FTG accomplished many goals in our second quarter 2013 that continue to improve the Corporation and position it for the future, including:
-- Achieved 30% growth in Aerospace business compared to same period last year-- Shipped four set of cockpit control panel assemblies to SAVIC for C919 single aisle aircraft program for use in their ground test program-- Shipped parts to another new customer from Aerospace - Tianjin facility-- Added new test equipment in all three Aerospace facilities
For FTG overall, sales decreased by $0.2M (1%), from $14.4M in Q2 2012 to $14.2M in Q2 2013. For the first six months, sales were $27.3M, a decrease of $0.6M or 2% over the same period last year.
The Circuits Segment sales were down $1.4M or 13% in Q2 2013 versus Q2 2012. The majority of the decrease in the quarter came from the Toronto facility. Compared to Q1 2013, Circuits sales were up $0.2M (3%). Year-to-date Circuits sales were down $2.5M or 12% with the decrease spread more evenly between the Toronto and Chatsworth facilities.
For the Aerospace segment, sales in Q2 2013 were up $1.2M or 31% to $5.1M compared to $3.9M in Q2 2012. This growth resulted from increased shipments on a military simulator program as well as from the two new facilities. Year-to-date sales were up $1.9M or 26%.
Net earnings at FTG in Q2 2013 were $47K compared to $631K in Q2 2012. Included in this year's earnings are expenses of $0.3M incurred in the quarter related to the startup of FTG Aerospace - Tianjin and FTG Aerospace - Chatsworth. For the six month period, net loss was $0.6M versus $0.7M profit last year.
The Circuits segment net earnings before corporate, interest and tax costs was $0.3M in Q2 2013 compared to $1.2M in Q2 2012. On a year-to-date basis, earnings were $0.2M versus $1.6M for the same period last year. The decrease was due to lower activity and some one-time costs related to outside services.
The Aerospace net earnings before corporate and interest costs was $0.6M in Q2 2013 versus $0.0M in Q2 2012. The results are due to higher activity, offset by startup costs at the two new facilities in California and China. For the first six months 2013, earnings were $0.5M, an increase of $0.2M, again due to the above noted items.
As at May 31, 2013, the Corporation's primary source of liquidity included cash of $0.6M, accounts receivable of $12.1M and inventory of $8.6M. Receivables increased in the quarter due to large milestone invoices on two programs in the Aerospace segment issued late in the quarter. Net working capital at November 30, 2012 was $10.8M.
The Corporation will host a live conference call on July 10, 2013 at 11:30 am (Eastern) to discuss the results of the second quarter 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 July 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 9638529.
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.