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Trading Symbol: AVP

03/28/2013 | PR Newswire

Trading Symbol: AVP

VANCOUVER, March 27, 2013 /PRNewswire/ - Avcorp Industries Inc. (TSX: AVP) (the "Company" or "Avcorp") today announced its financial results for the year ended December 31, 2012.

During the year ended December 31, 2012, the Company recorded income from operations of $24,002,000 on $89,337,000 revenue, as compared to a $362,000 operating loss on $86,018,000 revenue for the preceding year; and net income for the current year of $20,641,000 as compared to a net loss of $2,452,000 for the year ended December 31, 2011.

On November 16, 2012, Avcorp received the determination of an appointed arbitration panel constituted to adjudicate outstanding issues relating to cost reimbursements and compensation payable to Avcorp in connection with the transition of Cessna Aircraft Company ("Cessna") production work back to Cessna and other suppliers. A binding arbitration award was delivered to the Company on November 16, 2012. The quantum of damages was assessed by an arbitration panel at $27,391,000. The arbitration award, net of associated costs, amounted to $21,548,000.

On November 26, 2012 Cessna filed a complaint in the United States District Court For The District Of Kansas seeking to vacate the award as a manifest disregard for the law and in violation of public policy.

On December 21, 2012 Avcorp filed a memorandum in support of a motion to confirm final arbitration award, and dismiss the complaint in the United States District Court For The District Of Kansas.

Current year revenues have increased from the preceding year primarily as a result of significant increases in sales to The Boeing Company (Boeing) and BAE Systems (Operations) Limited (BAE), offset by the wind-down of Cessna programs. During the third quarter 2012, the Company renewed its long-term agreement with the Boeing Commercial Airplane Group (Boeing CA) which is forecasted to provide in excess of $83 million revenue over the next five years. Start-up and commencement of production deliveries for BAE Systems (Operations) Limited (BAE) F35 program has also contributed to an overall $146 million increase in order backlog during the current year.

Cash flows from operating activities during the year ended December 31, 2012 utilized $3,603,000 of cash as compared to utilizing $924,000 of cash during the year ended December 31, 2011. The Company has a working capital surplus of $34,819,000 as at December 31, 2012 which has significantly increased from the December 31, 2011 $14,663,000 surplus, as a result of the binding arbitration award. The Company's accumulated deficit as at December 31, 2012 was $55,375,000 (December 31, 2011: $76,016,000).

About Avcorp

Avcorp designs and builds major airframe structures for some of the world's leading aircraft companies, including BAE Systems, Boeing, and Bombardier. With more than 50 years of experience, over 400 skilled employees and 354,000 square feet of facilities in Delta BC and Burlington ON, 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. Our Burlington location also offers composite repairs for commercial aircraft. Avcorp is a Canadian public company traded on the Toronto Stock Exchange (TSX:AVP).

(signed)MARK VAN ROOIJ PRESIDENT and CHIEF EXECUTIVE OFFICER

 

Forward-Looking Statements

This release should be read in conjunction with the Company's unaudited financial statements contained in the Company's Annual Report and with the quarterly financial statements and accompanying notes filed with Sedar (www.sedar.com).

Certain statements in this release 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 extent to which the Company is able to achieve savings from its restructuring plans; (b) uncertainty in estimating the amount and timing of restructuring charges and related costs; (c) changes in worldwide economic and political conditions that impact interest and foreign exchange rates; (d) the occurrence of work stoppages and strikes at key facilities of the Company or the Company's customers or suppliers; (e) government funding and program approvals affecting products being developed or sold under government programs; (f) cost and delivery performance under various program and development contracts; (g) the adequacy of cost estimates for various customer care programs including servicing warranties; (h) the ability to control costs and successful implementation of various cost reduction programs; (i) the timing of certifications of new aircraft products; (j) the occurrence of further downturns in customer markets to which the Company products are sold or supplied or where the Company offers financing; (k) changes in aircraft delivery schedules or cancellation of orders; (l) the Company's ability to offset, through cost reductions, raw material price increases and pricing pressure brought by original equipment manufacturer customers; (m) the availability and cost of insurance; (n) the Company's ability to maintain portfolio credit quality; (o) the Company's access to debt financing at competitive rates; and (p) uncertainty in estimating contingent liabilities and establishing reserves tailored to address such contingencies.

 

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(prepared in accordance with IFRS, expressed in thousands of Canadian dollars)

 

CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)

(prepared in accordance with IFRS, expressed in thousands of Canadian dollars, except number of shares and per share amounts)

CONSOLIDATED STATEMENTS OF CASH FLOWS

(prepared in accordance with IFRS, expressed in thousands of Canadian dollars)

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(prepared in accordance with IFRS, expressed in thousands of Canadian dollars, except number of shares)

 

 

SOURCE Avcorp Industries Inc.


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