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Firan Technology Group Corporation (FTG.TO)

Toronto - Toronto Real Time Price. Currency in CAD
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2.2600-0.0600 (-2.59%)
At close: 2:36PM EDT
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Previous Close2.3200
Open2.2600
Bid2.2800 x 0
Ask2.3000 x 0
Day's Range2.2600 - 2.3000
52 Week Range1.4600 - 2.5700
Volume5,616
Avg. Volume45,501
Market Cap55.35M
Beta (5Y Monthly)1.55
PE Ratio (TTM)16.26
EPS (TTM)0.1390
Earnings DateJul. 06, 2021 - Jul. 12, 2021
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateN/A
1y Target Est3.50
  • ACCESSWIRE

    Firan Technology Group Corp. to Host Earnings Call

    NEW YORK, NY / ACCESSWIRE / April 15, 2021 / Firan Technology Group Corp. (OTC PINK:FTGFF) will be discussing their earnings results in their 2021 First Quarter Earnings call to be held on April 15, 2021 at 8:30 AM Eastern Time.

  • Firan Technology Group Corporation (“FTG”) Announces First Quarter 2021 Financial Results
    GlobeNewswire

    Firan Technology Group Corporation (“FTG”) Announces First Quarter 2021 Financial Results

    TORONTO, April 14, 2021 (GLOBE NEWSWIRE) -- Firan Technology Group Corporation (TSX: FTG) today announced financial results for the first quarter 2021. FTG continues to manage through the COVID-19 pandemic by focusing on three key strategies: FTG’s long-term market diversification strategy enables the Company to mitigate the dramatic downturn in the commercial aerospace market through its involvement in the defense market and other aerospace sectorsFTG continues to carefully manage costs across the Company, balancing decisions on cost reductions with a goal to retain critical skills to ensure the Company is positioned for a faster recovery in the futureFTG continues to carefully manage investments and has a stronger balance sheet than before the pandemic FTG was approved for an additional $1M in Canada Emergency Wage Subsidy (CEWS) in the quarter which we used to help maintain our workforce in the face of revenue reductions due to COVID-19. The funds were paid to FTG subsequent to quarter end as a result of administrative delays within the governmentFTG received forgiveness of $1.3M in US Paycheck Protection Program funds in the United States as a result of FTG maintaining our workforce for the required period of timeFTG achieved $14.5M EBITDA for the trailing 12 months, the highest since mid 2019FTG increased our net cash on the balance sheet to $13.4M, an increase of $0.8M in Q1 2021 First Quarter Results: (three months ended Mar 5, 2021 compared with three months ended Feb 28, 2020) Q1 2021 Q1 2020 Sales $18,970,000 $24,538,000 Gross Margin 3,662,000 3,960,000 Gross Margin (%) 19.3% 16.1% Operating Earnings (1): 686,000 242,000 • Net R&D Investment 1,382,000 1,081,000 • R&D Tax Credits (127,000) (172,000)• Foreign Exchange Loss 618,000 49,000 • Amortization of Intangibles 89,000 299,000 • Forgiveness of debt (1,336,000) - • Impairment of Intangibles - 1,145,000 Net (Loss) Earnings before Tax 60,000 (2,160,000) • Income Tax 487,000 469,000 • Non-controlling Interests (27,000) (32,000) Net (Loss) Earnings After Tax ($400,000) ($2,597,000) (Loss) Earnings per share - basic ($0.02) ($0.11)- diluted ($0.02) ($0.11) (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 Highlights FTG accomplished many goals in Q1 2021 that continue to improve the Corporation and position it for the future, including: Achieved a 0.96:1 book-to-bill ratio for Q1 2021 and increased bookings by 11% compared to Q4 2020Received a new development contract from a major Tier 1 Aerospace company for a family of cockpit assemblies that leads to significant future revenues in 2022 and beyondReceived a significant new customer approval from a major Tier 1 Aerospace company for our Aerospace Tianjin facility opening up significant new revenue opportunitiesReceived a new customer approval from a major Airframe company for our Aerospace Toronto and Aerospace Tianjin facilities opening up significant new revenue opportunities and first production parts were shipped within the quarterContinued efforts to pivot towards the defense market and have substantially completed qualification/approval at 5 new customers for our sites in both Canada and the US Supported customers’ efforts to begin to re-shore some procurement of aerospace printed circuit boards in support of new US regulationsInstalled Averatek semi-additive circuit board manufacturing equipment in our Circuits Fredericksburg facility and will begin process development in Q2Was approved for an additional $1M in Canada Emergency Wage Subsidy (CEWS) which we used to help maintain our workforce in the face of revenue reductions due to COVID-19 however receipt of the funding was delayed until after the end of Q1 due to administrative delays within the governmentReceived forgiveness of $1.3M in PPP loans in the US in the quarter as we achieved the requirements for forgiveness under that programManaged cost by extending Christmas holiday shutdowns at sites most impacted by the drop in commercial aerospace activities Overall for FTG, sales decreased by $5.6M or 23% from $24.5M in Q1 2020 to $19M in Q1 2020. The COVID-19 pandemic has negatively impacted commercial aerospace activity and this impacted FTG’s sites predominantly focused on this market, which include Circuits Toronto and the facilities in China. The Circuits Segment sales in Q1 2021 were down $4.5M, or 27% in Q1 2021 versus Q1 2020. All sites were down but the largest decline was seen in the Circuits Toronto plant which is more heavily exposed to the Commercial Aerospace market. Circuits Chatsworth had a serious COVID-19 event in December and January, and this combined with organizational transitions to strengthen the management team, hurt production and shipments in the quarter. For the Aerospace Segment, sales in Q1 2021 were $7.0M compared to $8.1M in Q1 last year, a decrease of $1.1M or 14%. Simulator related sales increased by $1.3M in Q1 2021 compared to the same quarter last year, helping to mitigate the downturn in the commercial aerospace market. The Aerospace Tianjin site was down the most at it is exclusively focused on commercial aerospace. Gross margins in Q1 2021 were $3.7M or 19.3% compared to $4.0M or 16.1% in Q1 2020. The lower sales impacted the overall margin. The Canadian Emergency Wage Subsidy added $0.9M to gross margin or 4.7 percentage points. Trailing twelve month (TTM) Earnings before interest, tax, depreciation and amortization (EBITDA) for FTG was $14.5M. Lower sales and the operational challenges in Circuits Chatsworth, were offset by wage subsidies in Canada and the PPP forgiveness in the US. The following table reconciles EBITDA(2) to the net earnings for the trailing 12 months as at March 5, 2021. Trailing 12 Months Net earnings to equity holders of FTG3,587,000 Add: Interest, accretion754,000 Income taxes3,402,000 Depreciation/Amortization &Stock Comp6,767,000 EBITDA$14,510,000 (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 loss after tax at FTG in Q1 2021 was $0.4M or $0.02 per diluted share compared to a net loss of $2.6M or $0.11 per diluted share in Q1 2020. Revenues were reduced due to the decline in the Commercial Aerospace market as a result of the COVID-19 pandemic. The impairment of intangible assets in Q1 2020 reduced earnings by $1.1M compared to nil in Q1 2021. The CEWS funding in Canada and the PPP forgiveness in the US in Q1 2021 increased earnings by $2.3M. The COVID-19 event and the organizational transitions in Chatsworth negatively impacted earnings in Q1 2021. The Circuits Segment net earnings before corporate and interest and other costs was $0.6M in Q1 2021 compared to $0.7M in Q1 2020. The lower sales was the most significant impact on the segment profitability offset by CEWS funding and PPP forgiveness. The COVID-19 event in Chatsworth and the transitions in the management team negatively impacted that site’s results in Q1 2021. The Aerospace net earnings before corporate and interest and other costs increased to $0.2M in Q1 2021 from a loss of $2.0M in Q1 2020. Increased activity in the simulator related business, improved overall operating performance and PPP forgiveness of $0.7M were partially offset by reduced activity in commercial Aerospace. The impairment of the intangible asset in Q1 2020 reduced earnings by $1.1M in that quarter. As at March 5, 2021, the Corporation’s net working capital was $39.6M, compared to $39.4M at year-end in 2020. FTG ended Q1 2021 with $13.4M in net cash as compared to $12.6M at the end of 2020. Cashflow would have been $1M higher in the quarter if the CEWS funding had been received before the end of the quarter. The Corporation will host a live conference call on Thursday, April 15, 2021 at 8:30am (Eastern) to discuss the results of the first quarter 2021. 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. Conference ID is 8719895. The Chairperson is Mr. Brad Bourne. A replay of the call will be available until May 15, 2021 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 8719895. ABOUT FIRAN TECHNOLOGY GROUP CORPORATION FTG 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 STATEMENTS This 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 CorporationTel: (416) 299-4000 x314bradbourne@ftgcorp.com Jamie Crichton, Vice President and CFO Firan Technology Group CorporationTel: (416) 299-4000 x264jamiecrichton@ftgcorp.com Additional information can be found at the Corporation’s website www.ftgcorp.com FIRAN TECHNOLOGY GROUP CORPORATION Interim Condensed Consolidated Statements of Financial Position (Unaudited)March 5,November 30, (in thousands of Canadian dollars) 2021 2020 ASSETS Current assets Cash and cash equivalents$ 18,073$19,032 Accounts receivable 13,257 16,795 Contract assets 906 985 Inventories 18,833 19,304 Prepaid expenses and other 5,071 3,363 56,140 59,479 Non-current assets Plant and equipment, net 11,768 12,640 Right-of-use assets 11,615 12,130 Investment tax credits recoverable 1,012 1,359 Intangible and other assets, net 957 1,068 Total assets$ 81,492$86,676 LIABILITIES AND EQUITY Current liabilities Accounts payable and accrued liabilities$ 10,808$13,904 Provisions 835 885 Contract liabilities 477 388 Current portion of bank debt 2,300 2,931 Current portion of lease liabilities 1,785 1,810 Income tax payable 362 155 16,567 20,073 Non-current liabilities Bank debt 2,343 3,464 Lease liabilities 10,238 10,659 Deferred tax payable 1,076 1,192 Total liabilities 30,224 35,388 Equity Retained earnings$ 18,735$19,135 Accumulated other comprehensive income 1,336 958 20,071 20,093 Share capital Common Shares 21,881 21,881 Contributed surplus 8,343 8,303 Total equity attributable to FTG's shareholders 50,295 50,277 Non-controlling interest 973 1,011 Total equity 51,268 51,288 Total liabilities and equity$ 81,492$86,676 FIRAN TECHNOLOGY GROUP CORPORATION Interim Condensed Consolidated Statements of Loss Three months ended (Unaudited)March 5, February 28, (in thousands of Canadian dollars, except per share amounts) 2021 2020 Sales$ 18,970 $24,538 Cost of sales Cost of sales 13,865 19,199 Depreciation of plant and equipment 1,077 994 Depreciation of right-of-use assets 366 385 Total cost of sales 15,308 20,578 Gross margin 3,662 3,960 Expenses Selling, general and administrative 2,691 3,431 Research and development costs 1,382 1,081 Recovery of investment tax credits (127) (172)Depreciation of plant and equipment 63 46 Depreciation of right-of-use assets 17 12 Amortization of intangible assets 89 299 Interest expense on bank debt, net 39 41 Accretion on lease liabilities 126 137 Stock based compensation 40 51 Foreign exchange loss 618 49 Forgiveness of debt (1,336) - Impairment of intangible assets - 1,145 Total expenses 3,602 6,120 Earnings before income taxes 60 (2,160) Current income tax expense 461 434 Deferred income tax expense 26 35 Total income tax expense 487 469 Net loss$ (427) $(2,629) Attributable to: Non-controlling interest$ (27) $(32)Equity holders of FTG$ (400) $(2,597) Loss per share, attributable to the equity holders of FTG Basic$ (0.02) $(0.11)Diluted$ (0.02) $(0.11) FIRAN TECHNOLOGY GROUP CORPORATION Interim Condensed Consolidated Statements of Comprehensive Loss Three months ended (Unaudited)March 5, February 28, (in thousands of Canadian dollars) 2021 2020 Net loss$ (427) $(2,629) Other comprehensive earnings (loss) to be reclassified to net earnings (loss) in subsequent periods: Change in foreign currency translation adjustments (428) 248 Net gain (loss) on valuation of derivative financial instruments designated as cash flow hedges 1,060 (382)Deferred income taxes (265) 96 367 (38) Total comprehensive loss$ (60) $(2,667) Attributable to: Equity holders of FTG$ (22) $(2,653)Non-controlling interest$ (38) $(14) FIRAN TECHNOLOGY GROUP CORPORATION Interim Condensed Consolidated Statements of Changes in Equity Three months ended March 5, 2021 Attributed to the equity holders of FTG Accumulated other Non- (Unaudited)CommonPreferredRetainedContributedcomprehensive controllingTotal(in thousands of Canadian dollars)sharessharesearningssurplusincome TotalinterestequityBalance, November 30, 2020$ 21,881$ -$ 19,135 $ 8,303$ 958 $ 50,277 $ 1,011 $ 51,288 Net loss - - (400) - - (400) (27) (427)Stock-based compensation - - - 40 - 40 - 40 Other comprehensive income (loss) - - - - 378 378 (11) 367 Balance, March 5, 2021$ 21,881$ -$ 18,735 $ 8,343$ 1,336 $ 50,295 $ 973 $ 51,268 Three months ended February 28, 2020 Attributed to the equity holders of FTG Accumulated other Non- (Unaudited)CommonPreferredRetainedContributedcomprehensive controllingTotal(in thousands of Canadian dollars)sharessharesearningssurpluslossTotalinterestequityBalance, November 30, 2019$19,323$2,218$17,745 $8,933$(1,554)$46,665 $1,094 $47,759 Net loss - - (2,597) - - (2,597) (32) (2,629)Stock-based compensation - - - 51 - 51 - 51 Other comprehensive income (loss) - - - - (56) (56) 18 (38)Balance, February 28, 2020$19,323$2,218$15,148 $8,984$(1,610)$44,063 $1,080 $45,143 FIRAN TECHNOLOGY GROUP CORPORATION Interim Condensed Consolidated Statements of Cash Flows Three months ended (Unaudited)March 5, February 28, (in thousands of Canadian dollars) 2021 2020 Net inflow (outflow) of cash related to the following: Operating activities Net loss$ (427) $(2,629)Items not affecting cash and cash equivalents: Stock-based compensation 40 51 Loss on disposal of plant and equipment 1 6 Effect of exchange rates on U.S. dollar bank debt (189) 53 Depreciation of plant and equipment 1,140 1,040 Depreciation of right-of-use assets 383 397 Amortization of intangible assets 89 299 Amortization, other 12 3 Impairment of intangible assets - 1,145 Investment tax credits/deferred income taxes 231 87 Accretion on lease liabilities 126 137 Forgiveness of debt (1,336) - Net gain (loss) on valuation of derivative financial instruments designated as cash flow hedges, net of taxes 795 (286)Net change in non-cash operating working capital (465) 4,022 400 4,325 Investing activities Additions to plant and equipment (378) (1,046)Recovery of contract and other costs 10 6 Additions to deferred financing costs (8) - (376) (1,040)Net cash flow from operating and investing activities 24 3,285 Financing activities Repayments of bank debt (232) (503)Lease liability payments (452) (446) (684) (949)Effects of foreign exchange rate changes on cash flow (299) 169 Net (decrease) increase in cash flow (959) 2,505 Cash and cash equivalents, beginning of the period 19,032 7,647 Cash and cash equivalents, end of period$ 18,073 $10,152 Disclosure of cash payments Payment for interest$ 42 $55 Payments for income taxes$ 197 $979

  • Firan Technology Group Corporation (“FTG”) Announces First Quarter 2021 Earnings Release and Conference Call Dates
    GlobeNewswire

    Firan Technology Group Corporation (“FTG”) Announces First Quarter 2021 Earnings Release and Conference Call Dates

    TORONTO, April 07, 2021 (GLOBE NEWSWIRE) -- Firan Technology Group Corporation (TSX:FTG) will release the first quarter 2021 financial results after market closes on Wednesday, April 14, 2021. The Corporation will host a live conference call on Thursday, April 15, 2021 at 8:30am (Eastern) to discuss the first quarter 2021 financial results. 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 May 15, 2021 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 8719895. ABOUT FIRAN TECHNOLOGY GROUP CORPORATION FTG 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 STATEMENTS This 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 CEOTel: (416) 299-4000 x 314Firan Technology Group Corporationbradbourne@ftgcorp.com James Crichton, Vice President and CFOTel: (416) 299-4000 x 264Firan Technology Group Corporationjamiecrichton@ftgcorp.com Additional information can be found at the Corporation’s website www.ftgcorp.com