TORONTO, July 13, 2022 (GLOBE NEWSWIRE) -- Firan Technology Group Corporation (TSX: FTG) today announced financial results for the second quarter of 2022.
- FTG achieved a sixth sequential quarter of increased bookings as the aerospace industry recovers from the COVID-19 pandemic
- Second quarter bookings of $27.6M are up 6% over Q1 2022 and up 45% over Q2 2021 and is the best bookings quarter since Q4 2019
- FTG has maintained strong liquidity with net cash on the balance sheet of $16.8M, after investments in the quarter of $0.4M for capital expenditures and $1.6M for research and development
- Sales for Q2 2022 were $22.3M, which is an increase of 9.8% over Q2 2021 and an increase of 9.1% over Q1 2022
Second Quarter Results: (three months ended June 3, 2022 compared with three months ended June 4, 2021)
|
Q2 2022 |
Q2 2021 |
| Sales |
$22,318,000 |
$20,330,000 |
|
|
|
| Gross Margin |
5,624,000 |
5,428,000 |
| Gross Margin (%) |
25.2% |
26.7% |
|
|
|
| Operating Earnings (1): |
2,142,000 |
2,518,000 |
|
|
|
| • R&D Investment |
1,640,000 |
1,505,000 |
| • R&D Tax Credits |
(179,000) |
(179,000) |
| • Foreign Exchange Loss |
120,000 |
544,000 |
| • Amortization of Intangibles |
30,000 |
70,000 |
| Net Earnings before Tax |
531,000 |
578,000 |
|
|
|
| • Income Tax |
498,000 |
589,000 |
| • Non-controlling Interests |
19,000 |
(21,000) |
| Net Earnings After Tax |
$14,000 |
$10,000 |
|
|
|
| Earnings per share |
|
|
| - basic |
$0.00 |
$0.00 |
| - diluted |
$0.00 |
$0.00 |
|
|
|
| Government Assistance included in the Periods: |
|
|
| • Forgiveness of Debt |
- |
- |
| • Other Government Subsidies |
57,000 |
1,269,000 |
| Total Government Assistance included in the Periods |
57,000 |
1,269,000 |
|
|
|
Year-to-Date: (six months ended June 3, 2022 compared with six months ended June 4, 2021)
|
YTD 2022 |
YTD 2021 |
| Sales |
$42,779,000 |
$39,300,000 |
|
|
|
| Gross Margin |
9,866,000 |
9,090,000 |
| Gross Margin (%) |
23.1% |
23.1% |
|
|
|
| Operating Earnings (1): |
3,158,000 |
3,204,000 |
|
|
|
| • R&D Investment |
3,032,000 |
2,887,000 |
| • R&D Tax Credits |
(356,000) |
(306,000) |
| • Foreign Exchange Loss |
289,000 |
1,162,000 |
| • Amortization of Intangibles |
61,000 |
159,000 |
| • Forgiveness of debt |
- |
(1,336,000) |
| Net Earnings before Tax |
132,000 |
638,000 |
|
|
|
| • Income Tax |
830,000 |
1,076,000 |
| • Non-controlling Interests |
21,000 |
(48,000) |
| Net (Loss) Earnings After Tax |
($719,000) |
($390,000) |
|
|
|
| (Loss) Earnings per share |
|
|
| - basic |
($0.03) |
($0.02) |
| - diluted |
($0.03) |
($0.02) |
|
|
|
| Government Assistance included in the Periods: |
|
|
| • Forgiveness of Debt |
- |
1,336,000 |
| • Other Government Subsidies |
314,000 |
2,352,000 |
| Total Government Assistance included in the Periods |
314,000 |
3,688,000 |
|
|
|
(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 2022 that continue to improve the Corporation and position it for the future, including:
- Achieved a 1.24:1 book-to-bill ratio for Q2 2022
- Booked a $1.4M order for military assemblies to be manufactured at the FTG Aerospace Chatsworth facility, with qualification parts to be delivered in late 2022 followed by production in 2023
- Total backlog as of the end of Q2 2022 is $49.6M, up 45% from Q2 2021
- As announced on June 30, 2022, FTG has been awarded up to $7.0M of funding from FedDev Ontario pursuant to the Aerospace Regional Recovery Initiative (ARRI) program. This funding will be in the format of a repayable contribution against qualifying investments made by FTG prior to March 31, 2024. The funding will be repayable, without interest, commencing in 2025 through to 2030.
Overall for FTG, sales increased by $2.0M or 10% from $20.3M in Q2 2021 to $22.3M in Q2 2022. The sales growth is driven by increased demand from Commercial Aerospace customers as well as a 2.5% favourable foreign exchange impact. On a year-to-date basis, sales were $42.8M compared to $39.3M for the same period last year.
The Circuits Segment sales were up $2.5M or 19% from $13.0M in Q2 2021 to $15.5M in Q2 2022. Sales growth was most pronounced at Circuits Toronto and our JV in China, as both of these sites are primarily serving the Commercial Aerospace market. On a year-to-date basis, net sales were $29.7M as compared to $25.0M for the prior year period.
For the Aerospace Segment, sales were down $0.5M or 7% from $7.3M in Q2 2021 to $6.8M in Q2 2022. The Aerospace segment continues to be challenged by the availability of electronic components. On a year-to-date basis, net sales were $13.1M as compared to $14.3M for the prior year period. For Q2, simulator product sales were down $0.2M, and for the year-to-date they are down $2.7M. Simulator product quotation and booking activity is starting to recover in 2022.
Gross margins in Q2 2022 were $5.6M or 25.2% compared to $5.4M or 26.7% in Q2 2021. The increased sales volume in Q2 2022 contributed positively to the gross margin rate, while a $1.0M reduction in government subsidies as compared to Q2 2021 represented a reduction in the gross margin rate of 4.4%. On a year-to-date basis, gross margin was $9.9M or 23.1% as compared to $9.0M or 23.1% for the comparable prior year period. Government subsidies included in cost of sales for the year-to-date period in 2022 were $0.3M as compared to $2.1M in 2021. In FTG’s case, sales volumes have increased as government support has been withdrawn.
Trailing Twelve Month (TTM) earnings before interest, tax, depreciation and amortization (EBITDA) for FTG was $8.8M, of which $2.1M was generated in Q2 2022.
The following table reconciles net earnings to EBITDA(2) for the trailing 12 months ended June 3, 2022.
|
Trailing 12 Months |
|
|
| Net earnings to equity holders of FTG |
(73,000) |
| Add: |
|
| Interest, Accretion |
482,000 |
| Income taxes |
2,162,000 |
| Depreciation/Amortization/ Stock Comp. |
6,242,000 |
|
|
| EBITDA |
$8,813,000 |
|
|
(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 earnings after tax at FTG in Q2 2022 was $0.0M or $0.00 per diluted share compared to $0.0M or $0.00 per diluted share in Q2 2021. The increased sales and gross margin in Q2 2022 was offset by reduced COVID-19 related government subsidies. In Q2 2022, government subsidies were limited to $0.1M from the US Department of Transportation AMJP program, whereas Q2 2021 included $1.3M of wage and rent subsidies in Canada. Excluding COVID-19 related government subsidies, net earnings after tax from FTG’s operations improved by $1.2M pre-tax in Q2 2022 compared to Q2 2021.
For the year-to-date period, FTG incurred a net loss of $0.7M or $0.03 per share as compared to a net loss of $0.4M or $0.02 per share for the comparable period of 2021. During the year-to-date period in 2022, government subsidies included $0.3M from the US Department of Transportation AMJP program, whereas the comparable period in 2021 included $3.7M of wage and rent subsidies in Canada and PPP loan forgiveness in the U.S. Excluding COVID-19 related government subsidies, net loss after tax from FTG’s operations improved by $3.0M pre-tax in the year-to-date period in 2022 compared to 2021.
The Circuits Segment net earnings before corporate and interest and other costs was $0.8M in Q2 2022 compared to $1.1M in Q2 2021. The increase in sales was the most significant impact on the segment profitability offset by reduced subsidies from the US and Canadian governments. Q2 2022 included $0.1M of government subsidies whereas Q2 2021 included $0.7M. Excluding the effect of government subsidies, net earnings from the Circuits Segment increased by $0.4M.
The Aerospace net earnings before corporate and interest and other costs in the quarter was $0.5M in Q2 2022 versus $0.4M in Q2 2021. The Aerospace Segment did not receive any government subsidies in Q2 2022 whereas Q2 2021 included $0.5M. Excluding the effect of government subsidies, net earnings from the Aerospace Segment increased by $0.6M.
As at June 3, 2022, the Corporation’s net working capital was $39.9M, compared to $40.0M at year-end in 2021.
Net cash at the end of Q2 2022 was $16.8M compared to net cash of $17.9M at the end of 2021.
The Corporation will host a live conference call on Thursday, July 14, 2022 at 8:30am (Eastern) to discuss the results of Q2 2022.
Anyone wishing to participate in the call should dial 416-764-8658 or 1-888-886-7786, Conference ID 05645534, 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 14, 2022 and will be available on the FTG website at www.ftgcorp.com. The number to call for a rebroadcast is 416-764-8692 or 1-877-674-7070, playback passcode: 645534 #.
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 and repairs 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.
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) |
|
June 3, |
November 30, |
|
| (in thousands of Canadian dollars) |
2022 |
2021 |
|
| ASSETS |
|
|
|
|
| Current assets |
|
|
|
| Cash and cash equivalents |
$ |
18,554 |
$ |
20,196 |
|
| Accounts receivable |
|
15,959 |
|
16,014 |
|
| Contract assets |
|
455 |
|
818 |
|
| Inventories |
|
|
17,390 |
|
16,953 |
|
| Income tax recoverable |
|
141 |
|
1 |
|
| Prepaid expenses and other |
|
3,548 |
|
3,162 |
|
|
|
|
|
56,047 |
|
57,144 |
|
| Non-current assets |
|
|
|
| Plant and equipment, net |
|
11,150 |
|
11,078 |
|
| Right-of-use assets |
|
9,710 |
|
10,098 |
|
| Investment tax credits recoverable |
|
28 |
|
327 |
|
| Intangible and other assets, net |
|
462 |
|
805 |
|
| Total assets |
|
|
77,397 |
|
79,452 |
|
| LIABILITIES AND EQUITY |
|
|
|
| Current liabilities |
|
|
|
| Accounts payable and accrued liabilities |
$ |
12,424 |
$ |
13,803 |
|
| Provisions |
|
|
986 |
|
545 |
|
| Contract liabilities |
|
549 |
|
335 |
|
| Current portion of bank debt |
|
926 |
|
935 |
|
| Current portion of lease liabilities |
|
1,311 |
|
1,553 |
|
|
|
|
|
16,196 |
|
17,171 |
|
| Non-current liabilities |
|
|
|
| Bank debt |
|
|
823 |
|
1,327 |
|
| Lease liabilities |
|
9,057 |
|
9,123 |
|
| Deferred tax payable |
|
861 |
|
789 |
|
| Total liabilities |
|
26,937 |
|
28,410 |
|
| Equity |
|
|
|
|
| Retained earnings |
$ |
18,604 |
$ |
19,391 |
|
| Accumulated other comprehensive income |
|
776 |
|
478 |
|
|
|
|
|
19,380 |
|
19,869 |
|
| Share capital |
|
|
|
| Common Shares |
|
21,832 |
|
21,881 |
|
| Contributed surplus |
|
8,343 |
|
8,352 |
|
| Total equity attributable to FTG’s shareholders |
|
49,555 |
|
50,102 |
|
| Non-controlling interest |
|
905 |
|
940 |
|
| Total equity |
|
50,460 |
|
51,042 |
|
| Total liabilities and equity |
$ |
77,397 |
$ |
79,452 |
|
|
|
|
|
|
|
| FIRAN TECHNOLOGY GROUP CORPORATION |
|
|
|
|
|
|
|
| Interim Condensed Consolidated Statements of Earnings (Loss) |
|
|
|
|
|
|
|
|
|
Three months ended |
|
Six months ended |
| (Unaudited) |
June 3, |
|
June 4, |
|
June 3, |
|
June 4, |
| (in thousands of Canadian dollars, except per share amounts) |
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
| Sales |
|
$ |
22,318 |
|
|
$ |
20,330 |
|
|
$ |
42,779 |
|
|
$ |
39,300 |
|
|
|
|
|
|
|
|
|
|
|
| Cost of sales |
|
|
|
|
|
|
|
| Cost of sales |
|
15,370 |
|
|
|
13,493 |
|
|
|
30,104 |
|
|
|
27,358 |
|
| Depreciation of plant and equipment |
|
968 |
|
|
|
1,037 |
|
|
|
2,096 |
|
|
|
2,114 |
|
| Depreciation of right-of-use assets |
|
356 |
|
|
|
372 |
|
|
|
713 |
|
|
|
738 |
|
| Total cost of sales |
|
16,694 |
|
|
|
14,902 |
|
|
|
32,913 |
|
|
|
30,210 |
|
| Gross margin |
|
5,624 |
|
|
|
5,428 |
|
|
|
9,866 |
|
|
|
9,090 |
|
|
|
|
|
|
|
|
|
|
|
| Expenses |
|
|
|
|
|
|
|
| Selling, general and administrative |
|
3,259 |
|
|
|
2,659 |
|
|
|
6,277 |
|
|
|
5,350 |
|
| Research and development costs |
|
1,640 |
|
|
|
1,505 |
|
|
|
3,032 |
|
|
|
2,887 |
|
| Recovery of investment tax credits |
|
(179 |
) |
|
|
(179 |
) |
|
|
(356 |
) |
|
|
(306 |
) |
| Depreciation of plant and equipment |
|
56 |
|
|
|
62 |
|
|
|
113 |
|
|
|
125 |
|
| Depreciation of right-of-use assets |
|
12 |
|
|
|
17 |
|
|
|
22 |
|
|
|
34 |
|
| Amortization of intangible assets |
|
30 |
|
|
|
70 |
|
|
|
61 |
|
|
|
159 |
|
| Interest expense (income) |
|
(12 |
) |
|
|
28 |
|
|
|
(3 |
) |
|
|
67 |
|
| Accretion on lease liabilities |
|
110 |
|
|
|
122 |
|
|
|
218 |
|
|
|
248 |
|
| Stock based compensation |
|
57 |
|
|
|
22 |
|
|
|
81 |
|
|
|
62 |
|
| Foreign exchange (gain) loss |
|
120 |
|
|
|
544 |
|
|
|
289 |
|
|
|
1,162 |
|
| Forgiveness of debt |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1,336 |
) |
| Total expenses |
|
5,093 |
|
|
|
4,850 |
|
|
|
9,734 |
|
|
|
8,452 |
|
|
|
|
|
|
|
|
|
|
|
| Earnings before income taxes |
|
531 |
|
|
|
578 |
|
|
|
132 |
|
|
|
638 |
|
|
|
|
|
|
|
|
|
|
|
| Current income tax expense |
|
462 |
|
|
|
554 |
|
|
|
758 |
|
|
|
1,015 |
|
| Deferred income tax expense |
|
36 |
|
|
|
35 |
|
|
|
72 |
|
|
|
61 |
|
| Total income tax expense |
|
498 |
|
|
|
589 |
|
|
|
830 |
|
|
|
1,076 |
|
|
|
|
|
|
|
|
|
|
|
| Net earnings (loss) |
|
33 |
|
|
|
(11 |
) |
|
|
(698 |
) |
|
|
(438 |
) |
|
|
|
|
|
|
|
|
|
|
| Attributable to: |
|
|
|
|
|
|
|
| Non-controlling interest |
$ |
19 |
|
|
$ |
(21 |
) |
|
$ |
21 |
|
|
$ |
(48 |
) |
| Equity holders of FTG |
|
14 |
|
|
|
10 |
|
|
|
(719 |
) |
|
|
(390 |
) |
|
|
|
|
|
|
|
|
|
|
| Earnings (loss) per share, attributable to the equity holders of FTG |
|
|
|
|
|
|
|
| Basic |
$ |
0.00 |
|
|
$ |
0.00 |
|
|
$ |
(0.03 |
) |
|
$ |
(0.02 |
) |
| Diluted |
$ |
0.00 |
|
|
$ |
0.00 |
|
|
$ |
(0.03 |
) |
|
$ |
(0.02 |
) |
|
|
|
|
|
|
|
|
|
|
| FIRAN TECHNOLOGY GROUP CORPORATION |
|
|
|
|
|
|
|
|
| Interim Condensed Consolidated Statements of Comprehensive Income (Loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Six months ended |
| (Unaudited) |
|
June 3, |
|
June 4, |
|
June 3, |
|
June 4, |
| (in thousands of Canadian dollars) |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
| Net earnings (loss) |
|
$ |
33 |
|
|
$ |
(11 |
) |
|
$ |
(697 |
) |
|
$ |
(438 |
) |
|
|
|
|
|
|
|
|
|
|
|
| Other comprehensive income (loss) to be reclassified to |
|
|
|
|
|
|
|
|
|
net earnings (loss) in subsequent periods: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in foreign currency translation adjustments |
|
|
(474 |
) |
|
|
(1,079 |
) |
|
|
(534 |
) |
|
|
(1,507 |
) |
|
Net gain on valuation of derivative financial instruments |
|
|
|
|
|
|
|
|
|
|
designated as cash flow hedges |
|
|
398 |
|
|
|
2,697 |
|
|
|
1,035 |
|
|
|
3,757 |
|
|
Deferred income taxes on net gain (loss) on valuation of |
|
|
|
|
|
|
|
|
|
|
derivative financial instruments designated as cash flow hedges |
|
|
(99 |
) |
|
|
(675 |
) |
|
|
(259 |
) |
|
|
(940 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
(175 |
) |
|
$ |
943 |
|
|
$ |
242 |
|
|
$ |
1,310 |
|
|
|
|
|
|
|
|
|
|
|
|
| Total comprehensive income (loss) |
|
$ |
(142 |
) |
|
$ |
932 |
|
|
$ |
(455 |
) |
|
$ |
872 |
|
|
|
|
|
|
|
|
|
|
|
|
| Attributable to: |
|
|
|
|
|
|
|
|
| Equity holders of FTG |
|
$ |
(101 |
) |
|
$ |
946 |
|
|
$ |
(420 |
) |
|
$ |
924 |
|
| Non-controlling interest |
|
$ |
(41 |
) |
|
$ |
(14 |
) |
|
$ |
(35 |
) |
|
$ |
(52 |
) |
|
|
|
|
|
|
|
|
|
|
|
| FIRAN TECHNOLOGY GROUP CORPORATION |
|
|
|
|
|
| Interim Condensed Consolidated Statements of Changes in Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Six months ended June 3, 2022 |
Attributed to the equity holders of FTG
|
|
|
|
|
|
|
|
Accumulated |
|
|
|
|
|
|
|
|
other |
|
Non- |
|
| (Unaudited) |
Common |
Retained |
Contributed |
comprehensive
|
|
controlling |
Total |
| (in thousands of Canadian dollars) |
shares |
earnings |
surplus |
income |
Total |
interest |
equity |
| Balance, November 30, 2021 |
$ |
21,881 |
|
$ |
19,391 |
|
$ |
8,352 |
|
$ |
478 |
$ |
50,102 |
|
$ |
940 |
|
$ |
51,042 |
|
| Net income (loss) |
|
- |
|
|
(719 |
) |
|
- |
|
|
- |
|
(719 |
) |
|
21 |
|
|
(698 |
) |
| Stock-based compensation |
|
- |
|
|
- |
|
|
(9 |
) |
|
- |
|
(9 |
) |
|
- |
|
|
(9 |
) |
| Repurchase and cancellation of shares |
|
(49 |
) |
|
(68 |
) |
|
- |
|
|
- |
|
(117 |
) |
|
- |
|
|
(117 |
) |
| Other comprehensive income (loss) |
|
- |
|
|
- |
|
|
- |
|
|
298 |
|
298 |
|
|
(56 |
) |
|
242 |
|
| Balance, June 3, 2022 |
$ |
21,832 |
|
$ |
18,604 |
|
$ |
8,343 |
|
$ |
776 |
$ |
49,555 |
|
$ |
905 |
|
$ |
50,460 |
|
|
|
|
|
|
|
|
|
|
| Six months ended June 4, 2021 |
Attributed to the equity holders of FTG |
|
|
|
|
|
|
|
Accumulated |
|
|
|
|
|
|
|
|
other |
|
Non- |
|
| (Unaudited) |
Common |
Retained |
Contributed |
comprehensive |
|
controlling |
Total |
| (in thousands of Canadian dollars) |
shares |
earnings |
surplus |
income |
Total |
interest |
equity |
| Balance, November 30, 2020 |
$ |
21,881 |
|
$ |
19,135 |
|
$ |
8,303 |
|
$ |
958 |
$ |
50,277 |
|
$ |
1,011 |
|
$ |
51,288 |
|
| Net income (loss) |
|
- |
|
|
(390 |
) |
|
- |
|
|
- |
|
(390 |
) |
|
(48 |
) |
|
(438 |
) |
| Stock-based compensation |
|
- |
|
|
- |
|
|
62 |
|
|
- |
|
62 |
|
|
- |
|
|
62 |
|
| Other comprehensive income (loss) |
|
- |
|
|
- |
|
|
- |
|
|
1,392 |
|
1,392 |
|
|
(82 |
) |
|
1,310 |
|
| Balance, June 4, 2021 |
$ |
21,881 |
|
$ |
18,745 |
|
$ |
8,365 |
|
$ |
2,350 |
$ |
51,341 |
|
$ |
881 |
|
$ |
52,222 |
|
|
|
|
|
|
|
|
|
|
| FIRAN TECHNOLOGY GROUP CORPORATION |
| Interim Condensed Consolidated Statements of Cash Flows |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Six months ended |
| (Unaudited) |
June 3, |
|
June 4, |
|
June 3, |
|
June 4, |
| (in thousands of Canadian dollars) |
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
| Net inflow (outflow) of cash related to the following: |
|
|
|
|
|
|
|
| Operating activities |
|
|
|
|
|
|
|
| Net earnings (loss) |
$ |
33 |
|
|
$ |
(11 |
) |
|
$ |
(698 |
) |
|
$ |
(438 |
) |
| Items not affecting cash and cash equivalents: |
|
|
|
|
|
|
|
| Stock-based compensation |
|
57 |
|
|
|
22 |
|
|
|
81 |
|
|
|
62 |
|
| Loss on disposal of plant and equipment |
|
(10 |
) |
|
|
- |
|
|
|
(10 |
) |
|
|
1 |
|
| Effect of exchange rates on U.S. dollar bank debt |
|
(33 |
) |
|
|
(95 |
) |
|
|
(63 |
) |
|
|
(284 |
) |
| Depreciation of plant and equipment |
|
1,024 |
|
|
|
1,099 |
|
|
|
2,209 |
|
|
|
2,239 |
|
| Depreciation of right-of-use assets |
|
368 |
|
|
|
389 |
|
|
|
735 |
|
|
|
772 |
|
| Amortization of intangible assets |
|
30 |
|
|
|
70 |
|
|
|
61 |
|
|
|
159 |
|
| Amortization, other |
|
10 |
|
|
|
13 |
|
|
|
16 |
|
|
|
25 |
|
| Investment tax credits/deferred income taxes |
|
439 |
|
|
|
(26 |
) |
|
|
675 |
|
|
|
46 |
|
| Accretion on lease liabilities |
|
110 |
|
|
|
122 |
|
|
|
218 |
|
|
|
248 |
|
| Forgiveness of debt |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1,336 |
) |
| Net change in non-cash operating working capital |
|
(703 |
) |
|
|
1,381 |
|
|
|
(986 |
) |
|
|
1,870 |
|
|
|
|
1,325 |
|
|
|
2,964 |
|
|
|
2,238 |
|
|
|
3,364 |
|
| Investing activities |
|
|
|
|
|
|
|
| Additions to plant and equipment |
|
(449 |
) |
|
|
(617 |
) |
|
|
(2,558 |
) |
|
|
(995 |
) |
| Recovery of contract and other costs |
|
274 |
|
|
|
12 |
|
|
|
277 |
|
|
|
22 |
|
| Additions to deferred financing costs |
|
(4 |
) |
|
|
- |
|
|
|
(4 |
) |
|
|
(8 |
) |
|
|
|
(179 |
) |
|
|
(605 |
) |
|
|
(2,285 |
) |
|
|
(981 |
) |
| Net cash flow from operating and investing activities |
|
1,146 |
|
|
|
2,359 |
|
|
|
(47 |
) |
|
|
2,383 |
|
| Financing activities |
|
|
|
|
|
|
|
| Repayments of bank debt |
|
(231 |
) |
|
|
(226 |
) |
|
|
(462 |
) |
|
|
(458 |
) |
| Lease liability payments |
|
(396 |
) |
|
|
(447 |
) |
|
|
(823 |
) |
|
|
(899 |
) |
| Repurchase and cancellation of shares |
|
(117 |
) |
|
|
- |
|
|
|
(117 |
) |
|
|
- |
|
|
|
|
(744 |
) |
|
|
(673 |
) |
|
|
(1,402 |
) |
|
|
(1,357 |
) |
| Effects of foreign exchange rate changes on cash flow |
|
(58 |
) |
|
|
(700 |
) |
|
|
(193 |
) |
|
|
(999 |
) |
| Net (decrease) increase in cash flow |
|
344 |
|
|
|
986 |
|
|
|
(1,642 |
) |
|
|
27 |
|
| Cash and cash equivalents, beginning of the period |
|
18,210 |
|
|
|
18,073 |
|
|
|
20,196 |
|
|
|
19,032 |
|
| Cash and cash equivalents, end of period |
$ |
18,554 |
|
|
$ |
19,059 |
|
|
$ |
18,554 |
|
|
$ |
19,059 |
|
|
|
|
|
|
|
|
|
|
| Disclosure of cash payments |
|
|
|
|
|
|
|
| Payment for interest |
$ |
22 |
|
|
$ |
29 |
|
|
$ |
47 |
|
|
$ |
71 |
|
| Payments for income taxes |
$ |
228 |
|
|
$ |
397 |
|
|
$ |
476 |
|
|
$ |
594 |
|
|
|
|
|
|
|
|
|
|
