June 14, 2011
VANCOUVER: Avcorp (AVP on the Toronto Stock Exchange) today announced its financial results for the
quarter ended March 31, 2011.
During the quarter ended March 31, 2011, the Company recorded a loss from operations of $517,000 on
$20,916,000 revenue, as compared to a $2,031,000 loss from operations on $17,376,000 revenue for the
same quarter preceding year; and a net loss for the current quarter of $1,069,000 as compared to a net
loss of $2,246,000 for the quarter ended March 31, 2010.
The Company has realized revenue growth during the first quarter 2011 relative to the same quarter in
2010, from the restart in deliveries as well as increase in deliveries of several programs; while customer
demand for non‐original equipment manufacturer’s products and services has increased slightly.
Cash flows from operating activities during the current quarter utilized $3,566,000 of cash primarily
resulting from working capital growth in support of increased revenues, as compared to providing
$447,000 of cash during the quarter ended March 31, 2010. The Company has a working capital surplus
of $5,096,000 as at March 31, 2011 (December 31, 2010: $1,493,000 surplus).
Subsequent to the end of the current quarter the Company and its bank entered into an agreement
amending its existing banking arrangement as announced in our press release of May 26, 2011.
In conjunction with the banking requirements, the Company completed a secured subordinated
convertible loan from Panta with a principal amount of $6,000,000 which will be used to pay down its
operating line of credit, and is convertible into 85,714,286 common shares as announced in our press
release of May 26, 2011.
The Company is currently not in compliance with the covenants of its EDC debenture and is working on
the refinancing of the Export Development Canada convertible debenture which matured on March 31,
2011. At the same time the Company is working to refinance its preferred shares which are redeemable
on July 1, 2011. The Company expects to complete these refinancing’s during the second quarter 2011
although no assurance for a successful completion can be given.
Avcorp designs and builds major airframe structures for some of the world’s leading aircraft companies,
including Boeing, Bombardier, and Cessna. With more than 50 years of experience, 565 skilled employees
and 354,000 square feet of facilities, Avcorp offers integrated composite and metallic aircraft structures
to aircraft manufacturers, a distinct advantage in the pursuit of contracts for new aircraft designs, which
require lower‐cost, light‐weight, strong, reliable structures. Avcorp is a Canadian public company traded
on the Toronto Stock Exchange (TSX:AVP).
Sandi DiPrimo, Investor Relations Contact | 604-587-4938