Firan Technology Group Announces Third Consecutive Year of Double Digit Revenue Growth.TORONTO Toronto (tərŏn`tō), city (1998 est pop. 2,400,000), provincial capital, S Ont., Canada, on Lake Ontario. Toronto is the largest city in Canada and since the 1970s has been one of the fastest-changing cities in North America, experiencing -- Firan Technology Group Corporation (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :FTG FTG Fairchild Tropical Garden (Coral Gables, FL, USA) FTG Firan Technology Group (Toronto, ON, Canada) FTG Ferntree Gully (suburb, Australia) FTG Free to Guest ) today announced the fourth quarter and full-year results for the period ending November November: see month. 30, 2005. The Company's revenue grew in 2005 to $52,801,000, an increase of $6,157,000 or 13% over 2004 and 104% growth over the past three years. This growth is the result of the corporate development activities over the past three years including the merger of FTG and Circuit World in 2003 and the acquisition of Young Electronics in December December: see month. 2004. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the fourth quarter of 2005 were $13,390,000, an increase of 28% compared with $10,467,000 for the fourth quarter of 2004 and a 1% increase over the third quarter of 2005. The strength in the Canadian dollar Noun 1. Canadian dollar - the basic unit of money in Canada; "the Canadian dollar has the image of loon on one side of the coin" loonie dollar - the basic monetary unit in many countries; equal to 100 cents versus the prior year reduced reported sales for the quarter by approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $700,000 and $3,600,000 for the full year. The combined Circuits businesses' net sales for the quarter were $10,634,000, an increase of $2,776,000 or 35% over the prior year. The strength of the Canadian dollar compared to the prior year reduced sales by more than $500,000. Net sales recorded from the Chatsworth Chatsworth, estate, Derbyshire, central England, near Chesterfield. It is the seat of the dukes of Devonshire. Begun in 1552, the present Classical-style Chatsworth House was rebuilt in 1686. facility were $3,249,000 for the quarter. On a year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. basis, net sales for the Circuits segment were $43,294,000, an increase of $5,635,000 or 15% over the comparable period in 2004. The strength of the Canadian dollar has reduced reported sales for the Circuits' segment by approximately $3,000,000 versus the prior year. Aerospace sales for the current quarter ended at $2,756,000 which increased 6% and were $147,000 higher than the same quarter last year and were 22% higher than the third quarter of 2005. On a year to date basis, net sales for Aerospace were $9,507,000 compared to $8,985,000 for the comparable period in 2004, an increase of 6%. The strength of the Canadian dollar reduced reported sales by approximately $600,000 for the full year.
Fourth Quarter Results (three months ended November 30, 2005
compared with three months ended
November 30, 2004)
Q4 2005 Q4 2004
----------- ------------
Sales $13,390,000 $10,467,000
Operating Earnings (Loss) Before Tax $124,000 ($235,000)
Net Earnings (Loss) $152,000 ($27,000)
Earnings per share - basic and diluted $0.01 $0.00
The Company had 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 before tax in the quarter of $124,000, an improvement from the pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $235,000 in the fourth quarter of 2004. Included in operating earnings for the quarter are charges of $123,000 and $42,000 respectively related to the sale of a property and final expenses received from its controlling shareholder related to the 2003 merger, offset by a $154,000 gain for FTG's portion of the gain on a sale of a property pursuant to an agreement with its controlling shareholder. The performance for the quarter resulted from substantially improved sales and margin in FTG Circuits Toronto compared to earlier in the year. FTG Aerospace continues to achieve positive performance. Net income for the fourth quarter was $152,000 or earnings of $0.01 per share ($0.01 per 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. share) as compared with a net loss of $27,000 or $0.00 per share ($0.00 earnings per diluted share) in the same period in 2004.
Year to Date Results (twelve months ended November 30, 2005 compared
with twelve months ended November 30, 2004)
YTD 2005 YTD 2004
----------- ------------
Sales $52,801,000 $46,644,000
Operating Loss Before Tax ($348,000) ($399,000)
Net Loss ($893,000) ($191,000)
Loss per share - basic & diluted ($0.05) ($0.01)
Full year results were negatively impacted by performance in FTG Circuits - Toronto in the first quarter of the year. For the final nine months of the year, the Company achieved an 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. of $944,000 and a net profit of $88,000. 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.
As at November 30, 2005, the Company's primary source of liquidity included, 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 of $8,518,000 and inventory of $6,409,000. Net working capital at November 30, 2005 was $4,283,000 as compared to $6,026,000 at November 30, 2004. In addition, the Company had a strong cash position at the end of the quarter with cash on hand of $2,051,000 and was undrawn un·draw tr.v. un·drew , un·drawn , un·draw·ing, un·draws To draw to one side, as a curtain. Adj. 1. undrawn - not represented in a drawing undelineated - not represented accurately or precisely on its' US and 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. operating lines. "Following the disappointing start to 2005, I am pleased at the progress the Company has made over the final nine months. FTG Circuits Chatsworth has been a great addition to the Company and their financial performance has exceeded our expectations. FTG Circuits Toronto has dramatically improved on production yields and on-time delivery since the first quarter. This is being recognized by our customer base as we continue to win new business. FTG Aerospace was impacted in the third quarter as we worked with a customer to overcome some technical challenges, but shipment levels recovered in the fourth quarter.", stated Mr. Brad Bourne Bourne, town (1990 pop. 16,064), Barnstable co., SE Mass., crossed by Cape Cod Canal; settled 1627, inc. 1884. Bourne Bridge (1935), across the canal, made the town an entry point to Cape Cod and a resort and commercial center. , President and Chief Executive Officer. Mr. Bourne added, "Our outlook for the future is positive as our customer base is forecasting continued growth and the operational performance levels across FTG are strong. The Company's external focus will continue to be in the aerospace and defense markets and on building leadership positions in the market segments in which we participate. Internally, the Company is focused on building the best possible team, exceeding our customers' expectations for quality, delivery and customer service, and executing on the critical metrics metrics Managed care A popular term for standards by which the quality of a product, service, or outcome of a particular form of Pt management is evaluated. See TQM. that drive profitability." The Company will host a live conference call on Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant January January: see month. 20, 2006 at 8:30am (EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT ) to discuss the results of the fourth quarter of 2005. Anyone wishing to participate in the call should dial 416-695-9722 or 1-888-333-4519 and identify that you are calling into the FTG conference call. The Chairperson chairperson Chairman The head of an academic department. See 'Chair.', Cf Chief. is Mr. Brad Bourne. A replay of the call will be available until January 27, 2006. The number to call for a rebroadcast is 416-695-5275 or 1-888-509-0081. ABOUT FIRAN TECHNOLOGY GROUP CORPORATION FTG is an aerospace and defence electronics product and subsystem A unit or device that is part of a larger system. For example, a disk subsystem is a part of a computer system. A bus is a part of the computer. A subsystem usually refers to hardware, but it may be used to describe software. supplier to the North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. marketplace. FTG has two operating units operating unit A type of operating company that engages in transactions with outsiders and that is owned by another business. For example, in 1995 the stockholders of Capital Cities/ABC approved a $19 billion merger with the Walt Disney Company, whereupon . FTG Circuits is a manufacturer of high technology/high reliability printed circuit boards. Our customers are leaders in the aviation, defence, and high technology industries. FTG Circuits has operations in Toronto, Ontario Ontario, city, United States Ontario, city (1990 pop. 133,179), San Bernardino co., S Calif., near Los Angeles, in a region of vineyards; inc. 1891. and Chatsworth, California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). . FTG Aerospace manufactures illuminated il·lu·mi·nate v. il·lu·mi·nat·ed, il·lu·mi·nat·ing, il·lu·mi·nates v.tr. 1. To provide or brighten with light. 2. To decorate or hang with lights. 3. cockpit This article is about the flight deck of an aircraft. For other uses, see Cockpit (disambiguation). A cockpit is the area usually nearer the front of a piloted aircraft from which a pilot controls the aircraft. panels, keyboards and sub-assemblies for original equipment manufacturers of avionics avionics (ā'vēŏn`ĭks), electronic instruments used in air or space flight; also the design and production of such instruments. Early planes had few instruments, but as aviation and aircraft became more complex, so did instrumentation. products as well as airframe manufacturers. 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 FTG. This news release may contain 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. . Such statements are based on the current expectations of management of the Company and inherently involve numerous risks and uncertainties, known and unknown, including economic factors and the Company's industry, generally. The preceding list is not exhaustive of all possible factors. Such forward-looking statements are not guarantees of future performance and actual events and results could differ materially from those expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by forward-looking statements made by the Company. The reader is cautioned to consider these and other factors carefully when making decisions with respect to the Company and not place undue reliance on forward-looking statements. The Company does not undertake and has no specific intention to update any forward-looking statements, written or oral that may be made from time to time by or on its behalf whether as a result of new information, future events or otherwise.
FIRAN TECHNOLOGY GROUP CORPORATION
Interim Consolidated Balance Sheets
November 30, 2005 and 2004
(in thousands of dollars)
---------------------------------------------------------------------
---------------------------------------------------------------------
2005 2004
------------ ---------
(unaudited) (audited)
ASSETS
CURRENT
Cash $ 2,051 $ 2,870
Accounts receivable 8,518 6,867
Inventories 6,409 4,363
Promissory note 133 1,500
Prepaid expenses 420 396
---------------------------------------------------------------------
17,531 15,996
DUE FROM RELATED PARTY 154 -
PLANT AND EQUIPMENT 7,168 9,923
FUTURE INCOME TAXES 3,724 3,684
GOODWILL 4,549 1,039
DEFERRED FINANCING FEES 171 177
---------------------------------------------------------------------
$ 33,297 $ 30,819
---------------------------------------------------------------------
---------------------------------------------------------------------
LIABILITIES
CURRENT
Accounts payable and accrued
liabilities $ 6,768 $ 7,059
Accrued restructuring and severance 298 663
Current portion of long-term debt
and capital leases 5,833 2,248
Income taxes payable 349 -
---------------------------------------------------------------------
13,248 9,970
LONG-TERM DEBT AND CAPITAL LEASES - 2,756
---------------------------------------------------------------------
13,248 12,726
---------------------------------------------------------------------
---------------------------------------------------------------------
SHAREHOLDERS' EQUITY
Share capital
Common shares 12,681 10,347
Preferred shares 2,218 2,218
Contributed surplus 7,604 6,798
Cumulative translation adjustment (4) -
Deficit (2,450) (1,270)
---------------------------------------------------------------------
20,049 18,093
---------------------------------------------------------------------
$ 33,297 $ 30,819
---------------------------------------------------------------------
---------------------------------------------------------------------
FIRAN TECHNOLOGY GROUP CORPORATION
Interim Consolidated Statements of Operations
Periods ended November 30, 2005 and 2004
(in thousands of dollars except per share amounts)
---------------------------------------------------------------------
---------------------------------------------------------------------
Three Months Ended Year to Date
November November November November
30 2005 30 2004 30 2005 30 2004
----------- ----------- ----------- ----------
(unaudited) (unaudited) (unaudited) (audited)
SALES $ 13,390 $ 10,467 $ 52,801 $ 46,644
COST OF SALES 10,911 8,301 42,224 35,507
---------------------------------------------------------------------
2,479 2,166 10,577 11,137
---------------------------------------------------------------------
EXPENSES
Selling, general
and administrative 1,345 1,630 6,233 7,010
Amortization of
plant and equipment 882 737 3,546 3,399
Interest expense on
long-term debt 159 34 509 240
---------------------------------------------------------------------
2,386 2,401 10,288 10,649
---------------------------------------------------------------------
OPERATING EARNINGS
(LOSS) BEFORE UNDERNOTED 93 (235) 289 488
RESTRUCTURING COSTS - - 7 (313)
SEVERANCE COSTS - - 661 1,200
GAIN ON SALE OF
LAND AND BUILDINGS (31) - (31) -
---------------------------------------------------------------------
OPERATING EARNINGS
(LOSS) BEFORE TAX 124 (235) (348) (399)
INCOME TAX (RECOVERY) (28) (208) 545 (208)
---------------------------------------------------------------------
NET EARNINGS (LOSS) $ 152 (27) $ (893) $ (191)
---------------------------------------------------------------------
---------------------------------------------------------------------
EARNINGS (LOSS) PER
SHARE
Basic and diluted $ 0.01 $ - $ (0.05) $ (0.01)
---------------------------------------------------------------------
---------------------------------------------------------------------
FIRAN TECHNOLOGY GROUP CORPORATION
Interim Consolidated Statements of Deficit
Periods ended November 30, 2005 and 2004
(in thousands of dollars)
---------------------------------------------------------------------
---------------------------------------------------------------------
Three Months Ended Year to Date
2005 2004 2005 2004
----------- ----------- ----------- ----------
(unaudited) (unaudited) (unaudited) (audited)
Deficit, beginning
of period $ (2,602) $ (1,243) $ (1,270) $ (1,079)
Change in
accounting policy - - (287) -
---------------------------------------------------------------------
Deficit, beginning
of period,
as restated (2,602) (1,243) (1,557) (1,079)
Net earnings (loss)
for the period 152 (27) (893) (191)
---------------------------------------------------------------------
Deficit,
end of period $ (2,450) $ (1,270) $ (2,450) $ (1,270)
---------------------------------------------------------------------
---------------------------------------------------------------------
FIRAN TECHNOLOGY GROUP CORPORATION
Interim Consolidated Statements of Cash Flows
Periods ended November 30, 2005 and 2004
(in thousands of dollars)
---------------------------------------------------------------------
---------------------------------------------------------------------
Three Months Ended Year to Date
November November November November
30 2005 30 2004 30 2005 30 2004
----------- ----------- ----------- ----------
(unaudited) (unaudited) (unaudited) (audited)
NET INFLOW (OUTFLOW)
OF CASH RELATED
TO THE FOLLOWING
ACTIVITIES
OPERATING
Net earnings (loss) $ 152 $ (27) $ (893) $ (191)
Items not affecting
cash
Stock based
compensation expense 26 - 142 -
Future income taxes (40) (169) (40) (169)
(Gain) loss on sale
of plant and
equipment (31) 20 (31) (293)
Amortization of
deferred financing
fees 9 9 41 115
Amortization of
plant and equipment 882 737 3,546 3,399
---------------------------------------------------------------------
998 570 2,765 2,861
Changes in non-cash
operating working
capital 798 334 (229) (531)
---------------------------------------------------------------------
1,796 904 2,536 2,330
---------------------------------------------------------------------
INVESTING
Increase in due
from related party (154) - (154) -
Acquisition of
Young Electronics - - (6,202) -
Proceeds from sale
of plant and
equipment 802 - 802 313
Additions to plant
and equipment (345) (242) (1,285) (1,100)
---------------------------------------------------------------------
303 (242) (6,839) (787)
---------------------------------------------------------------------
FINANCING
Issuance of shares
and warrants - - 2,709 -
Proceeds from
long term debt - - 3,153 8,793
Increase in deferred
financing fees - - (35) -
Payment of
long-term debt and
capital leases (1,999) (582) (2,308) (7,505)
---------------------------------------------------------------------
(1,999) (582) 3,519 1,288
---------------------------------------------------------------------
Effects of foreign
exchange rate
changes on cash flow 8 - (35) -
---------------------------------------------------------------------
NET CASH FLOW 108 80 (819) 2,831
CASH , BEGINNING
OF PERIOD 1,943 2,790 2,870 39
---------------------------------------------------------------------
CASH, END OF PERIOD $ 2,051 $ 2,870 $ 2,051 $ 2,870
---------------------------------------------------------------------
---------------------------------------------------------------------
DISCLOSURE OF CASH
PAYMENTS
Interest $ 167 $ 40 $ 514 $ 240
Income taxes $ 356 $ - $ 356 $ -
Firan Technology Group Corporation (TSX:FTG) |
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