Vancouver, BC, August 11, 2011--(T-Net)--Avcorp (AVP on the Toronto Stock Exchange) today announced its financial results for the quarter ended June 30, 2011.
During the quarter ended June 30, 2011, the Company recorded a loss from operations of $752,000 on $20,492,000 revenue, as compared to a $2,191,000 loss from operations on $18,710,000 revenue for the same quarter preceding year; and a net loss for the current quarter of $1,148,000 as compared to a net loss of $2,213,000 for the quarter ended June 30, 2010.
The Company has realized revenue growth during the second quarter 2011 relative to the same quarter in 2010 for most major structures deliveries; while customer demand for non-original equipment manufacturers' products and services has increased slightly.
Earnings before interest, taxes, depreciation and amortization (EBITDA) were positive $258,000 for the current quarter compared to a negative EBITDA of $957,000 for the quarter ended June 30, 2010.
Cash flows from operating activities during the current quarter utilized $785,000 of cash resulting from working capital growth in support of increased revenues, as well as operating losses; as compared to providing $1,189,000of cash during the quarter ended June 30, 2010. The Company has a working capital surplus of $10,897,000 as atJune 30, 2011 (December 31, 2010: $1,493,000 surplus) and an accumulated deficit of $76,156,000 at June 30, 2011 (December 31, 2010: $73,564,000).
Avcorp designs and builds major airframe structures for some of the world's leading aircraft companies, including Boeing, Bombardier, and Cessna. With more than 50 years of experience, over 500 skilled employees and 354,000 square feet of facilities, 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. Avcorp is a Canadian public company traded on the Toronto Stock Exchange (Toronto:AVP.TO).
This management discussion and analysis should be read in conjunction with the Company's audited financial statements. Certain statements in this report and other oral and written statements made by the Company from time to time are forward-looking statements, including those that discuss strategies, goals, outlook or other non-historical matters; or projected revenues, income, returns or other financial measures. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those contained in the statements, including the following: (a) the ability of the Company to renegotiate its debt agreements under which it is in default; (b) the extent to which the Company is able to achieve savings from its restructuring plans; (c) uncertainty in estimating the amount and timing of restructuring charges and related costs; (d) changes in worldwide economic and political conditions that impact interest and foreign exchange rates; (e) the occurrence of work stoppages and strikes at key facilities of the Company or the Company's customers or suppliers; (f) government funding and program approvals affecting products being developed or sold under government programs; (g) cost and delivery performance under various program and development contracts; (h) the adequacy of cost estimates for various customer care programs including servicing warranties; (i) the ability to control costs and successful implementation of various cost reduction programs; (j) the timing of certifications of new aircraft products; (k) the occurrence of further downturns in customer markets to which the Company products are sold or supplied or where the Company offers financing; (l) changes in aircraft delivery schedules or cancellation of orders; (m) the Company's ability to offset, through cost reductions, raw material price increases and pricing pressure brought by original equipment manufacturer customers; (n) the availability and cost of insurance; (o) the Company's ability to maintain portfolio credit quality; (p) the Company's access to debt financing at competitive rates; and (q) uncertainty in estimating contingent liabilities and establishing reserves tailored to address such contingencies.