Mr. Grant Reeves reports

CIRCA REPORTS SALES AND OPERATING RESULTS FOR THE THIRD QUARTER ENDED SEPTEMBER 30, 2015 AND DECLARES A SPECIAL CASH DIVIDEND

Circa Enterprises Inc. has released its results of operations for the third quarter ended Sept. 30, 2015.

Summary of third quarter operating results:

• Third quarter 2015 consolidated sales of $6.9-million, representing a 1.5-per-cent decrease compared with third quarter 2014 sales of $7-million;
• Profit for the period from continuing operations for the third quarter of 2015 of $601,000, compared with profit from continuing operations of $394,000 for the third quarter of 2014;
• Earnings per share of six cents for the third quarter of 2015, compared with earnings per share of four cents in the third quarter of 2014;
• EBITDA (earnings before interest, taxes, depreciation and amortization) of $777,000 for the third quarter of 2015, compared with EBITDA of $551,000 for the third quarter of 2014 (see below for explanation of EBITDA);
• Adjusted EBITDA of $747,000 for the third quarter of 2015, compared with adjusted EBITDA of $614,000 for the third quarter of 2015 (see below for explanation of adjusted EBITDA);
• Working capital of $9.3-million, including $1.6-million in cash and no outstanding debt at Sept. 30, 2015.

Summary of year-to date operating results:

• Consolidated sales of $19.2-million for the nine months ended Sept. 30, 2015, compared with sales of $21.4-million for the nine months ended Sept. 30, 2014;
• Profit for the period from operations for the nine months ended Sept. 30, 2015, of $772,000, compared with profit for the period of $985,000 for the same period in 2014;
• EBITDA of $1.1-million for the nine-month period ended Sept. 30, 2015, compared with EBITDA of $1.5-million for the same period in 2014;
• Adjusted EBITDA of $1.5-million for the nine months ended Sept. 30, 2015, compared with adjusted EBITDA of $1.6-million for the nine months ended Sept. 30, 2014.

Special dividend:

• A special cash dividend of five cents per share was declared by the board of directors.

EBITDA is earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA is earnings before interest, taxes, depreciation and amortization and is adjusted for exchange differences on the translation of foreign currency before tax. EBITDA and adjusted EBITDA are non-IFRS (international financial reporting standards) financial measures and do not have any standardized meaning prescribed by IFRS and, therefore, may not be comparable with similar measures presented by other issuers. Management believes that EBITDA and adjusted EBITDA are useful supplemental measures that 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 determined in accordance with IFRS as an indicator of the company's financial performance.

Consolidated sales for the third quarter of 2015 were $6.9-million -- a 1.5-per-cent decrease over the same period in 2014. Although sales were lower, profit from continuing operations increased to $601,000 from $394,000 in the second quarter of 2014. The decrease in sales is from the metals segment, which saw a 3.6-per-cent decline in sales over the same period in 2014, due to a decline in custom metal fabrication activity. This was partially offset by increase in orders of the Hydel-branded products. Telecom division sales were lower, although the strong U.S. dollar boosted top-line sales to U.S. customers.

The improvement in the company's after-tax profit of $601,000 in the third quarter compared with after-tax profit of $394,000 in the third quarter of 2014 was due to exchange rate gains. The strong U.S. dollar positively affected the U.S.-dollar-denominated cash and accounts receivable at quarter-end and improved reported profitability. Total comprehensive income of $722,000 in the third quarter of 2015 increased by $205,000 from $517,000 in the third quarter of 2014. Other comprehensive income is attributable to currency exchange on the translation of the company's U.S. subsidiary.

Grant Reeves, Circa's president and chief executive officer, stated: "Circa's strong third quarter performance reflects volume growth from our Hydel brand and significant margin improvement from our telecom segment. Our U.S.-dollar-denominated telecom sales and earnings converted favourably compared to currency exchange rates a year ago; however, there was an offset in higher domestic cost of U.S.-dollar-denominated purchases of Hydel materials that had a negative impact on metal's margins. We are evaluating pricing and sourcing initiatives to address our domestic costs influenced by the current exchange rates and expect to restore margins by next year. The company has maintained a strong balance sheet with $9.3-million of working capital ($1.6-million cash and no debt) and generated adjusted EBITDA of $1.5-million through the first nine months. As a result of the solid results and favourable outlook, the board of directors declared a special dividend of five cents per share for holders of record on Dec. 15, 2015."

                                CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
                               (in thousands of dollars, unless otherwise noted)

                              Nine months ended    Nine months ended    Three months ended     Three months ended
                                 Sept. 30, 2015       Sept. 30, 2014        Sept. 30, 2015         Sept. 30, 2014

Sales                                 $  19,169            $  21,370             $   6,879              $   6,986
Cost of sales                           (14,685)             (16,558)               (4,984)                (5,381)
Gross profit                              4,484                4,812                 1,895                  1,605
Selling, general and
administrative expenses                  (3,530)              (3,451)               (1,175)                (1,113)
Operating profit                            954                1,361                   720                    492
Other income                                  2                    4                     2                      -
Finance costs                                (1)                  (2)                   (1)                    (1)
Profit before tax                           955                1,363                   721                    491
Income tax expense                         (183)                (378)                 (120)                   (97)
Profit for the period
from operations
attributable to
shareholders of the
company                                     772                  985                   601                    394
Other comprehensive income
Exchange differences on
translating foreign
operations, net of tax                      525                  148                   121                    123
Total comprehensive income
for the period attributable
to shareholders of the
company                                   1,297                1,133                   722                    517
Earnings per share (in $s)
Basic and diluted                          0.08                 0.10                  0.06                   0.04

Declaration of special dividend

The company's board of directors has declared a special cash dividend of five cents per share on the company's common shares, payable on Jan. 6, 2016, to shareholders of record at the close of business on Dec. 15, 2015. The dividend is deemed to be an eligible dividend for purposes of the Income Tax Act (Canada).

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 SEDAR.