TORONTO, July 08, 2020 (GLOBE NEWSWIRE) -- Firan Technology Group Corporation (TSX: FTG) today announced financial results for the second quarter 2020.
- Achieved a book-to-bill ratio in Q2 of 0.97:1
- Ended Q2 2020 with over $50M in total backlog, of which $28M is due in Q3 2020
- Generated $3.0M in cash in Q2 and ended the quarter with $6.4M in net cash on the balance sheet
- Achieved highest gross margin percentage of 32.3%
- Achieved net income of $2.0M in the quarter (7.6% of sales)
- Received $0.8M in Canadian Emergency Wage Subsidy in the quarter
- Received $3.3M ($2.4M USD) in loans from the US Paycheck Protection Program (PPP), which can be forgiven in future periods if certain conditions are met
- Subsequent to quarter-end, FTG entered into a new 2 year, $20M USD committed credit facility on terms similar to the previous agreement
Second Quarter Results: (three months ended May 29, 2020 compared with three months ended May 31, 2019)
|
|
Q2 2020
|
|
|
Q2 2019
|
|
| Sales |
$26,822,000 |
|
$32,235,000 |
|
|
|
|
| Gross Margin |
|
8,674,000 |
|
|
9,717,000 |
|
| Gross Margin (%) |
|
32.3 |
% |
|
30.1 |
% |
|
|
|
| Operating Earnings (1): |
|
4,313,000 |
|
|
5,388,000 |
|
|
|
|
| • R&D Investment |
|
1,583,000 |
|
|
1,168,000 |
|
| • R&D Tax Credits |
|
(203,000 |
) |
|
10,000 |
|
| • Foreign Exchange (Gain) Loss |
|
(464,000 |
) |
|
140,000 |
|
| • Amortization of Intangibles |
|
97,000 |
|
|
272,000 |
|
|
|
|
| Net Earnings before Tax |
|
3,300,000 |
|
|
3,798,000 |
|
|
|
|
| • Income Tax |
|
1,302,000 |
|
|
1,348,000 |
|
| • Non-controlling Interests |
|
(36,000 |
) |
|
(32,000 |
) |
|
|
|
| Net Earnings After Tax |
$2,034,000 |
|
$2,482,000 |
|
|
|
|
| Earnings per share |
|
|
| - basic |
$0.09 |
|
$0.11 |
|
| - diluted |
$0.08 |
|
$0.10 |
|
|
|
|
Year-to-Date: (six months ended May 29, 2020 compared with six months ended May 31, 2019)
|
|
YTD 2020 |
|
|
YTD 2019 |
|
| Sales |
$51,360,000 |
|
$57,625,000 |
|
|
|
|
| Gross Margin |
|
12,634,000 |
|
|
16,471,000 |
|
| Gross Margin (%) |
|
24.6 |
% |
|
28.6 |
% |
|
|
|
| Operating Earnings (1): |
|
4,555,000 |
|
|
8,706,000 |
|
|
|
|
| • R&D Investment |
|
2,664,000 |
|
|
2,284,000 |
|
| • R&D Tax Credits |
|
(375,000 |
) |
|
(195,000 |
) |
| • Foreign Exchange (Gain) Loss |
|
(415,000 |
) |
|
296,000 |
|
| • Amortization of Intangibles |
|
396,000 |
|
|
543,000 |
|
| • Impairment of Intangibles |
|
1,145,000 |
|
|
- |
|
|
|
|
| Net Earnings before Tax |
|
1,140,000 |
|
|
5,778,000 |
|
|
|
|
| • Income Tax |
|
1,771,000 |
|
|
2,155,000 |
|
| • Non-controlling Interests |
|
(68,000 |
) |
|
(77,000 |
) |
|
|
|
| Net (Loss) Earnings After Tax |
($563,000 |
) |
$3,700,000 |
|
|
|
|
| (Loss) Earnings per share |
|
|
| - basic |
($0.02 |
) |
$0.16 |
|
| - diluted |
($0.02 |
) |
$0.15 |
|
|
|
|
| (1) |
Operating Earnings is not a measure recognized under 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 Q2 2020 that continue to improve the Corporation and position it for the future, including:
- Received Canadian, US and Chinese government support to offset the impact of COVID-19, in the form of grants, forgivable loans and reduced or delayed tax remittances
- Implemented hiring freeze, wage freeze and new capital spending freeze across FTG to maintain a strong balance sheet during the uncertain times related to the COVID-19 pandemic
- Maintained solid bookings with a 0.97:1 book-to-bill ratio with increasing backlog in the US sites focused more on defense work and decreasing backlog in Canadian and Chinese sites focused more on commercial aerospace programs
- Bookings in Q2 increased by $1.5M compared to Q1 2020
For FTG, overall sales decreased by $5.4M or 17% from $32.2M in Q2 2019 to $26.8M in Q2 2020. Circuits Fredericksburg contributed $2.6M in Q2 2020, compared to $0 last year. Also benefiting Q2 2020 was a $0.06 weakening of the Canadian dollar versus Q2 last year, which positively impacted sales by approximately $0.6M, net of the impact of realized losses on FX forward contracts. Negatively impacting sales in Q2 2020 was a $3M drop in simulator related sales compared to Q2 last year. Simulator related sales vary much more from quarter-to-quarter than other parts of FTG’s business and Q2 last year was a very strong quarter for simulator related sales. Chatsworth sales were down over $3M due in part to lower simulator sales, extended lead time for some components, other supplier issues related to COVID-19 and COVID-19 impact on operations. On a year-to-date basis, sales were $51.4M compared to $57.6M for the same period last year. The drop is due to lower Aerospace sales as described below.
The Circuits Segment sales were up $0.3M, or 2% in Q2 2020 versus Q2 2019. Included in Q2 2020 were sales of $2.6M from Circuits Fredericksburg, acquired in July, 2019. The Toronto and Chatsworth sites had lower sales and the Joint Venture in China was flat. Year-to-date sales in the Circuits Segment were $36.1M vs $34.5M in 2019. Circuits Fredericksburg contributed $4.7M in 2020. The two North American sites were down similar amounts this year and the Joint Venture was stable.
For the Aerospace Segment, sales in Q2 2020 were $7.2M compared to $13.0M in Q2 last year. Simulator related sales were down $3M in Q2 2020, which impacted all three sites. Simulator revenues are expected to rebound in the second half of 2020 as the backlog in simulator work at the end of Q2 2020 was strong. The Aerospace sites were negatively impacted by extended component lead times, as a result of COVID-19 impacts on the supply chain. Year-to-date 2020, Aerospace Segment sales were down $7.9M, of which simulator related sales were down $5M.
Gross margins in Q2 2020 were $8.7M or 32.3% compared to $9.7M or 30.1% in Q2 2019. The lower sales impacted the overall margin while strong cost control, the Canadian wage subsidy received and high throughput improved the margin percentage on a year-over-year basis.
Earnings before interest, tax, depreciation and amortization (EBITDA) for FTG for Q2 2020 was $5.2M compared to $5.2M in Q2 2019. Again, the strong operating performance resulted in the 19.4% EBITDA margin.
The following table reconciles net earnings to EBITDA(2) for the quarter and the trailing 12 months ended May 29, 2020.
|
Q2 2020 |
Trailing 12 Months |
|
|
|
| Net earnings to equity holders of FTG |
|
2,034,000 |
|
1,795,000 |
| Add: |
|
|
| Interest, accretion |
|
198,000 |
|
499,000 |
| Income taxes |
|
1,302,000 |
|
3,362,000 |
| Depreciation/Amortization Stock Comp./Impairment |
|
1,682,000 |
|
7,309,000 |
|
|
|
| EBITDA |
$ |
5,216,000 |
$ |
12,965,000 |
| (2) |
EBITDA are not measures recognized under International Financial Reporting Standards (“IFRS”). Management believes that these measures are important to many of the Corporation’s shareholders, creditors and other stakeholders.The Corporation’s method of calculating EBITDA may differ from other corporations and accordingly may not be comparable to measures used by other corporations. |
Net profit after tax at FTG in Q2 2020 was $2.0M or $0.08 per diluted share compared to a net profit of $2.5M or $0.10 per diluted share in Q2 2019. Net profit after tax in Q2 2020 was impacted by the lower sales, offset by strong throughput and operating results and the Canadian wage subsidy.
The Circuits Segment net earnings before corporate and interest and other costs was $3.8M in Q2 2020 compared to $3.9M in Q2 2019. In Q2 2020, the sales were similar to Q2 2019 while the Circuits Fredericksburg site added approximately $2.2M in incremental costs in Q2 2020, offset by reduced costs on lower sales in other FTG sites. For the year-to-date, the net earnings before corporate and interest and other costs was $4.5M compared to $6.1M in the first 6 month of 2019.
The Aerospace net earnings before corporate and interest and other costs in the quarter was $0.6M in Q2 2020 versus $0.7M in Q2 2019. The drop is due primarily to reduced sales from the simulator related market offset by reduced cost across the business. In the first 6 months of 2020, the net earnings before corporate and interest and other costs was ($1.4M) compared to $1.2M in the same period last year. Reduced sales impacted earnings and Q1 2020 included $1.1M cost for impairment of intangible assets.
As at May 29, 2020, the Corporation’s net working capital was $30.0M, compared to $28.6M at year-end in 2019. The increase is due to higher cash, higher inventories offset by lower accounts receivable. As the existing bank facility agreement was scheduled to expire in November 2020, the outstanding bank debt of $4.6M pursuant to that facility was classified as current as of May 29, 2020.
Net cash at the end of Q2 2020 was $6.4M compared to net cash of $2.2M at the end of 2019.
Subsequent to quarter end, FTG Circuits Fredericksburg had a fire in the production area of the plant. No employees were injured. One piece of equipment was damaged but work-around production processes have been created while that equipment is repaired or replaced. While there was smoke and water damage in significant parts of the building, production resumed within a few days, and building remediation is ongoing.
Also subsequent to the end of Q2 2020, FTG entered into an amended and restated two-year committed credit facility with the same major financial institution, which will expire in July, 2022. The amended credit facility is a US$20.0 million committed revolving credit facility consisting of a US$10.0 million operating credit for working capital purposes and a US$10.0 million term credit to fund capital expenditures. The key terms of this credit facility are comparable to the previous one.
The Corporation will host a live conference call on Thursday July 9, 2020 at 8:30am (Eastern) to discuss the results of Q2 2020.
Anyone wishing to participate in the call should dial 647-427-2311 or 1-866-521-4909 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 August 10, 2020 and will be available on the FTG website at www.ftgcorp.com. The number to call for a rebroadcast is 416-621-4642 or 1-800-585-8367, Conference ID 1275227.
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, Fredericksburg, Virginia 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, Fort Worth, Texas 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.
For further information please contact:
Bradley C. Bourne, President and CEO
Firan Technology Group Corporation
Tel: (416) 299-4000 x314
bradbourne@ftgcorp.com
Jamie Crichton, Vice President and CFO
Firan Technology Group Corporation
Tel:(416) 299-4000 x264
jamiecrichton@ftgcorp.com
Additional information can be found at the Corporation’s website www.ftgcorp.com
| FIRAN TECHNOLOGY GROUP CORPORATION |
|
|
| Interim Condensed Consolidated Statements of Financial Position |
|
|
|
|
| (Unaudited) |
May 29, |
November 30, |
| (in thousands of Canadian dollars) |
2020 |
2019 |
| ASSETS |
|
|
| Current assets |
|
|
| Cash |
$ |
14,258 |
|
$ |
7,647 |
|
| Accounts receivable |
|
19,308 |
|
|
21,085 |
|
| Contract assets |
|
317 |
|
|
432 |
|
| Inventories |
|
23,284 |
|
|
21,990 |
|
| Prepaid expenses |
|
1,518 |
|
|
1,770 |
|
|
|
58,685 |
|
|
52,924 |
|
| Non-current assets |
|
|
| Plant and equipment, net |
|
14,406 |
|
|
13,830 |
|
| Right-of-use assets |
|
13,187 |
|
|
- |
|
| Deferred income tax assets |
|
724 |
|
|
724 |
|
| Investment tax credits receivable |
|
2,506 |
|
|
3,035 |
|
| Deferred development costs |
|
218 |
|
|
279 |
|
| Intangible assets and other assets, net |
|
1,084 |
|
|
2,585 |
|
| Total assets |
$ |
90,810 |
|
$ |
73,377 |
|
| LIABILITIES AND EQUITY |
|
|
| Current liabilities |
|
|
| Accounts payable and accrued liabilities |
$ |
16,998 |
|
$ |
17,104 |
|
| Provisions |
|
904 |
|
|
946 |
|
| Contract liabilities |
|
3,288 |
|
|
216 |
|
| Current portion of bank debt |
|
5,603 |
|
|
5,416 |
|
| Current portion of lease liabilities |
|
1,755 |
|
|
- |
|
| Income tax payable |
|
115 |
|
|
639 |
|
|
|
28,663 |
|
|
24,321 |
|
| Non-current liabilities |
|
|
| Bank debt |
|
2,245 |
|
|
- |
|
| Lease liabilities |
|
11,608 |
|
|
- |
|
| Deferred tax payable |
|
1,373 |
|
|
1,297 |
|
| Total liabilities |
|
43,889 |
|
|
25,618 |
|
| Equity |
|
|
| Retained earnings |
$ |
17,182 |
|
$ |
17,745 |
|
| Accumulated other comprehensive loss |
|
(1,457 |
) |
|
(1,554 |
) |
|
|
15,725 |
|
|
16,191 |
|
| Share capital |
|
|
| Common Shares |
|
19,663 |
|
|
19,323 |
|
| Preferred Shares |
|
2,218 |
|
|
2,218 |
|
| Contributed surplus |
|
8,264 |
|
|
8,933 |
|
| Total equity attributable to FTG's shareholders |
|
45,870 |
|
|
46,665 |
|
| Non-controlling interest |
|
1,051 |
|
|
1,094 |
|
| Total equity |
|
46,921 |
|
|
47,759 |
|
| Total liabilities and equity |
$ |
90,810 |
|
$ |
73,377 |
|
|
|
|
| FIRAN TECHNOLOGY GROUP CORPORATION |
|
|
|
|
|
|
|
| Interim Condensed Consolidated Statements of Earnings (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Six months ended |
| (Unaudited) |
May 29, |
|
May 31, |
|
May 29, |
|
May 31, |
| (in thousands of Canadian dollars, except per share amounts) |
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
|
| Sales |
|
$ |
26,822 |
|
|
$ |
32,235 |
|
|
$ |
51,360 |
|
|
$ |
57,625 |
|
|
|
|
|
|
|
|
|
|
|
| Cost of sales |
|
|
|
|
|
|
|
|
Cost of sales |
|
16,678 |
|
|
|
21,659 |
|
|
|
35,877 |
|
|
|
39,467 |
|
|
Depreciation of plant and equipment |
|
1,069 |
|
|
|
859 |
|
|
|
2,063 |
|
|
|
1,687 |
|
|
Depreciation of right-of-use assets |
|
401 |
|
|
|
- |
|
|
|
786 |
|
|
|
- |
|
| Total cost of sales |
|
18,148 |
|
|
|
22,518 |
|
|
|
38,726 |
|
|
|
41,154 |
|
| Gross margin |
|
8,674 |
|
|
|
9,717 |
|
|
|
12,634 |
|
|
|
16,471 |
|
|
|
|
|
|
|
|
|
|
|
| Expenses |
|
|
|
|
|
|
|
|
Selling, general and administrative |
|
4,056 |
|
|
|
4,119 |
|
|
|
7,487 |
|
|
|
7,361 |
|
|
Research and development costs |
|
1,583 |
|
|
|
1,168 |
|
|
|
2,664 |
|
|
|
2,284 |
|
|
Recovery (reversal) of investment tax credits, net |
|
(203 |
) |
|
|
10 |
|
|
|
(375 |
) |
|
|
(195 |
) |
|
Depreciation of plant and equipment |
|
54 |
|
|
|
40 |
|
|
|
100 |
|
|
|
83 |
|
|
Depreciation of right-of-use assets |
|
13 |
|
|
|
- |
|
|
|
25 |
|
|
|
- |
|
|
Amortization of intangible assets |
|
97 |
|
|
|
272 |
|
|
|
396 |
|
|
|
543 |
|
|
Interest expense on bank debt, net |
|
57 |
|
|
|
90 |
|
|
|
98 |
|
|
|
167 |
|
|
Accretion on lease liabilities |
|
141 |
|
|
|
- |
|
|
|
278 |
|
|
|
- |
|
|
Stock based compensation |
|
40 |
|
|
|
80 |
|
|
|
91 |
|
|
|
154 |
|
|
Foreign exchange (gain) loss |
|
(464 |
) |
|
|
140 |
|
|
|
(415 |
) |
|
|
296 |
|
|
Impairment of intangible assets |
|
- |
|
|
|
- |
|
|
|
1,145 |
|
|
|
- |
|
| Total expenses |
|
5,374 |
|
|
|
5,919 |
|
|
|
11,494 |
|
|
|
10,693 |
|
|
|
|
|
|
|
|
|
|
|
| Earnings before income taxes |
|
3,300 |
|
|
|
3,798 |
|
|
|
1,140 |
|
|
|
5,778 |
|
|
|
|
|
|
|
|
|
|
|
| Current income tax expense |
|
1,261 |
|
|
|
1,294 |
|
|
|
1,695 |
|
|
|
2,071 |
|
| Deferred income tax expense |
|
41 |
|
|
|
54 |
|
|
|
76 |
|
|
|
84 |
|
| Total income tax expense |
|
1,302 |
|
|
|
1,348 |
|
|
|
1,771 |
|
|
|
2,155 |
|
|
|
|
|
|
|
|
|
|
|
| Net earnings (loss) |
$ |
1,998 |
|
|
$ |
2,450 |
|
|
$ |
(631 |
) |
|
$ |
3,623 |
|
|
|
|
|
|
|
|
|
|
|
| Attributable to: |
|
|
|
|
|
|
|
| Non-controlling interest |
$ |
(36 |
) |
|
$ |
(32 |
) |
|
$ |
(68 |
) |
|
$ |
(77 |
) |
| Equity holders of FTG |
$ |
2,034 |
|
|
$ |
2,482 |
|
|
$ |
(563 |
) |
|
$ |
3,700 |
|
|
|
|
|
|
|
|
|
|
|
| Earnings (loss) per share, attributable to the equity holders of FTG |
|
|
|
|
|
|
|
|
Basic |
$ |
0.09 |
|
|
$ |
0.11 |
|
|
$ |
(0.02 |
) |
|
$ |
0.16 |
|
|
Diluted |
$ |
0.08 |
|
|
$ |
0.10 |
|
|
$ |
(0.02 |
) |
|
$ |
0.15 |
|
|
|
|
|
|
|
|
|
|
|
| FIRAN TECHNOLOGY GROUP CORPORATION |
|
|
|
|
|
|
|
| Interim Condensed Consolidated Statements of Comprehensive Income (Loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Six months ended |
| (Unaudited) |
May 29, |
|
May 31, |
|
May 29, |
|
May 31, |
| (in thousands of Canadian dollars) |
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
| Net earnings (loss) |
$ |
1,998 |
|
|
$ |
2,450 |
|
|
$ |
(631 |
) |
|
$ |
3,623 |
|
|
|
|
|
|
|
|
|
|
| Other comprehensive earnings (loss) to be reclassified to net earnings (loss) |
|
|
|
|
|
|
|
in subsequent periods: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in foreign currency translation adjustments |
|
518 |
|
|
|
302 |
|
|
|
766 |
|
|
|
290 |
|
|
Change in net unrealized loss on derivative financial instruments designated as cash flow hedges |
|
(478 |
) |
|
|
(1,258 |
) |
|
|
(860 |
) |
|
|
(1,325 |
) |
|
Change in tax impact |
|
120 |
|
|
|
314 |
|
|
|
216 |
|
|
|
331 |
|
|
|
|
|
|
|
|
|
|
|
|
|
160 |
|
|
|
(642 |
) |
|
|
122 |
|
|
|
(704 |
) |
|
|
|
|
|
|
|
|
|
| Total comprehensive income (loss) |
$ |
2,158 |
|
|
$ |
1,808 |
|
|
$ |
(509 |
) |
|
$ |
2,919 |
|
|
|
|
|
|
|
|
|
|
| Attributable to: |
|
|
|
|
|
|
|
| Equity holders of FTG |
$ |
2,187 |
|
|
$ |
1,851 |
|
|
$ |
(466 |
) |
|
$ |
2,967 |
|
| Non-controlling interest |
$ |
(29 |
) |
|
$ |
(43 |
) |
|
$ |
(43 |
) |
|
$ |
(48 |
) |
|
|
|
|
|
|
|
|
|
| FIRAN TECHNOLOGY GROUP CORPORATION |
|
|
|
|
|
|
| Interim Condensed Consolidated Statements of Changes in Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Six months ended May 29, 2020 |
Attributed to the equity holders of FTG |
|
|
|
|
|
|
|
|
Accumulated |
|
|
|
|
|
|
|
|
|
other |
|
Non- |
|
| (Unaudited) |
Common |
Preferred |
Retained |
Contributed |
comprehensive
|
|
|
|
controlling |
Total |
| (in thousands of Canadian dollars) |
shares |
shares |
earnings |
surplus |
loss |
Total |
interest |
equity |
| Balance, November 30, 2019 |
$ |
19,323 |
|
$ |
2,218 |
$ |
17,745 |
|
$ |
8,933 |
|
$ |
(1,554 |
) |
$ |
46,665 |
|
$ |
1,094 |
|
$ |
47,759 |
|
| Net (loss) |
|
- |
|
|
- |
|
(563 |
) |
|
- |
|
|
- |
|
|
(563 |
) |
|
(68 |
) |
|
(631 |
) |
| Stock-based compensation |
|
- |
|
|
- |
|
- |
|
|
91 |
|
|
- |
|
|
91 |
|
|
- |
|
|
91 |
|
| Transfer from contributed surplus to share capital for |
|
|
|
|
|
|
|
|
|
|
|
|
PSU’s exercised |
|
760 |
|
|
|
|
(760 |
) |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
| Common shares repurchase and issue on exercise |
|
|
|
|
|
|
|
|
|
|
|
|
of PSU's |
|
(420 |
) |
|
- |
|
- |
|
|
- |
|
|
- |
|
|
(420 |
) |
|
- |
|
|
(420 |
) |
| Change in foreign currency translation adjustments |
|
- |
|
|
- |
|
- |
|
|
- |
|
|
741 |
|
|
741 |
|
|
25 |
|
|
766 |
|
| Change in net unrealized loss on derivative financial |
|
|
|
|
|
|
|
|
|
|
|
|
instruments designated as cash flow hedges, net of |
|
|
|
|
|
|
|
|
|
|
|
|
tax impact |
|
- |
|
|
- |
|
- |
|
|
- |
|
|
(644 |
) |
|
(644 |
) |
|
- |
|
|
(644 |
) |
| Balance, May 29, 2020 |
$ |
19,663 |
|
$ |
2,218 |
$ |
17,182 |
|
$ |
8,264 |
|
$ |
(1,457 |
) |
$ |
45,870 |
|
$ |
1,051 |
|
$ |
46,921 |
|
|
|
|
|
|
|
|
|
|
|
| Six months ended May 31, 2019 |
Attributed to the equity holders of FTG |
|
|
|
|
|
|
|
|
Accumulated |
|
|
|
|
|
|
|
|
|
Other |
|
Non- |
|
| (Unaudited) |
Common |
Preferred |
Retained |
Contributed |
Comprehensive |
|
controlling |
Total |
| (in thousands of Canadian dollars) |
shares |
shares |
earnings |
surplus |
loss |
Total |
interest |
equity |
| Balance, November 30, 2018 |
$ |
19,323 |
|
$ |
2,218 |
$ |
11,687 |
|
$ |
8,672 |
|
$ |
(774 |
) |
$ |
41,126 |
|
$ |
1,181 |
|
$ |
42,307 |
|
| Net earnings (loss) |
|
- |
|
|
- |
|
3,700 |
|
|
- |
|
|
- |
|
|
3,700 |
|
|
(77 |
) |
|
3,623 |
|
| Stock-based compensation |
|
- |
|
|
- |
|
- |
|
|
154 |
|
|
- |
|
|
154 |
|
|
- |
|
|
154 |
|
| Change in foreign currency translation adjustments |
|
- |
|
|
- |
|
- |
|
|
- |
|
|
261 |
|
|
261 |
|
|
29 |
|
|
290 |
|
| Change in net unrealized loss on derivative financial |
|
|
|
|
|
|
|
|
instruments designated as cash flow hedges |
|
|
|
|
|
|
|
|
|
net of tax impact |
|
- |
|
|
- |
|
- |
|
|
- |
|
|
(994 |
) |
|
(994 |
) |
|
- |
|
|
(994 |
) |
| Balance, May 31, 2019 |
$ |
19,323 |
|
$ |
2,218 |
$ |
15,387 |
|
$ |
8,826 |
|
$ |
(1,507 |
) |
$ |
44,247 |
|
$ |
1,133 |
|
$ |
45,380 |
|
| FIRAN TECHNOLOGY GROUP CORPORATION |
|
|
|
|
|
|
|
|
| Interim Condensed Consolidated Statements of Cash Flows |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Six months ended |
| (Unaudited) |
|
May 29, |
|
May 31, |
|
May 29, |
|
May 31, |
| (in thousands of Canadian dollars) |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
| Net inflow (outflow) of cash related to the following: |
|
|
|
|
|
|
|
|
| Operating activities |
|
|
|
|
|
|
|
|
| Net earnings (loss) |
|
$ |
1,998 |
|
|
$ |
2,450 |
|
|
$ |
(631 |
) |
|
$ |
3,623 |
|
| Items not affecting cash: |
|
|
|
|
|
|
|
|
|
Stock-based compensation |
|
|
40 |
|
|
|
80 |
|
|
|
91 |
|
|
|
154 |
|
|
Loss on disposal of plant and equipment |
|
|
- |
|
|
|
(8 |
) |
|
|
6 |
|
|
|
(1 |
) |
|
Effect of exchange rates on US dollar debt |
|
|
145 |
|
|
|
140 |
|
|
|
198 |
|
|
|
126 |
|
|
Depreciation of plant and equipment |
|
|
1,123 |
|
|
|
899 |
|
|
|
2,163 |
|
|
|
1,770 |
|
|
Depreciation of right-of-use assets |
|
|
414 |
|
|
|
- |
|
|
|
811 |
|
|
|
- |
|
|
Amortization of intangible assets |
|
|
97 |
|
|
|
272 |
|
|
|
396 |
|
|
|
543 |
|
|
Amortization, other |
|
|
8 |
|
|
|
3 |
|
|
|
11 |
|
|
|
6 |
|
|
Impairment of intangible assets |
|
|
- |
|
|
|
- |
|
|
|
1,145 |
|
|
|
- |
|
|
Investment tax credits/deferred income taxes |
|
|
518 |
|
|
|
206 |
|
|
|
605 |
|
|
|
552 |
|
|
Accretion on lease liabilities |
|
|
141 |
|
|
|
- |
|
|
|
278 |
|
|
|
- |
|
|
Increase in net unrealized loss on derivative financial instruments |
|
|
|
|
|
|
|
|
|
|
designated as cash flow hedges, net of taxes |
|
|
711 |
|
|
|
(652 |
) |
|
|
425 |
|
|
|
(702 |
) |
| Net change in non-cash operating working capital |
|
|
(781 |
) |
|
|
(485 |
) |
|
|
3,241 |
|
|
|
(4,572 |
) |
|
|
|
|
|
|
4,414 |
|
|
|
2,905 |
|
|
|
8,739 |
|
|
|
1,499 |
|
| Investing activities |
|
|
|
|
|
|
|
|
|
Additions to plant and equipment |
|
|
(1,439 |
) |
|
|
(610 |
) |
|
|
(2,485 |
) |
|
|
(1,001 |
) |
|
Recovery (additions) of contract and other costs |
|
|
43 |
|
|
|
(1 |
) |
|
|
49 |
|
|
|
(19 |
) |
|
|
|
|
|
|
(1,396 |
) |
|
|
(611 |
) |
|
|
(2,436 |
) |
|
|
(1,020 |
) |
| Net cash flow from (used in) operating and investing activities |
|
|
3,018 |
|
|
|
2,294 |
|
|
|
6,303 |
|
|
|
479 |
|
| Financing activities |
|
|
|
|
|
|
|
|
|
Decrease in bank indebtedness |
|
|
- |
|
|
|
(995 |
) |
|
|
- |
|
|
|
- |
|
|
Proceeds from bank debt |
|
|
3,309 |
|
|
|
- |
|
|
|
3,309 |
|
|
|
- |
|
|
Repayments of bank debt |
|
|
(535 |
) |
|
|
(512 |
) |
|
|
(1,038 |
) |
|
|
(1,021 |
) |
|
Lease liability payments |
|
|
(466 |
) |
|
|
- |
|
|
|
(912 |
) |
|
|
- |
|
|
Repurchase of common shares on exercise of PSU's |
|
|
(420 |
) |
|
|
- |
|
|
|
(420 |
) |
|
|
|
|
|
|
|
|
1,888 |
|
|
|
(1,507 |
) |
|
|
939 |
|
|
|
(1,021 |
) |
| Effects of foreign exchange rate changes on cash flow |
|
|
(800 |
) |
|
|
(101 |
) |
|
|
(631 |
) |
|
|
(172 |
) |
| Net increase (decrease) in cash flow |
|
|
4,106 |
|
|
|
686 |
|
|
|
6,611 |
|
|
|
(714 |
) |
| Cash, beginning of the period |
|
|
10,152 |
|
|
|
3,626 |
|
|
|
7,647 |
|
|
|
5,026 |
|
| Cash, end of period |
|
$ |
14,258 |
|
|
$ |
4,312 |
|
|
$ |
14,258 |
|
|
$ |
4,312 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Disclosure of cash payments |
|
|
|
|
|
|
|
|
|
Payment for interest |
|
$ |
54 |
|
|
$ |
90 |
|
|
$ |
109 |
|
|
$ |
171 |
|
|
Payments for income taxes |
|
$ |
138 |
|
|
$ |
383 |
|
|
$ |
1,117 |
|
|
$ |
1,122 |
|
|
|
|
|
|
|
|
|
|
|
|
|
