CTO Circa Enterprises Inc

CALGARY, March 15, 2018 /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 fourth quarter and year ended December 31, 2017.

Summary of fourth quarter operating results:

• Q4 2017 consolidated sales of $8.5 million, representing a 47.8% increase over the Q4 2017 sales of $5.8 million
• Sales of $1.4 million arising from the Guardian Telecom acquisition in Q4 2017
• Profit from continuing operations for Q4 2017 of $379,000, or $0.04 per share compared to profit from continuing operations of $216,000, or $0.02 per share for Q4 2016
• EBITDA of $952,000 for Q4 2017 compared to EBITDA of $345,000 for Q4 2016 (see below for explanation and calculation of EBITDA)

Summary of fiscal year operating results:

• Consolidated sales of $28.2 million, a 19.0% increase over the 2016 sales of $23.7 million
• Profit from operations for the year of $864,000, being $0.09 per share compared to profit from operations of $212,000 or $0.02 per share for the 2016 fiscal year
• EBITDA of $2.2 million in 2017 compared to EBITDA of $628,000 and Adjusted EBITDA of $937,000 for the 2016 fiscal year (see below for explanation and calculation of Adjusted EBITDA)
• Acquisition of Guardian Telecom in July 2017

EBITDA is earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA is earnings before interest, taxes, depreciation and amortization and is adjusted for restructuring costs related to the acquisition of Alberta Computer Cables. 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 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:

Consolidated sales for the fourth quarter of 2017 were $8.5 million; a $1.7 million or 47.8% increase over the same period in 2016. Sales increased 19.0%, from $23.7 million in 2016 to $28.2 million in 2017. Telecom segment sales increased in the quarter due to the acquisition of Guardian Telecom, which posted $1.5 million in 4Q sales and $2.7 million in 2017 from the acquisition date on July 14, 2017. Sales of cable and connectivity products also increased while surge protection products saw a modest decline. Sales in the Metals segment were up $1.3 million in the fourth quarter on strong demand across most regions and $0.9 million of special poleline equipment orders for hurricane damage in Puerto Rico.

The Company posted after tax profit of $379,000 in the fourth quarter of 2017 compared to $216,000 in the fourth quarter of 2017. For the full fiscal year, the Company recorded profit of $864,000 compared to $212,000 in 2016. This earnings improvement was driven by sales growth and margin expansion, partially offset by selling, general and administrative costs that the Company absorbed with the facilities, operations, personnel and infrastructure of Guardian Telecom.

Grant Reeves, Circa's President and Chief Executive Officer, stated:
"Our strong performance last year and the momentum carried forward reflects solid execution by our talented team of our multi-year strategic plan. We are especially pleased to realize growth in our Metals business from new products that were made possible from investments in new equipment over the last few years. Adding new products for our Telecom business from attractive acquisitions was accomplished with the Guardian Telecom line. Circa expects further growth from its Hydel and Guardian product brands in the future."

GRANT OF STOCK OPTIONS

The Company announced today that it has granted a total of 250,000 stock options to directors, officers and employees of the Company pursuant to the Company's stock option plan. Of these stock options, 135,000 were granted to directors and officers of Circa. The stock options are exercisable for a period of five years at a price of $0.88 per share. One third of these options will vest on the anniversary from the date of the grant over the next three years.

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.