Circa Reports Sales and Operating results for the Fourth Quarter and Fiscal Year Ended December 31, 2014

CALGARY, March 19, 2015 /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 fourth quarter and year ended December 31, 2014.

OPERATING RESULTS

Summary of fourth quarter operating results:

  • Consolidated sales of $6.6 million in Q4 2014, representing a 4.4% decrease compared to Q4 2013 sales of $6.9 million
  • Profit from operations for the fourth quarter of 2014 of $166,000 compared to profit from operations of $389,000 for Q4 2013
  • EBITDA of $274,000 for the fourth quarter of 2014 compared to $547,000 for Q4 2013 (see below for explanation and calculation of EBITDA)
  • The Company paid a cash dividend of $0.05 per share during the quarter
  • Earnings per share of $0.02 in Q4 2014 compared to $0.04 in Q4 2013

Summary of fiscal year operating results:


  • Consolidated sales of $27.9 million, an increase of 15.5% over the 2013 sales of $24.2 million
  • Profit from operations for the year of $1.2 million or $0.12 per share in 2014 compared to profit from operations of $0.8 million or $0.08 per share for the 2013 fiscal year
  • EBITDA of $1.8 million in 2014, compared to $1.3 million for the 2013 fiscal year
  • Earnings per share of $0.12 in 2014 compared to $0.08 in 2013
  • Cash balance of $1.7 million, no debt and working capital of $8.3 million at December 31, 2014

EBITDA is earnings before interest, taxes, depreciation and amortization.  EBITDA is a non-IFRS financial measures and do 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 (loss) determined in accordance with IFRS as an indicator of the Company's financial performance. EBITDA is calculated by the Company as follows:







Year ended

31 Dec 2014

Year ended

31 Dec 2013

Three months

31 Dec 2014

Three months

31 Dec 2013


$000's

$000's

$000's

$000's

Profit for the period from operations

1,151

818

166

389

Income taxes

426

283

48

102

Interest

2

16

-

1

Depreciation and amortization

222

223

60

55

EBITDA

1,801

1,340

274

547

Consolidated sales for the fourth quarter of 2014 were $6.6 million -- a $0.3 million or 4.4% decrease compared to the same period in 2013.  Sales improved by $255,000 in the Metals segment, offset by a $555,000 decrease in the telecom segment attributable to the completion of OEM demand for an underlying project and slightly less demand for traditional products. For the year ended December 31, 2014, the Company recorded consolidated sales of $27.9 million compared to $24.2 million in 2013. The annual increase was due mainly to strong telecom OEM sales and a modest increase in Metals segment sales.

Lower sales in the current quarter had an expected negative impact on the Company's earnings compared to the fourth quarter of 2013.  The Company posted a profit of $166,000 for the quarter compared to profit of $389,000 in 2013.  For the year ended December 31, 2014, however, profit improved to $1.2 million from $0.8 million in the prior year.  As noted in the chart above, the Company generated positive EBITDA of $1.8 million for the year ended December 31, 2014 and $0.3 million in the fourth quarter of 2014.

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

"Circa's 2014 full year performance resulted in improved revenues, earnings and cash flows, which allowed the Company to issue a special dividend for the second time in three years and reinvest in its manufacturing equipment. The Company successfully executed on several opportunities in 2014 to achieve these results, including a major new program with an OEM customer and focusing on higher margin custom metal business. The second half of the year reflects a return to more traditional levels that are expected to continue into 2015. The Company's strong balance sheet enables strategic investments in equipment, expanded product lines and targeted marketing initiatives that will grow revenues and increase margins."

CIRCA ENTERPRISES INC.
Consolidated Statements of Comprehensive Income






For the years ended December 31


2014

2013



$000's

$000's





Sales


27,932

24,175

Cost of sales


(21,752)

(18,551)

Gross profit


6,180

5,624

Selling, general and administrative expenses


(4,609)

(4,508)

Operating profit


1,571

1,116

Gain on sale of assets


-

1

Other income


8

-

Finance costs


(2)

(16)

Profit before tax


1,577

1,101

Income tax expense


(426)

(283)

Profit for the year from operations attributable to shareholders of the Company


1,151

818

Other comprehensive income:




Exchange differences on translating foreign operations, net of tax


249

184

Total comprehensive income for the year attributable to shareholders of the Company


1,400

1,002





Earnings per share (in $'s)




Basic and diluted


0.12

0.08

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 annual 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.

SOURCE Circa Enterprises Inc.

For further information: Mr. Grant Reeves, 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.circaent.com

RELATED LINKS
http://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