Circa Reports Sales and Operating results for the Second Quarter Ended June 30, 2014 and common shares issued under the Share Acquisition Plan

CALGARY, Aug. 7, 2014 /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 second quarter ended June 30, 2014 and the issuance of common shares under the Share Acquisition Plan.

OPERATING RESULTS

Summary of second quarter operating results:

• Q2 2014 consolidated sales of $7.1 million, representing a 25.2% increase compared to Q2 2013 sales of $5.6 million
• Profit for the period from continuing operations for Q2 2014 of $316,000 compared to profit from continuing operations of $178,000 for Q2 2013
• Earnings per share of $0.03 for Q2 2014 compared to earnings per share of $0.02 in Q2 2013
• EBITDA of $512,000 for Q2 2014 compared to EBITDA of $301,000 for Q2 2013 (see below for explanation and calculation of EBITDA)
• Working capital of $7.7 million, including $756,000 in cash and no outstanding debt at June 30, 2014

Summary of year-to date operating results:

• Consolidated sales of $14.4 million for the six months ended June 30, 2014, compared to sales of $10.2 million for the six months ended June 30, 2013
• Profit for the period from operations for the six months ended June 30, 2014 of $591,000, compared to a loss for the period from operations of $26,000 for the same period in 2013
• EBITDA of $976,000 for the six month period ended June 30, 2014, compared to EBITDA of $113,000 for the same period in 2013

EBITDA is earnings before interest, taxes, depreciation and amortization.  EBITDA is a non-IFRS financial measure and does 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 is a useful supplemental measure, 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 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 is calculated by the Company as follows:

	(unaudited) Six months 30 June 2014	(unaudited) Six months 30 June 2013	(unaudited) Three months 30 June 2014	(unaudited) Three months 30 June 2013
	$000's	$000's	$000's	$000's
Profit (loss) profit for the period from operations	587	(26)	316	178
Income taxes	281	20	144	62
Interest	1	9	-	6
Depreciation and amortization	103	110	52	55
EBITDA	972	113	512	301

Consolidated sales for the second quarter of 2014 were $7.1 million -- a  25.2% increase over the same period in 2013. The increase in sales is primarily from the Telecom segment, which saw a 55.9% increase in sales over the same period in 2013, due to an increase in orders in its Telecom OEM products.

As a result of the increased sales, the Company earned an after tax profit of $316,000, compared to after tax profit of $178,000 in the second quarter of 2013.  Total comprehensive income decreased by $29,000; from a profit $253,000 in Q2 2013 to $224,000 in Q2 2014.  The drop in comprehensive income is attributed to exchange differences on the translation of foreign currency.

Grant Reeves, Circa's Interim President and Chief Executive Officer, stated:

"The Company posted excellent results for the second quarter and first half of the year chiefly as a result of Telecom OEM demand and to a lesser extent its Metals business. The Company expects to satisfy the majority of its Telecom OEM requirements for an underlying project in the third quarter. As a result of the anticipated conclusion of the underlying project the Company expects its product mix and volumes in the future to reflect this event. We are actively pursuing strategic additions to our portfolio that will allow the Company to continue its growth and profitable results."

CIRCA ENTERPRISES INC.
Consolidated Statements of Comprehensive Income

Unaudited
	Six months ended 30 June 2014	Six months ended 30 June 2013	Three months ended 30 June 2014	Three months  ended 30 June 2013
	$000's	$000's	$000's	$000's
Sales	14,384	10,194	7,058	5,637
Cost of sales	(11,177)	(7,955)	(5,426)	(4,289)
Gross profit	3,207	2,239	1,632	1,348
Selling, general and administrative expenses	(2,338)	(2,236)	(1,172)	(1,102)
Operating profit	869	3	460	246
Other income	4	-	-	-
Finance costs	(1)	(9)	-	(6)
Profit (loss) before tax	872	(6)	460	240
Income tax expense	(281)	(20)	(144)	(62)
Profit (loss) for the period from operations attributable to shareholders of the Company	591	(26)	316	178
Other comprehensive income:
Exchange differences on translating foreign operations, net of tax	25	121	(92)	75
Total comprehensive income for the period attributable to shareholders of the Company	616	95	224	253
Earnings (loss) per share (in $'s)
Basic and diluted	0.06	(0.00)	0.03	0.02

COMMON SHARES ISSUED UNDER ACQUISITION PLAN

On August 7, 2014 the Company issued an aggregate of 7,732 common shares to directors pursuant to the Company's Share Acquisition Plan at a deemed price of $0.97 per share in lieu of the cash annual retainer otherwise payable to the directors.

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.

Mr. Grant Reeves, Interim President and CEO, Circa Enterprises Inc., [phone]; Mr. Cory Tamagi, VP Finance and CFO, Circa Enterprises Inc., [phone]; E-Mail: [email protected], Website: www.circaent.com