Avcorp Releases 2018 First Quarter Financial Results

July 30 2018

Avcorp Industries Inc. released its financial results for the quarter ended March 31, 2018. All amounts are in Canadian currency unless otherwise stated.

2018 Highlights

Key financial results include:
•First quarter 2018 operating loss was reduced by $4,011,000, in comparison to the same quarter in 2017, primarily as a result of increased revenues, consolidation of costs and improved operating effectiveness
•On March 28, 2018, signed a loan agreement to expand the current agreement with a Canadian Chartered Bank, supported by a major and material customer, to access an additional USD$10 million operating line of credit.
•Avcorp is a member of Canada's Digital Technology Supercluster ("CDTS") which was awarded funding under the Federal Government's Innovation Supercluster Initiative ("ISI").
•In Comtek's continuing effort to reduce the operator's key metric of turnaround time for repaired components, while still providing premium quality, Comtek has embarked on deploying a forward base of operations located in the United Kingdom. Doors open in the third quarter and will initially provide much needed support for the growing Q400 fleet in Europe.
•On April 19, 2018 Avcorp's Board appointed Amandeep Kaler, formerly the General Manager of Avcorp's Delta operations, as the new CEO of Avcorp Group.

Review of 2018 First Quarter Financial Results

For the quarter ending March 31, 2018, the Avcorp Group recorded losses from operations totaling $4,606,000 from $43,276,000 revenue, which include costs incurred on start-up of new programs, as compared to $8,617,000 operating losses from $38,568,000 revenue for the same quarter in the previous year. Increased sales and continued consolidation of operating costs have resulted in reduced current quarter operating losses, in comparison to the same quarter in 2017. It should be noted that 2018 operating losses benefited by $1,965,000 income from amortization of an unfavorable contract liability into income (2017: $2,636,000).

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