Business
Allen-Vanguard reports financial results for second quarter of fiscal 2006 ended March 31st, 2006
Allen-Vanguard reports financial results for second quarter of fiscal 2006 ended March 31st, 2006.
About this update from Verisante Technology, Inc.
[{"type":"text","content":"\n\n\n\n\n Company returns to profitability on strong revenue performance\n\nOTTAWA, May 11 /CNW Telbec/ - Allen-Vanguard Corporation (TSX:VRS) of\nOttawa, Canada today reported its financial results for the second quarter of\nfiscal year 2006 ended March 31, 2006. All financial information is in\nCanadian dollars.\nRevenue for the second quarter was $13.4 million and EBITDA(1) was\n$1.1 million. Net earnings were $0.2 million, or $0.01 per share. These\nresults are consistent with preliminary figures released on April 25. In the\nsecond quarter of fiscal 2005, revenue was $13.5 million, EBITDA was\n$0.1 million and a net loss of $0.7 million or $0.03 per share was recorded.\nThe Company noted that the revenue and EBITDA performance in the quarter\nshowed a strong turnaround from the previous two quarters when operating\nlosses were reported. This reflects a strong contribution from the electronic\ncounter measures (\"ECM\") business, which represented a record 53% of sales in\nthe quarter, together with the initial benefit of cost savings measures\ninitiated in January 2006. The Company has reduced its annualized selling and\nadministration costs by approximately $6 million. In addition, the Company\ngenerated free cash flow of $2.2 million in the quarter, which has resulted in\nan equivalent reduction in net debt since December 31, 2005.\n\"We're extremely pleased that our second quarter performance marks a\nreturn to profitability and free cash flow generation, and that we have enough\nvisibility on the remainder of the year to project stronger operating results\nin the third quarter and a net profit for fiscal 2006 overall,\" said David E.\nLuxton, interim President and CEO. \"This is before any major potential\ncontract wins through our business development activity with Lockheed Martin\non ECM programs in the U.S., where important military trials are underway.\"\nFor the six month period ended March 31, 2006, revenue was $22.3 million,\ncompared to $31.0 million in the prior year period. The year to date EBITDA\nloss was $0.6 million, and the net loss was $2.3 million or $0.06 per share.\nThis compares to EBITDA of $3.1 million, and a net loss of $1.4 million or\n$0.06 per share in the prior year period.\nThe Company affirmed that its financial position remains healthy, and\nthat it was in compliance with all revised bank ...