TORONTO, Oct. 11, 2023 (GLOBE NEWSWIRE) — Firan Technology Group Corporation (TSX: FTG) right this moment introduced monetary outcomes for the third quarter of 2023.

• Third quarter bookings of $35.7M have been up 28% over Q3 2022.
• FTG third quarter revenues of $36.6M have been up 59% over Q3 2022, as FTG ramps up manufacturing to satisfy buyer demand. Revenue included $9.2M from the newly acquired Circuits websites.
• FTG achieved Net Earnings in Q3 2023 of $1.3M, which was up $0.6M from Q2 2022.
• Net debt on the stability sheet as of Q3 2023 is $5.7M, which is 0.36x Adjusted EBITDA for the trailing 12 months.

Business Highlights

FTG continued to play offence by way of the primary three quarters of 2023. The firm has invested in expertise in current websites, grown the enterprise organically, and accomplished two acquisitions. Through all these actions, FTG is strategically deploying its capital in methods that may drive elevated shareholder returns for the longer term in each the close to time period and long run.

Specifically, FTG completed many objectives in Q3 2023 that proceed to enhance the Corporation and place it for the longer term, together with:

• Backlog on the finish of Q3 2023 is $98.0M in comparison with $65.5M on the finish of 2022. Backlog as of Q3 2023 consists of $18.2M on the newly acquired websites.
• FTG employs roughly 700 folks throughout its 9 working websites after including extra employees in Q3 2023, together with govt management on the Circuits Minnetonka web site. FTG staffing is basically in step with buyer demand as mirrored by the parity between bookings and shipments within the quarter.
• FTG obtained funding of $0.7 million within the quarter for a complete of $4.4M obtained to-date beneath the Canadian Aerospace Regional Recovery Initiative (ARRI) program.
• During Q3 2023, FTG purchased again 6,200 Common Shares.

Table 1 / Key Financial Metrics

^{(1)   Adjusted Net Earnings just isn’t a measure acknowledged beneath International Financial Reporting Standards (“IFRS”). Management believes that this measure is essential to lots of the Corporation’s shareholders, collectors and different stakeholders. The Corporation’s methodology of calculating Adjusted Net Earnings could differ from different firms and accordingly will not be corresponding to measures utilized by different firms.}

For FTG total gross sales elevated by $13.5M or 58.5% from $23.1M in Q3 2022 to $36.6M in Q3 2023. Increased income in Q3 2023 is the results of natural progress, acquisitions and beneficial international trade charges. The common international trade charge in Q3 2023 was 3% (4.2 cents) larger than in Q3 2022, with a optimistic impression on gross sales of $0.8M. On a year-to-date foundation, gross sales elevated by $29.3M or 44.5% from 2022.

The Circuits section gross sales in Q3 2023 have been up $12.7M, or 86.8% in comparison with final yr. The gross sales enhance included a $9.2M contribution from the newly acquired Circuits websites in Minnetonka and Haverhill. On a year-to-date foundation, the Circuits section gross sales have been up $19.8M or 44.7%.

For the Aerospace section, gross sales in Q3 2023 have been up $0.3M or 3.9% in comparison with final yr. On a year-to-date foundation, the Aerospace section gross sales have been up $8.4M or 32.9%, which included incremental Simulator income of $7.2M primarily delivered within the first half of 2023.

Gross margin in Q3 2023 was $8.8M or 24.0% as in comparison with $5.7M or 24.7% in Q3 2022. The lower within the gross margin charge is because of elevated gross sales volumes offset by decrease gross margins within the Circuits Minnetonka web site. Margins at that web site are anticipated to extend over time because it ramps up throughput, obtain materials price financial savings and alter pricing.

Net earnings after tax at FTG in Q3 2023 was $1.3 million or $0.05 per diluted share in comparison with a web revenue of $0.7M or $0.03 per diluted share in Q3 2022. Adjusted web earnings was $1.4M or $0.06 per diluted share in Q3 2023 as in comparison with an adjusted web earnings of $0.8M or $0.03 per diluted share within the prior yr quarter. The $0.6M enhance in adjusted web earnings is the results of larger gross sales quantity, operational enhancements and a extra beneficial international trade charge. On a year-to-date foundation, adjusted web earnings was $4.7M or $0.19 per diluted share in comparison with a web lack of ($0.3M) or ($0.01) per diluted share within the prior yr interval.

The Circuits section earnings earlier than curiosity and revenue taxes was $2.2M in Q3 2023 as in comparison with $0.8M in Q3 2022. Higher gross sales and improved pricing drove the rise in earnings. The Minnetonka and Haverhill acquisitions didn’t materially impression earnings earlier than curiosity and revenue taxes for this section.

The Aerospace section earnings earlier than curiosity and revenue taxes was $1.6M in Q3 2023 versus $1.4M in Q3 2022. The enhance in earnings was pushed by larger gross sales and improved pricing on a variety of merchandise.

Table 2 / EBITDA

^{(2)   EBITDA and Adjusted EBITDA aren’t measures acknowledged beneath International Financial Reporting Standards (“IFRS”). Management believes that these measures are essential to lots of the Corporation’s shareholders, collectors and different stakeholders. The Corporation’s methodology of calculating EBITDA and Adjusted EBITDA could differ from different firms and accordingly will not be corresponding to measures utilized by different firms.}

The trailing twelve-month earnings earlier than curiosity, tax, depreciation and amortization (EBITDA) was $18.9M or $15.9M for adjusted EBITDA as in comparison with roughly $9M for the total yr 2022.

EBITDA for FTG in Q3 2023 was $4.9M or 13.4% of gross sales in comparison with $2.8M or 11.9% of gross sales in Q3 2022. On a year-to-date foundation, EBITDA in 2023 was $16.5M or 17.3% in comparison with $6.2M or 9.4% in 2022.

Adjusted EBITDA for Q3 2023, which excludes authorities help, and bills associated to the acquisitions, was $5.0M or 13.6% of web gross sales, as in comparison with $2.8M or 12.1% of web gross sales in Q3 2022. The enhance in profitability is pushed by elevated working leverage from larger gross sales, operational enhancements and a beneficial international trade impression. For the trailing twelve months interval ended September 1, 2023, adjusted EBITDA was $15.9M or 15.1% of gross sales.

As at September 1, 2023, the Corporation’s web working capital was $35.2M, in comparison with $30.5M at year-end in 2022.

Net debt on the finish of Q3 2023 was ($5.7M) in comparison with web money of $12.3M on the finish of 2022, after the mixed impression of a web money outlay of $26.3M for acquisitions, web proceeds of $8.5M from the Aerospace Chatsworth facility sale leaseback transaction, and receiving $3.8M from the U.S. Employment Retention Credit program (“ERC”). In addition, FTG has entry to dedicated credit score traces of roughly $22.3M.

The Corporation will host a stay convention name on Thursday, October 12, 2023, at 8:30am (Eastern) to debate the outcomes of Q3 2023.

Anyone wishing to take part within the name ought to dial 416-764-8658 or 1-888-886-7786 and determine that you’re calling to take part within the FTG convention name. The Chairperson is Mr. Brad Bourne. A replay of the decision will probably be accessible till November 12 , 2023 and will probably be accessible on the FTG web site at www.ftgcorp.com. The quantity to name for a rebroadcast is 416-764-8692 or 1-877-674-7070, Playback Passcode 572945 #.

ABOUT FIRAN TECHNOLOGY GROUP CORPORATION

FTG is an aerospace and defence electronics product and subsystem provider to clients across the globe. FTG has two working items:

FTG Circuits is a producer of excessive expertise, excessive reliability printed circuit boards. Our clients are leaders within the aviation, defence, and excessive expertise industries. FTG Circuits has operations in Toronto, Ontario, Chatsworth, California, Fredericksburg, Virginia, Minnetonka, Minnesota, Haverhill Massachusetts and a three way partnership in Tianjin, China.

FTG Aerospace manufactures and repairs illuminated cockpit panels, keyboards and sub-assemblies for authentic gear producers of aerospace and defence gear. FTG Aerospace has operations in Toronto, Ontario, Chatsworth, California, and Tianjin, China.

The Corporation’s shares are traded on the Toronto Stock Exchange beneath the image FTG.

FORWARD-LOOKING STATEMENTS

This information launch comprises sure forward-looking statements. These forward-looking statements are associated to, however not restricted to, FTG’s operations, anticipated monetary efficiency, enterprise prospects and methods. Forward-looking data sometimes comprises phrases similar to “anticipate”, “believe”, “expect”, “plan” or related phrases suggesting future outcomes. Such statements are based mostly on the present expectations of administration of the Corporation and inherently contain quite a few dangers and uncertainties, recognized and unknown, together with financial components and the Corporation’s trade, usually. The previous checklist just isn’t exhaustive of all doable components. Such forward-looking statements aren’t ensures of future efficiency and precise occasions and outcomes might differ materially from these expressed or implied by forward-looking statements made by the Corporation. The reader is cautioned to contemplate these and different components rigorously when making choices with respect to the Corporation and never place undue reliance on forward-looking statements. Other than as could also be required by regulation, FTG disclaims any intention or obligation to replace or revise any such forward-looking statements, whether or not because of new data, future occasions or in any other case.

For additional data please contact:

Bradley C. Bourne, President and CEO
Firan Technology Group Corporation
Tel: (416) 299-4000 x314
bradbourne@ftgcorp.com

Jamie Crichton, Vice President and CFO
Firan Technology Group Corporation
Tel: (416) 299-4000 x264
jamiecrichton@ftgcorp.com

Additional data will be discovered on the Corporation’s web site www.ftgcorp.com