (189) (274)
Share issue expense - (8)
--------------------------
530 2,959
--------------------------
Net change in cash and cash equivalents - -
Cash and cash equivalents - Beginning of period - -
--------------------------
Cash and cash equivalents - End of period - -
--------------------------
--------------------------
Interest paid 379 289
--------------------------
--------------------------
CONTACT: Sandi DiPrimo, Investor Relations Contact, (604) 587-4938
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