Vector Aerospace Corporation

Vector Aerospace Corporation

March 07, 2007 12:23 ET

Vector Aerospace Announces Strong 2006 Year End Results

TORONTO, ONTARIO--(Marketwire – March 7, 2007) - Vector Aerospace Corporation (Vector) (TSX:RNO) today announces unaudited results for the year ended December 31, 2006.

Fourth Quarter Twelve Months
Operations (in millions of
Canadian dollars): 2006 2005 2006 2005
Revenue from continuing
operations $ 83.2 $ 78.7 $ 332.2 $ 323.6
Net earnings from
continuing operations
before interest, income
taxes and unusual
items $ 6.3 $ 5.9 $ 27.0 $ 22.4
Net earnings $ 4.1 $ 1.8 $ 16.4 $ 11.5

Per Share:
Weighted average number
of common shares
outstanding (millions)
Basic 37.2 34.3 37.1 34.2
Diluted 37.8 35.8 37.7 35.2

Net earnings before
interest, income
taxes and unusual
Basic $ 0.17 $ 0.17 $ 0.73 $ 0.65
Diluted $ 0.17 $ 0.16 $ 0.72 $ 0.64
Net earnings
Basic $ 0.11 $ 0.05 $ 0.44 $ 0.34
Diluted $ 0.11 $ 0.05 $ 0.44 $ 0.33

The unaudited consolidated financial statements and MD&A for the year ended December 31, 2006 are available on the Company's website and on SEDAR.

The Company generated consolidated revenue from continuing operations of $332.2 million for 2006, an increase of $8.6 million from last year. Earnings from continuing operations, before interest, tax, and unusual items, were $27.0 million for 2006, an increase of $4.6 million from the prior year. The earnings improvement in 2006 was primarily as a result of improved year over year earnings at ACROHELIPRO, despite the negative impacts of the strong Canadian dollar. Earnings at Sigma declined compared with the prior year and Atlantic Turbines reported increased earnings in 2006 over 2005. Net earnings for 2006 were $16.4 million ($0.44 per share) compared to $11.5 million ($0.34 per share) in the prior year.

During 2006 the Company reduced debt by $22.7 million (excluding the impact of foreign exchange) to $67.0 million as a result of scheduled debt repayment and cash flows from operations.

In commenting on the year's results, Chairman, President and CEO Donald Jackson stated: "I am pleased with the 2006 results and the improvements over 2005 despite the rising Canadian dollar. Today Vector has a strong Balance Sheet and is well positioned for growth. As we look to the future. Atlantic Turbines reported increased revenues and earnings in 2006 and is expected to do so again in 2007. Sigma's results for 2006 were disappointing, but nevertheless expected with the delayed start of the Royal Saudi Air Force contract which will begin in early 2007. ACROHELIPRO's reorganization in 2005 and increased revenues have had a positive impact on profitability in 2006 and position the operations for growth in 2007. I am confident that the expected growth in revenue for 2007 will result in another year of improved earnings."

Analyst Conference Call

Vector Aerospace Corporation will hold a 2007 conference call to take place at 2:00 p.m. EST on Wednesday, March 7, 2007. The conference call will review Vector's results for the year ended December 31, 2006. The scheduled speakers for the Company on the conference call are Donald Jackson, Chairman, President and Chief Executive Officer and Randal Levine, Senior Vice President and Chief Financial Officer.

To listen to the conference call, the North American dial-in number is 1-800-525-6384 and enter passcode 1542297. The international dial-in number is (780) 409-1668. Please dial in approximately 5-10 minutes prior to the 4:30 p.m. Eastern start time.

A replay service will be available immediately following the conference call until midnight on March 14, 2007. To access this recording dial 1-800-374-8183 or 1-402-220-0881 and enter passcode 1542297.

Vector Aerospace Corporation is an independent provider of aviation repair and overhaul services. Through facilities in Canada, the United States and the United Kingdom it provides services to commercial and military customers for various types of gas turbine engines, components and helicopter airframes. It also provides information technology solutions to an international customer base. Principal operations include Atlantic Turbines, Sigma Aerospace, ACROHELIPRO Global Services and Pathix. The Company has approximately 1,100 employees.

Forward-looking Statements

This news release, which includes the attached management's discussion and analysis of financial condition and results of operations, contains various forward-looking statements. These statements contain words or phrases such as "anticipate", "could", "expect", "seek", "may", "intend", "will", "look forward", "outlook", "believes", "targeting", "feel" and similar expressions that are based on current expectations, estimates, projections, and targets related to the markets in which Vector Aerospace Corporation operates and with respect to its financial condition, results of operations, and the general business of the Company.

By their very nature, forward-looking statements involve inherent risks and uncertainties that the forecasts, targets and assumptions will not be achieved. Indeed, the forward-looking statements may differ materially from actual results or events. Readers are cautioned, therefore, not to place undue reliance on these statements as a number of important factors could cause actual results to differ materially from those expressed in such forward-looking statements. These factors include, without limitation, global and local political and economic uncertainty, to realize production changes, cost reductions and restructuring initiatives throughout the Company. Readers should also refer to the Company's continuous disclosure materials filed with Canadian Securities Regulatory Authorities for additional information with respect to certain of these risk factors. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Annual 2006 Consolidated Financial Statements and MD&A

The Company's complete annual consolidated financial statements for the year ended December 31, 2006 and notes thereto, together with management's discussion and analysis of financial condition and results of operations ("MD&A") to be included in the Company's Annual Report for the year ended December 31, 2006 (the "2006 Annual Report") will be released by the end of March 2007. The overview of financial condition and results of operations included in this news release should be read in conjunction with the 2006 Annual Report which will be available on the Company's website and on SEDAR.

Contact Information

  • Vector Aerospace Corporation
    Donald K. Jackson
    Chairman, President & CEO
    (416) 925-1143
    Vector Aerospace Corporation
    Randal L. Levine
    Senior Vice-President and Chief Financial Officer
    (416) 925-1143