Avcorp Industries Inc. (TSX: AVP) has announced its financial results for the quarter ended June 30, 2017, the company said.
All amounts are in Canadian currency unless otherwise stated.
On April 4, 2017, the company collected the final amount of consideration receivable from SGL Carbon SE (“SGL”) for the acquisition of the US-based composite Aerostructures division of Hitco, a subsidiary of Frankfurt-listed SGL (“Hitco”), amounting to USDUSD 9.2 million.
On May 26, 2017, the company signed a loan agreement to replace the current agreement with a Canadian Chartered Bank, supported by a major customer, to access a USDUSD 58 million operating line of credit.
Effective July 6, 2017 the company and Panta Canada B.V. (“Panta”) amended a term loan held by Panta to provide for an extended maturity date. Panta is Avcorp´s majority shareholder owning approximately 65.5% of the issued and outstanding common shares on June 30, 2017. Panta is wholly owned by Panta Holdings B.V. Both companies are incorporated in The Netherlands and Jaap Rosen Jacobson, a director of the company, is the sole shareholder of Panta Holdings B.V.
On July 31, 2017 the company repaid a principal amount of USDUSD 2,500,000 plus interest accrued in the amount of USDUSD 285,000 of the Panta term loan.
On August 3, 2017 Panta exercised 12,105,327 warrants expiring August 17, 2017 at USD 0.07 whose aggregate price of USD 847,000 was deemed to be made by way of set-off against the Panta loan obligation.
New program start-up revenues contributed USD 1,367,000 in 2017 in commencement of the USD 523 million increase in order backlog which occurred in 2016 for new and legacy aircraft programs.
Leveraging of support personnel skills and capacity has allowed for a reduction in certain roles within the operating sites.
For the quarter ending June 30, 2017, the Avcorp Group recorded losses from operations totaling USD 11,170,000 from USD 36,686,000 revenue, which include costs incurred on start-up of new programs, as compared to USD 6,010,000 operating losses from USD 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 USD 12,085,000 of cash as compared with utilization of USD 13,293,000 of cash during the quarter ended June 30, 2016 (utilization for six months ended June 30, 2017: USD 21,788,000; utilization for six months ended June 30, 2016: USD 26,075,000).
The Avcorp Group designs and builds major airframe structures for some of the world´s 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, lightâweight, 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).