Business
Allen-Vanguard reports financial results for fiscal 2005 ended September 30th, 2005
Allen-Vanguard reports financial results for fiscal 2005 ended September 30th, 2005.
About this update from Verisante Technology, Inc.
[{"type":"text","content":"\n\n\n\n\n- Fiscal 2005 results in line with previous disclosure\n- Financial position remains strong\n- Order flow and backlog increasing sharply\n\nOTTAWA, Jan. 27 /CNW Telbec/ - Allen-Vanguard Corporation (the \"Company\"\nor \"Allen-Vanguard\") (TSX:VRS) of Ottawa, Canada today reported its financial\nresults for the fiscal year ended September 30th, 2005.\n\nGeneral update\n\n\"We announced on December 30th, 2005, that we would complete this overdue\nfiling by the end of January,\" said interim Chairman and CEO David Luxton.\nThe delay was due solely to technical complexities with the audit, where\nthe year ends of the U.K. and Irish subsidiaries were changed to coincide with\nthat of the parent company and the audit work was completed by several\ndifferent firms. The financial results being announced today are essentially\nthe same as the selected unaudited financial highlights provided in December\n2005.\nThe Company added that it will announce its results for the first quarter\nof fiscal 2006 ended December 31, 2005, by the required regulatory deadline,\nmeaning no later than February 14th, 2006. As noted on December 23rd, when the\nCompany released unaudited interim financial highlights, performance continued\nweak in Q1 of fiscal 2006, attributable mainly to timing of orders, especially\nin the U.S. \"We anticipate that the first quarter of this fiscal year will be\nthe low water mark in the Company's revenue run-rate,\" said David Luxton.\nThe Company stated that its financial position remains healthy, with\norders and backlog now increasing. Working capital was $18.4 million at fiscal\n2005 year-end, including cash of $5.2 million. The company was in compliance\nwith its bank covenants at fiscal year end and expects to be in compliance\nwith all bank covenants as at the end of the first quarter of fiscal 2006\nended December 31st, 2005.\nLast October the Company announced its integration plan and financing\ninitiatives. The plan included achieving approximately $5 million in\nannualized cost reductions. This process began in Q4 of fiscal 2005 and has\ncontinued through Q1 and into Q2 of fiscal 2006. The Company anticipates that\nit will be substantially completed by the end of March, 2006. Associated\nrestructuring charges were accrued at fiscal year end 2005. \"We intend to\nachieve the full amount of savings in the...