Welcome!

Microsoft Cloud Authors: Pat Romanski, Elizabeth White, Liz McMillan, Mihai Corbuleac, David Bermingham

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
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
SYS-CON Events announced today that Bsquare has been named “Silver Sponsor” of SYS-CON's @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. For more than two decades, Bsquare has helped its customers extract business value from a broad array of physical assets by making them intelligent, connecting them, and using the data they generate to optimize business processes.
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, wh...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...
Connected devices and the industrial internet are growing exponentially every year with Cisco expecting 50 billion devices to be in operation by 2020. In this period of growth, location-based insights are becoming invaluable to many businesses as they adopt new connected technologies. Knowing when and where these devices connect from is critical for a number of scenarios in supply chain management, disaster management, emergency response, M2M, location marketing and more. In his session at @Th...
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his Day 2 Keynote at @ThingsExpo, Henrik Kenani Dahlgren, Portfolio Marketing Manager at Ericsson, discussed how to plan to cooperate, partner, and form lasting all-star teams to change t...
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, explored the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences between wh...
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, 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 opportuni...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
There is little doubt that Big Data solutions will have an increasing role in the Enterprise IT mainstream over time. Big Data at Cloud Expo - to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA - has announced its Call for Papers is open. Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is...
In his general session at 18th Cloud Expo, Lee Atchison, Principal Cloud Architect and Advocate at New Relic, discussed cloud as a ‘better data center’ and how it adds new capacity (faster) and improves application availability (redundancy). The cloud is a ‘Dynamic Tool for Dynamic Apps’ and resource allocation is an integral part of your application architecture, so use only the resources you need and allocate /de-allocate resources on the fly.
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life sett...
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, discussed how research has demonstrated the value of Machine Learning in delivering next generation analytics to imp...
There are several IoTs: the Industrial Internet, Consumer Wearables, Wearables and Healthcare, Supply Chains, and the movement toward Smart Grids, Cities, Regions, and Nations. There are competing communications standards every step of the way, a bewildering array of sensors and devices, and an entire world of competing data analytics platforms. To some this appears to be chaos. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, Bradley Holt, Developer Advocate a...
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
SYS-CON Events announced today that ReadyTalk, a leading provider of online conferencing and webinar services, has been named Vendor Presentation Sponsor at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. ReadyTalk delivers audio and web conferencing services that inspire collaboration and enable the Future of Work for today’s increasingly digital and mobile workforce. By combining intuitive, innovative tec...
Amazon has gradually rolled out parts of its IoT offerings, but these are just the tip of the iceberg. In addition to optimizing their backend AWS offerings, Amazon is laying the ground work to be a major force in IoT - especially in the connected home and office. In his session at @ThingsExpo, Chris Kocher, founder and managing director of Grey Heron, explained how Amazon is extending its reach to become a major force in IoT by building on its dominant cloud IoT platform, its Dash Button strat...
industrial company for a multi-year contract initially valued at over $4.0 million. In addition to DataV software, Bsquare will also provide comprehensive systems integration, support and maintenance services. DataV leverages advanced data analytics, predictive reasoning, data-driven diagnostics, and automated orchestration of remediation actions in order to improve asset uptime while reducing service and warranty costs.
Vidyo, Inc., has joined the Alliance for Open Media. The Alliance for Open Media is a non-profit organization working to define and develop media technologies that address the need for an open standard for video compression and delivery over the web. As a member of the Alliance, Vidyo will collaborate with industry leaders in pursuit of an open and royalty-free AOMedia Video codec, AV1. Vidyo’s contributions to the organization will bring to bear its long history of expertise in codec technolo...