Exco Technologies Limited - First Quarter ended December 31, 2010 Results and Quarterly Dividend Declared
February 02 2011 - 4:45PM
PR Newswire (Canada)
TORONTO, Feb. 2 /CNW/ -- TORONTO, Feb. 2 /CNW/ - 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. 3 Months ended December 31 ($000s, except per share
amounts) 2010 2009 Sales $45,592 $37,590 Income before income
$4,446 $3,046 taxes $3,126 $1,900 Net income for the period $0.08
$0.05 Basic and Diluted earnings per share 40,912,823 40,904,323
Common shares outstanding 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. To view this news release in
HTML formatting, please use the following URL:
http://www.newswire.ca/en/releases/archive/February2011/02/c7364.html
p/p table valign="top" border="0"trtd
nowrap="nowrap"bSource/bb: /bbr/ bContac/bbt: /bbr/
bTelephone:/bbr/ bWebs/bbite: /b/td td
nowrap="nowrap" /td td nowrap="nowrap" /td tdExco
Technologies Limited (TSX-XTC)br/ Paul Riganelli, Vice-President,
Finance and Chief Financial Officerbr/ (905) 477-3065 Ext. 7228br/
a
href="http://www.excocorp.com"http://www.excocorp.com/a/td/tr/table
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