"OTTAWA, Jul 2, 2009 (Canada NewsWire via COMTEX News Network) --
Allen-Vanguard Corporation (TSX: VRS) ("Allen-Vanguard" or the "Company") of Ottawa, Canada today announced that it reached an agreement with its Lending Syndicate ("lenders") that defers to September 30, 2009 the US$4.8 million quarterly principal repayment otherwise due today under the existing credit agreement with the lenders dated December 29, 2008.
In conjunction, the Company reported on the status of discussions with an undisclosed U.S. investor with which it has been engaged on an exclusive basis since April regarding a going-private transaction. "This has been an extensive process," said David E. Luxton, President and CEO. "Discussions have advanced to the point where we may shortly conclude definitive terms, but should we not do so then we will resume discussions with other specific, interested parties with a view to reducing our long-term debt by a minimum of $US50 million by September 30, 2009, as previously stated."
So we can assume that debt reduction is at the very least 50M, translating into roughly .42 for each common share.
News release via Canada NewsWire, Ottawa 613-563-4465
Attention Business/Financial Editors:
Allen-Vanguard announces financial results for second quarter of fiscal
2009
OTTAWA, May 14 /CNW Telbec/ - Allen-Vanguard Corporation (the "Company"
or "Allen-Vanguard") (TSX: VRS) of Ottawa, Canada reported today its financial
results for the second quarter of fiscal 2009 ("Q2 2009"), which ended March
31, 2009. All figures are in Canadian dollars, except where noted.
Summary of Q2 results
Revenue was $56.6 million in Q2 2009, compared to revenue of $91.3
million in Q2 2008. EBITDA(1) was $8.6 million in Q2 2009, versus EBITDA of
$21.6 million in Q2 2008. Net loss was $19.6 million, or $(0.18) cents per
share, compared to a net loss of $34.2 million, or $(0.32) per share in Q2
2008. The loss in fiscal 2009 included impairment of goodwill and intangible
assets of $6.0 million and an unrealized foreign exchange loss of $6.7
million.
Cash flow from operations was $1.9 million in the quarter ended March 31,
2009, and after changes in working capital, cash used in operating activities
was $3.8 million. The Company repaid $3.4 million in bank indebtedness net of
proceeds in the quarter, and at March 31, 2009 is fully compliant with all of
the covenants and terms of its credit facility. At March 31, 2009, $4.2
million was drawn under the new revolving facility of $16.0 million under that
credit facility. Net debt was $239.5 million at March 31, 2009.
"The lower revenue reported in Q2 partly reflects the over-performance
from accelerated shipments in Q1 of this fiscal year," said David E. Luxton,
President and CEO. "On the expense side we continue to track to our reduced
target cost base as a result of the reduction measures announced at the end of
fiscal 2008, with scope for additional operating efficiencies in the remainder
of the year."
In the six months ended March 31, 2009, revenue was $129.3 million,
EBITDA was $23.6 million and net loss was $53.6 million, or $(0.49) per share.
This compares to the first half of fiscal 2008 when revenue was $231.6
million, EBITDA was $66.0 million and the net loss was $27.4 million or
$(0.26) per share.
While macro conditions for Allen-Vanguard products and services remain
favorable with the new U.S. defense budget emphasis on counter-insurgency, the
post-U.S. presidential election budget process created a pronounced pause in
order approval and processing Thus, considering this and the current global
economic instability, the Company has decided to suspend revenue guidance for
the time being. Order backlog at the end of Q2 2009 stood at approximately
$88.0 million vs. $45.0 million at the end of Q2 F08. This order backlog
represented increases in all three business lines: Electronic Systems was 20.6
million compared to 12 million a year ago; PPS was 42.4 million compared to
22.3 million a year ago and S&S which was 25 million compared to 10.8 million
a year ago.
"Our jammer business is currently in transition as our legacy Chameleon
product reduces to sustainment levels while we ramp up for Symphony program
requirements, which now have much stronger visibility, and as we introduce our
next-generation Equinox platform," continued Mr. Luxton. "Equinox is a
leap-ahead technology with applications far beyond jamming, and early
indications are that there is a receptive international market which we expect
will drive significant growth commencing in 2010."
The Company added that its traditional Personal Protection Systems
business is also evolving, with a changing sales mix as it introduces new
products, in particular its family of blast protection seats. "This new
product has already surpassed our revenue expectations for this fiscal year,"
said Mr. Luxton. "This partially offsets a pause in our bomb disposal program
where we upgraded technology and relocated manufacturing, which slowed the
pace of robot deliveries against plan."
The Company reported that its Systems and Services business continues to
track well to plan, anchored by a significant multi-year Program-of-Record to
provide training to U.S. forces, plus ongoing requirements for field service
representatives overseas.
Events subsequent to Q2 2009
On April 6, 2009 Allen-Vanguard announced the termination of its
arrangement agreement with Tailwind Financial Inc. and that it had entered
into an exclusivity agreement with an unrelated U.S. investor for a period of
three weeks ending April 24, 2009, which was subsequently extended. The
investor is undertaking discussions with Allen-Vanguard's stakeholders and
performing due diligence with the objective of entering into a binding
agreement pursuant to which Allen-Vanguard would be taken private. Any such
transaction would be subject to the approval of Allen-Vanguard shareholders
and other customary conditions.
This definitely doesn't sound like a company facing bankruptcy.
Dilution perhaps. In effect what Mr Luxton has done is sold out his shareholders in return for keeping his job. We know the technologies which will be sold are worth a lot more than 50 M. We also know Med Eng isn't a worthless acquisition. These attempts to manipulate the goodwill and intangible accounts amount to nothing less than fraud. In effect Mr Luxton is attempting to say Thank You for letting me steal your hard earned money so easily. So which is it Mr Luxton:
Are you a thief?
Or
An incompetent CEO who has failed miserably at performing duties for which you were put in a position of public trust.
Remember, I said that neither party seemed interested or prepared when presenting the tailwind deal? I honestly think tailwind was a diversion. Remember it was VRS who canceled the tailwind deal initially and announced the US buyer in the same news release. Read below:
OTTAWA, April 6 /CNW Telbec/ - Allen-Vanguard Corporation (the "Company"
or "Allen-Vanguard") (TSX: VRS) of Ottawa, Canada announced today that the
arrangement agreement in respect of the previously announced plan of
arrangement among Allen-Vanguard, Tailwind Financial Inc. and AV Acquisition
Corp. (the "Arrangement") has been terminated and that the Arrangement will
therefore not proceed.
At the same time, Allen-Vanguard announced that it has entered into an
exclusivity agreement with an unrelated U.S. investor for a period of three
weeks ending April 24, 2009, during which time the investor will undertake
discussions with Allen-Vanguard's stakeholders and perform due diligence with
the objective of entering into a binding agreement pursuant to which
Allen-Vanguard would be taken private. Any such transaction would be subject
to the approval of Allen-Vanguard shareholders and other customary conditions. |
