Friday, November 2, 2012

CTO - Circa Reports Improved Operating Results for the Third Quarter Ended September 30, 2012 and Declares a Special Cash Dividend (CAD 0.05)

Company: Circa Enterprises Inc
Stock Name: CTO
Amount: CAD 0.05
Announcement Date: 02/11/2012
Record Date: 26/11/2012

Dividend Detail:




CALGARY, Nov. 2, 2012 /CNW/ - Circa Enterprises Inc. (CTO-TSXV) (the
"Company" or "Circa"), a manufacturer of equipment for the
telecommunication, electrical utility, and construction industries,
reports results of operations for the third quarter ended September 30,
2012
and the declaration of a special cash dividend.



THIRD QUARTER RESULTS



Summary of third quarter operating results:




  • Consolidated sales of $5.87 million, representing a 0.1% increase
    compared to Q3��2011 sales of $5.86 million


  • Profit for the period from continuing operations for the third quarter
    of 2012 of $84,000 compared to a loss from continuing operations of
    $77,000 for Q3 2011


  • EBITDA of $210,000 for Q3 2012 compared to EBITDA of $(23,000) for Q3
    2011 (see below for explanation and calculation of EBITDA)


  • Adjusted EBITDA of $218,000 for Q3 2012 compared to Adjusted EBITDA of
    $6,000 for Q3 2011 (see below for explanation and calculation of
    Adjusted EBITDA)



Summary of year-to date operating results:




  • Consolidated sales of $17.21 million, representing a 0.3% increase
    compared to sales of $17.16 million for the same nine month period in
    2011


  • Profit from continuing operations for the nine months ended September
    30, 2012
    of $379,000 compared to a loss of $23,000 for the same period
    in 2011


  • EBITDA of $803,000 for the nine month period ended September 30, 2012
    compared to EBITDA of $268,000 for the same period in 2011


  • Adjusted EBITDA of $856,000 for the nine month period ended September
    30, 2012
    compared to Adjusted EBITDA of $415,000 for the same period in
    2011


  • Cash flow from operations for the nine months ended September 30, 2012
    of $1.1 million, which has enabled the Company to eliminate its debt in
    2012



EBITDA is earnings before interest, taxes, depreciation and
amortization.�� Adjusted EBITDA is earnings before interest, taxes,
depreciation and amortization and is adjusted for other non-recurring
items and non-cash items. EBITDA and Adjusted EBITDA are a non-IFRS
financial measures and do not have any standardized meaning prescribed
by International Financial Reporting Standards and, therefore, may not
to be comparable to similar measures presented by other issuers.��
Management believes that EBITDA and Adjusted EBITDA are useful
supplemental measures, which provides an indication of the results
generated by Circa's primary business activities prior to consideration
of how those activities are financed, amortized or taxed.�� Readers are
cautioned, however, that EBITDA and Adjusted EBITDA should not be
construed as an alternative to comprehensive income (loss) determined
in accordance with IFRS as an indicator of the Company's financial
performance. EBITDA and Adjusted EBITDA are calculated by the Company
as follows:













































































��

��

��

��

��

��

(unaudited)

Nine months

30 Sep 2012

(unaudited)

Nine months

30 Sep 2011

(unaudited)

Three months

30 Sep 2012

(unaudited)

Three months

30 Sep 2011

��

$000's

$000's

$000's

$000's

Profit for the period from continuing

operations

379

(23)

84

(77)

Income taxes

217

(7)

66

(42)

Interest

14

27

1

9

Depreciation and amortization

193

271

59

87

EBITDA

803

268

210

(23)

Non-recurring severance charge

53

147

8

29

Adjusted EBITDA

856

415

218

6





Consolidated sales for the third quarter of 2012 were consistent at $5.9
million
compared to the same period in 2011. Sales in both divisions
were consistent, despite month to month volatility in sales. Telecom
segment sales were $2.5 million and Circa Metals' sales were $3.3
million
in each of Q3 2012 and Q3��2011.



The Company's earnings increased significantly in the quarter when
compared to the prior year due to operational efficiencies.�� The
Company was able to improve productivity and efficiencies and, in turn,
reduce its direct labour costs which resulted in higher gross margins
and operating margins.�� The Company posted after tax profit of $84,000
for the quarter compared to after tax loss of $77,000 reported in 2011.



The Company was able to generate positive EBITDA of $210,000 for the
quarter and $0.8 million for the nine months ended September 30, 2012.��
This cash flow allowed the Company to eliminate its operating line of
credit during the 2012 fiscal year.



Ivan Smith, Circa's President and Chief Executive officer, stated:



"The third quarter 2012 financial results are an improvement over the
results achieved over the third quarter of 2011.�� The Company is
continuing to achieve stronger margins as a result of efficiency and
productivity improvements in its operations.�� This has reduced costs
and improved profitability compared to the prior year.



The Company's balance sheet is strong and the business is stable.�� We
are continuing to pursue new opportunities to grow top line revenue.��
In the coming year, we will continue to concentrate our efforts towards
revenue growth, efficient operations and improving on our financial
results for our shareholders."





















































































































































































CIRCA ENTERPRISES INC.

Consolidated Statements of Comprehensive Income

��

��

��

��

��

��

Unaudited

��

��

��

��

��

��

��

Nine months

ended

30 Sep 2012

Nine months

ended

30 Sep 2011

Three months

ended

30 Sep 2012

Three months

ended

30 Sep 2011

��

��

$000's

$000's

$000's

$000's

��

��

��

��

��

��

Revenue

��

17,214

17,164

5,869

5,861

Cost of sales

��

(13,317)

(13,701)

(4,653)

(4,906)

Gross profit

��

3,897

3,463

1,216

955

Selling, general and administrative

expenses

��

(3,287)

(3,465)

(1,065)

(1,065)

Operating profit (loss)

��

610

(2)

151

(110)

Loss on sale of assets

��

-

(1)

-

-

Finance costs

��

(14)

(27)

(1)

(9)

Profit (loss) before tax

��

596

(30)

150

(119)

Income tax expense

��

(217)

7

(66)

42

Profit (loss) for the period from

continuing operations attributable to

shareholders of the Company

��

379

(23)

84

(77)

Other comprehensive income (loss):

��

��

��

��

��

Exchange differences on translating

foreign operations, net of tax

��

(58)

65

(88)

129

Total comprehensive income (loss) for

the period attributable to shareholders

of the Company

��

321

42

(4)

52

��

��

��

��

��

��

Earnings (loss) per share (in $'s)

��

��

��

��

��

Basic and diluted

��

0.04

(0.00)

0.01

(0.01)





DECLARATION OF SPECIAL DIVIDEND



The Company announced today that its Board of Directors has declared a
special cash dividend of $0.05 per share on its common shares payable
December 12, 2012 to shareholders of record at the close of business
November 28, 2012.�� The Dividend is deemed to be an eligible dividend
for purposes of the Income Tax Act (Canada).



Circa Enterprises Inc. is a public company with operations in Alberta,
Ontario and Florida. The outstanding common shares of Circa Enterprises
Inc. are listed and trade on the TSX Venture Exchange under the trading
symbol CTO. Neither the TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or accuracy
of this release.



The Company's quarterly financial statements and related management's
discussion and analysis have been filed with certain securities
regulatory authorities in Canada and may be accessed electronically
through the SEDAR website at www.sedar.com.



��



SOURCE: Circa Enterprises Inc.







For further information:

Mr. Ivan Smith
President and CEO
Circa Enterprises Inc.
(403) 258-2011

Mr. Cory Tamagi
VP Finance and CFO
Circa Enterprises Inc.
(403) 258-2011

E-Mail:����investor@circaent.com
Website:����www.circaent.com









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