ExelTech announces first quarter results



    MONTREAL, Aug. 25 /CNW Telbec/ - ExelTech Aerospace Inc. ("ExelTech" or
the "Company") (TSX Venture: XLT), a leading aircraft maintenance, repair and
overhaul provider with operations in Montreal and Quebec City, today announced
its financial results for the first fiscal quarter ended June 30, 2009. All
amounts are in Canadian dollars unless otherwise indicated.

    
    - The Company's revenues increased by 21% to $18.4 million in the quarter
      ended June 30, 2009, compared to $15.3 million during the quarter ended
      June 30, 2008. This increase is consistent with the increase the
      company has seen over the past three quarters;
    - The Company's gross margin increased to 18.2% in the quarter ended
      June 30, 2009, compared to 6.7% during the quarter ended June 30, 2008;
    - The Company's margin on Earnings before amortization, financial
      expenses and income taxes (EBITDA), a measure of operating performance
      used by management and certain users of our financial statements,
      improved to 2.6% in the quarter ended June 30, 2009, compared to a
      negative 10.2% in the quarter ended June 30, 2008. EBITDA has now been
      positive for the past three quarters;
    - The Company's net income was $249,000 in the quarter ended June 30,
      2009, compared to a net loss of $1,516,000 during the quarter ended
      June 30, 2008; this includes a gain on foreign currency exchange of
      $921,000 in the quarter ended June 30, 2009, compared to a gain of
      $131,000 in the quarter ended June 30, 2008;
    - The Company completed 51 major maintenance checks in the quarter ended
      June 30, 2009, compared to 46 in the quarter ended June 30, 2008.
    

    "These results, greatly improved compared to last year, are in line with
ExelTech's sales growth plan but slightly below our expectations from a
profitability perspective. We are moving forward in our turn around plan
initiated one year ago. Three consecutive quarters of positive EBITDA is a key
milestone in our plan," stated Sylvain Duval, President and CEO of ExelTech.
"Although these results show a large improvement in our operation and we are
proud of the work accomplished to date, we realize that we still have a way to
go to meet our profitability objectives. The strategies are very clear and the
execution is well engaged," added Mr. Duval.

    Non-GAAP Measure

    The reader should note that the Company reports its financial results in
accordance with GAAP. However, in this press release, the following non-GAAP
financial measure is used:

    
    - Earnings before amortization, financial (income) expenses and income
      taxes (recovery) ("EBITDA")
    

    Management believes that this non-GAAP measure provides useful
information to investors regarding the Company's financial condition and
results of operations as they provide additional measures of its performance.
The non-GAAP measure does not have any standardized meaning prescribed by GAAP
and are therefore unlikely to be comparable to similar measures presented by
other issuers. This measure should be considered as supplemental in nature and
not as a substitute for the related financial information prepared in
accordance with GAAP.

    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, EJet
170/190 family, and Bombardier CRJ regional jets; ATR-42 and 72, Bombardier
Dash-8 and Saab 340 regional turboprops; and Boeing 737 narrow bodies.
ExelTech is also a member of the SuperJet International Sukhoi MRO Service
Centers Network.
    In the summer of 2008, ExelTech opened a purpose-built 153,000 square
feet state-of-the-art maintenance facility at Montreal's Pierre Elliott
Trudeau International Airport. 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 in
Montreal and Quebec City, and with marketing offices in Canada and in the USA,
ExelTech Aerospace Inc. provides maintenance repair and overhaul services to
airlines in Canada, the USA and 25 other countries around the world.
    To learn more about ExelTech Aerospace Inc. (TSX-V: XLT), 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 Operations and
    Comprehensive (Loss) Income
    Three-month period ended June 30                    2009            2008
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Revenue                                     $ 18,439,007    $ 15,256,900
    Cost of sales                                 15,082,554      14,230,840
    -------------------------------------------------------------------------
                                                   3,356,453       1,026,060
    Operating expenses                             2,882,300       2,584,682
    -------------------------------------------------------------------------
    Earnings (Loss) before the following             475,153      (1,558,622)
    Amortization                                     528,604         335,247
    Financial expenses                              (427,893)        175,158
    -------------------------------------------------------------------------
    Earnings (Loss) before income taxes              373,442      (2,069,027)
    -------------------------------------------------------------------------
    Income taxes                                     124,699        (553,265)
    -------------------------------------------------------------------------
    Net earnings (loss) and comprehensive
     (loss) income                                   248,743      (1,515,762)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Net earnings (loss) per share basic and
     diluted                                            0.00           (0.01)


    Consolidated Balance Sheet                         As at           As at
                                                     June 30,       March 31,
                                                        2009            2009
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                           $               $
    ASSETS
    Current assets                                18,601,029      21,682,497
    Capital assets                                26,289,956      26,620,903
    Intangible assets                                101,086         139,836
    Future income taxes                            5,414,642       5,539,341
    -------------------------------------------------------------------------
                                                  50,406,713      53,982,577
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    LIABILITIES
    Current liabilities                           21,301,507      24,969,224
    Long-term debt and liability component of
     convertible debentures                       16,723,075      16,967,507
    Other                                            369,866         333,158
    SHAREHOLDERS' EQUITY                          12,012,265      11,712,688
    -------------------------------------------------------------------------
                                                  50,406,713      53,982,577
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    
    %SEDAR: 00020968EF




For further information:

For further information: Gérard Moretti, Chief Financial Officer, (514)
631-8999 ext. 2406, gmoretti@exeltech-aerospace.com

Organization Profile

EXELTECH AEROSPACE INC.

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