Circuit World Announces Third Quarter Results With Positive Operating Earnings
Circuit World Corporation (TSX:CCW) today announced the third quarter results for the period ending August 29, 2003.
Third Quarter Results (three months ended August 29, 2003
compared with three months ended August 30, 2002)
Operating Earnings After Tax*: $203,000
Net (Loss)/Income After Tax: ($2,364,000)
EPS - Basic & Fully Diluted: ($0.22)
Operating Earnings After Tax*: $356,000
Net (Loss)/Income After Tax: $356,000
EPS - Basic & Fully Diluted: $0.04
Year to Date Results (nine months ended August 29, 2003,
compared with nine months ended August 30, 2002)
Operating Earnings After Tax*: $665,000
Net (Loss)/Income After Tax: ($1,902,000)
EPS - Basic & Fully Diluted: ($0.20)
Operating Earnings After Tax*: $207,000
Net (Loss)/Income After Tax: $207,000
EPS - Basic & Fully Diluted: $0.02
The third quarter is the first reportable quarter post merger with Firan Technology Group (‘FTG’). The quarter ended on August 29, 2003, indicating that the Circuit World Corporation (‘CWC’) intends to change its year-end to November 30th. The transaction was accounted for as a reverse takeover of CWC by FTG. Consequently the comparables in the financial statements are those of FTG, not CWC. The third quarter results from operations reflect three months operating results of FTG and one month of CWC.
Operating earnings after tax for the third quarter was $203,000. These positive results are attributable to the defence and aviation component of the business, which remained strong in the quarter.
The ongoing strengthening of the Canadian dollar continues to challenge us to achieve higher levels of manufacturing efficiency said the Company.
* Operating earnings after tax has been presented to show the financial results before one time restructuring costs associated with the merger.
The Company recorded a $2,567,000 restructuring charge in the third quarter for costs associated with integrating and aligning both Companies. There is an additional $1,516,000 of restructuring costs that were capitalized and included in the purchase price allocation and do not appear on the statement of operations. The total restructuring costs of $4,083,000 is made up of termination costs, transaction/professional fees, equipment write-downs and moving costs.
Mr. Gordon Roseborough, Chief Executive Officer for CWC also announced the appointment of Bradley Bourne as President of CWC. Mr. Bourne’s background in Aerospace and operations management should help us realize the potential of our recent merger. Mr. Bourne, prior to his relationship with FTG and CWC, was formerly President and General Manager for Flow Automation and spent 17 years at Spar Aerospace Limited in increasingly senior roles including vice presidential positions for strategic development and marketing.
“The recent merger will allow us to provide a wider range of products, achieve higher operating efficiencies and strengthen our position in strategic markets," added Mr. Roseborough. The merger combines Circuit World's state-of-the-art facilities and process technology with Firan's materials-based technology and strong presence in the military and aerospace markets.
"We continue to advance the integration of the two businesses. The benefits of a stronger market presence, improved pricing from suppliers and reduced administrative expenses are being realized. In the near future, manufacturing operations will be consolidated into one facility. This should yield additional cost savings and operational efficiencies” stated Mr. Bourne.
Circuit World Corporation is a leading supplier of high reliability printed circuit boards and flight deck subsystems. The company manufactures its products through its operating divisions, PC World and FTG.
The company’s shares are traded on the Toronto Stock Exchange under the symbol CCW.
This news release contains certain forward-looking statements that reflect the current views and/or expectations of Circuit World with respect to its performance, business and future events. Such statements are subject to a number of risks, uncertainties and assumptions. Actual results and events may vary significantly.
For further information please contact:
John Bartkiw, CFO Tel: (416) 299-4000
Circuit World Corporation firstname.lastname@example.org
Updates can be found at the company’s web site www.circtwrld.com
The company welcomes calls from brokers and analysts wishing to learn more about Circuit World.