Avcorp announces 2012 Second Quarter Results

Q2 2012 Report
August 8, 2012

VANCOUVER: Avcorp Industries Inc. (TSX: AVP) (the “Company” or “Avcorp”) today announced its financial results for the quarter ended June 30, 2012.

During the quarter ended June 30, 2012, the Company recorded income from operations of $411,000 on $25,192,000 revenue, as compared to a $752,000 operating loss on $20,492,000 revenue for the same quarter in the preceding year; and net income for the current quarter of $13,000 as compared to a net loss of $1,337,000 for the quarter ended June 30, 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 $1,350,000 profitability improvement for the second quarter 2012 relative to the same quarter in 2011.

Earnings before interest, taxes, depreciation and amortization (EBITDA) was positive $1,656,000 for the quarter ended June 30, 2012 compared to a positive EBITDA of $259,000 for the quarter ended June 30, 2011. A $1,397,000 improvement largely contributed to by gross margin growth.

Cash flows from operating activities during the quarter ended June 30, 2012 utilized $1,421,000 of cash as compared to utilizing $149,000 of cash during the quarter ended June 30, 2011 primarily as a result of deferred revenue amortization for which customer cash receipts had been received in prior periods; while working capital changes remained neutral. The Company has a working capital surplus of $16,149,000 as at June 30, 2012 which has increased from the December 31, 2011 $14,663,000 surplus, as a result of growth in cash and a reduction in accounts payable. The Company’s accumulated deficit as at June 30, 2012 was $75,852,000 (December 31, 2011: $76,016,000).

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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