Blog Post
Avcorp Announces 2016 First Quarter Financial Results
- By Avcorp Industries
- •
- 16 May, 2016
May 16, 2016
VANCOUVER: Avcorp Industries Inc. (TSX: AVP) (the “Company”, “Avcorp” or the “Avcorp Group”) today announced its first quarter financial results for the quarter ended March 31, 2016.
During the quarter ended March 31, 2016 Avcorp Group revenues totaled $35,347,000 as compared to $15,661,000 revenue for the same quarter in the previous year. The December 18, 2015 acquisition of the US based composite Aerostructures division of Hitco located in Gardena, CA has added $18,933,000 to current quarter revenues.
Composite aircraft structure repair revenues out of Comtek, Avcorp’s Burlington, ON facility, continued with a strong performance, as 2016 revenues increased 94% over revenues in the previous year’s first quarter. Composite floor panel revenues arising from aftermarket or spare component sales remained flat in first quarter 2016 relative to first quarter 2015; while composite floor panel revenues derived from sales to original equipment manufacturers have significantly increased by 107%.
Avcorp’s Delta facility revenues generated by legacy production contracts have decreased by 11% during the current quarter relative the same quarter in the previous year; primarily as a result of a scheduled customer decrease in deliveries for one defence program contract.
During the quarter ended March 31, 2016, the Avcorp Group recorded a loss from operations of $12,399,000 on $35,347,000 revenue, as compared to a $2,672,000 operating loss on $15,661,000 revenue for the same quarter in the previous year.
The start-up, post-acquisition of the new operations in Gardena faced several unanticipated challenges during the first quarter 2016. As a result of legacy quality issues raised by customers, a number of items were identified that required corrective action. These items accounted for substantial expenditures beyond normal production costs. The implementation of the necessary corrective actions limited production output during the current quarter and was the major contributor to lower than forecasted sales. The majority of the corrective actions will be implemented in the second quarter of 2016 thereby allowing the Gardena operations to achieve fully contracted output levels. Avcorp’s key commercial customers have worked collaboratively with Avcorp to mitigate production schedules and support the earliest resolution of the outstanding process and product issues.
The Gardena facility defence programs have not experienced the extraordinary unanticipated issues relative to process quality and operational disruptions as the commercial programs have. The planned improvement plans for the defence programs, including the F-35 program for Lockheed Martin, are performing as forecasted.
As at March 31, 2016, the Company had $10,493,000 cash on hand and had not utilized its operating line of credit. The Company has a working capital surplus of $47,036,000 as at March 31, 2016.
VANCOUVER: Avcorp Industries Inc. (TSX: AVP) (the “Company”, “Avcorp” or the “Avcorp Group”) today announced its first quarter financial results for the quarter ended March 31, 2016.
During the quarter ended March 31, 2016 Avcorp Group revenues totaled $35,347,000 as compared to $15,661,000 revenue for the same quarter in the previous year. The December 18, 2015 acquisition of the US based composite Aerostructures division of Hitco located in Gardena, CA has added $18,933,000 to current quarter revenues.
Composite aircraft structure repair revenues out of Comtek, Avcorp’s Burlington, ON facility, continued with a strong performance, as 2016 revenues increased 94% over revenues in the previous year’s first quarter. Composite floor panel revenues arising from aftermarket or spare component sales remained flat in first quarter 2016 relative to first quarter 2015; while composite floor panel revenues derived from sales to original equipment manufacturers have significantly increased by 107%.
Avcorp’s Delta facility revenues generated by legacy production contracts have decreased by 11% during the current quarter relative the same quarter in the previous year; primarily as a result of a scheduled customer decrease in deliveries for one defence program contract.
During the quarter ended March 31, 2016, the Avcorp Group recorded a loss from operations of $12,399,000 on $35,347,000 revenue, as compared to a $2,672,000 operating loss on $15,661,000 revenue for the same quarter in the previous year.
The start-up, post-acquisition of the new operations in Gardena faced several unanticipated challenges during the first quarter 2016. As a result of legacy quality issues raised by customers, a number of items were identified that required corrective action. These items accounted for substantial expenditures beyond normal production costs. The implementation of the necessary corrective actions limited production output during the current quarter and was the major contributor to lower than forecasted sales. The majority of the corrective actions will be implemented in the second quarter of 2016 thereby allowing the Gardena operations to achieve fully contracted output levels. Avcorp’s key commercial customers have worked collaboratively with Avcorp to mitigate production schedules and support the earliest resolution of the outstanding process and product issues.
The Gardena facility defence programs have not experienced the extraordinary unanticipated issues relative to process quality and operational disruptions as the commercial programs have. The planned improvement plans for the defence programs, including the F-35 program for Lockheed Martin, are performing as forecasted.
As at March 31, 2016, the Company had $10,493,000 cash on hand and had not utilized its operating line of credit. The Company has a working capital surplus of $47,036,000 as at March 31, 2016.
Avcorp Industries Inc. (TSX: AVP) (the “Company”, “Avcorp” or the “Avcorp Group”) today announced its financial results for the three and nine month periods ended September 30, 2016. All amounts are in Canadian currency unless otherwise stated.
Avcorp Industries Inc. (TSX: AVP) (the “Company”, “Avcorp” or the “Avcorp Group”) is pleased to announce that it has been awarded a long-term production contract with the Aerospace Company of Fuji Heavy Industries Ltd.
(“FHI”), a tier-one supplier to major original equipment manufacturers (“OEM”) of
commercial and defence aircraft around the world.
Move designed to optimize work flows and generate significant annual cost savings
Avcorp Industries Inc. (TSX: AVP) (the “Company”, “Avcorp” or the “Avcorp Group”) announced today that it has closed a $5 Million USD unsecured loan facility.
Avcorp Industries Inc. (TSX: AVP) (the “Company”, “Avcorp” or the “Avcorp Group”) today announced that it has been awarded multiple production contracts from Boeing.
Avcorp Industries Inc. (TSX: AVP) (the “Company”, “Avcorp” or the “Avcorp Group”) today announced its second quarter financial results for the quarter ended June 30, 2016.
Avcorp Industries and the University of British Columbia have agreed to explore the establishment of a Learning Factory for Advanced Composites at UBC’s Okanagan campus.
Avcorp Composite Fabrication Inc. (ACF), located in Gardena, California (Avcorp Industries Inc. most recent acquisition) is pleased to announce that it has reached a Collective Bargaining Agreement with the Glass Molders and Plastics Union (GMP) Local 19 for a six (6) year labor contract.
Avcorp Industries Inc. (TSX: AVP) (the “Company”, “Avcorp” or the “Avcorp Group”) is pleased to announce it has been awarded a contract extension with Lockheed Martin. The agreement extends into 2020 the current composite fabrication work scope, at Avcorp’s Gardena California facility, for F-35 wing skin panels, nacelle panels and body access panels.
Avcorp Industries Inc. (TSX: AVP) (the “Company”, “Avcorp” or the “Avcorp
Group”) today announced that at its annual meeting of shareholders held on May 19, 2016
(the “Meeting”), all directors nominated as listed in the management proxy circular dated
April 21, 2016 were elected.