For FTG in 2023, overall sales increased by $45. 6 million, or 51%, from $89. 6 million in 2022 to $135. 2 million in 2023. The newly acquired Tours segment, located in Minnetonka, Minn. , and Haverhill, Mass. , contributed $22. 9 million to FTG’s sales. sales during the last seven meses. de 2023. Strong end-market demand, pricing innovations, and successful new programs in the advertising and defense markets resulted in a $19. 0 million biological expansion in 2023 compared to 2022. The average exchange rate in 2023 was 4% (6 cents) higher. . than in 2022, with a positive effect on sales of $3. 7 million.
In the fourth quarter, sales were $40.0M, an increase of $16.2M or 68% over Q4 2022. The acquisitions contributed $10.3M to Q4 2023 sales. Strong market demand, new program wins and increasing throughput at the acquired sites drove the organic growth. The average foreign exchange rate was 1% (2 cents) higher than Q4 2022, with a positive impact on sales of $0.4M.
Tour sales in 2023 increased $32. 0 million, or 54%, from last year, driven by acquisitions and biological expansion, adding pricing measures. Circuit sales increased $12. 2 million, or 79%, in the fourth quarter, driven by expansion from existing sites and higher acquisition performance.
For the Aerospace segment, sales in 2023 were up $12.0M or 35% compared to last year. The increase in sales included incremental Simulator product revenue of $7.0M. In Q4 2023, Aerospace segment sales were up $3.7M or 40%, which included strong end market demand, newly qualified products entering production and increased pricing on existing products.
FTG net after-tax source of income in 2023 $11. 6 million or $0. 48 consistent with diluted percentage, compared to a net source of income of $0. 7 million or $0. 03 consistent with diluted percentage in 2022. Adjusted net after-tax revenue source $7. 0 million or $0. 29 consistent with a diluted percentage consistent with 2023, compared to $0. 9 million or $0. 04 last year. The accumulation of an adjusted net revenue source was driven through an increase consistent with sales volume, a price increase, and an advance consistent with consistent performance.
FTG net source of after-tax revenue for the fourth quarter of 2023 $3. 8 million, or $0. 16 consistent with diluted interest, compared to net source of income of $0. 7 million, or $0. 03 consistent with diluted interest, in the fourth quarter of 2022. Adjusted net profit after tax amounted to $2. 4 million, or $0. 10 consistent with diluted interest, in 2023, compared to $1. 2 million, or $0. 05. The accrual of earnings is the result of an increase consistent with sales volume and accelerated acquisition effects as integration activities progressed.
The net source of pre-tax revenue for the Circuits segment was $8. 1 million in 2023, compared to $2. 8 million in 2022. The accumulation of earnings is the result of higher sales volumes, adding the effect of acquisitions and higher levels of government assistance, which amounted to $2. 8 million in 2022. 2023 compared to $0. 3 million in 2022.
The aerospace segment’s net profit before taxes amounted to $10. 4 million in 2023, to $2. 7 million in 2022. The accrual of benefits is the result of increased sales volumes and operational functionality, as well as higher grades of government assistance, which were $1. 0 million. in 2023 and 0 in 2023. 2022.
(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.
FTG earnings before interest, taxes, depreciation and amortization (EBITDA) in 2023 $22. 5 million or 16. 7% of sales, compared to $8. 6 million or 9. 6% of sales in 2022. Adjusted EBITDA for 2023 $19. 4 million or 14. 3% of sales, after deducting government assistance and increased acquisition costs. The improvement in effects in 2023 was due to higher prices, higher performance, and acquisitions.
For the fourth quarter of 2023, EBITDA was $6. 0 million, or 15. 0% of sales, compared to $2. 4 million, or 10. 1% of sales, in the prior-year quarter. Adjusted EBITDA for the fourth quarter of 2022 $2. 9 million after adding the prices of the sale transaction with subsequent lease of the Aerospace Chatsworth facility and the expenses of any of the acquisitions.
As of November 30, 2023, the Company’s net current capital was $41. 0 million, compared to $30. 5 million at the end of fiscal year 2022. The accumulation was due to higher levels of accounts receivable and inventories due to acquisitions and biological growth, partially offset through a relief in the money balance and higher grades of accounts payable and accrued liabilities.
After the end of the year on January 23, 2024, FTG reached a new collective agreement with its 67 production unions at the Aerospace Toronto site, following a six-week painting stoppage. Sales in the first quarter of 2024 will be negatively impacted by approximately $3 million. to $4 million, along with corresponding earnings relief.
The Company will host a live convention on Thursday, February 8, 2024 at 8:30 a. m. M. (Eastern Time) to discuss fiscal year 2023 results.
Anyone wishing to participate in the call please dial 416-764-8658 or 1-888-886-7786, conference ID 71906148 and identify that you are calling to participate in the FTG convention. The President is Mr. Brad Bourne. The replay of the call will be available until March 8, 2024 and will be available on FTG’s online page at www. ftgcorp. com. The number to call for a replay is 416-764-8692 or 1-877-674-7070, replay code #906148.
ABOUT FIRAN TECHNOLOGY GROUP CORPORATION
FTG Circuits is a manufacturer of high-tech, high-reliability published circuit boards. Our consumers are leaders in the aviation, defense, and high-tech industries. FTG Circuits has operations in Toronto, Ontario, Chatsworth, California, Fredericksburg, Virginia, Minnetonka. , Minnesota, Haverhill, Massachusetts and a joint venture in Tianjin, China.
FTG Aerospace manufactures and maintains illuminated cockpit panels, keypads, and subassemblies for aerospace and defense equipment OEMs. FTG Aerospace has operations in Toronto, Ontario, Chatsworth, California, and Tianjin, China.
The company’s shares on the Toronto Stock Exchange bear the ticker symbol FTG.
FORWARD-LOOKING STATEMENTS
For information, contact:
Bradley C. Bourne, President and Chief Executive Officer, Firan Technology Group CorporationTel. Phone: (416) 299-4000 x314bradbourne@ftgcorp. com
Jamie Crichton, Vice President and CFO Firan Technology Group CorporationTel: (416) 299-4000 [email protected]
Additional information can be found at the Corporation’s website www.ftgcorp.com