TORONTO, ONTARIO — (Marketwired) — 10/08/13 — Firan Technology Group Corporation (TSX: FTG) today announced financial results for the third quarter 2013.
„FTG-s third quarter had some very positive developments, such as the creation of our Joint Venture with TPC in China for our Circuit-s business and the continued strong ramp in revenue from our two new Aerospace facilities, but we had some challenges in our Circuits Toronto facility where we had lower than expected sales and some yield issues“, stated Brad Bourne, President and Chief Executive Officer. He added, „We are confident that we can address the challenges in our Toronto facility in our fourth quarter while maintaining our growth momentum across our Aerospace business.“
Third Quarter Results: (three months ended August 30, 2013 compared with three months ended August 31, 2012)
Year-To-Date Results: (nine months ended August 30, 2013 compared with nine months ended August 31, 2012)
Business Highlights
FTG accomplished many goals in the third quarter of 2013 that continue to improve the Corporation and position it for the future, including:
For FTG overall sales decreased by $0.7M (5%), from $14.1M in Q3 2012 to $13.3M in Q3 2013. For the first nine months, sales were $40.6M, a decrease of $1.4M or 3% versus the same period last year.
The Circuits Segment sales were down $1.3M or 13% in Q3 2013 versus Q3 2012. Year-to-date Circuits Segment sales were down $3.8M or 12%.
For the Aerospace segment, sales in Q3 2013 were up $0.6M or 12% compared to Q3 2012. For the year-to-date Aerospace segment sales were up $2.5M or 18%.
Net loss at FTG in Q3 2013 was $0.6M compared to net earnings of $0.2M in Q3 2012. Gross margins were depressed in the quarter due to start-up losses at the new aerospace facilities and the weak revenues in the Circuits Toronto facility. Administrative costs were up slightly due to costs associated with the Joint Venture.
The Circuits segment net loss before corporate and interest costs was $0.1M in Q3 2013 compared to net earnings $0.6M in Q3 2012. On a year-to-date basis, the Circuits business net earnings before corporate and interest costs was $0.1M compared to $2.2M for the same period last year. In both cases the decrease is primarily due to weak sales and yield issues in the Circuits Toronto facility.
The Aerospace net earnings before corporate and interest costs was $0.2M in Q3 2013 versus $0.1M in Q3, 2012. The net earnings this year are reduced by the $1.2M start-up losses for the two new facilities. On a year-to-date basis the net earnings before corporate and interests costs was $0.7M compared to $0.4M for the same period last year. Start-up losses for the 9 month period year-to-date were $1.3M.
As at August 30, 2013, the Corporation-s primary source of liquidity included cash of $3.7M, accounts receivable of $9.5M and inventory of $8.3M. Receivables decreased in the quarter due to large milestone payments on two programs in the Aerospace segment. Net working capital at August 30, 2013 was $11.1M.
The Corporation will host a live conference call on Thursday, October 10, 2013 at 8:30 am (EDT) to discuss the results of Q3 2013.
Anyone wishing to participate in the call should dial 416-340-2216 or 1-866-226-1792 and identify that you are calling to participate in the FTG conference call. The Chairperson is Mr. Brad Bourne. A replay of the call will be available until October 24, 2013 and will be available on the FTG website at . The number to call for a rebroadcast is 905-694-9451 or 1-800-408-3053, pass code 4925971.
ABOUT FIRAN TECHNOLOGY GROUP CORPORATION
FTG is an aerospace and defense electronics product and subsystem supplier to customers around the globe. FTG has two operating units:
The Corporation-s shares are traded on the Toronto Stock Exchange under the symbol FTG.
FORWARD-LOOKING STATEMENTS
This news release contains certain forward-looking statements. These forward-looking statements are related to, but not limited to, FTG-s operations, anticipated financial performance, business prospects and strategies. Forward-looking information typically contains words such as „anticipate“, „believe“, „expect“, „plan“ or similar words suggesting future outcomes. Such statements are based on the current expectations of management of the Corporation and inherently involve numerous risks and uncertainties, known and unknown, including economic factors and the Corporation-s industry, generally. The preceding list is not exhaustive of all possible factors. Such forward-looking statements are not guarantees of future performance and actual events and results could differ materially from those expressed or implied by forward-looking statements made by the Corporation. The reader is cautioned to consider these and other factors carefully when making decisions with respect to the Corporation and not place undue reliance on forward-looking statements. Other than as may be required by law, FTG disclaims any intention or obligation to update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise.
Additional information can be found at the Corporation-s website .
Contacts: Firan Technology Group Corporation Bradley C. Bourne President and CEO (416) 299-4000 x314
Firan Technology Group Corporation Joseph R. Ricci Vice President and CFO (416) 299-4000 x309
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