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Avcorp Announces 2017 Second Quarter Financial Results
Monday, August 28, 2017Company Profile | Follow Company
Delta, BC, August 29, 2017--(T-Net)--Avcorp Industries Inc. (TSX: AVP) today announced its financial results for the quarter ended June 30, 2017. All amounts are in Canadian currency unless otherwise stated.
2017 Highlights:
Review of 2017 Second Quarter Financial Results
For the quarter ending June 30, 2017, the Avcorp Group recorded losses from operations totaling $11,170,000 from $36,686,000 revenue, which include costs incurred on start-up of new programs, as compared to $6,010,000 operating losses from $50,234,000 revenue for the same quarter in the previous year.
During the quarter ended June 30, 2017, cash flows from operating activities, excluding the impact of changes in non-cash working capital, utilized $12,085,000 of cash as compared with utilization of $13,293,000 of cash during the quarter ended June 30, 2016 (utilization for six months ended June 30, 2017:
$21,788,000; utilization for six months ended June 30, 2016: $26,075,000).
Cash flows from operating activities were most significantly impacted as a result of operating losses incurred from the integration and production costs expended for the acquired Hitco operations; losses arising from unfavourable customer contracts assumed; operational, administrative, and legal expenditures incurred at Avcorp's Gardena facility; as well as new program introduction and start-up costs at the Delta facility.
As at June 30, 2017, the Company had $3,350,000 cash on hand (December 31, 2016: $3,960,000) and had utilized $27,776,000 of its operating line of credit (December 31, 2016: $17,111,000).
Based on net collateral provided to its bank, Avcorp Group is able to draw up to an additional $46,204,000 on its operating line of credit as at June 30, 2017 (December 31, 2016: $4,901,000).
The Company has a working capital deficit of $27,265,000 as at June 30, 2017 which has increased from the December 31, 2016 $5,439,000 deficit. Working capital surplus/deficit is defined as the difference between current assets and current liabilities.
However, the Company's accounts receivable and inventories net of accounts payable, amount to $41,531,000 as at June 30, 2017 (December 31, 2016: $38,399,000). The Company's accumulated deficit as at June 30, 2017 is $114,297,000 (December 31, 2016: $93,791,000).
The Company's complete financial statements and management's discussion and analysis for the year ended December 31, 2016 and quarter ended June 30, 2017 can be found at www.avcorp.com or at www.sedar.com.
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 (formerly Fuji Heavy Industries Inc.). The Avcorp Group has more than 50 years of experience, over 710 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).
Contact:
Sandi DiPrimo, Investor Relations Contact | 604-587-4938
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