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Circa Reports a Strong Improvement in Profitability in the Second Quarter Ended June 30, 2010 and Common Shares Issued Under Sh

^{Published on 2010-08-11 16:55:37 - Market Wire}
 

 SECOND QUARTER RESULTS ---------------------- Summary of second quarter operating results: - Consolidated sales of $6.8 million were 1% less than the second quarter 2009 sales of $6.9 million - Adjusted EBITDA of $0.8 million for the quarter compared to $0.5 million in the second quarter of 2009 (see below for calculation of Adjusted EBITDA) - Net income of $0.5 million or $0.05 per share, as compared to a net loss of $0.3 million or $0.04 per share in the second quarter of 2009 - Operating cash flow increased $0.5 million to $0.2 million compared to the second quarter of 2009 Summary of year-to-date operating results: - Consolidated sales of $12.1 million for the six-month period ended June 30, 2010, which were 6% lower than the six-month period ended June 30, 2009, sales of $12.9 million - Adjusted EBITDA of $1.0 million for the six-month period ended June 30, 2010 compared to negative $0.2 million for the six-month period ended June 30, 2009 (see below for calculation of Adjusted EBITDA) - Net income of $0.6 million or $0.06 per share as compared to a net loss of $1.0 million or $0.10 per share for the first six months of 2009 - Debt reduction of over $0.6 million during the six month period ended June 30, 2010 

 ------------------------------------------------------------------------- (unaudited) (unaudited) (unaudited) (unaudited) Three Three Six Six months months months months ended ended ended ended June 30, June 30, June 30, June 30, 2010 2009 2010 2009 $ $ $ $ ------------------------------------------------------------------------- Net earnings (loss) and comprehensive earnings (loss) 502 (338) 574 (985) Provision for (recovery of) income taxes 151 82 217 (151) Interest 27 28 45 58 Depreciation and amortization 104 103 199 209 Foreign currency translation loss (gain) (14) 244 (49) 203 Restructuring costs - 392 - 450 ------------------------------------------------------------------------- 770 511 986 (216) ------------------------------------------------------------------------- 

 CIRCA ENTERPRISES INC. Consolidated Balance Sheets (000's of Canadian dollars) Unaudited ------------------------------------------------------------------------- As at June 30, December 31, 2010 2009 $ $ ------------------------------------------------------------------------- ASSETS Current Cash 153 350 Accounts receivable 4,017 3,588 Income taxes recoverable - 58 Inventory 5,605 5,842 Prepaid expenses 263 295 ------------------------------------------------------------------------- 10,038 10,133 Property, plant and equipment 990 1,086 Assets held for sale 105 105 Deferred charges 224 286 Intangible assets 19 17 Future income taxes 616 782 ------------------------------------------------------------------------- 11,992 12,409 ------------------------------------------------------------------------- ------------------------------------------------------------------------- LIABILITIES Current Bank indebtedness 2,749 3,391 Accounts payable and accrued liabilities 2,093 2,476 Current income taxes 60 - ------------------------------------------------------------------------- 4,902 5,867 Future income taxes 12 38 ------------------------------------------------------------------------- 4,914 5,905 ------------------------------------------------------------------------- SHAREHOLDERS' EQUITY Share capital 2,710 2,710 Contributed surplus 2 2 Retained earnings 4,366 3,792 ------------------------------------------------------------------------- 7,078 6,504 ------------------------------------------------------------------------- 11,992 12,409 ------------------------------------------------------------------------- ------------------------------------------------------------------------- CIRCA ENTERPRISES INC. Consolidated Statements Operations and Retained Earnings (000's of Canadian dollars, except per share amounts) Unaudited ------------------------------------------------------------------------- Three Three Six Six months months months months ended ended ended ended June 30, June 30, June 30, June 30, 2010 2009 2010 2009 $ $ $ $ ------------------------------------------------------------------------- SALES 6,817 6,885 12,088 12,904 COST OF SALES Direct costs 5,128 5,160 9,210 10,396 Depreciation and amortization 37 45 75 90 ------------------------------------------------------------------------- 1,652 1,680 2,803 2,418 ------------------------------------------------------------------------- EXPENSES Selling, general and administrative 909 1,211 1,882 2,723 Depreciation and amortization 67 58 124 119 Restructuring costs - 392 - 450 Interest 27 28 45 58 Loss on disposal of assets 10 3 10 1 Foreign currency translation (gain) loss (14) 244 (49) 203 ------------------------------------------------------------------------- 999 1,936 2,012 3,554 ------------------------------------------------------------------------- EARNINGS (LOSS) BEFORE INCOME TAXES 653 (256) 791 (1,136) ------------------------------------------------------------------------- PROVISION FOR (RECOVERY OF) INCOME TAXES Current 30 (232) 77 (192) Future 121 314 140 41 ------------------------------------------------------------------------- 151 82 217 (151) ------------------------------------------------------------------------- NET EARNINGS (LOSS) AND COMPREHENSIVE EARNINGS (LOSS) 502 (338) 574 (985) RETAINED EARNINGS, BEGINNING OF PERIOD 3,864 4,376 3,792 5,023 ------------------------------------------------------------------------- RETAINED EARNINGS, END OF PERIOD 4,366 4,038 4,366 4,038 ------------------------------------------------------------------------- ------------------------------------------------------------------------- EARNINGS (LOSS) PER SHARE Basic and diluted 0.05 (0.04) 0.06 (0.10) ------------------------------------------------------------------------- ------------------------------------------------------------------------- CIRCA ENTERPRISES INC. Consolidated Statements of Cash Flows (000's of Canadian dollars) Unaudited ------------------------------------------------------------------------- Three Three Six Six months months months months ended ended ended ended June 30, June 30, June 30, June 30, 2010 2009 2010 2009 $ $ $ $ ------------------------------------------------------------------------- CASH FLOWS RELATED TO THE FOLLOWING ACTIVITIES: OPERATING Net earnings (loss) 502 (338) 574 (985) Adjustments for: Depreciation and amortization 104 103 199 209 Loss on disposal of assets 10 3 10 1 Stock compensation expense - 5 - 5 Future income taxes 121 314 140 41 ------------------------------------------------------------------------- 737 87 923 (729) Changes in non-cash working capital (491) (330) (444) 390 ------------------------------------------------------------------------- 246 (243) 479 (339) ------------------------------------------------------------------------- FINANCING (Decrease) increase in bank indebtedness (374) 676 (642) 791 ------------------------------------------------------------------------- INVESTING Purchase of property, plant and equipment (36) (7) (50) (32) Proceeds from sale of property, plant and equipment - - - 6 Additions to deferred charges - (9) - (41) Additions to intangible assets - (1) (3) (6) Changes in non-cash working capital 5 (2) 19 (24) ------------------------------------------------------------------------- (31) (19) (34) (97) ------------------------------------------------------------------------- NET (DECREASE) INCREASE IN CASH (159) 414 (197) 355 CASH, BEGINNING OF PERIOD 312 196 350 255 ------------------------------------------------------------------------- CASH, END OF PERIOD 153 610 153 610 ------------------------------------------------------------------------- ------------------------------------------------------------------------- COMMON SHARES ISSUED UNDER ACQUISITION PLAN -------------------------------------------