Stock Profile: Spar Aerospace Symbol: SPZ (TSE)

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Stats as of 4/12/01

• H/L Ratio: 1.95 • RS: 94.8 • Shares: 14,328,796 • P/E: 11.61 • Price: $12.65

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Spar Aerospace began as the Special Products and Applied Research division of the de Havilland Canada Aircraft Company, hence its name. While still part of de Havilland, SPAR was heavily involved in the research and development of the famed Avro Arrow fighter jet, a project cancelled by the Diefenbaker government in 1959, something aviation buffs have still not forgiven the Tories for. The jet was widely reputed to be ahead of its time and would have put Canada in the forefront of aviation development.

In 1967, Spar was formed after a management buyout and taken public in 1968. The company went on to become a leader in the communications satellite business and became widely known for its development of the Canadarm, the robotic arm still used on the Space Shuttle.

Increasingly tough competition in the aerospace business resulted in the company restructuring in 1997, getting out of the space and communications industry completely, and refocusing on aviation services. It acquired Godfrey Aerospace in 1996. Two years later Spar acquired CAE Aviation while CAE refocused on flight simulators and training. The move has benefitted both companies.

Spar operates one of only twelve Lockheed Martin Approved Service Centers in the world. A highly successful program is its Avionics Update Project. Besides serving the Canadian military, the company is bidding on foreign contracts around the world.

Other ongoing projects include component maintenance for the Sikorsky Sea King helicopter and a 20% interest in IAMCO, a joint venture that provides turnkey maintenance for NATO's fleet of AWACS reconnaissance aircraft.

Besides its military contracts, the company also services the commercial airline business with maintenance contracts for Alaska Air and Westjet.

One analyst has captured Spar's transformation aptly - "from glamour and no earnings, to earnings and no glamour". The company is currently embarked on a normal course issuer bid to buy back 5% of its outstanding shares by January 2002.

President and CEO Anthony Caputo was named as one of the Top 40 under 40 in 1997 (top business leaders under 40 years old.). He was interviewed on Canada's Business Report in February. Click here to listen!

Quarterly Earnings per Share

Annual Earnings per Share

Note: The company actually had a profit of $3.27 for 1999, but most of it was a one-time return resulting from divestiture of assets.