Business
Allen-Vanguard announces financial results for first quarter of fiscal 2008, provides general update to shareholders
- Record revenue of $140.2 million, record EBITDA of $44.3 million - Long-term debt reduced by $1...
About this update from Verisante Technology, Inc.
[{"type":"text","content":"\n\n\n\n- Record revenue of $140.2 million, record EBITDA of $44.3 million\n- Long-term debt reduced by $18.6 million to $226.2 million, with\n favourable covenant amendments\n- Improved program visibility on electronic counter measures (ECM or\n 'jammers') revenue\n- Increased growth potential in the Personal Protection Systems (PPS) and\n Services businesses\n- Recurring revenue base strengthening across all business segments\n\n\nOTTAWA, Feb. 14 /CNW Telbec/ - Allen-Vanguard Corporation (the "Company"\nor "Allen-Vanguard") (TSX: VRS) of Ottawa, Canada reported today its financial\nresults for the first quarter ("Q1 2008") ended December 31, 2007. All figures\nare in Canadian dollars.\n\n\nSummary of Q1 results\n\n\nRevenue was $140.2 million in Q1 2008, a 14-fold increase over\n$10.2 million in Q1 2007. EBITDA(1) was $44.3 million in Q1 2008, compared to\nan EBITDA loss of $0.4 million in Q1 2007. Net earnings were $6.8 million or\n$0.06 per share compared to a net loss of $0.5 million or a loss of\n$0.01 per share in Q1 2007. In Q1 2008 net earnings were after acquisition and\nfinancing related charges and amortization of $37.4 million related to the\nacquisition of Med-Eng Systems Inc. ("Med-Eng") and Hazard Management\nSolutions Inc. ("HMS").\n\n\n"Q1 2008 was our first full quarter of financial results following the\nacquisition of Med-Eng, and the strong revenue and EBITDA performance was\ndriven largely by the delivery of jammers in backlog in our Electronic Systems\nbusiness," said David E. Luxton, President & CEO.\n\n\nThe Company used cash generated from operations in the quarter to\ncontinue rapid repayment of long-term debt under its Senior Debt Facility by a\nfurther $18.6 million, to $226.2 million. At the same time, the Company\nrecognized that upon issuance of the financial statements, the Company would\nhave been in default of certain financial covenants, and accordingly, the\nCompany's lenders have provided a waiver for these financial covenants at\nDecember 31, 2007 and favourably amended the financial covenants under the\nSenior Debt Facility for its remaining term. The terms of this amending\nagreement are detailed in the Financial Highlights of Q1 2008 section below.\n\n\nDevelopments subsequent to the quarter end substantially improved\nvisi...