VANCOUVER, March 31 /PRNewswire-FirstCall/ - Avcorp (AVP on the Toronto
Stock Exchange) today announced its financial results for the year ended
December 31, 2007.
During the year ended December 31, 2007, the Company recorded a loss of
$1,719,000 on $110,283,000 revenue, as compared to a net income of $1,450,000
from $103,850,000 revenue for the preceding year. There was a 6% increase in
revenue over 2006; and the Company delivered 921 major structures to its
customers, a 15% increase over the 801 units which were delivered during 2006.
The strengthening of the Canadian dollar as compared to the US dollar,
relative to the rates of exchange in effect during 2006, has reduced revenues
by $4,153,000 and negatively affected operating margins.
Cash flows from operating activities provided $3,071,000 of cash, as
compared to $5,006,000 during the previous year. The Company has a working
capital surplus of $4,417,000 as at December 31, 2007 (December 31, 2006:
$9,600,000) and an accumulated deficit of $53,204,000 at December 31, 2007
(December 31, 2006: $50,605,000).
The acquisition of Comtek Advanced Structures Ltd. on December 31, 2007
provides an estimated $37 million order backlog to the existing base of $441
million.
About Avcorp
Avcorp designs and builds major airframe structures for some of the
world’s leading aircraft companies, including Boeing, Bombardier, and Cessna.
With 50 years of experience, more than 750 skilled employees and 385,000
square feet of facilities 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. Avcorp is a Canadian public company
traded on the Toronto Stock Exchange (TSX:AVP). More information is available
at www.avcorp.com.
(signed) (signed)
MARK VAN ROOIJ PAUL KALIL
CHIEF EXECUTIVE OFFICER PRESIDENT
Forward-Looking Statements
This release should be read in conjunction with the Company’s unaudited
financial statements contained in the Company’s Annual Report and with the
quarterly financial statements and accompanying notes filed with Sedar
(www.sedar.com).
Certain statements in this release 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 extent to which
the Company is able to achieve savings from its restructuring plans; (b)
uncertainty in estimating the amount and timing of restructuring charges and
related costs; (c) changes in worldwide economic and political conditions that
impact interest and foreign exchange rates; (d) the occurrence of work
stoppages and strikes at key facilities of the Company or the Company’s
customers or suppliers; (e) government funding and program approvals affecting
products being developed or sold under government programs; (f) cost and
delivery performance under various program and development contracts; (g) the
adequacy of cost estimates for various customer care programs including
servicing warranties; (h) the ability to control costs and successful
implementation of various cost reduction programs; (i) the timing of
certifications of new aircraft products; (j) the occurrence of further
downturns in customer markets to which the Company products are sold or
supplied or where the Company offers financing; (k) changes in aircraft
delivery schedules or cancellation of orders; (l) the Company’s ability to
offset, through cost reductions, raw material price increases and pricing
pressure brought by original equipment manufacturer customers; (m) the
availability and cost of insurance; (n) the Company’s ability to maintain
portfolio credit quality; (o) the Company’s access to debt financing at
competitive rates; and (p) uncertainty in estimating contingent liabilities
and establishing reserves tailored to address such contingencies.
Consolidated Balance Sheets
For years ended December 31, 2007 and 2006
(in thousands of Canadian dollars)
2007 2006
$ $
Assets
Current assets
Accounts receivable 12,224 8,394
Inventories 17,801 19,421
Prepayments 2,401 1,611
Other assets 138 -
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32,564 29,426
Prepaid rent 481 1,500
Development costs 1,545 1,186
Property, plant and equipment 20,310 15,746
Investment 759 759
Warranty claim receivable 1,454 -
Intangible assets 2,620 -
Goodwill 571 -
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60,304 48,617
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Liabilities
Current liabilities
Bank indebtedness 11,279 5,564
Accounts payable and accrued liabilities 14,812 13,525
Current portion of long-term debt 2,056 737
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28,147 19,826
Deferred gain 501 548
Lease inducement 1,060 1,159
Deferred tooling revenues 2,676 3,434
Long-term debt 6,761 4,957
Warranty provision 1,454 -
Future income tax liability 1,186 -
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41,785 29,924
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Shareholders’ Equity
Capital stock 61,194 55,600
Preferred shares 7,672 11,454
Contributed surplus 2,857 2,244
Deficit (53,204) (50,605)
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18,519 18,693
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60,304 48,617
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Consolidated Statements of Operations and Comprehensive Income (Loss)
For years ended December 31, 2007 and 2006
(in thousands of Canadian dollars, except number of shares and
per share amounts)
2007 2006
$ $
————————-
Revenues 110,283 103,850
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Cost of sales and expenses
Cost of sales 98,442 89,561
Administrative and general expenses 9,562 7,665
Depreciation 3,395 3,138
Foreign exchange (gain) loss (1,321) 3
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110,078 100,367
————————-
Income from operations 205 3,483
Interest expense and financing charges (2,094) (2,033)
Unrealized derivative gain 170 -
————————-
————————-
Income (loss) before income taxes (1,719) 1,450
Income taxes - -
————————-
Income (loss) and comprehensive income (loss)
for the year (1,719) 1,450
————————-
————————-
Basic earnings (loss) per common share (0.06) 0.06
————————-
————————-
Basic weighted average number of shares
outstanding (000’s) 29,674 24,964
————————-
————————-
Diluted earnings (loss) per common share (0.06) 0.06
————————-
————————-
Diluted weighted average number of shares
outstanding (000’s) 29,674 25,872
————————-
————————-
Consolidated Statements of Deficit
For years ended December 31, 2007 and 2006
(in thousands of Canadian dollars)
2007 2006
$ $
———— ———–
Deficit - Beginning of year as previously
reported (50,605) (51,529)
Adoption of financial instruments standards 40 -
———— ———–
Deficit - Beginning of year as restated (50,565) (51,529)
Income (loss) for the year (1,719) 1,450
Preferred share dividends (920) (526)
———— ———–
Deficit - End of year (53,204) (50,605)
———— ———–
———— ———–
Consolidated Statements of Cash Flows
For years ended December 31, 2007 and 2006
(in thousands of Canadian dollars)
2007 2006
$ $
Cash flows from operating activities
Income (loss) for the year (1,719) 1,450
Items not affecting cash 4,790 3,556
————————-
3,071 5,006
Change in non-cash items related to operating
activities (1,323) (4,238)
————————-
1,748 768
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Cash flows from investing activities
Purchase of property, plant and equipment (5,020) (2,111)
Payments relating to development costs (744) (873)
Proceeds from sale of property, plant and
equipment 15 21
Acquisition of Comtek Advanced Structures Ltd. (2,073) -
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(7,822) (2,963)
Cash flows from financing activities
Net proceeds from bank indebtedness 4,790 (2,282)
Proceeds from current and long-term debt 858 490
Proceeds from sale and leaseback of property,
plant and equipment 1,903 -
Repayment of current and long-term debt (2,581) (7,263)
Issue of common shares 1,680 4,720
Issue of warrants 411 -
Issue of preferred shares - 7,635
Preferred share dividends (920) (526)
Share issue expense (67) (579)
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6,074 2,195
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Net change in cash and cash equivalents - -
Cash and cash equivalents - Beginning of year - -
————————-
Cash and cash equivalents - End of year - -
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————————-
Interest paid 1,244 1,377
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CONTACT: Sandi DiPrimo, Investor Relations Contact, (604) 587-4938
SOURCE Avcorp Industries Inc.