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Firan Technology Group Corporation today announced financial results for the second quarter 2016.
- Achieved record sales of $19.8M
- Completed acquisition of the assets of PhotoEtch
- Signed Agreement to purchase the assets of Teledyne Printed Circuit Technology (PCT) and subsequent to quarter end closed the transaction
- Signed underwriting agreement to raise equity via a bought deal to support the above acquisitions
"The second quarter of 2016 saw record sales for FTG," stated Brad Bourne, President and Chief Executive Officer. He added, "These record sales are enabling us to report strong earnings while still investing in our future. In the quarter, we completed one acquisition and signed an agreement for a second one. In both cases, the acquisitions increase our access to key new markets and customers. Our intentions are to transition the work to existing FTG facilities and rapidly drive up our utilization rates thereby maximizing the profit potential of these deals."
FTG accomplished many goals in the second quarter of 2016 that continue to improve the Corporation and position it for the future, including:
- Completed the acquisition of the assets of PhotoEtch
- Signed a purchase agreement for the assets of Teledyne PCT, subject to third party consents
- Subsequent to quarter end, closed the acquisition of Teledyne PCT
- Entered into a bought deal to raise $6.9M (gross) of new equity to support the above transactions
- Announced five year agreement with Esterline Korry to supply cockpit products for the Bombardier C Series aircraft
- Subsequent to quarter end, entered into an agreement to license the eSurface technology as a semi additive manufacturing process for certain advanced technology printed circuit boards
For FTG, overall sales increased by $1.0M or 5.3% from $18.8M in Q2 2015 to $19.8M in Q2 2016. Both business segments contributed to the growth. Revenues benefited from the PhotoEtch acquisition which closed on March 18th and contributed $1.3M in incremental sales during the quarter. The Teledyne PCT acquisition closed after the quarter end and therefore did not contribute to sales in Q2. Revenues also benefited from the weakening of the Canadian dollar versus the US dollar which was down 6 cents (5%) in Q2 2016 versus the same quarter last year. Over 80% of FTG's revenues are denominated in US dollars. For the year-to-date, sales were up $1.6M or 4.6%.
The Circuits Segment sales were up $0.4M or 3.1% in Q2 2016 versus Q2 2015. On a year-to-date basis, Circuits sales were up $0.2M or 1%.
For the Aerospace segment, sales in Q2 2016 were $5.6M compared to $5.0M in the same quarter last year resulting in an 11% growth rate. Included in the Q2 2016 results are $1.3M in sales from the acquisition of PhotoEtch. Year-to-date sales were up $1.4M or 16%.
Gross margins in Q2 2016 were flat compared to Q2 2015. The benefit of increased sales were offset by negligible margins at the Fort Worth facility subsequent to its acquisition.
Earnings before interest, tax, depreciation and amortization (EBITDA) for FTG for trailing twelve months is $7.6M.