November 13, 2012
VANCOUVER: Avcorp Industries Inc. (TSX: AVP) (the “Company” or “Avcorp”) today announced
its financial results for the quarter ended September 30, 2012.
During the quarter ended September 30, 2012, the Company recorded a loss from operations of
$1,446,000 on $19,324,000 revenue, as compared to a $186,000 operating loss on $20,383,000
revenue for the same quarter in the preceding year; and a net loss for the current quarter of
$2,729,000 as compared to a net loss of $150,000 for the quarter ended September 30, 2011.
Current quarter revenues have decreased from the same quarter in the preceding year primarily
as a result of the wind‐down of Cessna Aircraft Company (Cessna) programs. During the third
quarter 2012, the Company renewed its long‐term agreement with the Boeing Commercial
Airplane Group (Boeing CA) which is forecasted to provide in excess of $83 million revenue over
the next five years. Start‐up and commencement of production deliveries for BAE Systems
(Operations) Limited (BAE) F35 program has also contributed to an overall $110 million increase
in order backlog during the current quarter.
Earnings before interest, taxes, depreciation and amortization (EBITDA) was negative
$1,205,000 for the quarter ended September 30, 2012 compared to a positive EBITDA of
$1,455,000 for the quarter ended September 30, 2011. The decline in EBITDA was primarily as a
result of reduced revenues and costs associated with customer contract terminations. During
the quarter‐ended September 30, 2012, the Company incurred $825,000 (September 30, 2011:
$136,000) in costs associated with customer contract terminations.
On September 27, 2012, the Company secured a three year $12,000,000 operating line of credit.
Concurrently, the Company repaid its $6,000,000 term loan. Also during the quarter the
Company increased its share capital by $2,798,000.
Cash flows from operating activities during the quarter ended September 30, 2012 provided
$350,000 of cash as compared to utilizing $766,000 of cash during the quarter ended September
30, 2011. The Company has a working capital surplus of $10,130,000 as at September 30, 2012
which has decreased from the December 31, 2011 $14,663,000 surplus, as a result of utilizing
cash on hand to repay long‐term debt. The Company’s accumulated deficit as at September 30,
2012 was $78,581,000 (December 31, 2011: $76,016,000).
Avcorp designs and builds major airframe structures for some of the world’s leading aircraft companies,
including BAE Systems, Boeing, and Bombardier. With more than 50 years of experience, over 400 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
Comtek subsidiary also offers composite repairs for commercial aircraft out of their Burlington location.
Avcorp is a Canadian public company traded on the Toronto Stock Exchange (TSX:AVP).
Sandi DiPrimo, Investor Relations Contact | 604-587-4938