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Calgary, Alberta–(Newsfile Corp. – May 5, 2022) – Circa Enterprises Inc. (TSXV: CTO) (the “Company” or “Circa”), a manufacturer of equipment for the telecommunication, electrical utility, and construction industries, reports results of operations for the quarter ended March 31, 2022.

Summary of first quarter operating results:

  • Q1 2022 sales of $9.4 million, an increase of $1.3 million or 15.9% from Q1 2021 sales of $8.1 million
  • Net income and comprehensive income of $145,000 for Q1 2022, being $0.01 per share compared to net income and comprehensive income of $163,000 for Q1 2021, or $0.02 per share
  • Q1 2022 EBITDA of $906,000, an increase of $77,000 compared to Q1 2021 EBITDA of $829,000 (see below for explanation and calculation of EBITDA)
  • Q1 2022 EBITDAaL of $568,000, a decrease of $23,000 compared to EBITDAaL of $591,000 for Q1 2021 (see below for explanation and calculation of EBITDAaL)
  • Working capital of $7.8 million
  • Dividend of $0.03 per share paid in the quarter

EBITDA is earnings before interest, taxes, depreciation and amortization. EBITDAaL is earnings before interest, taxes, depreciation and amortization, adjusted for cash lease payments and therefore comparative EBITDA prior to the adoption of IFRS 16. EBITDA and EBITDAaL are a non-IFRS financial measures and do 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 and EBITDAaL are useful supplemental measures, 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 and EBITDAaL 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 and EBITDAaL are calculated by the Company as follows:

Three months
31 Mar 2022

Three months
31 Mar 2021
Profit for the period from operations
145 163
Income taxes
98 89
70 52
Depreciation and amortization
Cash lease payments


Sales for the first quarter of 2022 were $9.4 million — a $1.3 million or 15.9% increase compared to the same three month period in 2021 on higher sales activity in the Metals segment and the addition of Westronic sales, which is included in the Telecom segment.

Metals segment sales increased $1.0 million to $6.7 million in Q1 2022, compared to $5.7 million in Q1 2021 on strong demand for Hydel metering products across Canada as well as higher custom metal sales. Sales in the Telecom segment were up from $2.5 million in Q2 2021 to $2.7 million in Q1 2022. This increase was led by the addition of the Westronic line, which was acquired in Q2 2021.

Circa reported higher selling, general and administrative expenses of $2.6 million in Q1 2022 compared to $2.1 million Q1 2021. This increase was primarily due to the acquisition of Westronic as noted above. The Company also recorded higher sales commissions in the Metals segment and higher non-cash amortization related to the intangible assets from the Westronic acquisition.

The Company posted net income and comprehensive income of $145,000 in the first quarter of 2022 compared to $163,000 in the same quarter of 2021. This decline in earnings is a result of higher selling, general and administrative expenses, interest and taxes, which was partially offset by strong sales and gross profit.

Cory Tamagi, Circa’s President and Chief Executive Officer, stated:

“In the first quarter of 2022, Circa posted net income of $145,000, or $0.01 per share, on sales of $9.4 million. Sales were higher compared to Q1 2021 in both segments compared to the prior year. The increase was mainly due to continued strong sales of Hydel metering products in the Metals segment. The Telecom line saw a year over year improvement despite the lack of larger project sales in the quarter, largely due to the acquisition of Westronic in May 2021.

“Sales in the Metals segment are expected to remain strong throughout the year as demand for Hydel products remains high. Management is optimistic that the resumption of sales-related travel and investment in new products will generate sales activity in the Telecom segment. The supply chain challenges that impacted sales and operations in 2021 have continued as the political landscape continues to change with severe lockdowns in China, new waves of COVID infections and the war in Ukraine. As a result, the Company continues to manage sales and production by extending lead times and holding higher inventory.

“Management is hopeful the geopolitical situation will improve and supply chain disruptions will ease throughout 2022. Until then, Circa will continue to actively monitor and manage these operational challenges.”


Condensed Consolidated Interim Statements of Income and Comprehensive Income


$000’s Three months ended March 31, 2022 Three months ended March 31, 2021
Sales 9,439 8,146
Freight 202 186
Net sales 9,237 7,960
Cost of sales 6,299 5,514
Gross profit 2,938 2,446
Selling, general and administrative expenses 2,625 2,142
Operating profit 313 304
Interest expense 70 52
Profit before tax 243 252
Income tax expense 98 89
Net income and comprehensive income 145 163
Earnings per share (in $’s)    
Basic 0.01 0.02
Diluted 0.01 0.02



The Company announced today that its Board of Directors has declared a cash dividend of $0.03 per share on its common shares, payable July 13, 2022 to shareholders of record at the close of business June 29, 2022. The Dividend is deemed to be an eligible dividend for purposes of the Income Tax Act (Canada).

Circa Enterprises Inc. is a public company with operations in Alberta and Ontario. 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


Mr. Cory Tamagi
President and CEO
Circa Enterprises Inc.
(403) 258-2011

Mrs. Angela Hulshof
VP Finance and CFO
Circa Enterprises Inc.
(403) 258-2011

E-Mail: [email protected]

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