March 27, 2013
VANCOUVER: Avcorp Industries Inc. (TSX: AVP) (the “Company” or “Avcorp”) today announced
its financial results for the year ended December 31, 2012.
During the year ended December 31, 2012, the Company recorded income from operations of
$24,002,000 on $89,337,000 revenue, as compared to a $362,000 operating loss on $86,018,000
revenue for the preceding year; and net income for the current year of $20,641,000 as
compared to a net loss of $2,452,000 for the year ended December 31, 2011.
On November 16, 2012, Avcorp received the determination of an appointed arbitration panel
constituted to adjudicate outstanding issues relating to cost reimbursements and compensation
payable to Avcorp in connection with the transition of Cessna Aircraft Company (“Cessna”)
production work back to Cessna and other suppliers. A binding arbitration award was delivered
to the Company on November 16, 2012. The quantum of damages was assessed by an
arbitration panel at $27,391,000. The arbitration award, net of associated costs, amounted to
On November 26, 2012 Cessna filed a complaint in the United States District Court For The
District Of Kansas seeking to vacate the award as a manifest disregard for the law and in
violation of public policy.
On December 21, 2012 Avcorp filed a memorandum in support of a motion to confirm final
arbitration award, and dismiss the complaint in the United States District Court For The District
Current year revenues have increased from the preceding year primarily as a result of significant
increases in sales to The Boeing Company (Boeing) and BAE Systems (Operations) Limited (BAE),
offset by the wind‐down of 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 $146 million increase in order backlog during the
Cash flows from operating activities during the year ended December 31, 2012 utilized
$3,603,000 of cash as compared to utilizing $924,000 of cash during the year ended December
31, 2011. The Company has a working capital surplus of $34,819,000 as at December 31, 2012
which has significantly increased from the December 31, 2011 $14,663,000 surplus, as a result
of the binding arbitration award. The Company’s accumulated deficit as at December 31, 2012
was $55,375,000 (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