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Operations (in millions of Canadian dollars): First Quarter
2011 2010
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Revenue from continuing operations $ 127.3 $ 127.4
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Earnings from Operations before restructuring costs $ 8.2 $ 13.6
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Net earnings $ 6.1 $ 9.9
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Per Share:
Weighted average number of common shares outstanding
(millions)
Basic 46.1 46.0
Diluted 47.5 46.5
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Earnings from Operations before restructuring costs
Basic $ 0.18 $ 0.30
Diluted $ 0.17 $ 0.29
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Net earnings
Basic $ 0.13 $ 0.22
Diluted $ 0.13 $ 0.21
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The interim consolidated financial statements and MD&A for the three months ended March 31, 2011 and the annual financial statements and MD&A for the year ended December 31, 2010 are available on the Company's website,
www.vectoraerospace.com and on SEDAR,
www.sedar.com. The Company will provide copies of the interim consolidated financial statements and MD&A for the three months ended March 31, 2011 and the annual financial statements and MD&A for the year ended December 31, 2010 to each security holder who requests them. Requests for such financial statements and MD&A can be sent to
Email Contact.
The Company generated consolidated revenue from operations of $127.3 million for the first quarter of 2011, consistent with the same period last year. Earnings from operations before restructuring costs were $8.2 million for the first quarter of 2011, $5.3 million below the same period last year. First quarter revenue and earnings were negatively impacted by declining activity on Lynx airframes in the UK, $2.5 million of costs associated with the sale process, and the impacts of changes in foreign exchange rates. Net earnings for the first quarter of 2011 were $6.1 million ($0.13 per share) compared to $9.9 million ($0.22 per share) for the same period last year.
In commenting on the quarter's results, President and CEO Declan O'Shea stated: "Although our first quarter results were disappointing, we expect improvements as the year progresses. Our results for the first quarter of 2011 were impacted by lower activity levels in the UK as compared to 2010. We expect UK activity levels to improve later in the year and also anticipate continued improvements on activity levels from our North American operations as a result of general economic conditions."
Analyst Conference Call
Vector Aerospace Corporation will hold a first quarter 2011 conference call at 1:30 p.m. EDT on Friday June 10, 2011. The conference call will review Vector's results for the three months ended March 31, 2011. The scheduled speakers for the Company on the conference call are: Declan O'Shea, President and Chief Executive Officer and Randal Levine, Senior Vice President and Chief Financial Officer.
Interested parties can access the conference call in North America by dialing
1-877-974-0445. The international dial-in number is (416) 644-3415. The conference identification number is 4445798#.
A replay service will be available two hours following the conference call until midnight on June 17, 2011. To access this recording, dial 1-877-289-8525 (toll free) or 416-640-1917 and enter pass code 4445798#.
Vector Aerospace Corporation is an independent provider of aviation repair and overhaul services.
Through facilities in Canada, the United States the United Kingdom and Africa, Vector provides services to commercial and military customers for various types of gas turbine engines, components and helicopter airframes.
Vector also provides information technology solutions to an international customer base.
Principal operations include Vector Aerospace Engine Services Atlantic Inc., Vector Aerospace Engine Services UK Limited, Vector Aerospace Helicopter Services Inc., Vector Aerospace International Limited and Pathix ASP.
The Company has approximately 2,500 employees.
Specific Note Regarding Forward Looking Statements
This news release may contain certain information that constitutes forward looking information within the meaning of applicable securities laws. These statements are based on Vector's current expectations, estimates, forecasts and projections related to the operating environment, economies and markets in which Vector operates; its financial condition and its general business. By their very nature, forward-looking statements are based on certain factors and assumptions and are subject to important risks and uncertainties. The forward-looking statements herein may differ materially from actual results or events. While Vector considers the assumptions on which these statements are made to be reasonable, based on information currently available to it, they may prove to be incorrect and 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 factors, general economic, market and business conditions, fluctuations in the cost of borrowing, Vector's ability to receive timely regulatory approvals, competitive actions of other companies, including increased competition from original equipment manufacturers with their own in-house service providers, the occurrence of unexpected events such as fires, equipment failures and other similar events affecting Vector or other parties whose operations or assets directly or indirectly affect Vector and future demand for Vector's services. Readers should also refer to Vector's continuous disclosure materials filed with Canadian Securities Regulatory Authorities for additional information with respect to certain of these risk factors. A discussion of risk factors is contained in Vector's 2010 Management's Discussion and Analysis and in all management's discussion and analysis of financial condition and results of operations filed since the 2010 Management's Discussion and Analysis which are available on Vector's website and on SEDAR. Any forward looking statements contained in this news release are made as of the date of this release and, accordingly, are subject to change after such date. Unless otherwise required under applicable laws, we disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Contacts: Vector Aerospace Corporation Declan O'Shea President & CEO (416) 640-2115 Vector Aerospace Corporation Randal L. Levine Senior Vice-President and Chief Financial Officer (416) 640-2120 www.vectoraerospace.com