CALGARY, March 20, 2013 /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 fourth quarter and year ended
December 31, 2012 and the issuance of common shares under the Share
Acquisition Plan.

OPERATING RESULTS

Summary of fourth quarter operating results:

• Consolidated sales of $5.4 million in Q4 2012, representing a 1.8%
  decrease compared to Q4 2011 sales of $5.5 million
• Profit from operations for the fourth quarter of 2012 of $174,000
  compared to loss from operations of $55,000 for Q4 2011
• EBITDA and Adjusted EBITDA of $100,000 for the fourth quarter of 2012
  compared to $92,000 for Q4 2011 (see below for explanation and
  calculation of EBITDA and Adjusted EBITDA)
• The Company declared and paid a cash dividend of $0.5 million or $0.05
  per share

Summary of fiscal year operating results:

• Consolidated sales of $22.6 million, consistent with 2011 sales of $22.6
  million
• Profit from operations for the year of $0.6 million or $0.06 per share
  in 2012 as compared to loss from operations of $0.1 million or ($0.01)
  per share for the 2011 fiscal year
• EBITDA of $903,000 in 2012, compared to $360,000 million for the 2011
  fiscal year
• Adjusted EBITDA of $956,000 for the year compared to $507,000 for the
  2011 fiscal year
• Working capital of $6.1 million and bank debt of $0.3 million at
  December 31, 2012

EBITDA is earnings before interest, taxes, depreciation and
amortization. Adjusted EBITDA is earnings before interest, taxes,
depreciation and amortization and is adjusted for other non-recurring
items and non-cash items. EBITDA and Adjusted EBITDA 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 Adjusted EBITDA are useful
supplemental measures, which provide 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 Adjusted EBITDA should not be
construed as an alternative to comprehensive income (loss) determined
in accordance with IFRS as an indicator of the Company’s financial
performance. EBITDA and Adjusted EBITDA are calculated by the Company
as follows:

	Year ended 31 Dec 2012	Year ended 31 Dec 2011	Three months 31 Dec 2012	Three months 31 Dec 2011
	$000’s	$000’s	$000’s	$000’s
Profit (loss) for the period from operations	553	(78)	174	(55)
Income taxes	82	44	(135)	51
Interest	15	38	1	11
Depreciation and amortization	253	356	60	85
EBITDA	903	360	100	92
Non-recurring severance charges	53	147	–	–
Adjusted EBITDA	956	507	100	92

Consolidated sales for the fourth quarter of 2012 were $5.4 million — a
$57,000 or 1.8% decrease over the same period in 2011. The decrease
resulted from lower sales in the telecom segment as the Company saw
weaker demand from its sales of surge protection equipment. For the
year ended December 31, 2012, consolidated sales of $22.6 million were
recorded, virtually unchanged from the 2011 sales when the Company also
recorded consolidated sales of $22.6 million.

Despite consistent sales, the Company’s earnings increased substantially
in the quarter and when compared to the prior year. The Company posted
a profit of $174,000 for the quarter and $0.6 million for the year
compared to loss of $55,000 and $78,000, respectively. As noted in the
chart above, the Company was able to generate positive EBITDA of $0.9
million and Adjusted EBITDA of $1.0 million for the year ended December
31, 2012.

Ivan Smith, Circa’s President and Chief Executive officer, stated:

“The 2012 financial results posted by the Company were an improvement
over the 2011 results. Sales remained consistent over the prior year
despite the loss of some of the larger, project based revenue as the
Company was able replace this business by increasing sales to existing
customers and broadening the Company’s geographical sales in certain
markets.

Circa generated higher margins on these sales through improved labour
productivity in its operations. This had the effect of improving gross
profits which flowed through to the bottom line and, ultimately, to the
shareholders through a special dividend in the fourth quarter of 2012.

The focus for 2013 will be to continue to grow sales through our
distribution networks and internal sales group. In addition, the
Company will seek opportunities to expand its product offering and
customer base in 2013.

Circa has a strong balance sheet and solid working capital. The
Company’s business segments are well positioned to benefit from an
increase in economic activity and in a solid financial position to
expand its business going forward.”

CIRCA ENTERPRISES INC.
Consolidated Statements of Comprehensive Income

For the years ended December 31

		2012	2011
		$000’s	$000’s
Revenue		22,636	22,643
Cost of sales		(17,529)	(18,111)
Gross profit		5,107	4,532
Selling, general and administrative expenses		(4,462)	(4,527)
Operating profit		645	5
Gain (loss) on sale of assets		5	(1)
Finance costs		(15)	(38)
Profit (loss) before tax		635	(34)
Income tax expense		(82)	(44)
Profit (loss) for the year from operations attributable to shareholders of the Company		553	(78)
Other comprehensive income (loss):
Exchange differences on translating foreign operations, net of tax		(30)	8
Total comprehensive income (loss) for the year attributable to shareholders of the Company		523	(70)
(Loss) earnings per share (in $’s)
Basic and diluted		0.06	(0.01)

COMMON SHARES ISSUED UNDER ACQUISITION PLAN

On March 20, 2013 the Company issued an aggregate of 12,500 common
shares to a director pursuant to the Company’s Share Acquisition Plan
at a deemed price of $0.40 per share in lieu of the cash annual
retainer otherwise payable to the director.

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 annual 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.