Welcome!

News Feed Item

Firan Technology Group (FTG) Announces First Quarter 2014 Financial Results

TORONTO, ONTARIO -- (Marketwired) -- 04/08/14 -- Firan Technology Group Corporation (TSX: FTG) today announced financial results for the first quarter 2014.

--  Booked over $15M in new orders in the quarter
--  Grew Q1 2014 sales by 7% over Q1 2013
--  Grew Q1 activity at FTG Aerospace Tianjin by 245% over Q1 2013
--  Grew Q1 activity at FTG Aerospace Chatsworth by 185% over Q1 2013
--  Improved net income after tax by $0.8M in Q1 2014 compared to the same
    period in 2013
--  Generated $1.3M positive cashflow from operations in Q1 2014 compared to
    $0.2M last year
--  Achieved strong operating performance at both established Circuits
    facilities
--  R&D spending remained above 5% of sales

"The momentum from the end of 2013 has continued into the start of 2014 with strong results across the company, particularly at our two new Aerospace facilities in Tianjin and Chatsworth," stated Brad Bourne, President and Chief Executive Officer. He added, "Our established Circuits facilities both performed well in the quarter and we are working hard to get our Circuits Joint Venture through its start-up and customer qualification phase so it too can contribute to our success in the future."

First Quarter Results: (three months ended February 28, 2014 compared with three months ended March 1, 2013)

----------------------------------------------------------------------------
                                                     Q1 2014        Q1 2013

Sales                                          $  13,989,000  $  13,015,000
Gross Margin                                       3,124,000      2,082,000
Gross Margin (%)                                        22.3%          16.0%

Operating Earnings/Loss: (1)                       1,020,000        (72,000)

  - Net R&D Investment                               777,000        597,000
                                              ------------------------------
Net Earnings before tax                              227,000       (669,000)
                                              ------------------------------
  - Income Tax                                        98,000         22,000
  - Non-controlling Interests                        (16,000)             -

                                              ------------------------------
Net Earnings after tax                         $     145,000  $    (691,000)
                                              ------------------------------
Earnings per share
  - basic and diluted                          $        0.01  $       (0.04)
----------------------------------------------------------------------------

(1) Operating Earnings is not a measure recognized under International Financial Reporting Standards ("IFRS"). Management believes that this measure is important to many of the Corporation's shareholders, creditors and other stakeholders. The Corporation's method of calculating Operating Earnings may differ from other corporations and accordingly may not be comparable to measures used by other corporations.

Business Highlights

FTG accomplished many goals in the first quarter of 2014 that continue to improve the Corporation and position it for the future, including:

--  Signed Letter of Intent for cockpit control assemblies for C919 Heads Up
    Display system in China
--  Grew Aerospace activity at the two new facilities to almost $1M in Q1
    2014
--  Achieved sales outside of North America of 16% of total sales
--  Reached full and final settlement of environmental lawsuit with Emmanuel
    Tannenbaum and June Realty Ltd with no material impact on the company

For FTG, overall sales increased by $1.0M or 7.5% from $13.0M in Q1 2013 to $14.0M in Q1 2014. FTG Circuits and the new Aerospace facilities drove the growth.

The Circuits Segment sales were up $1.6M or 18% in Q1 2014 versus Q1 2013. Both established facilities had strong growth in the quarter.

For the Aerospace segment, sales in Q1 2014 were $3.5M compared to $4.1M in the same quarter last year. Strong increases at the two new facilities in Tianjin China and Chatsworth California were offset by a drop in activity in Toronto. The drop was due to the end of a large military simulator program at that facility.

Gross margins were up in Q1 2014 by $1.0M compared to Q1 2013 due to lower start-up costs at the new facilities and higher sales in the Circuits business. Gross margins in Q1 2014 were 22% compared to 16% in Q1 2013.

Net profit at FTG in Q1 2014 was $0.15M compared to a net loss of $0.7M in Q1 2013. This improvement is the result of higher gross margins and stable SG&A costs. Taxes are higher in Q1 2014 due to recording taxes on Canadian profit, offset by a reduction in deferred income taxes. This is a non-cash item.

The Circuits segment net earnings before corporate and interest and other costs increased to $0.9M in Q1 2014 compared to $0.1M in Q1 2013, on $1.6M higher sales. The improved results were at both established facilities. The Circuits joint venture in China did not have a material impact on profitability.

The Aerospace net earnings before corporate and interest and other costs increased slightly as start-up losses at the two new facilities decreased, offset by lower profitability in the Toronto facility due to lower activity. Costs related to the development of the C919 cockpit assemblies of $0.6M in Q1 2014 were treated as deferred development and not expensed.

As at February 28, 2014, the Corporation's primary source of liquidity included accounts receivable of $12.2M and inventory of $8.6M. Net working capital at February 28, 2014 was $11.4M.

The Corporation will host a live conference call on Wednesday, April 9, 2014 at 11:30am (EDT) to discuss the results of Q1 2014.

Anyone wishing to participate in the call should dial 647-788-4922 or 1-877-223-4471 and identify that you are calling to participate in the FTG conference call. The Chairperson is Mr. Brad Bourne. A replay of the call will be available until April 23, 2014 and will be available on the FTG website at www.ftgcorp.com. The number to call for a rebroadcast is 416-621-4642 or 1-800-585-8367, pass code 25504567.

ABOUT FIRAN TECHNOLOGY GROUP CORPORATION

FTG is an aerospace and defense electronics product and subsystem supplier to customers around the globe. FTG has two operating units:

FTG Circuits is a manufacturer of high technology, high reliability printed circuit boards. Our customers are leaders in the aviation, defense, and high technology industries. FTG Circuits has operations in Toronto, Ontario, Chatsworth, California and a joint venture in Tianjin, China.

FTG Aerospace manufactures illuminated cockpit panels, keyboards and sub-assemblies for original equipment manufacturers of aerospace and defense equipment. FTG Aerospace has operations in Toronto, Ontario, Chatsworth, California and Tianjin, China.

The Corporation's shares are traded on the Toronto Stock Exchange under the symbol FTG.

FORWARD-LOOKING STATEMENTS

This news release contains certain forward-looking statements. These forward-looking statements are related to, but not limited to, FTG's operations, anticipated financial performance, business prospects and strategies. Forward-looking information typically contains words such as "anticipate", "believe", "expect", "plan" or similar words suggesting future outcomes. Such statements are based on the current expectations of management of the Corporation and inherently involve numerous risks and uncertainties, known and unknown, including economic factors and the Corporation's industry, generally. The preceding list is not exhaustive of all possible factors. Such forward-looking statements are not guarantees of future performance and actual events and results could differ materially from those expressed or implied by forward-looking statements made by the Corporation. The reader is cautioned to consider these and other factors carefully when making decisions with respect to the Corporation and not place undue reliance on forward-looking statements. Other than as may be required by law, FTG disclaims any intention or obligation to update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise.

Additional information can be found at the Corporation's website www.ftgcorp.com.

FIRAN TECHNOLOGY GROUP CORPORATION
Interim Condensed Consolidated Balance Sheets

----------------------------------------------------------------------------
----------------------------------------------------------------------------
(Unaudited)                                  February 28,      November 30,
(in thousands of Canadian dollars)                   2014              2013
----------------------------------------------------------------------------
----------------------------------------------------------------------------
ASSETS
Current assets
Cash                                     $          1,744  $            996
Accounts receivable                                12,173            12,275
Taxes receivable                                      334               264
Inventories                                         8,606             8,074
Prepaid expenses                                      611               549
----------------------------------------------------------------------------
                                                   23,468            22,158
Non-current assets
Plant and equipment, net                            5,419             5,587
Deferred income taxes                               2,307             2,385
Intangible assets                                     184               196
----------------------------------------------------------------------------
Total assets                             $         31,378  $         30,326
----------------------------------------------------------------------------
----------------------------------------------------------------------------
LIABILITIES AND EQUITY
Current liabilities
Bank indebtedness                        $          1,107  $          1,062
Accounts payable and accrued liabilities            8,698             8,027
Provisions                                            479               612
Customer deposits, net of deferred
 development                                        1,502               930
Current portion of long-term bank debt                321               307
Current portion of subordinated loan                    -               510
----------------------------------------------------------------------------
                                                   12,107            11,448
Non-current liabilities
Long-term bank debt                                 1,749             1,753
Subordinated loan                                   3,984             3,396
Government assistance                                 674               786
----------------------------------------------------------------------------
Total liabilities                                  18,514            17,383
----------------------------------------------------------------------------
Equity
Deficit                                  $         (9,957) $        (10,102)
Accumulated other comprehensive loss                 (469)             (249)
----------------------------------------------------------------------------
                                                  (10,426)          (10,351)
Share capital
  Common shares                                    12,681            12,681
  Preferred shares                                  2,218             2,218
Contributed surplus                                 8,356             8,347
----------------------------------------------------------------------------
Total equity attributable to FTG's
 shareholders                                      12,829            12,895
Non-controlling interests                              35                48
----------------------------------------------------------------------------
Total equity                                       12,864            12,943
----------------------------------------------------------------------------
Total liabilities and equity             $         31,378  $         30,326
----------------------------------------------------------------------------
----------------------------------------------------------------------------

FIRAN TECHNOLOGY GROUP CORPORATION
Interim Condensed Consolidated Statements of Earnings (Loss)

----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                    Three months ended
----------------------------------------------------------------------------
(unaudited)                                     February 28,       March 1,
(in thousands of Canadian dollars, except per
 share amounts)                                         2014           2013
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Sales                                          $      13,989  $      13,015
----------------------------------------------------------------------------

Cost of sales
  Cost of sales                                       10,448         10,523
  Depreciation of plant and equipment                    417            410
----------------------------------------------------------------------------
Total cost of sales                                   10,865         10,933
----------------------------------------------------------------------------
Gross margin                                           3,124          2,082
----------------------------------------------------------------------------

Expenses
  Selling, general and administrative                  2,092          2,074
  Research and development costs                         847            667
  Recovery of research and development costs             (70)           (70)
  Depreciation/amortization of plant and
   equipment and intangible assets                        45             38
  Interest expense on short-term debt                     14             14
  Interest expense on long-term debt                      86             78
  Foreign exchange gain                                 (117)           (50)
----------------------------------------------------------------------------
Total expenses                                         2,897          2,751
----------------------------------------------------------------------------

Earnings (loss) before income taxes                      227           (669)

Income tax expense                                        98             22
----------------------------------------------------------------------------

Net earnings (loss)                            $         129  $        (691)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Attributable to:
Non-controlling interests                                (16)             -
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Equity holders of FTG                                    145           (691)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Earnings (loss) per share, attributable to the
 equity holders of FTG
  Basic                                        $        0.01  $       (0.04)
  Diluted                                      $        0.01  $       (0.04)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

FIRAN TECHNOLOGY GROUP CORPORATION
Interim Condensed Consolidated Statements of Comprehensive loss

----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                       Three months ended
----------------------------------------------------------------------------
                                                       February
(unaudited)                                                 28,    March 1,
(in thousands of Canadian dollars)                         2014        2013
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Net earnings (loss)                                  $      129  $     (691)
----------------------------------------------------------------------------

Other comprehensive income (loss) to be reclassified
 to net earnings (loss) in subsequent periods:

  Foreign currency translation adjustments                  528         142
  Net unrealized loss on derivative financial
   instruments designated as cash flow hedges              (748)       (237)
----------------------------------------------------------------------------
                                                           (220)        (95)
----------------------------------------------------------------------------

Total comprehensive loss                             $      (91) $     (786)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Attributable to:
Equity holders of FTG                                $      (75) $     (786)
Non-controlling interests                            $      (16) $        -
----------------------------------------------------------------------------
----------------------------------------------------------------------------

FIRAN TECHNOLOGY GROUP CORPORATION
Interim Condensed Consolidated Statements of Changes in Equity


----------------------------------------------------------------------
----------------------------------------------------------------------
Three months ended
 February 28, 2014          Attributed to the equity holders of FTG
                        ----------------------------------------------
                        ----------------------------------------------

(unaudited)
(in thousands of           Common   Preferred              Contributed
 Canadian dollars)         Shares      Shares   Deficit        Surplus
----------------------------------------------------------------------
----------------------------------------------------------------------

Balance, November 30,
 2013                    $ 12,681 $     2,218 $ (10,102) $       8,347
Net earnings (loss)             -           -       145              -
Stock-based compensation        -           -         -              9
Foreign currency
 translation adjustments        -           -         -              -
Net unrealized loss on
 derivative financial
 instruments designated
 as cash flow hedges            -           -         -              -
----------------------------------------------------------------------
Balance, February 28,
 2014                    $ 12,681 $     2,218 $  (9,957) $       8,356
----------------------------------------------------------------------
----------------------------------------------------------------------

----------------------------------------------------------------------
Three months ended March
 1, 2013                     Attributed to the equity holders of FTG
                        ----------------------------------------------
(unaudited)
(in thousands of
 Canadian dollars)         Common   Preferred              Contributed
                           Shares      Shares   Deficit        Surplus
----------------------------------------------------------------------
----------------------------------------------------------------------

Balance, November 30,
 2012                    $ 12,681 $     2,218 $  (9,104) $       8,305
Net loss                        -           -      (691)             -
Stock-based compensation        -           -         -              9
Foreign currency
 translation adjustments        -           -         -              -
Net unrealized loss on
 derivative financial
 instruments designated
 as cash flow hedges            -           -         -              -
----------------------------------------------------------------------
Balance, March 1, 2013   $ 12,681 $     2,218 $  (9,795) $       8,314
----------------------------------------------------------------------


FIRAN TECHNOLOGY GROUP CORPORATION
Interim Condensed Consolidated Statements of Changes in Equity


----------------------------------------------------------------------------
----------------------------------------------------------------------------
Three months ended       Attributed to the equity
 February 28, 2014            holders of FTG
                        ---------------------------
                        ---------------------------
                             Accumulated
(unaudited)                        Other                     Non-
(in thousands of           Comprehensive              controlling     Total
 Canadian dollars)                (Loss)     Total      interests    equity
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Balance, November 30,
 2013                    $          (249) $ 12,895  $          48  $ 12,943
Net earnings (loss)                    -       145            (13)      132
Stock-based compensation               -         9              -         9
Foreign currency
 translation adjustments             528       528              -       528
Net unrealized loss on
 derivative financial
 instruments designated
 as cash flow hedges                (748)     (748)             -      (748)
----------------------------------------------------------------------------
Balance, February 28,
 2014                    $          (469) $ 12,829  $          35  $ 12,864
----------------------------------------------------------------------------
----------------------------------------------------------------------------

----------------------------------------------------------------------------
Three months ended March Attributed to the equity
 1, 2013                      holders of FTG
                        ---------------------------
(unaudited)                  Accumulated
(in thousands of                   Other                     Non-
 Canadian dollars)         Comprehensive              controlling     Total
                                   (Loss)    Total      interests    equity
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Balance, November 30,
 2012                    $           (85) $ 14,015  $           -  $ 14,015
Net loss                               -      (691)             -      (691)
Stock-based compensation               -         9              -         9
Foreign currency
 translation adjustments             142       142              -       142
Net unrealized loss on
 derivative financial
 instruments designated
 as cash flow hedges                (237)     (237)             -      (237)
----------------------------------------------------------------------------
Balance, March 1, 2013   $          (180) $ 13,238  $           -  $ 13,238
----------------------------------------------------------------------------

FIRAN TECHNOLOGY GROUP CORPORATION
Interim Condensed Consolidated Statements of Cash Flows
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                      Three months ended
----------------------------------------------------------------------------
(unaudited)                                       February 28,     March 1,
(in thousands of Canadian dollars)                        2014         2013
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net inflow (outflow) of cash related to the
 following:
Operating activities
Net earnings (loss)                                $       129  $      (691)
Items not affecting cash:
  Non-controlling interest share of loss                    16            -
  Stock-based compensation                                   9            9
  Gain on disposal of plant and equipment                    -          (25)
  Effect of exchange rates on US dollar debt                89           50
  Depreciation of plant and equipment                      450          436
  Amortization of intangible assets                         12           12
  Amortization of deferred financing costs                   7            7
  Income tax expense                                        78            -
  AMIS interest accretion                                   78           73
  Amortization of government assistance                   (112)        (112)
Changes in non-cash operating working capital              524          466
----------------------------------------------------------------------------
                                                         1,280          225
----------------------------------------------------------------------------
Investing activities
  Additions to plant and equipment                        (197)        (717)
  Proceeds from disposal of plant and equipment              -           25
----------------------------------------------------------------------------
                                                          (197)        (692)
----------------------------------------------------------------------------
Net cash flow from (used in) operating and
 investing activities                                    1,083         (467)
----------------------------------------------------------------------------
Financing activities
  Decrease in bank indebtedness                              -         (823)
  Proceeds from long-term bank debt                          -          717
  Repayments of long-term bank debt                        (85)         (18)
----------------------------------------------------------------------------
                                                           (85)        (124)
----------------------------------------------------------------------------
Effects of foreign exchange rate changes on cash
 flow                                                     (250)        (155)
----------------------------------------------------------------------------
Net increase (decrease) in cash flow                       748         (746)
Cash, beginning of year                                    996        1,446
----------------------------------------------------------------------------
Cash, end of period                                $     1,744  $       700
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Disclosure of cash payments
  Payment for interest                             $        29  $        19
  Payments for income taxes                        $        25  $        17
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Contacts:
Firan Technology Group Corporation
Bradley C. Bourne
President and CEO
(416) 299-4000 x314
[email protected]

Firan Technology Group Corporation
Joseph R. Ricci
Vice President and CFO
(416) 299-4000 x309
[email protected]
www.ftgcorp.com

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Digital transformation is about embracing digital technologies into a company's culture to better connect with its customers, automate processes, create better tools, enter new markets, etc. Such a transformation requires continuous orchestration across teams and an environment based on open collaboration and daily experiments. In his session at 21st Cloud Expo, Alex Casalboni, Technical (Cloud) Evangelist at Cloud Academy, explored and discussed the most urgent unsolved challenges to achieve f...
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
There is a huge demand for responsive, real-time mobile and web experiences, but current architectural patterns do not easily accommodate applications that respond to events in real time. Common solutions using message queues or HTTP long-polling quickly lead to resiliency, scalability and development velocity challenges. In his session at 21st Cloud Expo, Ryland Degnan, a Senior Software Engineer on the Netflix Edge Platform team, will discuss how by leveraging a reactive stream-based protocol,...
"I focus on what we are calling CAST Highlight, which is our SaaS application portfolio analysis tool. It is an extremely lightweight tool that can integrate with pretty much any build process right now," explained Andrew Siegmund, Application Migration Specialist for CAST, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Evatronix will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Evatronix SA offers comprehensive solutions in the design and implementation of electronic systems, in CAD / CAM deployment, and also is a designer and manufacturer of advanced 3D scanners for professional applications.
SYS-CON Events announced today that Synametrics Technologies will exhibit at SYS-CON's 22nd International Cloud Expo®, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. Synametrics Technologies is a privately held company based in Plainsboro, New Jersey that has been providing solutions for the developer community since 1997. Based on the success of its initial product offerings such as WinSQL, Xeams, SynaMan and Syncrify, Synametrics continues to create and hone inn...
As many know, the first generation of Cloud Management Platform (CMP) solutions were designed for managing virtual infrastructure (IaaS) and traditional applications. But that's no longer enough to satisfy evolving and complex business requirements. In his session at 21st Cloud Expo, Scott Davis, Embotics CTO, explored how next-generation CMPs ensure organizations can manage cloud-native and microservice-based application architectures, while also facilitating agile DevOps methodology. He expla...
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. In his session at @BigDataExpo, Jack Norris, Senior Vice President, Data and Applications at MapR Technologies, reviewed best practices to ...
"Evatronix provides design services to companies that need to integrate the IoT technology in their products but they don't necessarily have the expertise, knowledge and design team to do so," explained Adam Morawiec, VP of Business Development at Evatronix, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
DevOps promotes continuous improvement through a culture of collaboration. But in real terms, how do you: Integrate activities across diverse teams and services? Make objective decisions with system-wide visibility? Use feedback loops to enable learning and improvement? With technology insights and real-world examples, in his general session at @DevOpsSummit, at 21st Cloud Expo, Andi Mann, Chief Technology Advocate at Splunk, explored how leading organizations use data-driven DevOps to close th...
Digital Transformation (DX) is not a "one-size-fits all" strategy. Each organization needs to develop its own unique, long-term DX plan. It must do so by realizing that we now live in a data-driven age, and that technologies such as Cloud Computing, Big Data, the IoT, Cognitive Computing, and Blockchain are only tools. In her general session at 21st Cloud Expo, Rebecca Wanta explained how the strategy must focus on DX and include a commitment from top management to create great IT jobs, monitor ...
"WineSOFT is a software company making proxy server software, which is widely used in the telecommunication industry or the content delivery networks or e-commerce," explained Jonathan Ahn, COO of WineSOFT, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Recently, WebRTC has a lot of eyes from market. The use cases of WebRTC are expanding - video chat, online education, online health care etc. Not only for human-to-human communication, but also IoT use cases such as machine to human use cases can be seen recently. One of the typical use-case is remote camera monitoring. With WebRTC, people can have interoperability and flexibility for deploying monitoring service. However, the benefit of WebRTC for IoT is not only its convenience and interopera...
No hype cycles or predictions of a gazillion things here. IoT is here. You get it. You know your business and have great ideas for a business transformation strategy. What comes next? Time to make it happen. In his session at @ThingsExpo, Jay Mason, an Associate Partner of Analytics, IoT & Cybersecurity at M&S Consulting, presented a step-by-step plan to develop your technology implementation strategy. He also discussed the evaluation of communication standards and IoT messaging protocols, data...
In a recent survey, Sumo Logic surveyed 1,500 customers who employ cloud services such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP). According to the survey, a quarter of the respondents have already deployed Docker containers and nearly as many (23 percent) are employing the AWS Lambda serverless computing framework. It’s clear: serverless is here to stay. The adoption does come with some needed changes, within both application development and operations. Tha...