Avcorp announces 2012 First Quarter Results

Q1 2012 Report
May 14, 2012

VANCOUVER: Avcorp Industries Inc. (TSX: AVP) (the “Company” or “Avcorp”) today announced its financial results for the quarter ended March 31, 2012.

During the quarter ended March 31, 2012, the Company recorded income from operations of $860,000 on $25,006,000 revenue, as compared to a $517,000 operating loss on $20,916,000 revenue for the same quarter in the preceding year; and net income for the current quarter of $151,000 as compared to a net loss of $1,258,000 for the quarter ended March 31, 2011.

A combination of continued sales growth, improvements in both operating efficiencies and production quality levels, as well as continued stringent cost controls have netted a $1,409,000 profitability improvement for the first quarter 2012 relative to the same quarter in 2011.

Earnings before interest, taxes, depreciation and amortization (EBITDA) was positive $1,951,000 for the quarter ended March 31, 2012 compared to a positive EBITDA of $213,000 for the quarter ended March 31, 2011. The Company’s improved gross margins have contributed significantly to the $1,738,000 improvement in EBITDA.

Cash flows from operating activities during the quarter ended March 31, 2012 utilized $267,000 of cash as compared to utilizing $3,391,000 of cash during the quarter ended March 31, 2011. The Company has a working capital surplus of $16,494,000 as at March 31, 2012 (December 31, 2011: $14,663,000 surplus).

About Avcorp
Avcorp designs and builds major airframe structures for some of the world’s leading aircraft companies, including BAE Systems, Boeing, Bombardier, and Cessna. With more than 50 years of experience, over 500 skilled employees and 354,000 square feet of facilities in Delta BC and Burlington ON, 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. Our Burlington location also offers composite repairs for commercial aircraft. Avcorp is a Canadian public company traded on the Toronto Stock Exchange (TSX:AVP).

Sandi DiPrimo, Investor Relations Contact | 604-587-4938
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