TORONTO, ONTARIO--(Marketwired - Oct. 8, 2013) - Firan Technology Group Corporation (TSX:FTG) today announced financial results for the third quarter 2013.
- Grew Aerospace sales by more than 13% in Q3 2013, compared to Q3 2012.
- Expensed $0.4M in Q3 in starting up new Aerospace facilities in Tianjin, China and Chatsworth, California and generated revenues approaching $0.5M from both sites in the quarter
- Generated $1.7M positive cash flow from operations (net of capital expenditures) in the quarter due primarily to the collection of large milestone payments in the Aerospace business.
- Established joint venture with Tianjin Printronics Circuits Ltd ("TPC") to provide circuit boards to Aerospace customers from low cost country.
"FTG's third quarter had some very positive developments, such as the creation of our Joint Venture with TPC in China for our Circuit's business and the continued strong ramp in revenue from our two new Aerospace facilities, but we had some challenges in our Circuits Toronto facility where we had lower than expected sales and some yield issues", stated Brad Bourne, President and Chief Executive Officer. He added, "We are confident that we can address the challenges in our Toronto facility in our fourth quarter while maintaining our growth momentum across our Aerospace business."
Third Quarter Results: (three months ended August 30, 2013 compared with three months ended August 31, 2012)
| |
|
Q3 2013 |
|
|
Q3 2012 |
| |
|
|
|
|
|
|
|
| Sales |
|
$ |
13,319,000 |
|
|
$ |
14,057,000 |
| |
|
|
|
|
|
|
|
| Operating Earnings (1): |
|
|
315,000 |
|
|
|
1,109,000 |
| |
|
|
|
|
|
|
|
|
| |
- Net R&D Investment |
|
|
431,000 |
|
|
|
714,000 |
| |
- Aerospace Tianjin and Chatsworth Start-up Losses |
|
|
428,000 |
|
|
|
234,000 |
| |
- Income Tax |
|
|
7,000 |
|
|
|
6,000 |
| |
|
|
|
|
|
|
|
| Net (Loss) / Earnings |
|
$ |
(551,000 |
) |
|
$ |
155,000 |
| (Loss) / Earnings per share |
|
|
|
|
|
|
|
| |
- basic & diluted |
|
$ |
(0.03 |
) |
|
$ |
0.01 |
| |
|
|
|
|
|
|
|
Year-To-Date Results: (nine months ended August 30, 2013 compared with nine months ended August 31, 2012)
| |
|
Year-To-Date 2013 |
|
|
Year-To- Date 2012 |
| |
|
|
|
|
|
|
|
| Sales |
|
$ |
40,572,000 |
|
|
$ |
41,927,000 |
| |
|
|
|
|
|
|
|
| Operating Earnings(1): |
|
|
1,843,000 |
|
|
|
3,417,000 |
| |
|
|
|
|
|
|
|
|
| |
- Net R&D Investment |
|
|
1,734,000 |
|
|
|
1,944,000 |
| |
- Aerospace Tianjin and Chatsworth Start-up Losses |
|
|
1,268,000 |
|
|
|
641,000 |
| |
- Income Tax |
|
|
36,000 |
|
|
|
8,000 |
| |
|
|
|
|
|
|
|
|
| Net (Loss) / Earnings |
|
$ |
(1,195,000 |
) |
|
$ |
824,000 |
| (Loss) / Earnings per share |
|
|
|
|
|
|
|
| |
- basic |
|
$ |
(0.03 |
) |
|
$ |
0.05 |
| |
- diluted |
|
$ |
(0.03 |
) |
|
$ |
0.04 |
| |
|
| (1) |
Operating Earnings is not a measure recognized under the International Financial Reporting Standards ("IFRS").Management believes that this measure is important to many of the Corporation's shareholders, creditors and other stakeholders.The Corporation's method of calculating Operating Earnings may differ from other corporations and accordingly may not be comparable to measures used by other corporations. |
Business Highlights
FTG accomplished many goals in the third quarter of 2013 that continue to improve the Corporation and position it for the future, including:
- Achieved 13% growth in Aerospace business compared to same period last year
- Generated $1.7M positive cash flow (operating cash flow, net of capital expenditures)
- Won orders from two (2) new customers for Aerospace Tianjin facility
- Won orders from eight (8) new customers for Aerospace Chatsworth facility
- Invested $0.2M in the quarter and $1.3M year-to-date in capital equipment to improve capabilities across the company
- Added new test equipment and production equipment in all three Aerospace facilities
- Kicked-off activity for FTG Printronics Circuit Corp, the joint venture established with TPC in Tianjin, China to provide circuit boards from a low cost country
For FTG overall sales decreased by $0.7M (5%), from $14.1M in Q3 2012 to $13.3M in Q3 2013. For the first nine months, sales were $40.6M, a decrease of $1.4M or 3% versus the same period last year.
The Circuits Segment sales were down $1.3M or 13% in Q3 2013 versus Q3 2012. Year-to-date Circuits Segment sales were down $3.8M or 12%.
For the Aerospace segment, sales in Q3 2013 were up $0.6M or 12% compared to Q3 2012. For the year-to-date Aerospace segment sales were up $2.5M or 18%.
Net loss at FTG in Q3 2013 was $0.6M compared to net earnings of $0.2M in Q3 2012. Gross margins were depressed in the quarter due to start-up losses at the new aerospace facilities and the weak revenues in the Circuits Toronto facility. Administrative costs were up slightly due to costs associated with the Joint Venture.
The Circuits segment net loss before corporate and interest costs was $0.1M in Q3 2013 compared to net earnings $0.6M in Q3 2012. On a year-to-date basis, the Circuits business net earnings before corporate and interest costs was $0.1M compared to $2.2M for the same period last year. In both cases the decrease is primarily due to weak sales and yield issues in the Circuits Toronto facility.
The Aerospace net earnings before corporate and interest costs was $0.2M in Q3 2013 versus $0.1M in Q3, 2012. The net earnings this year are reduced by the $1.2M start-up losses for the two new facilities. On a year-to-date basis the net earnings before corporate and interests costs was $0.7M compared to $0.4M for the same period last year. Start-up losses for the 9 month period year-to-date were $1.3M.
As at August 30, 2013, the Corporation's primary source of liquidity included cash of $3.7M, accounts receivable of $9.5M and inventory of $8.3M. Receivables decreased in the quarter due to large milestone payments on two programs in the Aerospace segment. Net working capital at August 30, 2013 was $11.1M.
The Corporation will host a live conference call on Thursday, October 10, 2013 at 8:30 am (EDT) to discuss the results of Q3 2013.
Anyone wishing to participate in the call should dial 416-340-2216 or 1-866-226-1792 and identify that you are calling to participate in the FTG conference call. The Chairperson is Mr. Brad Bourne. A replay of the call will be available until October 24, 2013 and will be available on the FTG website at www.ftgcorp.com. The number to call for a rebroadcast is 905-694-9451 or 1-800-408-3053, pass code 4925971.
ABOUT FIRAN TECHNOLOGY GROUP CORPORATION
FTG is an aerospace and defense electronics product and subsystem supplier to customers around the globe. FTG has two operating units:
| |
FTG Circuits is a manufacturer of high technology, high reliability printed circuit boards. Our customers are leaders in the aviation, defense, and high technology industries. FTG Circuits has operations in Toronto, Ontario, Chatsworth, California and a joint venture in Tianjin, China. |
| |
|
| |
FTG Aerospace manufactures illuminated cockpit panels, keyboards and sub-assemblies for original equipment manufacturers of aerospace and defense equipment. FTG Aerospace has operations in Toronto, Ontario, Chatsworth, California and Tianjin, China. |
The Corporation's shares are traded on the Toronto Stock Exchange under the symbol FTG.
FORWARD-LOOKING STATEMENTS
This news release contains certain forward-looking statements. These forward-looking statements are related to, but not limited to, FTG's operations, anticipated financial performance, business prospects and strategies. Forward-looking information typically contains words such as "anticipate", "believe", "expect", "plan" or similar words suggesting future outcomes. Such statements are based on the current expectations of management of the Corporation and inherently involve numerous risks and uncertainties, known and unknown, including economic factors and the Corporation's industry, generally. The preceding list is not exhaustive of all possible factors. Such forward-looking statements are not guarantees of future performance and actual events and results could differ materially from those expressed or implied by forward-looking statements made by the Corporation. The reader is cautioned to consider these and other factors carefully when making decisions with respect to the Corporation and not place undue reliance on forward-looking statements. Other than as may be required by law, FTG disclaims any intention or obligation to update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise.
Additional information can be found at the Corporation's website www.ftgcorp.com.
| FIRAN TECHNOLOGY GROUP CORPORATION |
|
| Interim Condensed Consolidated Balance Sheets |
|
| |
|
| (in thousands of Canadian dollars) |
|
August 30, |
|
|
November 30, |
|
| |
|
2013 |
|
|
2012 |
|
| As at |
|
(unaudited) |
|
|
(audited) |
|
| ASSETS |
|
|
|
|
|
|
|
|
| Current assets |
|
|
|
|
|
|
|
|
| Cash |
|
$ |
3,721 |
|
|
$ |
1,446 |
|
| Accounts receivable |
|
|
9,511 |
|
|
|
10,276 |
|
| Taxes receivable |
|
|
194 |
|
|
|
250 |
|
| Inventories |
|
|
8,334 |
|
|
|
7,927 |
|
| Prepaid expenses |
|
|
349 |
|
|
|
432 |
|
| |
|
|
22,109 |
|
|
|
20,331 |
|
| Non-current assets |
|
|
|
|
|
|
|
|
| Plant and equipment, net |
|
|
5,655 |
|
|
|
5,608 |
|
| Goodwill |
|
|
1,039 |
|
|
|
1,039 |
|
| Deferred income taxes |
|
|
1,375 |
|
|
|
1,375 |
|
| Intangible assets |
|
|
208 |
|
|
|
244 |
|
| Total assets |
|
$ |
30,386 |
|
|
$ |
28,597 |
|
| |
|
|
|
|
|
|
|
|
| LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
| Current liabilities |
|
|
|
|
|
|
|
|
| Bank indebtedness |
|
$ |
2,633 |
|
|
$ |
994 |
|
| Accounts payable and accrued liabilities |
|
|
6,970 |
|
|
|
7,184 |
|
| Provisions |
|
|
347 |
|
|
|
309 |
|
| Customer deposits, net of deferred development |
|
|
760 |
|
|
|
843 |
|
| Current portion of long-term bank debt |
|
|
304 |
|
|
|
44 |
|
| |
|
|
11,014 |
|
|
|
9,374 |
|
| Non-current liabilities |
|
|
|
|
|
|
|
|
| Long-term bank debt |
|
|
1,813 |
|
|
|
361 |
|
| Subordinated loan |
|
|
3,833 |
|
|
|
3,613 |
|
| Government assistance |
|
|
898 |
|
|
|
1,234 |
|
| Total liabilities |
|
|
17,558 |
|
|
|
14,582 |
|
| |
|
|
|
|
|
|
|
|
| Equity |
|
|
|
|
|
|
|
|
| Deficit |
|
$ |
(10,299 |
) |
|
$ |
(9,104 |
) |
| Accumulated other comprehensive loss |
|
|
(170 |
) |
|
|
(85 |
) |
| |
|
|
(10,469 |
) |
|
|
(9,189 |
) |
| Share capital |
|
|
|
|
|
|
|
|
| |
Common shares |
|
|
12,681 |
|
|
|
12,681 |
|
| |
Preferred shares |
|
|
2,218 |
|
|
|
2,218 |
|
| Contributed surplus |
|
|
8,336 |
|
|
|
8,305 |
|
| Total equity attributable to Firan Technology Group Corporation shareholders |
|
|
12,766 |
|
|
|
14,015 |
|
| Non-controlling interests |
|
|
62 |
|
|
|
- |
|
| Total equity |
|
|
12,828 |
|
|
|
14,015 |
|
| Total liabilities and equity |
|
$ |
30,386 |
|
|
$ |
28,597 |
|
| |
|
|
|
|
|
|
|
|
| FIRAN TECHNOLOGY GROUP CORPORATION |
|
| Interim Condensed Consolidated Statements of (Loss) Earnings |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three months ended |
|
|
Nine months ended |
|
(unaudited)
(in thousands of Canadian dollars, except per share amounts) |
|
August 30,
2013 |
|
|
August 31,
2012 |
|
|
August 30,
2013 |
|
|
August 31,
2012 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Sales |
|
$ |
13,319 |
|
|
$ |
14,057 |
|
|
$ |
40,572 |
|
|
$ |
41,927 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Cost of sales |
|
|
10,702 |
|
|
|
10,516 |
|
|
|
31,793 |
|
|
|
30,912 |
|
| |
Depreciation of plant and equipment |
|
|
437 |
|
|
|
419 |
|
|
|
1,278 |
|
|
|
1,245 |
|
| Total cost of sales |
|
|
11,139 |
|
|
|
10,935 |
|
|
|
33,071 |
|
|
|
32,157 |
|
| Gross margin |
|
|
2,180 |
|
|
|
3,122 |
|
|
|
7,501 |
|
|
|
9,770 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selling, general and administrative |
|
|
2,147 |
|
|
|
2,016 |
|
|
|
6,551 |
|
|
|
6,436 |
|
| |
Research and development costs |
|
|
501 |
|
|
|
778 |
|
|
|
1,944 |
|
|
|
2,168 |
|
| |
Recovery of research and development costs |
|
|
(70 |
) |
|
|
(64 |
) |
|
|
(210 |
) |
|
|
(224 |
) |
| |
Depreciation/amortization of plant and equipment and intangible assets |
|
|
39 |
|
|
|
35 |
|
|
|
115 |
|
|
|
99 |
|
| |
Interest expense on short-term debt |
|
|
24 |
|
|
|
11 |
|
|
|
57 |
|
|
|
56 |
|
| |
Interest expense on long-term debt |
|
|
80 |
|
|
|
69 |
|
|
|
240 |
|
|
|
204 |
|
| |
Foreign exchange loss (gain) |
|
|
29 |
|
|
|
116 |
|
|
|
(11 |
) |
|
|
199 |
|
| Total expenses |
|
|
2,750 |
|
|
|
2,961 |
|
|
|
8,686 |
|
|
|
8,938 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Loss) earnings before income taxes |
|
|
(570 |
) |
|
|
161 |
|
|
|
(1,185 |
) |
|
|
832 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income tax expense |
|
|
7 |
|
|
|
6 |
|
|
|
36 |
|
|
|
8 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net (loss) earnings |
|
$ |
(577 |
) |
|
$ |
155 |
|
|
$ |
(1,221 |
) |
|
$ |
824 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-controlling interests |
|
|
(26 |
) |
|
|
- |
|
|
|
(26 |
) |
|
|
- |
|
| Equity holders of Firan Technology Group Corporation |
|
|
(551 |
) |
|
|
155 |
|
|
|
(1,195 |
) |
|
|
824 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Loss) earnings per share, attributable to the equity holders of Firan Technology Group Corporation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Basic |
|
$ |
(0.03 |
) |
|
$ |
0.01 |
|
|
$ |
(0.07 |
) |
|
$ |
0.05 |
|
| |
Diluted |
|
$ |
(0.03 |
) |
|
$ |
0.01 |
|
|
$ |
(0.07 |
) |
|
$ |
0.04 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| FIRAN TECHNOLOGY GROUP CORPORATION |
|
| Interim Condensed Consolidated Statements of Comprehensive (loss) income |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three months ended |
|
|
Nine months ended |
|
(unaudited)
(in thousands of Canadian dollars) |
|
August 30,
2013 |
|
|
August 31,
2012 |
|
|
August 30,
2013 |
|
|
August 31,
2012 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net (loss) earnings |
|
$ |
(577 |
) |
|
$ |
155 |
|
|
$ |
(1,221 |
) |
|
$ |
824 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other comprehensive income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Foreign currency translation adjustments |
|
|
66 |
|
|
|
(213 |
) |
|
|
249 |
|
|
|
(136 |
) |
| |
Net unrealized loss on derivative financial instruments designated as cash flow hedges |
|
|
(334 |
) |
|
|
- |
|
|
|
(334 |
) |
|
|
- |
|
| |
|
|
(268 |
) |
|
|
(213 |
) |
|
|
(85 |
) |
|
|
(136 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total comprehensive (loss) income |
|
$ |
(845 |
) |
|
$ |
(58 |
) |
|
$ |
(1,306 |
) |
|
$ |
688 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Equity holders of Firan Technology Group Corporation |
|
$ |
(819 |
) |
|
$ |
(58 |
) |
|
$ |
(1,280 |
) |
|
$ |
688 |
|
| Non-controlling interests |
|
$ |
(26 |
) |
|
$ |
- |
|
|
$ |
(26 |
) |
|
$ |
- |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| FIRAN TECHNOLOGY GROUP CORPORATION |
|
| Interim Condensed Consolidated Statements of Changes in Equity |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Attributed to the equity holders of Firan Technology Group Corporation |
|
|
|
|
|
| Nine months ended August 30, 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Accumulated |
|
|
|
|
|
|
|
|
|
|
| (unaudited) |
|
|
|
|
|
|
|
|
|
|
Other |
|
|
|
|
|
Non- |
|
|
|
|
| (in thousands of Canadian dollars) |
|
Common
Shares |
|
Preferred
Shares |
|
Deficit |
|
|
Contributed
Surplus |
|
Comprehensive
(Loss) |
|
|
Total |
|
|
controlling
interests |
|
|
Total
equity |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance, November 30, 2012 |
|
$ |
12,681 |
|
$ |
2,218 |
|
$ |
(9,104 |
) |
|
$ |
8,305 |
|
$ |
(85 |
) |
|
$ |
14,015 |
|
|
$ |
- |
|
|
$ |
14,015 |
|
| Net loss |
|
|
- |
|
|
- |
|
|
(1,195 |
) |
|
|
- |
|
|
- |
|
|
|
(1,195 |
) |
|
|
(26 |
) |
|
|
(1,221 |
) |
| Stock-based compensation |
|
|
- |
|
|
- |
|
|
- |
|
|
|
31 |
|
|
- |
|
|
|
31 |
|
|
|
- |
|
|
$ |
31 |
|
| Foreign currency translation adjustments |
|
|
- |
|
|
- |
|
|
- |
|
|
|
- |
|
|
249 |
|
|
|
249 |
|
|
|
- |
|
|
$ |
249 |
|
| Net unrealized loss on derivative financial instruments designated as cash flow hedges |
|
|
- |
|
|
- |
|
|
- |
|
|
|
- |
|
|
(334 |
) |
|
|
(334 |
) |
|
|
- |
|
|
|
(334 |
) |
| Contribution from non-controlling interests |
|
|
- |
|
|
- |
|
|
- |
|
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
88 |
|
|
$ |
88 |
|
| Balance, August 30, 2013 |
|
$ |
12,681 |
|
$ |
2,218 |
|
$ |
(10,299 |
) |
|
$ |
8,336 |
|
$ |
(170 |
) |
|
$ |
12,766 |
|
|
$ |
62 |
|
|
$ |
12,828 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Attributed to the equity holders of Firan Technology Group Corporation |
|
|
|
|
|
| Nine months ended August 31, 2012 |
|
|
|
|
|
|
|
|
|
|
Accumulated |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Other |
|
|
|
|
|
Non- |
|
|
|
|
| (unaudited) |
|
Common |
|
Preferred |
|
|
|
|
Contributed |
|
Comprehensive |
|
|
|
|
|
controlling |
|
|
Total |
|
| (in thousands of dollars) |
|
Shares |
|
Shares |
|
Deficit |
|
|
Surplus |
|
Income (Loss) |
|
|
Total |
|
|
interests |
|
|
equity |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance, November 30, 2011 |
|
$ |
12,681 |
|
$ |
2,218 |
|
$ |
(10,032 |
) |
|
$ |
8,249 |
|
$ |
12 |
|
|
$ |
13,128 |
|
|
$ |
- |
|
|
$ |
13,128 |
|
| Net earnings |
|
|
- |
|
|
- |
|
|
824 |
|
|
|
- |
|
|
- |
|
|
|
824 |
|
|
|
- |
|
|
$ |
824 |
|
| Stock-based compensation |
|
|
- |
|
|
- |
|
|
- |
|
|
|
40 |
|
|
- |
|
|
|
40 |
|
|
|
- |
|
|
$ |
40 |
|
| Foreign currency translation adjustments |
|
|
- |
|
|
- |
|
|
- |
|
|
|
- |
|
|
(136 |
) |
|
|
(136 |
) |
|
|
- |
|
|
|
(136 |
) |
| Balance, August 31, 2012 |
|
$ |
12,681 |
|
$ |
2,218 |
|
$ |
(9,208 |
) |
|
$ |
8,289 |
|
$ |
(124 |
) |
|
$ |
13,856 |
|
|
$ |
- |
|
|
$ |
13,856 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| FIRAN TECHNOLOGY GROUP CORPORATION |
|
| Interim Condensed Consolidated Statements of Cash Flows |
|
| |
|
Three months ended |
|
|
Nine months ended |
|
(unaudited)
(in thousands of Canadian dollars) |
|
August 30,
2013 |
|
|
August 31,
2012 |
|
|
August 30,
2013 |
|
|
August 31,
2012 |
|
| Net inflow (outflow) of cash related to the following: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net (loss) earnings |
|
$ |
(577 |
) |
|
$ |
155 |
|
|
$ |
(1,221 |
) |
|
$ |
824 |
|
| Items not affecting cash: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Stock-based compensation |
|
|
11 |
|
|
|
15 |
|
|
|
31 |
|
|
|
40 |
|
| |
Gain on disposal of plant and equipment |
|
|
- |
|
|
|
- |
|
|
|
(25 |
) |
|
|
(2 |
) |
| |
Effect of exchange rates on U.S. dollar Canadian debt |
|
|
81 |
|
|
|
- |
|
|
|
189 |
|
|
|
(17 |
) |
| |
Depreciation of plant and equipment |
|
|
464 |
|
|
|
442 |
|
|
|
1,357 |
|
|
|
1,308 |
|
| |
Amortization of intangible assets |
|
|
12 |
|
|
|
12 |
|
|
|
36 |
|
|
|
36 |
|
| |
Amortization of deferred financing costs |
|
|
7 |
|
|
|
7 |
|
|
|
21 |
|
|
|
43 |
|
| |
AMIS interest accretion |
|
|
73 |
|
|
|
69 |
|
|
|
219 |
|
|
|
183 |
|
| |
Amortization of government assistance |
|
|
(112 |
) |
|
|
(111 |
) |
|
|
(336 |
) |
|
|
(291 |
) |
| Changes in non-cash operating working capital |
|
|
1,930 |
|
|
|
(455 |
) |
|
|
218 |
|
|
|
(2,139 |
) |
| |
|
|
1,889 |
|
|
|
134 |
|
|
|
489 |
|
|
|
(15 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investing activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Additions to plant and equipment |
|
|
(196 |
) |
|
|
(487 |
) |
|
|
(1,277 |
) |
|
|
(1,966 |
) |
| |
Proceeds from disposal of plant and equipment |
|
|
- |
|
|
|
- |
|
|
|
25 |
|
|
|
3 |
|
| |
Additions to deferred financing costs |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(108 |
) |
| |
|
|
(196 |
) |
|
|
(487 |
) |
|
|
(1,252 |
) |
|
|
(2,071 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net cash flow from operating and investing activities |
|
|
1,693 |
|
|
|
(353 |
) |
|
|
(763 |
) |
|
|
(2,086 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Financing activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Increase in bank indebtedness |
|
|
790 |
|
|
|
842 |
|
|
|
1,451 |
|
|
|
842 |
|
| |
Proceeds from subordinated loan and government assistance |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,490 |
|
| |
Proceeds from long-term bank debt |
|
|
519 |
|
|
|
- |
|
|
|
1,746 |
|
|
|
- |
|
| |
Repayments of long-term bank debt |
|
|
(63 |
) |
|
|
- |
|
|
|
(125 |
) |
|
|
(1,423 |
) |
| |
Funding from non-controlling interests |
|
|
26 |
|
|
|
|
|
|
|
26 |
|
|
|
|
|
| |
|
|
1,272 |
|
|
|
842 |
|
|
|
3,098 |
|
|
|
909 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Effects of foreign exchange rate changes on cash flow |
|
|
199 |
|
|
|
(87 |
) |
|
|
(60 |
) |
|
|
(47 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net cash flow |
|
|
3,164 |
|
|
|
402 |
|
|
|
2,275 |
|
|
|
(1,224 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash, beginning of period |
|
|
557 |
|
|
|
318 |
|
|
|
1,446 |
|
|
|
1,944 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash, end of period |
|
$ |
3,721 |
|
|
$ |
720 |
|
|
|
3,721 |
|
|
$ |
720 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Disclosure of cash payments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Payment for interest |
|
$ |
31 |
|
|
$ |
12 |
|
|
$ |
78 |
|
|
$ |
78 |
|
| |
Payments for income taxes |
|
$ |
- |
|
|
$ |
6 |
|
|
$ |
22 |
|
|
$ |
8 |
|