Circa Reports Sales and Operating results for the Second Quarter Ended June 30, 2013 and common shares issued under the Share Acquisition Plan

CALGARY, Aug. 8, 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 second quarter ended June 30, 2013 and the issuance of common shares under the Share Acquisition Plan.

OPERATING RESULTS

Summary of second quarter operating results:

• Consolidated sales of $5.6 million, representing an 8.3% decrease compared to Q2 2012 sales of $6.1 million
• Profit for the period from operations for the second quarter of 2013 of $178,000 compared to profit for the period from operations of $268,000 for Q2 2012
• EBITDA $301,000 for Q2 2013 compared to EBITDA of $473,000 for Q2 2012 (see below for explanation and calculation of EBITDA and Adjusted EBITDA)
• Adjusted EBITDA of $347,000 for Q2 2013 compared to Adjusted EBITDA of $473,000 for Q2 2012 (see below for explanation and calculation of EBITDA and Adjusted EBITDA)

Summary of year-to date operating results:

• Consolidated sales of $10.2 million for the six months ended June 30, 2013, representing a 10.1% decrease compared to sales of $11.3 million for the six months ended June 30, 2012
• Loss from operations for the six months ended June 30, 2013 of $26,000 compared to a profit of $295,000 for the six months ended June 30, 2012
• EBITDA of $113,000 for the six month period ended June 30, 2013 compared to EBITDA of $593,000 for the same period in 2012
• Adjusted EBITDA of $164,000 for the six month period ended June 30, 2013 compared to Adjusted EBITDA of $638,000 for the same period in 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 (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:

Consolidated sales for the second quarter of 2013 were $5.6 million -- a $0.5 million or 8.3% 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 decreased military spending in the U.S. Circa Metals saw a modest decrease in the second quarter sales of 2013; from $3.3 million in Q2 2012 compared to $3.2 million in Q2 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 operating profit was reduced by $168,000 when compared to the second quarter of 2012. The Company posted after tax profit of $178,000 and a total comprehensive income of $253,000 for the quarter compared to after tax profit of $268,000 and total comprehensive income of $313,000 in the second quarter of 2012.

Ivan Smith, Circa's President and Chief Executive officer, stated:

"The second quarter 2013 financial results continue to lag behind the trend in the prior year; however they represent a significant improvement over the first quarter of 2013. Telecom sales have recovered slightly from the drop in U.S. sales resulting from lower military spending and our U.S. customers are beginning to place orders again.  There are indications that sales, particularly with the large OEM customer, will continue to improve in the third quarter of 2013 and management is optimistic that business will recover from these unusually low levels.

The Circa Metals business segment sales had a good second quarter.  Although sales were down slightly over the same quarter in the prior year, the segment's operating profit was higher due to stronger margins.  This was a result of the Company replacing some low margin business with more profitable business."

CIRCA ENTERPRISES INC.
Consolidated Statements of Comprehensive Income

Unaudited

COMMON SHARES ISSUED UNDER ACQUISITION PLAN

On August 8, 2013 the Company issued an aggregate of 13,514 common shares to a director pursuant to the Company's Share Acquisition Plan at a deemed price of $0.37 per share in lieu of the cash annual retainer otherwise payable to the director.

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.