Firan Technology Group Corporation (“FTG” or “Corporation”) Announces Second Quarter 2018 Financial Results

World News: . []

TORONTO, July 11, 2018 (GLOBE NEWSWIRE) -- Firan Technology Group Corporation (TSX:FTG) today announced financial results for the second quarter of 2018.

“The second quarter of 2018 began to demonstrate the earnings benefits from our acquisitions in 2016,” stated Brad Bourne, President and Chief Executive Officer. He added, “While we continued to experience some increased costs in the quarter related to the transition, we also achieved a dramatic improvement in our net earnings and cash flow.”

FTG accomplished many goals in the second quarter of 2018 that continue to improve the Corporation and position it for the future, including:

For FTG, overall sales increased by $3.4M or 13.2% from $25.5M in Q2 2017 to $28.9M in Q2 2018. This increase was experienced by the Aerospace segment and was driven by the shipment of the majority of the C-130 program for CAE from the Aerospace Toronto facility and a ramp up of activity in the Aerospace Chatsworth facility. Offsetting these gains, was the impact of changes in the foreign exchange rates (the Canadian dollar was 6 cents stronger in Q2 this year which translated into a reduction in sales of approximately $1M).

For the year-to-date period, sales were up $3.7M or 7.1% due to the items noted above and the one-time revenue recognition of $5.0M from the C919 program with SAVIC in the first quarter of this year.

Sales in the Circuits segment were down $0.4M or 2.3% comparing Q2 2018 versus Q2 2017. On a year-to-date basis, Circuits segment sales were down by $1.7M or 5.3%.

For the Aerospace segment, sales in Q2 2018 were $12.7M compared to $8.9M in the same quarter last year resulting in a 41.8% growth rate. Included in the Q2 2018 results are $1.5M in sales from the acquisition of PhotoEtch and approximately $4.5M of Teledyne PCT incremental sales. Year-to-date sales were up $5.4M or 26.1% in the Aerospace segment.

Gross margins in Q2 2018 were up $1.5M or 25.9% compared to Q2 2017. The benefit of increased sales and the cost savings of closing the Teledyne PCT facility was partially offset by some transition related costs.

Earnings before interest, tax, depreciation and amortization (EBITDA) for FTG for Q2 2018 was $3.4M and $8.4M for the trailing twelve months.

The following table reconciles EBITDA  to the net earnings for Q2 2018 and trailing twelve months.

Net earnings at FTG in Q2 2018 were $1.3M compared to a net profit of $0.1M in Q2 2017. Q2 2018 had higher sales and the elimination of the Teledyne PCT facility costs as well as reductions in R&D spending.  These improvements were partially offset by some restructuring costs this year.

The Circuits segment net earnings before corporate and interest and other costs was $2.8M in Q2 2018 compared to $2.6M in Q2 2017. The Circuits joint venture in China was profitable in Q2 of this year.

The Aerospace segment’s net earnings before corporate and interest and other costs was $0.1M versus ($1.0M) in Q2 2017. Q2 2017 included operating and transitional costs for the Teledyne PCT facility which was closed during that quarter. FTG Aerospace Tianjin was profitable in Q2 of this year.

As at June 1, 2018, the Corporation’s net working capital was $27.8M, an increase of $3.4M over 2017 year end. Higher accounts receivables and net bank debt was offset by higher customer deposits.

The Corporation will host a live conference call on Thursday, July 12, 2018 at 8:30 am (EDT) to discuss the results of Q2 2018.

Anyone wishing to participate in the call should dial 647-427-2311 or 1-866-521-4909 and identify that you are calling to participate in the FTG conference call. The Chairperson is Mr. Brad Bourne. A replay of the call will be available until July 26, 2018 and will be available on the FTG website at www.ftgcorp.com. The number to call for a rebroadcast is 416-621-4642 or 1-800-585-8367, pass code 3678495.

ABOUT FIRAN TECHNOLOGY GROUP CORPORATION

FTG is an aerospace and defense electronics product and subsystem supplier to customers around the globe. FTG has two operating units:

FTG Circuits is a manufacturer of high technology, high reliability printed circuit boards. Our customers are leaders in the aviation, defense, and high technology industries. FTG Circuits has operations in Toronto, Ontario, Chatsworth, California and a joint venture in Tianjin, China.

FTG Aerospace manufactures illuminated cockpit panels, keyboards and sub-assemblies for original equipment manufacturers of aerospace and defense equipment. FTG Aerospace has operations in Toronto, Ontario, Chatsworth, California, Fort Worth, Texas and Tianjin, China.

The Corporation's shares are traded on the Toronto Stock Exchange under the symbol FTG.

FORWARD-LOOKING STATEMENTS

This news release contains certain forward-looking statements. These forward-looking statements are related to, but not limited to, FTG’s operations, anticipated financial performance, business prospects and strategies. Forward-looking information typically contains words such as “anticipate”, “believe”, “expect”, “plan” or similar words suggesting future outcomes. Such statements are based on the current expectations of management of the Corporation and inherently involve numerous risks and uncertainties, known and unknown, including economic factors and the Corporation’s industry, generally. The preceding list is not exhaustive of all possible factors. Such forward-looking statements are not guarantees of future performance and actual events and results could differ materially from those expressed or implied by forward-looking statements made by the Corporation. The reader is cautioned to consider these and other factors carefully when making decisions with respect to the Corporation and not place undue reliance on forward-looking statements. Other than as may be required by law, FTG disclaims any intention or obligation to update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise.

Additional information can be found at the Corporation’s website

More news and information about Firan Technology Group Corporation

Published By:

Globe Newswire: 22:48 GMT Wednesday 11th July 2018

Published: .

Search for other references to "firan" on SPi News


Previous StoryNext Story

SPi News is published by Sector Publishing Intelligence Ltd.
© Sector Publishing Intelligence Ltd 2018. [Admin Only]
 
Sector Publishing Intelligence Ltd.
Ground Floor Offices, Little Keep Gate, Barrack Road, Dorchester, Dorset DT1 1AH
Registered in England and Wales number 0751938.
 
Privacy Policy | Terms and Conditions | Contact Us
 

Advertising on SPi News: Information For Advertisers