Circa Reports Sales and Operating Results for the Third Quarter Ended
September 30, 2009

CALGARY , Nov. 4 /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 third quarter and nine-month period ended September 30, 2009 .

    
    Summary of third quarter operating results:

    -   Consolidated sales of $7.0 million, representing a 20% decrease from
        the third quarter 2008 sales of $8.7 million
    -   Adjusted EBITDA of $0.7 million for the quarter compared to
        $(0.1 million) in the third quarter of 2008 (see below for
        calculation of Adjusted EBITDA)
    -   Net loss of $0.1 million or $0.01 per share, as compared to a net
        loss of $0.2 million or $0.02 per share in the third quarter of 2008

    Summary of year-to-date operating results:

    -   Consolidated sales of $19.9 million for the nine-month period ended
        September 30, 2009, representing a 24% decrease from the nine-month
        period ended September 30, 2008, sales of $26.2 million
    -   Adjusted EBITDA of $0.5 million for the nine-month period ended
        September 20, 2009 compared to $0.1 million for the nine-month period
        ended September 30, 2008 (see below for calculation of Adjusted
        EBITDA)
    -   Net loss of $1.1 million or $0.11 per share as compared to a loss of
        $0.3 million or $0.03 per share for the first nine months of 2008

    Adjusted EBITDA is a measure management uses to calculate performance and
is calculated as follows:

    -------------------------------------------------------------------------
                           (unaudited)  (unaudited)  (unaudited)  (unaudited)
                                Three        Three         Nine         Nine
                               months       months       months       months
                                ended        ended        ended        ended
                            September    September    September    September
                             30, 2009     30, 2008     30, 2009     30, 2008
                                    $            $            $            $
    -------------------------------------------------------------------------

    Net loss and
     comprehensive loss           (85)        (186)      (1,070)        (268)
    Provision for
     (recovery of)
     income taxes                 306         (104)         155         (213)
    Interest                       24           46           82          125
    Depreciation and
     amortization                 126          211          335          647
    Foreign currency
     translation loss
     (gain)                       251          (19)         454         (160)
    Restructuring costs           126            -          576            -
    -------------------------------------------------------------------------
                                  748          (52)         532          131
    -------------------------------------------------------------------------
    

Consolidated sales for the third quarter of 2009 were $7.0 million ; a $1.7 million or 20% decrease over the same period in 2008. This decrease is attributed to lower sales primarily across the surge protection and Hydel division businesses, reflecting continued weaker demand, driven by the slower North American economy.

Circa's gross profit, defined as sales less cost of sales, for Q3 2009 was $1.8 million versus $1.4 million in the corresponding quarter in 2008, as the impact of lower sales was more than offset by higher unit selling prices in the Circa Metals division and lower labour and overhead costs. The reduction in labour, material and overhead costs is a result of aggressive restructuring combined with outsourcing the production of low margin products to offshore suppliers.

Circa's Interim President and Chief Executive Officer, Ivan Smith stated:

"Consolidated results for the quarter ended September 30, 2009 reflect improvements brought about through our restructuring efforts to date. In addition, the combining of the Circa Metals' operations in Ontario and the consolidating of the distribution activities in the surge protection business will improve the cost structure of the Company and have a positive impact on earnings over the long term. Excluding the restructuring costs and a foreign currency translation loss, the Company posted pre-tax income of $0.6 million in the quarter. Cash flow generated from operations plus a favourable change in working capital has yielded cash from operations of $0.4 million for the quarter."

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

    -------------------------------------------------------------------------
                                                     (unaudited)    (audited)
                                                   September 30, December 31,
                                                           2009         2008
                                                              $            $
    -------------------------------------------------------------------------
    ASSETS
    Current
      Cash                                                   87          255
      Accounts receivable                                 4,277        3,874
      Income taxes recoverable                               19          176
      Inventory                                           5,402        7,413
      Prepaid expenses                                      700          280
    -------------------------------------------------------------------------
                                                         10,485       11,998
    Property, plant and equipment                         1,197        1,545
    Assets held for sale                                    105            -
    Deferred charges                                        308          334
    Intangible assets                                        12            5
    Future income taxes                                   1,159        1,402
    -------------------------------------------------------------------------
                                                         13,266       15,284
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    LIABILITIES
    Current
      Bank indebtedness                                   3,558        3,665
      Accounts payable and accrued liabilities            2,992        3,745
    -------------------------------------------------------------------------
                                                          6,550        7,410
    Future income taxes                                      51          150
    -------------------------------------------------------------------------
                                                          6,601        7,560
    -------------------------------------------------------------------------

    SHAREHOLDERS' EQUITY
      Share capital                                       2,710        2,699
      Contributed surplus                                     2            2
      Retained earnings                                   3,953        5,023
    -------------------------------------------------------------------------
                                                          6,665        7,724
    -------------------------------------------------------------------------
                                                         13,266       15,284
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


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

    -------------------------------------------------------------------------
                           (unaudited)  (unaudited)  (unaudited)  (unaudited)
                                Three        Three         Nine         Nine
                               months       months       months       months
                                ended        ended        ended        ended
                            September    September    September    September
                             30, 2009     30, 2008     30, 2009     30, 2008
                                    $            $            $            $
    -------------------------------------------------------------------------

    SALES                       6,978        8,744       19,882       26,224
    COST OF SALES               5,224        7,392       15,710       21,829
    -------------------------------------------------------------------------
                                1,754        1,352        4,172        4,395
    -------------------------------------------------------------------------

    EXPENSES
      Selling, general and
       administrative expenses  1,132        1,615        3,975        4,911
      Restructuring costs         126            -          576            -
      Interest                     24           46           82          125
      Foreign currency
       translation loss (gain)    251          (19)         454         (160)
    -------------------------------------------------------------------------
                                1,533        1,642        5,087        4,876
    -------------------------------------------------------------------------

    INCOME (LOSS) BEFORE
     INCOME TAXES                 221         (290)       (915)         (481)
    -------------------------------------------------------------------------

    PROVISION FOR (RECOVERY OF)
     INCOME TAXES
      Current                     203           34           11          177
      Future                      103         (138)         144         (390)
    -------------------------------------------------------------------------
                                  306         (104)         155         (213)
    -------------------------------------------------------------------------

    NET LOSS AND COMPREHENSIVE
     LOSS                         (85)        (186)      (1,070)        (268)
    RETAINED EARNINGS,
     BEGINNING OF PERIOD        4,038        6,857        5,023        6,939
    -------------------------------------------------------------------------
    RETAINED EARNINGS, END
     OF PERIOD                  3,953        6,671        3,953        6,671
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    LOSS PER SHARE

    Basic and diluted           (0.01)       (0.02)       (0.11)       (0.03)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

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.

%SEDAR: 00002951E

For further information: Mr. Ivan Smith, Interim President and CEO, Circa Enterprises Inc., [phone]; Mr. Cory Tamagi, VP Finance and CFO, Circa Enterprises Inc., [phone], E-Mail: [email protected], Website: www.circaent.com