Avcorp Industries Inc. Announces Fiscal 1999 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)--Dec. 24, 1999 AvcorpInd (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :AVP AVP arginine vasopressin. .) Avcorp Industries Inc. (AVP on The Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. ) today released results for the 4th quarter and fiscal year ended September 30, 1999. The financial results are summarized as follows:
AVCORP INDUSTRIES INC.
STATEMENT OF EARNINGS
(in thousands of dollars)
4th Quarter Ended Fiscal Year Ended
September 30 September 30
1999 1998 1999 1998
Sales $ 31,215 $ 18,324 $ 89,559 $ 66,903
--------- -------- --------- ---------
Net (loss)
earnings $ (605) $ 449 $ (10,756) $ 2,810
--------- -------- --------- ---------
Net earnings (loss)
per common
Share $ (0.05) $ 0.03 $ (0.81) $ 0.20
--------- -------- --------- ---------
Operating Results Revenues increased 70% for the quarter ended September 30, 1999 as compared to the same quarter last year. Sales include $8.5 million of non-recurring revenues related to the sale of intellectual property (IP) to Bombardier Inc. on the CRJ-700. Excluding this item, sales increased by 24%. The loss for the quarter was $605,000 ($0.05 per share) as compared to earnings of $449,000 ($0.03 per share) last year. For the fiscal year ended September 30, 1999 gross revenues increased 34% to $89.6 million compared to $66.9 million last year. Excluding the one time sale of IP for $8.5 million, sales increased by 21%. The net loss was $10.8 million ($0.81 per share), which includes a $7.2 million write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. on the sale of the IP on the CRJ-700, provision for uncollectable accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying and write-down of shareholder loans of $1.0 million, environmental remediation Generally, remediation means providing a remedy, so environmental remediation deals with the removal of pollution or contaminants from environmental media such as soil, groundwater, sediment, or surface water for the general protection of human health and the environment or from a costs associated with the old Richmond B.C. facility of $621,000, severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when costs in restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). the operations in the 4th quarter of $534,000 and the write-down of an investment in a startup Company The creator of this article, or someone who has substantially contributed to it, may have a conflict of interest regarding its subject matter. It may require cleanup to comply with Wikipedia's content policies, particularly neutral point of view. of $100,000. The sales increases were primarily due to higher sales to Bombardier on the regional jet programs and higher export sales, principally to The Boeing Company. The first deliveries on the CRJ-700 program generated $3.2 million in the 4th quarter of 1999 and are expected to increase to over $8 million in fiscal 2000. The Company's sales 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 September 30, 1999 is approximately $265 million of which $91 million is under firm purchase orders. Loss before interest, depreciation and income taxes (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 ) for the year was $5.2 million as compared to earnings of $5.7 million last year. Excluding the loss on the sale of IP related to the CRJ-700 contract, EBITDA for the year was a positive $2.0 million. It is important to note that for the quarter, the EBITDA before the loss on the sale of IP and other items improved from $1.6 million in 1998 to $2.0 million in 1999. Bank indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. was $9.2 million at September 30, 1999. Subsequent to year-end the Company completed a $4 million financing with the Province of B.C. and collected the final $5.7 million from Bombardier on the renegotiated CRJ-700 contract. Year 2000 The Company has substantially completed Year 2000 testing. No year-end issues are anticipated since all critical systems have been tested and are Year 2000 compliant a. 1. (Computers) having dates fully and properly represented, and not susceptible to failure due to the year 2000 bug. . This includes a review of dealings with all key suppliers and customers. Financial Information A supplementary earnings statement is attached to enable easier comparison between years.
AVCORP INDUSTRIES INC.
SUPPLEMENTARY STATEMENT OF EARNINGS
(in thousands of dollars)
4th Quarter Ended Fiscal Year Ended
September 30 September 30
1999 1998 1999 1998
Sales (excluding sale
of IP on the
CRJ700 program) $ 22,645 $ 18,324 $ 81,076 $ 66,903
---------------------------------------------
Gross profit
(excluding loss
on sale of IP on the 4,341 4,013 12,137 13,539
CRJ700 program) 19.2% 21.9% 15.0% 20.2%
---------------------------------------------
Administrative &
general expenses 2,293 2,420 7,851 7,614
10.1% 13.2% 9.7% 11.4%
---------------------------------------------
Earnings before
amortization, interest
& other items 2,048 1,593 4,286 5,925
---------------------------------------------
Amortization, interest
& other items:
Loss (adjustment)
on sale of IP on the
CRJ-700 Program ( 791) - 7,209 -
Amortization 1,175 764 3,168 2,222
Interest 825 222 2,218 521
Write-down of
receivables and
shareholder loans 842 - 1,042 -
Environmental costs 30 125 621 240
Severance Costs 534 - 534 -
Write-down of long
term investment - - 100 -
-------------------------------------------
Sub-total 2,615 1,111 14,892 2,983
-------------------------------------------
Net (loss)
earnings before tax $ (567) $ 482 $ (10,606) $ 2,942
Income taxes $ (38) $ (33) $ (150) $ (132)
-------------------------------------------
Net (loss) earnings $ (605) $ 449 $ (10,756) $ 2,810
-------------------------------------------
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, fabrication fabrication (fab´rikā´sh  n),n the construction or making of a restoration. and assembly of metal, composite and plastic components and comprises two divisions: Aerostructures and Integrated Products Divisions. |
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