- Full year bookings were
$149.5M , up 32% over 2022. - Fourth quarter bookings of
$39.0M were up 9% sequentially and up 22% year-over-year. - FTG full year revenues increased by 51% to
$135.2M , including$22.9M from acquisitions. - FTG achieved Adjusted EBITDA for the full year of
$19.4M (2022 -$8.8M ), and$6.0M for Q4 2023 (Q4 2022 -$2.9M ). - FTG has maintained a strong balance sheet with net debt of
$3.6M , after investments in the year of$25.4M for acquisitions,$6.5M for capital expenditures and$5.9M for research and development. - FTG achieved Adjusted Net Earnings of
$7.0M for fiscal 2023 and$2.4M in Q4 2023.
Business Highlights
During 2023, the Corporation has invested in technology in existing sites, grown the business organically, and completed two acquisitions. FTG is strategically deploying its capital in ways that will drive increased shareholder returns for the future in both the near term and long term. Specifically, FTG accomplished many goals in 2023 that continue to improve the Corporation and position it for the future, including:
- FTG acquired
Holaday Circuits, LLC , ofMinnetonka, Minnesota , subsequently renamed asFTG Circuits Minnetonka LLC , andIMI, Inc. ofHaverhill, Massachusetts , subsequently renamed asFTG Circuits Haverhill Inc. , both of which closed onApril 28, 2023 . - Planned integration activities at both acquisitions progressed well through 2023 with improved throughput, improved pricing, cost savings and FTG ERP implementation well underway at Circuits Minnetonka, and cost savings, equipment investments and growth plans at Circuits Haverhill. More activities and full FTG ERP implementation for both sites are planned for 2024.
- Also in support of the new acquisitions, and the overall growth of FTG,
Leo LaCroix was hired as Executive Vice President, Circuits to oversee our US Circuits operations including the newly acquired sites. Leo has extensive senior management experience in the circuit board industry selling into the defense market. - As of
November 30, 2023 , FTG had total backlog of$97.0 million , which is a 49% increase over the prior year end amount of$65.3 million . The two acquisitions added approximately$17.0 million of additional backlog as of their closing date. - Customer orders received in 2023 totaled
$149.5M , representing a book to bill ratio of 1.11:1. - FTG ended the year with net debt of
$3.6 million , which includes a$5.2 million interest-free loan from theGovernment of Canada and a$0.5M of favourable-term loan from the Province ofOntario .
Table 1 / Key Financial Metrics
Three months ended | Years ended | ||||
2023 | 2022 | 2023 | 2022 | ||
Sales | |||||
Gross Margin | 10,739 | 5,736 | 39,285 | 21,310 | |
Gross Margin (%) | 26.9% | 24.2% | 29.1% | 23.8% | |
Net Earnings to FTG Equity Holders | |||||
Adjustments | |||||
Government assistance | - | - | (3,758) | (314) | |
Acquisition and divestiture expenses | - | 484 | 615 | 525 | |
Acquisition related deferred tax recovery | (1,466) | - | (1,466) | - | |
Adjusted Net Earnings(1) | |||||
Earnings Per Share | |||||
Basic | |||||
Diluted | |||||
Adjusted Earnings Per Share | |||||
Basic | |||||
Diluted | |||||
(1) Adjusted Net Earnings is not a measure recognized under International Financial Reporting Standards (“IFRS”). Management believes that this measure is important to many of the Corporation’s shareholders, creditors and other stakeholders. The Corporation’s method of calculating Adjusted Net Earnings may differ from other corporations and accordingly may not be comparable to measures used by other corporations.
For FTG in 2023, overall sales increased by
In the fourth quarter, sales were
The Circuits segment sales in 2023 were up
For the Aerospace segment, sales in 2023 were up
Gross margin in 2023 was
Net earnings after tax at FTG in 2023 was
Net earnings after tax at FTG in Q4 2023 was
The Circuits segment net earnings before taxes was
The Aerospace segment net earnings before taxes was
Table 2 / EBITDA
Three months ended | Years ended | ||||
2023 | 2022 | 2023 | 2022 | ||
Net earnings to equity holders of FTG | |||||
Add: | |||||
Interest, accretion | 512 | 124 | 1,283 | 443 | |
Income taxes | (468) | 235 | 2,225 | 1,574 | |
Depreciation/Amortization/Stock Comp. | 2,147 | 1,346 | 7,400 | 5,867 | |
EBITDA(2) | |||||
Adjustments | |||||
Government assistance | - | - | (3,758) | (314) | |
Acquisition and divestiture expenses | - | 484 | 615 | 525 | |
Adjusted EBITDA(2) | |||||
(2) EBITDA and Adjusted EBITDA are not measures recognized under International Financial Reporting Standards (“IFRS”). Management believes that these measures are important to many of the Corporation’s shareholders, creditors and other stakeholders. The Corporation’s method of calculating EBITDA and Adjusted EBITDA may differ from other corporations and accordingly may not be comparable to measures used by other corporations.
Earnings before interest, tax, depreciation and amortization (EBITDA) for FTG in 2023 was
For Q4 2023, EBITDA was
As at
FTG ended 2023 with (
Subsequent to the year end, on
The Corporation will host a live conference call on
Anyone wishing to participate in the call should dial 416-764-8658 or 1-888-886-7786, Conference ID 71906148 and identify that you are calling to participate in the FTG conference call. The Chairperson is Mr.
ABOUT
FTG is an aerospace and defence electronics product and subsystem supplier to customers around the globe. FTG has two operating units:
The Corporation's shares are traded on the
FORWARD-LOOKING STATEMENTS
This news release contains certain forward-looking statements. These forward-looking statements are related to, but not limited to, FTG’s operations, anticipated financial performance, business prospects and strategies. Forward-looking information typically contains words such as “anticipate”, “believe”, “expect”, “plan” or similar words suggesting future outcomes. Such statements are based on the current expectations of management of the Corporation and inherently involve numerous risks and uncertainties, known and unknown, including economic factors and the Corporation’s industry, generally. The preceding list is not exhaustive of all possible factors. Such forward-looking statements are not guarantees of future performance and actual events and results could differ materially from those expressed or implied by forward-looking statements made by the Corporation. The reader is cautioned to consider these and other factors carefully when making decisions with respect to the Corporation and not place undue reliance on forward-looking statements. Other than as may be required by law, FTG disclaims any intention or obligation to update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise.
For further information please contact:
Tel: (416) 299-4000 x314
bradbourne@ftgcorp.com
Tel: (416) 299-4000 x264
jamiecrichton@ftgcorp.com
Additional information can be found at the Corporation’s website www.ftgcorp.com
Source:
2024 GlobeNewswire, Inc., source