Circa Reports Sales and Operating results for the First Quarter Ended March 31, 2009



    CALGARY, May 7 /CNW/ - Circa Enterprises Inc. (CTO-TSX) (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, 2009.

    
    -------------------------------------------------------------------------
    Selected financial information
    for the three month period ended March 31           Q1 2009      Q1 2008
    -------------------------------------------------------------------------
    Sales                                                 6,019        8,675
    -------------------------------------------------------------------------
    Net (loss) income                                      (647)          75
    -------------------------------------------------------------------------
    Basic and diluted (loss) earnings per share           (0.07)        0.01
    -------------------------------------------------------------------------

    Summary of first quarter operating results:

    -   Consolidated sales of $6.0 million, representing a 30.6% decrease
        over the first quarter of 2008
    -   Net loss of $0.6 million or $0.07 per share, as compared to net
        income of $0.1 million or $0.01 per share in the first quarter of
        2008
    

    Consolidated sales for the first quarter of 2008 were $6.0 million; a
$2.7 million or 30.6% decrease over the same period in 2008. This decrease can
be attributed to lower sales, mainly in the telecom business and from the
Company's third-party module sales agreement.
    Circa's gross profit for Q1 2009 was lower than the corresponding quarter
in 2008 and reflects, amongst other things, a sales decline on higher margin
products in the telecom business and the negative effect of the economic
conditions in U.S. markets in 2009. In addition, Q1 2009 gross profit from the
Circa Metals business was down significantly from the first quarter of 2008 as
the Company's revenue and pricing did not keep pace with the higher costs and
overheads in the Circa Metals subsidiary. Circa management is attempting to
address these issues through price increases and significant cost cutting
measures.
    At March 31, 2009, the Company's working capital was $3.7 million,
including $0.2 million in cash. Circa ended the quarter with $3.8 million in
current bank indebtedness, which included $1.0 million attributable to the
2007 repayment of the outstanding current balance owing on the term loan
facility. The Company had total shareholders' equity of $7.1 million and 9.5
million shares outstanding at March 31, 2009.



    
    CIRCA ENTERPRISES INC.
    Consolidated Balance Sheets
    (Thousands of Canadian dollars)

    -------------------------------------------------------------------------
                                                       March 31, December 31,
                                                           2009         2008
                                                              $            $
    -------------------------------------------------------------------------

    ASSETS
    Current
      Cash                                                  196          255
      Accounts receivable                                 3,218        3,874
      Income taxes recoverable                              121          176
      Inventory                                           7,584        7,413
      Prepaid expenses                                      296          280
    -------------------------------------------------------------------------
                                                         11,415       11,998
    Property, plant and equipment                         1,473        1,545
    Deferred charges                                        354          334
    Intangible assets                                         9            5
    Future income taxes                                   1,661        1,402
    -------------------------------------------------------------------------
                                                         14,912       15,284
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    LIABILITIES
    Current
      Bank indebtedness                                   3,780        3,665
      Accounts payable and accrued liabilities            3,919        3,745
    -------------------------------------------------------------------------
                                                          7,699        7,410
    Future income taxes                                     136          150
    -------------------------------------------------------------------------
                                                          7,835        7,560
    -------------------------------------------------------------------------

    SHAREHOLDERS' EQUITY
      Share capital                                       2,699        2,699
      Contributed surplus                                     2            2
      Retained earnings                                   4,376        5,023
    -------------------------------------------------------------------------
                                                          7,077        7,724
    -------------------------------------------------------------------------
                                                         14,912       15,284
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    CIRCA ENTERPRISES INC.
    Consolidated Statements of Loss and
    Comprehensive Loss and Retained Earnings
    (Thousands of Canadian dollars, except per share amounts)

    -------------------------------------------------------------------------
                                                   Three months Three months
                                                          ended        ended
                                                       March 31,    March 31,
                                                           2009         2008
                                                              $            $
    -------------------------------------------------------------------------

    SALES                                                 6,019        8,675

    COST OF SALES
      Direct costs                                        5,258        6,854
      Depreciation and amortization                          45          133
    -------------------------------------------------------------------------
                                                            716        1,688
    -------------------------------------------------------------------------
      General and administrative                            835          857
      Marketing and selling                                 646          617
      Engineering                                            65           88
      Depreciation and amortization                          61           87
      Interest - current                                     30           37
      Foreign currency translation gain                     (41)         (35)
    -------------------------------------------------------------------------
                                                          1,596        1,651
    -------------------------------------------------------------------------
    LOSS BEFORE INCOME TAXES                               (880)          37
    -------------------------------------------------------------------------
    PROVISION FOR INCOME TAXES
      Current                                                40           63
      Future                                               (273)        (101)
    -------------------------------------------------------------------------
                                                           (233)         (38)
    -------------------------------------------------------------------------
    NET (LOSS) EARNINGS AND COMPREHENSIVE
     (LOSS) EARNINGS                                       (647)          75
    RETAINED EARNINGS, BEGINNING OF PERIOD                5,023        6,939
    -------------------------------------------------------------------------
    RETAINED EARNINGS, END OF PERIOD                      4,376        7,014
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (LOSS) EARNINGS PER SHARE
    Basic and diluted                                     (0.07)        0.01
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    Circa Enterprises Inc. is a public company with offices in Alberta,
Ontario and Florida. The outstanding common shares of Circa Enterprises Inc.
are listed and trade on the Toronto Stock Exchange under the ticker symbol
CTO. The Toronto Stock Exchange has neither approved nor disapproved the
information contained herein.

    %SEDAR: 00002951E




For further information:

For further information: Mr. Ivan Smith, Interim President and CEO,
Circa Enterprises Inc., (403) 258-2011; Mr. Cory Tamagi, VP Finance and CFO,
Circa Enterprises Inc., (403) 258-2011; E-Mail: investor@circaent.com;
Website: www.circatel.com


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890