ExelTech Announces Positive Second Quarter Results



    Revenues Increase 17% and Net Income Doubles over Previous Year

    MONTREAL, Nov. 14 /CNW Telbec/ - ExelTech Aerospace Inc. ("ExelTech" or
the "Company") (TSX Venture: XLT), a leading aircraft maintenance, repair and
overhaul ("MRO") provider with operations in Montreal and Quebec City, today
announced its financial results for the second fiscal quarter, which ended
September 30, 2007. All amounts are in Canadian dollars unless otherwise
indicated.
    Revenues for the quarter ended September 30, 2007 totalled $12.2 million
compared to $10.4 million for the quarter ended September 30, 2006, an
increase of 17%. This increase was driven by continued growth in the Company's
Bombardier CRJ regional jet maintenance and increased demand from ATR and Dash
8 regional turboprop operators.
    The Company's EBITDA margin dropped to 7% in the current quarter,
compared to 10% in the same period a year earlier, primarily reflecting the
impact of the increase in value of the Canadian dollar. The impact of the
higher Canadian dollar was partially offset by gains on foreign exchange,
resulting from the Company's US dollar hedging program.
    Net Income almost doubles to $357,000, compared to $183,000 in the second
quarter of the prior year.
    "We are pleased to be announcing strong results in a traditionally weak
quarter," stated Derek Nice, ExelTech's President & CEO. "We have shown growth
across all sectors, spearheaded by an increase of over 70% in our regional jet
heavy maintenance business, and over 50% in line maintenance, compared to the
previous year."
    During the second quarter, work began on the construction of ExelTech's
new $21 million heavy maintenance hangar complex at Montreal's Pierre Elliott
Trudeau International Airport. When construction is completed in Spring 2008,
this 130,000 sq ft facility will offer greater capacity and increased
efficiencies, contributing to the company's ongoing productivity enhancement
initiatives.

    About ExelTech Aerospace

    One of the ten largest commercial airframe MRO vendors in North America,
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 Latin
American Civil Aviation Commission (LCAC) approvals to repair a wide range of
aircraft, structures, components and electrical and electronic systems.
Aircraft models serviced by ExelTech Aerospace include Bombardier CRJ and
Embraer ERJ; ATR-42 and 72; Bombardier Dash-8 and Saab 340 regional
turboprops; and Boeing 737 narrow-body airliners.
    With 230,000 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 Aerospace provides maintenance repair and overhaul
services to airlines in Canada, the US and 22 other countries around the
world.
    To find out more about ExelTech Aerospace Inc. (TSX Venture: XLT), 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 earnings
     and comprehensive income

                       For the three-month periods  For the six-month periods
                            ended September 30           ended September 30

                                 2007         2006         2007         2006
                                    $            $            $            $
    Revenue                12,217,236   10,411,127   25,920,184   21,474,457
    Cost of sales           9,508,667    7,386,837   20,260,749   15,195,102
    -------------------------------------------------------------------------
                            2,708,569    3,024,290    5,659,435    6,279,355
    Operating expenses      1,889,732    2,031,816    4,184,664    4,118,831
    -------------------------------------------------------------------------
    Earnings before
     the following            818,837      992,474    1,474,771    2,160,524
    Amortization              302,035      307,420      606,033      612,026
    Financial (income)
     expenses                 (45,006)     357,818      236,506      669,362
    -------------------------------------------------------------------------
    Earnings before
     income taxes             561,808      327,236      632,232      879,136
    -------------------------------------------------------------------------
    Income taxes              205,109      144,195      256,742      523,913
    -------------------------------------------------------------------------
    Net earnings and
     comprehensive income     356,699      183,041      375,490      355,223
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Net earnings per share -
     basic and diluted           0.00         0.00         0.00         0.00



    Consolidated balance sheets                           As at        As at
                                                   September 30     March 31
                                                           2007         2007
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                              $            $
    ASSETS
    Current assets                                   31,121,837   18,436,119
    Capital assets                                    8,254,555    6,280,457
    Intangible assets                                   372,336      449,836
    Future income taxes                               3,632,262    3,778,298
    Goodwill                                         13,241,506   13,241,506
    -------------------------------------------------------------------------
    TOTAL ASSETS                                     56,622,496   42,186,216
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    LIABILITIES
    Current liabilities                              13,723,433   12,872,881
    Long-term debt including liability
     portion of debentures                            7,811,759    8,876,019
    Other                                               588,574      444,944
    SHAREHOLDERS' EQUITY                             34,498,730   19,992,372
    -------------------------------------------------------------------------
    TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY       56,622,496   42,186,216
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    
    %SEDAR: 00020968EF




For further information:

For further information: Elisabeth Preston, Vice President, Corporate
Affairs, (613) 614-4884, epreston@exeltech-aerospace.com; Derek Nice,
President and Chief Executive Officer, (514) 631-3884,
dnice@exeltech-aerospace.com

Organization Profile

EXELTECH AEROSPACE INC.

More on this organization


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