Composite airframe maker Avcorp sales slip 18.66% in Q2

During the quarter ended June 30, 2013, the Company recorded income from operations of $393,000 on $20,492,000 revenue, as compared to $411,000 operating income on $25,192,000 revenue for the same quarter in the preceding year; and net income for the current quarter of $1,596,000 as compared to net income of $13,000 for the quarter ended June 30, 2012. (-18.66)

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 programs.

Earnings before interest, taxes, depreciation and amortization (EBITDA) was positive $3,066,000 for the quarter ended June 30, 2013 compared to a positive EBITDA of $1,656,000 for the quarter ended June 30, 2012.  The increase in EBITDA was primarily as a result of current quarter court-awarded interest and foreign exchange gain.

Cash flows from operating activities during the quarter ended June 30, 2013 utilized $4,347,000 of cash as compared to utilizing $1,469,000 of cash during the quarter ended June 30, 2012.  The increase in operating cash utilization over the same quarter in the prior year is primarily attributable to recognition of revenues which were funded in a previous period and increase in other receivables, offset by collection of trade accounts receivable and a number of non-cash expenses.

The Company has a working capital surplus of $31,492,000 as at June 30, 2013 which has decreased from the December 31, 2012 $34,819,000 surplus, as a result of an increase in bank indebtedness and accounts payable.  The Company's accumulated deficit as at June 30, 2013 is $53,671,000 (December 31, 2012: $55,375,000).

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.

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Avcorp