Welcome!

News Feed Item

Avcorp announces 2014 Second Quarter Financial Results

VANCOUVER, Aug. 14, 2014 /PRNewswire/ - Avcorp Industries Inc. (TSX: AVP) (the "Company" or "Avcorp") today announced its financial results for the quarter ended June 30, 2014.

Revenue for the quarter ended June 30, 2014 was $21,134,000 as compared to $20,492,000 for the quarter ended June 30, 2013. Current quarter revenues have increased relative to the same quarter in the previous year primarily as a result of an increase in quantities delivered for one defence program, strong aircraft component repairs revenue, as well as an increase in composite aircraft floor board sales and in‑house developed composite parts sales.

Comtek Advanced Structures Ltd. ("Comtek"), a wholly owned subsidiary of Avcorp, generated a 131% increase in aircraft component repairs revenue primarily as a result of targeted customer campaigns.  Comtek's sales of composite parts to airline operators increased as investments made in developing aftermarket replacement parts have commenced to generate revenues.

During the quarter ended June 30, 2014, the Company recorded a loss from operations of $472,000 on $21,134,000 revenue, as compared to $393,000 operating income on $20,492,000 revenue for the same quarter in the preceding year; and a net loss for the current quarter of $589,000 as compared to net income of $1,596,000 for the quarter ended June 30, 2013.  2013 second quarter earnings benefited from a $1,129,000 one-time other operating income as well as a $1,494,000 foreign exchange gain.

Cash flows from operating activities during the quarter ended June 30, 2014 provided $180,000 of cash as compared to utilizing $2,776,000 of cash during the quarter ended June 30, 2013.  The primary source of cash from operations during the current quarter is from changes in the amount of inventories and accounts payable, while the utilization of cash from operating activities is primarily attributable to recognition of revenues which were funded in previous quarters.  As at June 30, 2014 the Company had $3,027,000 cash on hand (December 31, 2013: $7,012,000). 

The Company has a working capital surplus of $11,331,000 as at June 30, 2014 which has decreased from the December 31, 2013 $14,213,000 surplus, as a result of cash utilized in operating activities.  The Company's accumulated deficit as at June 30, 2014 is $59,554,000 (December 31, 2013: $57,723,000).

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 380 skilled employees and 340,000 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)



June 30, 2014

December 31, 2013

ASSETS



Current assets



Cash

$   3,027

$   7,012

Accounts receivable

7,879

8,845

Inventories

12,483

14,940

Prepayments and other assets

1,106

1,306


24,495

32,103

Non-current assets



Prepaid rent

146

146

Development costs

2,509

1,240

Property, plant and equipment

8,703

8,704


Total assets

35,853

42,193




LIABILITIES AND EQUITY



Current liabilities



Accounts payable and accrued liabilities

9,757

7,645

Current portion of long-term debt

278

199

Preferred shares

-

36

Deferred program revenues

3,129

10,010


13,164

17,890

Non-current liabilities



Deferred gain

192

216

Lease inducement

419

469

Long-term debt

223

67


13,998

18,642

Equity



Capital stock

77,910

77,681

Contributed surplus

3,499

3,593

Deficit

(59,554)

(57,723)


21,855

23,551


Total liabilities and equity

35,853

42,193

 

 

CONSOLIDATED STATEMENTS OF (LOSS) INCOME AND COMPREHENSIVE (LOSS) 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

2014

2013

2014

2013


Revenues

$  21,134

$  20,492

$  38,685

$  40,438


Cost of sales

18,700

18,101

34,624

34,970


Gross profit

2,434

2,391

4,061

5,468


Administrative and general expenses

2,762

2,975

5,641

5,476

Office equipment depreciation

144

152

289

288

Other operating income

-

(1,129)

-

(1,129)


Operating (Loss) Income

(472)

393

(1,869)

833


Finance (income) costs – net

22

291

20

556

Foreign exchange (gain) loss

92

(1,494)

(65)

(1,427)

Write-down and loss on disposal of equipment

3

-

7

-


(Loss) Income before income tax

(589)

1,596

(1,831)

1,704


Income tax expense

-

-

-

-


(Loss) Income and total comprehensive (loss) income for the period

(589)

1,596

(1,831)

1,704


(Loss) Earnings per share:





Basic (loss) earnings per common share

(0.00)

0.01

(0.01)

0.01

Diluted (loss) earnings per common share

(0.00)

0.01

(0.01)

0.01


Basic weighted average number of shares outstanding (000's)

283,010

269,464

282,553

262,221


Diluted weighted average number of shares outstanding (000's)

283,010

271,070

282,553

263,520

 

 

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

2014

2013

2014

2013


Cash flows from (used in) operating activities






(Loss) Income before income tax

$   (589)

$  1,596

$  (1,831)

$  1,704



Adjustment for items not affecting cash:








Accrued interest and government royalties

13

102

16

181




Depreciation

411

535

775

1,067




Development cost amortization

1

644

136

980




Preferred share dividends accrued

-

188

-

377




Provision for loss-making contracts

-

-

(31)

-




Provision for obsolete inventory

90

-

49

(103)




Write-down and loss on disposal of equipment

3

-

7

-




Other items

(50)

(15)

(77)

(22)



(121)

3,050

(956)

4,184


Changes in non-cash working capital








Accounts receivable

(169)

333

1,006

848




Inventories

2,586

77

2,438

111




Prepayments and other assets

157

145

201

495




Other receivables

-

(2,548)

-

(2,548)




Accounts payable and accrued liabilities

1,429

(324)

2,108

690




Deferred program revenues

(3,702)

(3,509)

(6,921)

(7,972)



Net cash from (used in) operating activities

180

(2,776)

(2,124)

(4,192)








Cash flows from (used in) investing activities






Proceeds from sale of equipment

559

-

568

-


Purchase of equipment

(400)

(191)

(790)

(428)


Payments relating to development costs and tooling

(1,093)

(196)

(1,405)

(310)



Net cash from (used in) investing activities

(934)

(387)

(1,627)

(738)








Cash flows from (used in) financing activities






Increase (Decrease) in bank indebtedness

-

2,207

-

4,374


Payment of interest

(14)

(102)

(17)

(182)


Proceeds from issuance of common shares

44

1,249

142

1,249


Redemption of preferred shares and accrued dividends

-

-

(36)

-


Repayment of current and long-term debt

(307)

(279)

(323)

(296)



Net cash from (used in) financing activities

(277)

3,075

(234)

5,145



Net increase (decrease) in cash

(1,031)

(88)

(3,985)

215



Cash - Beginning of period

4,058

2,900

7,012

2,597



Cash - End of period

3,027

2,812

3,027

2,812


 

 

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


Share capital





Shares

Amount

Contributed
surplus

Deficit

Total
equity







Balance December 31, 2012

254,898,072

$ 76,423

$  3,539

$ (55,921)

$  24,041







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

(54,217)

27,033







Balance December 31, 2013

280,391,152

77,681

3,593

(57,723)

23,551







Issue of common shares

2,691,500

142

-

-

142







Stock-based compensation expense

-

-

(7)

-

(7)







Transfer to share capital on exercise of
stock options

-

87

(87)

-

-







Loss for the period

-

-

-

(1,831)

(1,831)







Balance June 30, 2014

283,082,652

77,910

3,499

(59,554)

21,855

 

 

SOURCE Avcorp Industries Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
Kubernetes, Docker and containers are changing the world, and how companies are deploying their software and running their infrastructure. With the shift in how applications are built and deployed, new challenges must be solved. In his session at @DevOpsSummit at19th Cloud Expo, Sebastian Scheele, co-founder of Loodse, will discuss the implications of containerized applications/infrastructures and their impact on the enterprise. In a real world example based on Kubernetes, he will show how to ...
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
SYS-CON Events announced today that Venafi, the Immune System for the Internet™ and the leading provider of Next Generation Trust Protection, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Venafi is the Immune System for the Internet™ that protects the foundation of all cybersecurity – cryptographic keys and digital certificates – so they can’t be misused by bad guys in attacks...
SYS-CON Events announced today that Hitrons Solutions will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Hitrons Solutions Inc. is distributor in the North American market for unique products and services of small and medium-size businesses, including cloud services and solutions, SEO marketing platforms, and mobile applications.
As the world moves toward more DevOps and Microservices, application deployment to the cloud ought to become a lot simpler. The Microservices architecture, which is the basis of many new age distributed systems such as OpenStack, NetFlix and so on, is at the heart of Cloud Foundry - a complete developer-oriented Platform as a Service (PaaS) that is IaaS agnostic and supports vCloud, OpenStack and AWS. Serverless computing is revolutionizing computing. In his session at 19th Cloud Expo, Raghav...
Is the ongoing quest for agility in the data center forcing you to evaluate how to be a part of infrastructure automation efforts? As organizations evolve toward bimodal IT operations, they are embracing new service delivery models and leveraging virtualization to increase infrastructure agility. Therefore, the network must evolve in parallel to become equally agile. Read this essential piece of Gartner research for recommendations on achieving greater agility.
DevOps at Cloud Expo – being held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Am...
Fact: storage performance problems have only gotten more complicated, as applications not only have become largely virtualized, but also have moved to cloud-based infrastructures. Storage performance in virtualized environments isn’t just about IOPS anymore. Instead, you need to guarantee performance for individual VMs, helping applications maintain performance as the number of VMs continues to go up in real time. In his session at Cloud Expo, Dhiraj Sehgal, Product and Marketing at Tintri, wil...
Ixia (Nasdaq: XXIA) has announced that NoviFlow Inc.has deployed IxNetwork® to validate the company’s designs and accelerate the delivery of its proven, reliable products. Based in Montréal, NoviFlow Inc. supports network carriers, hyperscale data center operators, and enterprises seeking greater network control and flexibility, network scalability, and the capacity to handle extremely large numbers of flows, while maintaining maximum network performance. To meet these requirements, NoviFlow in...
StarNet Communications Corp has announced the addition of three Secure Remote Desktop modules to its flagship X-Win32 PC X server. The new modules enable X-Win32 to safely tunnel the remote desktops from Linux and Unix servers to the user’s PC over encrypted SSH. Traditionally, users of PC X servers deploy the XDMCP protocol to display remote desktop environments such as the Gnome and KDE desktops on Linux servers and the CDE environment on Solaris Unix machines. XDMCP is used primarily on comp...
SYS-CON Events announced today that StarNet Communications will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. StarNet Communications’ FastX is the industry first cloud-based remote X Windows emulator. Using standard Web browsers (FireFox, Chrome, Safari, etc.) users from around the world gain highly secure access to applications and data hosted on Linux-based servers in a central data center. ...
SYS-CON Events announced today that eCube Systems, a leading provider of middleware modernization, integration, and management solutions, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. eCube Systems offers a family of middleware evolution products and services that maximize return on technology investment by leveraging existing technical equity to meet evolving business needs. ...