CALGARY, May 15, 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 first quarter ended March 31, 2013.
Summary of first quarter operating results:
- Q1 2013 consolidated sales of $4.6 million, representing a 12.4% decrease compared to Q1 2012 sales of $5.2 million
- Loss for the period from continuing operations for Q1 2013 of $204,000 compared to profit from continuing operations of $27,000 for Q1 2012
- EBITDA of ($188,000) for Q1 2013 compared to EBITDA of $120,000 for Q1 2012 (see below for explanation and calculation of EBITDA)
- Adjusted EBITDA of ($185,000) for Q1 2013 compared to Adjusted EBITDA of $165,000 for Q1 2012 (see below for explanation and calculation of Adjusted EBITDA)
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 (loss) 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:
31 Mar 2013
31 Mar 2012
|(Loss) profit for the period from continuing operations||(204)||27|
|Depreciation and amortization||55||75|
|Non-recurring severance charges||5||45|
Consolidated sales for the first quarter of 2013 were $4.6 million -- a $0.6 million or 12.4% decrease over the same period in 2012. The largest decline in sales was in the Telecom segment and management believes the drop was due to the effects of budget sequestration in the U.S. This decrease was partially offset by higher sales from the Telecom segment's OEM customer for surge protection modules. Circa Metals saw a modest decrease in the first quarter sales of 2013; from $2.8 million in Q1 2012 compared to $2.7 million in Q1 2013. The decline is mainly attributed to low demand in poleline sales in certain regions.
As a result of this decrease in sales, the Company's quarterly gross profit and operating profit was reduced by $0.3 million when compared to the first quarter of 2012. The Company posted after tax loss of $204,000 and a total comprehensive loss of $158,000 for the quarter compared to after tax profit of $27,000 and total comprehensive income of $12,000 in the first quarter of 2012.
Ivan Smith, Circa's President and Chief Executive officer, stated:
"The first quarter 2013 financial results are disappointing compared to the trend over the past year. Sales are down in the Telecom business due to the budget sequestration measures in the U.S. and the uncertainty this has created with our customers, who have been reducing their inventory levels. There are indications that sales with certain customers will improve and management is optimistic that sales will recover from these unusually low levels and recover in the balance of 2013.
The Circa Metals business segment sales are traditionally low in the first quarter and 2013 has continued with this trend. The Metals segment has increased its sales presence and aligned itself with new strategic partners and we expect this will lead to increased sales to new and existing customers. The Company is well positioned to respond to increased sales with its inventory and production capabilities."
CIRCA ENTERPRISES INC.
Consolidated Statements of Comprehensive Income
Three months ended
31 March 2013
Three months ended
31 March 2012
|Cost of sales||(3,666)||(3,993)|
|Selling, general and administrative expenses||(1,134)||(1,162)|
|Profit before tax||(246)||39|
|Income tax expense||42||(12)|
Profit for the period from operations attributable to
shareholders of the Company
|Other comprehensive income:|
|Exchange differences on translating foreign operations, net of tax||46||(15)|
Total comprehensive income for the period attributable
to shareholders of the Company
|Earnings per share (in $'s)|
|Basic and diluted||(0.02)||0.00|
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.