Circuit World Announces Third Quarter 2001 Results.Business Editors TORONTO--(BUSINESS WIRE)--Nov. 5, 2001 Circuit World Corporation (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :CCW (Continuous Composite Write) A magneto-optic disk technology that emulates a WORM (Write Once Read Many) disk. It uses firmware in the drive to ensure that data cannot be erased and rewritten. ) today announced results for the Third quarter ended September September: see month. 29, 2001.
Third Quarter Highlights (three months ended September 29, 2001
------------------------ compared with three months ended
September 30, 2000)
Q3 2001 Q3 2000
------- -------
Sales $4,510,000 $8,027,000
EBITDA(1) ($ 489,000) $1,448,000
Net Income/(Loss) ($1,303,000) $655,000
E.P.S. - basic ( $0.18) $0.13
- fully diluted ( $0.18) $0.10
Nine Month Highlights (nine months ended September 29, 2001
--------------------- compared with nine months ended
September 30, 2000)
9 Months 2001 9 Months 2000
------------- -------------
Sales $21,967,000 $22,754,000
EBITDA(1) $2,255,000 $3,794,000
Net Income/(Loss) ($223,000) $1,509,000
E.P.S. - basic ($0.03) $0.29
- fully diluted ($0.03) $0.23
The downturn Downturn 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 electronics industry remains the primary cause for the adverse results. The Company incurred a net loss of $1,303,000 in the third quarter as compared with a net income of $655,000 in the same period last year. Included in this loss was a foreign exchange loss of $367,000 and onetime one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. costs relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc workforce reduction and other miscellaneous items of $123,000. Excluding these charges, 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 $21,000. John Bartkiw, CFO See Chief Financial Officer. , stated that significant measures were taken to reduce the Company's cost structure to more closely align align (  līn),v to move the teeth into their proper positions to conform to the line of occlusion. them with reduced revenues. On a year to date basis, the Company believes that it continues to outperform Outperform An analyst recommendation meaning a stock is expected to do slightly better than the market return. Notes: Exact definitions vary by brokerage, but in general this rating is better than neutral and worse than buy or strong buy. the vast majority of competitors in the circuit board industry and remains very well positioned when more normalized economic conditions return. (1) Earnings Before Interest, Taxes, Depreciation and Amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
Subsequent to the end of the third quarter, the Company strengthened its financial position by concluding a $2,500,000 term financing with the Business Development Bank of Canada The Business Development Bank of Canada is a crown corporation financial institution wholly owned by the Government of Canada. BDC plays a leadership role in delivering financial and consulting services to Canadian small business, with a particular focus on technology and exporting. . This financing resulted in the long term financing of capital equipment purchased earlier this year with the balance being used for working capital purposes. Post transaction, the financing improved the Company's working capital ratio to 1.44:1 and its debt to equity ratio The debt to equity ratio (D/E) is a financial ratio indicating the relative proportion of equity and debt used to finance a company's assets. It is equal to total debt divided by shareholders' equity. was 0.8:1. As stated previously, the Company believes that current market conditions will ensure ongoing reductions in North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. capacity to the benefit of those who are around for the long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. . Current industry information suggests that the modest recovery widely expected will not occur before year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. . "Our substantial investments over the last few years should enable us to further enhance our technology leadership position" stated Gordon Gordon, river in W Tasmania, Australia, 125 mi (200 km) long. Flowing from mountains to the W coast, its main tributaries are the Franklin and Denison from the N, and Serpentine and Olga to the S. Roseborough, Circuit World's President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . Circuit World Corporation is a high-technology fabricator fab·ri·cate tr.v. fab·ri·cat·ed, fab·ri·cat·ing, fab·ri·cates 1. To make; create. 2. To construct by combining or assembling diverse, typically standardized parts: of high-density high-den·si·ty adj. Having a high concentration: high-density urban areas. , multi-layered printed circuit boards. Approximately 80% of its sales are derived from the Avionics, Telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. , Medical and Advanced Test industries in the U.S., with the remainder in Canada. The company's shares are traded on the Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. under the symbol CCW. Currently there are approximately 7.1 million shares outstanding. This news release contains certain 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. that reflect the current views and/or expectations of Circuit World with respect to its performance, business and future events. Such statements are subject to a number of risks, uncertainties and assumptions. Actual results and events may vary significantly. For further information please contact: John Bartkiw, CFO Circuit World Corporation Tel: (416) 299-4000 johnb@circtwrld.com Jon W. Kieran or Zuzana Bolender, Investor Relations Investor relations The process by which the corporation communicates with its investors. Hume, Kieran Inc. Tel: (416) 868-1079 jon@humekieran.com Financial statements can be found at the company's web site www.circtwrld.com The company welcomes calls from brokers and analysts wishing to learn more about Circuit World. If you prefer to receive Circuit World press releases via e-mail, please advise Brenda Orser at brenda@humekieran.com
Unaudited Balance Sheets (expressed in thousands of Canadian
dollars)
29-Sep-01 30-Sep-00 31-Dec-00
ASSETS
CURRENT
Cash $ 286 $ - $ 1,467
Accounts receivable 3,359 4,763 5,048
Inventories 2,436 2,990 3,697
Prepaid expenses 262 115 187
------ ------ ------
6,343 7,868 10,399
Plant and Equipment 14,472 9,906 11,826
Other Assets 192 247 251
------ ------ ------
$ 21,007 $ 18,021 $ 22,476
======== ======== ========
LIABILITIES
CURRENT
Overdraft and bank
indebtedness $ - $ 1,275 $ -
Accounts payable and
accrued liabilities 4,087 3,956 4,770
Current portion of
long-term debt and
vendor financing 2,090 1,636 1,942
------ ------ -------
6,177 6,867 6,712
Long-Term Debt and
Vendor Financing 3,204 3,262 3,932
Convertible Subordinated
Debentures 790 790 790
------ ------ ------
10,171 10,919 11,434
------ ------ ------
SHAREHOLDERS' EQUITY
Share Capital 7,328 4,071 7,310
Equity component of
convertible subordinated
debentures 10 10 10
Contributed Surplus 1,426 1,426 1,426
Retained Earnings 2,072 1,595 2,296
------ ------ ------
10,836 7,102 11,042
------ ------ ------
$ 21,007 $ 18,021 $ 22,476
======== ======== ========
Unaudited Statements of Operations (expressed in thousands of
Canadian dollars)
Three Months Ended Nine Months Ended
29-Sep-01 30-Sep-00 29-Sep-01 30-Sep-00
Sales $ 4,510 $8,027 $ 21,967 $ 22,754
Cost of Sales 3,755 5,344 15,989 15,784
------ ------ ------ ------
Gross Margin 755 2,683 5,978 6,970
17% 33% 27% 31%
Expenses
Selling, general
and Administrative 1,219 1,171 3,626 3,019
Amortization of
plant and Equipment 720 604 2,160 1,684
Research and
development 25 64 124 157
Interest 94 189 291 601
---- ---- ---- ----
Net Income/(Loss) ($ 1,303) $ 655 ($ 223) $1,509
========= ===== ======= ======
Earnings per Share
- Basic ($0.18) $0.13 ($0.03) $0.29
Earnings per Share
- Fully diluted ($0.18) $0.10 ($0.03) $0.23
Unaudited Statements of Cash Flows (expressed in thousands of
Canadian dollars)
Three Months Ended Nine Months Ended
29-Sep-01 30-Sep-00 29-Sep-01 30-Sep-00
Operating
Net Income ($1,303) $ 655 ($ 223) $ 1,509
Items not affecting
cash
(Gain)/Loss on
disposal of plant &
equipment - 27 -
Amortization of
plant and equipment 720 604 2,160 1,684
------ ------ ------ ------
(583) 1,259 1,964 3,193
Changes in non-cash
working capital,
excluding current
portion of long term
debt 617 214 2,193 (207)
------ ------ ------ ------
34 1,473 4,157 2,986
------ ------ ------ ------
Investing
Additions to plant
and equipment (256) (552) (4,915) (1,602)
Proceeds on disposal
of plant &
equipment 1,049 82 1,049
------ ------ ------ ------
(256) (497) (4,833) (553)
------ ------ ------ ------
Financing
Other 8 76 (100)
Repayment of
long-term debt (250) (1,150) (1,164) (2,008)
Increase in
long-term debt 583 657
------ ------ ------ ------
(242) (1,150) (505) (1,451)
------ ------- ------ -------
Increase (Decrease)
in Cash (464) 820 (1,181) 982
Cash/(Bank
Indebtedness),
beginning of period 750 (2,095) 1,467 (2,257)
------ ------ ------ ------
Cash/(Bank
Indebtedness), end
of Period $ 286 $ (1,275) $ 286 $ (1,275)
====== ========= ====== =========
Disclosure of Cash
Payments
Interest $ 94 $ 189 $ 291 $ 601
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