Firan Technology Group Announces Third Consecutive Year of Double Digit Revenue Growth
Toronto, January 19, 2006 – Firan Technology Group Corporation (TSX:FTG) today announced the fourth quarter and full-year results for the period ending November 30, 2005.
The Company’s revenue grew in 2005 to $52,801,000, an increase of $6,157,000 or 13% over 2004 and 104% growth over the past three years. This growth is the result of the corporate development activities over the past three years including the merger of FTG and Circuit World in 2003 and the acquisition of Young Electronics in December 2004.
Net sales for the fourth quarter of 2005 were $13,390,000, an increase of 28% compared with $10,467,000 for the fourth quarter of 2004 and a 1% increase over the third quarter of 2005. The strength in the Canadian dollar versus the prior year reduced reported sales for the quarter by approximately $700,000 and $3,600,000 for the full year.
The combined Circuits businesses’ net sales for the quarter were $10,634,000, an increase of $2,776,000 or 35% over the prior year. The strength of the Canadian dollar compared to the prior year reduced sales by more than $500,000. Net sales recorded from the Chatsworth facility were $3,249,000 for the quarter. On a year-to-date basis, net sales for the Circuits segment were $43,294,000, an increase of $5,635,000 or 15% over the comparable period in 2004. The strength of the Canadian dollar has reduced reported sales for the Circuits’ segment by approximately $3,000,000 versus the prior year.
Aerospace sales for the current quarter ended at $2,756,000 which increased 6% and were $147,000 higher than the same quarter last year and were 22% higher than the third quarter of 2005. On a year to date basis, net sales for Aerospace were $9,507,000 compared to $8,985,000 for the comparable period in 2004, an increase of 6%. The strength of the Canadian dollar reduced reported sales by approximately $600,000 for the full year.
Fourth Quarter Results (three months ended November 30, 2005
compared with three months ended November 30, 2004)
Q4 2005 $13,390,000
Q4 2004 $10,467,000
Operating Earnings (Loss) Before Tax:
Q4 2005 $124,000
Q4 2004 ($235,000)
Net Earnings (Loss):
Q4 2005 $152,000
Q4 2004 ($27,000)
Earnings per share – basic and diluted:
Q4 2005 $0.01
Q4 2004 $0.00
The Company had operating earnings before tax in the quarter of $124,000, an improvement from the pre-tax operating loss of $235,000 in the fourth quarter of 2004. Included in operating earnings for the quarter are charges of $123,000 and $42,000 respectively related to the sale of a property and final expenses received from its controlling shareholder related to the 2003 merger, offset by a $154,000 gain for FTG’s portion of the gain on a sale of a property pursuant to an agreement with its controlling shareholder. The performance for the quarter resulted from substantially improved sales and margin in FTG Circuits Toronto compared to earlier in the year. FTG Aerospace continues to achieve positive performance.
Net income for the fourth quarter was $152,000 or earnings of $0.01 per share ($0.01 per diluted share) as compared with a net loss of $27,000 or $0.00 per share ($0.00 earnings per diluted share) in the same period in 2004.
Year to Date Results (twelve months ended November 30, 2005
compared with twelve months ended November 30, 2004)
YTD 2005 $52,801,000
YTD 2004 $46,644,000
Operating Loss Before Tax:
YTD 2005 ($348,000)
YTD 2004 ($399,000)
YTD 2005 ($893,000)
YTD 2004 ($191,000)
Loss per share
- basic & diluted:
YTD 2005 ($0.05)
YTD 2004 ($0.01)
Full year results were negatively impacted by performance in FTG Circuits – Toronto in the first quarter of the year. For the final nine months of the year, the Company achieved an operating profit of $944,000 and a net profit of $88,000. Earnings before interest, taxes, depreciation and amortization (EBITDA) for the full year was $3,707,000, of which $3,615,000 was for the final nine months of the year.
As at November 30, 2005, the Company’s primary source of liquidity included, accounts receivable of $8,518,000 and inventory of $6,409,000. Net working capital at November 30, 2005 was $4,283,000 as compared to $6,026,000 at November 30, 2004. In addition, the Company had a strong cash position at the end of the quarter with cash on hand of $2,051,000 and was undrawn on its’ US and Canadian operating lines.
“Following the disappointing start to 2005, I am pleased at the progress the Company has made over the final nine months. FTG Circuits Chatsworth has been a great addition to the Company and their financial performance has exceeded our expectations. FTG Circuits Toronto has dramatically improved on production yields and on-time delivery since the first quarter. This is being recognized by our customer base as we continue to win new business. FTG Aerospace was impacted in the third quarter as we worked with a customer to overcome some technical challenges, but shipment levels recovered in the fourth quarter.”, stated Mr. Brad Bourne, President and Chief Executive Officer.
Mr. Bourne added, “Our outlook for the future is positive as our customer base is forecasting continued growth and the operational performance levels across FTG are strong. The Company’s external focus will continue to be in the aerospace and defense markets and on building leadership positions in the market segments in which we participate. Internally, the Company is focused on building the best possible team, exceeding our customers’ expectations for quality, delivery and customer service, and executing on the critical metrics that drive profitability.”
The Company will host a live conference call on Friday January 20, 2006 at 8:30am (EDT) to discuss the results of the fourth quarter of 2005.
Anyone wishing to participate in the call should dial 416-695-9722 or 1-888-333-4519 and identify that you are calling into the FTG conference call. The Chairperson is Mr. Brad Bourne. A replay of the call will be available until January 27, 2006. The number to call for a rebroadcast is 416-695-5275 or 1-888-509-0081.
ABOUT FIRAN TECHNOLOGY GROUP CORPORATION
FTG is an aerospace and defence electronics product and subsystem supplier to the North American marketplace. 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, defence, 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 avionics products as well as airframe manufacturers.
The Company's shares are traded on the Toronto Stock Exchange under the symbol FTG.
This news release may contain certain forward-looking statements. Such statements are based on the current expectations of management of the Company and inherently involve numerous risks and uncertainties, known and unknown, including economic factors and the Company’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 Company. The reader is cautioned to consider these and other factors carefully when making decisions with respect to the Company and not place undue reliance on forward-looking statements. The Company does not undertake and has no specific intention to update any forward-looking statements, written or oral that may be made from time to time by or on its behalf 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 email@example.com
Joseph R. Ricci, Vice President and CFO Tel: (416) 299-4000 x309
Firan Technology Group Corporation firstname.lastname@example.org