2 April 2014
Avcorp Industries Inc. (TSX: AVP) said it has announced its financial results for the year ended December 31, 2013.
Revenue for the year ended December 31, 2013 was USD77,364,000 as compared to USD89,337,000 for the year ended December 31, 2012. Current year revenues have decreased relative to the previous year primarily as a result of the wind-down of Cessna programs, offset by increased deliveries for the F-35 CV-OBW program.
During the year ended December 31, 2013, the company recorded a loss from operations of USD2,015,000 on USD77,364,000 revenue, as compared to USD24,002,000 operating income on USD89,337,000 revenue for the preceding year; and a net loss for the current year of USD1,802,000 as compared to net income of USD20,641,000 for the year ended December 31, 2012.
On November 16, 2012, the company received the determination of an appointed arbitration panel constituted to adjudicate outstanding issues relating to cost reimbursements and compensation payable to the company in connection with the transition of Cessna Aircraft Company (Cessna) production work back to Cessna and other suppliers. The quantum of damages was assessed by the arbitration panel in 2012 at USD27,391,000.
On September 5, 2013 the company entered into a settlement agreement, from a court directed mediation with Cessna, which settled all outstanding litigation between the company and Cessna. The settlement required payment by Cessna of USD27,964,000 (USD29,380,000) in satisfaction of the judgement entered against Cessna from the arbitration award made on November 16, 2012, resulting in USD573,000 (USD604,000) recorded as additional award settlement for 2013. The settlement funds were received in full by the company on September 6, 2013. This settlement satisfies the judgement and has resulted in the dismissal of the outstanding appeal.
Avcorp designs and builds major airframe structures for some of the world´s leading aircraft companies. It offers integrated composite and metallic aircraft structures to aircraft manufacturers, a distinct advantage in the pursuit of contracts for new aircraft designs, which require lowerâcost, light weight, strong, reliable structures.