Firan Technology Group ("FTG" or "the Corporation") Announces Full Year and Fourth Quarter 2016 Financial Results
(firmenpresse) - TORONTO, ONTARIO -- (Marketwired) -- 02/08/17 -- Firan Technology Group Corporation (TSX: FTG) today announced financial results for the full year and fourth quarter 2016.
"The year 2016 saw a dramatic change in FTG with the completion of two acquisitions," stated Brad Bourne, President and Chief Executive Officer. He added, "As we transition the revenue from these acquisitions to existing FTG facilities, we will drive up utilization rates and see increased profitability."
Full Year Results: (twelve months ended Nov 30, 2016 compared with twelve months ended Nov 30, 2015)
Fourth Quarter Results: (three months ended Nov 30, 2016 compared with three months ended Nov 30, 2015)
Business Highlights
FTG accomplished many goals in 2016 that continue to improve the Corporation and position it for the future, including:
For FTG, overall sales increased by $15.1M or 20.9%, from $72.0M in FY2015 to $87.1M in FY2016. Both Circuits and Aerospace participated in the growth in 2015. For the fourth quarter, sales were $27.2M, an increase of $8.5M or 45% versus the same period last year, as the full benefit of the acquisitions are seen in FTG's revenues.
Revenues benefited from the PhotoEtch acquisition which closed on March 18th and contributed $6.0M in incremental sales during the remaining 8.5 months subsequent to the acquisition. This translates into an $8.5M annual run rate, well above our expectations which was $6.0M annually. The Teledyne PCT acquisition closed on July 8th and contributed $11.5M during the 5.5 months subsequent to the acquisition. This is tracking at over $24M, also well above our target of 75% of historic revenues or $15.6M annually. A portion of this demand results from some customers placing short term demand related to safety stock requirements and is not expected to be sustained after the transition period. Excluding the acquisitions, revenues were down $2.3M or 3.2% compared to full year 2015.
The Circuits Segment sales were up $2.5M or 4.6% in 2016 versus 2015. In Q4 2016, sales were up $1.5M or 10.7% compared to Q4 2015.
For the Aerospace segment, sales in 2016 were $30.3M compared to $17.7M last year resulting in a 70.8% growth rate. In Q4 2016, sales were up $7.0M or 144.7% compared to Q4 2015.
Gross margins in 2016 were up $1.3M compared to 2015. While the benefits of the acquisitions are seen immediately in revenues, the benefits to gross margins will only result once the acquired facilities are closed and the manufacturing activity is moved to existing FTG facilities.
Earnings before interest, tax, depreciation and amortization (EBITDA) for 2016 was $10.2M, an increase from $7.0M in 2015.
The following table reconciles EBITDA(2) to the net earnings FY 2016.
Net profit at FTG in 2016 was $5.9M compared to a net profit of $9.5M in 2015. The profit in 2015 included a gain from a $6.7M recovery of investment tax credits, and a $2M foreign exchange gain, neither of which were significant in the 2016 results. In 2016, results were positively impacted by bargain purchase gains, offset by restructuring charges for a net benefit of $3.1M. Also as a result of the acquisitions, there was a $5.3M intangible asset created which will be amortized over 5 years. In 2016, this amortization negatively impacted earnings by $0.4M.
The Circuits segment net earnings before corporate and interest and other costs was $9.8M in 2016 compared to $5.9M in 2015.
The Aerospace net earnings before corporate and interest and other costs was $2.5M in 2016 versus $0.6M in 2015. Costs in 2016 related to the development of the C919 cockpit assemblies and one new program of $1.3M were treated as deferred development and not expensed.
Cash flow from operations after investments in capital equipment and deferred development but before the acquisitions and related restructuring in 2016 was $2.5M, compared to a cash flow of $3.6M in 2015.
As at November 30, 2016, the Corporation's net working capital was $22.4M, an increase of $7.4M over November 30, 2015, primarily due to the working capital resulting from the acquisitions completed during the year.
The Corporation will host a live conference call on Thursday February 9, 2017 at 8:30 am (EST) to discuss the results of FY2016.
Anyone wishing to participate in the call should dial 416-340-2220 or 1-866-225-2055 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 February 23, 2017 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 4501417.
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:
FTG Circuits is a manufacturer of high technology, high reliability printed circuit boards. Our customers are leaders in the aviation, defense, and high technology industries. FTG Circuits has operations in Toronto, Ontario, Chatsworth, California, Hudson, New Hampshire and a joint venture in Tianjin, China.
FTG Aerospace manufactures illuminated cockpit panels, keyboards and sub-assemblies for original equipment manufacturers of aerospace and defense equipment. FTG Aerospace has operations in Toronto, Ontario, Chatsworth, California, Fort Worth, Texas and Tianjin, China.
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.
FIRAN TECHNOLOGY GROUP CORPORATION
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Consolidated Statements of Earnings
FIRAN TECHNOLOGY GROUP CORPORATION
Consolidated Statements of Comprehensive Income
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Consolidated Statements of Changes in Equity
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Consolidated Statements of Cash Flows
Contacts:
Firan Technology Group Corporation
Bradley C. Bourne
President and CEO
(416) 299-4000 x 314
Firan Technology Group Corporation
Melinda Diebel
Vice President and CFO
(416) 299-4000 x 264
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Datum: 08.02.2017 - 22:10 Uhr
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News-ID 522971
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