Avcorp Industries Inc.: First Quarter Fiscal 2002 Results.Business Editors VANCOUVER Vancouver, city, Canada Vancouver, city (1991 pop. 471,844), SW British Columbia, Canada, on Burrard Inlet of the Strait of Georgia, opposite Vancouver Island and just N of the Wash. border. , British Columbia--(BUSINESS WIRE)--Feb. 27, 2002 Avcorp Industries Inc. (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :AVP AVP arginine vasopressin. ) today announced results for the first quarter of fiscal 2002 ended December December: see month. 31, 2001. Revenues for the quarter were $18.9 million, representing a decrease of 16% or $3.6 million from the same quarter in 2000, as customers rescheduled orders in line with changing aircraft delivery schedules. Bombardier Aerospace Bombardier Aerospace is a division of the Bombardier group, with the third largest workforce (behind Boeing and Airbus) and the fourth largest in yearly delivery of commercial airplanes (behind Boeing, Airbus and Embraer). and the Boeing (language) BOEING - An early system on the IBM 1130. [Listed in CACM 2(5):16, May 1959]. Commercial Airplane airplane, aeroplane, or aircraft, heavier-than-air vehicle, mechanically driven and fitted with fixed wings that support it in flight through the dynamic action of the air. Group are the Company's two principal customers. Cost of goods sold Cost of goods sold The total cost of buying raw materials, and paying for all the factors that go into producing finished goods. cost of goods sold for the quarter was 85.1% of revenue, compared to 81.6% in the same period last year, reflecting fixed overhead and product mix changes as orders were rescheduled at different rates by different customers. Administration and general expenses for the quarter were 6.6% of revenue compared to 8.1% in the same period last year, as the Company continued cost controls and reduced incentive and other accruals Accruals Accounts on a balance sheet that represent liabilities and non-cash-based assets used in accrual-based accounting. These accounts include, among many others, accounts payable, accounts receivable, goodwill, future tax liability and future interest expense. . EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become was $1.7 million-a $754,000 reduction from the same quarter in fiscal 2001-and the Company earned profits of $25,000-a $425,000 reduction from the same quarter in fiscal 2001. Both were direct results of customers rescheduling deliveries to reflect current economic conditions. Lastly, interest expense was reduced by $214,000 over the same quarter in fiscal 2001 largely as a result of a reduction of long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. . The Company ended the quarter with a bank line utilization of $932,000 against a $10.0 million facility, compared to utilization of zero at September September: see month. 30, 2001. The Company continues to reduce long-term debt and to operate with lower bank overdraft A check that is drawn on an account containing less money than the amount stated on the check. The term overdraft is also used in reference to the condition that exists when vouchers utilization than in the prior year, resulting from continued focus on working capital and capital expenditures. During the quarter, the Corporation invested $157,000 in capital assets capital assets n. equipment, property, and funds owned by a business. (See: capital, capital account) and re-paid $806,000 of long-term debt. Management believes cash generated from operations and existing credit facilities credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement credit facilities will be sufficient to fund Company requirements over the near term. Order backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. at December 31, 2001 was $360 million, compared to $320 million at September 30, 2001, reflecting new contracts signed during the period. During the quarter the Company: -- continued to meet customers expectations for quality, cost, and schedule; -- reduced inventory by $1.2 million; -- reduced headcount by a further 38 employees in addition to a reduction of 47 in the fourth quarter of fiscal 2001 to a total of 660 employees; and -- continued a strong growth trend in new customer work with the signing of a $40 million contract for the Cessna Sovereign aircraft. John Nicholson John Nicholson may refer to:
The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. in the industry. We have reduced our costs accordingly and will continue to do so. We signed another contract with Cessna for the Sovereign aircraft and saw an increase in orders from Bombardier. There are some early signs of cautious optimism in the aerospace industry. Our cash position is stronger than last year and we are continuing to invest in people, processes and equipment to ensure that we emerge strongly when production increases again." Avcorp Industries Inc. is a Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. aerospace industry manufacturer. The Company is a single-source supplier for design, machining, fabrication fabrication (fab´rikā´sh  n),n the construction or making of a restoration. and assembly of metal, composite and plastic components for global aerospace markets and comprises of two divisions: Aerostructures Division in 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 and the Integrated Products Division in Quebec. Certain statements in this press release that are not purely historical constitute forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of Section 21E of the Securities and Exchange Act of 1934, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , including statements regarding the Company's expectations, beliefs, intentions or strategies regarding the future. The information in this press release is based on information available to the Company as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" and the Company assumes no obligation to update any such forward-looking statements. Forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. Such risks include, among others, general business and economic conditions and competitive actions as well as other risks and uncertainties. John H. Nicholson, President and Chief Executive Officer
expressed in thousands of
Canadian dollars except
per share amounts
-------------------------------------------------------------------
Balance Sheets unaudited
Dec 31 Sept 30
2001 2001
ASSETS
Current Assets
Bank - 595
Accounts receivable 9,818 10,916
Inventories 18,543 19,700
Prepayments and
other assets 611 805
---------------------
28,972 32,016
Capital assets 35,109 35,715
Other assets 150 150
---------------------
64,231 67,881
---------------------
LIABILITIES
Current liabilities
Bank indebtedness 932 -
Accounts payable and
accrued liabilities 8,048 11,801
Deferred revenue 3,578 3,737
Current portion of
long-term debt 3,555 3,611
---------------------
16,113 19,149
Long-term debt 30,185 30,824
---------------------
46,298 49,973
---------------------
Shareholders' Equity
Capital stock 30,219 30,219
Deficit (12,286) (12,311)
---------------------
17,933 17,908
---------------------
64,231 67,881
---------------------
Statements of Operations unaudited
For the three months
ended Dec 31
2001 2000
Revenues 18,937 22,532
---------------------
Cost of sales and
expenses
Cost of sales 16,120 18,376
Administrative and
general expenses 1,250 1,835
Depreciation and
amortization 763 864
Interest 749 963
---------------------
18,882 22,038
---------------------
Earnings before income taxes 55 494
Income taxes (30) (41)
---------------------
Earnings 25 453
---------------------
Earnings per share
Basic $ 0.00 $ 0.03
Weighted average
number of basic
shares outstanding
(000's) 14,612 13,301
---------------------
Diluted $ 0.00 $ 0.03
Weighted average
number of diluted
shares outstanding
(000's) 14,640 13,301
---------------------
expressed in thousands
of Canadian dollars except
per share amounts
Statements of Cashflows unaudited
For the three months
ended Dec 31
2001 2000
Cash flows from
operating activities
Earnings from
operations 25 453
Items not affecting
cash 327 848
Change in non-cash
items related to
operating activities (916) 1,404
----------------------
(564) 2,705
----------------------
Cash flows from
investing activities
Purchase of capital
assets (157) (60)
----------------------
(157) (60)
----------------------
Cash flows from
financing activities
Net change in bank
indebtedness 932 (1,719)
Repayment of
long-term debt (806) (926)
----------------------
126 (2,645)
----------------------
Net change in cash
and cash equivalents (595) -
Cash and cash
equivalents
Beginning of period 595 -
----------------------
End of period - -
----------------------
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