CTO Circa Enterprises Inc

CALGARY, Nov. 7, 2013 /CNW/ - Circa Enterprises Inc. (CTO-TSXV) (the "Company" or "Circa"), a manufacturer of equipment for the telecommunication, electrical utility, and construction industries, reports results of operations for the third quarter ended September 30, 2013.

Summary of third quarter operating results:

• Consolidated sales of $7.1 million, representing a 21.3% increase, compared to Q3 2012 sales of $5.9 million.
• Profit for the period from operations for the third quarter of 2013 of $455,000, compared to profit for the period from operations of $84,000 for Q3 2012.
• EBITDA of $680,000 for Q3 2013, compared to EBITDA of $210,000 for Q3 2012 (see below for explanation and calculation of EBITDA).
• Adjusted EBITDA of $680,000 for Q3 2013, compared to Adjusted EBITDA of $218,000 for Q3 2012 (see below for explanation and calculation of Adjusted EBITDA).

Summary of year-to date operating results:

• Consolidated sales of $17.3 million for the nine months ended September 30, 2013, compared to sales of $17.2 million for the nine months ended September 30, 2012.
• Profit for the period from operations for the nine months ended September 30, 2013 of $429,000, compared to Profit for the period from operations of $379,000 for the same period in 2012.
• EBITDA of $793,000 for the nine month period ended September 30, 2013, compared to EBITDA of $803,000 for the same period in 2012.
• Adjusted EBITDA of $844,000 for the nine month period ended September 30, 2013 compared to Adjusted EBITDA of $856,000 for the nine months ended September 30, 2012.

EBITDA is earnings before interest, taxes, depreciation and amortization.  Adjusted EBITDA is earnings before interest, taxes, depreciation and amortization and is adjusted for other non-recurring items and non-cash items. EBITDA and Adjusted EBITDA are a non-IFRS financial measures and do not have any standardized meaning prescribed by International Financial Reporting Standards and, therefore, may not to be comparable to similar measures presented by other issuers.  Management believes that EBITDA and Adjusted EBITDA are useful supplemental measures, which provides an indication of the results generated by Circa's primary business activities prior to consideration of how those activities are financed, amortized or taxed.  Readers are cautioned, however, that EBITDA and Adjusted EBITDA should not be construed as an alternative to comprehensive income determined in accordance with IFRS as an indicator of the Company's financial performance. EBITDA and Adjusted EBITDA are calculated by the Company as follows:

Consolidated sales for the third quarter of 2013 were $7.1 million - a $1.2 million or 21.3% increase over the same period in 2012. The improvement in sales was due primarily to a 47.9% increase in Telecom segment sales as the Company saw an increase in orders from a large OEM customer. Regular Telecom sales were up 14.8% in the quarter compared to Q3 2012 as the division recovered from a slow start in 2013. Circa Metals saw a modest increase in sales in the third quarter over the prior year; from $3.3 million in Q3 2012 compared to $3.4 million in Q3 2013.  The increase was due to custom manufacturing work, partially offset by sales of its Hydel brand products.

As a result of this increase in sales, the Company's quarterly operating profit increased from $151,000 in Q3 2012 to $622,000 in Q3 2013. The Company posted after tax profit of $455,000 and a total comprehensive income of $433,000 for the quarter compared to after tax profit of $84,000 and total comprehensive loss of $4,000 in the third quarter of 2012.

Grant Reeves, Circa's Interim Chief Executive officer, stated:

"The 2013 third quarter results are a significant improvement over the prior year and results posted for the first half of the year. Telecom sales in the U.S. have improved from the run rate earlier in 2013 as project activity at a key OEM customer ramp up. We expect an increase in activity going forward as a result of stronger demand.  The Circa Metals business segment posted a strong third quarter. Overall sales were up resulting in better operating margins compared to the prior year. The division rationalized its product mix with greater emphasis on margins which is evident in the bottom line.  Circa's strong balance sheet continues to position the company for strategic opportunities to expand its markets and product line."

Circa Enterprises Inc. is a public company with operations in Alberta, Ontario and Florida. The outstanding common shares of Circa Enterprises Inc. are listed and trade on the TSX Venture Exchange under the trading symbol CTO. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

The Company's quarterly financial statements and related management's discussion and analysis have been filed with certain securities regulatory authorities in Canada and may be accessed electronically through the SEDAR website at www.sedar.com.

SOURCE Circa Enterprises Inc.