Avcorp announces second quarter 1997 results.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)--May 8, 1997-- AVCORP Industries Inc. (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). ;ME AVP AVP arginine vasopressin. ) of Vancouver announced today its Second Quarter 1997 results for the three months ended March 31, 1997, as follows: -0-
Three Months ended Six Months ended
March 31 March 31
1997 1996 1997 1996
_________________ ________________
Sales $10,839 $10,607 $21,651 $19,357
Cost of sales and
expenses (10,612) (10,210) (21,165) (18,790)
Interest - net 77 (16) 161 (48)
________ ________ ________ ________
Operating earnings 304 381 647 519
Recovery from
discontinued
operations - - 590 -
________ ________ ________ ________
Net earnings $304 $381 $1,237 $519
________ ________ ________ ________
________ ________ ________ ________
Net Earnings per
common share
Basic $0.02 $0.04 $0.09 $0.06
Fully Diluted $0.02 $0.04 $0.08 $0.06
Sales for the six months to March 31 1997 were $21,651,000, an increase of 12 percent over the same period last year. While sales from regional and business aircraft and helicopter markets remain firm, increases from commercial aircraft production have yet to reach anticipated levels as evident in the second quarter. This is due partly to the change in work offload To remove work from one computer and do it on another. See cooperative processing. methods by the Boeing Company, where work originally planned as emergent emergent /emer·gent/ (e-mer´jent) 1. coming out from a cavity or other part. 2. pertaining to an emergency. emergent 1. coming out from a cavity or other part. 2. coming on suddenly. offload, is now being provided under long term contracts. This process, while more beneficial for Avcorp, takes longer to achieve. Contracts recently awarded, principally by Boeing, that will enter production prior and during the fourth quarter of fiscal 1997, will 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 to $11 million annually. Additional contracts are under negotiation. Commencing in late 1998, $16 million annual sales will be added with the recently announced Canadair's RJX design and production contract. The Company's operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. for the six months to March 31, 1997 was $647,000, compared to $519,000 for the same period last year. With some aircraft programs forecasted to be more than double their current production rates, the Company continues to absorb new costs to bring on additional capacity ahead of major new contracts and customers' offload programs. The temporary delay in the volume of commercial offload work has caused Avcorp to carry the additional available capacity for longer than budgeted. This has adversely impacted the Company's bottom line performance in the second quarter, and will do so also in the third quarter. This impact is one of timing only. The Company's net earnings for the six months to March 31, 1997 was $1,237,000, compared to $519,000 for the same period last year. The First Quarter's net earnings included a reversal of an earlier provision of $590,000, net of expenses, detailed in last year's Annual Report. The Company's positive bank position of $11,155,000 at March 31, 1997 compares to a bank position of $3,016,000 as at September 30, 1996. This improvement is net of fixed asset purchases in the period of $2,101,000. Until the Company's surplus cash position is invested in operations, the return on equity will be diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. . Major investments in new equipment, facility expansion and the start-up Start-up The earliest stage of a new business venture. of design development under a recently announced Canadair RJX contract will continue in the second half of the year. Acquisitions have also been identified, with the objective of completing at least one purchase during this fiscal year. 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 is made up of four divisions: Aerostructures, Composites, Metal Products and Engineering. CONTACT: Avcorp Industries Inc. C.E. Butterfield, 604/ 278-4204 604/ 278-8346 (FAX) |
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