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Avcorp announces 2019 Second Quarter Financial Results
Thursday, September 19, 2019Company Profile | Follow Company
Delta, BC, September 19, 2019--(T-Net)--Avcorp Industries Inc. (TSX: AVP) announced its financial results for the quarter ended June 30, 2019. All amounts are in Canadian currency unless otherwise stated.
2019 Highlights
Key fiscal year 2019 financial results include:
Review of 2019 Second Quarter Financial Results
For the quarter ended June 30, 2019, the Avcorp Group recorded losses from operations totaling $2,903,000 from $46,799,000 revenue, as compared to $286,000 operating income from $43,292,000 revenue for the previous quarter.
It should be noted that 2019 operating loss benefited by $585,000 income from amortization of onerous contracts provision (June 30, 2018: $4,660,000 amortization of unfavourable contract liability and onerous contract liability) and was impacted by a loss of $1,789,000 due to net claims. Continued consolidation of operating costs have resulted in reduced current quarter operating losses, in comparison to the same quarter in 2018 after the benefit of amortization to income of unfavourable contracts liability and onerous contracts provisions, and the loss impact of the net claims have been removed.
During the quarter ended June 30, 2019, cash flows from operating activities, excluding the impact of changes in non-cash working capital, were $249,000 of cash as compared with utilization of $1,095,000 of cash during the quarter ended June 30, 2018.
As at June 30, 2019, the Company had $916,000 cash on hand (December 31, 2018: $2,051,000) and had utilized $74,575,000 of its operating line of credit (December 31, 2018: $85,840,000). The Company has a working capital deficit of $62,078,000 as at June 30, 2019 which has decreased from the December 31, 2018 $71,503,000 deficit.
Working capital surplus/deficit is defined as the difference between current assets and current liabilities. However, the Company's accounts receivable, contract assets, and inventories net of accounts payable, amount to a $22,143,000 surplus as at June 30, 2019 (December 31, 2018: $22,000,000 surplus). The Company's accumulated deficit as at June 30, 2019 is $123,837,000 (December 31, 2018: $132,878,000).
As at March 31, 2019, the Company had $2,405,000 cash on hand (December 31, 2018: $2,051,000) and had utilized $72,005,000 of its operating line of credit (December 31, 2018: $85,840,000). The Company has a working capital deficit of $61,345,000 as at March 31, 2019 which has decreased from the December 31, 2018 $71,503,000 deficit. Working capital surplus/deficit is defined as the difference between current assets and current liabilities. However, the Company's accounts receivable, contract assets, and inventories net of accounts payable, amount to a $19,148,000 surplus as at March 31, 2019 (December 31, 2018: $22,000,000 surplus).
The Company's accumulated deficit as at March 31, 2019 is $119,269,000 (December 31, 2018: $132,878,000).
About Avcorp
The Avcorp Group designs and builds major airframe structures for some of the world's leading aircraft companies, including BAE Systems, Boeing, Bombardier, Lockheed Martin and Subaru Corporation. The Avcorp Group has more than 60 years of experience, over 700 skilled employees and 636,000 square feet of facilities. Avcorp Structures & Integration located in Delta British Columbia, Canada is dedicated to metallic and composite aerostructures assembly and integration; Avcorp Engineered Composites located in Burlington Ontario, Canada is dedicated to design and manufacture of composite aerostructures, and Avcorp Composite Fabrication located in Gardena California, USA has advanced composite aerostructures fabrication capabilities for composite aerostructures.
The Avcorp Group 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. Comtek Advanced Structures Ltd., at our Burlington, Ontario, Canada location also provides aircraft operators with aircraft structural component repair services for commercial aircraft.
Avcorp Composite Fabrication Inc. is wholly owned by Avcorp US Holdings Inc. Both companies are incorporated in the State of Delaware, USA, and are wholly owned subsidiaries of Avcorp Industries Inc.
Comtek Advanced Structures Ltd., incorporated in the Province of Ontario, Canada, is a wholly owned subsidiary of Avcorp Industries Inc.
Avcorp Industries Inc. is a federally incorporated reporting company in Canada and traded on the Toronto Stock Exchange (TSX:AVP).
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