- Sales increased 14%
- Profits increased 10%
- Cash on hand $11.3
million
- No bank debt
TORONTO, July 27, 2011 /PRNewswire/ - Exco Technologies
Limited (TSX-XTC) today announced results for its third quarter
ended June 30, 2011.
|
Three Months ended
June 30 |
Nine Months ended
June 30 |
|
($000s,
except per share amounts) |
|
2011 |
2010 |
2011 |
2010 |
Sales |
48,784 |
42,681 |
147,261 |
119,583 |
Net income |
3,865 |
3,502 |
12,537 |
7,628 |
Basic earnings per share |
$0.10 |
$0.09 |
$0.31 |
$0.19 |
Diluted earnings per share |
$0.10 |
$0.09 |
$0.31 |
$0.19 |
Common shares
outstanding |
40,961,823 |
40,911,323 |
40,961,823 |
40,911,323 |
Consolidated sales for the third quarter ended
June 30, 2011 were $48.8 million - an increase of $6.1 million or over 14% compared to last year.
Year-to-date sales were $147.3
million - an increase of $27.7
million or over 23% compared to last year. Strong
underlying demand for our products continues to fuel sales growth
and mitigate the adverse impact of a climbing Canadian dollar.
The Casting and Extrusion segment reported sales
of $31.4 million - an increase of
$4.8 million or over 18% compared to
the same quarter last year. Year-to-date, the segment
reported sales of $92.6 million - an
increase of $17.7 million or almost
24%. Within this segment, sales in the large mould group
increased by 55% in the current quarter and 61% year-to-date
compared to last year reflecting strong shipments of powertrain
tooling moulds. Sales at Castool increased both in the current
quarter and year-to-date by 26% and 31% reflecting strong demand
for that division's die cast and extrusion consumable components
and the inclusion this year of Allper's sales. In the
extrusion tooling businesses, sales were down from last year by 7%
in the current quarter and 1% year-to-date. Die production volumes,
while growing, are impacted by soft economic conditions in
North America and currency
fluctuations, the latter of which reduced sales.
Sales in the Automotive Solutions segment in the
third quarter were $17.4 million - an
increase of $1.3 million or almost 8%
from the same quarter last year. Year-to-date, the segment reported
sales of $54.6 - an increase of
$10 million or over 22% compared to
last year. Sales volumes at Polytech and Polydesign have
improved significantly both in the current quarter (25% and 32%
respectively) and year-to-date (22% and 52% respectively). This
reflects the recovering of light vehicle production levels in both
North America and, to a lesser
extent, in Europe and in the case
of Polydesign the launch of significant new interior trim and
instrument panel programs. Sales at Neocon decreased in the
current quarter by 19% compared to last year as the impact of the
Tsunami was felt and the sales backlog last year which temporarily
increased sales was cleared. Year-to-date sales at this division
also decreased by 7% compared to last year for the same
reasons.
Consolidated net income for the third quarter
was $3.9 million or $0.10 per share compared to consolidated net
income of $3.5 million or
$0.09 per share in the same quarter
last year. Year-to-date, consolidated net income was $12.5 million or $0.31 per share compared to consolidated net
income of $7.6 million or
$0.19 per share last year.
Consolidated net income in the third quarter last year benefited
from an unusually low tax provision of 7.4% reflecting
non-recurring US federal tax recoveries for prior years. The
tax provision in the quarter this year at 28.7% is more reflective
of Exco's typical rate.
The improvement in the current year's earnings
was led by the Automotive Solutions segment with segment pretax
income in the third quarter of $2.7
million compared to segment pretax income of $1 million in the same quarter last year.
Year-to-date, the segment also reported higher pretax income of
$8.9 million compared to $3.3 million last year. The Casting and Extrusion
segment reported higher segment pretax income in the third quarter
of $3.7 million compared to segment
pretax income of $3.4 million in the
same quarter last year. Year-to-date, the segment also
reported higher pretax income of $11.7
million compared to $8.9
million last year.
Consolidated gross margin in the third quarter
remained relatively constant at 26.7% compared to 27.6% in the same
quarter last year. Year-to-date gross margin also remained
constant at 27.4% compared to 27.1% last year. The Company
continues to have a strong cash position at quarter end of
$11.3 million (which is expected to
increase by approximately $3 million
before fiscal year-end from the sale of the AluDie production
facility) and no bank debt despite having funded significantly
higher working capital necessary to support the strong sales growth
over the last several quarters.
The overall outlook for Exco over the next
several quarters has not materially changed from last
quarter. The two major trends of strong light vehicle
production volumes and steady introduction of new or refreshed
vehicles and powertrain systems by virtually all OEMs remain
intact. These trends continue to benefit our components
businesses, Castool and our large mould businesses. Our large
mould business in particular is experiencing strong demand from its
die cast customers who are both rolling out next generation
powertrain architecture and experiencing high production
requirements in the aftermath of the Tsunami disruption. With
mould demand in many cases recovering faster than capacity the
emphasis is increasingly on managing WIP inventory and meeting
tight delivery dates. The business impacts of the Tsunami are
largely over and any further production and supply disruptions in
the vehicle production chain are not expected to materially affect
Exco in the coming quarters.
Stubbornly high oil prices and the Canadian
dollar's new plateau beyond US dollar parity continue to keep
pressure on our raw material costs, in the former case, and
revenue, in the latter case. Exco earnings have adjusted to
this reality, although continuous efforts to mitigate the impact of
these factors will continue. Developing lower cost petroleum
based raw material, raising prices where necessary to recover
costs, moving production to low cost countries and generally
improving operating efficiencies in all of our production
facilities are but a few of the measures constantly under
consideration.
(For further information please refer to the
Company's Third Quarter Interim Financial Statements in the
Investor Relations section posted at www.excocorp.com.
Alternatively, please refer to www.sedar.com)
Exco Technologies Limited is a global
supplier of innovative technologies servicing the die-cast,
extrusion and automotive industries. Through our 10 strategic
locations, we employ 1,994 people and service a diverse and broad
customer base.
Management will hold a conference call to
discuss the third quarter results on Thursday July 28, 2011 at 10:00 am (Toronto Time). The local dial in
number for the call is (647) 427-7450 for local
(Toronto) calls or toll free
1-888-231-8191. 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=3595020
a few minutes before the event. Real Player is required
for access. For those unable to participate on
July 28, 2011, an archived version
will be available on 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