Avcorp Industries Inc. (TSX: AVP) has reported 2020 first quarter revenue of CDN 40,205,000 compared to CDN 42,225,000 in 2019, a decreased of CDN 2,020,000 as a result of lower deliveries caused by lower customer requirements, the novel Coronavirus and 737 MAX grounding, the company said.
First quarter 2020 operating loss was CDN 4,700,000 compared to operating income of CDN 15,057,000 in 2019. Operating loss improved by CDN 380,000 in comparison to 2019, after the benefit of the amortization of onerous contract provisions and a net claim settlement have been removed.
First quarter 2020 foreign exchange loss was CDN 2,858,000 (March 31, 2019: CDN 430,000 gain). The Canadian dollar significantly weakened against the US dollar resulting in a loss predominately from the translation of the Company´s US dollar denominated Bank indebtedness and Term debt.
2020 cash flows used in operating activities before changes in non-cash working capital was CDN 2,540,000 (March 31, 2019: cash inflow of CDN 12,998,000). 2020 cash flows used in operating activities worsened by CDN 1,107,000 relative to 2019, after the positive net cash settlement in 2019 of CDN 14,431,000 (USD 10,810,000).
On March 2, 2020, the Company entered into an amendment to the standby credit facility with Panta Canada B.V., securing and drawing an additional CDN 2,686,000 (USD 2,000,000).
The Avcorp Group designs and builds major airframe structures for aircraft companies, including BAE Systems, Boeing, Bombardier, Lockheed Martin and Subaru Corporation.