Circa Reports Sales and Operating results for the Fourth Quarter and Fiscal
Year Ended December 31, 2009

CALGARY, March 19 /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, 2009.

    
    Summary of fourth quarter operating results:

    -   Consolidated sales of $6.4 million, representing a 21.6% decrease
        compared to Q4 2008 sales of $8.2 million
    -   Adjusted EBITDA of $0.6 million for the quarter compared to ($0.4
        million) for Q4 2008 (see below for explanation and calculation of
        Adjusted EBITDA)
    -   Net loss of $0.2 million or $0.02 per share in the fourth quarter of
        2009 as compared to a loss of $1.6 million or $0.17 per share in Q4
        2008. The net loss includes a valuation allowance of $0.2 million
        recorded in Q4 2009 on the Company's future tax asset -- in the
        fourth quarter of 2008, the Company recorded an after tax impairment
        charge of $1.8 million
    -   Cash flow from operations in Q4 2009 of $0.5 million compared to cash
        from operations in Q4 2008 of ($0.1 million)

    Summary of fiscal year operating results:

    -   Consolidated sales of $26.3 million, representing a 23.6% decrease
        compared to 2008 sales of $34.4 million
    -   Adjusted EBITDA of $1.2 million, compared to ($0.3 million) for the
        2008 fiscal year
    -   Net loss of $1.2 million or $0.13 per share in 2009 as compared to a
        loss of $1.9 million or $0.20 per share for the 2008 fiscal year. The
        net loss includes a valuation allowance of $0.2 million recorded in
        2009 on the Company's future tax asset -- in 2008, the Company
        recorded an after tax impairment charge of $1.8 million
    -   Cash flow from operations in 2009 of $0.5 million compared to cash
        from operations in Q4 2008 of ($1.5 million)
    

Adjusted EBITDA is earnings before interest, taxes, depreciation and amortization and is adjusted for other non-recurring items and non-cash items, including asset impairment charges and restructuring costs. Adjusted EBITDA is a non-GAAP financial measure and does not have any standardized meaning prescribed by Canadian generally accepted accounting principles and is, therefore, unlikely 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 net earnings (loss) determined in accordance with GAAP as an indicator of the Company's financial performance. Adjusted EBITDA is calculated by the Company as follows:

    
    -------------------------------------------------------------------------
                           (unaudited)  (unaudited)  (unaudited)  (unaudited)
                              Quarter      Quarter         Year         Year
                                ended        ended        ended        ended
                         Dec 31, 2009 Dec 31, 2008 Dec 31, 2009 Dec 31, 2008
                                    $            $            $            $
    -------------------------------------------------------------------------
    Net loss and
     comprehensive loss          (161)      (1,648)      (1,231)      (1,916)
    Provision for (recovery
     of) income taxes             447         (904)         602       (1,117)
    Interest                       21           43          103          168
    Depreciation and
     amortization                  97          217          432          864
    Foreign currency
     translation loss (gain)       62         (547)         516         (707)
    Non-cash impairment
     write down                     -        2,425            -        2,425
    Restructuring costs           158            -          734            -
    -------------------------------------------------------------------------
                                  624         (414)       1,156         (283)
    -------------------------------------------------------------------------
    

Consolidated sales for the fourth quarter of 2009 were $6.4 million -- a $1.8 million or 21.6% decrease over the same period in 2008 -- and continued the trend of weak sales in 2009 as compared to 2008. The decrease resulted from lower sales in both of the Company's business segments (surge protection and Circa Metals) and across all product lines. For the year ended December 31, 2009, consolidated sales of $26.3 million represented a decrease of $8.1 million or 23.5% over 2008. Decreased sales were experienced in both business segments (surge protection and Circa Metals); however, the surge protection business sales saw a sharper decline.

Circa's gross profit, defined as sales less cost of sales, for 2009 increased to $5.8 million from $5.6 million in the prior year, despite the significant decline in sales. The impact of lower sales were more than offset by higher selling prices of products and lower labour, materials and overhead costs. Cost reductions were the result of restructuring efforts, which involved a reduction in the number of employees, negotiated reductions in the cost of certain raw materials, increased reliance upon offshore manufacturing and the consolidation of certain Circa Metals operations.

    
    CIRCA ENTERPRISES INC.
    Consolidated Balance Sheets
    (000's of Canadian dollars)

    -------------------------------------------------------------------------
    As at December 31                                      2009         2008
                                                              $            $
    -------------------------------------------------------------------------
    ASSETS
    Current
      Cash                                                  350          520
      Accounts receivable                                 3,588        3,874
      Income taxes recoverable                               58          176
      Inventory                                           5,842        7,413
      Prepaid expenses                                      295          280
    -------------------------------------------------------------------------
                                                         10,133       12,263
    Property, plant and equipment                         1,086        1,545
    Assets held for sale                                    105            -
    Deferred charges                                        286          334
    Intangible assets                                        17            5
    Future income taxes                                     782        1,305
    -------------------------------------------------------------------------
                                                         12,409       15,452
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    LIABILITIES
    Current
      Bank indebtedness                                   3,391        3,930
      Accounts payable and accrued liabilities            2,476        3,745
    -------------------------------------------------------------------------
                                                          5,867        7,675
    Future income taxes                                      38           53
    -------------------------------------------------------------------------
                                                          5,905        7,728
    -------------------------------------------------------------------------
    SHAREHOLDERS' EQUITY
      Share capital                                       2,710        2,699
      Contributed surplus                                     2            2
      Retained earnings                                   3,792        5,023
    -------------------------------------------------------------------------
                                                          6,504        7,724
    -------------------------------------------------------------------------
                                                         12,409       15,452
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


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

    -------------------------------------------------------------------------
    Years ended December 31                                2009         2008
                                                              $            $
    -------------------------------------------------------------------------
    SALES                                                26,302       34,417
    COST OF SALES
      Direct costs                                       20,373       28,334
      Depreciation and amortization                         168          533
    -------------------------------------------------------------------------
                                                          5,761        5,550
    -------------------------------------------------------------------------
    EXPENSES
      Selling, general and administrative                 4,720        6,353
      Depreciation and amortization                         264          331
      Restructuring costs                                   734            -
      Interest                                              103          168
      Property, plant and equipment impairment charge         -        2,152
      Deferred charges impairment charge                      -          273
      Loss on disposal of assets                             53           13
      Foreign currency translation loss (gain)              516         (707)
    -------------------------------------------------------------------------
                                                          6,390        8,583
    -------------------------------------------------------------------------
    LOSS BEFORE INCOME TAXES                               (629)      (3,033)
    -------------------------------------------------------------------------
    PROVISION FOR (RECOVERY OF) INCOME TAXES
      Current                                                94          245
      Future                                                508       (1,362)
    -------------------------------------------------------------------------
                                                            602       (1,117)
    -------------------------------------------------------------------------
    NET LOSS AND COMPREHENSIVE LOSS                      (1,231)      (1,916)
    RETAINED EARNINGS, BEGINNING OF YEAR                  5,023        6,939
    -------------------------------------------------------------------------
    RETAINED EARNINGS, END OF YEAR                        3,792        5,023
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    LOSS PER SHARE
    Basic and diluted                                     (0.13)       (0.20)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    CIRCA ENTERPRISES INC.
    Consolidated Statements of Cash Flows
    (000's of Canadian dollars)

    -------------------------------------------------------------------------
    Years ended December 31                                2009         2008
                                                              $            $
    -------------------------------------------------------------------------
    CASH FLOWS RELATED TO THE FOLLOWING ACTIVITIES:
    OPERATING
      Net loss                                           (1,231)      (1,916)
      Adjustments for:
        Depreciation and amortization                       432          864
        Loss on disposal of assets                           53           13
        Property, plant and equipment impairment charge       -        2,152
        Deferred charges impairment charge                    -          273
        Stock compensation expense                            -            2
        Future income taxes                                 508       (1,362)
    -------------------------------------------------------------------------
                                                           (238)          26
      Changes in non-cash working capital                   715       (1,510)
    -------------------------------------------------------------------------
                                                            477       (1,484)
    -------------------------------------------------------------------------
    FINANCING
      Proceeds from issuance of share capital                11           10
      (Decrease) increase in bank indebtedness             (539)       2,307
    -------------------------------------------------------------------------
                                                           (528)       2,317
    -------------------------------------------------------------------------
    INVESTING
      Purchase of property, plant and equipment             (47)        (453)
      Proceeds from sale of property, plant and equipment     6            1
      Additions to deferred charges                         (40)        (110)
      Additions to intangible assets                        (14)           -
      Changes in non-cash working capital                   (24)          51
    -------------------------------------------------------------------------
                                                           (119)        (511)
    -------------------------------------------------------------------------
    NET (DECREASE) INCREASE IN CASH                        (170)         322
    CASH, BEGINNING OF YEAR                                 520          198
    -------------------------------------------------------------------------
    CASH, END OF YEAR                                       350          520
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

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 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 audited 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 and the Company's website at www.circaent.com.

%SEDAR: 00002951E

SOURCE Circa Enterprises Inc.

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.circaent.com


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