Firan Technology Group Corporation Announces Continued Growth in the First Quarter 2009
TORONTO, ONTARIO–(Marketwire – April 6, 2009) – Firan Technology Group Corporation (TSX:FTG) today announced financial results for the first quarter 2009.
- Sales increased by 8% to $14.7M and
- Gross margin as a percentage of sales increased 31% or $0.9M.
“Given the state of the global economy, we are pleased with our results in our first quarter of 2009. Notwithstanding the dip we saw in demand, we maintained our growth, paid down our debt and renewed our credit facilities with our bank,” stated Mr. Brad Bourne, President and Chief Executive Officer. “We remain committed to our strategy of Operational Excellence to improve our internal performance, and to aggressively invest in R&D to improve our technological capabilities to grow the business”, he added.
Q1 2009 Results: (three months ended February 27, 2009 compared with three
months ended Feb 29, 2008)
Q1 2009 Q1 2008
------------ ------------
Sales $14,694,000 $13,598,000
Operating Earnings before: 1,009,000 161,000
------------ ------------
Net R&D Investment 1,074,000 863,000
Filtran Restructuring and Losses - 368,000
Tax 2,000 (23,000)
------------ ------------
Net Loss ($67,000) ($1,047,000)
------------ ------------
Loss per share
- basic $0.00 ($0.06)
- diluted $0.00 ($0.06)
The Corporation’s sales grew in Q1 2009 to $14,694,000, an increase of $1,096,000 or 8% over Q1 2008. Sales were positively impacted by the strengthening of the U.S. dollar, which offset a decline in activity across both businesses. Customers worked to reduce inventories in the quarter and this reduced demand at FTG. Last years’ acquisition of Filtran increased revenues by $777,000 in the quarter. We continue to see solid demand for this type of product and are working to leverage our knowhow and expand into new programs and customers.
Q1 2009 sales for the Circuits segment were $11,486,000, an increase of $917,000 or 9% compared to Q1 2008. For the Aerospace segment, sales in the first quarter were $3,208,000 compared to $3,029,000 in Q1 2008, an increase of $179,000 or 6%.
FTG had an operating earnings before R&D, and tax in Q1 of 2009 of $1,009,000, compared to $161,000 on an equivalent basis in Q1 2008. There were no Filtran related expenses in Q1 2009 versus $368,000 in Q1 2008.
Net loss for the first quarter was $67,000 compared to a net loss of $1,047,000 in the comparable quarter in 2008. The Q1 2009 loss includes $229,000 in foreign exchange losses due to revaluation of assets and liabilities on the balance sheet, a one time expense related to utility costs of $114,000, expenses of $25,000 related to the creation of FTG Aerospace-Tianjin, offset by a one time recovery of $277,000 due to an overpayment on employee benefits in prior periods. R&D remained high in Q1 2009 as we continue to invest in new technologies and programs.
Across FTG, total bookings in the quarter were $13.3M. The book-to-bill for the Corporation was 0.91:1 and 0.97:1 for the Circuits business. Bookings were generally stable for defence customers, down slightly from large Air Transport customers and down significantly from customers in the business jet markets. The lower orders from existing programs and customers were somewhat offset by the capture of new programs and new customers. Total backlog of orders at the end of Q1 2009 were $16.7M.
FTG accomplished many goals in Q1 2009 that continue to improve the Corporation and position it for the future, including:
- The renewal of multiyear contracts with Honeywell and Rockwell
- Qualification at Lockheed Martin for both Circuits facilities
- The renewal and expansion of credit facilities with Comerica bank
- Acquisition and commissioning of Laser Direct Imaging Technology in Circuits-Toronto
- Continued higher technology activity across all three sites
As at February 27, 2009, the Corporation’s primary source of liquidity included accounts receivable of $12,031,000 and inventory of $9,779,000. Net working capital at February 27, 2009 was $9,493,000.
The Company will host a live conference call on April 7, 2009 at 8:30am (EDT) to discuss the results of Q1 2009.
Anyone wishing to participate in the call should dial 416-641-6136 or 1-866-223-7781 and identify that you are calling to participate in the FTG conference call. The Chairperson is Mr. Brad Bourne. A replay of the call will be available until April 21, 2009 and will be available on the FTG website at www.ftgcorp.com. The number to call for a rebroadcast is 416-695-5800 or 1-800-408-3053, pass code 5034437.
ABOUT FIRAN TECHNOLOGY GROUP CORPORATION
FTG is an aerospace and defense electronics product and subsystem supplier to the North American marketplace. FTG has two operating units:
FTG Circuits is a manufacturer of high technology/high reliability
printed circuit boards. Our customers are leaders in the aviation,
defense, and high technology industries. FTG Circuits has operations
in Toronto, Ontario and Chatsworth, California.
FTG Aerospace manufactures illuminated cockpit panels, keyboards and
sub-assemblies for original equipment manufacturers of avionics
products as well as airframe manufacturers located in Toronto, Ontario.
The Corporation’s shares are traded on the Toronto Stock Exchange under the symbol FTG.
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.
Additional information can be found at the Corporation’s website www.ftgcorp.com.
FIRAN TECHNOLOGY GROUP CORPORATION
Interim Consolidated Balance Sheets
----------------------------------------------------------------------------
----------------------------------------------------------------------------
February 27, 2009 November 30, 2008
(in thousands of dollars) (unaudited) (audited)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
ASSETS
CURRENT
Cash $ 304 $ 170
Accounts receivable 12,031 14,711
Taxes receivable 299 299
Inventories (Note 5) 9,779 9,150
Prepaid expenses 560 445
Future income taxes 279 270
----------------------------------------------------------------------------
23,252 25,045
CAPITAL ASSETS 7,678 7,329
GOODWILL (Note 10) 4,684 4,583
OTHER INTANGIBLE ASSETS 419 431
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$ 36,033 $ 37,388
----------------------------------------------------------------------------
----------------------------------------------------------------------------
LIABILITIES
CURRENT
Bank indebtedness (Note 6) $ 3,126 $ 2,977
Accounts payable and accrued liabilities 8,715 9,872
Current portion of long-term debt (Note 6) 1,918 1,833
----------------------------------------------------------------------------
13,759 14,682
LONG-TERM DEBT (Note 6) 5,767 6,104
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19,526 20,786
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SHAREHOLDERS' EQUITY
Share capital
Common shares 12,681 12,681
Preferred shares 2,218 2,218
Contributed surplus 8,105 8,071
Deficit (6,759) (6,692)
Accumulated other comprehensive income 262 324
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16,507 16,602
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$ 36,033 $ 37,388
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See accompanying notes.
FIRAN TECHNOLOGY GROUP CORPORATION
Interim Consolidated Statements of Loss
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Three Months Ended
---------------------------------------
(in thousands of dollars February 27, 2009 February 29, 2008
except per share amounts) (unaudited) (unaudited)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
SALES $ 14,694 $ 13,598
COST OF SALES 10,893 10,701
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3,801 2,897
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EXPENSES
Selling, general and administrative 1,760 1,965
Research and development costs 1,124 863
Recovery of research and development
costs (50) -
Amortization of capital assets 644 700
Amortization of intangible assets 12 -
Interest expense on long-term debt 122 139
Interest expense on short-term debt 25 43
Restructuring costs - 208
Foreign exchange loss (Note 9 (b)) 229 49
----------------------------------------------------------------------------
3,866 3,967
----------------------------------------------------------------------------
LOSS BEFORE INCOME TAXES (65) (1,070)
(RECOVERY OF) PROVISION FOR INCOME
TAXES 2 (23)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
NET LOSS $ (67) $ (1,047)
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----------------------------------------------------------------------------
NET LOSS PER SHARE
Basic $ - $ (0.06)
Diluted $ - $ (0.06)
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See accompanying notes.
FIRAN TECHNOLOGY GROUP CORPORATION
Interim Consolidated Statements of Shareholders' Equity
(in thousands of dollars) (unaudited)
----------------------------------------------------------------------------
Prefe- Accumulated
Common rred Contri- Other Total
Share Share buted Comprehensive Shareholders'
Capital Capital Surplus Deficit Income ("AOCI") Equity
----------------------------------------------------------------------------
Balance,
November
30, 2008 $ 12,681 $ 2,218 $ 8,071 $ (6,692) $ 324 $ 16,602
----------------------------------------------------------------------------
Net loss - - - (67) - (67)
Other
comprehensive
loss:
Foreign
currency
translation
adjustments
(Note 10) - - - - 173 173
Net
unrealized
loss on
derivative
financial
instruments
designated
as cash flow
hedges
(Note 9 ( c )) - - - - (235) (235)
------------
Comprehensive
loss (129)
Stock based
compensation - - 34 - - 34
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Balance,
February 27,
2009 $ 12,681 $ 2,218 $ 8,105 $ (6,759) $ 262 $ 16,507
----------------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Prefe- Accumulated
Common rred Contri- Other Total
Share Share buted Comprehensive Shareholders'
Capital Capital Surplus Deficit Loss ("AOCI") Equity
----------------------------------------------------------------------------
Balance,
November
30, 2007 $ 12,681 $ 2,218 $ 7,939 $ (6,484) $ (829) $ 15,525
----------------------------------------------------------------------------
Net loss - - - (1,047) - (1,047)
Other
comprehensive
loss:
Foreign
currency
translation
adjustments
(Note 10) - - - - (60) (60)
------------
Comprehensive
loss (1,107)
Stock based
compensation - - 29 - - 29
----------------------------------------------------------------------------
Balance,
February
29, 2008 $ 12,681 $ 2,218 $ 7,968 $ (7,531) $ (889) $ 14,447
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See accompanying notes.
FIRAN TECHNOLOGY GROUP CORPORATION
Interim Consolidated Statements of Cash Flows
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Three Months Ended
----------------------------------------
February 27, 2009 February 29, 2008
(in thousands of dollars) (unaudited) (unaudited)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
NET (OUTFLOW) INFLOW OF CASH RELATED
TO THE FOLLOWING ACTIVITIES:
OPERATING
Net loss $ (67) $ (1,047)
Items not affecting cash
Stock based compensation expense 34 29
Effect of exchange rates on U.S. dollar
Canadian debt 120 (57)
Amortization of capital assets 644 700
Amortization of intangible assets 12 -
Changes in non-cash operating working
capital 906 (1,085)
----------------------------------------------------------------------------
1,649 (1,460)
----------------------------------------------------------------------------
INVESTING
Acquisition of Filtran Microcircuits Inc. - (1,462)
Additions to capital assets (916) (101)
----------------------------------------------------------------------------
(916) (1,563)
----------------------------------------------------------------------------
FINANCING
Increase in bank indebtedness 91 3,493
Repayments of long-term debt (466) (318)
----------------------------------------------------------------------------
(375) 3,175
----------------------------------------------------------------------------
Effects of foreign exchange rate changes
on cash flow (224) (1)
----------------------------------------------------------------------------
NET CASH FLOW 134 151
CASH, BEGINNING OF PERIOD 170 234
----------------------------------------------------------------------------
CASH, END OF PERIOD $ 304 $ 385
----------------------------------------------------------------------------
DISCLOSURE OF CASH PAYMENTS
Payments for interest $ 147 $ 179
Payments for income taxes $ 2 $ 2
----------------------------------------------------------------------------
See accompanying notes.
FIRAN TECHNOLOGY GROUP CORPORATION
Selected Notes to the Interim Consolidated Financial Statements
(In thousands of dollars except per share amounts)(Unaudited)
1. BASIS OF PRESENTATION
The accompanying unaudited interim consolidated financial statements have been prepared on a going concern basis in accordance with Canadian generally accepted accounting principles on a basis consistent with those followed in the November 30, 2008 audited consolidated financial statements of Firan Technology Group Corporation and are presented in Canadian dollars. These unaudited interim consolidated financial statements do not include all the information and note disclosures required by Canadian generally accepted accounting principles for annual financial statements and therefore should be read in conjunction with the said November 30, 2008 audited consolidated financial statements and the notes below.
In the opinion of management, the unaudited interim consolidated financial statements include all adjustments (consisting of normal recurring accruals) considered necessary by management to present a fair statement of the results of operations, financial position and cash flows. The unaudited interim consolidated financial statements were prepared using the same accounting policies and methods as those used in the Corporation’s audited financial statements for the year ended November 30, 2008, except as explained in Note 2.
In light of the current economic environment, demand has softened as some of our customers have reduced existing inventory levels. While the current environment remains challenging, the Corporation is in a strong position to continue to serve its customer base and focus on key opportunities.
The unaudited interim consolidated financial statements include the accounts of Firan Technology Group Corporation (the “Corporation”) and its 100% owned subsidiaries, FTG Circuits Inc. (“FTG Circuits – Chatsworth”) and Firan Technology Group (USA) Corporation.
4. SIGNIFICANT ACCOUNTING POLICIES
Measurement uncertainty
The preparation of the Corporation’s financial statements, in accordance with Canadian generally accepted accounting principles, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Due to the inherent uncertainty involved in making such estimates, actual results reported in future periods could differ from those estimates. Estimates include provisions for accounts receivable, inventory obsolescence, warranty, useful lives of capital assets in determining amortization and valuation of investment tax credits, future income tax assets, intangibles and goodwill.
Derivative financial instruments
The Corporation has elected to apply hedge accounting for certain forward foreign exchange contracts used to manage foreign currency exposure on anticipated sales and has designated these as cash flow hedges. Changes in the fair value of these derivatives are recorded as prepaid assets when they are in an asset position or in accounts payable and accrued liabilities when in a liability position. Gains or losses arising from hedging items are reported in the same caption on the consolidated statements of operations as those of the hedged items.
The effective portions of the change in fair value of the derivative are initially recorded in other comprehensive income on the balance sheets and are reclassified to the consolidated statements of loss when the hedged item is realized. Hedge accounting is discontinued prospectively when it is determined that the derivative is not effective as a hedge or the derivative is terminated or sold, or upon sale or early termination of the hedged item.
5. INVENTORIES
The Corporation’s inventories are valued at the lower of cost and net realizable value. Cost is determined on the first-in, first-out basis. Direct labour and an allocation of fixed and variable overheads are included in the determination of work – in – process and finished goods amounts. Net realizable value represents the estimated selling price for inventories less costs necessary to make the sale.
The adoption of CICA 3031 constitutes a change in accounting policy from valuing inventory at the lower of cost and market to the lower of cost and net realizable value, as defined under the new standard. The Corporation’s valuation of inventory for November 30, 2008 is consistent with CICA 3031 and no retroactive restatement is required. The book value of inventories is as follows:
February 27, 2009 November 30, 2008
--------------------------------------------------------------------
Raw materials $ 3,296 $ 3,058
Work in process 3,687 3,306
Finished goods 2,796 2,786
--------------------------------------------------------------------
Net inventory 9,779 9,150
--------------------------------------------------------------------
--------------------------------------------------------------------
The cost of inventories recognized as an expense during the quarter ended
February 27, 2009 was $10,893 (February 29, 2008 - $10,701). Write downs
of inventories recognized in cost of sales were $83 (February 29, 2008 -
$25).
6. BANK INDEBTEDNESS AND LONG-TERM DEBT
Long - term debt consists of:
February November
27, 2009 30, 2008
-------- --------
5 year U.S. $6,000 term loan (of which U.S. $3,000
relates to the U.S. subsidiary), amortized over 7
years, repayable in equal monthly payments of U.S.
$72 plus interest at a fixed rate of 8.19%. Term loan
is secured by a first charge over all of the property
and assets of the Corporation and matures on July 14,
2011. Principal at February 27, 2009
U.S. $3,786 (November 30, 2008 - U.S. $4,000). $ 4,817 $ 4,948
5 year U.S. $2,500 capital expenditure facility (of
which $1,000 U.S. relates to the U.S. subsidiary),
amortized over 5 years, repayable in equal monthly
payments of U.S. $46 plus interest at U.S. prime
less (50) basis points, matures July 14, 2012.
Principal at February 27, 2009 U.S. $1,779 (November
30, 2008 - $1,917) 2,264 2,371
5 year U.S. $2,000 capital expenditure facility,
drawdown period expired December 31, 2008, repayable
in equal monthly payments of U.S. $8 plus interest at
U.S. prime less (50) basis points, matures December
31, 2013. Principal at February 27, 2009 U.S. $475
(November 30, 2008 - U.S. $500) 604 618
--------------------------------------------------------------------------
7,685 7,937
Less amounts due within one year 1,918 1,833
--------------------------------------------------------------------------
$ 5,767 $ 6,104
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Estimated principal repayments of long-term debt are as follows:
within 12 $ 1,918
13 to 24 months 1,918
25 to 36 months 3,372
37 to 48 months 382
49 to 60 months 95
--------
$ 7,685
--------
The Corporation has available a 3 year committed revolving credit facility of U.S. $6,000 subject to certain borrowing base requirements, maturing July 12, 2009. The revolving facilities are available by way of Prime Rate Loans, USBR Loans, BA Rate Loans and / or Libor Loans plus an applicable margin. Applicable margins are; Canadian Prime Rate loans plus nil (0) basis points, U.S. Prime Rate loans less (50) basis points, USBR Loans plus nil (0) basis points, BA Rate Loans plus two hundred (200) basis points and Libor Loans plus two hundred (200) basis points.
The U.S. subsidiary utilized U.S. $1,600 or Cdn $2,036 of the revolving facility at February 27, 2009 (2008 – U.S. $1,500 or Cdn. $1,855 at November 30, 2008). The Canadian operations utilized Cdn. $1,090 (2008 – Cdn. $1,122) during the same period. The revolving credit facility is secured by a first charge on all of the property and assets of the Corporation.
The Corporation was in compliance with all of its bank covenants as at February 27, 2009 and has sufficient liquidity and capital resources to meet its obligations for the foreseeable future. Specifically, management is confident that it has sufficient liquidity to fund current operations, meet its debt maturity and capital expenditure plans. The Corporation’s revolving facility expires July 12, 2009 and the Corporation has signed a 3 year renewal on March 16, 2009 to extend the revolving facility until March 31, 2012.
9. FINANCIAL INSTRUMENTS
(b) Foreign exchange loss
February 27, 2009 February 29, 2008
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Loss relating to financial assets
and liabilities, excluding forward
foreign exchange contracts $238 $ 49
Realized (gain) relating to forward
foreign exchange contracts (9) (6)
Unrealized loss relating to
forward foreign exchange contracts,
including changes in fair value of
open positions - 6
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Foreign exchange loss $229 $ 49
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Foreign currency risk arises because of fluctuations in exchange rates. The Corporation conducts a significant portion of its business activities in foreign currencies, primarily United States dollars. The assets, liabilities, revenue and expenses that are denominated in foreign currencies will be affected by changes in the exchange rate between the Canadian dollar and these foreign currencies. The Corporation’s long-term debt and most of the manufacturing materials are sourced in U.S. dollars, providing a natural economic hedge for a portion of the Corporation’s currency exposure.
(c) Derivative financial instruments and hedge accounting
Foreign exchange contracts are transacted with a financial institution to hedge foreign currency denominated anticipated sales of products. The following table summarizes the Corporation’s commitments to buy and sell foreign currency under foreign currency forward contracts, all of which have a maturity date of less than one year as at February 27, 2009.
-------------------------------------------------------------
Notional Weighted
Currency sold Currency bought amount sold average rate
-------------------------------------------------------------
U.S. dollars Canadian dollars $ 5,500 $ 1.2283
-------------------------------------------------------------
Management estimates that a loss of $242 would be realized if these contracts were terminated on February 27, 2009. All of these forward contracts are designated as cash flow hedges and have an unrealized loss of $235, all of which is recognized in the accumulated other comprehensive income (“AOCI”) section of shareholders equity. This unrealized loss in AOCI at February 27, 2009 is expected to be reclassified to earnings over the next twelve months when the sales are recorded.
All hedging relationships are formally documented, including the risk management objective and strategy. On a quarterly basis, an assessment will be made as to whether the designated derivative financial instruments have been and continue to be effective in offsetting changes in cash flows of the hedged transactions.
10. TRANSLATION OF FOREIGN CURRENCIES
FTG Circuits – Chatsworth and Firan Technology Group (USA) Corporation are considered self-sustaining subsidiaries. Accordingly, their assets (including goodwill) and liabilities are translated at exchange rates in effect at the balance sheet date. Sales and expenses are translated at average exchange rates prevailing during each month. The resulting current period translation gain of $173 (2008 loss of $60) is included in the accumulated other comprehensive income section of shareholders’ equity until there is a realized reduction in the net investment. Goodwill for FTG Circuits – Chatsworth is translated at exchange rates in effect at the balance sheet dates. The resulting gain of $101 on the translation of the goodwill is included in the AOCI section of shareholders equity.
11. SEGMENTED INFORMATION
The Corporation operates in two operating segments: FTG Circuits and FTG Aerospace. FTG Circuits is a leading manufacturer of high technology/high reliability printed circuit boards within the North American marketplace. FTG Aerospace is a manufacturer of illuminated cockpit panels, keyboards, bezels and sub assemblies for original equipment manufacturers of avionic products and airframe manufacturers. FTG Circuits and FTG Aerospace financial information is shown below:
Period ended February 27, 2009
--------------------------------------
Corporate
Circuits Aerospace Office Total
--------------------------------------
Sales $ 11,486 $ 3,208 $ - $ 14,694
Costs and SG&A expenses 9,666 2,476 511 12,653
Amortization of capital assets 553 91 - 644
Amortization of intangibles 12 - - 12
Research and development costs 1,023 101 - 1,124
Recovery of research and
development costs (50) - - (50)
Foreign exchange loss on conversion
of balance sheet assets and
liabilities 228 1 - 229
--------------------------------------
Earnings (loss) before interest and
taxes 54 539 (511) 82
Interest expense on long-term and
short term debt 147 - - 147
Provision of income taxes 2 - - 2
--------------------------------------
Net (loss) earnings $ (95) $ 539 $ (511) $ (67)
--------------------------------------
--------------------------------------
Segment assets $ 26,491 $ 9,542 $ - $36,033
Goodwill 4,684 - - 4,684
Intangibles 419 - - 419
Additions to capital assets 902 14 - 916
Period ended February 29, 2008
--------------------------------------
Corporate
Circuits Aerospace Office Total
--------------------------------------
Sales $ 10,569 $ 3,029 $ - $ 13,598
Costs and SG&A expenses 9,385 2,691 590 12,666
Amortization of capital assets 659 41 - 700
Research and development costs 788 75 - 863
Foreign exchange (gain) loss on
conversion of balance sheet assets
and liabilities 11 38 - 49
Restructuring costs 208 - - 208
--------------------------------------
(Loss) earnings before interest and
taxes (482) 184 (590) (888)
Interest expense on long-term and
short term debt 182 - - 182
Income taxes (recovery) (23) - - (23)
--------------------------------------
Net (loss) earnings $ (641) $ 184 $ (590) $(1,047)
--------------------------------------
--------------------------------------
Segment assets $ 25,653 $ 7,717 $ - $33,370
Goodwill and intangibles 4,142 - - 4,142
Additions to capital assets 101 - - 101
Geographic location
----------------------------------------------------------------------------
(in thousands of dollars) Period ended February 27, 2009
----------------------------------------------------------------------------
United
Canada States Asia Europe Other Total
----------------------------------------------------------------------------
Sales (by location of
customer) $2,507 $11,249 $751 $153 $34 $14,694
Goodwill
(by location of division) 1,039 3,645 - - - 4,684
Intangibles
(by location of division) 419 - - - - 419
Capital assets - other and
Filtran
(by location of division) 4,902 2,776 - - - 7,678
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----------------------------------------------------------------------------
Period ended February 29, 2008
----------------------------------------------------------------------------
United
Canada States Asia Europe Other Total
----------------------------------------------------------------------------
Sales (by location of
customer) $2,268 $10,408 $740 $182 $ - $13,598
Goodwill (by location of
division) 1,317 2,825 - - - 4,142
Intangibles (by location of
division) - - - - - -
Capital assets - other
(by location of division) 6,698 1,597 - - - 8,295
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