Welcome!

Microsoft Cloud Authors: Pat Romanski, Lori MacVittie, Andreas Grabner, Jim Kaskade, John Basso

News Feed Item

Avcorp announces 2012 Third Quarter Results

VANCOUVER, Nov. 13, 2012 /PRNewswire/ - Avcorp Industries Inc. (TSX: AVP) (the "Company" or "Avcorp") today announced its financial results for the quarter ended September 30, 2012.

During the quarter ended September 30, 2012, the Company recorded a loss from operations of $1,446,000 on $19,324,000 revenue, as compared to a $186,000 operating loss on $20,383,000 revenue for the same quarter in the preceding year; and a net loss for the current quarter of $2,729,000 as compared to a net loss of $150,000 for the quarter ended September 30, 2011.

Current quarter revenues have decreased from the same quarter in the preceding year primarily as a result of the wind-down of Cessna Aircraft Company (Cessna) programs. During the third quarter 2012, the Company renewed its long-term agreement with the Boeing Commercial Airplane Group (Boeing CA) which is forecasted to provide in excess of $83 million revenue over the next five years. Start-up and commencement of production deliveries for BAE Systems (Operations) Limited (BAE) F35 program has also contributed to an overall $110 million increase in order backlog during the current quarter.

Earnings before interest, taxes, depreciation and amortization (EBITDA) was negative $1,205,000 for the quarter ended September 30, 2012 compared to a positive EBITDA of $1,455,000 for the quarter ended September 30, 2011.  The decline in EBITDA was primarily as a result of reduced revenues and costs associated with customer contract terminations. During the quarter-ended September 30, 2012, the Company incurred $825,000 (September 30, 2011: $136,000) in costs associated with customer contract terminations.

On September 27, 2012, the Company secured a three year $12,000,000 operating line of credit.  Concurrently, the Company repaid its $6,000,000 term loan.  Also during the quarter the Company increased its share capital by $2,798,000.

Cash flows from operating activities during the quarter ended September 30, 2012 provided $350,000 of cash as compared to utilizing $766,000 of cash during the quarter ended September 30, 2011.  The Company has a working capital surplus of $10,130,000 as at September 30, 2012 which has decreased from the December 31, 2011 $14,663,000 surplus, as a result of utilizing cash on hand to repay long-term debt.  The Company's accumulated deficit as at September 30, 2012 was $78,581,000 (December 31, 2011: $76,016,000).

About Avcorp

Avcorp designs and builds major airframe structures for some of the world's leading aircraft companies, including BAE Systems, Boeing, and Bombardier. With more than 50 years of experience, over 400 skilled employees and 354,000 square feet of facilities in Delta BC and Burlington ON, Avcorp offers integrated composite and metallic aircraft structures to aircraft manufacturers, a distinct advantage in the pursuit of contracts for new aircraft designs, which require lower‐cost, light weight, strong, reliable structures. Our Burlington location also offers composite repairs for commercial aircraft. Avcorp is a Canadian public company traded on the Toronto Stock Exchange (TSX: AVP).

(signed)

MARK VAN ROOIJ
PRESIDENT and CHIEF EXECUTIVE OFFICER

Forward-Looking Statements

This management discussion and analysis should be read in conjunction with the Company's audited financial statements.  Certain statements in this report and other oral and written statements made by the Company from time to time are forward-looking statements, including those that discuss strategies, goals, outlook or other non-historical matters; or projected revenues, income, returns or other financial measures.  These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those contained in the statements, including the following:  (a) the ability of the Company to renegotiate its debt agreements under which it is in default; (b) the extent to which the Company is able to achieve savings from its restructuring plans; (c) uncertainty in estimating the amount and timing of restructuring charges and related costs; (d) changes in worldwide economic and political conditions that impact interest and foreign exchange rates; (e) the occurrence of work stoppages and strikes at key facilities of the Company or the Company's customers or suppliers; (f) government funding and program approvals affecting products being developed or sold under government programs; (g) cost and delivery performance under various program and development contracts; (h) the adequacy of cost estimates for various customer care programs including servicing warranties; (i) the ability to control costs and successful implementation of various cost reduction programs; (j) the timing of certifications of new aircraft products; (k) the occurrence of further downturns in customer markets to which the Company products are sold or supplied or where the Company offers financing; (l) changes in aircraft delivery schedules or cancellation of orders; (m) the Company's ability to offset, through cost reductions, raw material price increases and pricing pressure brought by original equipment manufacturer customers; (n) the availability and cost of insurance; (o) the Company's ability to maintain portfolio credit quality; (p) the Company's access to debt financing at competitive rates; and (q) uncertainty in estimating contingent liabilities and establishing reserves tailored to address such contingencies.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(unaudited, prepared in accordance with IFRS, expressed in thousands of Canadian dollars)

  September 30, 2012 December 31, 2011
ASSETS    
Current assets    
Cash $   1,403 $   3,778
Accounts receivable 8,312 12,160
Inventories 18,739 19,418
Prepayments and other assets 994 1,396
  29,448 36,752
Non-current assets    
Prepaid rent 146 146
Development costs 4,736 5,540
Property, plant and equipment 10,737 12,523
Total assets 45,067 54,961
     
LIABILITIES AND EQUITY    
Current liabilities    
Accounts payable and accrued liabilities 8,391 10,694
Current portion of long-term debt 470 1,505
Preferred shares 10,457 9,890
  19,318 22,089
Non-current liabilities    
Deferred gain 275 311
Lease inducement 592 666
Deferred program revenues 19,054 18,671
Long-term debt 4,409 12,027
Warranty provisions 85 85
  43,733 53,849
Equity    
Capital stock 76,217 73,251
Equity component of convertible loan 206 453
Contributed surplus 3,492 3,424
Deficit (78,581) (76,016)
  1,334 1,112
Total liabilities and equity 45,067 54,961

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(unaudited, prepared in accordance with IFRS, expressed in thousands of Canadian dollars, except number of shares and per share amounts)

  Three months ended Nine months ended
FOR THE PERIOD ENDED SEPTEMBER 30 2012 2011 2012 2011
               
Revenues $  19,324 $  20,383 $  69,522 $ 61,791
               
Cost of sales 16,936 17,686 58,151 54,526
               
Gross profit 2,388 2,697 11,371 7,265
               
Administrative and general expenses 3,715 2,729 11,190 8,237
Office equipment depreciation 119 160 360 495
Other (gains) and losses - net - (6) (4) (12)
               
Operating Income (loss) (1,446) (186) (175) (1,455)
               
Foreign exchange (gain) loss 300 (706) 221 (571)
Finance costs 586 670 1,772 1,861
Loss on repayment of debt 397 - 397 -
               
Income (loss) before income tax (2,729) (150) (2,565) (2,745)
               
Income tax expense - - - -
               
Income (loss) and total comprehensive income (loss) for the period (2,729) (150) (2,565) (2,745)
               
Earnings (loss) per share:        
Basic earnings (loss) per common share (0.01) 0.00 (0.01) (0.01)
Diluted earnings (loss) per common share (0.01) 0.00 (0.01) (0.01)
               
Basic weighted average number of shares outstanding (000's) 205,851 198,750 204,134 196,599
               
Diluted weighted average number of shares outstanding (000's) 205,851 199,930 204,321 202,684

CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, prepared in accordance with IFRS, expressed in thousands of Canadian dollars)

  Three months ended Nine months ended
FOR THE PERIOD ENDED SEPTEMBER 30 2012 2011 2012 2011
Cash flows from operating activities        
Profit (loss) before tax $   (2,729) $ (150) $   (2,565) $ (2,745)
   Adjustment for items not affecting cash:        
     Accretion on convertible loan 23 21 67 63
     Accrued interest and government royalties 330 466 1,007 1,232
     Amortization and depreciation 724 844 2,280 2,530
     Deferred tooling revenue amortization and reclassification to revenue (2,292) (214) (8,710) (640)
     Development cost amortization and reclassification to cost of sales 662 91 1,698 281
     Fair value of warrants amortization 44 44 132 44
     Loss on repayment of debt 397 - 397 -
     Preferred share dividends accrued 189 189 567 567
     Provision for loss-making contracts (108) (300) (189) (591)
     Provision for obsolete inventory (84) (123) (67) (173)
     Stock based compensation 25 25 69 115
     Other items (47) 61 (105) (47)
  (2,866) 954 (5,419) 636
Changes in non-cash working capital        
    Accounts receivable 2,869 (1,396) 5,173 (3,136)
    Inventories (272) (1,065) 935 (3,056)
    Prepayments and other assets 471 - 396 518
    Accounts payable and accrued liabilities 148 818 (2,316) 451
    Other Items - (77) - (47)
Net cash from operating activities 350 (766) (1,231) (4,634)
         
Cash flows from investing activities        
Purchase of equipment (53) (364) (354) (691)
Payments relating to development costs and tooling (280) (99) (894) (961)
Net cash from investing activities (333) (463) (1,248) (1,652)
         
Cash flows from financing activities        
(Decrease) increase in bank indebtedness - (8,054) - (7,515)
Payment of interest (552) (342) (1,048) (881)
Proceeds from issuance of common shares 973 - 973 -
Proceeds from customer funding of program introduction 1,680 3,837 7,769 9,317
Proceeds from current and long-term debt - 6,000 - 6,000
Repayment of current and long-term debt (7,097) (212) (7,590) (635)
Net cash from financing activities (4,996) 1,229 104 6,286
Net increase (decrease) in cash (4,979) - (2,375) -
Cash - Beginning of period 6,382 - 3,778 -
Cash - End of period 1,403 - 1,403 -

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(unaudited, prepared in accordance with IFRS, expressed in thousands of Canadian dollars, except number of shares)

  Share capital Equity
component
convertible
loan
Contributed
surplus
Deficit Total
equity
  Shares Amount
Balance December 31, 2010 195,505,323 $ 72,927 $   453 $  2,662 $ (73,561) $  2,481
Issue of common shares 6,488,790 324 - - - 324
Stock based compensation expense - - - 115 - 115
Fair value warrants - - - 42 - 42
Loss for the period - - - - (2,745) (2,745)
Balance September 30, 2011 201,994,113 73,251 453 2,819 (76,306) 217
Balance December 31, 2011 201,994,113 73,251 453 3,424 (76,016) 1,112
Issue of common shares 52,903,959 2,966 - - - 2,966
Loan conversion - - (247) - - (247)
Stock-based compensation expense - - - 68 - 68
Loss for the period - - - - (2,565) (2,565)
Balance September 30, 2012 254,898,072 76,217 206 3,492 (78,581) 1,334


 

 

SOURCE Avcorp Industries Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
According to Forrester Research, every business will become either a digital predator or digital prey by 2020. To avoid demise, organizations must rapidly create new sources of value in their end-to-end customer experiences. True digital predators also must break down information and process silos and extend digital transformation initiatives to empower employees with the digital resources needed to win, serve, and retain customers.
Amazon has gradually rolled out parts of its IoT offerings in the last year, but these are just the tip of the iceberg. In addition to optimizing their back-end AWS offerings, Amazon is laying the ground work to be a major force in IoT – especially in the connected home and office. Amazon is extending its reach by building on its dominant Cloud IoT platform, its Dash Button strategy, recently announced Replenishment Services, the Echo/Alexa voice recognition control platform, the 6-7 strategic...
We're entering the post-smartphone era, where wearable gadgets from watches and fitness bands to glasses and health aids will power the next technological revolution. With mass adoption of wearable devices comes a new data ecosystem that must be protected. Wearables open new pathways that facilitate the tracking, sharing and storing of consumers’ personal health, location and daily activity data. Consumers have some idea of the data these devices capture, but most don’t realize how revealing and...
IoT solutions exploit operational data generated by Internet-connected smart “things” for the purpose of gaining operational insight and producing “better outcomes” (for example, create new business models, eliminate unscheduled maintenance, etc.). The explosive proliferation of IoT solutions will result in an exponential growth in the volume of IoT data, precipitating significant Information Governance issues: who owns the IoT data, what are the rights/duties of IoT solutions adopters towards t...
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
Complete Internet of Things (IoT) embedded device security is not just about the device but involves the entire product’s identity, data and control integrity, and services traversing the cloud. A device can no longer be looked at as an island; it is a part of a system. In fact, given the cross-domain interactions enabled by IoT it could be a part of many systems. Also, depending on where the device is deployed, for example, in the office building versus a factory floor or oil field, security ha...
An IoT product’s log files speak volumes about what’s happening with your products in the field, pinpointing current and potential issues, and enabling you to predict failures and save millions of dollars in inventory. But until recently, no one knew how to listen. In his session at @ThingsExpo, Dan Gettens, Chief Research Officer at OnProcess, discussed recent research by Massachusetts Institute of Technology and OnProcess Technology, where MIT created a new, breakthrough analytics model for s...
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, discussed how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team at D...
"We're a cybersecurity firm that specializes in engineering security solutions both at the software and hardware level. Security cannot be an after-the-fact afterthought, which is what it's become," stated Richard Blech, Chief Executive Officer at Secure Channels, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
In this strange new world where more and more power is drawn from business technology, companies are effectively straddling two paths on the road to innovation and transformation into digital enterprises. The first path is the heritage trail – with “legacy” technology forming the background. Here, extant technologies are transformed by core IT teams to provide more API-driven approaches. Legacy systems can restrict companies that are transitioning into digital enterprises. To truly become a lead...
Video experiences should be unique and exciting! But that doesn’t mean you need to patch all the pieces yourself. Users demand rich and engaging experiences and new ways to connect with you. But creating robust video applications at scale can be complicated, time-consuming and expensive. In his session at @ThingsExpo, Zohar Babin, Vice President of Platform, Ecosystem and Community at Kaltura, discussed how VPaaS enables you to move fast, creating scalable video experiences that reach your aud...
"Once customers get a year into their IoT deployments, they start to realize that they may have been shortsighted in the ways they built out their deployment and the key thing I see a lot of people looking at is - how can I take equipment data, pull it back in an IoT solution and show it in a dashboard," stated Dave McCarthy, Director of Products at Bsquare Corporation, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
What happens when the different parts of a vehicle become smarter than the vehicle itself? As we move toward the era of smart everything, hundreds of entities in a vehicle that communicate with each other, the vehicle and external systems create a need for identity orchestration so that all entities work as a conglomerate. Much like an orchestra without a conductor, without the ability to secure, control, and connect the link between a vehicle’s head unit, devices, and systems and to manage the ...
IoT is rapidly changing the way enterprises are using data to improve business decision-making. In order to derive business value, organizations must unlock insights from the data gathered and then act on these. In their session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, and Peter Shashkin, Head of Development Department at EastBanc Technologies, discussed how one organization leveraged IoT, cloud technology and data analysis to improve customer experiences and effici...
Everyone knows that truly innovative companies learn as they go along, pushing boundaries in response to market changes and demands. What's more of a mystery is how to balance innovation on a fresh platform built from scratch with the legacy tech stack, product suite and customers that continue to serve as the business' foundation. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, discussed why and how ReadyTalk diverted from healthy revenue and mor...
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
The Internet of Things (IoT) promises to simplify and streamline our lives by automating routine tasks that distract us from our goals. This promise is based on the ubiquitous deployment of smart, connected devices that link everything from industrial control systems to automobiles to refrigerators. Unfortunately, comparatively few of the devices currently deployed have been developed with an eye toward security, and as the DDoS attacks of late October 2016 have demonstrated, this oversight can ...
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...
As data explodes in quantity, importance and from new sources, the need for managing and protecting data residing across physical, virtual, and cloud environments grow with it. Managing data includes protecting it, indexing and classifying it for true, long-term management, compliance and E-Discovery. Commvault can ensure this with a single pane of glass solution – whether in a private cloud, a Service Provider delivered public cloud or a hybrid cloud environment – across the heterogeneous enter...
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...