Circuit World Announces Fourth Quarter and Year End Results
Circuit World Corporation (TSX:CCW) today announced the fourth quarter results for the period ending November 30, 2003.
Fourth Quarter Results (three months ended November 30, 2003 compared with three months ended November 30, 2002)
Net (Loss)/Income After Tax: ($245,000)
EPS - Basic & Fully Diluted: /($0.02)
Net (Loss/Income After Tax): $361,000
EPS - Basic & Fully Diluted: $0.04
Year End Results (Twelve months ended November 30, 2003, compared with twelve months ended November 30, 2002)
Operating Earnings After Tax*: $420,000
Net (Loss)/Income After Tax: ($2,147,000)
EPS - Basic & Fully Diluted ($0.19)
Operating Earnings After Tax*: $568,000
Net (Loss)/Income After Tax: $568,000
EPS - Basic & Fully Diluted: $0.07
Fourth quarter revenue increased 54% over the same period in 2002. The increase is attributable to the merger between Circuit World Corporation ("the Company") and Firan Tchnology Group Inc. ("FTG") on July 30, 2003. The 2002 comparables are the financial results of FTG, as FTG is the deemed parent for accounting purposes.
Gross margin for the fourth quarter was 27% as compared to 24% in 2002. The improvement is a result of one-time, non-cash adjustments to the financial statements that resulted from the merger. These adjustments primarily relate to changes in the valuation of certain finished goods and raw material inventories.
The continual strengthening of the Canadian dollar during the fourth quarter negatively impacted the financial results. Approximately 80% of all sales and 30% of material costs are denominated in US dollars. The Company manages the exposure to these market risks through regular operating and financing activities and, when deemed appropriate, hedge these risks through the use of derivative financial instruments.
"While we continue to make progresss in integrating the businesses, we have had delays and now expect the integration to be complete by the second quarter. We expect additional restructuring costs in the first quarter of 2004, but we remain confident that we will realize all of the benefits originally contemplated from the merger", added Mr. Bradley Bourne, President and Chief Executive Officer.
*Operating earnings after tax has been presented to show the financial results before one time restructuring costs associated with the merger.
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 shared 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, Circuit World Corporation
Tel: (416) 299-4000, 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.