August 14, 2014
VANCOUVER: Avcorp Industries Inc. (TSX: AVP) (the “Company” or “Avcorp”) today announced its
financial results for the quarter ended June 30, 2014.
Revenue for the quarter ended June 30, 2014 was $21,134,000 as compared to $20,492,000 for the
quarter ended June 30, 2013. Current quarter revenues have increased relative to the same quarter in the
previous year primarily as a result of an increase in quantities delivered for one defence program, strong
aircraft component repairs revenue, as well as an increase in composite aircraft floor board sales and
in‐house developed composite parts sales.
Comtek Advanced Structures Ltd. (“Comtek”), a wholly owned subsidiary of Avcorp, generated a 131%
increase in aircraft component repairs revenue primarily as a result of targeted customer campaigns.
Comtek’s sales of composite parts to airline operators increased as investments made in developing
aftermarket replacement parts have commenced to generate revenues.
During the quarter ended June 30, 2014, the Company recorded a loss from operations of $472,000 on
$21,134,000 revenue, as compared to $393,000 operating income on $20,492,000 revenue for the same
quarter in the preceding year; and a net loss for the current quarter of $589,000 as compared to net
income of $1,596,000 for the quarter ended June 30, 2013. 2013 second quarter earnings benefited from
a $1,129,000 one‐time other operating income as well as a $1,494,000 foreign exchange gain.
Cash flows from operating activities during the quarter ended June 30, 2014 provided $180,000 of cash as
compared to utilizing $2,776,000 of cash during the quarter ended June 30, 2013. The primary source of
cash from operations during the current quarter is from changes in the amount of inventories and
accounts payable, while the utilization of cash from operating activities is primarily attributable to
recognition of revenues which were funded in previous quarters. As at June 30, 2014 the Company had
$3,027,000 cash on hand (December 31, 2013: $7,012,000).
The Company has a working capital surplus of $11,331,000 as at June 30, 2014 which has decreased from
the December 31, 2013 $14,213,000 surplus, as a result of cash utilized in operating activities. The
Company’s accumulated deficit as at June 30, 2014 is $59,554,000 (December 31, 2013: $57,723,000).
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 388 skilled employees and 340,000 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