Chronicle Journal: Finance

Avcorp announces 2013 Second Quarter Financial Results

VANCOUVER, Aug. 6, 2013 /PRNewswire/ - Avcorp Industries Inc. (TSX: AVP) (the "Company" or "Avcorp") today announced its financial results for the quarter ended June 30, 2013.

During the quarter ended June 30, 2013, the Company recorded income from operations of $393,000 on $20,492,000 revenue, as compared to $411,000 operating income on $25,192,000 revenue for the same quarter in the preceding year; and net income for the current quarter of $1,596,000 as compared to net income of $13,000 for the quarter ended June 30, 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 programs.

Earnings before interest, taxes, depreciation and amortization (EBITDA) was positive $3,066,000 for the quarter ended June 30, 2013 compared to a positive EBITDA of $1,656,000 for the quarter ended June 30, 2012.  The increase in EBITDA was primarily as a result of current quarter court-awarded interest and foreign exchange gain.

Cash flows from operating activities during the quarter ended June 30, 2013 utilized $4,347,000 of cash as compared to utilizing $1,469,000 of cash during the quarter ended June 30, 2012.  The increase in operating cash utilization over the same quarter in the prior year is primarily attributable to recognition of revenues which were funded in a previous period and increase in other receivables, offset by collection of trade accounts receivable and a number of non-cash expenses.  The Company has a working capital surplus of $31,492,000 as at June 30, 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 June 30, 2013 is $53,671,000 (December 31, 2012: $55,375,000).

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).

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)

 June 30, 2013  December 31, 2012
ASSETS  
Current assets  
Cash  $    2,812  $    2,597
Accounts receivable  7,977  7,944
Inventories  16,564  16,572
Prepayments and other assets  1,139  1,634
Other receivable  29,939  27,391
 58,431  56,138
Non-current assets  
Prepaid rent  146  146
Development costs  2,048  2,718
Property, plant and equipment, net  8,994  9,633
     
Total assets 69,619  68,635
  
LIABILITIES AND EQUITY  
Current liabilities  
Bank indebtedness  6,496  2,122
Accounts payable and accrued liabilities  8,558  7,859
Current portion of long-term debt  862  692
Preferred shares  11,023  10,646
 26,939  21,319
Non-current liabilities  
Deferred gain  239  263
Lease inducement  518  567
Deferred program revenues  10,424  17,514
Long-term debt  3,835  4,300
Warranty provisions  85  85
 42,040  44,048
Equity  
Capital stock  77,672  76,423
Contributed surplus  3,578  3,539
Deficit  (53,671)  (55,375)
 27,579  24,587
     
Total liabilities and equity 69,619  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)

  Three months ended   Six months ended
FOR THE PERIOD ENDED JUNE 30 2013  2012  2013  2012
         
Revenues $  20,492  $  25,192  $  40,438  $  50,198
         
Cost of sales 18,101  20,490  34,970  41,215
         
Gross profit 2,391  4,702  5,468  8,983
         
Administrative and general expenses  2,975  4,164  5,476  7,475
Office equipment depreciation  152  127  288  241
Other operating income  (1,129)  -  (1,129)  (4)
         
Operating Income 393  411  833  1,271
         
Foreign exchange gain  (1,494)  (191)  (1,427)  (79)
Finance costs  291  589  556  1,186
         
Income before income tax 1,596  13  1,704  164
         
Income tax expense  -  -  -  -
         
Income and total comprehensive income for the period 1,596  13  1,704  164
         
Earnings per share:    
Basic earnings per common share  0.01  0.00  0.01  0.00
Diluted earnings per common share  0.01  0.00  0.01  0.00
         
Basic weighted average number of shares outstanding (000's)  269,464  204,420  262,221  204,123
         
Diluted weighted average number of shares outstanding (000's)  271,070  204,420  263,520  204,579


CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, prepared in accordance with IFRS, expressed in thousands of Canadian dollars)

  Three months ended   Six months ended
FOR THE PERIOD ENDED JUNE 30 2013  2012  2013  2012
Cash flows from (used in) operating activities    
Income before tax  $   1,596  $      13  $   1,704  $      164
  Adjustment for items not affecting cash:     
   Accrued interest and government royalties  102  335  181  677
   Depreciation  535  789  1,067  1,556
   Deferred tooling revenue amortization and reclassification to revenue  (5,080)  (3,162)  (9,543)  (6,418)
   Development cost amortization and write-off  644  445  980  1,036
   Preferred share dividends accrued  188  188  377  377
   Provision for obsolete inventory  -  30  (103)  17
   Other items  (15)  (59)  (22)  38
  (2,030)  (1,421)  (5,359)  (2,553)
Changes in non-cash working capital     
  Accounts receivable  333  600  848  2,304
  Inventories  77  1,381  111  1,207
  Prepayments and other assets  145  (1)  495  (75)
  Other receivable  (2,548)  -  (2,548)  -
  Accounts payable and accrued liabilities  (324)  (2,028)  690  (2,464)
           
Net cash from (used in) operating activities (4,347)  (1,469)  (5,763)  (1,581)
    
Cash flows from (used in) investing activities    
Purchase of equipment  (191)  (134)  (428)  (301)
Payments relating to development costs and tooling  (196)  (123)  (310)  (614)
         
Net cash from (used in) investing activities (387)  (257)  (738)  (915)
    
Cash flows from (used in) financing activities    
Increase in bank indebtedness  2,207  -  4,374  -
Payment of interest  (102)  (243)  (182)  (496)
Repayment of current and long-term debt  (279)  (276)  (296)  (493)
Proceeds from customer funding of program introduction  1,571  2,613  1,571  6,089
Proceeds from issuance of common shares  1,249  -  1,249  -
         
Net cash from financing activities 4,646  2,094  6,716  5,100
         
Net increase (decrease) in cash (88)  368  215  2,604
         
Cash - Beginning of period  2,900  6,014  2,597  3,778
         
Cash - End of period  2,812  6,382  2,812  6,382
            

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(unaudited, prepared in accordance with IFRS, expressed in thousands of Canadian dollars, except number of shares)

Share capital Equity
component
convertible
loan
 Contributed
surplus
 Deficit Total
equity
 Shares Amount
             
Balance December 31, 2011   201,994,113   $ 73,251   $   453   $  3,424   $ (76,016)   $  1,112
             
Issue of common shares   3,439,238   168   -   -   -   168
             
Stock based compensation expense   -   -   -   44   -   44
             
Income for the period   -   -   -   -   164   164
             
Balance June 30, 2012   205,433,351   73,419   453   3,468   (75,852)   1,488
             
Balance December 31, 2012   254,898,072   76,423   -   3,539   (55,375)   24,587
            
Issue of common shares   25,489,807   1,249   -   -   -   1,249
             
Stock-based compensation expense   -   -   -   39   -   39
             
Income for the period   -   -   -   -   1,704   1,704
             
Balance June 30, 2013 280,387,879 77,672 - 3,578 (53,671) 27,579
             
             

SOURCE Avcorp Industries Inc.

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.