MONTREAL, Nov. 24 /CNW Telbec/ - ExelTech Aerospace Inc. ("ExelTech" or the "Company") (TSX-V: XLT.V), a leading aircraft maintenance, repair and overhaul ("MRO") provider with operations in Montreal and Quebec City, today announced its financial results for the second quarter ended September 30, 2008. All amounts are in Canadian dollars unless otherwise indicated.
The Company's revenues decreased by 27% to $9.0 million in the quarter ended September 30, 2008, compared to $12.2 million during the quarter ended September 30, 2007 as numerous customers took a "wait and see" stance during the early part of the quarter and only resumed normal workload commencing in September.
The Company's gross margin decreased to 5.3% in the quarter ended September 30, 2008, compared to 22.2% during the quarter ended September 30, 2007. This decrease is entirely due to the decrease in revenues as a significant portion of the Company's cost of goods sold is fixed.
The Company's Earnings before amortization, financial expenses and income taxes (EBITDA), a measure of operating performance used by management and certain users of our financial statements, decreased to $2.8 million negative or 31% in the quarter ended September 30, 2008, compared to $0.8 million, a positive 7 % in the quarter ended September 30, 2007.
The Company's Net Loss was $16.7 million in the quarter ended September 30, 2008, due mainly to a goodwill impairment in the amount of $13.2 million. This goodwill resulted from the business combination of ExelTech Aerospace and NordTech Aerospace in February 2005. In the quarter ended September 30, 2007, the Company had a Net Income of $0.4 million. Following this impairment the book value of the Company is $15.0 million or approximately 9.5 cents per share.
The Company completed 25 major maintenance checks in the quarter ended September 30, 2008 compared to 27 in the quarter ended September 30, 2007.
"While these are very disappointing results, they are not unexpected in light of the regional aviation industry condition during this quarter. Billable work in July and August, at the time Exeltech moved into in its new premises, was severely depressed but saw substantial improvement at the end of the quarter", stated Robin Wohnsigl, ExelTech's CEO, "we have seen a resumption of normal workloads and have been working at almost full capacity since the end of the last quarter".
On August 21, 2008 the company officially opened its new Montreal heavy maintenance facility, which provides the company with an additional 30% capacity. Also the use of modern computerized work control stations in the new hangar has led to more efficient work flow. The addition of Non-Destructive Test capabilities has improved through-put and turn-around time. In September, the company inaugurated a new product line with the addition of Republic Holdings (Chautauqua Airlines, Shuttle America and Republic Airlines) Embraer 170 aircraft workload.
About ExelTech Aerospace
The third-largest commercial airframe Maintenance, Repair, and overhaul (MRO) vendor in Canada, ExelTech Aerospace is listed on the TSX Venture Exchange and trades under the symbol XLT. The company holds Transport Canada, US Federal Aviation Administration (FAA), European Aviation Safety Agency (EASA) and Bermuda Department of Civil Aviation (BDCA) approvals to maintain a range of aircraft and associated structures, components and systems. Aircraft models serviced by ExelTech Aerospace include Embraer ERJ 145 family and EJet 170/190 family, and Bombardier CRJ regional jets and ATR-42 and 72, Bombardier Dash-8 and Saab 340 regional turboprops and Boeing 737 narrow bodies.
In the summer of 2008, ExelTech opened a purpose-built 140,000 square feet state-of-the-art maintenance facility at Montreal's Pierre Elliott Trudeau International Airport where the EJet family will be serviced. It also converted a former heavy maintenance facility into a dedicated line maintenance facility servicing domestic and international customers for Montreal's Trudeau international airport.
With 310,000 square feet of hangar, shop and office space in three facilities at Montreal and Quebec City, and with marketing offices in the US and Europe, ExelTech Aerospace provides maintenance repair and overhaul services to airlines in Canada, the US and 24 other countries around the world.
To learn more about ExelTech Aerospace Inc. (TSX-V: XLT.V), please visit our website at www.exeltech-aerospace.com.
The TSX Venture Exchange Inc. has not reviewed and does not accept
responsibility for the adequacy of this release.
SELECTED FINANCIAL INFORMATION OF EXELTECH AEROSPACE INC.
Consolidated
statements of
earnings and For the three-month For the six-month
comprehensive periods ended periods ended
income September 30 September 30
2008 2007 2008 2007
$ $ $ $
Revenue 8,975,768 12,217,236 24,232,668 25,920,184
Cost of sales 8,497,485 9,508,667 22,483,737 20,260,749
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478,283 2,708,569 1,748,931 5,659,435
Operating expenses 3,289,409 1,889,732 5,874,091 4,184,664
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Earnings before
the following (2,811,126) 818,837 (4,125,160) 1,474,771
Amortization 441,680 302,035 776,927 606,033
Goodwill impairment 13,241,506 - 13,241,506 -
Financial (income)
expenses 1,317,750 (45,006) 1,492,908 236,506
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Earnings before
income taxes (17,812,062) 561,808 (19,636,501) 632,232
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Income taxes (1,069,352) 205,109 (1,556,823) 256,742
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Net earnings and
comprehensive
income (16,742,710) 356,699 (18,079,678) 375,490
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Net earnings per
share - basic and
diluted (0.11) 0.00 (0.11) 0.00
As at As at
September 30 March 31
Consolidated balance sheets 2008 2008
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$ $
ASSETS
Current assets 17,708,818 37,433,052
Capital assets 28,021,430 15,439,687
Intangible assets 217,336 294,836
Future income taxes 5,223,746 3,812,655
Goodwill - 13,241,506
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TOTAL ASSETS 51,171,330 70,221,736
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LIABILITIES
Current liabilities 17,523,419 18,788,155
Long-term debt including liability portion of
debentures 18,016,482 18,339,121
Other 649,183 457,083
SHAREHOLDERS' EQUITY 14,982,246 32,637,377
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 51,171,330 70,221,736
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ContactsGérard Moretti Chief Financial Officer
(514) 631-8999 ext 2406
gmoretti@exeltech-aerospace.com
136.40 (1.48%)