Firan Technology Group (\"FTG\") Announces Q1 2013 Financial Results
Toronto, April 9, 2013 – Firan Technology Group Corporation (TSX:FTG) today announced financial results for the first quarter 2013.
• Bookings grew sequentially from Q4 2012 by $3.6M (30%) to over $15M in Q1 2013
• Book-to-bill ratio at 1.18:1 in the quarter
• Grew Aerospace sales by 11% over Q1 2012
“FTG experienced volatility in demand across its businesses in the first quarter, and this combined with the startup expenses for our two new aerospace facilities, resulted in lower than anticipated financial performance”, stated Brad Bourne, President and Chief Executive Officer. He added, “We are still comfortable with the direction of the Corporation and with the strong bookings in Q1, we expect to see improved performance going forward. We will continue to invest in equipment and R&D to move FTG up the value chain and capture content on key new aircraft platforms being developed worldwide.”
First Quarter Results: (three months ended March 1, 2013 compared with three months ended March 2, 2012)
Operating Earnings (1): $429,000
• Net R&D Investment: $597,000
• Aerospace Start-up losses: $501,000
Net (Loss)/ Earnings: ($691,000)
(Loss)/ Earnings per share
- basic & diluted: ($0.04)
Operating Earnings (1): $840,000
• Net R&D Investment: $575,000
• Aerospace Start-up losses: $225,000
Net (Loss)/ Earnings: $38,000
(Loss)/ Earnings per share
- basic & diluted: $0.00
(1) Operating Earnings (Loss) is not a measure recognized under Canadian generally accepted accounting principles (“GAAP”). Management believes that this measure is important to many of the Corporation’s shareholders, creditors and other stakeholders. The Corporation’s method of calculating Operating Earnings (Loss) may differ from other corporations and accordingly may not be comparable to measures used by other corporations.
FTG accomplished many goals in our first quarter 2013 that continue to improve the Corporation and position it for the future, including:
• Signed $30M+ contract with Rockwell Collins for cockpit products
• Held Grand Opening of FTG Aerospace – Chatsworth facility
• Completed AS9100C certification for FTG Aerospace - Chatsworth
• Shipped 2,000th cockpit panel from FTG Aerospace - Tianjin
• Invested $700,000 in capital equipment across the Corporation to improve engineering tools, and test equipment.
• Invested over $600,000 in R&D and deferred development to advance the Corporation’s technology and develop products for new aircraft platforms.
For FTG, overall sales decreased by $0.5M (3.4%), from $13.5M in Q1 2012 to $13.0M in Q1 2013.
The Circuits Segment sales were down $0.9M or 9% in Q1 2013 versus Q1 2012. FTG Circuits – Chatsworth sales were down 25% due to reduced demand from some key military customers. FTG Circuits – Toronto sales were up 7% due to increased demand on some programs including the Boeing 787.
For the Aerospace segment, sales in Q1 2013 were up $0.4M or 11% to $4.1M compared to $3.7M in Q1 2012. This growth resulted from strong demand for commercial aerospace products and increased shipments of military simulator products compared to same quarter last year.
Net loss at FTG in Q1 2013 was $691,000 compared to net income of $38,000 in Q1 2012. Weak sales at FTG Circuits – Chatsworth negatively impacted Q1 2013 profitability. Startup losses at FTG Aerospace – Tianjin and FTG Aerospace – Chatsworth also negatively impacted profitability by $0.5M.
The Circuits segment net earnings before corporate, interest and tax costs was $0.1M in Q1 2013 compared to $0.5M in Q1 2012. The reduction was due to lower activity in FTG Circuits - Chatsworth.
The Aerospace net loss before corporate and interest costs was $0.04M in Q1 2013 versus net income of $0.2M in Q1 2012. The reduction was due to higher startup expenses for the two new facilities this year partially offset by higher profitability in FTG Aerospace - Toronto.
As at March 1, 2013, the Corporation’s primary source of liquidity included accounts receivable of $9.4M and inventory of $8.2M. Net working capital at March 1, 2013 was $ 10.4M.
The Corporation will host a live conference call on April 10, 2013 at 11:30 am (EST) to discuss the results of the first quarter 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 April 24, 2013 and will be available on the FTG website at www.ftgcorp.com. The number to call for a rebroadcast is 905-694-9451 or 1-800-408-3053, pass code 8967960.
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:
FTG Circuits is a manufacturer of high technology, high reliability printed circuit boards. Our customers are leaders in the aviation, defense, and high technology industries. FTG Circuits has operations in Toronto, Ontario and Chatsworth, California.
FTG Aerospace manufactures illuminated cockpit panels, keyboards and sub-assemblies for original equipment manufacturers of aerospace and defense equipment. FTG Aerospace has operations in Toronto, Ontario, Chatsworth, California and Tianjin, China.
The Corporation\'s shares are traded on the Toronto Stock Exchange under the symbol FTG.
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.
For further information please contact:
Bradley C. Bourne, President and CEO
Tel: (416) 299-4000 x314
Firan Technology Group Corporation
Joseph R. Ricci, Vice President and CFO
Tel:(416) 299-4000 x309
Firan Technology Group Corporation
Additional information can be found at the Corporation’s website www.ftgcorp.com