Avcorp Industries Inc. (TSX: AVP) has announced revenue of CDN 164,770,000 in 2019, compared to CDN 170,710,000 in 2018, a decrease of CDN 1,323,000, in comparison to 2018, the company said.
Financial results include:
2019 operating loss was CDN 1,124,000 compared to operating income of CDN 26,917,000 in 2018. Operating loss improved by CDN 2,101,000 in comparison to 2018, after the benefit of amortization of unfavourable contracts liability and onerous contracts provisions, net contract modification, and the net claims impact have been removed.
2019 cash flows from operating activities was CDN 10,911,000 compared to utilization of CDN 16,029,000 in 2018. 2019 cash flows from operating activities improved by CDN 12,508,000, relative to 2018, after the net cash settlement of CDN 14,431,000 from the agreement with Hitco Carbon Composites Inc., SGL Carbon, SGL, and SGL Carbon SE and a customer has been removed.
During the second quarter of 2019, the Company received all required customer approvals for the 737 MAX spoiler program; subsequently, on July 5, 2019 the Company successfully shipped the first shipset.
On September 25, 2019 the Company reached a new labour agreement with the International Association of Machinists and Aerospace Workers at its Delta, British Columbia facility. The six-year labour agreement was ratified by the Union and will expire on March 31, 2025 bringing the company long term stability.
On November 15, 2019 the Company amended its loan agreement with a Canadian Chartered Bank to extend the maturity date of the existing operating credit facility to June 30, 2021, which is supported by a major and material customer of the Company by way of a guarantee.
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.