CALGARY, May 9, 2014 /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 first quarter
ended March 31, 2014.
Summary of first quarter operating results:
- Q1 2014 consolidated sales of $7.3
million, representing a 60.8% increase compared to
Q1 2013 sales of $4.6
million
- Profit for the period from continuing operations for Q1 2014 of
$275,000 compared to a loss from
continuing operations of $204,000 for
Q1 2013
- Earnings per share of $0.03 for
Q1 2014 compared to a loss per share of $0.02 in Q1 2013
- EBITDA of $464,000 for Q1 2014
compared to EBITDA of ($188,000) for
Q1 2013 (see below for explanation and calculation of EBITDA)
- Working capital of $7.8 million,
including $737,000 in cash and no
outstanding debt at March 31, 2014
EBITDA is earnings before interest, taxes, depreciation and
amortization. EBITDA is a non-IFRS financial measure and does
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 is a useful supplemental measure,
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 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
is calculated by the Company as follows:
|
Three
months
31 Mar
2014
|
Three
months
31 Mar
2013
|
|
$000's
|
$000's
|
|
Profit (loss) for the
period from continuing operations
|
275
|
(204)
|
|
Income
taxes
|
137
|
(42)
|
|
Interest
|
1
|
3
|
|
Depreciation and
amortization
|
51
|
55
|
|
EBITDA
|
464
|
(188)
|
Consolidated sales for the first quarter of 2014 were
$7.3 million -- a $2.8 million or 60.8% increase over the same
period in 2013. The increase in sales is primarily from the Telecom
segment, which saw a 151.9% increase in sales over the same period
in 2013, due to an increase in orders from the Telecom OEM
industry.
As a result of increased in sales, the Company earned an after
tax profit of $275,000, compared to
an after tax loss of $204,000 in the
first quarter of 2013. Total comprehensive income increased
by $550,000; from a loss of
$158,000 in Q1 2013 to $392,000 in Q1 2014. The improved results
are attributed to increased sales and productivity gains over the
prior year.
Grant Reeves, Circa's Interim
President and Chief Executive Officer, stated:
"Circa posted solid operating results in the first quarter of
2014 due to very strong revenues in the Telecom OEM business.
The unusually cold and prolonged winter across North America affected sales in both operating
segments as many of the Company's products are tied to outdoor
construction and installation. Despite the poor weather, we
are pleased with the results for the first quarter as we
concentrate our efforts on growing other revenue streams in the
business.
The Company successfully executed on several opportunities late
in 2013 that are expected to result in successful sales bids in
2014. Management is continuing to work with its customers and
sales distributors in order to drive sales growth by introducing
new products and expanding its markets. The Company is also
continuing to look for new, strategic business acquisitions."
CIRCA ENTERPRISES INC.
Consolidated Statements of
Comprehensive Income
Unaudited
|
Three months
ended
31 March
2014
|
Three months
ended
31 March
2013
|
|
$000's
|
$000's
|
|
|
|
|
Sales
|
7,326
|
4,557
|
|
Cost of
sales
|
(5,751)
|
(3,666)
|
|
Gross
profit
|
1,575
|
891
|
|
Selling, general and
administrative expenses
|
(1,166)
|
(1,134)
|
|
Operating profit
(loss)
|
409
|
(243)
|
|
Other
income
|
4
|
-
|
|
Finance
costs
|
(1)
|
(3)
|
|
Profit (loss)
before tax
|
412
|
(246)
|
|
Income tax
expense
|
(137)
|
42
|
|
Profit (loss) for
the period from operations attributable to shareholders of
the Company
|
275
|
(204)
|
|
Other
comprehensive income:
|
|
|
|
Exchange differences
on translating foreign operations, net of tax
|
117
|
46
|
|
Total
comprehensive income (loss) for the period attributable to
shareholders of the Company
|
392
|
(158)
|
|
|
|
|
Earnings (loss)
per share (in $'s)
|
|
|
|
Basic and
diluted
|
0.03
|
(0.02)
|
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.
