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Circa Reports Operating Results for the Quarter Ended September 30, 2010

^{Published on 2010-11-03 10:35:40 - Market Wire}
 

 THIRD QUARTER RESULTS --------------------- Summary of third quarter operating results: - Consolidated sales of $6.9 million were 1% less than the third quarter 2009 sales of $7.0 million - Net income of $0.4 million or $0.05 per share, as compared to a net loss of $85,000 or $0.01 per share in the third quarter of 2009 - Cash flow from operations increased $0.3 million to $0.7 million compared to the third quarter of 2009 - Adjusted EBITDA of $0.8 million for the quarter compared to $0.7 million in the third quarter of 2009 (see below for calculation of Adjusted EBITDA) Summary of year-to-date operating results: - Consolidated sales of $19 million for the nine-month period ended September 30, 2010, which were 5% lower than the nine-month period ended September 30, 2009, sales of $19.9 million - Net income of $1 million or $0.11 per share as compared to a net loss of $1.1 million or $0.11 per share for the first nine months of 2009 - Debt reduction of over $1.2 million during the nine-month period ended September 30, 2010 - Adjusted EBITDA of $1.8 million for the nine-month period ended September 30, 2010 compared to $0.5 million for the nine-month period ended September 30, 2009 (see below for calculation of Adjusted EBITDA) 

 ------------------------------------------------------------------------- (unaudited) (unaudited) (unaudited) (unaudited) Three Three Nine Nine months months months months ended ended ended ended Sep 30, Sep 30, Sep 30, Sep 30, 2010 2009 2010 2009 $ $ $ $ ------------------------------------------------------------------------- Net earnings (loss) and comprehensive earnings (loss) 447 (85) 1,021 (1,070) Provision for (recovery of) income taxes 209 306 426 155 Interest 24 24 69 82 Depreciation and amortization 100 117 299 326 Foreign currency translation loss (gain) 29 251 (20) 454 Restructuring costs - 126 - 576 ------------------------------------------------------------------------- 809 739 1,795 523 ------------------------------------------------------------------------- 

 CIRCA ENTERPRISES INC. Consolidated Balance Sheets (000's of Canadian dollars) Unaudited ------------------------------------------------------------------------- As at September 30, December 31, 2010 2009 $ $ ------------------------------------------------------------------------- ASSETS Current Cash 266 350 Accounts receivable 4,629 3,588 Income taxes recoverable - 58 Inventory 6,213 5,842 Prepaid expenses 257 295 ------------------------------------------------------------------------- 11,365 10,133 Property, plant and equipment 959 1,086 Assets held for sale 105 105 Deferred charges 203 286 Intangible assets 19 17 Future income taxes 441 782 ------------------------------------------------------------------------- 13,092 12,409 ------------------------------------------------------------------------- ------------------------------------------------------------------------- LIABILITIES Current Bank indebtedness 2,187 3,391 Accounts payable and accrued liabilities 3,257 2,476 Current income taxes 90 - ------------------------------------------------------------------------- 5,534 5,867 Future income taxes 8 38 ------------------------------------------------------------------------- 5,542 5,905 ------------------------------------------------------------------------- SHAREHOLDERS' EQUITY Share capital 2,735 2,710 Contributed surplus 2 2 Retained earnings 4,813 3,792 ------------------------------------------------------------------------- 7,550 6,504 ------------------------------------------------------------------------- 13,092 12,409 ------------------------------------------------------------------------- ------------------------------------------------------------------------- CIRCA ENTERPRISES INC. Consolidated Statements Operations and Retained Earnings (000's of Canadian dollars, except per share amounts) Unaudited ------------------------------------------------------------------------- Three Three Nine Nine months months months months ended ended ended ended Sep 30, Sep 30, Sep 30, Sep 30, 2010 2009 2010 2009 $ $ $ $ ------------------------------------------------------------------------- SALES 6,900 6,978 18,988 19,882 COST OF SALES Direct costs 5,148 5,181 14,358 15,577 Depreciation and amortization 40 43 115 133 ------------------------------------------------------------------------- 1,712 1,754 4,515 4,172 ------------------------------------------------------------------------- EXPENSES Selling, general and administrative 943 1,049 2,825 3,772 Depreciation and amortization 60 74 184 193 Restructuring costs - 126 - 576 Interest 24 24 69 82 Loss on disposal of assets - 9 10 10 Foreign currency translation (gain) loss 29 251 (20) 454 ------------------------------------------------------------------------- 1,056 1,533 3,068 5,087 ------------------------------------------------------------------------- EARNINGS (LOSS) BEFORE INCOME TAXES 656 221 1,447 (915) ------------------------------------------------------------------------- PROVISION FOR (RECOVERY OF) INCOME TAXES Current 38 203 115 11 Future 171 103 311 144 ------------------------------------------------------------------------- 209 306 426 155 ------------------------------------------------------------------------- NET EARNINGS (LOSS) AND COMPREHENSIVE EARNINGS (LOSS) 447 (85) 1,021 (1,070) RETAINED EARNINGS, BEGINNING OF PERIOD 4,366 4,038 3,792 5,023 ------------------------------------------------------------------------- RETAINED EARNINGS, END OF PERIOD 4,813 3,953 4,813 3,953 ------------------------------------------------------------------------- ------------------------------------------------------------------------- EARNINGS (LOSS) PER SHARE Basic and diluted 0.05 (0.01) 0.11 (0.11) ------------------------------------------------------------------------- ------------------------------------------------------------------------- CIRCA ENTERPRISES INC. Consolidated Statements of Cash Flows (000's of Canadian dollars) Unaudited ------------------------------------------------------------------------- Three Three Nine Nine months months months months ended ended ended ended Sep 30, Sep 30, Sep 30, Sep 30, 2010 2009 2010 2009 $ $ $ $ ------------------------------------------------------------------------- CASH FLOWS RELATED TO THE FOLLOWING ACTIVITIES: OPERATING Net earnings (loss) 447 (85) 1,021 (1,070) Adjustments for: Depreciation and amortization 100 117 299 326 Loss on disposal of assets - 9 10 10 Stock compensation expense 25 6 25 11 Future income taxes 171 103 311 144 ------------------------------------------------------------------------- 743 150 1,666 (579) Changes in non-cash working capital (7) 226 (451) 616 ------------------------------------------------------------------------- 736 376 1,215 37 ------------------------------------------------------------------------- FINANCING Decrease in bank indebtedness (562) (898) (1,204) (107) ------------------------------------------------------------------------- INVESTING Purchase of property, plant and equipment (48) - (98) (32) Proceeds from sale of property, plant and equipment - - - 6 Additions to deferred charges - 1 - (40) Additions to intangible assets - (2) (3) (8) Changes in non-cash working capital (13) - 6 (24) ------------------------------------------------------------------------- (61) (1) (95) (98) ------------------------------------------------------------------------- NET INCREASE (DECREASE) IN CASH 113 (523) (84) (168) CASH, BEGINNING OF PERIOD 153 610 350 255 ------------------------------------------------------------------------- CASH, END OF PERIOD 266 87 266 87 ------------------------------------------------------------------------- -------------------------------------------------------------------------