TORONTO, Feb. 07, 2024 (GLOBE NEWSWIRE) — Firan Technology Group Corporation (TSX:FTG) today announced financial results for the full year and fourth quarter of 2023.
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, of Minnetonka, Minnesota, subsequently renamed as FTG Circuits Minnetonka LLC, and IMI, Inc. of Haverhill, Massachusetts, subsequently renamed as FTG Circuits Haverhill Inc., both of which closed on April 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 the Government of Canada and a $0.5M of favourable-term loan from the Province of Ontario.
Table 1 / Key Financial Metrics
Three months ended
Years ended
November 30,
November 30,
November 30,
November 30,
2023
2022
2023
2022
Sales
$39,991
$23,750
$135,200
$89,624
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
$3,826
$694
$11,621
$698
Adjustments
Government assistance
–
–
(3,758)
(314)
Acquisition and divestiture expenses
–
484
615
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