Avcorp Announces 133 Percent Increase in Net Earnings.VANCOUVER, B.C.--(BUSINESS WIRE)--Aug. 20, 1998-- Avcorp(TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :AVP AVP arginine vasopressin. ) (ME:AVP) Avcorp Industries Inc. (AVP on the Montreal and Toronto Stock Exchanges Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. ) reported a 133 percent increase in net earnings for the quarter ended June 30, 1998 over the same period last year. The Company's net earnings for the quarter increased 133 percent to $960,000 ($0.07 per share) compared to $412,000 ($0.03 per share) for the same period last year. Net earnings as a percentage of sales have increased steadily each quarter, since the end of fiscal 1997, from 3.4 percent, to 4.1 percent at the end of the first quarter, to 4.9 percent at the end of the second, and to 5.4 percent at the end of the current quarter. Mr. Peter Jeffrey, President and Chief Executive Officer said: "the results are especially gratifying grat·i·fy tr.v. grat·i·fied, grat·i·fy·ing, grat·i·fies 1. To please or satisfy: His achievement gratified his father. See Synonyms at please. 2. for us as not only did we set a new Company record for revenue and operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before in the quarter, but we did it during a period where we physically moved the largest Division to new premises, and invested significant resources into development costs on the RJ700 Bombardier regional jet program, the largest contract on the Company's books." During the period, the Company substantially completed the move of its largest Division from its leased buildings in Richmond, British Columbia This page is for the city of Richmond, British Columbia. For the federal electoral district in this locality see Richmond (electoral district); for the provincial electoral district see Richmond (provincial electoral district). to its new purpose-built owned 300,000 sq. ft. facility in Delta, British Columbia Delta is a district municipality in British Columbia, Canada. Located south of Richmond, it is bordered by the Fraser River to the north, the United States (Point Roberts, Washington) to the south and the city of Surrey to the east. . The move has been executed while maintaining product quality and delivery schedules, and with the Aerostructures Division experiencing revenue growth of 60 percent compared to the prior year. Third quarter sales of $17,634,000 were an increase of 59 percent over the same period last year and a 13 percent increase over the previous quarter. Sales for the nine months were $48,579,000, an increase of 48 percent over the same period last year. These increases continue to be the result of the ramp up Ramp Up To increase a company's operations in anticipation of increased demand. Notes: A company might 'ramp up' operations if they just signed a contract creating substantially more demand for their product. See also: Demand, Economies of Scale of existing contracts and new contracts coming on stream from both the regional jet and commercial jet segments of the aerospace industry. The Company's net earnings for the nine months were $2,361,000 compared to $1,649,000 for the same period last year. Last year's net earnings included a recovery from discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. , net of expenses, of $590,000. During the period, the Company has drawn down $8 million of mortgage financing relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the new Delta facility with the Company's bank and the Government of British Columbia British Columbia, province (2001 pop. 3,907,738), 366,255 sq mi (948,600 sq km), including 6,976 sq mi (18,068 sq km) of water surface, W Canada. Geography . In addition, the Company completed a $3 million private placement in the form of a convertible debenture Convertible Debenture Any type of debenture that can be converted into some other security. Notes: For example, a convertible bond can be converted into stock. . The principal is at a conversion price of $4.00 per share and bears interest compounded at 8 percent per annum Per annum Yearly. and accrues until conversion or maturity. During the fourth quarter, the Company expects to close another $5 million private placement in the form of a convertible debenture and to draw down an additional $6 million on the property mortgage facilities. These funds have provided the Company with the necessary resources to build the infrastructure required to support the accelerating growth rate. Of the Company's budgeted $13.8 million equipment purchases for the current fiscal year, $10.8 million has been spent in the nine months to June 30, 1998. During the period, the Company spent $2,315,971 under the Normal Course Issuer Bid buying back 657,301 of its common shares for an average price of $3.52. The Company believes revenue trends for the final quarter of fiscal 1998 will continue to increase over the prior year. Operating results should also continue their upward trend. Avcorp Industries Inc. is a Canadian aerospace industry manufacturer. The Company is a single-source supplier for design, fabrication fabrication (fab´rikā´sh  n),n the construction or making of a restoration. and assembly of metal, composite and plastic components and is made up of four divisions: Aerostructures, Composites, Metal Products and Engineering. -0-
AVCORP INDUSTRIES INC.
EARNINGS STATEMENT
Three Months Ended Nine Months Ended
June 30 June 30
1998 1997 1998 1997
(in thousands of dollars)
Sales $ 17,634 $ 11,121 $ 48,579 $ 32,772
Cost of sales
and expenses 16,443 10,799 45,919 31,964
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Operating earnings 1,191 322 2,660 808
Interest (expense) income (231) 90 (299) 251
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Earnings before
discontinued operations 960 412 2,361 1,059
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Recovery from
discontinued operations - - - 590
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Net earnings $ 960 $ 412 $ 2,361 $ 1,649
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Net earnings per
common share
Basic $ 0.07 $ 0.03 $ 0.17 $ 0.12
Fully diluted $ 0.07 $ 0.03 $ 0.16 $ 0.11
Earnings before
discontinued operations
per share
Basic $ 0.07 $ 0.03 $ 0.17 $ 0.08
Fully diluted $ 0.07 $ 0.03 $ 0.16 $ 0.07
CONTACT: Avcorp Industries Inc. Mr. Victor Giacomin, C.A., 604/582-1137 604/582-2620 (FAX) Website: www.avcorp.com |
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