Wescam Reports Revenue and Net Earnings Growth for Fiscal 2001 and Record Q4 Results.Business Editors BURLINGTON Burlington, town, Canada Burlington, town (1991 pop. 129,575), SE Ont., Canada, on Lake Ontario. First settled (1798) by Mohawk Loyalist Joseph Brandt, Burlington's economy was built on the shipment of wheat, lumber, and quarried rock by waterway. , Ontario--(BUSINESS WIRE)--Dec. 13, 2001 Wescam Inc. (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :WSC WSC Winter Symposium on Chemometrics WSC Winter Simulation Conference WSC Wayne State College WSC Westfield State College (Westfield, MA) WSC Western State College (Colorado) .) Wescam Grows Net Earnings 21% in Fiscal 2001 On Revenue Growth of 3% Wescam (TSE:WSC.) today announced its results for the year ended October October: see month. 31, 2001. Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: revenue rose three percent in fiscal 2001 to $166.4 million, compared with $161.0 million in fiscal 2000. The revenue increase is primarily due to higher deliveries of Wescam's MX(TM) family of camera systems for various government programs. Fiscal 2001 consolidated net earnings applicable to common shares grew 21 percent to $ 9.6 million or $ 0.60 per basic common share and $ 0.57 fully 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. versus $7.9 million or $0.53 per basic common share and $0.50 fully diluted in fiscal 2000. Net earnings increased primarily due to a combination of higher revenue, improved productivity and lower tax rates. Fiscal 2001 fourth quarter revenue rose 26 percent to a record $55.4 million versus $44.0 million in the same quarter last year. The dramatic growth in revenue was primarily the result of significant deliveries and customer acceptance of equipment for 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. , multi-unit programs in the Government Systems division. Consolidated net earnings applicable to common shares for the fourth quarter of fiscal 2001 grew 62 percent to $4.8 million or $0.30 per share compared with $3.0 million or $0.19 per share in the same quarter last year. Fully diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of for the fourth quarter amounted to $0.28. "Fiscal 2001 was another solid year for Wescam. The company delivered strong bottom line performance and continued to execute To run a program, which causes the computer to carry out its instructions. See executable code, instruction and EXE file. execute - execution its growth strategy," said Mark Chamberlain Mark Valentine Chamberlain (born 19 November 1961 in Stoke-on-Trent, England) is an English former footballer who played for Port Vale, Stoke City, Sheffield Wednesday, Portsmouth, Brighton & Hove Albion and Exeter City. External links
Adjective innovative technologies, such as digital wireless transmission to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. the significant opportunities in its markets. In addition, the company expanded its sales and marketing structure to focus on growing sales in the international Government market," he added. In the Commercial Systems division, the Class B airspace restrictions Special restrictive measures applied to segments of airspace of defined dimensions. introduced after September September: see month. 11, and the significant slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in advertising revenue in the television broadcasting market are expected to continue to impact business in fiscal 2002. A decision regarding the status of the flight restrictions on enhanced Class B airspace is expected to be made on December December: see month. 19, 2001. In the interim, Wescam has refocused certain activities and investment from the Commercial Systems business to the Government Systems business. In the Government Systems division, since September 11, U.S. emergency funding has been announced and worldwide interest in acquiring surveillance equipment has increased dramatically. However, the timing and volume of orders and funding remains uncertain, as emergency funding has not reached Wescam customers yet and the U.S. 2002 Defense budget has not been approved. In addition, the appropriate balance of funding for equipment needed for future procurements and current operational requirements (programming) operational requirements - Qualitative and quantitative parameters that specify the desired capabilities of a system and serve as a basis for determining the operational effectiveness and suitability of a system prior to deployment. is yet to be determined. "Given these timing issues, the company is not providing guidance for fiscal 2002 at this time. We continue to determine the impact of these events on the company and will provide guidance as soon as we are confident there is a better level of clarity Clarity is the property of being clear or transparent. Clarity can refer to one's ability to clearly visualize an object or concept, as in thought, understanding, and the "mind's eye", as well as the traditional notion of visual perception, that is, with the in our markets," Mr. Chamberlain Chamberlain may refer to:
"The company also continues to investigate potential acquisitions to complement its existing suite of technologies, particularly on the Government side of the business. Wescam is currently at the preliminary investigation stages with a variety of U.S.-based private companies," Mr. Chamberlain added. In line with historical trends, Wescam's first quarter is typically the weakest quarter of the year. The company's results vary from quarter to quarter and year over year due to seasonality in the Commercial Systems business, timing of Government contract awards and the timing of revenue within specific contracts. Operational Highlights During the fourth quarter, Wescam was awarded a C$20 million contract from Public Works and Government Services Canada Public Works and Government Services Canada, also referred to as Department of Public Works and Government Services, is the department of the government of Canada with responsibility for the government's internal servicing and administration. to outfit OUTFIT. An allowance made by the government of the United States to a minister plenipotentiary, or charge des affaires, on going from the United States to any foreign country. 2. the 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. Navy's HALIFAX Halifax, city, Canada Halifax, city (1991 pop. 114,455), provincial capital, S central N.S., Canada, on the Atlantic Ocean. It is the largest city in the Maritime Provinces and is one of Canada's principal ice-free Atlantic ports. and IROQUOIS Iroquois Any of the North American Indian tribes speaking a language of the Iroquoian family and living at the time of European contact in a continuous territory around Lakes Ontario, Huron, and Erie. class fleets with its shipboard ship·board n. 1. The condition of being aboard a ship: on shipboard. 2. Archaic The side of a ship. adj. Wescam(TM) 14 electro-optic Refers to the effects electricity has on optical materials such as a change in refraction or birefringence. The term was coined before "optoelectronic," but both terms are often used synonymously. See refraction, birefringent, photonics, optoelectronic and integrated optics. surveillance equipment. Wescam will deliver imaging systems to equip e·quip tr.v. e·quipped, e·quip·ping, e·quips 1. a. To supply with necessities such as tools or provisions. b. 17 vessels Vessels are a post-rock band from Leeds, UK. Vessels were born from the ashes of A Day Left in September 2005. In 2006 they self-released a 5 track eponymous ep, and played many gigs including the unsigned stage at Leeds Festival. over a two-year period, starting in 2002, as well as provide spares and support to the Canadian Navy. This contract represents the company's largest foray into Verb 1. foray into - enter someone else's territory and take spoils; "The pirates raided the coastal villages regularly" raid encroach upon, intrude on, obtrude upon, invade - to intrude upon, infringe, encroach on, violate; "This new colleague invades my the shipboard visual information systems market to-date. Following recent world events and the USS USS abbr. 1. United States Senate 2. United States ship USS abbr (= United States Ship) → Namensteil von Schiffen der Kriegsmarine Cole incident last year, demand continues to grow in the ship market for integrated visual information systems for force protection, including mine detection, intelligence gathering, port and harbour surveillance and targeting. As the new entrant en·trant n. One that enters, especially one that enters a competition. [French, from present participle of entrer, to enter, from Old French; see enter. in this market space, Wescam is well positioned to offer customers some of the most advanced networked visual information systems available today, including the company's handheld handheld: see personal digital assistant. digital video transmission system, WISARD Wis´ard n. 1. See Wizard. . Financial Highlights Revenue in the Government Systems division grew to $ 124.4 million in fiscal 2001 versus $119.6 million last year. The Commercial Systems division revenue rose slightly to $ 42.0 million in fiscal 2001 from $ 41.4 million in the previous year. The slower sales in electronic news gathering and airborne airborne /air·borne/ (ar´born) suspended in, transported by, or spread by air. airborne, adj carried through the air. In health care settings, viruses or bacteria may become airborne, e.g. law enforcement as well as the impact of the FAA flight ban were offset by higher revenue from broadcast sports coverage. Revenue in the Government Systems division increased 37 percent to $41.4 million in the fourth quarter of fiscal 2001, from $30.3 million in the prior year. Despite FAA flight restrictions following the terrorist attacks of September 11, the Commercial Systems division's revenue was $13.9 million in the fourth quarter, versus $13.7 million during the fourth quarter last year. 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 (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.
Wescam's 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. of long-term orders was $102.8 million at the end of fiscal 2001 versus $133.9 million at the end of fiscal 2000. Backlog declined due to a high level of deliveries for long-term, multi-unit programs in the fourth quarter and the lack of large program awards in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. during fiscal 2001, primarily due to the U.S. Defense Review, which was finalized See finalization. on September 30, 2001. Wescam is a world leader in the design and manufacture of wireless visual information systems, providing real time images as information for a variety of government and commercial customers around the globe. Wescam captures images from moving platforms that range from aircraft, helicopters, airships and the Space Shuttle space shuttle, reusable U.S. space vehicle. Developed by the National Aeronautics and Space Administration (NASA), it consists of a winged orbiter, two solid-rocket boosters, and an external tank. to racing cars This article is about the Welsh pop band. For auto racing, see Racing cars. Racing Cars is a Welsh pop band, formed in the Rhondda Valley, South Wales in 1973. , tracks, boats and cranes, and transmits those images via wireless communication link to the end user. Certain information in this press release may contain 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. . This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements due to factors such as customer demand and timing of buying decisions, product mix, competitive products and pricing pressures. In addition, uncertainties and difficulties in domestic and foreign financial markets and economies could adversely affect demand from customers. A major decline in the capital markets generally may negatively impact our ability to make future strategic acquisitions, raise capital or issue debt. These factors, as well as general economic and political conditions, may in turn have a material adverse effect on the Company's actual results. The Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements. Additional information identifying risks and uncertainties is contained in the Company's filings with the Ontario Securities Commission The Ontario Securities Commission (OSC) is a regulatory agency which administers and enforces securities legislation in the Canadian province of Ontario. The OSC is an Ontario Crown corporation which reports to the Ontario legislature through the Minister of Finance. .
WESCAM INC.
CONSOLIDATED BALANCE SHEETS
AS AT OCTOBER 31
[in thousands of dollars]
2001 2000
---------------------------------------------------------------
ASSETS
Current Assets
Cash $ 534 $ 3,299
Accounts receivable 55,305 46,597
Inventories 38,873 32,195
Prepaid expenses 1,444 2,226
Future income taxes 1,971 1,889
---------------------------------------------------------------
98,127 86,206
---------------------------------------------------------------
Capital Assets, net 30,110 33,546
---------------------------------------------------------------
Other Assets
Deferred product
development costs, net 2,691 3,644
Goodwill 13,729 11,067
---------------------------------------------------------------
16,420 14,711
---------------------------------------------------------------
$ 144,657 $ 134,463
---------------------------------------------------------------
---------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Bank indebtedness $ 10,628 $ -
Accounts payable and
accrued liabilities 33,770 30,384
Customer deposits 3,169 11,746
Deferred revenue 2,927 6,325
Income taxes payable 3,793 212
Mortgage payable - 10,700
Current portion of
long-term debt 5,200 3,000
---------------------------------------------------------------
59,487 62,367
---------------------------------------------------------------
Future income taxes 2,593 3,682
---------------------------------------------------------------
Long-term Debt 13,698 9,646
---------------------------------------------------------------
Shareholders' Equity
Share capital 45,249 44,911
Retained earnings 23,430 13,857
---------------------------------------------------------------
68,679 58,768
---------------------------------------------------------------
$ 144,457 $ 134,463
---------------------------------------------------------------
---------------------------------------------------------------
WESCAM INC.
CONSOLIDATED STATEMENTS OF EARNINGS
AND RETAINED EARNINGS
(in thousands of dollars, except per share amount)
Fiscal Quarter Ended Four Fiscal Quarters Ended
October 31 October 31 October 31 October 31
2001 2000 2001 2000
--------------------------------------------------------------------
(Unaudited)
Revenue $ 55,397 $ 44,020 $ 166,443 $ 161,034
Cost of sales 32,799 26,818 103,147 104,086
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Gross profit 22,598 17,202 63,296 56,948
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Expenses
Research and
development 3,132 2,971 11,620 12,909
Administrative 4,988 4,076 15,198 13,399
Selling 3,762 1,936 11,370 7,976
Depreciation 2,007 1,525 6,717 4,924
--------------------------------------------------------------------
13,889 10,508 44,905 39,208
--------------------------------------------------------------------
Operating income 8,709 6,694 18,391 17,740
--------------------------------------------------------------------
Other income
(expense)
Gain (loss) on
sale of assets (185) - 101 (132)
Interest and
finance charges (360) (208) (1,414) (1,248)
--------------------------------------------------------------------
Earnings before
income taxes and
goodwill charges 8,164 6,486 17,078 16,360
--------------------------------------------------------------------
Income taxes
Current 3,893 1,618 7,434 4,462
Future (943) 1,609 (1,298) 2,590
--------------------------------------------------------------------
Income taxes 2,950 3,227 6,136 7,052
--------------------------------------------------------------------
Earnings before
goodwill charges 5,214 3,259 10,942 9,308
Goodwill charges,
net of tax 384 280 1,369 1,118
--------------------------------------------------------------------
Net earnings 4,830 2,979 9,573 8,190
Interest on
equity component
of convertible
debenture - - - 272
--------------------------------------------------------------------
Net earnings
applicable to
common shares 4,830 2,979 9,573 7,918
Retained
earnings,
beginning
of period 18,600 10,878 13,857 5,939
--------------------------------------------------------------------
Retained
earnings, end
of period $ 23,430 $ 13,857 $ 23,430 $ 13,857
--------------------------------------------------------------------
--------------------------------------------------------------------
Per Common Share:
Earnings before
goodwill charges
- basic $ 0.32 $ 0.20 $ 0.68 $ 0.60
- fully
diluted $ 0.31 $ 0.19 $ 0.65 $ 0.57
Net earnings
- basic $ 0.30 $ 0.19 $ 0.60 $ 0.53
- fully
diluted $ 0.28 $ 0.18 $ 0.57 $ 0.50
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--------------------------------------------------------------------
Weighted average
number of
common shares
outstanding 16,080,867 15,993,554 16,056,956 15,055,396
--------------------------------------------------------------------
--------------------------------------------------------------------
Fully diluted
weighted average
number of
common shares
outstanding 17,127,435 17,342,845 17,103,524 16,404,687
--------------------------------------------------------------------
--------------------------------------------------------------------
Earnings before
interest, taxes,
depreciation and
amortization
- EBITDA $ 10,941 $ 8,561 $ 26,162 $ 23,786
--------------------------------------------------------------------
--------------------------------------------------------------------
WESCAM INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands of dollars)
Fiscal Quarter Ended Four Fiscal Quarters Ended
October 31 October 31 October 31 October 31
----------------------- -----------------------
(Unaudited)
Cash provided by (used in):
Operations:
Net earnings $ 4,830 $ 2,979 $ 9,573 $ 8,190
Items not
involving cash
Depreciation 2,009 1,525 6,719 4,924
Goodwill
charges 437 335 1,586 1,337
Amortization
of deferred
development
costs 410 342 953 1,254
Foreign
exchange
(gain) loss 102 (131) 32 (133)
Future income
taxes (943) 1,609 (1,298) 2,590
(Gain) loss on
sale of
investment - - (520) -
(Gain) loss on
sale of assets - - - 132
(Gain) loss on
sale of
property and
equipment 116 - 351 (27)
Changes in
non-cash
operating
working capital 515 (8,525) (7,271) (7,844)
--------------------------------------------------------------------
7,476 (1,866) 10,125 10,423
--------------------------------------------------------------------
Financing:
Proceeds from
(repayment of) (7,966) (1,702) 10,628 (7,461)
revolving
line of credit
Customer
deposits (3,448) (1,160) (8,577) 5,544
Deferred
revenue 732 6,325 (3,398) 1,184
Interest on
equity component
of convertible
debenture - - - (272)
Proceeds from
long-term debt 6,000 6,078 8,660 6,078
Payment of
mortgage payable 10,700 (10,700) 10,700
Principal
payments on
long-term debt (500) (364) (2,400) (1,862)
Issuance of
common shares,
net 12 14 207 170
--------------------------------------------------------------------
(5,170) 19,891 (5,580) 14,081
--------------------------------------------------------------------
Investments:
Acquisition of
subsidiaries (340) - (7,601) -
Proceeds from
sale of
investment - - 308 -
Expenditures on
capital assets (1,955) (14,587) (18,693) (20,205)
Proceeds from
sale of assets - 1,457 - 1,479
Payment related
to sale of assets - (2,534) - (4,132)
Proceeds from
sale of property
and equipment 196 - 18,708 169
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(2,099) (15,664) (7,278) (22,689)
--------------------------------------------------------------------
Foreign exchange
gain (loss) on
cash held in
foreign currency (102) 131 (32) 133
--------------------------------------------------------------------
Increase
(decrease) in
cash position 105 2,492 (2,765) 1,948
Cash, beginning
of period 429 807 3,299 1,351
--------------------------------------------------------------------
Cash, end
of period $ 534 $ 3,299 $ 534 $ 3,299
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