Avcorp announces 2013 First Quarter Financial Results

VANCOUVER, May 9, 2013 /CNW/ – Avcorp Industries Inc. (TSX: AVP) (the “Company” or “Avcorp”) today announced its financial results for the quarter ended March 31, 2013.

During the quarter ended March 31, 2013, the Company recorded income from operations of $440,000 on $19,946,000 revenue, as compared to $860,000 operating income on $25,006,000 revenue for the same quarter in the preceding year; and net income for the current quarter of $108,000 as compared to net income of $151,000 for the quarter ended March 31, 2012.

Current quarter revenues have decreased from the same quarter in the preceding year primarily as a result of the wind-down of Cessna Aircraft Company (Cessna) programs.

Earnings before interest, taxes, depreciation and amortization (EBITDA) was positive $1,241,000 for the quarter ended March 31, 2013 compared to a positive EBITDA of $1,951,000 for the quarter ended March 31, 2012. The decline in EBITDA was primarily as a result of reduced revenues.

Cash flows from operating activities during the quarter ended March 31, 2013 utilized $1,416,000 of cash as compared to utilizing $267,000 of cash during the quarter ended March 31, 2012. The Company has a working capital surplus of $30,902,000 as at March 31, 2013 which has decreased from the December 31, 2012 $34,819,000 surplus, as a result of an increase in bank indebtedness and accounts payable. The Company’s accumulated deficit as at March 31, 2013 is $55,267,000 (December 31, 2012: $55,375,000).

On May 9, 2013, the Company completed a private placement, which was approved by the Toronto Stock Exchange on April 18, 2013, of 25,489,807 common shares at $0.049 per share for gross proceeds of approximately $1,249,000. The subscriber in the private placement was Panta Canada B.V. (“Panta”), the principal of which is a director of the Company. Following completion of the private placement, Panta owns approximately 57.9% of the outstanding common shares of Avcorp.