THIRD QUARTER RESULTS TO BE ANNOUNCED FEBRUARY 19
COMPANY TO UNDERTAKE DISCUSSIONS WITH DEBENTUREHOLDERS FOR EXTENSION
MONTREAL, Jan. 29 /CNW Telbec/ - ExelTech Aerospace Inc. ("ExelTech" or
the "Company") (TSX-V: XLT), a leading aircraft maintenance, repair and
overhaul ("MRO") provider with operations in Montreal and Quebec City, today
announced that it has seen an improvement in revenue through the third quarter
(ending December 31, 2008) due to the recently opened 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. Colgan Airlines (SAAB 340)
was also welcomed as a new customer in the third quarter. Production in the
Quebec City facility has shown improvement over the third quarter last year.
ExelTech announced that it will release financial results for the third
quarter ended December 31, 2008 on February 19, 2009.
The Company also announced that its board of directors has determined
that it would be prudent, and in the best interests of ExelTech, to enter into
discussions with current holders of convertible debentures which mature on
February 26, 2009 (the "Debentures"), to extend the maturity date of the
Debentures. While ExelTech's cash position has improved since the end of the
last publicly announced quarter, continued growth of the Company will require
access to cash which might not otherwise be readily available under current
market conditions. Any proposed extension or amendment to the terms of the
Debentures is subject to the consent of the debenture holders in accordance
with the trust indenture creating the Debentures, the receipt of board of
directors approval and the approval of TSX Venture Exchange.
The Company also noted that, as disclosed in its last quarterly report
dated September 30, 2008, ExelTech remains in negotiations to renew its credit
facilities with its bank at the current time.
The third-largest commercial airframe Maintenance, Repair, and overhaul
(MRO) vendor in Canada, ExelTech 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 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 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), please visit
our website at www.exeltech-aerospace.com.
Certain statements made in this news release, including, without
limitation, statements relating to the Company's expectations concerning
future revenues and earnings, market conditions and the sufficiency of capital
and liquidity, may constitute forward-looking statements. These
forward-looking statements are subject to risks and uncertainties that may
cause future results to differ materially from those expected. Such risks
include, without limitation, period to period fluctuations of revenue and
operating expenses, technological, competition, environmental hazards,
intellectual property issues, dependence on key personnel, financing and
acquisition capabilities and exposure to foreign currency movements. These
risks and uncertainties are discussed in greater detail in the Risk Factors
section of the Company's Management Discussion and Analysis for the year ended
March 31, 2008. Moreover, actual results may differ materially from expected
results if known or unknown risks affect the business or if information and
analysis in this news release turn out to be inaccurate. As a result, there
can be no guarantee that any forward-looking statement will materialize.
Management disclaims any intention, and assumes no obligation, to update
any forward-looking statement, even if new information becomes available, as a
result of future events or for any other reason. Readers are urged to consider
these and other such factors carefully, and not place undue emphasis on
ExelTech's forward-looking statements.
Further information can be found in the disclosure documents filed by
ExelTech with the securities regulatory authorities, available at
The TSX Venture Exchange Inc. has not reviewed and does not accept
responsibility for the adequacy of this release.
For further information:
For further information: Gérard Moretti, Chief Financial Officer, (514)
631-8999, ext 2406, firstname.lastname@example.org