TORONTO, Feb. 2 /PRNewswire-FirstCall/ - Exco Technologies
Limited (TSX-XTC) today announced results for its first quarter
ended December 31, 2010. In addition, the Company announced a
$0.025 dividend per share which will be paid on March 31, 2011 to
shareholders of record on March 15, 2011. The dividend is an
"eligible dividend" in accordance with the Income Tax Act of
Canada.
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3 Months ended |
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December 31 |
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($000s, except per
share amounts) |
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2010 |
2009 |
Sales
Income before income
taxes
Net income for the period
Basic and Diluted earnings per share
Common shares outstanding |
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$45,592
$4,446
$3,126
$0.08
40,912,823 |
$37,590
$3,046
$1,900
$0.05
40,904,323 |
Consolidated sales for the first quarter ended
December 31, 2010 increased by $8.0 million or 21% from last year
to $45.6 million continuing the upward sales trend experienced
throughout 2010. During the quarter, the Casting and
Extrusion segment reported sales of $27.8 million - an increase of
$3.8 million or 16% from the same quarter last year. Sales in
the Automotive Solutions segment in the quarter were $17.8 million
- an increase of $4.2 million or 31% from the same quarter last
year.
Consolidated net income for the first quarter
was $3.1 million or $0.08 per share compared to consolidated net
income of $1.9 million or $0.05 per share in the same quarter last
year. This improvement was led by the Automotive Solutions
segment which increased pretax income by 145% reporting segment
pretax income of $2.7 million in the first quarter compared to $1.1
million last year. The Casting and Extrusion segment improved
sales by 8% reporting higher pretax income in the first quarter of
$2.6 million compared to $2.4 million in the same quarter last
year. This improvement in this segment was impacted by
disruptions at the extrusion group, which was burdened with
production inefficiencies and other nonrecurring costs associated
with the consolidation of the AluDie facility in the amount of
approximately $0.02 per share.
Gross margin in the first quarter increased by
1.6 percentage points to 26.3% from 24.7% in the same quarter last
year despite operating inefficiencies from the consolidation of the
AluDie facility and negative margin at Edco and Excoeng Mexico.
Operating cash flow before net changes in non
cash working capital in the first quarter increased to $5.2 million
from $3.3 million in the same quarter last year. This increase is
primarily the result of improved earnings; however, the net change
in non cash working capital eroded cash in the quarter by $5.6
million mainly as a result of higher receivables and inventory
caused by generally increasing business activity throughout the
Company.
The Company's cash position at the first quarter
ended December 31, 2010 decreased by 38% to $12.5 million from
$20.2 million at the beginning of the quarter. This erosion stems
in large part from higher capital spending on machinery in the
extrusion group, the expenditure of approximately $1.5 million for
the purchase of Allper, the payment of 2010 income tax in the
amount of $3.2 million and payments for 2010 accrued incentive
plans.
Steady automotive production in North America
combined with a stream of new model introductions by virtually all
OEMs is making for a dynamic environment for component and tooling
suppliers such as Exco. Our established reputation in these
markets combined with our solid financial position should ensure
that we continue to prosper while providing our customers with high
quality, affordable and timely delivered products. Meanwhile,
our consolidation of the extrusion die business, once substantially
complete next quarter, should allow for better overhead absorption
and more rapid reaction to our customers' requirements. The
classification of the AluDie building and certain machinery and
equipment as held for sale will reduce depreciation costs in Q2 and
beyond and improve Exco's cash position at the time of
sale.
In Europe, Polydesign's focus on launching of
new programs for a differing array of products to diverse customers
has increased sales and returned the business to
profitability. This development combined with Castool's
recent acquisition of a distributor in Switzerland should see an
increase in Exco's overall European business activity and
profitability in the coming quarters.
Exco Technologies Limited is a global
supplier of innovative technologies servicing the die-cast,
extrusion and automotive industries. Through our 9 strategic
locations, we employ 2,013 people and service a diverse and broad
customer base.
The Annual Meeting of Shareholders of Exco
Technologies Limited will be held at 4:30 pm (EST) on February 2,
2011 and will be simultaneously webcast. Management will discuss
year-end and first quarter results. To access the live audio
webcast, please log on to www.excocorp.com or directly to
the webcast at
http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=3360500
a few minutes before the event. Microsoft Media Player is
required for access. For those unable to participate on February 2,
2011, an archived version will be available from the Exco
website.
This news release contains forward-looking information and
forward-looking statements within the meaning of applicable
securities laws. We use words such as "anticipate", "plan", "may",
"will", "should", "expect", "believe", "estimate" and similar
expressions to identify forward-looking information and statements
especially with respect to consolidated and operational sales
levels and earnings and the future cash flow of the Company.
Such forward-looking information and statements are based on
assumptions and analyses made by us in light of our experience and
our perception of historical trends, current conditions and
expected future developments, as well as other factors we believe
to be relevant and appropriate in the circumstances. Readers are
cautioned not to place undue reliance on forward-looking
information and statements, as there can be no assurance that the
assumptions, plans, intentions or expectations upon which such
statements are based will occur. Forward-looking information
and statements are subject to known and unknown risks,
uncertainties, assumptions and other factors which may cause actual
results, performance or achievements to be materially different
from any future results, performance or achievements expressed,
implied or anticipated by such information and statements.
These risks, uncertainties and assumptions are described in the
Company's Management's Discussion and Analysis included in our 2010
Annual Report, in our 2010 Annual Information Form and, from time
to time, in other reports and filings made by the Company with
securities regulatory authorities.
While the Company believes that the
expectations expressed by such forward-looking information and
statements are reasonable, there can be no assurance that such
expectations and assumptions will prove to be correct. In
evaluating forward-looking information and statements, readers
should carefully consider the various factors which could cause
actual results or events to differ materially from those indicated
in the forward-looking information and statements. Readers are
cautioned that the foregoing list of important factors is not
exhaustive. Furthermore, the Company disclaims any
obligations to update publicly or otherwise revise any such factors
or any of the forward-looking information or statements contained
herein to reflect subsequent information, events or developments,
changes in risk factors or otherwise.
SOURCE Exco Technologies Limited
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