Avcorp announces record fiscal 1998 results
Avcorp Industries Inc AVP
Shares issued 13,873,623 Nov 27 close $3.95
Mon 30 Nov 98 News Release
Mr. Peter Jeffrey reports
Avcorp Industries Inc. (AVP on the Montreal and Toronto Stock Exchanges)
shows record sales and earnings for the year ended Sept. 30, 1998 as
follows:
STATEMENT OF EARNINGS
Three months ended Sept. 30
(in thousands of dollars)
1998 1997
Sales $ 18,324 $ 12,445
Cost of sales and
expenses (17,653) (12,019)
Interest (222) 52
-------- --------
Operating earnings 449 478
Non-recurring items - -
-------- --------
Net earnings $ 449 $ 478
======== ========
Net earnings
per share 3 cents 3 cents
Recurring earnings
per share 3 cents 3 cents
STATEMENT OF EARNINGS
Year ended September 30
(in thousands of dollars)
1998 1997
Sales $ 66,903 $ 45,217
Cost of sales and
expenses (63,572) (43,983)
Interest (521) 303
-------- --------
Operating earnings 2,810 1,537
Non-recurring items - 590
-------- --------
Net earnings $ 2,810 $ 2,127
======== ========
Net earnings
per share 20 cents 16 cents
Recurring earnings
per share 20 cents 11 cents
Sales for the year ended Sept. 30, 1998 were $66,903,000, an increase of 48
per cent over the same period last year. Fourth quarter sales of
$18,324,000 were an increase of 47 per cent over the same period last year
and a 4 per cent increase over the previous quarter. These increases
continue to be the result of the ramp up of existing contracts from both
the regional jet and commercial jet segments of the aerospace industry.
The company's operating earnings for the year increased 83 per cent to
$2,810,000 compared to $1,537,000 last year. The company's net earnings for
the year were $2,810,000 compared to $2,127,000 for the same period last
year, an increase of 32 per cent. Last year's net earnings included a
recovery from discontinued operations of $590,000.
Earnings before interest, taxes and depreciation (EBITDA) for the year
improved by 76 per cent to $5,553,000 from $3,164,000 last year and EBITDA
from continuing operations improved by 116 per cent. This demonstrates the
strong operating results and the high level of investment being made in the
company.
Fourth quarter net earnings were slightly lower than last year. Costs
associated with the move and additional environmental remediation costs at
the old Richmond, B.C. facility reduced net earnings in the fourth quarter
by approximately $500,000. No further expenses are anticipated on either
the move or the environmental remediation at the Richmond, B.C. site.
Fiscal 1998 was a year of record sales and net earnings growth during a
period of dramatic change for the company. Other significant achievements
during the year included:
Moving the company's largest division from its leased buildings in
Richmond, B.C. to its new purpose-built owned 300,000 sq. ft. facility in
Delta, B.C.;
Investing $25-million in new plant and equipment;
Adding over 175 new employees to support the high level of growth;
Investing $9-million in the design and development of the Canadair Regional
Jet 700 Series ("RJ700") tail components, which will go into commercial
production in fiscal year 2000. This represents the company's single
largest contract with estimated revenues in excess of $170-million; and
Acquiring and cancelling 829,401, or approximately 6 per cent, of the
company's shares at an average cost of $3.53, which, management believes,
will benefit both the company and shareholders.
During the year, the company raised over $27-million of long-term debt to
finance the growth of the company and this is reflected in higher interest
costs in 1998 compared to 1997. Approximately $7.5-million of the long term
debt is in the form of interest bearing convertible debentures which can be
converted into equity under certain conditions at prices ranging from $4.00
to $4.65.
The outlook for the company remains strong as the sales order backlog is
over $300-million and continued sales and earnings growth is expected in
fiscal 1999. Fiscal year 2000 will see further growth with the introduction
of the RJ700 which should contribute $16-million to revenues on an annual
basis.
(c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com |
