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Firan Technology Group Corporation (FTG.TO)

Toronto - Toronto Real Time Price. Currency in CAD
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1.6000+0.0100 (+0.63%)
At close: 3:49PM EDT
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Previous Close1.5900
Open1.5900
Bid1.5900 x 0
Ask1.6400 x 0
Day's Range1.5900 - 1.6000
52 Week Range1.4500 - 4.3700
Volume4,000
Avg. Volume22,600
Market Cap36.346M
Beta (5Y Monthly)1.26
PE Ratio (TTM)55.17
EPS (TTM)0.0290
Earnings DateOct. 08, 2020
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateN/A
1y Target Est3.75
  • ACCESSWIRE

    Firan Technology Group Corp. to Host Earnings Call

    NEW YORK, NY / ACCESSWIRE / October 8, 2020/ Firan Technology Group Corp.

  • GlobeNewswire

    Firan Technology Group Corporation (“FTG”) Announces Third Quarter 2020 Financial Results

    TORONTO, Oct. 07, 2020 (GLOBE NEWSWIRE) -- Firan Technology Group Corporation (TSX: FTG) today announced financial results for the third quarter 2020. * Ended Q3 2020 with over $47M in total backlog, of which $26M is due in Q4 2020 * Generated $3.2M in cash in Q3 and ended the quarter with $8.8M in net cash on the balance sheet * Achieved a gross margin percentage of 27.6% * Received $0.8M in Canadian Emergency Wage Subsidy in the quarter * Entered into a new 2 year, $20M USD committed credit facility on terms similar to the previous agreement with our current lender Third Quarter Results: (three months ended August 28, 2020 compared with three months ended August 30, 2019) Q3 2020  Q3 2019   Sales$24,364,000 $27,953,000      Gross Margin 6,722,000  7,923,000  Gross Margin (%) 27.6%  28.3%      Operating Earnings (1): 3,600,000  4,367,000      • R&D Investment 1,302,000  1,223,000  • R&D Tax Credits (195,000)  (214,000)  • Foreign Exchange Loss 1,011,000  236,000  • Amortization of Intangibles 94,000  284,000      Net Earnings before Tax 1,388,000  2,838,000      • Income Tax 773,000  1,087,000  • Non-controlling Interests (30,000)  (32,000)      Net Earnings After Tax$645,000 $1,783,000      Earnings per share   \- basic$0.03 $0.08  \- diluted$0.03 $0.07      Year-to-Date: (nine months ended August 28, 2020 compared with nine months ended August 30, 2019) YTD 2020  YTD 2019   Sales$75,724,000 $85,578,000      Gross Margin 19,356,000  24,394,000  Gross Margin (%) 25.6%  28.5%      Operating Earnings (1): 8,155,000  13,073,000      • R&D Investment 3,966,000  3,507,000  • R&D Tax Credits (570,000)  (409,000)  • Foreign Exchange Loss 596,000)  532,000  • Amortization of Intangibles 490,000  827,000  • Impairment of Intangibles 1,145,000  -      Net Earnings before Tax 2,528,000  8,616,000      • Income Tax 2,544,000  3,242,000  • Non-controlling Interests (98,000)  (109,000)      Net Earnings After Tax$82,000 $5,483,000      Earnings per share   \- basic$0.00 $0.24  \- diluted$0.00 $0.22      (1) Operating Earnings is not a measure recognized under International Financial Reporting Standards (“IFRS”). Management believes that this measure is important to many of the Corporation’s shareholders, creditors and other stakeholders. The Corporation’s method of calculating Operating Earnings may differ from other corporations and accordingly may not be comparable to measures used by other corporations. Business HighlightsFTG accomplished many goals in Q3 2020 that continue to improve the Corporation and position it for the future, including: * Received further Canadian government support to offset the impact of COVID-19, in the form of $0.8M grant * Reduced overtime across FTG to reduce wage costs, particularly in sites focused on the commercial aerospace markets * Reduced headcount by 3-4% primarily through attrition * Achieved a 0.87:1 book-to-bill ratio with increased backlog in the US sites focused more on defense work and decreased backlog in Canadian and Chinese sites focused more on commercial aerospace programs * Backlog negatively impacted by strengthening Canadian dollar that reduced backlog by approximately $3M compared to prior quarter * FTG Aerospace Toronto was approved by Transport Canada as an approved maintenance organization (AMO) opening up future aftermarket opportunitiesFor FTG, overall sales decreased by $3.6M or 13% from $28.0M in Q3 2019 to $24.4M in Q3 2020.  The Canadian dollar was $0.02 weaker in Q3 this year versus Q3 last year. The COVID-19 pandemic has negatively impacted commercial aerospace activity this year and this impacted FTG’s sites predominantly focused on this market which include Circuits Toronto and the facilities in China. On a year-to-date basis, sales were $75.7M compared to $85.6M for the same period last year. The drop is due to the COVID-19 pandemic in combination with timing on simulator related orders.The Circuits Segment sales were down $2.6M, or 14% in Q3 2020 versus Q3 2019. Included in Q3 2020 were sales of $1.6M from Circuits Fredericksburg compared to $1.2M in Q3 last year when that site was acquired. Circuits Fredericksburg was slightly impacted by a fire in that facility at the start of the quarter. The facility is fully operational and remediation is complete. The Toronto and the Joint Venture in China sites were all down in the quarter due to reduced demand. Year-to-date sales in the Circuits Segment were $51.7M vs $52.8M in 2019. Circuits Fredericksburg contributed $6.3M in 2020 compared to $1.2M in 2019.  For the Aerospace Segment, sales in Q3 2020 were $8.7M compared to $9.6M in Q3 last year. Simulator related sales were down $1M in Q3 2020. Simulator revenues are expected to be strong in the fourth quarter. The Aerospace sites were negatively impacted by extended component lead times as a result of COVID-19 impacts on the supply chain.  Year-to-date 2020, Aerospace Segment sales were down $8.8M or 27%, partly due to lower demand and partly due to timing of simulator related orders.Gross margins in Q3 2020 were $6.7M or 27.6% compared to $7.9M or 28.3% in Q3 2019. The lower sales impacted the overall margin while strong cost control and the Canadian wage subsidy partially offset this drop.Earnings before interest, tax, depreciation and amortization (EBITDA) for FTG for Q3 2020 was $3.3M compared to $4.3M in Q3 2019.  The following table reconciles net earnings to EBITDA(2) for the quarter and the trailing 12 months ended August 28, 2020. Q3 2020Trailing 12 Months     Net earnings to equity holders of FTG 645,000 657,000 Add:   Interest, accretion 200,000 630,000 Income taxes 773,000 3,048,000 Depreciation/Amortization Stock Comp./Impairment 1,646,000 7,615,000     EBITDA$3,264,000$11,950,000 (2) EBITDA are not measures recognized under International Financial Reporting Standards (“IFRS”). Management believes that these measures are important to many of the Corporation’s shareholders, creditors and other stakeholders. The Corporation’s method of calculating EBITDA may differ from other corporations and accordingly may not be comparable to measures used by other corporations. Net profit after tax at FTG in Q3 2020 was $0.6M or $0.03 per diluted share compared to a net profit of $1.8M or $0.07 per diluted share in Q3 2019. Net profit after tax in Q3 2020 was impacted by the lower sales, offset by strong cost controls and the Canadian wage subsidy.The Circuits Segment net earnings before corporate and interest and other costs was $1.2M in Q3 2020 compared to $3.3M in Q3 2019.  The lower sales was the most significant impact on the segment profitability.  For the year-to-date, the net earnings before corporate and interest and other costs was $5.7M compared to $9.4M in the first 9 month of 2019.The Aerospace net earnings before corporate and interest and other costs in the quarter was $1.2M in Q3 2020 versus $0.1M in Q3 2019. The improvement is primarily due to improved performance at the Chatsworth facility, offset by the impact of lower sales. In the first 9 months of 2020, the net earnings before corporate and interest and other costs was ($0.2M) compared to $1.3M in the same period last year. Reduced sales impacted earnings and Q1 2020 included $1.1M cost for impairment of intangible assets.As at August 28, 2020, the Corporation’s net working capital was $37.1M, compared to $28.6M at year-end in 2019. The increase is due to higher cash, higher inventories, lower accounts payable offset by lower accounts receivable. Also at year-end, all debt was classified as current and with the new bank facility, $4.2M is now long term debt.Net cash at the end of Q3 2020 was $8.8M compared to net cash of $2.2M at the end of 2019.  The Corporation will host a live conference call on Thursday October 8, 2020 at 8:30am (Eastern) to discuss the results of Q3 2020.Anyone wishing to participate in the call should dial 647-427-2311 or 1-866-521-4909 and identify that you are calling to participate in the FTG conference call. The Chairperson is Mr. Brad Bourne. A replay of the call will be available until November 7, 2020 and will be available on the FTG website at www.ftgcorp.com. The number to call for a rebroadcast is 416-621-4642 or 1-800-585-8367, Conference ID 3473018. ABOUT FIRAN TECHNOLOGY GROUP CORPORATIONFTG is an aerospace and defense electronics product and subsystem supplier to customers around the globe. FTG has two operating units:FTG Circuits is a manufacturer of high technology, high reliability printed circuit boards. Our customers are leaders in the aviation, defense, and high technology industries. FTG Circuits has operations in Toronto, Ontario, Chatsworth, California, Fredericksburg, Virginia and a joint venture in Tianjin, China.FTG Aerospace manufactures and repairs illuminated cockpit panels, keyboards and sub-assemblies for original equipment manufacturers of aerospace and defense equipment. FTG Aerospace has operations in Toronto, Ontario, Chatsworth, California, Fort Worth, Texas and Tianjin, China.The Corporation's shares are traded on the Toronto Stock Exchange under the symbol FTG.FORWARD-LOOKING STATEMENTSThis news release contains certain forward-looking statements. These forward-looking statements are related to, but not limited to, FTG’s operations, anticipated financial performance, business prospects and strategies. Forward-looking information typically contains words such as “anticipate”, “believe”, “expect”, “plan” or similar words suggesting future outcomes. Such statements are based on the current expectations of management of the Corporation and inherently involve numerous risks and uncertainties, known and unknown, including economic factors and the Corporation’s industry, generally. The preceding list is not exhaustive of all possible factors. Such forward-looking statements are not guarantees of future performance and actual events and results could differ materially from those expressed or implied by forward-looking statements made by the Corporation. The reader is cautioned to consider these and other factors carefully when making decisions with respect to the Corporation and not place undue reliance on forward-looking statements. Other than as may be required by law, FTG disclaims any intention or obligation to update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise.For further information please contact:        Bradley C. Bourne, President and CEO                                                            Firan Technology Group Corporation Tel: (416) 299-4000 x314 bradbourne@ftgcorp.comJamie Crichton, Vice President and CFO                                                 Firan Technology Group Corporation Tel:(416) 299-4000 x264 jamiecrichton@ftgcorp.comAdditional information can be found at the Corporation’s website www.ftgcorp.com FIRAN TECHNOLOGY GROUP CORPORATION    Interim Condensed Consolidated Statements of Financial Position           (Unaudited) August 28,November 30,  (in thousands of Canadian dollars) 2020 2019   ASSETS     Current assets    Cash  $ 15,710$7,647   Accounts receivable 15,634 21,085   Contract assets 498 432   Inventories  23,456 21,990   Prepaid expenses 2,332 1,770        57,630 52,924   Non-current assets    Plant and equipment, net 13,206 13,830   Right-of-use assets 12,540 -   Deferred income tax assets 724 724   Investment tax credits receivable 1,587 3,035   Deferred development costs 218 279   Intangible assets and other assets, net 943 2,585   Total assets $ 86,848$73,377   LIABILITIES AND EQUITY    Current liabilities    Accounts payable and accrued liabilities$ 11,994$17,104   Provisions  767 946   Contract liabilities 2,623 216   Current portion of bank debt 2,704 5,416   Current portion of lease liabilities 1,717 -   Income tax payable 732 639        20,537 24,321   Non-current liabilities    Bank debt  4,246 -   Lease liabilities 11,080 -   Deferred tax payable 1,412 1,297   Total liabilities 37,275 25,618   Equity     Retained earnings$ 17,827$17,745   Accumulated other comprehensive loss 583 (1,554)       18,410 16,191   Share capital    Common Shares 19,663 19,323   Preferred Shares 2,218 2,218   Contributed surplus 8,285 8,933   Total equity attributable to FTG's shareholders 48,576 46,665   Non-controlling interest 997 1,094   Total equity 49,573 47,759   Total liabilities and equity$ 86,848$73,377           FIRAN TECHNOLOGY GROUP CORPORATION         Interim Condensed Consolidated Statements of Earnings (loss)                        Three months endedNine months ended  (Unaudited)August 28, August 30, August 28, August 30,  (in thousands of Canadian dollars, except per share amounts) 2020 2019 2020 2019              Sales $ 24,364  $27,953  $ 75,724  $85,578               Cost of sales          Cost of sales 16,203   19,097   52,080   58,564    Depreciation of plant and equipment 1,048   933   3,111   2,620    Depreciation of right-of-use assets 391   -   1,177   -   Total cost of sales 17,642   20,030   56,368   61,184   Gross margin 6,722   7,923   19,356   24,394               Expenses          Selling, general and administrative 2,827   3,367   10,314   10,728    Research and development costs 1,302   1,223   3,966   3,507    Recovery of investment tax credits, net (195)  (214)  (570)  (409)   Depreciation of plant and equipment 62   40   162   123    Depreciation of right-of-use assets 12   -   37   -    Amortization of intangible assets 94   284   490   827    Interest expense on bank debt, net 61   69   159   236    Accretion on lease liabilities 139   -   417   -    Stock based compensation 21   80   112   234    Foreign exchange loss 1,011   236   596   532    Impairment of intangible assets -   -   1,145   -   Total expenses 5,334   5,085   16,828   15,778               Earnings before income taxes 1,388   2,838   2,528   8,616               Current income tax expense 734   1,044   2,429   3,115   Deferred income tax expense 39   43   115   127   Total income tax expense 773   1,087   2,544   3,242               Net earnings (loss)$ 615  $1,751  $ (16) $5,374               Attributable to:         Non-controlling interest$ (30) $(32) $ (98) $(109)  Equity holders of FTG$ 645  $1,783   82   5,483               Earnings per share, attributable to the equity holders of FTG          Basic$ 0.03  $0.08  $ -  $0.24    Diluted$ 0.03  $0.07  $ -  $0.22               FIRAN TECHNOLOGY GROUP CORPORATION         Interim Condensed Consolidated Statements of Comprehensive Income (Loss)                      Three months endedNine months ended (Unaudited) August 28, August 30, August 28, August 30, (in thousands of Canadian dollars)  2020   2019   2020   2019              Net earnings (loss) $ 615  $1,751  $ (16) $5,374              Other comprehensive earnings (loss) to be reclassified to          net earnings (loss) in subsequent periods:                      Change in foreign currency translation adjustments  (1,071)  (634)  (305)  (344)  Change in net unrealized loss (gain) on derivative financial instruments           designated as cash flow hedges  4,117   543   3,257   (782)  Change in tax impact  (1,030)  (136)  (814)  195                   2,016   (227)  2,138   (931)             Total comprehensive income  $ 2,631  $1,524  $ 2,122  $4,443              Attributable to:         Equity holders of FTG $ 2,685  $1,613  $ 2,219  $4,580  Non-controlling interest $ (54) $(89) $ (97) $(137)             FIRAN TECHNOLOGY GROUP CORPORATION          Interim Condensed Consolidated Statements of Changes in Equity                                  Nine months ended August 28, 2020  Attributed to the equity holders of FTG            Accumulated            other  Non-    (Unaudited)CommonPreferredRetainedContributedcomprehensive controlling Total   (in thousands of Canadian dollars)sharessharesearningssurpluslossTotalinterestequity   Balance, November 30, 2019$ 19,323 $ 2,218$ 17,745$ 8,933 $ (1,554)$ 46,665 $ 1,094 $ 47,759    Net earnings (loss) -  - 82 -  -  82  (98) (16)   Stock-based compensation -  - - 112  -  112  -  112    Transfer from contributed surplus to share capital for            PSU’s exercised 760    (760) -  -  -  -    Common shares repurchase and issue on exercise            of PSU's (420) - - -  -  (420) -  (420)   Change in foreign currency translation adjustments -  - - -  (306) (306) 1  (305)   Change in net unrealized loss on derivative financial            instruments designated as cash flow hedges, net of            tax impact -  - - -  2,443  2,443  -  2,443    Balance, August 28, 2020$ 19,663 $ 2,218$ 17,827$ 8,285 $ 583 $ 48,576 $ 997 $ 49,573                 Nine months ended Augus 30, 2019  Attributed to the equity holders of FTG            Accumulated            Other Non-    (Unaudited)CommonPreferredRetainedContributedComprehensive controllingTotal   (in thousands of Canadian dollars)sharessharesearningssurpluslossTotalinterestequity   Balance, November 30, 2018$19,323 $2,218$11,687$8,672 $(774)$41,126 $1,181 $42,307    Net earnings (loss) -  - 5,483 -  -  5,483  (109) 5,374    Stock-based compensation -  - - 234  -  234  -  234    Change in foreign currency translation adjustments -  - - -  (316) (316) (28) (344)   Change in net unrealized loss on derivative financial            instruments designated as cash flow hedges            net of tax impact -  - - -  (587) (587) -  (587)   Balance, August 30, 2019$19,323 $2,218$17,170$8,906 $(1,677)$45,940 $1,044 $46,984                              FIRAN TECHNOLOGY GROUP CORPORATION          Interim Condensed Consolidated Statements of Cash Flows                              Three months endedNine months ended  (Unaudited) August 28, August 30, August 28, August 30,  (in thousands of Canadian dollars)  2020  2019  2020  2019  Net inflow (outflow) of cash related to the following:          Operating activities          Net earnings (loss) $ 615  $1,751  $ (16) $5,374   Items not affecting cash:           Stock-based compensation  21   80   112   234    Loss (gain) on disposal of plant and equipment  -   -   6   (1)   Effect of exchange rates on US dollar debt  (415)  (111)  (217)  15    Depreciation of plant and equipment  1,111   973   3,274   2,743    Depreciation of right-of-use assets  403   -   1,214   -    Amortization of intangible assets  94   284   490   827    Amortization, other  17   3   28   9    Impairment of intangible assets  -   -   1,145   -    Investment tax credits/deferred income taxes  950   779   1,555   1,331    Accretion on lease liabilities  139   -   417   -    Decrease (increase) in net unrealized loss on derivative financial instruments            designated as cash flow hedges, net of taxes  3,087   (35)  2,442   (737)  Net change in non-cash operating working capital  (2,653)  3,603   588   (1,001)        3,369   7,327   11,038   8,794   Investing activities           Additions to plant and equipment  (236)  (1,384)  (2,721)  (2,385)   Acquisition of Colonial Circuits Inc., net of cash acquired  -   (3,817)  -   (3,817)   Recovery (additions) of contract and other costs  11   13   60   (6)        (225)  (5,188)  (2,661)  (6,208)  Net cash flow from operating and investing activities  3,144   2,139   8,377   2,586   Financing activities           Proceeds from bank debt  -   -   3,309   -    Repayments of bank debt  (514)  (505)  (1,552)  (1,526)   Lease liability payments  (448)  -   (1,360)  -    Repurchase of common shares on exercise of PSU's  -   -   (420)  -         (962)  (505)  (23)  (1,526)  Effects of foreign exchange rate changes on cash flow  (730)  (36)  (291)  (176)  Net increase in cash flow  1,452   1,598   8,063   884   Cash, beginning of the period  14,258   4,312   7,647   5,026   Cash, end of period $ 15,710  $5,910   15,710  $5,910                 Disclosure of cash payments           Payment for interest $ 46  $74  $ 155  $245    Payments for income taxes $ 18  $265  $ 1,136  $1,386

  • How Is Firan Technology Group's (TSE:FTG) CEO Paid Relative To Peers?
    Simply Wall St.

    How Is Firan Technology Group's (TSE:FTG) CEO Paid Relative To Peers?

    This article will reflect on the compensation paid to Brad Bourne who has served as CEO of Firan Technology Group...