Avcorp revenues rise 19% YoY

Avcorp Industries Inc. (TSX: AVP) said that during the year ended December 31, 2015, its group revenues totaled USD79,925,000 as compared to USD67,104,000 revenue for the previous year, a 19 percent annual revenue increase year over year.

Both commercial and defence programs, for all customers, have experienced increased demand during the current year.

During the year ended December 31, 2015, the Avcorp Group recorded a loss from operations of USD12,114,000 on USD79,925,000 revenue, as compared to an USD8,038,000 operating loss on USD67,104,000 revenue for the previous year.

During the current year Avcorp incurred expenses totaling USD5,865,000 in support of its current merger and acquisition initiatives. Although recent customer contract awards will commence to increase facility utilization, there remain within operations significant levels of unutilized plant capacity within the company´s Delta, British Columbia facility.

The company has expensed USD4,906,000 of overhead costs during the current year (December 31, 2014: USD5,047,000) in respect of unutilized plant capacity.

Net income for the current year amounted to USD3,208,000 as compared to a net loss of USD7,950,000 for the year ended December 31, 2014. A USD15,973,000 gain was recorded in 2015, arising from the December 18, 2015 acquisition of the composite Aerostructures division of Hitco.

The Avcorp Group designs and builds major airframe structures for aircraft companies, including BAE Systems, Boeing, Bombardier, Fuji Heavy Industries and Lockheed Martin.