Firan Technology Group ("FTG") Announces First Quarter 2017 Results
(firmenpresse) - TORONTO, ONTARIO -- (Marketwired) -- 04/12/17 -- Firan Technology Group Corporation (TSX: FTG) today announced financial results for the first quarter 2017.
"The first quarter of 2017 saw the continued benefit on the top line from the two acquisitions last year," stated Brad Bourne, President and Chief Executive Officer. He added, "With the closure of PhotoEtch complete and the planned closure of Teledyne PCT in Q2, the benefits of these acquisitions will translate to improved bottom line results as well."
First Quarter Results: (three months ended March 3, 2017 compared with three months ended Feb 26, 2016)
Business Highlights
FTG accomplished many goals in the first quarter of 2017 that continue to improve the corporation and position it for the future, including:
For FTG, overall sales increased by $10.2M or 60%, from $16.9M in Q1 2016 to $27.2M in Q1 2017. Both Circuits and Aerospace participated in the growth.
Revenues benefited from the PhotoEtch acquisition which closed on March 18, 2016 and the Teledyne PCT acquisition which closed on July 8, 2016. Total revenues related to the acquisitions was approximately $10.0M with about $8.0M coming from the Teledyne PCT facility in Hudson, NH and the balance coming from activity transitioned to existing FTG sites.
The Circuits Segment sales were up $2.9M or 23% in Q1 2017 versus Q1 2016.
For the Aerospace segment, sales in Q1 2017 were $11.7M compared to $4.4M in Q1 last year resulting in a 168% growth rate.
Gross margins in Q1 2017 were up $3.1M, or 83%, compared to Q1 2016. On a percentage basis, margins increased from 22.2% to 25.3% from Q1 last year to Q1 this year. 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 Q1 2017 was $2.2M, an increase from $1.2M in Q1 2016.
The following table reconciles EBITDA(2) to the net earnings for Q1, 2016.
Net profit at FTG in Q1 2017 was $0.8M compared to a net profit of $0.5M in Q1 2016. The profit in Q1 2017 was positively impacted by the increased activity from the acquisitions as well as the closure of the PhotoEtch plant in December 2016, offset by the ramp up of costs in the Chatsworth facilities in anticipation of the closure of the Teledyne PCT facility at the end of Q2, increased interest costs, a negative foreign exchange impact and amortization of intangible assets resulting from the two acquisitions last year. The amortization of intangible assets and deferred income taxes in Q1 both years are non-cash expenses.
The Circuits segment net earnings before corporate and interest and other costs was $2.4M in Q1 2017 compared to $1.4M in Q1 2016.
The Aerospace net earnings before corporate and interest and other costs was ($0.3M) in Q1 2017 versus ($0.2M) in Q1 2016. This segment will see the largest benefit from the closure of the Teledyne PCT facility and is currently incurring increased costs related to the ramp up in Chatsworth. It is also being allocated the majority of the amortization of intangible assets resulting from the acquisitions last year, and is still being impacted by lower engineering activity on development programs which results in more costs being expensed rather than going into deferred development.
Cash flow from operations after investments in capital equipment and deferred development, was $1.0M in Q1 2017 compared to cash usage of $0.6M in Q1 last year. Capital asset additions in Q1 2017 were $1.5M versus $0.4M in Q1 2016 with the majority of the expenditures related to the build of an outer layer manufacturing facility in the circuit board joint venture in China. The disposal of plant and equipment of $0.6M in Q1 2017 was non cash and related to the disposal of some assets from the Teledyne PCT acquisition that are not required at any FTG facility.
As at March 3, 2017, the Corporation's net working capital was $23.9M, an increase of $1.5M over November 30, 2016, primarily due to lower provisions and lower short term debt partially offset by lower accounts receivables.
The Corporation will host a live conference call on Thursday April 13, 2017 at 8:30 am (EST) to discuss the results of the first quarter of 2017.
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 April 27, 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, Passcode 1236437#.
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.
Additional information can be found at the Corporation's website .
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
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 12.04.2017 - 21:10 Uhr
Sprache: Deutsch
News-ID 536143
Anzahl Zeichen: 0
contact information:
Town:
TORONTO, ONTARIO
Kategorie:
Electronics & Communications
Diese Pressemitteilung wurde bisher 342 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Firan Technology Group ("FTG") Announces First Quarter 2017 Results"
steht unter der journalistisch-redaktionellen Verantwortung von
Firan Technology Group Corporation (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
