Business
Allen-Vanguard announces financial results for third quarter of fiscal 2009
OTTAWA, Aug. 17 /CNW/ - Allen-Vanguard Corporation (the "Company" or "Allen-Vanguard") (TSX: VRS)...
About this update from Verisante Technology, Inc.
[{"type":"text","content":"\n\n\n\nOTTAWA, Aug. 17 /CNW/ - Allen-Vanguard Corporation (the "Company" or\n"Allen-Vanguard") (TSX: VRS) of Ottawa, Canada reported on Friday evening,\nAugust 14, 2009, its financial results for the third quarter of fiscal 2009\n("Q3 2009"), which ended June 30, 2009. All figures are in Canadian dollars,\nexcept where noted.\n\n\nSummary of Q3 results\n\n\nRevenue was $51.3 million in Q3 2009, compared to revenue of $31.2\nmillion in Q3 2008. EBITDA(1) was $2.2 million in Q3 2009, versus an EBITDA\nloss of $9.6 million in Q3 2008. Net loss was $99.2 million, or a loss of\n$0.91 per share, compared to a net loss of $36.6 million, or a loss of $0.34\nper share in Q3 2008. The net loss in Q3 2009 included impairment of goodwill\nand intangible assets of $130.3 million (as detailed below), while the net\nloss in Q3 2008 included non-cash charges totaling $16.5 million pertaining to\nacquisitions and associated financings.\n\n\nAllen-Vanguard continues to actively pursue investment by an unrelated\nU.S. investor with whom the Company signed an exclusivity agreement in April.\nThe Company and its lenders are in active negotiations to amend the terms and\ncovenants of the Company's Credit Facility in conjunction with the proposed\ninvestment. The status of these negotiations is more fully described in the\nnotes to the Company's financial statements.\n\n\nThe Company noted that due to reduced revenues from the acquired assets\nof Med-Eng Systems (now renamed AVTI), management tested for impairment of\ngoodwill and intangibles at June 30, 2009. This testing indicated that the\nfair value of the AVTI reporting unit was lower than its carrying amount.\nManagement concluded that impairment of goodwill and of certain intangible\nassets had occurred, and reduced the carrying value of goodwill by $11.3\nmillion, and of certain intangible assets related to the Electronic Systems\nbusiness by $27.6 million and of certain intangible assets related to the\nPersonal Protective Systems business by $91.4 million.\n\n\n"Although revenue was up 64% this quarter over the same period last year,\nit fell short of our expectations due mainly to continued delays in major U.S.\ngovernment programs and spending reductions or deferrals in certain\ninternational markets," said David E. Luxton, President and CEO. "...