Avcorp Industries Inc. (TSX: AVP) said it has announced its third quarter financial results for the quarter ended September 30, 2015.
During the quarter ended September 30, 2015 Avcorp Group revenues totaled USD21,610,000 as compared to USD14,675,000 revenue for the same quarter in the previous year, a 47 percent quarterly revenue increase for 2015 as compared to 2014.
Both commercial and defence programs, for all customers, have experienced increased demand during the current quarter. Furthermore, new program introductions have added to current year revenues as the Group ramps up to full rates of production. Year-to-date 2015 revenues amount to USD57,640,000 as compared to USD53,360,000 for the same nine month period in 2014, an 8 percent increase.
Increased revenues during the current quarter relative to the same quarter in 2014, augmented by production efficiencies, have improved current quarter production margins by USD2,758,000 over Q3 2014.
Significant factors underlying the current quarter loss include: USD1,782,000 (year-to-date USD2,273,000) for expenditures in support of current merger and acquisition initiatives; as well, there remain within operations significant levels of unutilized plant capacity. The company has expensed USD1,184,000 of overhead costs during the current quarter (September 30, 2014: USD1,300,000) in respect of unutilized plant capacity. New program revenue growth, which continued in the current quarter, will be the largest contributing factor to reducing the company´s cost structure and contributing towards offsetting idle capacity costs.
The Avcorp Group designs and builds major airframe structures for some of the world´s leading aircraft companies, including BAE Systems, Boeing and Bombardier.