Firan Technology Group (FTG) Announces First Quarter 2012 Financial Results
Firan Technology Group (FTG) Announces First Quarter 2012 Financial Results
Toronto, April 12, 2012 – Firan Technology Group Corporation (TSX:FTG) today announced financial results for the first quarter 2012.
– Grew sales by $1.3M or 10% over first quarter 2011
– Grew gross margin by $0.4M over first quarter 2011
– Fourth consecutive profitable quarter
– Book-to-bill ratio at 1.13:1 in the quarter
“FTG continues to build momentum across the company. Sales are growing at all sites and continued new order growth bodes well for the coming quarters. With the FTG Aerospace – Tianjin facility ready for production, and the strong interest in this facility from customers in Asia and North America, this is a very exciting new addition to the FTG portfolio of businesses”, stated Brad Bourne, President and Chief Executive Officer. He added, “FTG continues 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 2, 2012 compared with three months ended February 25, 2011)
Q1 2012:
Sales: $13,474,000
Operating Earnings (1): $615,000
Net R&D Investment: $575,000
Taxes: $2,000
Net Earnings / (Loss): $38,000
Earnings / (Loss) per share-basic & diluted: $0.00
Q1 2011:
Sales: $12,213,000
Operating Earnings (1): $478,000
Net R&D Investment: $667,000
Taxes: $2,000
Net Earnings / (Loss): ($191,000)
Earnings / (Loss) per share-basic & diluted: ($0.01)
(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.
Business Highlights
FTG accomplished many goals in our first quarter 2012 that continue to improve the Corporation and position it for the future, including:
-Achieved 10% year-over-year sales growth despite softness in the
North American printed circuit board industry
-Won significant new customers outside of North America to continue to
diversify the customer base
-Received next increment of Ontario Government AMIS loan of $1.2M in
support of investments in our Circuits – Toronto facility
-Successfully completed AS9100C certification for FTG Circuits –
Chatsworth
-Commissioned equipment at FTG Aerospace – Tianjin in preparation for
the start of production testing
-Continued implementation of new ERP system for FTG Aerospace locations
-Transitioned to IFRS accounting standard as required for all Canadian
companies
For FTG overall sales increased by $1.3M (10%), from $12.3M in Q1 2011 to $13.5M in Q1 2012. All sites participated in the growth.
The Circuits Segment sales were up $0.9M or 10% in Q1 2012 versus Q1 2011. FTG Circuits – Chatsworth saw particularly strong growth in the quarter.
For the Aerospace segment, sales in Q1 2012 were up $0.3M or 10% to $3.4M compared to $3.1M in Q1 2011. This growth resulted from strong demand for commercial aerospace products offset by a drop in military products compared to same quarter last year.
Net earnings at FTG in Q1 2012 were $38,000 compared to net loss of $191,000 in Q1 2011.
Gross margin increased by $0.4M due to higher activity with a relatively stable US to Canadian dollar exchange rate. R&D costs were lower in the quarter, primarily in Circuits-Toronto.
The Circuits segment net earnings before corporate, interest and tax costs was $0.4M in Q1 2012 compared to $0.1M in Q1 2011. The improvement was due to higher activity and strong operational performance.
The Aerospace net earnings before corporate and interest costs was $0.3M in Q1 2012 versus $0.2M in Q1 2011. The improved results are the result of higher activity, offset by lower one time incentive income in Q1 2011 results and $0.1M expenses incurred in FTG Aerospace – Tianjin in Q1 2012.
As at March 2, 2012, the Corporation’s primary source of liquidity included accounts receivable of $9.8M and inventory of $8.3M. Inventories increased in the quarter due to higher activity and investment in one large aerospace program where shipments are expected to begin in Q2 2012. Net working capital at November 30, 2011 was $ 10.6M.
The Corporation will host a live conference call on April 13, 2012 at 11:00 am (EST) to discuss the results of the first quarter 2012.
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 27, 2012 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 5332299.
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.
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.
For further information please contact:
Bradley C. Bourne, President and CEO
Tel: (416) 299-4000 x314
Firan Technology Group Corporation bradbourne@ftgcorp.com
Joseph R. Ricci, Vice President and CFO
Tel:(416) 299-4000 x309
Firan Technology Group Corporation joericci@ftgcorp.com
Additional information can be found at the Corporation’s website www.ftgcorp.com
