Firan Technology Group ("FTG") Announces Second Quarter 2016 Financial Results
(firmenpresse) - TORONTO, ONTARIO -- (Marketwired) -- 07/11/16 -- Firan Technology Group Corporation (TSX: FTG) today announced financial results for the second quarter 2016.
"The second quarter of 2016 saw record sales for FTG," stated Brad Bourne, President and Chief Executive Officer. He added, "These record sales are enabling us to report strong earnings while still investing in our future. In the quarter, we completed one acquisition and signed an agreement for a second one. In both cases, the acquisitions increase our access to key new markets and customers. Our intentions are to transition the work to existing FTG facilities and rapidly drive up our utilization rates thereby maximizing the profit potential of these deals."
Second Quarter Results: (three months ended May 27, 2016 compared with three months ended May 29, 2015)
Year-to-Date Results: (six months ended May 27, 2016 compared with six months ended May 29, 2015)
Business Highlights
FTG accomplished many goals in the second quarter of 2016 that continue to improve the Corporation and position it for the future, including:
For FTG, overall sales increased by $1.0M or 5.3% from $18.8M in Q2 2015 to $19.8M in Q2 2016. Both business segments contributed to the growth. Revenues benefited from the PhotoEtch acquisition which closed on March 18th and contributed $1.3M in incremental sales during the quarter. The Teledyne PCT acquisition closed after the quarter end and therefore did not contribute to sales in Q2. Revenues also benefited from the weakening of the Canadian dollar versus the US dollar which was down 6 cents (5%) in Q2 2016 versus the same quarter last year. Over 80% of FTG's revenues are denominated in US dollars. For the year-to-date, sales were up $1.6M or 4.6%.
The Circuits Segment sales were up $0.4M or 3.1% in Q2 2016 versus Q2 2015. On a year-to-date basis, Circuits sales were up $0.2M or 1%.
For the Aerospace segment, sales in Q2 2016 were $5.6M compared to $5.0M in the same quarter last year resulting in an 11% growth rate. Included in the Q2 2016 results are $1.3M in sales from the acquisition of PhotoEtch. Year-to-date sales were up $1.4M or 16%.
Gross margins in Q2 2016 were flat compared to Q2 2015. The benefit of increased sales were offset by negligible margins at the Fort Worth facility subsequent to its acquisition.
Earnings before interest, tax, depreciation and amortization (EBITDA) for FTG for trailing twelve months is $7.6M.
The following table reconciles EBITDA(2) to the net earnings for Q2, 2016 and trailing 12 months.
Net profit after tax at FTG in Q2 2016 was $1.4M compared to a net profit of $1.1M in Q2 2015. This improvement is the result of higher sales, the gain on the purchase of PhotoEtch and lower R&D spending offset by the restructuring charge and by higher foreign exchange losses.
The Circuits segment net earnings before corporate and interest and other costs was $1.7M in Q2 2016 compared to $1.6M in Q1 2015. The Circuits joint venture in China did not have a material impact on profitability.
The Aerospace net earnings before corporate and interest and other costs increased to $0.7M versus $0.2M in Q2 2015. The results benefited from the gain on the acquisition of PhotoEtch offset by a restructuring charge and operating losses at PhotoEtch in the two months after its acquisition. Costs related to the development of the C919 cockpit assemblies and one new program were treated as deferred development and not expensed.
As at May 27, 2016, the Corporation's net working capital was $17.0M, an increase of $2.0M over year end 2015, primarily due to the assets acquired from PhotoEtch.
The Corporation will host a live conference call on Monday, July 11, 2016 at 8:30 am (EDT) to discuss the results of Q2 2016.
Anyone wishing to participate in the call should dial 416-340-2216 or 1-866-223-7781 and identify that you are calling to participate in the FTG conference call. The Chairperson is Mr. Brad Bourne. A replay of the call will be available until July 25, 2016 and will be available on the FTG website at . The number to call for a rebroadcast is 905-694-9451 or 1-800-408-3053, pass code 1100669.
ABOUT FIRAN TECHNOLOGY GROUP CORPORATION
FTG is an aerospace and defense electronics product and subsystem supplier to customers around the globe. FTG has two operating units:
The Corporation's shares are traded on the Toronto Stock Exchange under the symbol FTG.
FORWARD-LOOKING STATEMENTS
This news release contains certain forward-looking statements. These forward-looking statements are related to, but not limited to, FTG's operations, anticipated financial performance, business prospects and strategies. Forward-looking information typically contains words such as "anticipate", "believe", "expect", "plan" or similar words suggesting future outcomes. Such statements are based on the current expectations of management of the Corporation and inherently involve numerous risks and uncertainties, known and unknown, including economic factors and the Corporation's industry, generally. The preceding list is not exhaustive of all possible factors. Such forward-looking statements are not guarantees of future performance and actual events and results could differ materially from those expressed or implied by forward-looking statements made by the Corporation. The reader is cautioned to consider these and other factors carefully when making decisions with respect to the Corporation and not place undue reliance on forward-looking statements. Other than as may be required by law, FTG disclaims any intention or obligation to update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise.
Additional information can be found at the Corporation's website
Contacts:
Firan Technology Group Corporation
Bradley C. Bourne
President and CEO
(416) 299-4000 x314
Firan Technology Group Corporation
Joseph R. Ricci
Vice President and CFO
(416) 299-4000 x309
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Datum: 11.07.2016 - 11:00 Uhr
Sprache: Deutsch
News-ID 482420
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