CALGARY, Nov. 23 /CNW/ - Circa Enterprises Inc. (TSXV: CTO) ("Circa" or the "Corporation") announced today that Ivan W. Smith, Chairman of the Board of Directors and Interim President and Chief Executive Officer of the Corporation, has agreed to extend his employment and will continue in serving Circa in the role of President and Chief Executive Officer, on a permanent basis, effective immediately.
Since Mr. Smith assumed the role of Interim President and CEO of the Corporation in March 2009; he has lead restructuring efforts resulting in substantial improvements to the financial strength of the Corporation. The restructuring efforts in 2009 have focused on reducing the cost structure of the Corporation as well as consolidating of business activities and streamlining operations.
Through Mr. Smith's leadership, Circa has posted a significant improvement in financial results, despite a decrease in sales revenues due to an economic downturn. Excluding restructuring costs and foreign currency translation loss, Circa has posted two consecutive quarters of positive cash from operations, excluding working capital changes, and a significant improvement in the Adjusted EBITDA since taking over the leadership of the Corporation in March 2009. Adjusted EBITDA is a measure used by management to evaluate operating performance and is calculated as earnings before interest, taxes, depreciation and amortization and is adjusted for non-controllable or non-recurring items and is highlighted below.
Adjusted EBITDA for the last two reported quarters in 2009:
(in 000's) Q3 2009 Q2 2009
Net loss and comprehensive loss (85) (338)
Provision for taxes 306 82
Interest 24 28
Depreciation and amortization 117 103
Foreign currency translation loss (gain) 251 244
Restructuring costs 126 392
Adjusted EBITDA 739 511
The improved results and continued strength of the Corporation forecasts a positive outlook for the future success of Circa.
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 ticker symbol CTO. Neither 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.
SOURCE Circa Enterprises Inc.
For further information: For further information: Mr. Ivan Smith, President and CEO, Circa Enterprises Inc., (403) 258-2011; Mr. Cory Tamagi, VP Finance and CFO, Circa Enterprises Inc., (403) 258-2011, E-Mail: email@example.com, Website: www.circaent.com