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Circa Reports Sales and Operating results for the First Quarter Ended March 31, 2014 - KOAM TV 7

Circa Reports Sales and Operating results for the First Quarter Ended March 31, 2014

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SOURCE Circa Enterprises Inc.

CALGARY, May 9, 2014 /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, 2014.

Summary of first quarter operating results:

  • Q1 2014 consolidated sales of $7.3 million, representing a 60.8% increase compared to Q1 2013 sales of $4.6 million
  • Profit for the period from continuing operations for Q1 2014 of $275,000 compared to a loss from continuing operations of $204,000 for Q1 2013
  • Earnings per share of $0.03 for Q1 2014 compared to a loss per share of $0.02 in Q1 2013
  • EBITDA of $464,000 for Q1 2014 compared to EBITDA of ($188,000) for Q1 2013 (see below for explanation and calculation of EBITDA)
  • Working capital of $7.8 million, including $737,000 in cash and no outstanding debt at March 31, 2014

EBITDA is earnings before interest, taxes, depreciation and amortization.  EBITDA is a non-IFRS financial measure and does 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 is a useful supplemental measure, 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 should not be construed as an alternative to comprehensive income determined in accordance with IFRS as an indicator of the Company's financial performance. EBITDA is calculated by the Company as follows:



Three months

31 Mar 2014

Three months

31 Mar 2013


$000's

$000's

Profit (loss) for the period from continuing operations

275

(204)

Income taxes

137

(42)

Interest

1

3

Depreciation and amortization

51

55

EBITDA

464

(188)

Consolidated sales for the first quarter of 2014 were $7.3 million -- a $2.8 million or 60.8% increase over the same period in 2013. The increase in sales is primarily from the Telecom segment, which saw a 151.9% increase in sales over the same period in 2013, due to an increase in orders from the Telecom OEM industry.

As a result of increased in sales, the Company earned an after tax profit of $275,000, compared to an after tax loss of $204,000 in the first quarter of 2013.  Total comprehensive income increased by $550,000; from a loss of $158,000 in Q1 2013 to $392,000 in Q1 2014.  The improved results are attributed to increased sales and productivity gains over the prior year.

Grant Reeves, Circa's Interim President and Chief Executive Officer, stated:

"Circa posted solid operating results in the first quarter of 2014 due to very strong revenues in the Telecom OEM business.  The unusually cold and prolonged winter across North America affected sales in both operating segments as many of the Company's products are tied to outdoor construction and installation.  Despite the poor weather, we are pleased with the results for the first quarter as we concentrate our efforts on growing other revenue streams in the business.

The Company successfully executed on several opportunities late in 2013 that are expected to result in successful sales bids in 2014.  Management is continuing to work with its customers and sales distributors in order to drive sales growth by introducing new products and expanding its markets.  The Company is also continuing to look for new, strategic business acquisitions."


CIRCA ENTERPRISES INC.
Consolidated Statements of Comprehensive Income


Unaudited


Three months ended

31 March 2014

Three months ended

31 March 2013


$000's

$000's




Sales

7,326

4,557

Cost of sales

(5,751)

(3,666)

Gross profit

1,575

891

Selling, general and administrative expenses

(1,166)

(1,134)

Operating profit (loss)

409

(243)

Other income

4

-

Finance costs

(1)

(3)

Profit (loss) before tax

412

(246)

Income tax expense

(137)

42

Profit (loss) for the period from operations attributable to shareholders of the Company

275

(204)

Other comprehensive income:



Exchange differences on translating foreign operations, net of tax

117

46

Total comprehensive income (loss) for the period attributable to shareholders of the Company

392

(158)




Earnings (loss) per share (in $'s)



Basic and diluted

0.03

(0.02)

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.

©2012 PR Newswire. All Rights Reserved.

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