Canada NewsWire
CALGARY, Nov. 7, 2017
CALGARY, Nov. 7, 2017 /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, 2017 and declares a special cash dividend of $0.05 per share on its common shares.
Summary of third quarter operating results:
Summary of year-to date operating results:
EBITDA is earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA is earnings before interest, taxes, depreciation and amortization and is adjusted for restructuring costs related to the acquisition of Alberta Computer Cables. 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:
| | | | |
| (unaudited) 30 Sep 2017 | (unaudited) 30 Sep 2016 | (unaudited) 30 Sep 2017 | (unaudited) 30 Sep 2016 |
| $000's | $000's | $000's | $000's |
Profit (loss) for the period from operations | 485 | (4) | 212 | 189 |
Income taxes | 184 | 93 | 105 | 67 |
Interest | 23 | 1 | 23 | 1 |
Depreciation and amortization | 557 | 193 | 447 | 60 |
EBITDA | 1,249 | 283 | 787 | 317 |
Restructuring costs | - | 309 | - | - |
Adjusted EBITDA | 1,249 | 592 | 787 | 317 |
Consolidated sales for the third quarter of 2017 were $7.5 million; a $1.6 million or 27.3% increase over the same period in 2016. Telecom segment sales increased with the acquisition of Guardian Telecom in the quarter as the Company posted $1.2 million in sales from the new product line. Sales of cable and connectivity products also increased while surge protection products saw a slight decline. Sales in the Metals segment were up $0.5 million on strong orders across most regions and in the custom metal portfolio.
The Company posted after tax profit of $212,000 in the third quarter of 2017 compared to $189,000 in the third quarter of 2017. This earnings improvement was due to the higher overall sales and strong margins. Selling, general and administrative costs were also higher as the Company took on the facilities, operations, personnel and infrastructure of Guardian Telecom. The operations and administration are being streamlined and the costs will be reduced in subsequent quarters. The Company also recorded one time legal fees and significant amortization expense related to the acquired sales backlog of Guardian. This non-cash charge will be amortized over the first six months.
Grant Reeves, Circa's President and Chief Executive Officer, stated:
"It was a very good quarter for Circa with strong year-over-year sales growth from our Metal's segment and incremental new sales and earnings from our Guardian Telecom acquisition. The Guardian Telecom operations were successfully integrated with our existing business in the quarter and we expect the new product line to grow Telecom segment revenues in the future. The Company accessed its credit lines for the acquisition and subsequent build of the approximately $2.8 million backlog of orders in the quarter, resulting in higher working capital that is expected to reverse in the 4Q. Overall, demand remains strong and we expect good momentum to carrying over to the 4Q.
The Company is pleased to declare its third consecutive annual $0.05 special dividend which equates to over $1.4 million cumulative returned to shareholders."
CIRCA ENTERPRISES INC.
Condensed Consolidated Statement of Comprehensive Income
Unaudited | | | | |
| Nine months 30 Sep 2017 | Nine months 30 Sep 2016 | Three months 30 Sep 2017 | Three months ended 30 Sep 2016 |
| $000's | $000's | $000's | $000's |
| | | | |
Sales | 19,635 | 17,902 | 7,518 | 5,908 |
Freight | (513) | (470) | (184) | (160) |
Net sales | 19,122 | 17,432 | 7,334 | 5,748 |
Cost of sales | (13,968) | (12,987) | (5,144) | (4,304) |
Gross profit | 5,154 | 4,445 | 2,190 | 1,444 Werbung Mehr Nachrichten zur CIRCA ENTERPRISES IN Aktie kostenlos abonnieren
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